a.	Tree City Presentation.

Public Works Director Bill Letteri briefly described the Tree City USA program.  He said that Chapel Hill became registered as a "Tree Certified City" in 1999, the purpose of which was to recognize cities that develop comprehensive urban forestry programs.  Mr. Letteri stated that the Town must be re-certified each year, comprising four components: the Town must have a department or tree board designated to be responsible for tree care; the Town must have a tree ordinance; the Town must have an active community forestry program; and the Town must have an Arbor Day observance and proclamation. Mr. Letteri added that Chapel Hill had qualified for a Growth Award each year since 1999 for reaching a level of achievement above the minimum standards for recertification, and that the Town had also earned a preferred status when applying for grants.

a.	Public Hearing: Proposed Historic Preservation Agreement for the Old Library/Chapel Hill Museum

Mayor Foy announced that the Town had scheduled a Public Forum regarding a Proposed Historic Preservation Agreement for the Old Public Library, now the Chapel Hill Museum.  Planning Director JB Culpepper stated that purpose of the forum was to receive pubic input on the possibility of establishing a preservation agreement for this site, which would prevent substantial change to the structure without the approval of the Historic Preservation Foundation of North Carolina.  Ms. Culpepper stated that the Town had worked closely with the Foundation in creating this Agreement.  Board Chair of the Chapel Hill Museum and Member of the Historic District Commission Steven Rich reported that both the Museum Board and the Historic District Commission were in favor of this agreement. The Mayor stated that the Council would refer the comments on this issue to the Town Manager and Attorney, to return to the Council for action at a later date.

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

1.	Planning Board regarding Process for Revision of Chapel Hill�s Comprehensive Plan.

George Cianciola, from the Planning Board, reported that the Council had asked the Planning Board to take the lead in examining a revision of the Comprehensive Plan, which should be revised every five years, as it was going into its seventh year.  Mr. Cianciola stated that the Board had initially made a recommendation on the process, but the Council had asked staff to come up with a simpler approach.  He said that staff had proposed examining one or two chapters at a time, but that the Planning Board preferred to examine it in its entirety, because they felt that the plan needed a vision statement, and because several new theme areas had been identified, which were not adequately covered by the current plan.  The Board therefore was petitioning the Council to allow it to work with staff to generate a vision statement and a process for looking at the plan in its entirety, Mr. Cianciola said.  Planning Board Chair Ruby Sinreich reinforced Mr. Cianciola�s statements, adding that the current debate on several Town Projects highlighted the need for rethinking the Comprehensive Plan�s vision and direction.  Council Member Greene, Council Liaison to the Planning Board, said that, in her work with the Board, she supported their proposed ideas for the process and supported starting it as quickly as possible. Mayor pro tem Strom and Mayor Foy agreed, recommending that the petition be accepted.

Council Member Sally Greene MOVED, SECONDED BY Mayor pro tem Bill Strom, TO Approve the process for revision of Chapel Hill�s Comprehensive Plan.  THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

2.	Chapel Hill Public Library Foundation regarding Recognition of Cornelia Spencer Love.

President of the Chapel Hill Library Foundation Gene Pease explained that the Foundation oversees the Cornelia Spencer Love Trust, which annually provides revenue for special projects for the Chapel Hill Public Library.  He said that the trust was formed in 1982 after the death of Cornelia Love, with a private gift of $350,000, to be invested, with regular allocation made to enhance the Public Library services.  Since then, Mr. Pease stated, the amount had increased to approximately $1.8 million; $1.5 million had been distributed to the Town for use in the Public Library.  Mr. Pease stated that the Friends of the Library, the Library Trustees, and the Library Foundation all believed that the public was unaware of Miss Love�s gift to the community. He outlined her many contributions to the community, and to the Public Library in particular.  Mr. Pease stated that the Library Foundation and the Public Library requested to display a portrait of Ms. Love at the Library in order to honor her and recognize her generosity and vision to those using the library.

Council Member Jim Ward MOVED, SECONDED BY Council Member Sally Greene, TO Receive and Refer the petition to the staff.  THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

3.	Continuing Concerns Committee requesting Renaming the Committee.

Mayor Foy explained that the Continuing Concerns Committee, which had grown out of the Martin Luther King Jr. Boulevard renaming project, requested that its name be changed to the Justice and Action Committee.  He added that this Committee welcomed people with an interest in concerns regarding racial issues in Town to join the group, and they could contact the Mayor�s Office or Council members for more information.

Mayor pro tem Bill Strom MOVED, SECONDED BY Council Member Sally Greene, TO Approve the request of petition to rename the Continuing Concerns Committee to the Justice in Action committee.  THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

4.	Habitat for Humanity requesting Expedited Review for Purefoy Drive Subdivision.

Mayor Foy explained that Habitat for Humanity had submitted a written petition requesting an expedited review for the Purefoy Drive Subdivision Project. 

Council Member Jim Ward MOVED, SECONDED BY Council Member Sally Greene, TO Receive and Refer the petition to the staff.  THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

b.	Petitions by citizens on items on the agenda.

Francis Henry, a downtown business owner, spoke on the downtown initiative, questioning whether the construction of high rise buildings downtown represented the vision of what Chapel Hill should look like.  He asked the Council to preserve the heart of the downtown area, in particular the 100 block; and he highlighted the decline of the alley area.

Rogers Road area resident Jeanne Stroude raised concerns about the landfill and proposed new transfer station in the area.  She highlighted a number of problems associated with the landfill, such as loud noises of machinery; horrible odors; buzzards and vermin infestations; and major traffic problems.  She said that residents had been promised that the landfill would be moved after a certain period of time, which was over ten years ago.  Ms. Stroude said that, with new talk of build ling a transfer station in the same location, she was requesting that the Council consider another location for this proposed transfer station. Rogers Road resident Sharon Cook supported Ms. Stroude�s comments, and presented that Town Council with a petition requesting that the Town consider another location.

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

Council Member Thorpe requested to remove Item #4c, the Tree Protection Petition Response, from the Consent Agenda.  Mayor pro tem Strom requested to remove item #4h, The Vehicle  Replacement Plan for this fiscal year, from the Consent Agenda, and to refer it to the March 5 meeting of the Sustainability, Energy, and Environment Committee.

Council Member Jim Ward MOVED, SECONDED BY Council Member Cam Hill, TO  Remove agenda item #4h and refer it to the SEE committee .  THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

Town Planning Director JB Culpepper stated that last year, the Council had adopted a goal to change the tree protection regulations.  She said that the Planning Board had presented a petition to the Council for a two-step process to expand the regulations.  Ms. Culpepper explained that the first step would de-couple the building permit and land disturbance provisions of the ordinance affecting single family and two-family structures, and it would lower the threshold for measuring the diameter of the trees.  She said that a public hearing would be held in May to consider these changes.  Ms. Culpepper explained that the second phase would authorize the Manager to proceed with a request for proposals to hire a consultant to study the ordinance and related issues.  She added that the proposal would affect single family and two-family lots, requiring a permit to remove trees and either replant trees or pay into a fund for planting trees on Town property or open space.

Council Member Thorpe suggested that more time was needed for public information before the hearing took place.  He said that if the hearing took place in May, there may not be many people in attendance; but once people were required to obtain a permit to remove a tree, they would start asking questions.  He therefore proposed that the hearing be rescheduled for the fall.  Mayor Foy stated that he would rather not postpone it, because it had been on Council�s agenda for two years, and it was now time to get the issue into public discussion.  He said that the Council would not take action on the ordinance until the public had time to give their comments.  Council Members Greene and Ward supported this idea.  Council Member Ward proposed that the Town develop a strategy for public information and awareness on the issue.

Council Member Jim Ward MOVED, SECONDED BY Council Member Sally Greene, TO Adopt R-4.  THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

A RESOLUTION SCHEDULING A PUBLIC HEARING TO AMEND THE LAND USE MANAGEMENT ORDINANCE REGARDING EXPANSION OF THE TREE PROTECTION ORDINANCE AND AUTHORIZING THE MANAGER TO  SEEK REQUESTS FOR PROPOSALS FOR SUBSTANTIVE CHANGES TO THE TREE PROTECTION REGULATIONS (2007-02-12/R-4)

Mayor pro tem Bill Strom MOVED, SECONDED BY Council Member Jim Ward, TO Adopt R-1 as amended without item #4c and #4h.  THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

A RESOLUTION ADOPTING VARIOUS RESOLUTIONS AND ORDINANCES (2007-02-12/R-1)

A RESOLUTION NOMINATING APPLICANTS TO VARIOUS BOARDS AND COMMITTEES (2007-02-12/R-2)

A RESOLUTION AMENDING THE COUNCIL�S 2006-2007 MEETING CALENDAR (2007-02-12/R-3)

A RESOLUTION ACCEPTING THE CABLE CONSULTANT�S REPORT AND FINDING TIME WARNER CABLE�S 2007 BASIC SERVICE TIER RATES TO BE ACCURATELY CALCULATED ACCORDING TO FCC RULES AND REGULATIONS (2007-02-12/R-5)

A RESOLUTION AUTHORIZING THE ACCEPTANCE OF A DEPARTMENT OF ENERGY GRANT (2007-02-12/R-6)

AN ORDINANCE TO AMEND �THE ORDINANCE CONCERNING APPROPRIATIONS AND THE RAISING OF REVENUE FOR THE FISCAL YEAR BEGINNING JULY 1, 2006� (2007-02-12/O-1)

A RESOLUTION ACCEPTING A GRANT FROM THE DURHAM-CHAPEL HILL-CARRBORO METROPOLITAN PLANNING ORGANIZATION FOR PREPARATION OF THE CHAPEL HILL LONG RANGE TRANSIT PLAN (2007-02-12/R-7)

AN ORDINANCE TO AMEND �THE ORDINANCE CONCERNING APPROPRIATIONS AND THE RAISING OF REVENUE FOR THE FISCAL YEAR BEGINNING JULY 1, 2006� (2007-02-12/O-2)

A RESOLUTION AUTHORIZING AN AMENDMENT TO THE TERMS OF A PERFORMANCE AGREEMENT BETWEEN THE TOWN AND HABITAT FOR HUMANITY FOR A LOAN FOR THE ACQUISITION OF PROPERTY ON SUNRISE ROAD (2007-02-12/R-8)

Council Member Ward stated that if a formal vote was needed on his verbal petition to develop a public information strategy on the tree protection regulations, he would like the Council to follow through on that.  He wished to ensure that a strategy for public information was created as soon as possible.

Council Member Jim Ward MOVED, SECONDED BY Council Member Bill Thorpe, TO  that the Town develop a strategy for public information and awareness regarding the expansion of the tree protection ordinance.  THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

h.	Response to Petition to Conduct Road Races.

Steve Lackey stated that he had been working with the Chapel Hill Police to find an acceptable route for a half-marathon race through Chapel Hill.  He said that the route for the 5K Road Race was proposed to run down Franklin Street and back Rosemary Street, finishing in Lot Five.  Mr. Lackey said that the date had been changed to May 19, and he was requesting the Council�s approval for that date.  Mr. Lackey added that they were also hoping to schedule the half marathon event for May 19.  He asked for the Town�s support with respect to road closures and other safety issues regarding the races. 

All other reports were accepted as presented.

Town Manager Roger Stancil gave a presentation on the development considerations for Lot 5.  He reported that the Council had authorized negotiations to be finalized on December 4, 2006, and to make a draft agreement public two weeks in advance, which had been done.  Mr. Stancil requested that the Council consider the Development Agreement.  

Mr. Stancil stated that the Lot 5 Project comprises: 137 residential condominiums, with 21 affordable units; an underground parking garage with 330 spaces; 28,000 square feet of retail space; 27,000 square feet of public open space; LEED Certification; and one percent of the budget allocated for public art.  He added that the Town owned Lot 5; it would lease the building footprints for 99 years, with an option to the homeowners association to purchase the air rights in 50 years, although the Town would continue to own the underlying land of the site.  Mr. Stancil stated that some benefits of the project included: residents living downtown; enhanced vitality and public safety of downtown; improved retail customer base; and significant public space.  He added that the project met the Town�s Comprehensive Plan Objectives of less auto dependence and revitalization of downtown as the center of the community.  Mr. Stancil said that during the discussion of the project on December 4, 2006, some key issues had been raised, which would be addressed in his presentation.

Mr. Stancil stated that some of the performance features of the contract included specific dates regarding the start and end of the project. He said that the Special Use Permit was to be submitted before March 20, 2007; and that performance and payment bonds were specified, and the full amount of the price for the work.  He added that there was a separate payment bond for completion of the parking garage and public space, which would be owned by the Town, with provision for liquidated damages if the developer did not achieve substantial completion by the scheduled completion date.  

Mr. Stancil stated that the Town�s investment remained as it had been originally proposed: to provide $7.245 million for 161 public spaces in the parking garage.  He said that the risk to the Town was limited, and that the Town had no exposure to the developer�s risk.  He added that the anticipated investment of the project was 25 million dollars; of that, the developer was required invest 12.5 million dollars of its own money.  Mr. Stancil stated that the amount that the Town borrowed to pay for the public space portion would need approval from the NC local government commission.  He stated that, with respect to affordable housing, the project met the Town policy of having at least 15 percent units affordable.  He added that the condominium fees would not exceed 1.5 percent of sales price of the affordable units, and that the developer agreed to contribute $25,000 to develop a town wide policy on affordable housing condominium fees.  Mr. Stancil suggested possible parking locations for the affordable housing units as: in the parking garage itself on off-peak hours; or in Parking Lots Four and Six.  He stated that the Public Art portion of the contract was 1 percent of the total development budget, or $671,000. 

Mr. Stancil stated that, regarding LEED Certification, the contract stated: "If feasible within the project budget, the project will achieve LEEDS Silver Certification, with a 20 percent improvement in energy efficiency".  He recommended that, regarding construction management, the Town engage a construction manager to work with the developer, with respect to the parking deck portion that would belong to the Town.  He stated that the preliminary estimate of that cost was $75,000 to $225,000, depending on number of services.  Mr. Stancil added that there would be no additional cost to provide the general Town services regarding this project; additional costs for operating the deck were estimated at $80,000 per year, and for maintaining the public space, at $15,000 per year.

Mr. Stancil was requesting the Council to authorize the Development Agreement, and to authorize the Town Manager to sign the agreement on the Town�s behalf, and to act as the Town�s representative in implementation of the project.  He said that the agreement was based on the October 2005 Memorandum of Understanding; the November 20, 2006 Revised Proposal; and the Council action and concerns raised on December 4.  He added that if the agreement were approved, the next steps would be: for the developer to go through the standard application process; to continue the peer review process; and to implement divisions of the Development Agreement.

Chairperson of the Board of Directors for the Chapel Hill Carrboro Chamber of Commerce Anita Badrock expressed support for the development project on behalf of their membership and the greater business community.  She cited such positive benefits as: increasing the commercial tax base and retail office space downtown; promoting a diverse tax base; providing permanent residences to support downtown businesses; improving safety and visibility downtown; and increasing the number of affordable housing units.

Mike Collins, speaking on behalf of the Citizen�s Group, Neighborhoods for Responsible Growth (NRG), stated that he supported the inclusion of energy efficiency and carbon reduction requirements in the RAM development project; that it should be an initial priority, and it should be required, not optional.  These comments were supported by Andrea Rohrbacher on behalf of the Orange-Chatham Sierra Club, Joyce Brown, Will Raymond, and Tom Henkel, who added that energy efficient buildings also serve the interests of the developer in terms of higher market value.

Will Raymond suggested that more time was needed for public review of this project.  He questioned if 21 units of affordable housing was enough to serve the needs, and he inquired about a transit transfer station that had been previously discussed for that site.  Joyce Brown suggested that the Council postpone approval of all high density housing developments, until the Town had addressed the issue of overcrowding in schools. 

Mayor pro tem Strom suggested using Lots Four and Six for public parking, and using some of the Town spaces under the building for parking for the affordable units.  Council Member Easthom suggested that the Town negotiate an agreement with RAM such that the Town contributed five of its spaces and RAM contributed five of its spaces, to give ten spaces for the affordable units.  Council Member Kleinschmidt supported these ideas.  Mayor Foy suggested, supported by Mr. Stancil, that a time should be set aside in a future meeting to further discuss the affordable housing issues. Council Member Easthom asked how the figure of two million was calculated, for payment to the Town in fifty years for the air space.  Mayor Foy responded that it was meant to give some security to the people who buy the units; and he added that the homeowners were not paying the money; the developer was putting up the funds in advance.  Council Member Kleinschmidt added that the negotiation allowed the Town to retain some interests in the property.

Council Members Easthom and Ward expressed concern that the costs involved in removing hazardous materials were an unknown quantity, which created a high risk for the Town.  Town Attorney Karpinos replied that there was a provision in the agreement for default; if the Town decided that the remediation costs were not affordable, then the Town would be in default of the agreement.  He added that in this case, the maximum risk to the Town would be in whatever liability it had to the developer, after deciding not to go through with the agreement.  Mr. Hardiman, an attorney assisting the Town with the agreement, stated that there were previously two environmental assessments conducted of the site.  He said the first assessment showed no contamination; the second showed a possibility of some minor contamination, but there was no indication that this would be a substantial problem.

Council Members Easthom, Ward, and Harrison supported the comments of the previous speakers about energy efficiency. They stated that the words "if the budget permits" should be removed from the document, and that the developer should be required to achieve the the minimum of LEED Silver Certification, with 20 percent energy efficiency standards. Council Member Ward suggested that if the standards were not made a priority, then they would probably not be achieved.  Casey Cummings, representing RAM, stated that the energy efficiency goals stated in the agreement, were: "to exceed ASHRAE standards for energy efficiency by a minimum of 20 percent, if feasible within the project budget."   He added that this was one of a number of project components negotiated with the Town, and he questioned whether all of the objectives could be accomplished within the budget.  Council Member Greene expressed reservations about the value of using LEED certification as a tool, given the expenses involved.  Council Member Ward responded that LEED was imprecise, but it was currently one of the best tools available.  Mayor Foy suggested that the Council go ahead with the motion and permit the Manager to move forward, but that there be a requirement that the 20 percent reduction be maintained; however, the Manager would have the flexibility to negotiate with RAM on other issues in the agreement. 

Mayor pro tem Bill Strom MOVED, SECONDED BY Council Member Mark Kleinschmidt, TO Adopt R-10 as amended .  THE MOTION WAS ADOPTED by a vote of 7-2, 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, and Council Member Bill Thorpe voting aye and with Council Member Laurin Easthom, and Council Member Jim Ward voting nay.

A RESOLUTION AUTHORIZING EXECUTION OF A GENERAL DEVELOPMENT AGREEMENT WITH RAM DEVELOPMENT COMPANY (2007-02-12/R-10)

Mayor pro tem Bill Strom MOVED, SECONDED BY Council Member Cam Hill, TO Adopt R-11 as amended.  THE MOTION WAS ADOPTED by a vote of 7-2, with Mayor Kevin Foy, Mayor pro tem Bill Strom, Council Member Sally Greene, Council Member Ed Harrison, Council Member Cam Hill, Council Member Mark Kleischmidt, and Council Member Bill Thorpe voting aye and with Council Member Laurin Easthom, and Council Member Jim Ward voting nay.

A RESOLUTION DIRECTING EXPEDITED PROCESSING IN THE REVIEW OF A REZONING AND SPECIAL USE PERMIT APPLICATION FOR THE DOWNTOWN ECONOMIC DEVELOPMENT INITIATIVE (2007-02-12/R-11)

Development Coordinator Gene Poveromo explained that this was a continuation of a public hearing from December 4, in which the University of North Carolina had requested approval for a modification of a Development Plan.  He said that on December 4, the Council had approved a portion of the development plan, but there had been an agreement between the Council and the University to continue the public hearing on February 12, in order to provide additional information on the proposal for the Carolina Inn.  Mr. Poveromo explained that at the December 4 meeting, the Council had raised two concerns: one of fiscal equity; and the second concerning property tax payment.  He added that in response to those two concerns, the University had sent a letter to the Council.  Mr. Poveromo stated that staff were recommending that the Council approve the application with conditions. He said that the resolution would amend the development plan as approved on December 4, and it would authorize a 15,000 square-foot addition to the Carolina Inn.  Mayor Foy and Mr. Poveromo clarified that the resolution focused on the addition to the Carolina Inn; it did not change anything regarding the Carolina Inn from what had already been approved on December 4.

Mr. Bruce Runberg, speaking on behalf of the University, explained that Whitehead Hall was currently exempt from property tax, so the proposed conversion did not change the current tax rolls.  He said that the University paid occupancy taxes on non-University-related occupants, which would remain true of the revenues generated by the new rooms; and that the Carolina Inn land and buildings were owned by the University.  Mr. Runberg added that the University had met all of the requirements in the ordinance, and they agreed with the staff�s recommendations.

Council Member Hill raised a concern that this exemption from property tax was in direct competition with local businesses that did pay property tax; and that, therefore, was an unfair advantage.  He requested that the issue be discussed within the context of the upcoming fiscal equity study, so he moved that the Council defer approval of this portion of the development until that study was completed.  Council Members Ward and Hill asked about occupancy tax for those staying at the Carolina Inn from out of Town.  They said that people coming to Town on University business were exempt from paying occupancy taxes, and asked if this applied to those coming to attend the sport events.   They suggested that the issue needed further discussion. 

Mayor Foy suggested that the resolution be postponed until the next business meeting on February 26, for further discussion. He said that under OI-4, there was a time limit on the Council�s action, so he asked the University to agree to extend that date until February 26.  But the University representatives expressed reservation with this proposal.  After some discussion, Mayor Foy suggested that the University agree to consider this project as part of the fiscal equity study; and to agree that whatever was approved here would be subject to that study.  He proposed that the Council would pass two separate resolutions: One would be on this issue; and the other would place this project in the fiscal equity discussion.  Mr. Runberg, Mayor Foy, and Council Member Hill clarified that the latter resolution would be on the Carolina Inn and its impact relative to the overall fiscal equity study.

Council Member Cam Hill MOVED, SECONDED BY Mayor pro tem Bill Strom, TO Adopt R-12a.  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 Kleischmidt, Council Member Bill Thorpe, and Council Member Jim Ward voting aye and with  Council Member Laurin Easthom voting nay.

A RESOLUTION AMENDING AN APPLICATION FOR DEVELOPMENT PLAN MODIFICATION NO. 3 FOR THE UNIVERSITY OF NORTH CAROLINA AT CHAPEL HILL (2007-02-12/R-12a)

Council Member Cam Hill MOVED, SECONDED BY Mayor pro tem Bill Strom, TO  instruct the Manager to include discussion of the Carolina Inn in the fiscal equity study as agreed upon tonight.  THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

Principal Planner Phil Mason reported that this was a continuation of three related requests: The Land Use Management Ordinance Text Amendment regarding a mix of uses, and the mixed use office institutional one zoning district; a request for partial revocation of a portion of the Chapel Hill North Phase One Special Use Permit; and an application for a Special Use Permit, which proposes 123 dwelling units behind the Harris Teeter Supermarket on the Chapel Hill North Site.  He said that the partial revocation of the North Phase One Special Use Permit would shrink the boundary in an area not developed on Chapel Hill North, and it would allow the applicant to proceed with their residential proposal.  He recommended that the Council adopt Resolution A to partially revoke the Phase One Special Use Permit.  He added that the proposed Phase Two Special Use Permit would authorize 123 dwellings and 238 parking spaces.

Mr. Mason stated that at the public hearing in January, affordable housing was identified as a key issue.  He said that the applicant proposed to have affordable rental housing on site, but the staff is still working with the applicant on the details. He recommended that the Council approve the Special Use Permit application, with a condition that the applicant return to the Council at a later date for approval of the affordable housing plan.  He added that the text amendment and partial revocation of the Phase One Special Use Permit would need approval before the Phase Two Special Use Permit.  Mr. Mason explained that, regarding the Text Amendment application, to satisfy the mixed-use OI-1 zoning ordinance, 60 percent office use was mandated at Chapel Hill North.  He said that this ordinance text amendment would expand the mix of allowable uses, requiring a range of between 20 percent and maximum 55 percent each for office use, commercial use, and residential use respectively. 

Representing the applicant, Scott Radway stated that the he had been before the Council in October 2006, and again on January 8 2007.  He said that over that time, there had been discussion on several issues, such as the Weaver Dairy Road and Perkins Drive intersection, and the potential traffic increases from the development project.  He stated that the Town staff had met with the North Carolina Department of Transportation, and had recommended that the Perkins Drive intersection be left as it is, but to add a pedestrian island and crosswalks.  Mr. Radway stated that the residential portion was already a permitted use within the mixed use district, but the text amendment proposes a different balance of residential uses.  He said that, with respect to the affordable housing component, he was requesting some guidance from the Council on a few items, noting that the Town planning procedures normally pertained to residential units that were sold; but that this was a rental situation, and so differs somewhat.

David Raven, representing Crosland, explained that the project was currently at a proposed density of ten units per acre.  He suggested that it was in the best interests of the supermarket to develop the land since it owned the land, and he felt that the project was an appropriate initiative for the land.  Richard Waseko, a resident of Weaver Dairy Road, said that he supported the language of the new text amendment and the enactment of the ordinance.  Del Snow, speaking on behalf of CURB, said that they appreciated the additions to the proposal, but that they requested a delay in Council approval, until after the Council�s work session on March 7.   

Mr. Radway asked if the affordable units should be available to households with 80 percent or less of median income, as per the Town�s policy, even though this policy was written for an ownership situation?  He stated that there was indication from the Town that in rental housing, the policy should be 60 percent or below; but in his view, this was really low income, normally requiring some form of public support.  He proposed to have 100 percent internally subsidized rental affordable housing, thus eliminating the need for public subsidies. Mr. Radway added that, in deciding which rental rate tables should be used, he preferred using the rates based on the North Carolina Housing Finance Agency Income and Rental Rate Tables.  He stated that, with respect to marketing and occupancy schedules for the affordable units, he proposed to have six weeks of marketing, before the unit reverted from an affordable housing unit back to a fair market unit.

Council Member Kleinschmidt asked, if the affordable units do revert back to market rate after the specified period of time; when that lease is over, would they revert back again to affordable units?  Mr. Radway answered that, yes, at the end of the lease, the unit would come out of the market rate, to be advertised again under the affordable rate; thus going back through the same process over again.  Mayor pro tem Strom suggested that it could take a while to rent affordable units, so the issue should be carefully considered.  Council Member Ward noted that advertising for the affordable units should be planned carefully; they should receive as much attention as the market rate units.  Council Member Hill asked that, if there were affordable units that the applicant was unable to rent, and they were then rented at the market rate, could an arrangement be made in which the developer contributed this difference in rental fee to another affordable housing agency?   

Mayor pro tem Strom cautioned against approving the permit before resolving the affordable housing issues, so he suggested, along with Council Member Easthom, that the Council delay approval until the March 7 work session.  Mayor Foy stated that in his experience, the Council had never approved a Special Use Permit, excluding a certain section; usually the permit is approved or not in its entirety.   At Mayor pro tem Strom�s suggestion, a Council committee was formed to deal with these and other housing issues, with open meetings and minutes to be part of the public record.  Council Members Hill, Kleinschmidt, and Greene agreed to be on this committee. 

Council Member Jim Ward MOVED, SECONDED BY Council Member Cam Hill, TO Continue the Public Hearing on the Land Use Management Ordinance Text Amendment Modifications to the Permitted Mix of Uses in the MU-OI-1 Zoning District until March 26, 2007.  THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

Council Member Jim Ward MOVED, SECONDED BY Council Member Cam Hill, TO Continue the Pubic Hearing on the Request for Partial Revocation of the Chapel Hill North Phase I Special Use Permit and Application for a Phase II Special Use Permit until March 26, 2007.  THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

Mayor pro tem Bill Strom MOVED, SECONDED BY Council Member Sally Greene, TO  form a committee to address affordable housing issues.  THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

Town Attorney Ralph Karpinos reported that on Monday, February 19, the Council would meet with the state legislative delegation to discuss potential issues for 2007; so the Council would need to decide on its priorities for discussion.  He suggested such as issues as: a proposal requiring private developers to contribute to public art; further consideration of campaign and election law changes; proposals related to energy conservation standards for private development, and density bonuses for developers that engage in energy efficient projects; a number of taxes, such as a real estate transfer tax; and requests for additional funding for mental health, technology to enhance communication between the justice system and public safety staff, educational programs, gang awareness programs, and power protection services for state facilities.  He added that these were largely the issues that he had heard from Council members and staff throughout the year, including the various resolutions that the Council had adopted over the past two years as its legislative program.

Mayor Foy stated that there were some issues regarding Department of Transportation (DOT) Funding: the federal money comes to the state, but the state is unable to disburse it to the local governments.  He said that the Council should be aware of it, and be prepared to discuss it.  Council Member Ward suggested asking the representatives for their advice on how best to obtain this needed funding.  He also suggested adding to the list of requests a bottle bill that had been previously raised at the state level.  Council Member Thorpe requested that an official communication on the meeting be sent to State Representative Larry Hall, who was willing to attend the meeting.

Council Member Kleinschmidt asked if the previous agenda items from prior years would also be included as a memo to the delegation?  Mayor Foy replied yes.  Mr. Karpinos clarified that the Town typically has a conversation with the delegation on the points of discussion; then the Town adopts a resolution and sends it to them.  He explained that the paperwork in front of the group on Monday would include the current list and those from the last two years: "2006 Resolution" and "2005 Resolution".  At Council Member Ward�s suggestion, it was decided that the Council would email the state legislators a copy of the planned items for discussion ahead of time, along with the previous Resolutions from 2006 and 2005.  Council Member Harrison stated that many of the bills on the Council�s list were local bills, and wondered if any of these issues were likely to be statewide bills.  Council Member Greene announced that she would be meeting with Donna Bickford, head of the UNC Women�s Program to discuss how the Town might support their efforts in opposing sex trafficking, which is a problem in the state, and possibly in the community.  Mr. Karpinos explained that this particular list of resolutions were local resolutions that the Town would definitely discuss with the state legislators on Monday; but this did not preclude the Council�s ability to discuss other issues with the state legislators on future occasions, as they came up.  Mayor Foy suggested that the Council send their list of items to the Orange County Commissioners, the Chatham Commissioners, and to Carrboro and Hillsborough.

Mayor Foy referred to a memo from the Town Manager responding to the Council�s discussion at their January 31 meeting, regarding the request for a consultant to assist the Town in devising a zone for Carolina North.  He encouraged the Council to decide how they wished to proceed with establishing a process of working with the University, toward reaching an agreement about what the new zone would look like. The Mayor asked the Council to think about the process for developing the zone, and how they wished to obtain the University�s agreement, especially on novel issues, such as energy efficiency.  He stated that it was expected that the consultant would look at these issues and include them in his or her report.  He added that there were a number of actions that the University could take under State law; a number of zoning, permits, and related restrictions did not apply to the University; the Town would need to solicit their cooperation.

Council Member Ward asked if items within a zone may or may not apply to the University, would this indicate a need to create regulations that the University would agree to?  Mayor Foy replied that it would be more like a negotiated process.  Council Member Hill added that it was possible that some of the property would be developed by private interests.  Mayor pro tem Strom suggested that the outputs from the Fiscal Equity Study and the Transit Master Plan would be important to the development agreement.  He emphasized that the zoning element should be on the Town�s own schedule; the Town should not be pushed to meet a deadline set by the University.  Council Member Ward suggested that, once the consultant is on board, he or she might be able to give the Town an idea of time lines and related issues.  Mayor Foy emphasized that the Council should continue this discussion at future dates; and he requested that the Council begin to sort out its vision for how they plan to go through this process, and toward establishing a formal way in which the Council and the University can sort out such issues.  

Council Member Cam Hill MOVED, SECONDED BY Council Member Jim Ward, TO Adopt R-14.  THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

A RESOLUTION DIRECTING THE TOWN MANAGER TO DRAFT AND ISSUE A REQUEST FOR QUALIFICATIONS FOR A CONSULTANT TO ASSIST WITH THE NEGOTIATED PROCESS TO ESTABLISH DEVELOPMENT REGULATIONS, CONSIDERING ZONING REQUIREMENTS, BUILDING STANDARDS AND DEVELOPMENT AGREEMENTS FOR THE UNIVERSITY�S HORACE WILLIAMS PROPERTY (2007-02-12/R-14)

a.	Board of Adjustment.

The Council appointed Valerie Bateman and Daniel Jensen to the Board of Adjustment.

Board of Adjustment Master Ballot

b.	Human Services Advisory Board.

The Council appointed Lou Borman to the Human Services Advisory Board.

Human Services Advisory Board Master Ballot

a.	By the Mayor and Council Members

1.	Petition regarding Consideration of a Parks and Recreation Impact Fee.

Mayor Foy forwarded a petition to discuss a Parks and Recreation Impact Fee.  He stated that the Town has started to see developments that Parks and Recreation components do not help with; but an impact fee may be helpful. 

Council Member Jim Ward MOVED, SECONDED BY Mayor pro tem Bill Strom, TO Receive and Refer 13a(1) to the staff for future consideration.  THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

Mayor Foy raised the issue of the transfer station, as the Town had received a letter from the Chairman of the Commissioners on Friday.  Mayor Foy had placed it on the agenda, because the Chairman had asked for the Council�s comments by February 23.  Mayor Foy suggested that the Council refer the letter to staff, and authorize the Mayor to respond to the Chairman that the Council would not be able to give them a response by February 23. 

Mayor pro tem Bill Strom MOVED, SECONDED BY Council Member Ed Harrison, TO Receive and Refer the Transfer Station petition to the staff to bring back when they can, and authorize the Mayor to respond the the chairman.  THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

Council Member Ed Harrison MOVED, SECONDED BY Council Member Bill Thorpe, TO Enter Into Closed Session as authorized by North Carolina General Statute Section 143-318.11 (a)(3), to consider a lawsuit in which the parties are the Town of Chapel Hill and H.E. Rayfield, Jr.  THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).