a.	Presentation by Gene Pease on behalf of the Library Foundation.

Gene Pease, speaking on behalf of the Library Foundation, presented $50,000 to the Town Library to purchase approximately 2,000 books and other materials.  He highlighted some of the Foundation’s recent activities, including a "9,300 Books Campaign," which moved the Foundation into thinking more aggressively about future library needs.  Mr. Pease discussed the Foundation’s five-year fund-raising campaign, and its goal of raising $2.5 million by 2011, when the Town Library expansion is scheduled to be completed and will need an additional 68,000 books.  When the campaign was launched, the Foundation raised almost $70,000 and had another $30,000 of in-kind donations, Mr. Pease said. He told the Council that the campaign was off to a great start.  Mr. Pease described several fund-raising promotions, including a photo shoot featuring North Carolina coaches with their favorite books.  Mr. Pease presented a $50,000 check to Mayor Foy on behalf of the Library Foundation. 

Council Member Thorpe arrived at 7:10 p.m.

Mayor Foy thanked the Foundation.

a.	Public Forum: Odor Elimination at Orange Water and Sewer Authority Mason Farm Treatment Facility (R-1)

Mac Clarke, OWASA chair, introduced Executive Director Ed Kerwin to give a powerpoint presentation regarding the Mason Farm Wastewater Treatment Plant.  Mr. Kerwin outlined  OWASA’s goals: to improve the quality of treated water that leaves the plant and goes into Morgan Creek; to address odor issues at the plant; and to improve the plant’s reliability during bad weather events.  He reviewed the plant’s history, problems and improvements since 2004. 

Mr. Kerwin said OWASA was scheduled to complete improvements by the summer of 2007. He listed several key odor elimination activities, and said that OWASA had shared this information at a well-attended, community meeting in September 2006.  Mr. Kerwin told Council members that OWASA had presented the same information to its own board of directors in November 2006.  He said the board had authorized OWASA to proceed with additional odor elimination improvements at the plant.  Mr. Kerwin described those improvements, noting that the total investment was $6 million.   

Gary Richmond, speaking for himself and his neighbors, said that OWASA deserved much credit for its effort and investment and good communication with the neighborhood.  However, odor from the plant continues to enter his neighborhood, he said.  Mr. Richmond gave a powerpoint presentation reviewing what the neighborhood had gone through with OWASA over the past 33 months regarding this issue.  He said there had been meeting after meeting at which they had made no progress. 

Mr. Richmond noted that OWASA had recently improved its odor detection techniques.  He recommended getting rid of the "sniff test" and the "odor monitoring compliance program," and measuring odor by a different means.  Mr. Richmond said that any definition of odor elimination should be based on real experiences of best in class wastewater treatment plants that have eliminated off-site odor.  He asked to see some real time-lines, and pointed out that this might require having the Council find a way to enforce those time-lines.     

Barnes Bierch, who grew up near the plant and whose mother still lives there, noted the difference between "involvement" and "commitment."  He said that OWASA needed to fully commit to plugging all of the odor sources that had been identified.

Kay Johnson, speaking as a resident of the Highland Woods neighborhood, thanked OWASA for all it had done toward improving the odor problem.  She told the Council that OWASA had placed a monitor in her backyard and had determined that odor had not existed since they placed it there.  However, she said, members of her family had recorded an "odor event" on November 1st.  There really does need to be a better definition if OWASA is defining it as a non-event and a human being is defining it otherwise, Ms. Johnson said.

Mayor pro tem Bill Strom MOVED, SECONDED BY Council Member Cam Hill, TO Recess the public hearing.  THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

Mayor Foy explained that the Council had a resolution before it that would direct OWASA to continue working toward the goal that is required under the Special Use Permit.  He remarked that the Town had an excellent working relationship with OWASA but needed to take action to make sure that the SUP conditions were being followed.  Mayor Foy read the resolution and suggested that OWASA return on the second Council meeting in January to explain how it was proceeding to comply with the resolution.

MAYOR PRO TEM STROM MOVED, SECONDED BY COUNCIL MEMBER WARD, TO ADOPT R-1 AS AMENDED. Council Member Ward noted that the problem would not be solved by the second week in January.  He suggested adding a further "be it resolved," which would ask that another public forum on odor be held at this time next year.  Council Member Ward said he hoped next year’s meeting would be short and that everything would have been resolved by then.  However, the track record did not make him feel optimistic, he said. 

Mayor Foy said that was the reason he wanted a meeting in January, to learn what OWASA was doing to comply with its SUP.  He noted that the law dictates that everyone who receives a SUP must comply with it.  Mayor Foy said the Town could not allow OWASA not to comply with the law.  OWASA will come back in January and tell the Council how it plans to comply with the terms of the SUP, he said.  Mayor Foy added that he did not want to hear that it would take another year, and said he wanted to know what OWASA was doing to comply with the permit that they received three years ago.

Council Member Ward pointed out that through his association with the Botanical Garden, which is a neighbor to OWASA, he had been at many neighborhood meetings.  He described it as "extremely frustrating" to go for more than a year and still not have a clear definition of odor.  Mayor Foy replied that there was no reason why the Town could not have a definition at the second meeting in January.  "I would expect that at a minimum," he said. 

Council Member Easthom suggested calibrating the definition of odor with the device that Ms. Johnson has in her backyard.

THE COUNCIL VOTED UNANIMOUSLY IN FAVOR OF THE RESOLUTION (9-0).

A RESOLUTION DIRECTING ORANGE WATER AND SEWER AUTHORITY TO CONTINUE WORKING TOWARD THE STATED GOAL OF ELIMINATING OFF-SITE ODORS FROM THE MASON FARM WASTEWATER TREATMENT FACILITY (2006-12-04/R-1)

Council Member Thorpe asked Mr. Kerwin if OWASA had done anything to honor Milton Heath, who was retiring from the OWASA board.  Mr. Kerwin replied that Dr. Heath would receive a resolution of appreciation and would represent OWASA in the holiday parade. 

b.	Public Hearing: Revision of Town’s Flood Damage Prevention Ordinance

Stormwater Management Engineer Sue Burke introduced the item.  She said the purpose of tonight’s meeting was to receive comments on proposed revisions to the Town’s Flood Damage Prevention Ordinance.  Ms. Burke explained that the Town had received its final floodplain maps and letter of final determination from FEMA in August 2006.  She said that had started a six-month compliance period during which the Town must update its ordinance and adopt the maps by reference in order to maintain its participation in the National Flood Insurance Program.  Ms. Burke requested that the Council receive comments and continue the public hearing to January 8, 2007.  

Council Member Harrison ascertained from Ms. Burke that the Town would be adopting the new maps as part of updating the ordinance and the flood insurance study, by reference. 

Mayor pro tem Bill Strom MOVED, SECONDED BY Council Member Jim Ward, TO Recess the public hearing until January 8, 2007.  THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

c.	Public Hearing: Proposed Installment Financing for Aquatics Center and Community Center (R-2a, b).

Ms. Johnson introduced the item and explained that the Council would need to approve two resolutions in order to go forward: one would establish the necessity of borrowing and would state that it would be of a reasonable cost to the Town;  the second would accept the proposal from Suntrust Bank as the lowest bid. 

Mayor Foy verified that the lowest bid included an interest rate of three and a half percent over a 10-year period. 

Mayor pro tem Bill Strom MOVED, SECONDED BY Council Member Jim Ward, TO Recess the public hearing.  THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

Council Member Jim Ward MOVED, SECONDED BY Mayor pro tem Bill Strom, TO Adopt R-2a and R-2b.  THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

A RESOLUTION AUTHORIZING THE FILING OF AN APPLICATION FOR APPROVAL OF A FINANCING AGREEMENT AUTHORIZED BY NORTH CAROLINA GENERAL STATUTE 160A-20 (2006-12-04/R-2a)

A RESOLUTION AUTHORIZING THE TOWN MANAGER TO EXECUTE A FINANCING CONTRACT FOR A PORTION OF MAJOR REPAIRS FOR THE COMMUNITY CENTER AND FOR A PORTION OF THE CONSTRUCTION COST OF THE AQUATICS (2006-12-04/R-2b)

a.	Petitions by citizens on items not on the agenda.

1.	Chapel Hill Downtown Partnership regarding the Three-Year Agreement.

Mayor pro tem Bill Strom MOVED, SECONDED BY Council Member Jim Ward, TO Receive and Refer the petition to the Town Manager.  THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

2.	The Cedars of Chapel Hill requesting Modification of a Special Use Permit.

Council Member Sally Greene MOVED, SECONDED BY Mayor pro tem Bill Strom, TO Receive and Refer the petition to the Town Manager.  THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

Mayor pro tem Strom requested agenda item #4h, Sage Road, be removed.  He said he would be happy to address it when the Council discusses  the Bible Church parking lot.  Mayor Foy agreed to move it to the Bible Church discussion.

Mayor pro tem Bill Strom MOVED, SECONDED BY Council Member Cam Hill, TO Adopt R-3 as amended to remove item #4h.  THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

A RESOLUTION ADOPTING VARIOUS RESOLUTIONS AND ORDINANCES (2006-12-04/R-3)

AN ORDINANCE GRANTING TO BELLSOUTH TELECOMMUNICATIONS, INC. THE RIGHT TO USE AND OCCUPY THE PUBLIC WAYS OF THE TOWN OF CHAPEL HILL, NORTH CAROLINA, FOR THE CONSTRUCTION, OPERATION AND MAINTENANCE OF A TELECOMMUNICATIONS SYSTEM (2006-12-04/O-1)

A RESOLUTION IDENTIFYING THE AREAS DESCRIBED WITHIN AS BEING UNDER CONSIDERATION FOR ANNEXATION (2006-12-04/R-4)

A RESOLUTION ADOPTING AN INFLATION ADJUSTMENT TO THE PUBLIC ACCESS FEE BILLED TO CABLE TELEVISION CUSTOMERS IN CHAPEL HILL (2006-12-04/R-5)

A RESOLUTION AUTHORIZING THE ACCEPTANCE OF THE ORANGE COUNTY GRANT, THE ORANGE-CHATHAM JUSTICE PARTNERSHIP GRANT AND THE TOWN OF CARRBORO GRANT (2006-12-04/R-6)

AN ORDINANCE TO AMEND “THE ORDINANCE CONCERNING APPROPRIATIONS AND THE RAISING OF REVENUE FOR THE FISCAL YEAR BEGINNING JULY 1, 2006” (2006-12-04/O-2)

A RESOLUTION AUTHORIZING THE FINANCE OFFICER TO ENTER INTO THE FINISTAR LOCAL GOVERNMENT INVESTMENT INSTRUMENT PROGRAM (2006-12-04/R-7)

A RESOLUTION REJECTING ALL BIDS FOR THE SOUTHERN COMMUNITY PARK PROJECT (2006-12-04/R-8)

AN ORDINANCE AMENDING CHAPTER 21 OF THE TOWN CODE OF ORDINANCES REGARDING NO PARKING AS TO PARTICULAR STREET (2006-12-04/O-3)

AN ORDINANCE ESTABLISHING A PROJECT BUDGET FOR A TRANSPORTATION GRANT (2006-12-04/O-4)

A RESOLUTION TO AUTHORIZE THE TRANSPORTATION ADVISORY COMMITTEE  TO REQUEST REALLOCATION OF FUNDING IN THE DRAFT 2007-2013 STATE TRANSPORTATION IMPROVEMENT PROGRAM (2006-12-04/R-10)

A RESOLUTION RECEIVING AND REFERRING THE DRAFT NC 86/MLK JR. BOULEVARD CORRIDOR/TOWN-WIDE PEDESTRIAN SAFETY EVALUATION DRAFT STUDY TO THE TOWN MANAGER AND ATTORNEY AND ADVISORY BOARDS FOR REVIEW AND SETTING A PUBLIC FORUM TO RECEIVE CITIZEN COMMENT (2006-12-04/R-10.1)

Jesse Gibson called the Council’s attention to a December 4th report from Police Chief Gregg Jarvies to the Town Manager regarding a petition to establish a Chapel Hill Youth Council.  He noted that the report mentioned performing a needs assessment and budget considerations, with a report in February.  Mr. Gibson said he had met with Karen Rose, who was handling this for the Police Department, and that NAACP President Fred Battle would meet with her on the following Wednesday.  He said he had talked with her about a job description for the coordinator.  He had also discussed a program description with her, and said he had shared information about similar programs in other North Carolina towns.  Mr. Gibson said that the NAACP would like these issues to be discussed at the second Council meeting in January, rather than in February.  They would come back to the Council with a final report in February, he said.

Mayor Foy agreed to put the matter on the Council’s agenda for the second meeting in January.  He asked the Manager to have staff cooperate in getting the information ready by then. 

Mayor pro tem Strom noted that the ArtsCenter was interested in expanding its youth programs.  He said that might be a good contributor to the mix of community agencies and youth programs.  "So, when you have these discussions, John Wilner is game," said Mayor pro tem Strom.

All other information reports were accepted by consensus of the Council.

Finance Director Kay Johnson introduced Wayne Martin, an audit manager with Dixon & Hughes.  Mr. Martin thanked the Council for allowing Dixon & Hughes to perform the 2005-2006 Town audit.  He said his firm had issued a clean, unqualified opinion and had not uncovered any reportable conditions or weaknesses in the Town’s internal controls.  Mr. Martin said total net assets had increased by approximately 25 percent from June 2005. 

The Town’s available fund balance had increased by about $2 million, or 21 percent, and that represents approximately 26 percent of budgetary basis general fund expenditures, Mr. Martin explained.  He noted that this was significantly higher than the eight percent minimum required by the Local Government Commission.  Mr. Martin pointed out that the Town’s total debt had decreased by about 3.4 percent from June 2005 and the Town had maintained a AAA and a AA+ credit rating through June 2006 from Moody’s and S & P, respectively, with S & P having upgraded its rating since then.  

Council Member Kleinschmidt clarified that the Town’s net assets were up by 25 percent.  Ms. Johnson verified that the new Town Operations Center made up a large portion of the increase. Mayor Foy noted that the Town Operations Center had not been counted at its full value because it had not been completed as of June 30, 2006. 

Mayor Foy remarked that Ms. Johnson and the Finance Department were doing an excellent job.

Council Member Greene said she did not think Merritt’s Pasture had ever not been mowed since the Town installed the new plan about the Rural Conservation District buffer there.  She said she had yet to see the plan even started. 

Mr.  Letteri said there would be good evidence of it after a full year of growth, and forward.  With regard to the condition of the pond, he noted a problem with hydrilla, explaining that the Town should either eradicate that or move it somewhere else.  Mr. Letteri suggested that Town staff work with the NC Cooperative Extension or the NC Water Resource Department regarding best practices for removal. 

Council Member Greene said there had been proposals and talk in the past about trying to clean up the pond.
 
Council Member Ward suggested looking beyond the agencies that Mr. Letteri had mentioned to determine best management practices.  He offered the services of the North Carolina Botanical Garden as well.  Mr. Letteri agreed, adding that Public Works would also get opinions from the Town’s Engineering Department.  

Town Manager Roger Stancil made a brief presentation in response to comments from a recent public forum.  He mentioned potential benefits of the project, economics of the Town’s proposed investment, proposed project design, and affordable housing.  Among the project’s potential benefits, Mr. Stancil listed residents living downtown, increased vitality, enhanced public safety, improved customer base, significant public space, and meeting objectives of the Town’s Comprehensive Plan.  He noted that the Town’s investment would be limited to $7.2 million for 161 public parking spaces. 

Mr. Stancil said there would be limited risk to the Town and pointed out that the Local Government Commission must approve the Town’s participation and/or borrowing.  He explained that the project, if approved, would go through the SUP process just like any other project.  Mr. Stancil said that the Town Council had compared public benefits to cost and had made this project its top goal. He mentioned possible consultants and noted the possibility of continuing the peer review process.  A February approval would lead to an estimated 10-12 months of project development in what would be an open process, Mr. Stancil said.

Ram Development Company President Casey Cummings reviewed the history of the project.  He quoted the Town’s number one goal, which was that the downtown area "remains the center of the community’s government, commercial, spiritual and cultural activities with appropriate public, office, commercial and residential development, thereby continuing its economic vitality."  Mr. Cummings said that the project would utilize available land, provide a diversity of densities, provide a safe and secure environment, develop a community gathering space, maintain and develop public open space, promote compatible residential uses, provide adequate and convenient off-street parking.

Mr. Cummings reviewed how Ram would approach fulfilling the Town’s goals.  They would create 37,000 square feet of public space, he said, noting that this would include 27,000 square feet for the public plaza.  Mr. Cummings said Ram was spending about $800,000 on public space construction.  He explained that they would provide 161 underground parking spaces, as well as residential and retail space.  Mr. Cummings said that the underground parking improvements would enhance the overall business climate downtown. 

Mr. Cummings noted the increase in public safety that comes from having full-time residents downtown.  He mentioned the plan’s sustainable, green building features, and said it would create a walkable environment and reduce auto dependence.  Mr. Cummings described the plan as a community-oriented urban design, and noted that Dean Malecha had endorsed it.

Mr. Cummings mentioned that Ram would contribute $600,000 for Art in Public Spaces and $200,000 toward Public Space Programming.  He noted the benefit of increased revenue to the Town and predicted that by year five of the project it would be in excess of $1 million.

Those are the benefits to the Town, Mr. Cummings said, noting that Ram would receive property rights in return via a ground lease to build retail and residential units and rights to occupy one underground parking level for its residents.

Mr. Cummings explained that the Town wanted to own 161 underground spaces, and would reimburse Ram for the cost of delivering those spaces.  There would be a maximum reimbursement of $5,000 per space, not to exceed $7,245,000, he said.  Mr. Cummings noted that the Town’s financial obligations were fixed, with no further obligations or risks.   

Mr. Cummings pointed out that Ram would provide a performance bond, which would pay for the cost to complete the project if for some reason Ram was not able to do so.  He said that Ram would be borrowing for this project, but that they had been in business since 1978 and had never defaulted on a loan.  Mr. Cummings said that Ram did not take commitments of this size and scale lightly. 

Ram Senior Vice President for Development John Florian spoke about the design concept.  He said that many things were consistent with original design concepts.  They would be adding 28,540 square feet of retail space, 137 condo units (including 21 affordable units), and more than 330 parking spaces, he said.  Mr. Florian gave a rundown of all the improvements on Lot 5.  He said that Dean Malecha had thought it was an appropriate, pedestrian-friendly design worthy of further development.  Dean Malecha thought the design was ready to move toward the next phase, Mr. Florian said.

Mr. Cummings discussed the next steps: Town Council approval; a signed Development Agreement; and submittal of SUP application in March 2007.

Mayor Foy said that the Town owed Dean Malecha a strong debt of gratitude for giving his time to assist with this project without compensation from Ram or the Town.

Philip Duchastel spoke in favor of the project’s goals, but objected to its specific implementation.  He read from page 43 of the Town’s Downtown Small Area Plan, which envisioned new developments of two to three stories that would be compatible with existing storefront development.  Mr. Duchastel suggested putting the brakes on because there were too many unattended issues, such as: periphery development, who the residents will be, parking, finances, scale, and the precedents that the project would set.  Mr. Duchastel suggested that Dean Malecha was not impartial, but after eight sessions had become part of the team.   He suggested that the Town Council had also become entangled in the project, and was sweeping problems under rug.  Mr. Duchastel said it was essential to put on the brakes and seek an impartial review.

Will Raymond gave a PowerPoint presentation and addressed the issue of cost.  The Town’s investment would be closer to $15 million than to $7.5 million, he said.  Mr. Raymond questioned whether the project’s benefits would be worth the risks.  He wondered who would purchase the expensive units.  Mr. Raymond  demonstrated the project’s scale, using aerial photographs.

Andrea Rohrbacher, representing the Downtown Partnership, said that in March 2006 the Partnership had outlined key elements of the project that would be beneficial to the future of the downtown.  Ms. Rohrbacher reiterated the Partnership’s support for the Lot 5 development and offered their assistance in bringing it to fruition.

Buz Lloyd, who lives two blocks from Lot 5, on Carr Street, proposed giving the project more thought before proceeding.  He said that many would like the opportunity to develop this land, which he values at $8,750,000.  Mr. Lloyd distributed a handout and explained how he had arrived at that figure.   He said the current proposal would be "a sweet deal" for the developer, but not for Chapel Hill.

Council Member Easthom said it was important to define a start and end date for the project, with fines for delays-- and perhaps even a loss of rights to the developer in some cases--if the project is delayed.  She asked for more detail about how much the performance bond would be delineated in the development agreement.  Council Member Easthom asked that the Town be clear about paying the $7.5 million once the project was complete.  She wondered how the cost of increased Town services would factor into the financial analysis.  Council Member Easthom emphasized that details of the agreement must be made available to the public (ideally on the Town website) no later than two weeks prior to the Council’s next business meeting. She asked that condo fees for affordable units be permanently reduced and defined in the development agreement.

Council Member Ward said he had been supportive of the plan a year ago but could not support the current resolution.  He trusted that it was not Ram’s intent, he said, but the current proposal felt like a "bait and switch."  Council Member Ward said the proposal did not resemble what Ram had brought before the Council one or two years ago, which he had seen as a generous approach.  He remarked that he could support the resolution and then make various demands on the Manager during contract negotiations.  But he no longer had faith in that process, he said, since there were so many pieces that had changed in favor of Ram Development.

Council Member Ward asked how Ram could justify the changes that had been made, even if there was a 30 percent increase in construction costs.  He commented that the Town’s investment requirement would not be going up by 30 percent.  Also, the fact that the Wallace Deck was not included with Lot 5 would make the Deck a less desirable project from a developer’s point of view, he said.  Council Member Ward commended the Town negotiating team and both Town managers for the process, which could not have been better, he said.  He noted that the Town had wanted LEED silver certification, but said that was not enough of an achievement for him at this point.  Council Member Ward said, in the last analysis, this property would not be owned by the Town as was outlined in the original plan. The Town had one shot at it, and this was just not it, he said.  

Council Member Kleinschmidt spoke in support of the resolution.  He agreed that many things had changed, and said he was disappointed, but stressed that he liked the vision for Lot 5 well enough to support the changes.  Council Member Kleinschmidt said the Town had previously considered being equity partners with Ram, but that this was no longer going to happen.  The increased cost would come from buying the parking deck, he pointed out.  Council Member Kleinschmidt noted that the Town would not assume any risk under the new proposal.  The Town would be getting a parking deck where it wants one, and that would be all the Town would pay for, he said. 

Council Member Kleinschmidt expressed confidence in Town Finance Director Kay Johnson’s calculations.  He said he was excited about the Rosemary Street renaissance and about having a new multi-use retail and residential facility that would include $600,000 worth of public art.  Council Member Kleinschmidt said he agreed with the points that Council Member Easthom had made and supported her direction to the Manager.  With regard to her suggestion about the affordable condo fees, however, he asked that those fees not be reduced to the degree that affordable unit residents become second class citizens because their amenities have been taken away.

Council Member Hill addressed a couple of citizens’ remarks.  He said he did not think the Town negotiating team or Dean Malecha had gone "over to the other side" during the negotiating process.  Council Member Hill said that such an accusation would taint anyone who ever negotiated anything.  As a member of the negotiating team, he said, he was more familiar with the issues than some others were.  Council Member Hill noted that it had been a long, tough process, and said that the deal had changed, but so had every deal he had ever been involved in.  He said that the last two years had been an extraordinary time in the construction industry in terms of price increases.  Council Member Hill said that comparing the proposal that Ram originally brought in with the one they were now offering was a problem of expectations.   The only relevant comparison would be the difference between the alternative that the Town now has before it and the Grubb proposal, which had been $18 million two years ago before costs increased, he said. 

Council Member Hill said that he too had been disappointed about the Wallace Deck, but he believes that the current project will open new opportunities to address the Deck as well as Lot 2.  Council Member Easthom’s questions were all good, he said, but noted that the negotiating team, as well as Attorney Glenn Hardymon and Consultant John Stainback, already had touched on nearly all of them.  As a lifelong resident of Chapel Hill, the project scares him because it will change the Town in a significant way and he will have to look at it everyday for the rest of his life, said Council Member Hill.  However, in a town that is growing and has a limited amount of space to grow in, the only real alternative is to grow upward, he said.  Council Member Hill explained that the Town was trying to set a precedent in the way this is done, since there would be many other opportunities for redevelopment downtown as well.

Council Member Greene expressed support for what Council Members Hill, Easthom and Kleinschmidt had said.  She noted that there had been alternatives other than working with Grubb Properties, such as doing nothing, or selling the land outright to a private developer.  Council Member Greene said that doing so would not have given the Town the public space, public art, affordable housing, and architectural review that it has with this deal.  She said she was sorry that the project would cost the Town more than they had originally thought, but added that she understood how construction costs had changed and was happy to support the project.

Council Member Easthom said she did not support having affordable parking at the Wallace Deck.  It should be located within a block of the site and in Ram’s or the Town’s lots, she said.  Council Member Easthom characterized having affordable parking located three blocks away from other housing as unfair.  She added that she was tired of changes and did not want to see any more.  Council Member Easthom asked that her remarks tonight be reflected in the Development Agreement and that the Town’s risk be minimized.

Council Member Ward acknowledged that he was not going "to win the day" on this issue.  He offered a friendly amendment to the resolution, saying that the Manager would require the building to be LEED silver certified, with a minimum of 20 percent energy efficiency on the building envelopes that they create relative to ASHRAE (American Society of Heating, Refrigeration and Air Conditioning Engineers).

Council Member Kleinschmidt, the seconder, said that he would not support that as a friendly amendment because he trusted the Town’s negotiating team to address this issue.  He would rather "encourage" than  "require," he said. 

Mayor pro tem Strom, the mover, said he too would accept an amendment encouraging LEED silver certification, but not requiring it.  The negotiating team had gone around on the issue several times, he said. 

Council Member Easthom asked how to integrate what had been discussed tonight with the resolution.  Mayor Foy suggested adding the following, after the approved MOU clause: "and based generally on the discussion by Council members at the meeting on December 4."  Mayor pro tem Strom and Council Member Kleinschmidt accepted that.  Mayor Foy said the resolution, as written with two modifications, was on the floor, and asked for a vote.  

Council Member Thorpe said he did not agree with the resolution, and Council Member Easthom asked Mayor Foy to clarify it.  Mayor Foy said the resolution was the written resolution that the Council had before it, amended to include the following:  1) encourage LEED silver certification and the energy efficiency goal; 2) Insert a clause in the last "be it resolved" that says "and based generally on the comments of Council members at the Council meeting of December 4, 2006."

Council Member Thorpe said he agreed with what had been said about insisting on firm starting and ending dates.  The Council was authorizing the Manager to move forward and he was ready to support that, he said. 

Council Member Harrison said he was comfortable with the resolution as amended, noting that the Town had put many years into this project and had had many opportunities to turn back.   He cautioned Ram that they should not expect to get the SUP they apply for, in Chapel Hill.  

Mayor pro tem Strom said he thought the Town was making an investment in something very important that was a bit of an intangible.  By moving forward on the project the Council would create a greater degree of certainty as to the direction that the downtown was headed, he pointed out.  Mayor pro tem Strom acknowledged that one building would not solve all of the challenges downtown.  But this is a fair and reasonable deal, which will contribute to a different environment downtown and will move the Town toward its vision for a more vibrant downtown, he said.  Mayor pro tem Strom said the development would act as a crossroads for the community and a destination for the region.

Mayor pro tem Bill Strom MOVED, SECONDED BY Council Member Mark Kleinschmidt, TO Adopt R-11 as amended to authorize the Mayor, Manager and Attorney to participate in the continuing conversations with Ram, as the contract is negotiated.  THE MOTION WAS ADOPTED by a vote of 8-1, with Mayor Kevin Foy, Mayor pro tem Bill Strom, Council Member Laurin Easthom, Council Member Sally Greene, Council Member Ed Harrison, Council Member Cam Hill, Council Member Mark Kleinschmidt, and Council Member Bill Thorpe voting aye and with Council Member Jim Ward voting nay.

A RESOLUTION AUTHORIZING PREPARATION OF A DEVELOPMENT AGREEMENT BASED ON REVISED PLANS BETWEEN THE TOWN OF CHAPEL HILL AND RAM DEVELOPMENT COMPANY (2006-12-04/R-11)

Mr. Cummings commented on the issues of LEED silver certification, 20 percent energy efficiency, and permanent reduction of condo dues for affordable housing residents.  If Ram had been asked, and if they could agree to those items, they would already have done so, he said.  Mr. Cummings told Council members that he did not want to spend time and money negotiating an agreement with the Council expecting that he had agreed, or could agree, to those requirements.  Mr. Cummings stated that he had negotiated in good faith with the Town’s attorney and consultants.  He stressed that Ram could not address those additional items in the context of this financial arrangement.

Engineer Services Manager Kumar Neppalli introduced the work group report.  He said his department had altered some of the recommendations and had arrived at an implementation plan.  Mr. Neppalli outlined that plan, explaining that some of the recommendations and  funding would have to be reviewed and approved by various parties.  He recommended that the Council forward the report to NC DOT and that they authorize the Mayor and Manager to meet with NC DOT and University officials to start discussing long-term recommendations.   

Mr. Neppalli pointed out that he had mistakenly not provided a response to the Old Mason Farm intersection recommendation in number three on page three of the memo.  He said the Department’s goal was to discuss that with NC DOT along with the other recommendations. 

UNC Police Chief Derek Poarch said that the intersection of Manning Drive and Fordham Boulevard was being monitored via remote control during basketball games.  He said they were now controlling it in the same way as football games, and would like to continue doing it in that manner.      

Loren Hintz suggested that the resolution include a tie-in with the University to help with improvements on Old Mason Farm Road.  He said the State Highway Patrol had helped him and his son cross the intersection during a football game, but that this does not happen during basketball games.  

Council Member Greene said that she too had heard that prior to this year there had been police standing at the intersection helping people cross during football games.  She said that this no longer happens, however.  If it did still happen, her neighbor would still be alive, Council Member Greene said.  She described providing police help as a small precaution that UNC could take until other improvements have been made.  She thought they would be endorsing a stipulation saying that at basketball games and other major events at the Smith Center there would be real people to help people cross the street, said Council Member Greene. 

Council Member Ward emphasized the need for a uniformed police officer to provide the safe passage of bicyclists and pedestrians during peak times when UNC activities were taking place, not restricted to athletic events.  He said that signalization could help with traffic flow but not with pedestrian and bike safety at intersections.  With regard to recommendation #3, Council Member Ward remarked that he did not understand the logic.  He listed several University-related functions that take advantage of the Old Mason Farm road intersection, noting that UNC’s Modification 3 would have an impact on traffic intensity as well.  Council Member Ward said that both Manning Drive and Old Mason Farm Road should be part of a stipulation for Modification 3 approval.  He asked Mr. Neppalli why bike centers had not been part of his recommendation. 

Council Member Kleinschmidt asked why bicycle loops were conditional.  Mr. Neppalli replied that they are not conditional when the Town owns them, but they had become conditional in this situation because the Town was asking UNC to implement them as part of the pedestrian signal upgrade.  The State does not have significant experience with bike loops and really does not want to have a green signal for one or two bicyclists on a side street, he said.  Mr. Neppalli explained that the Town must provide much evidence to the state regarding bicyclists in Town who will benefit from having bike loops.

Mr. Neppalli noted that bike loops had become popular only recently and there was not much national experience with them.  He pointed out that the state had allowed the Town to implement them at Country Club/South Roads.  Chapel Hill had requested several others, he said, but pointed out that it was an ongoing process and a tough task for Town staff to provide the hard evidence that the state requires.  Mr. Neppalli said there had recently been some changes with regard to working toward Town needs. He noted that the Town’s signal system was scheduled for upgrading.  It was one of his top priorities to include bicycle loops in that design, Mr. Neppalli said.

Council Member Harrison remarked that the larger issue for a cyclist crossing a road the size of Fordham Boulevard was to have a protected part of the green signal cycle. He said that left-turning cars were the most dangerous situation for cyclists.  Council Member Harrison said that having a protected part of the signal was more important than having bicycle loops.

Mayor Foy suggested adding a "Statement C" to R-12 forwarding the comments from tonight’s Council discussion to UNC.

Council Member Mark Kleinschmidt MOVED, SECONDED BY Council Member Cam Hill, TO Adopt R-12 as amended.  THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

A RESOLUTION FORWARDING THE FORDHAM BOULEVARD WORK GROUP REPORT AND RECOMMENDATIONS TO THE NORTH CAROLINA DEPARTMENT OF TRANSPORTATION AND THE UNIVERSITY OF NORTH CAROLINA FOR REVIEW AND CONSIDERATION OF POSSIBLE IMPLEMENTATION OPPORTUNITIES (2006-12-04/R-12)

David Bonk reviewed the Collector Street Plan’s history and explained that staff was returning with answers to Council questions regarding the need for better coordination between Chapel Hill and Durham over development proposals.  He noted that staff had provided a revised resolution, which incorporated a recommendation by Council Member Harrison.  Mr. Bonk said the Council had received a further petition request from Philip Post regarding additional modifications to the proposed plan.  He highlighted an attachment to the memo, noting that it included the final agreement between Durham and Chapel Hill for courtesy review. Mr. Bonk said that staff believed such an agreement would give hope to future coordination between the two towns over implementation of the collector street network.

Council Member Easthom asked to have Mr. Post’s point incorporated in the resolution in addition to having the courtesy review include neighborhoods.  Mr. Bonk replied that Durham was required to provide notice to property owners.  He said that Chapel Hill certainly could incorporate having information go to neighborhoods, particularly as it relates to the collector street network.

Council Member Easthom asked that the Council discuss whether or not Mr. Post’s additional bullet was agreeable to them.  Mayor pro tem Strom, acting as mayor, asked Mr. Bonk if he thought Mr. Posts suggestion could be implemented.  Mr. Bonk replied that the language and the additional map would be illustrative to Durham and the MPO in revising the Collector Street Plan. 

Phillip Post expressed appreciation to the Council and Manager for listening to and implementing his neighborhood’s concerns. 

William Dunn asked for "reasoned, principled action on the Collector Plan."  He said this would include recommitting the plan to the advisory committee.  Mr. Dunn said the Council did not have the facts before them.  It defied common sense to say that this scheme would improve things, he said.  Mr. Dunn described the Collector Street Plan as the "wrong road" and said it was just more of what had already caused problems.  This Collector Street Plan would help the very few at the expense of the very many, he said.

Council Member Easthom asked about the designation of Meadowmont Lane as an arterial.  She asked if the Town could re-designate it as a collector street, given what they have before them.

Mr. Bonk replied that topics that would affect Meadowmont Lane would be taken up as part of the Long Range Transportation Plan, rather than in the Collector Street Plan. Council Member Easthom ascertained that including it as a desire of the Town would highlight it as the MPO begins to think about the Long Range Plan. She asked that Meadowmont Lane be considered as a collector street.  

Mr. Bonk suggested that the Council add another bullet requesting that the MPO consider that change when the 2035 Plan is being considered. Council Member Ward asked how the recommendations would insure adequate traffic calming features and their funding. Mr. Bonk replied that the Town should go to the MPO upon approval of the Collector Street Plan and request that funding be set aside for specific improvements.  

Council Member Ed Harrison MOVED, SECONDED BY Council Member Mark Kleinschmidt, TO Adopt R-13 as amended to include bullets for Council Member Easthom’s recommendation and the map that Mr. Post had submitted. Mayor pro tem Strom suggested adding Council Member Ward’s discussion about getting funding for traffic calming as a bullet as well.  THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

A RESOLUTION PROVIDING THE DURHAM-CHAPEL HILL-CARRBORO TRANSPORTATION ADVISORY COMMITTEE WITH RECOMMENDATIONS ON THE DRAFT SOUTHWEST DURHAM-SOUTHEAST CHAPEL HILL COLLECTOR STREETS PLAN (2006-12-04/R-13)

Maps attached to (2006-12-04/R-13)

Gene Poveromo introduced agenda item #9, concerning improvements from the Fordham Boulevard Committee, into evidence for this UNC Development Plan modification application, which was continued from the November 13 public hearing.  Mr. Poveromo recommended approval of R-a, with stipulations.

Bruce Runberg outlined steps that UNC had taken to meet requirements. He expressed UNC’s objection to stipulation 8, regarding police traffic control at the intersection of Fordham Boulevard and Manning Drive before and after special events at the Smith Center.  Mr. Runberg said this was not an effective approach to traffic control in this location.  He pointed out that doing so would require a minimum of four police officers and would be a dangerous situation for those individuals.  Mr. Runberg said that UNC would like to discuss this further.  He concluded that UNC was in agreement with the Manager’s recommendation, with the exception of stipulation 8.

Tim Toben, a Chapel Hill resident who serves on the NC Legislative Commission on Global Climate Change as well as the Department of Environment and Natural Resources Climate Action Plan Advisory Group, spoke about why this area is of such interest to many environmental groups.  He warned about the perils of climate change and said that environmental groups were interested in a fundamental shift in the way buildings were being designed and placed.  Mr. Tobin said he had been encouraged by conversations with Mr. Runberg.  He asked that the Council and UNC look very seriously at energy modeling in all of their new buildings.

Lorin Hintz asked for more specific information and/or clarification of a number of items included in the resolution.  

Pete McDowell, speaking on behalf of NCWARN, said that he and several others had planned to ask for a postponement of this agenda item.  But they had been encouraged during meetings with UNC officials last week that UNC was committed to taking their concerns seriously, he said.  Mr. McDowell asked that the Council and UNC work together on a plan to reach CRed carbon emission goals goals.  He said it was time for the Town Council to develop environmental standards for energy use and consequent greenhouse gas emission of any substantial new development in Chapel Hill.  Mr. McDowell proposed a principle by which the Town and University should assess any major new development with respect to energy:  Would the energy use from the project, if implemented on a global scale, be adequate to meet the challenge of climate change?  

Joyce Brown said that her request for estimates on additional coal to be burned had not been addressed in either the Manager’s memo or UNC’s response.  She said this was a critical issue, not only for UNC’s proposal tonight, but for future expansions and for CRed. Ms. Brown outlined her environmental concerns and asked the Council to address the issue now.

Tom Hinkle suggested that the Council get legal advice about what the statutes really mean with regard to maintaining public health.  He said there was an issue of harmful emissions from the coal burning plant.  Mr. Hinkle proposed that new construction was the place to start implementing change.  If the Town is serious about carbon emissions reductions it has to get serious about building new buildings that are consuming less energy, he said.  Mr. Hinkle said this was a public health issue even though many do not want to look at public health and energy issues together.   

Allison Carpenter, representing SURGE, expressed support for previous speakers’ concerns about global climate change. She explained that students were concerned about the future and were actively involved in the fight against global warming. Ms. Carpenter said that SURGE was eager to work with the Town and UNC to develop sound transportation and energy policies, plans and infrastructure that would help prevent the destructive environmental and social impacts of global climate change.  She challenged the Council to make sustainable design a priority for every new development they review. 

Nancy Tripoli, from the Kings Mill/Morgan Creek neighborhood, said that police control of the Manning Drive intersection would work if one officer were to sit on the side and control the lights while another officer helped pedestrians cross the street in accordance with those lights.  She also noted that there was no process for citizens to easily report runoff that silts upstream as a result of construction.  One has to identify someone in Raleigh, and then it is difficult to get any follow up on the problem, Ms. Tripoli said.  She asked that a process be put in place for reporting erosion runoff and getting follow up information.

Council Member Hill said he thought a number of people had raised good points, particularly Mr. McDowell, who said it was time for the Council to develop environmental standards for any substantial development in Chapel Hill.  If this is something that the Town wants to do then there should be rules that support it, he said.  Council Member Hill asked for suggestions from the staff about what the Council could do with LUMO that would give them some regulatory power in this area.

Mayor Foy suggested asking the SEE (Sustainability, Energy & Environment) Committee to work with staff on all of the issues that had been raised this evening, especially the suggestion about collaborating with UNC on carbon reduction goals and getting the Town’s own efforts underway.  

COUNCIL MEMBER HILL MOVED THE ABOVE, AND COUNCIL MEMBER GREENE SECONDED.

Council Member Harrison wondered if OI-4 needed to be enhanced to address some of this.  Mayor Foy replied that this needs to happen in an orderly way and he noted that the process to do so means putting together a packet of proposals that would address various things, perhaps including ordinance changes and other ways that the Council would make efforts in its regulatory capacity to the extent that they can.  Mayor Foy and Mayor pro tem Strom said they did not recall the topic coming up when OI-4 was being discussed.

THE COUNCIL VOTED UNANIMOUSLY IN FAVOR OF THE MOTION (9-0).

Council Member Hill said that the Carolina Inn addition did not line up with UNC’s mission.  He said the Town had discussed fiscal equity over the years with UNC and had received verbal promises that UNC would move closer instead of further away.  Council Member Hill said he did not understand why an addition to the hotel on the campus is supported by UNC and is exempt from property taxes.  He noted that the Inn was in competition with other hotels in Town, and said he wanted more of an explanation from UNC than the one provided. Council Member Hill asked if this could be pulled out of the development plan until the Council receives answers to his questions.

Mayor Foy asked Ms. Culpepper if that could be done.  She recommended conferring with the Town Attorney and perhaps getting feedback from UNC.
  
Council Member Ward moved that the resolution be modified or clarified to explicitly include police personnel at the intersection to provide safe crossing assistance for bicyclists and pedestrians as described in stipulation 8 in terms of when that is important to have.  With regard to stipulation 9 on page 10, he asked to insert the words, "with bike loop sensors and" before "pedestrian countdown heads."  Council Member Ward also proposed creating a stipulation 9.5 that would be the same as stipulation 9 but with the title, "Fordham Boulevard and Old Mason Farm Road traffic signal upgrade."  It would be identical to the modified language in stipulation 9, but would stop at the second to last line, "countdown heads with crosswalks," and there would be a period there, he said, because there is no need for a flashing beacon as proposed for the Manning Drive lot.  Council Member Ward said there was a rational nexus for those improvements, since many UNC populations use both intersections. 

Mayor Foy asked Mr. Runberg to address the suggestions separately.  With regard to putting in bike loop sensors at Fordham & Manning, Mr. Runberg said "that’s fine."  With regard to the stipulation that the Council Member Ward had suggested, Mr. Runberg said, "that’s fine."  With regard to having a traffic control officer posted during peak times, Chief Poarch asked that the Town staff go with him to determine whether or not they can stop traffic in all four directions with the signalization and officer they have.  If staff determines that they cannot do this, he would be willing to add an officer who would help people cross the street, he said, as long as the officer would not be asked to direct traffic before and after events.  Council Member Ward agreed, and he and Chief Poarch discussed the need to educate the public about dashing across during green lights.    

Council Member Greene said that she would prefer to get a commitment now for two police officers because there is no substitute for having a human being to help people. She said she was not willing to vote for this without stipulation 8.

Chief Poarch said that Mr. Neppalli had just told him that the intersection could not be turned red in all directions.  He said he was willing to put another officer out there as long as that officer would not be asked to direct traffic at all times before and after events. Mayor Foy verified that Chief Porch would accept stipulation 8.

Council Member Easthom expressed support for comments by Ms. Brown, Mr. Hinkle and Mr. McDowell, and pointed out that the resolution included no stipulation regarding the environment.   

Mr. Poveromo said that the staff typically refers to the OI-4 section of the LUMO, which has standards focused on traffic, stormwater, noise and lighting.  He said it does not include specific guidelines for elements such as building, environment and carbon reduction.  

Council Member Easthom ascertained that this issue would be brought before the SEE Committee to work on. She added that she would not vote for this resolution without something specific with regard to making sure that the buildings are constructed in a highly efficient manner demonstrating the use of renewable energy.  They must also demonstrate  and pledge that emissions would be in line with the CRed project and some analysis of pre-imposed coal production levels, Council Member Easthom said.  

Council Member Ward noted that members of the Council had just voted in favor of Lot 5, which will have no energy savings.  He said the Town loses credibility when it tells UNC that it must do better than the Town is doing.  He said that the Town had lost that argument with Lot 5 and how it is designed.

Council Member Thorpe said he would vote against the resolution unless the Council could be assured that there would be two officers at the intersection. Council Member Easthom argued that the Council had not lost its credibility as Council Member Ward had just asserted.  The Council had authorized the Manager to pursue the development agreement to the point where it would come back to the Council, which would consider it again at that time, she said.  Council Member Easthom said that all Council members felt strongly about buildings using renewable energy and being LEED certified. She would not vote in favor of Lot 5 if it does include those things, she said.

Mr. Runberg commented that UNC already had started working with the Town relative to the CRed.  He noted that the SUP that had been approved for the modification to the Cogenerational Plant had stated that the capacity of the boilers would not be increased.  That is the case, Mr. Runberg said, but added that UNC does burn more coal on some days than on others. 

Mr. Runberg said that UNC would not go beyond the capacity of those boilers, and was fulfilling the obligations they had agreed to in the SUP.  He said that UNC was doing energy modeling on all of its projects.  It was also doing extra commissioning, he said, explaining that this was an effort to improve the efficiency of the buildings.  Mr. Runberg said that UNC was striving for a LEED silver level, and UNC officials believe they will get 20 percent savings above the current standards.  Mr. Runberg said there had been much fluidity over the past six months or so over criteria for designing facilities.  He pointed out that UNC had come before the Town under OI-4 and had met all four criteria.  The University was willing to go along with something that "encourages 20 percent" and a silver level, since it plans to do that anyway, he said.
  
Mayor Foy mentioned Council Member Hill’s objection to the Carolina Inn portion of the modification.  He asked Mr. Runberg if UNC would object if the Council decided to remove that item for discussion while approving the other items.  Mr. Runberg replied that it would be fair and appropriate to set that item aside for 60 to 90 days, but not to ask UNC to start all over again.

Mr. Karpinos recommended recessing the hearing to a date certain for that one item and then taking action on the rest, if that was what the Council wished to do.

Council Member Cam Hill MOVED, SECONDED BY Council Member Jim Ward, TO Recess the Public Hearing until February 12, 2007.  THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

Mayor Foy asked Council Member Ward if he would be willing to make a motion with the modifications to stipulation 8, 9 and 9b that he had already moved and with the removal of The Carolina Inn.  Council Member Ward moved that. 

Council Member Greene said that Council Member Ward’s language had satisfied her.  She said there would be one officer sitting in a cart controlling the lights and another available to help people cross the street.  Council Member Thorpe said he was satisfied with that as well.

Council Member Jim Ward MOVED, SECONDED BY Council Member Sally Greene, TO Adopt R-14a as amended.  THE MOTION WAS ADOPTED by a vote of 8-1, with Mayor Kevin Foy, Mayor pro tem Bill Strom, Council Member Sally Greene, Council Member Ed Harrison, Council Member Cam Hill, Council Member Mark Kleinschmidt, Council Member Bill Thorpe, and Council Member Jim Ward voting aye and with Council Member Laurin Easthom voting nay.

A RESOLUTION APPROVING AN APPLICATION FOR A DEVELOPMENT PLAN MODIFICATION NO. 3 FOR THE UNIVERSITY OF NORTH CAROLINA AT CHAPEL HILL (2006-12-04/R-14a)

Council Member Cam Hill MOVED, SECONDED BY Mayor pro tem Bill Strom, TO Recess  the public hearing with regard to the Carolina Inn to February 12, 2007.  THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

Mr. Bonk introduced the item.

Mayor pro tem Bill Strom MOVED, SECONDED BY Council Member Cam Hill, TO Adopt R-15 as amended with the number of Rogers Road residents changed from four to "up to eight".  THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

A RESOLUTION ADOPTING A SCHEDULE FOR THE ROGERS ROAD SMALL AREA PLAN PROCESS AND COMPOSITION OF THE ROGERS ROAD SMALL AREA PLAN TASK FORCE (2006-12-04/R-15)

Mr. Bonk introduced the item.
 
Council Member Easthom verified that supporting the resolution would mean agreeing to the map.  She said she could not endorse the assumption indicated by the map that something would head north from Carolina North.  For that reason, she would vote against the resolution, Council Member Easthom explained.

Mayor pro tem Bill Strom MOVED, SECONDED BY Council Member Cam Hill, TO Adopt R-16.  THE MOTION WAS ADOPTED by a vote of 8-1, with Mayor Kevin Foy, Mayor pro tem Bill Strom, Council Member Sally Greene, Council Member Ed Harrison, Council Member Cam Hill, Council Member Mark Kleinschmidt, Council Member Bill Thorpe, and Council Member Jim Ward voting aye and with Council Member Laurin Easthom voting nay.

A RESOLUTION APPROVING THE DRAFT SOCIO-ECONOMIC PROJECTIONS FOR THE 2035 LONG RANGE TRANSPORTATION PLAN (2006-12-04/R-16)

Planning Director J. B. Culpepper introduced the item.  She noted that the applicant had expressed concern at the public hearing about a proposed condition that had an expiration date.  Ms. Culpepper said that concern should be accommodated by the modified language in revised Resolution A.  She noted three other stipulations that had been included in the revised resolution.

Mr. Neppalli reviewed the revisions included in R-17a and explained why staff did not recommend that UNC pay for implementation of a traffic signal at the Old Sterling Drive/Sage Road intersection.  He suggested that the Council add that to the resolution, however, if they wish the University to pay for it.

Mary Jean Felgenhauer, of UNC’s Facilities Planning Office, submitted a letter in support of UNC’s application for the UNC park & ride at Chapel Hill Bible Church SUP Modification.  She said that UNC had presented evidence showing that the proposed modification would meet the required findings.  With regard to finding #3, she said, property values had continued to increase during the previous years of growth and development in this area.  

In summary, said Ms. Felgenhauer, assessed values had increased by 48 percent between 2004 and 2006 for properties adjacent to the Church.  She said the proposed modification would have no significant impact on the area and no detrimental effect on the value of the contiguous property.  Ms. Felgenhauer said that UNC agrees to the recommendation that they provide adequate and appropriate lighting, that they install a blue box at the site, and that they reaffirm their intent to monitor the operation.  She asked the Council to consider revising stipulation 8 to allow UNC to open this facility in a timely manner using the existing bus stop until improvements can be implemented.

Harvey Krasney criticized the Bible Church for reneging on its promise not to add more traffic to this neighborhood during the week.  He said, if the Council insisted on passing this "unnecessary application," he would like to see three stipulations: a firm exit date of exactly three years; mandatory full-time monitoring of both lots to ensure that a maximum of 241 spaces would be used by UNC commuters; and make UNC contribute to the added safety measures needed on Sage Road.  Mr. Krasney also asked that the Council make UNC pay a fair share of the added expense for safety facilities on Sage Road.  Please stipulate that UNC pay at least half of all cost that the Town incurs to install added safety measures on all of Sage Road between Erwin Road and US 15-501, he said.

Kevin Hewison said he was pleased that the Council had taken up a number of neighborhood suggestions and had pressed UNC and the Bible Church on this issue.  He said the current proposal for five years or more, was different from the straight five-year proposal that had been presented to neighbors.  Mr. Hewison thanked the Town’s engineers for doing the traffic impact assessment in a more complete way.  He said it did not make sense to say that traffic would be impacted by the park and ride while also saying that it would have little or no impact in the neighborhood. 

Mayor Foy asked if UNC would be willing to provide the pedestrian safety improvements that Mr. Neppalli was recommending.   Ms. Hewison replied that the University would agree to that.    

Council Member Ward asked for clarification on the length of the lease.  Ms. Hewison replied that, as the resolution was written, five years would begin with a signed lease.  She listed a number of conditions that would allow a 24-month extension at the end.  Council Member Ward asked if that meant seven years would be the maximum length.  Ms. Hewison replied that she did not think there was a limit to the number of two-year extensions that UNC could request.  

Council Member Harrison asked UNC officials to bring back a written request if they want the Council to take the discussion of other lots to the MPO. 

Council Member Easthom said she did not feel entirely comfortable with the lease agreement.  She wondered if the Council would consider granting a three-year lease and granting UNC a two-year extension only if they demonstrate that they are seeking other park and ride locations.  Ms. Hewison replied that UNC would not be willing to do a three-year lease.

Council Member Kleinschmidt pressed the issue, and UNC Associate Chancellor Carolyn Elfland explained that three years would not be enough time to justify the University’s investment.  

Council Member Kleinschmidt asked how the Town could be confident that UNC would continue looking for other locations.  Ms. Hewison noted that a number of stipulations in the resolution had asked UNC to provide bits of information as part of its twice-a-year updates to Council.   She said they could easily include that information as well.  Council Member Kleinschmidt proposed making the extension of the lease contingent upon such a demonstration to find other facilities.

Mayor Foy noted that both the Town and UNC had an interest in finding a permanent solution on that corridor.  He said the Town wanted a real park & ride lot, not a University only arrangement.   Mayor Foy pointed out that both parties had a strong incentive to have something there, but no one had been able to figure it out.

Council Member Kleinschmidt commented that there did not seem to be any incentive for UNC to look further, however.

Mr. Runberg said that UNC would continue to actively look for property in that area.  He said it would be fine too if a partnership could be worked out with the Town.  Mr. Runberg told Council members that UNC had been looking at other sites, but had discovered it was nearly impossible to find anything at a reasonable price.  

Council Member Hill commented that the Town’s and UNC’s goals seemed to be aligned.  Since this lot does not satisfy all of UNC’s needs, the natural inclination would be for them  to keep looking, he said.  Council Member Hill noted that there was a "sea of asphalt" around the Church.  The idea that it was not being used most days was sort of ridiculous, he said.  
Council Member Ward ascertained that UNC would ideally like to start the parking lot in January because that is when the spring semester begins. He verified that the traffic light on Sage/Irwin could be up and running by the summer, and noted that there could be six months before then without that device.  Council Member Ward wondered if the resolution could include a solution if traffic problems arise.

Mr. Neppalli said that having the traffic signal up and running should not take more than two months after DOT starts construction.  However, the contractor does have six months to do so, he pointed out.  Mr. Neppalli said that the only option would be to limit opening the lot until a signal was in place, or until a specific month.  He added that he was not sure UNC would agree to that.

Ms. Hewison said that since UNC begins operation in January it could not pull permits half way through the semester and leave people without parking. 

Mayor Foy commented that the Town needed to deal with this short-term problem itself and ask the Town Manager to have Town police keep an eye on it.

Council Member Easthom said she did not like the idea of an open-ended lease.  She would agree to five years as long as one of the conditions was that UNC must demonstrate on paper that it is actively pursuing other locations, she said.

Ms. Hewison replied that UNC would be happy to provide any such information that is not confidential.

Council Member Greene agreed that such a clause should be in the SUP, and said she thought the issue had previously been discussed.  Mr. Karpinos suggested adding the following language to stipulation 4d:  "The permit holder shall demonstrate to the Manager that it is actively looking for alternative sites for a park/ride lot."   

Council members accepted that language.  Mayor Foy suggested amending the resolution to include the language and adding a stipulation with regard to pedestrian improvements, as itemized in agenda item 4h.  He asked Ms. Hewison about her request that UNC be allowed to begin operation with the existing stop.  Ms. Culpepper said that would address stipulations 8 & 9.  Mayor Foy verified that the change would remove "prior to use" in both stipulations 8 & 9.

Council Member Sally Greene MOVED, SECONDED BY Council Member Jim Ward, TO Recess the Public Hearing until February 12, 2007.  THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

Council Member Sally Greene MOVED, SECONDED BY Council Member Jim Ward, TO Adopt R-17a as amended.  THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

A RESOLUTION APPROVING AN APPLICATION FOR A SPECIAL USE PERMIT MODIFICATION FOR THE CHAPEL HILL BIBLE CHURCH PARK/RIDE TERMINAL (2006-12-04/R-17a)

a.	Million Solar Roofs Initiative.

The Council appointed Logan Yonavyac to the Million Solar Roofs Initiative.

Million Solar Roofs Initiative Master Ballot

b.	Public Housing Program Advisory Board.

The Council appointed LaVerda Pride to the Public Housing Program Advisory Board.

Public Housing Program Advisory Board Master Ballot

a.	By the Mayor and Council Members.

1.	Petition regarding Empowerment, Inc.’s Efforts to Petition Orange County for Exemption from Property Taxes on the Midway Office Building (R-18). (Council Member Mark Kleinschmidt)

Council Member Kleinschmidt explained that the resolution  (R-18) would express the Council’s intention that the small business incubator be part of EmPOWERment’s non-profit mission.  He noted that few businesses would do as EmPOWERment does, which is to help other businesses get started and then kick them out once they make a profit.  Council Member Kleinschmidt pointed out that the Town did not have control over the County assessor.  However, this would let Orange County understand how the Council thinks about EmPOWERment and what EmPOWERment’s mission means to the community, he said.

Council Member Mark Kleinschmidt MOVED, SECONDED BY Council Member Jim Ward, TO Adopt R-18.  THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

A RESOLUTION SUPPORTING EMPOWERMENT, INC.’S, EFFORTS TO PETITION ORANGE COUNTY FOR EXEMPTION FROM PROPERTY TAXES ON THE MIDWAY OFFICE BUILDING UNDER N.C.G.S. � 105-278.7 (2006-12-04/R-18)

2.	Process to Appoint Members to the Hollow Rock/Erwin Road Property Park Planning Advisory Committee (R-19). (Council Member Sally Greene)

Council Member Sally Greene MOVED, SECONDED BY Council Member Cam Hill, TO Adopt R-19 as amended to nominate Council Members Strom and Harrison to serve on the Hollow Rock/Erwin Road Property Park Planning Advisory Committee.  THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

A RESOLUTION AUTHORIZING THE TOWN COUNCIL TO APPOINT TWO MEMBERS OF THE COUNCIL TO THE HOLLOW ROCK/ERWIN ROAD PROPERTY PARK PLANNING ADVISORY COMMITTEE MEMBER (2006-12-04/R-19)