SUMMARY MINUTES OF A BUSINESS MEETING

OF THE CHAPEL HILL TOWN COUNCIL

MONDAY, MARCH 22, 2004, AT 7:00 P.M.

Mayor Kevin Foy called the meeting to order at 7:00 p.m.

Council members present were Sally Greene, Ed Harrison, Cam Hill, Mark Kleinschmidt, Bill Strom, Dorothy Verkerk, Jim Ward, and Edith Wiggins.

Staff members present were Town Manager Cal Horton, Deputy Town Manager Florentine Miller, Assistant Town Manager Bruce Heflin, Town Attorney Ralph Karpinos, Interim Finance Director Kay Johnson, Engineering Director George Small, Traffic Engineer Kumar Neppalli, Senior Long Range Planning Coordinator Chris Berndt, Senior Planner Phil Hervey, Planning Director Roger Waldon, Transportation Planner David Bonk, and Town Clerk Joyce Smith.

Item 1 - Ceremonies

a. Recognition of Orange-Chatham Alternative Sentencing.

Recognition of Orange-Chatham Alternative Sentencing was received by consensus of the Council.

b. Recognition of Orange Enterprises.

Kathy Bryan, Executive Director, explained that Orange Enterprises serves more than 100 people per day. Due to Mental Health reform, she said, such agencies will be required to provide services out in the community rather than in a segregated setting. To meet that challenge, Orange Enterprises will create their own job opportunities, Ms. Bryan said. She pointed out, however, that it was increasingly difficult to find work for those who are disabled.

Ms. Bryan stated that Orange Enterprises was beginning a landscaping business and a custodial business. She said their hope is that their clients will find work in some of the federal agencies in Research Triangle Park. Ms. Bryan stated that they had bid on custodial work at Estes School and at Jordan Lake. And, she added, they had submitted a couple of landscaping bids as well, and were assisting individuals who are interested in starting their own small businesses or who were looking for work in the community.

Ms. Bryan informed Council members that Orange Enterprises had been working with The Interfaith Council to develop a temporary employment agency to serve the homeless and those with employment barriers. They hope to be able to serve some Hispanics as well, she said. She described this as an exciting time and predicted that Mental Health reform would lead to better services and more options. Ms. Bryan thanked the Council for its ongoing assistance. Having such community support helps when Orange Enterprises applies for grants, she pointed out.

Ms. Bryan’s remarks were received by consensus of the Council.

Item 2.1a - Public Forum on Market Analysis Report for

Proposed Development of Town Parking Lots 2 and 5

Town Manager Cal Horton stated that the purpose of tonight's public forum was to receive comments on a market analysis report that the Council had commissioned as part of its consideration of the future development of Parking Lots 2 and 5 in Downtown Chapel Hill. He introduced Consultant John Stainback, of Stainback Public/Private Real Estate LLC (SPPRE) to summarize key items in a report prepared by subcontractor Economics Research Associates (ERA).

Mr. Stainback outlined various steps in the predevelopment process, from completing the market development demand analysis to beginning construction. He told Council members that SPPRE would solicit the developer, negotiate the agreement, and serve as the Town's representative during construction. Mr. Stainback explained that the SPPRE team included ERA, HKS Architects, DesignVision, Inc., and a local construction company that would help with cost estimating.

Shuprotim Bhaumik, representing ERA, stated that the five-part scope of work would include project orientation and data gathering, market overview, market analysis, case studies, and challenges that the Downtown faces. The data sources include a mix of national and local resources, he said. Citing the ERA report, Mr. Bhaumik noted a strong demand for 300 to 500 downtown rental apartments over the next five years. He said there would also be demand for up to 112,000 square feet of overall retail space. With improvements, Mr. Bhaumik said, the Downtown Carrboro-Chapel Hill area could accommodate up to 666,000 square feet of retail. He said that demand was concentrated in goods such as general apparel and home furnishings.

Mr. Bhaumik noted that the condo market was very active in the area due to the proximity of UNC and the low interest rates. There might be opportunities to create student housing, he said, adding that such housing would be geared toward students alone and would not be something that could be converted for other users later on. Mr. Bhaumik mentioned an opportunity for a small-scale food and convenience store. But there was not enough supportable demand for a large grocery store, he said. Restaurants and bars already were over-represented, Mr. Bhaumik remarked, adding that under-performing tenants should be replaced.

Population and spending projections indicate that the Downtown could support another movie screen, Mr. Bhaumik said, but there was no demand at the moment. He described the UNC Arts Common as a very ambitious project, and proposed smaller ones in Lots 2 and 5, which might include private galleries and design studios, for example. Mr. Bhaumik pointed out that parking would be critical to Downtown revitalization. He suggested ways to add parking that had worked in other towns. There was no real demand for office space over the next five years, he said. Mr. Bhaumik concluded his presentation with case studies of towns similar to Chapel Hill and listed various lessons learned.

Mr. Stainback outlined the following next steps in the process:

· Prepare building program.

· Complete urban design plans.

· Develop budget/finance models.

· Complete developer solicitation process.

· Negotiate development agreement.

Mr. Stainback noted that the Council would have flexibility at each stage to end negotiations. He described the process as a very systematic one that allows the Council much power and control over it.

Jan Sassaman, speaking on behalf of the Trustees of University United Methodist Church, expressed concern that the Town might embark on an action that would reduce the availability of public parking Downtown. He noted the many services that churches provide and pointed out that these activities require parking. Mr. Sassaman said that ERA had ignored the needs of Downtown church communities in its report. The Trustees were asking for assurance that redevelopment activities would not reduce the net proportion of parking spaces available for these public activities, he said. Mr. Sassaman also requested that at least one representative of the Downtown churches be invited to participate with other stakeholders in future discussions.

Transportation Board Member Robert Koontz stated that there were many examples throughout the country of successful downtown revitalization efforts. Those all have downtown housing and a pedestrian-friendly traffic and transportation system, he said, noting that the latter had not been emphasized enough in ERA's report. Mr. Koontz listed features that the Downtown should include, and stressed the need for a transportation transfer station. If designed properly, with some of the affirmation stores and shops, a transfer station would keep bus riders Downtown, he said. Mr. Koontz emphasized that a Downtown transfer station could substantially add to the common goal of a thriving Downtown.

Transportation Board Member George Cianciolo praised the idea of having condos Downtown. But he did not think that condos would provide enough residents to support the retail necessary for Downtown revitalization, he said. Mr. Cianciolo suggested that the Downtown become a destination for residents of Chapel Hill and surrounding communities, and he cautioned the Council to make sure there is adequate parking. He suggested increasing transit service and agreed with the Transportation Board's idea of having a centrally located transfer center. Mr. Cianciolo thanked the Town Council for putting the master transit plan and transfer center high on their priority list. He encouraged them to include studies of both in as much Downtown planning as possible.

Transportation Board Member Eleanor Howe recommended that Council members think in terms of transit growth when planning the future of the Downtown. People will ride the bus when it is not an unpleasant experienced, she said. Ms. Howe added that this would include having a transfer station where one can get out of the rain and snow, use the restroom, and get something to eat. She noted that a transfer facility would not have to be ugly. It could even be a draw in itself, Ms. Howe said, adding that it could have "incredible public art."

Vivian Olken, owner of The Inside Scoop, explained that she had moved to Chapel Hill from Palo Alto, California, which does not have a downtown movie theater. Ms. Olken said that she felt fortunate that Chapel Hill had two Downtown theaters, and noted that a third one might put the other two out of business. Ms. Olken suggested working instead to update the art theaters that the Town already has.

Ms. Olken explained that Palo Alto has free parking. And if people go overtime they get a ticket, she said. She stated that Stanford University has one of the most beautiful parking structures she had ever seen. There is no reason why a parking structure needs to be ugly, Ms. Olken pointed out. She also recommended that the Town develop a place where teens, particularly boys, could come together and “hang out.” Ms. Olken asked Council members not to price the Town so that goods and services will be too high for most of the populace.

Virginia Knapp, Associate Director of the Chapel Hill-Carrboro Chamber of Commerce, said that Chapel Hill had been doing things right regarding the Downtown and that continued success would depend on the Town, University and business community working together. The Chamber applauded the Council for making Downtown revitalization a high priority, she said, and encouraged the Council to act quickly on these recommendations, recognizing that it will require additional parking. In the meantime, said Ms. Knapp, the Council should improve signage in existing lots and decks. She urged Council members to consider local developers, noting that many had been nationally recognized for the environmentally sensitive projects they had completed in Chapel Hill and elsewhere.

Andrew Ross, representing the Chapel Hill Public Arts Commission, recommended creating world class architecture and public art at the transit center, and at other mixed-use structures around Town. One way to make Downtown a family destination, and not just for students, would be to make it a destination for the arts, he said. Mr. Ross noted that this means looking at publicly-supported art venues, such as a public gallery and a public performing arts space. Lots 2 and 5 were perfect for this, he said, adding that both would bring people Downtown. Mr. Ross pointed out that the Public Arts Commission did not have a good space to hold its events and projects.

Lynne Kane expressed interest in seeing the Town expand its tax base. This project, in particular, would help with the cost of living in Chapel Hill and would contribute to affordable housing, she said. Ms. Kane agreed that having a covered transfer station with indoor space would be appealing. Incorporating a coffee shop, book store, and retail shops would be useful and sounds like a good alternative to the village green idea that had previously been discussed, she said. She cautioned the Town not to try and replicate the Weaver Street area in Carrboro, since that was so close by. Ms. Kane agreed with others that the existing theaters should be supported, and she stressed the need for adequate parking.

Dale Bailey noted that UNC had begun closing the gates to many of its parking lots during the night. He suggested that the Town and University reach a cooperative agreement on sharing parking in the evening. That would keep visitors from feeling so clocked that they have a negative experience, Mr. Bailey said.

James Kelley said that living Downtown had been easier for him in 1990 when there were two grocery stores. It would help the environment, no matter how you looked at it, if people who live Downtown could walk to a grocery store, he said. Mr. Kelley proposed that nothing was more important than providing a grocery store to Downtown residents. A bus transfer station would also be accommodating, he said.

Mayor Foy pointed out that six Council members had met with Mr. Stainback for a couple of hours this afternoon prior to this meeting. So, he noted, the Council might already have asked all their questions.

MAYOR PRO TEM WIGGINS MOVED, SECONDED BY COUNCIL MEMBER WARD, TO RECEIVE AND REFER COMMENTS TO THE COMMITTEE ON LOTS 2 AND 5, THE MANAGER AND ATTORNEY. THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

Item 2.2 - Public Hearing To Consider Using Installment

Contract Financing for Major Renovations

a. To Consider Using Installment Contract Financing for Major Renovations: IFC Shelter, Town Hall Roof Repairs, Fire Stations 2 and 3, Chapel Hill Museum, and Town Tennis and Basketball Courts.

Acting Finance Director Kay Johnson explained that most of these projects had been completed. Fire Station 3 was being worked on, she said, and the Town would receive the bid tonight for The IFC Shelter. Ms. Johnson gave the total cost at $1,050,000. She proposed holding a public hearing on these items so that the Local Government Commission could consider them and the Town could finance them.

MAYOR PRO TEM WIGGINS MOVED, SECONDED BY COUNCIL MEMBER STROM, TO ADJOURN THE PUBLIC HEARING. THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

b. Consideration of a Resolution Authorizing the Filing of an Application for Approval of a Financing Agreement.

COUNCIL MEMBER WARD MOVED, SECONDED BY MAYOR PRO TEM WIGGINS, TO ADOPT R-1. 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 (2004-03-22/R-1)

WHEREAS, the Town of Chapel Hill, North Carolina desires to finance major renovations for the Inter-Faith Council Building (IFC), roof repairs for Town Hall, Fire Station #2, Fire Station #3, and the Chapel Hill Museum, and renovations to various Town tennis and basketball courts in an amount not to exceed $1,050,000 to better serve the citizens of the Town; and

WHEREAS, the Town desires to finance the Project by the use of an installment contract authorized under North Carolina General Statute Chapter 160A, Article 3, Section 20; and

WHEREAS, findings of fact by the governing body must be presented to enable the North Carolina Local Government Commission to make its findings of fact set forth in North Carolina General Statute Chapter 159, Article 8, Section 151 prior to approval of the proposed contract;

NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council, meeting in a regular session on the 22^nd day of March 2004, makes the following findings of fact;

l. The proposed contract is necessary and expedient in order to: take advantage of an opportunity to complete the major exterior repairs to the Inter-Faith Council Building (IFC); replace roofs at Town Hall, Fire Station #2, Fire Station #3, and the Chapel Hill Museum; and resurface various Town tennis and basketball courts (the “Project”) in a timely manner.

2. The proposed contract is preferable to a bond issue for the same purpose because timing is of the essence in order to begin the renovations promptly, and the amount of up to $1,050,000 is more than can be prudently raised from currently available appropriations, unappropriated fund balances, and non-voted bonds in a timely manner.

3. The cost of financing under the proposed contract is expected to be approximately the same as the cost of issuing general obligation bonds.

4. The sums to fall due under the contract are found to be adequate and not excessive for the proposed purpose.

5. The debt management policies of the Town are found to have been carried out in strict compliance with applicable law and will be continued in the future.

6. The increase in taxes necessary to meet the sums to fall due under the anticipated contract is estimated to be less than .3 cents per $100 valuation and is not deemed to be excessive.

7. The Town is not in default in any of its debt service obligations.

8. The attorney for the Town has rendered an opinion that the proposed Project is authorized by law and is a purpose for which public funds may be expended pursuant to the Constitution and laws of North Carolina.

NOW, THEREFORE, BE IT FURTHER RESOLVED that the filing of an application on behalf of the Town by the Manager, Finance Director, and Attorney with the North Carolina Local Government Commission for approval of the Project and the execution of the proposed financing contract and the taking of other actions to proceed with the Project not inconsistent with this resolution are hereby authorized, ratified and approved.

This the 22^nd day of March, 2004.

c. Award of Bid for Financing of Major Renovations.

COUNCIL MEMBER STROM MOVED, SECONDED BY COUNCIL MEMBER WARD, TO ADOPT R-2. THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

A RESOLUTION AUTHORIZING THE TOWN MANAGER TO EXECUTE A FINANCING CONTRACT FOR MAJOR RENOVATIONS ON THE INTERFAITH COUNCIL BUILDING (IFC), ROOF REPAIRS FOR TOWN HALL, FIRE STATION #2, FIRE STATION #3, AND THE CHAPEL HILL MUSEUM, AND RENOVATIONS TO VARIOUS TENNIS AND BASKETBALL COURTS FOR THE 2003-04 FISCAL YEAR (2004-03-22/R-2)

WHEREAS, the Town of Chapel Hill solicited and received competitive proposals from financial institutions for the this project; and

WHEREAS, Wachovia Bank offers the lowest total interest and principal cost of $1,213,345 for the 10-year term contract;

NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council authorizes the Town Manager to enter into a contract with Wachovia Bank on behalf of the Town for the financing of: major exterior repairs for the Interfaith Council Building (IFC); roof replacement for Town Hall, Fire Station #2, Fire Station #3, and the Chapel Hill Museum; and resurfacing of various Town tennis and basketball courts at a fixed interest rate of 2.92%.

BE IT FURTHER RESOLVED, that the Council does not reasonably expect that the Purchaser (and any subordinate entities) will issue more than $10,000,000 in qualified tax-exempt obligations pursuant to such Sections 265(b)(3)(ii) during the current calendar year.

This the 22^nd day of March, 2004.

d. Budget Amendment for Financing of Major Renovations.

COUNCIL MEMBER WARD MOVED, SECONDED BY MAYOR PRO TEM WIGGINS, TO ENACT O-1. THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

AN ORDINANCE TO AMEND “THE ORDINANCE CONCERNING APPROPRIATIONS AND THE RAISING OF REVENUE FOR THE FISCAL YEAR BEGINNING JULY 1, 2003” (2004-03-22/O-1)

BE IT ORDAINED by the Council of the Town of Chapel that the Budget Ordinance entitled “An Ordinance Concerning Appropriations and the Raising of Revenue for the Fiscal Year Beginning July 1, 2003” as duly adopted on June 9, 2003 and the same is hereby amended as follows:

ARTICLE I

Current Revised

APPROPRIATIONS Budget Increase Decrease Budget___

CAPITAL IMPROVEMENTS

PROGRAM FUND 2,079,823 1,050,000 3,129,823

ARTICLE II

Current Revised

APPROPRIATIONS Budget Increase Decrease Budget___

CAPITAL IMPROVEMENTS

PROGRAM FUND 2,079,823 1,050,000 3,129,823

This the 22^nd day of March, 2004.

Item 3 - Petitions by Citizens and Announcements by Council Members

3a(1). Petition from The Interfaith Council for Social Service (IFC) requesting that $30,000 Allocation from the Town be Continued for the Next Fiscal Year.

3a(2). Petition from The IFC requesting $15,000 from the Town to Help Defray the Costs of Relocation.

IFC President Natalie Ammarell explained that the request for $15,000 this fiscal year pertains entirely to expenses related to moving the shelter and community kitchen from the Old Municipal Building to host congregations and then back again after renovations. With regard to the $30,000 request, she explained that The IFC was still trying to make up for the loss of federal Homestart funds. They were also expecting a reduced contribution from The United Way, Ms. Ammarell explained, and foundations and individual donors had reduced their level of giving. Ms. Ammarell told Council members that The IFC had cut its budget by laying off employees. They would ask Orange County for funding and would return to The United Way once they understand that situation, she said. Ms. Ammarell stated that there was no other place for The IFC to cut without eliminating services.

Mayor Foy noted that the $15,000 request would have an impact on the Town's budget this year and the $30,000 would have an impact next year.

Council Member Greene asked if The IFC's reduction from The United Way was in proportion to other recipients' reductions. Ms. Ammarell replied that they had not yet heard specific numbers from The United Way. She believed, however, that Orange County had not received the level of cuts that others had received, she said.

Council Member Strom asked Ms. Ammarell to comment on the demand for IFC services. She replied that Community services, in particular, had continued to rise, adding that The IFC was serving 80,000 meals per year. They were beginning to see more families, she said, and also more Latinos. Ms. Ammarell added that the crisis intervention program was seeing more people and there was a continuing upward trend in demand for services.

Mayor pro tem Wiggins, verifying that Ms. Ammarell needed immediate feedback on her $15,000 request, asked Mr. Horton if the Town had that money available. Mr. Horton replied that it would come from the Council's contingency funds, which might have to be supplemented by an additional appropriation. Mayor pro tem Wiggins ascertained that the Manager preferred that the Council refer the request to the staff. Mr. Horton offered to bring a response back quickly.

Mayor Foy asked Ms. Ammarell when she needed the funds. Ms. Ammarell explained that The IFC was "front-ending the expense" and would be moving out of the Downtown building on April 10^th.

COUNCIL MEMBER WARD MOVED, SECONDED BY COUNCIL MEMBER STROM, TO RECEIVE AND REFER BOTH PETITIONS TO THE MANAGER AND ATTORNEY. THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

3a(3). Petition from The Siena Hotel Requesting Further Discussion on the Public-Private Partnership with the Town for Development of Pritchard Park.

COUNCIL MEMBER VERKERK MOVED, SECONDED BY COUNCIL MEMBER KLEINSCHMIDT, TO RECEIVE AND REFER THE PETITION TO THE MANAGER AND ATTORNEY. THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

3a(4). Petition from Bert Liverance on behalf of Chapel of the Cross Requesting, that the Area Along the South Side of East Franklin Street be Considered for Streetscape Improvements.

MAYOR PRO TEM WIGGINS MOVED, SECONDED BY COUNCIL MEMBER KLEINSCHMIDT, TO RECEIVE AND REFER THE PETITION TO THE MANAGER AND ATTORNEY. THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

3a(5). Petition from Diane Bloom Requesting Consideration that the Town Participate as an Underwriter of a Documentary Film, and Provide Funding.

MAYOR PRO TEM WIGGINS MOVED, SECONDED BY COUNCIL MEMBER WARD, TO RECEIVE AND REFER THE PETITION TO THE MANAGER AND ATTORNEY. THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

3a(6). Petition from Daneeda Hicks, for the Pine Knolls Community Center, regarding a request to use lots next to Pine Knolls for a recreation center.

Artist Daneeda Hicks, speaking on behalf of the Pine Knolls Community Center, asked the Town Council to consider converting lots adjacent to the Center to a recreational space for the community. She recommended building a walking trail around the outside of the lot, adding tennis and volleyball courts, and installing picnic tables, a grill, a water fountain, and a small shed for storing outdoor supplies.

COUNCIL MEMBER STROM MOVED, SECONDED BY COUNCIL MEMBER KLEINSCHMIDT, TO RECEIVE AND REFER THE PETITION TO THE MANAGER AND ATTORNEY. THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

3a(7). Deb Baldwin, regarding Crop Walk on March 28, 2004 at the Carrboro Town Commons.

Ms. Baldwin, coordinator for the 2004 Chapel Hill-Carrboro Crop Walk, invited all to join the walk to fight hunger and displacement here and around the world through Church World Service and The IFC. Two members of The IFC Striders presented Mayor Foy and Mayor pro tem Wiggins with Crop Walk tee shirts. Ms. Baldwin asked Council members to join the walk, noting that registration begins at 2:00 p.m.

The petition was received by consensus of the Council.

3a(8). Elaine Barney, regarding a request to include her suggestions in the discussion of OI-4. Ms. Barney explained that a couple of suggestions that she had made at a recent public hearing had not been included in the staff report regarding tonight's agenda item 13.

With regard to a previous OI-4 discussion, Ms. Barney submitted the following statement:

"This afternoon I contacted Mayor Foy to see if I might briefly comment on Agenda Item #13 (OI4 Ordinance) since my concern has to do with the omission of two suggestions of mine that were not included in the staff report from the March 1 forum and because I need to leave before that agenda item comes up.

Currently, the University has to show that it meets two findings or criteria to have a development plan (or modifications to the plan) approved by the Council. They are:

'Maintain the public health, safety, and general welfare' and 'Maintain the value of adjacent property.'

I had asked that a third finding be added: that the University’s plan/modifications comply with the Town’s Comprehensive Plan.

This not only would provide an incentive for UNC to comply with the Town’s Plan but, if the development plan or modifications do not comply with the Plan, provides a consequence for UNC.

Adding this third finding also honors the intention of the Comprehensive Plan and those who worked so long and hard on developing the Plan.

The second suggestion follows from the first: Include a section in OI4 that would establish public Town reviews of projects to see if the developers are adhering to the standards of the Comprehensive Plan as a way of protecting adjacent and near-by neighborhoods.

I hope these suggestions will be fully discussed when this agenda item comes up later this evening. Thank you."

MAYOR PRO TEM WIGGINS MOVED, SECONDED BY COUNCIL MEMBER STROM, TO RECEIVE AND REFER THE PETITION. THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

Mayor Foy noted that there had been much public interest in Item 14, which included three petitions by Council Member Kleinschmidt. Council Members agreed by consensus to move it forward to this point in the meeting.

Item 14 - Three Petitions from Council Member Mark Kleinschmidt

(1) A Petition to Expand the Protections Offered by Chapel Hill’s Non-Discrimination Policies.

Council Member Kleinschmidt explained that a member of the community had been denied access to bus service during the past year. This incident had been related to issues of gender identity and expression, he said. Council Member Kleinschmidt stated that the Town Manager and Transportation Department Director had responded appropriately and had made it clear that such denial of services was inappropriate and contrary to the goals of the community. But, Council Member Kleinschmidt said, his petition was to encode that sentiment. He petitioned the Council to add a provision to the Town's nondiscrimination policy that would protect people in situations where gender identity and/or expression might be implicated.

Council Member Kleinschmidt noted that a definition of "gender identity or expression" had been included in an attached memo from the National Gay and Lesbian Taskforce. Chapel Hill would be the first town in North Carolina to add this protection, he said, but pointed out that other jurisdictions across the country had done so. These include the state of Rhode Island and the cities of Atlanta, Baltimore and Philadelphia, as well as Multnomah County in Oregon and San Diego and West Hollywood, California.

(2) A Petition to Amend Chapel Hill’s Legislative Agenda.

Council Member Kleinschmidt explained that this would provide a mechanism through which the Town could recognize the marriage of same-sex couples where such marriages had been entered into legally in another jurisdiction. His petition asked for repeal of the State statute (the so-called "Defense of Marriage Act"), which defines marriage as between one man and one woman. It was likely that same-sex marriage would soon become legal in Massachusetts, he said, and a couple who had been married in Massachusetts might move to North Carolina. The Town does not have a mechanism by which it could recognize that couple's union, Council Member Kleinschmidt pointed out.

Council Member Kleinschmidt noted that the Town offers its employees spousal equivalent benefits. But, if you’re a same-sex couple, you have to "jump through hoops" to demonstrate the permanency of your relationship, he said. He pointed out that this can be insulting to people who have been together for many years, particularly if they have a legal marriage license. Council Member Kleinschmidt explained that his petition would ask the State of North Carolina to allow the Town to recognize same-sex marriages for whatever purposes the Town would ordinarily recognize a marriage license. This would include access to employee benefits as well as the Domestic Partner Registry, he said. Council Member Kleinschmidt stated that this would allow same-sex couples who have a marriage license to be treated on an equal basis with opposite-sex couples who are married.

(3) A Petition to Clarify Chapel Hill’s Non-Discrimination Policies to Change References to “Affectional Preference” to “Sexual Orientation.”

Council Member Kleinschmidt requested that the wording "affectional preference" in the Town's Non-Discrimination policy be changed to "sexual orientation." Perceiving sexual orientation as an option creates a huge obstacle to equality, he said. Council Member Kleinschmidt suggested that the Town "join the 21^st century" and use "sexual orientation" as most people do in this county.

Council Member Kleinschmidt asked that his first and third petitions be referred to the staff for a response. He requested that the second petition be added to the Council's legislative agenda to become part of the March public forum on legislative initiatives.

COUNCIL MEMBER KLEINSCHMIDT MOVED, SECONDED BY COUNCIL MEMBER STROM, TO RECEIVE AND REFER THE FIRST AND THIRD PETITIONS TO THE MANAGER AND ATTORNEY. THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

COUNCIL MEMBERS AGREED BY CONSENSUS TO REFER ITEM TWO TO BE ON THE AGENDA FOR THE MARCH PUBLIC FORUM ON LEGISLATIVE INITIATIVES.

Item 4 - Consent Agenda

Council Member Harrison removed 4d, Response to Petition Requesting Installation of a Traffic Signal at the Intersection of Sage Road and Erwin Road.

COUNCIL MEMBER STROM MOVED, SECONDED BY COUNCIL MEMBER HILL, TO ADOPT R-3 WITH 4D REMOVED. THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

A RESOLUTION ADOPTING VARIOUS RESOLUTIONS AND ORDINANCES (2004-03-22/R-3)

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

a.	Minutes of February 2, 9, 11, 16, 18, 20, and 23, 2004.
b.	Deleted.
c.	Acceptance of Grant for Camp Escapade (R-5).
d.	Removed.
e.	Removal of a Handicap Parking Space on Columbia Place West (O-2).
f.	Award a Bid for Renovation to the IFC Shelter (R-7).
g.	Award a Bid for Financing of Mobile Data Equipment for the 2003-04 Fiscal Year (R-8).
h.	Budget Amendment for Transit Capital Reserve (O-3).
i.	Budget Amendment for Traffic Signal System Software Upgrade and Traffic Impact Studies (O-4).
j.	Budget Amendment for Correction of Police Special Supplies Budget (O-5).
k.	Budget Amendment for Correction of Inspections Department Budget (O-6).
l.	Budget Amendment for Correction of Budget for 2004 Transportation Planning Grant (O-7).
m.	Expedited Treatment for Special Use Permit Application for Southern Community Park (R-9).
n.	Expedited Treatment for Special Use Permit Application for Homestead Park Aquatics Center (R-10).
o.	Report from the Naming Committee regarding Renaming of Airport Road as Martin Luther King, Jr. Boulevard (R-11).
p.	Expedited Treatment for Special Use Permit Application for the Softball Field Complex at the University of North Carolina at Chapel Hill (R-12).
q.	Budget Ordinance to Establish a Public Buildings Bond Fund (O-8).
r.	Acceptance of Sustainable Community Development Project Grant Award (R-13, O-8.1, O-8.2).
s.	Reimbursement Resolution Regarding Proposed Use of Public Building Bond Funds for the Sustainable Community Development Project Grant Local Match (R-13.1).

This the 22^nd day of March, 2004.

A RESOLUTION ACCEPTING A $5,000 GRANT FROM THE FRIENDS OF CHAPEL HILL PARKS, RECREATION, AND GREENWAYS; AUTHORIZING THE TOWN MANAGER TO INCLUDE THE GRANT IN THE MANAGER’S RECOMMENDED BUDGET FOR FY 2004-05; AND THANKING BOTH STROWD ROSES, INC. AND THE FRIENDS OF CHAPEL HILL PARKS, RECREATION, AND GREENWAYS (2004-03-22/R-5)

WHEREAS, the Council has implemented a community-based Therapeutic Recreation program for people with disabilities; and

WHEREAS, the community has expressed a desire for a summer camp to serve youth with disabilities in Chapel Hill and Orange County; and

WHEREAS, Strowd Roses, Inc. has offered to provide $5,000 for Camp Escapade through the efforts of the Friends of Chapel Hill Parks, Recreation, and Greenways;

NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council accepts a grant in the amount of $5,000 from the Friends of Chapel Hill Parks, Recreation, and Greenways for a summer camp to serve youth with disabilities in Chapel Hill and Orange County.

BE IT FURTHER RESOLVED that the Town Manager is hereby authorized to include the $5,000 grant and proposed expenditures in the Manager’s Recommended Budget proposal for FY 2004-05.

BE IT FURTHER RESOLVED that the Council expresses its gratitude to Strowd Roses, Inc. and the Friends of Chapel Hill Parks, Recreation, and Greenways for their efforts to fund Camp Escapade.

This the 22^nd day of March, 2004.

AN ORDINANCE AMENDING CHAPTER 21 OF THE TOWN CODE OF ORDINANCES REGARDING A PARKING SPACE RESERVED FOR HANDICAPPED INDIVIDUALS (2004-03-22/O-2)

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

Section 1. Section 21-36 of the Town Code “Parking space reserved for handicapped individuals” is hereby amended by deleting the following:

~~“(9) A parking space in the cul-de-sac portion of~~ ~~Columbia Place West~~ from a point approximately three hundred twenty four (324) feet west of the back-of-curb of Columbia Place Drive to a point three hundred forty four (344) feet west of the back-of-curb of Columbia Place Drive.”

Section 2. This ordinance shall become effective upon enactment.

This the 22^nd day of March, 2004.

A RESOLUTION ACCEPTING BIDS AND AWARDING THE CONTRACT FOR THE IFC SHELTER RENOVATION PROJECT (2004-03-22/R-7)

WHEREAS, the Town of Chapel Hill has solicited formal bids by advertisement in the February 6, 2004 edition of The Chapel Hill Newspaper and the February 5, 2004 edition of the Challenger Newspaper in accordance with G.S. 143-128 for the renovation of the IFC Shelter; and

WHEREAS, the following bids were received and opened on March 7, 2004:

Contractor	Bid
D.W. Ward	$342,582
Van Thomas	$384,000
Progressive	$397,600
Waddell	$403,444
O.C. Mitchell	$429,765
Midwest	$440,000
Hart Brothers	$539,000

NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Town accepts the bid of and awards the contract to the lowest responsive bidder, D.W. Ward Construction Company, Inc., general contractor, for the base bid in the amount of $342,582.

BE IT FURTHER RESOLVED that, because this project is a renovation of aging facilities and unexpected conditions may be discovered, the Town Manager is authorized to approve necessary change orders up to $107,418, but not to exceed the combined total project cost of $450,000, without additional approval from the Town Council.

This the 22^nd day of March, 2004.

A RESOLUTION AUTHORIZING THE TOWN MANAGER TO EXECUTE A LEASE-PURCHASE CONTRACT FOR THE MOBILE DATA EQUIPMENT PURCHASE FOR THE 2003-2004 FISCAL YEAR (2004-03-22/R-8)

WHEREAS, the Town of Chapel Hill solicited and received competitive proposals from financial institutions for the financing of ten mobile data terminals and the associated communications equipment and software for the Police Department; and

WHEREAS, SunTrust Leasing Corporation offers the lowest total interest cost of 1.98% for the 3-year term for the purchase of this equipment totaling $133,510;

NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council authorizes the Town Manager to enter into a contract with SunTrust Leasing Corporation on behalf of the Town for the financing of mobile data equipment totaling $133,510 at a fixed interest cost of 1.98% for a three-year term with total principal, interest and fees cost of $138,174.

BE IT FURTHER RESOLVED that the aforesaid contract by and between the Town of Chapel Hill, various State contract and other vendors, and SunTrust Leasing Corporation, together with the amounts to be paid thereunder, are hereby designated as qualified tax-exempt obligations of the Town of Chapel Hill for purposes of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended.

BE IT FURTHER RESOLVED that the Council does not reasonably expect that the Purchaser will issue more than $10,000,000 in qualified tax-exempt obligations pursuant to such Sections 265(b)(3)(ii) during the current calendar year.

This the 22^nd day of March, 2004.

AN ORDINANCE TO AMEND “THE ORDINANCE CONCERNING APPROPRIATIONS AND THE RAISING OF REVENUE FOR THE FISCAL YEAR BEGINNING JULY 1, 2003” (2004-03-22/O-3)

BE IT ORDAINED by the Council of the Town of Chapel Hill that the Budget Ordinance entitled “An Ordinance Concerning Appropriations and the Raising of Revenue for the Fiscal Year Beginning July 1, 2003” as duly adopted on June 9, 2003 and the same is hereby amended as follows:

This the 22^nd day of March, 2004.

AN ORDINANCE TO AMEND “THE ORDINANCE CONCERNING APPROPRIATIONS AND THE RAISING OF REVENUE FOR THE FISCAL YEAR BEGINNING JULY 1, 2003 (2004-03-22/O-4)

This the 22^nd day of March, 2004.

AN ORDINANCE TO AMEND “THE ORDINANCE CONCERNING APPROPRIATIONS AND THE RAISING OF REVENUE FOR THE FISCAL YEAR BEGINNING JULY 1, 2003” (2004-03-22/O-5)

This the 22^nd day of March, 2004.

AN ORDINANCE TO AMEND “THE ORDINANCE CONCERNING APPROPRIATIONS AND THE RAISING OF REVENUE FOR THE FISCAL YEAR BEGINNING JULY 1, 2003” (2004-03-22/O-6)

This the 22^nd day of March, 2004.

AN ORDINANCE TO AMEND “THE ORDINANCE CONCERNING APPROPRIATIONS AND THE RAISING OF REVENUE FOR THE FISCAL YEAR BEGINNING JULY 1, 2003” (2004-03-22/O-7)

This the 22^nd day of March, 2004.

A RESOLUTION DIRECTING EXPEDITED PROCESSING IN THE REVIEW OF THE SPECIAL USE PERMIT APPLICATION FOR THE SOUTHERN COMMUNITY PARK PROJECT (2004-03-22/R-9)

WHEREAS, the Town Council has received a petition from the Town Manager requesting expedited processing of a Special Use Permit application seeking approval of a new park on the south side of Town; and

WHEREAS, the proposal would satisfy a public purpose objective;

NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Town Manager is directed to expedite processing of a Special Use Permit application for the Southern Community Park project in a manner that will speed review without sacrificing breadth or depth of analysis.

This the 22^nd day of March, 2004.

A RESOLUTION DIRECTING EXPEDITED PROCESSING IN THE REVIEW OF A SPECIAL USE PERMIT MODIFICATION APPLICATION FOR THE HOMESTEAD PARK AQUATICS CENTER (2004-03-22/R-10)

WHEREAS, the Town Council has received a petition from the Town Manager requesting expedited processing of a Special Use Permit Modification application seeking approval of a new aquatics center; and

WHEREAS, the proposal would satisfy a public purpose objective;

NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Town Manager is directed to expedite processing of a Special Use Permit Modification application for the Homestead Park Aquatics Center in a manner that will speed review without sacrificing breadth or depth of analysis.

This the 22^nd day of March, 2004.

A RESOLUTION SCHEDULING A PUBLIC FORUM ON MONDAY, APRIL 19, 2004, TO DISCUSS AND RECEIVE PUBLIC COMMENT ON A PROPOSAL TO RENAME AIRPORT ROAD IN HONOR OF DR. MARTIN LUTHER KING, JR. (2004-03-22/R-11)

WHEREAS, the Council has received a request from the local chapter of the NAACP to consider renaming Airport Road within the Town limits in honor of Dr. Martin Luther King, Jr.; and

WHEREAS, the Council Naming Committee has evaluated this request and has determined that Airport Road could be renamed in honor of Dr. King according to State procedures established for renaming State roads; and

WHEREAS, the Council is interested in further discussion of this issue and in receiving public comment on the proposed renaming of Airport Road;

NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council herewith schedules a Public Forum at 7:00 pm on Monday, April 19, 2004, to discuss and to receive public comment on the proposed renaming of Airport Road in honor of Dr. Martin Luther King, Jr.

This the 22^nd day of March, 2004.

A RESOLUTION DIRECTING EXPEDITED PROCESSING IN THE REVIEW OF SPECIAL USE PERMIT APPLICATION FOR THE UNC SOFTBALL FIELDS COMPLEX AT THE UNIVERSITY OF NORTH CAROLINA AT CHAPEL HILL (2004-03-22/R-12)

WHEREAS, the Town Council has received a petition from the UNC Educational Foundation requesting expedited processing of a Special Use Permit application seeking approval of site changes associated with a proposed new team building and new restroom facilities; and

WHEREAS, the proposal would satisfy a public purpose objective;

NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Town Manager is directed to expedite processing of a Special Use Permit application for the UNC Softball Fields Complex in a manner that will speed review without sacrificing breadth or depth of analysis.

This the 22^nd day of March, 2004.

AN ORDINANCE ESTABLISHING A CAPITAL PROJECTS ORDINANCE FOR RENOVATIONS AND IMPROVEMENTS TO PUBLIC BUILDINGS FUNDED FROM 2003 BONDS (2004-03-22/O-8)

BE IT ORDAINED by the Council of the Town of Chapel Hill that, pursuant to Section 13.2 of Chapter 159 of the General Statutes of North Carolina, that the following capital project is hereby established for Public Buildings renovations funded from 2003 bonds approved by the voters in November 2003.

SECTION I

The capital projects as authorized by bond referenda approved in November 2003, and as determined by the Town Council, includes the capital costs of making energy efficient renovations to Chapel Hill public buildings.

SECTION II

The Manager of the Town of Chapel Hill is hereby directed to proceed with implementation of these projects within terms of funds appropriated here.

SECTION III

Revenues anticipated to be available to the Town to complete the project are as follows:

Bond Proceeds $500,000

Amounts appropriated are for the project as follows:

Public Building Renovations and Improvements $500,000

SECTION IV

The Manager is directed to report annually on the financial status of the project in an informational section to be included in the Annual Budget, and shall keep the Council informed of any unusual occurrences.

SECTION V

Copies of this ordinance shall be entered into the Minutes of the Council and copies shall be filed within 5 days of adoption with the Manager, Finance Director, and Town Clerk.

This the 22^nd day of March, 2004.

A RESOLUTION AUTHORIZING THE ACCEPTANCE OF A SUSTAINABLE COMMUNITIES PROJECT GRANT (2004-03-22/R-13)

WHEREAS, the State Energy Office and the N.C. Department of Administration have announced the Town has been awarded $91,200 in grant funds for conducting energy audits, developing a plan to establish an “energy bank,” and installing solar energy systems and energy efficiency improvements at Fire Station Number 1; and

WHEREAS, on May 12, 2003, at the request of the Council Committee on Sustainability, Environment and Energy, the Town Council authorized the Town to submit the application and pledged to provide the required 25 percent local match; and

WHEREAS, voters in November 2003 approved the issuance of $500,000 in energy efficiency bonds for use in projects similar in nature to those in the grant proposal;

NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council authorizes the Manager to accept the Sustainable Communities Project grant, to make all necessary assurances and to implement the program contained therein.

This the 22^nd day of March, 2004.

AN ORDINANCE TO AMEND THE CAPITAL PROJECTS ORDINANCE FOR PUBLIC BUILDINGS (2004-03-22/O-8.1)

BE IT ORDAINED by the Council of the Town of Chapel Hill that, pursuant to Section 13.2 of Chapter 159 of the General Statutes of North Carolina, that the capital projects ordinance for various capital projects funded from a variety of sources is hereby amended as follows:

SECTION I

The capital projects as authorized by the Town Council include building improvements funded from bonds for an energy efficiency building improvements.

SECTION II

The Manager of the Town of Chapel Hill is hereby directed to proceed with implementation of these projects within terms of funds appropriated here.

SECTION III

Revenues anticipated to be available to the Town to complete the project are as follows:

Current Budget Revised Budget

Bond Proceeds 500,000 500,000

Sustainable Community Development Project Grant 0 91,200

Transfer from General Fund 0 5,400

Total 500,000 596,600

SECTION IV

Current Budget Revised Budget

Energy Efficiency Projects 500,000 596,600

Total 500,000 596,000

SECTION V

SECTION VI

Copies of this projects ordinance shall be entered into the Minutes of the Council and copies shall be filed within 5 days of adoption with the Manager, Finance Director, and Town Clerk.

This the 22^nd day of March, 2004.

AN ORDINANCE TO AMEND “THE ORDINANCE CONCERNING APPROPRIATIONS AND THE RAISING OF REVENUE FOR THE FISCAL YEAR BEGINNING JULY 1, 2003 (2004-03-22/O-8.2)

This the 22^ndday of March, 2004.

A RESOLUTION DECLARING OFFICIAL INTENT TO REIMBURSE EXPENSES OF CAPITAL RENOVATION PROJECT WITH PUBLIC BUILDINGS BOND FUNDS (2004-03-22/R-13.1)

WHEREAS, the Town has determined that Fire Station #1 needs major energy efficient renovations and repair; and

WHEREAS, the Town of Chapel Hill desires to make energy efficient renovations to Fire Station #1 through use of bond proceeds for the local match for capital repairs covered in part by a grant; and

WHEREAS, in November 2003, Chapel Hill voters approved $500,000 in General Obligation bonds for energy efficient building improvements;

NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Town Manager is authorized to use Town of Chapel Hill 2003 Public Buildings bond funds for the local match for the Sustainable Community Development Project Grant for energy efficient capital improvements to Fire Station #1 in an amount not to exceed $17,400.

This the 22nd day of March, 2004.

With regard to 4d, Council Member Harrison thanked the Manager and staff for their response. He asked the staff to look into having a crosswalk placed there now that the intersection had a signal.

COUNCIL MEMBER HARRISON MOVED, SECONDED BY COUNCIL MEMBER STROM, TO ADOPT R-6. THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

A RESOLUTION REQUESTING THAT THE NORTH CAROLINA DEPARTMENT OF TRANSPORATION INSTALL A TRAFFIC SIGNAL AT THE INTERSECTION OF SAGE ROAD AND ERWIN ROAD (2004-03-22/R-6)

WHEREAS, the Council received a petition from a citizen requesting the installation of a traffic signal at the intersection of Sage Road and Erwin Road; and

WHEREAS, the Town conducted a traffic signal warrants analysis at the intersection of Sage Road and Erwin Road in conjunction with development applications proposed in the area; and

WHEREAS, the Manager has reviewed the analysis data and believes that a traffic signal is warranted and necessary at this intersection; and

WHEREAS, the Council concurs with the Manager’s recommendation and believes that a traffic signal should be installed as soon as possible at the intersection of Sage Road and Erwin Road to improve the safety and efficiency of the intersection;

NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council requests that the North Carolina Department of Transportation install a traffic signal as soon as possible at the intersection of Sage Road and Erwin Road.

This the 22^nd day of March, 2004.

Item 5 - Information items.

(Any item may be removed for separate discussion at the end of the Council meeting.)

a. Response to Request for the Installation of Stop Signs on Curtis Road at its Intersection with Lyons Road (O-9 not recommended).

b. Response to Petition Requesting the Installation of Flashing Lights in the School Speed Limit Zone on Smith Level Road Adjacent to Frank Porter Graham Elementary School

c. Response to Petition Requesting Placing a Conservation Easement on Town-Owned Open Space.

d. Response to Petition from the Bicycle and Pedestrian Advisory Board Requesting Installation of Traffic Signal Activation Loops for Bicycles at Signalized Intersections.

e. Status Report on Parking Study.

f. Historic District Commission’s Response to Petition Regarding Local Landmark Designation Ordinance.

g. Report on Airport Gardens Public Housing Rehabilitation Contract Bid Award.

Council Member Greene removed 5c, Response to Petition Requesting Placing Conservation Easement on Town-Owned Open Space. She requested that more detail be brought back to the Council for discussion and so that Johnny Randall and others might respond. Council Member Greene noted that this was a request that the Town put land under permanent easement. She pointed out that the staff's responses were the same that the University could make if/when the Town asks that a large portion of the Horace Williams property be put under conservation easement. Council Member Greene noted the potential dichotomy associated with the Town asking UNC to put something under conservation easement while being unwilling to do so itself.

Mayor Foy asked Council Member Greene how she would like to proceed. She suggested scheduling the item to come back at a later meeting for a decision on whether to direct the staff to give a conservation easement, or not, or to do something else. Council Member Greene proposed possibly crafting an easement that would allow for contingencies. She acknowledged being in favor of a conservation easement here if the Town could figure out how to make it work.

Mayor Foy clarified that Council Member Greene wanted this brought back as an agenda item. He suggested including a sample conservation easement so that all would understand what that looks like as a document.

Council Member Harrison stated that he had made several phone calls trying to determine who could hold this easement, since the Town cannot do so on its own property. Mr. Randall had told him it would be either the Botanical Garden Foundation, in the case of Morgan Creek, or Orange County, he said. Council Member Harrison pointed out that this could get complicated, since Orange County and The Botanical Garden Foundation would have to agree. He asked that this issue be explored before it comes back. Johnny Randall had asked to speak on this when it comes back in late April, said Council Member Harrison. He remarked that the key principle was that the easement has to be held by someone other than the property owner.

Mayor Foy explained that he had read the Town Attorney's memo as saying that a body such as the School Board could condemn an easement, if you are a local government. Mayor Foy agreed that there was much to discussed about what the Town should do, how it should do it, and whether it is equitable to ask the University to do it if the Town does not do.

Council Member Greene requested background information on the Greene Tract easement.

INFORMATION REPORTS WERE RECEIVED BY CONSENSUS OF THE COUNCIL.

Council Member Ward noted a more general issue associated with the one above. In this case, the petitioner had not been aware of the date the staff would submit a response, he said. He asked that the petitioner be given an opportunity to address the staff's concerns. Mr. Horton explained that such a process and practice already was in place and apologized for the error in this case. The staff routinely sends notices to petitioners by email, telephone, or written notes, he explained. Mr. Horton said that he and the Town Attorney had been the staff on this reply. They were not as good about such things as their other staff, he said.

Item 6 - Air Quality Presentation by Sig Hutchinson

Mayor Foy told Council members that he had heard a presentation by Sig Hutchinson at a monthly regional mayors meeting. The presentation had addressed what Wake County had done to deal with air quality issues, he explained. Mayor Foy said that he thought it would be helpful for the Council to hear the report and see what that neighboring county is doing.

Mr. Hutchinson, Chair of the Air Quality Task Force for Wake County, explained that the pollutants of most concern to this region were ground level ozone (volatile organic compounds, which come mainly from trees, plus nitrogen oxide [NOx] from diesel engines, plus heat, plus sunlight) and fine particulate matter [PM]. There is no level of ozone exposure that is not detrimental to health, he said, displaying a graph showing that a higher ozone level leads to increased hospital admissions for respiratory problems. Mr. Hutchinson said that the health effects of ozone were irritated airways, inflammation, impaired lung defenses, and increase hospital admissions. There is emerging evidence that it leads to premature mortality in the elderly, asthma in children, and increased school absenteeism, he said. Mr. Hutchinson told Council members that the groups most at risk were children, adults who were active outdoors, senior citizens, people with lung impairment, and people who are sensitive to ozone.

Mr. Hutchinson explained that PM includes dust, dirt, soot and smoke. There is increasing evidence that particles that are 2.5 microns or less are the dangerous ones, he said, explaining that these particles irritate and inflame airways, decrease lung functions, create asthma attacks, and cause bronchitis. Mr. Hutchinson explained that PM also affects the heart. It does this by changing heart rate, causing cardiac arrhythmia, and leading to heart attacks, he said. Mr. Hutchinson added that lung cancer deaths, infant mortality, and developmental problems were being associated with PM.

Mr. Hutchinson informed the Council that on April 15, the Triangle area would move into a "non-attainment for ozone" category by EPA standards, and will only barely comply for PM. He stated that there were "hot spots" that should be of definite concern, such as children riding on school buses using diesel fuel.

Mr. Hutchinson said that the Task Force's goals were to comply with the National Ambient Air Quality Standards by 2007 and to eliminate all ozone action days for the region. He explained that the Task Force had recommended 43 strategies, under 13 categories, for government, businesses, and individuals. Diesel buses can be significantly cleaned up, Mr. Hutchinson pointed out, noting that biodiesel fuel such as Chapel Hill is using, can clean up the PM, as can mufflers on buses.

Mr. Hutchinson explained that Wake County had asked the Task Force to put the 43 strategies through various filters and determine how to get the greatest benefit with the least amount of effort. He explained that Wake County had put the resulting six strategies into an immediate implementation plan that had been approved by the Wake County Commissioners in January 2004. The six strategies were:

· Participate in Air Awareness Program (already implemented).

· Participate in Triangle Clean Cities Coalition (already implemented).

· Continue Regional Collaboration.

· Become a Best Workplace for Commuters.

· Purchase hybrid and alternative fuel vehicles for Wake County fleet.

· Reduce harmful emissions from Wake County Public School System buses.

Mr. Hutchinson stated that Wake County had been actively working with Durham and Orange Counties to begin dealing with this on a regional basis. The private sector is engaged and had worked with the Division of Air Quality to come up with a report that they would present at a press conference on April 12, 2004, he said. At the press conference, they will tell citizens that they recognize the problem and are beginning work on a regional basis to address the issues, Mr. Hutchinson said.

Council Member Verkerk asked what Wake County was doing to reduce emissions from school buses. Mr. Hutchinson explained that Durham County was purchasing biodiesel fuel. But, due to the cost issue, Wake County was not doing that, he said. Rather, Wake County had been looking at retrofitting mufflers, at a cost of about $1,500 per bus, he said. They were looking for sponsors or grants to upfit the older buses over time, Mr. Hutchinson explained.

Council Member Verkerk expressed concern that the problem had been "off the radar" for school boards and that the Council had no control over that. Mr. Hutchinson noted that there were efforts being made to inform schools systems that this is a very serious problem. He commented that the catalytic converter is effective with automobiles. But it takes 3-5 minutes for that to heat up to the point where it actually does some good, he said, and the automobile causes the most pollution during the first few minutes. Stopping the short trips would have a beneficial impact, Mr. Hutchinson pointed out.

Council Member Harrison stated that he was glad that the Durham County School System was purchasing biodiesel buses, noting that the worst pollution on his street each day comes from Durham County school buses. Referring to his memo to the Council regarding Mecklenburg County's air pollution control program, he explained that Mecklenburg County wanted to require all businesses with more than 20 employees to develop plans to reduce or delay nitrogen oxide emissions on Code Red or Orange days. Council Member Harrison summarized his memo, and emphasized that Mecklenburg County was asking for permission from the state to do this. He asked if Wake County had done anything similar.

Mr. Hutchinson replied that Wake County definitely was not that far along. The business community was in the process of forming a regional air quality advisory board, he said, and the commission chairs were working together. This is not just Wake, Orange and Durham Counties, Mr. Hutchinson said, but it includes eight counties that fall under non-attainment.

Council Member Ward asked how significant small engines were. Mr. Hutchinson replied that an hour of running a lawn mower is the equivalent to 200 miles in the automobile. But, in the grand scheme of things, they are not that significant given the amount of time they run, he pointed out.

Mayor Foy asked how reductions of NOx emissions are achieved with diesel engines. Mr. Hutchinson replied that having a muffler helps, adding that real diesel engine standards would not come into play until 2007. When you think about how long these things last the buses will be around a long time, he said.

Mayor pro tem Wiggins asked if there was any reason to be optimistic that the Attorney General would succeed in getting the EPA to enforce higher emissions standards for industries in surrounding states. Mr. Hutchinson replied that he did not know what the EPA would do. But, NOx from power plants, known as point source pollution, is not a big factor in the Triangle, he said. Mr. Hutchinson commented that any success the Attorney General might have would benefit the Triangle less than other areas in the State.

Council Member Hill wondered if the cost/benefit analysis had found that it was cheaper to have dirty air. Mr. Hutchinson replied that it was hard to determine exactly what the impact was. But they know that there are economic as well as health components to dirty air, he said.

Mayor Foy asked, with regard to Strategy 7 on page 33 of the Council's packet, what "heat island initiative" and "Cool Cities Program" meant. Mr. Hutchinson explained the idea of cooling cities off with more trees and rooftop gardens. And using less electricity means less point source pollution, he said.

Council Member Kleinschmidt noted that there was further explanation on page 28. Mayor Foy pointed out that Chapel Hill voters had approved a bond for energy conservation last fall.

Item 7 - Report on the Horace Williams Citizens Committee regarding

Principles, Goals and Strategies for the Horace Williams Property

Long Range Planning Coordinator Chris Berndt stated that this report culminates a year of hard work by the Horace Williams Citizens Committee and the Town Council. She noted the attached summary of citizen comments from a March 1, 2004, public forum and said that the staff had highlighted key issues. Ms. Berndt said that tonight's resolution would accept the Committee's report and authorize the Mayor to transmit it to the University. .

Horace Williams Citizens Committee Chair Randy Kabrick pointed out that the Council had charged the Committee with creating principles, goals and strategies, but had not charged it with developing plans for Horace Williams. He noted that the Committee had focused on developing foundational principles that the Town could build on. This was a great starting place for the Town to build a collaborative process with UNC, Carrboro and other non-government organizations in defining and shaping the Horace Williams tract and Carolina North, he said. Mr. Kabrick urged Council members to accept the plan, as revised, and to use it as a starting place for negotiations with UNC. He recommended not focusing on plans the University has developed that do not have these foundational principles in place.

Elaine Barney, speaking on behalf of the Coalition of Neighbors Near Campus (CNC), asked the Council to adopt the principles, goals and strategies developed by the Horace Williams Citizens Committee. She also asked the Council to recognize in their resolution that this is just the beginning of the Council's work and that these recommendations need to be filled in by the Council. Ms. Barney gave several illustrations of areas that needed work, and noted that considerable discussion could take place on principle three alone:

¨ What is the current state of the Town's resources, including water and sewer capacity, air quality, stream quality, fire and police capability? How do you determine that?

¨ Who would be the information gatherers to foster this discussion?

¨ And, when presented, would it be understandable to the citizenry?

Ms. Barney noted that the fiscal equity section, development management principles, water and sewer-stormwater management-air quality principles, and neighborhood-community interface principles all require additional work by the Council to be meaningful. She asked Council members to add a clause directing the Council to carefully review each recommendation to determine which ones need further work and how to go about doing that. Ms. Barney implored Council members not to rush into any process without first doing this additional work.

Environmental Engineer Barnes Bieruk mentioned a "strategic environmental assessment" (a.k.a. "programmatic environmental assessment") approach, which he said is an established process for evaluating the impacts of a strategic action, policy plan, or program on the environment or on sustainability. This is a process for working collaboratively before decisions are made, he said, noting that it differs from an environmental impact statement, which is usually done after environmental decisions have been made.

Mr. Bieruk explained that the approach would involve UNC and the Town reaching a consensus at the start and evaluating environmental impacts over time. He noted that one way this might be in UNC's interest is that potential faculty might not want to come to Chapel Hill if they hear about a plan for 17,000 more parking spaces when they're already in a traffic jam. This is a tool through which everyone agrees that the plan would enhance the quality of life in Chapel Hill and could not degrade it, he explained. Mr. Bieruk stated that there were consultants who could help with this, adding that he is not one of them. He said that he had gained an appreciation for this process over the years.

Bob Durovich encouraged the Council to spend time reviewing the Committee's report. The Council works very hard and their efforts often exceed the available time, he pointed out. But Mr. Durovich stressed that this was a crucial time for Chapel Hill. The decisions the Council makes over the next year will have a profound effect on the Town for generations to come, he said. Mr. Durovich encouraged the Council to take the time to get the information they need to make the right decisions in this case.

COUNCIL MEMBER VERKERK MOVED R-14, AND COUNCIL MEMBER STROM SECONDED.

Mayor Foy suggested forwarding the report to the UNC Board of Trustees as well as to the Chancellor. Council Members agreed. Mayor Foy asked Mr. Horton how the Town might handle Mr. Bieruk's suggestion for a process. Mr. Horton suggested referring it to the staff for further research and a report. Or, they could refer it to the Horace Williams Citizens Committee for consideration, Mr. Horton said.

Mayor Foy commented that this was a suggestion for a process that was different from the principles the Council was addressing tonight.

Council Member Verkerk urged the Council to pursue Mr. Bieruk's suggestion.

Council Member Ward recommended referring it to the staff.

Council Member Verkerk proposed referring it to the Horace Williams Committee as well.

Council Member Greene noted that Ms. Barney's had suggested that the Council gather further information. She wondered if that should be forwarded to the Horace Williams Committee or to the three Council members who were on that Committee.

Council Member Hill stated that Ms. Barney had made good points. He suggested referring them to the staff, but expressed reservations about referring it to the Committee.

Mayor Foy remarked that the question was what to do next, now that the Town had the Committee's recommended principles. "To further confuse things," he said, Agenda Item 7b is a letter from the Chancellor telling the Town that the Carolina North proposal would be presented to the Trustees this week. And, the Chancellor hoped to present their plans to the Town Council anytime after that meeting, said Mayor Foy. He pointed out that the Council does not yet know if the University's proposal takes all of the Committee's principles into account.

Council Member Kleinschmidt said that he agreed with Ms. Barney's comments. The Committee's report seems to expect that the Town would do more before assessing a proposal from UNC, he said.

Mayor Foy concurred, but noted that the Council must recognize that UNC's plan was marching forward. The Town tells other developers to bring a concept plan as early as possible so that the Council can respond to it and discuss important issues at a time when it's not too late, he pointed out.

Council Member Kleinschmidt repeated his view that there were things the Council needed to do first.

Mayor Foy reiterated that the Council had not yet made any formal comments to UNC about Carolina North. For example, what about that road that cuts through the middle of the property, he asked. What about 17,000 or however many thousand, parking spaces? Mayor Foy expressed concern that a formal application would come forward in September. He did not want to confront a situation where there would be developer-applicant-Council wrangling because the Council was not prepared, he said.

Council Member Kleinschmidt stated that he was trying to address what the Town should do next to be in a position to adequately address what the University brings forward.

Mayor pro tem Wiggins proposed a friendly amendment saying: "Be it further resolved that the Council will carefully review each of the recommendations to determine which ones need further work and how to go about doing so." If the Council adopts that, she said, then they can talk about a process, which might include what Mr. Bieruk had suggested. They would have passed the principles, goals and strategies and sent them on to the Chancellor and Board of Trustees, and, at the same time, committed themselves to doing the work that Ms. Barney had suggested, Mayor pro tem Wiggins said.

Mayor Foy ascertained that Council Member Strom accepted that amendment. Council Member Strom stated that he accepted it, understanding it to say that the Town Council commits itself to following up on the questions posed in Ms. Barney's petition.

COUNCIL MEMBER VERKERK MOVED, SECONDED BY COUNCIL MEMBER STROM, TO ADOPT R-14, AS AMENDED TO SAY: BE IT FURTHER RESOLVED THAT THE COUNCIL WILL CAREFULLY REVIEW EACH OF THE RECOMMENDATIONS TO DETERMINE WHICH ONES NEED FURTHER WORK AND HOW TO GO ABOUT DOING SO," AND TO REFER THE HORACE WILLIAMS CITIZENS' COMMITTEE REPORT TO THE UNC BOARD OF TRUSTEES. THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

A RESOLUTION ACCEPTING PRINCIPLES, GOALS AND STRATEGIES FOR THE HORACE WILLIAMS PROPERTY (2004-03-22/R-14)

WHEREAS, the Council established the Horace Williams Citizens Committee in October 2002, to develop a set of principles to guide the Council’s deliberations with the University of North Carolina at Chapel Hill regarding the future development of the Horace Williams property (Carolina North); and

WHEREAS, on October 8, 2003, the Committee submitted to the Council its report, “Recommended Principles, Goals and Strategies for Guiding the Development of the Horace Williams Property (Carolina North);” and

WHEREAS, the Council received comments on the report from citizens at the October 27, 2003, public forum, from Advisory Boards and from Town staff and discussed the report at work sessions on November 17 and November 24, 2003; and

WHEREAS, the Council received a revised draft report on January 28, 2004, and held a Public Forum on March 1, 2004;

NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council accepts the report, “Principles, Goals and Strategies for the Horace Williams Property,” for use as a guide in future discussions with the University of North Carolina at Chapel Hill.

BE IT FURTHER RESOLVED that the Council authorizes the Mayor to transmit the report to the Chancellor and to each member of the Board of Trustees of the University of North Carolina at Chapel Hill.

BE IT FURTHER RESOLVED that the Council will carefully review each of the recommendations and questions, including those presented by the two petitioners at the March 22^nd meeting, to determine which ones require further work and a process to perform that work.

This the 22^nd day of March, 2004.

Mayor pro tem Wiggins suggested that the Council talk about a process for carefully reviewing the recommendations and determining which ones need further work. Council Member Strom agreed with Council Member Hill's earlier comment that sending Ms. Barney's suggestions back to the Committee would not be the right move, he said. He recommended sending it to the staff and asking them to organize and comment on it for the next meeting, if possible. The Council could then get a better sense of what work needs to be done and the appropriate body to do that, said Council Member Strom. And then the Council would need to decide what role the Horace Williams Committee would have in the process, he said.

Mayor Foy ascertained from Mr. Horton that the staff could prepare an estimate of work that needs to be done. Mayor Foy asked if the staff would be recommending outside experts. Mr. Horton pointed out that Ms. Barney had just presented the petition tonight. He had not yet had enough time to comment on the specifics of what the staff might propose, he said.

COUNCIL MEMBER STROM MOVED, SECONDED BY COUNCIL MEMBER VERKERK, TO REFER ALL COMMENTS AND MS. BARNEY'S PETITION TO THE MANAGER FOR ANALYSIS TO BE RETURNED TO THE COUNCIL AS SOON AS POSSIBLE. THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

b. Letter from Chancellor Moeser regarding a Revised Plan for Carolina North.

Mayor Foy commented that sending the Committee's report certainly is a response to the Chancellor's letter.

Council Member Kleinschmidt suggested adding a summary of what the Council had done tonight and saying that they would be ready to engage on the issues after they receive a report back from the Manager about additional work that needs to be done.

Council Member Hill said that it seemed premature to do anything beyond what they had done. He suggested waiting to see how the Trustees react to the Committee's report. Council Member Hill noted that there had been a history of false starts, and proposed that waiting a while would do no harm. The Council's actions tonight were substantive, he said, and the trustees know a lot more about the Council's input from citizens and public officials when they get the report.

Council Member Verkerk questioned if other Council members wanted to pass Mr. Bieruk's proposal on to UNC as something they are looking at.

Mayor Foy proposed telling UNC instead that the Town was eager to develop a process and was considering various ways that might be done. Mr. Bieruk's proposal was one possibility, he said, but there were other possible ways to set in place a process that would benefit both parties.

Council Member Strom agreed, and suggested including in the letter to the Chancellor that the Town was keeping the Horace Williams Citizens Committee intact and considering how to best use them in the process.

Council Member Greene wondered if there were things the Town could do with the Committee's report beyond sending it to the Chancellor and Trustees. Perhaps they could publish it in the newspaper, she said.

Mayor Foy verified with the Manager that the Town's new Town Information Officer would begin work on April 5, 2004. He expressed support for Council Member Greene's idea, but suggested disseminating it in a way that "would not bore everyone to death." Mayor Foy proposed asking the Town Information Officer to help facilitate getting this report out to the public. Mr. Horton agreed to do so.

Mayor pro tem Wiggins asked if the Council wanted to schedule a meeting to receive a presentation by UNC after March 25, 2004.

Mayor Foy verified that Council members did not want to do so.

Mayor pro tem Wiggins asked them, "why not?" She was curious, she said, and wanted to know where UNC was in the process. Mayor pro tem Wiggins pointed out that Council members did not have to comment. It could be for information only, just as the Chancellor had written that it would be for the Trustees, she said.

Council Member Greene agreed, adding that she would rather hear it directly from UNC than read about it in the newspapers.

Mayor Foy asked if an "information only" meeting meant that the Council would just sit and be quiet. Mayor pro tem Wiggins replied that they could ask questions for clarification.

Council Member Harrison expressed support for the idea, adding that he had declined to give his opinion to reporters on this issue because he only knew what he had read in the papers.

Council Member Kleinschmidt agreed that the Council should hear the presentation, but make it clear that they would not take any action in response to it.

Mayor Foy determined that there was no objection to setting up a time for such an information session. This would be part of the Council's response to the Chancellor's letter, he said.

Item 8 - Draft Durham-Chapel Hill-Carrboro

2006-2012 Regional Transportation Priority List

Senior Transportation Planner David Bonk explained that the regional priority list had been ranked based on characteristics and benefits of the projects. The Transportation Advisory Committee (TAC) had released a draft of that priority list, he said, and the Council had it before them tonight for comment.

Mr. Bonk stated that the TAC would take action on a final priority list in April and would forward the list to the NC Department of Transportation (NCDOT) for their use in developing the State Transportation Improvement Program (TIP). A public hearing had been held a couple of weeks ago, Mr. Bonk said, and the TAC had directed the staff afterward to revise the list to accommodate an increase in emphasis on bike/pedestrian and public transit projects.

Mr. Bonk recommended that the Council make comments to the TAC on the general process and the use of ranking criteria, specifically with regard to several Chapel Hill projects. The Town Council's priority had emphasized public transit capital improvement projects and funding for the signal system to be upgraded and improved, he said. Mr. Bonk noted that the staff was recommending that points be given to the signal system project for categories that had been omitted during the original evaluation. This would dramatically increase the standing of that project on the priority list, he said. Mr. Bonk added that the TAC had directed the staff to increase the priority ranking of that project as a result of comments they received at the public hearing a couple of weeks ago.

Mr. Bonk noted that Table 3 in the Council’s materials assessed the status of Chapel Hill's priority projects with regard to the way the original draft regional list had evolved. He noted that Chapel Hill had fewer projects then and that none were in the top ten. This was because the TAC had tweaked the ranking criteria in a manner that favored roadway projects, he said. Mr. Bonk stated that the TAC should re-evaluate that ranking criteria and attempt to rectify that imbalance.

Council Member Harrison asked Mr. Bonk to convey what a NCDOT member had said at a March 10^th TAC hearing. Mr. Bonk explained that a TAC board member had mentioned correcting some inequalities between larger and some smaller municipalities. The member had implied that two Hillsborough projects would be funded even though that would not be consistent with the urban areas priority list, Mr. Bonk explained.

Council Member Harrison stated that there already was a problem with priority setting in the region without that attitude being added to it. Credit was not being given to the kind of projects that Chapel Hill has, he said, noting that Chapel Hill's projects are almost entirely bicycle and pedestrian projects. These lose points because they are assigned "environmental impact" since they are expanses of road pavement, Council Member Harrison said. He suggested that the Town Council make a statement that the priority system needs to be worked on right now to address Chapel Hill's type of projects.

Council Member Strom noted that the Town had talked about applying economic development points for the Downtown as redevelopment points. They had talked a little bit about reduction of sprawl and how things that impact sprawl could lose or gain points, he said. Council Member Strom asked Mr. Bonk if it would be helpful to add any of those comments to the resolution. Mr. Bonk replied that it couldn't hurt to reinforce that for the TAC. The economic development factor already was part of the criteria, he said, adding that the question was how to apply it. Mr. Bonk stated that the issue of sprawl would require developing a new category and process to evaluate the effects. Council Member Strom verified that Mr. Bonk was in the process of re-evaluating the ranking system.

Council Member Greene questioned the regional priority ranking of various greenways systems, noting that Morgan Creek was #78, far lower than others. Mr. Bonk explained that only some of the criteria could be applied to greenway projects. A greenway can never get points for safety, for example, or for a national highway system or congestion relief, he said. Mr. Bonk stated that the system does not allow greenways to compete evenly with some of the other projects. He noted, however, that Table 2 on page 3 lists the manner in which the TAC had provided some projects with funding from the Transportation Direct Allocation Program. The Morgan Creek Greenway had been given $640,000 for construction in fiscal year 2007, in an effort to rectify the inequity in the State system, Mr. Bonk explained.

Council Member Ward asked who determines whether a project in that category receives points or not. Mr. Bonk explained that each jurisdiction submits a list in which they apply points that they see as appropriate. Then the TAC staff will get together as a group and modify that, he said. Council Member Ward suggested that there could be a rationale for greenways to receive congestion points. But Mr. Bonk replied that the way it had historically been defined would not allow that.

COUNCIL MEMBER STROM MOVED R-15 WITH AN AMENDMENT TO ADD "AND SPRAWL REDUCTION" TO THE END OF THE SECOND BULLET. COUNCIL MEMBER WARD SECONDED.

Council Member Harrison ascertained from Mr. Bonk that increased traffic on some secondary roads could be considered a criterion along with connectivity and locations with higher concentrations of population. Council Member Harrison suggested saying, "locations on road corridors experiencing the highest rates of traffic increase." Council Member Strom and Ward accepted the amendment.

COUNCIL MEMBER STROM MOVED, SECONDED BY COUNCIL MEMBER WARD, TO ADOPT R-15, AS AMENDED TO ADD "AND SPRAWL REDUCTION" TO END OF THE SECOND BULLET, AND “LOCATIONS ON ROAD CORRIDORS EXPERIENCING THE HIGHEST RATES OF TRAFFIC INCREASE” UNDER THE LAST BULLET. THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

A RESOLUTION PROVIDING RECOMMENATIONS TO THE DURHAM-CHAPEL HILL-CARRBORO TRANSPORTATION ADVISORY COMMITTEE ON THE DRAFT 2006-2012 REGIONAL TRANSPORTATION PRIORITY LIST (2004-03-22/R-15)

WHEREAS, the Durham-Chapel Hill-Carrboro Transportation Advisory Committee has prepared a draft 2006-2012 Regional Transportation Priority List; and

WHEREAS, the Transportation Advisory Committee has opened a public comment period on the Draft Priority List;

NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the following comments be submitted to the Transportation Advisory Committee on the Draft 2006-2012 Regional Priority List.

· Chapel Hill Signal System should be given points for congestions relief, expanding transportation choices and impacting the National Highway System.

· The ranking criteria should be revised to reflect the Urban Area’s and Chapel Hill’s emphasis on alternative modes of transportation and give higher priority to public transit, bicycle and pedestrian projects, and sprawl reduction.

· The ranking criteria should require a quantitative evaluation of the ability of roadway projects to reduce congestion and improve air quality, using the Regional Transportation Model.

· Bicycle and pedestrian enhancements should receive more favorable weighting with additional points for factors such as:

o Connectivity to other existing facilities/routes and

o Locations which have higher concentrations/density of population

o Locations on road corridors experiencing the highest rates of traffic increase.

This the 22^nd day of March, 2004.

Item 9 - Calling a Public Hearing on Potential Legislative Initiatives

Mayor Foy noted that this resolution would call a public hearing for Items 1-7 from the memo, and also for Council Member Kleinschmidt's petition, as Item 8. He asked that it also include an underground utilities item from last year, as Item 9.

Council Member Strom asked to add expanding the Homestead exemption, as Item 10. Town Attorney Ralph Karpinos replied that this would need to be a State-wide bill, but said that it could be added. The Town would have an opportunity to adopt language for that agenda item after the public hearing, he said.

Mayor Foy clarified that it would go on the agenda for comment and the Council would adopt it after the forum. Mr. Karpinos said he could have this back by the second business meeting in April, perhaps before.

COUNCIL MEMBER WARD MOVED, SECONDED BY COUNCIL MEMBER STROM, TO ADOPT R-16, CALLING A PUBLIC HEARING FOR MARCH 24^TH TO RECEIVE PUBLIC COMMENT ON ITEMS 1-7 FROM THE MEMO, AS AMENDED TO INCLUDE COUNCIL MEMBER KLEINSCHMIDT'S PETITION AS ITEM 8, THE UNDERGROUND UTILITIES ITEM FROM LAST YEAR AS ITEM 9, AND EXPANDING THE HOMESTEAD EXEMPTION AS ITEM 10,. THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

A RESOLUTION CALLING A PUBLIC FORUM FOR MARCH 24, 2004, ON POTENTIAL LOCAL LEGISLATIVE REQUESTS FOR THE 2004 SESSION OF THE NORTH CAROLINA GENERAL ASSEMBLY (2004-03-22/R-16)

BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council calls a public forum for March 24, 2004, at 7 p.m., to receive public comment on the following items for consideration as possible subjects for local legislation in the upcoming session of the North Carolina General Assembly:

A bill to authorize a local public campaign financing program.

A bill to authorize the expenditure of open space bond funds outside of the Town’s extra-territorial jurisdiction.

A bill to authorize transfer of development rights into the Town’s urban area in association with conservation easements purchased in rural areas of Orange County.

A bill to allow the Town to enact zoning regulations pertaining to the ratio of bedrooms to bathrooms in residential development.

A bill to extend the time period, established by local act last year, that a special use permit development can be delayed if the property has been identified as a potential school site.

Enhanced financial support for the provision of Town fire protection services on the campus of the University of North Carolina at Chapel Hill.

Bills pertaining to local and regional transportation organizational and funding issues.

A bill to request that the North Carolina General Assembly Repeal the So-Called “Defense of Marriage Act.”

Funding Mechanism to Convert Overhead Power Distribution Lines to Underground.

10. A bill to expand the Homestead Exemption.

This the 22^nd day of March, 2004.

Item 10 - Revised Draft of Town Council Goals for 2004

Mayor Foy pointed out the key changes on page one of the Manager's memo. Other than that, he said, this is exactly what the Council had seen in February. Mayor Foy commented that this would set in place the Council's initial goals and the staff's work plan for this year.

Council Member Verkerk pointed out that having a transit center had come up again and again during discussions of Parking Lots 2 and 5. And, she added, it had also been a high priority for the three transit partners on the Public Transit Committee. So it is coming from all directions that this Transit Master Plan has to be in place, noted Council Member Verkerk.

COUNCIL MEMBER STROM MOVED, SECONDED BY COUNCIL MEMBER WARD, TO ADOPT R-17. THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

A RESOLUTION ADOPTING TOWN COUNCIL GOALS FOR 2004 (2004-03-22/R-17)

WHEREAS, the Town Council developed a list of proposed goals and priorities for 2004 at the Council’s January 15, 2004 Planning Session, using the Comprehensive Plan Action Plan as a basis; and discussed a proposed set of goals on February 23, 2004; and

WHEREAS, the Council desires to integrate the implementation of the Comprehensive Plan into its quarterly review of progress;

NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council adopts the 2004 Council Goals and Implementation Plan as described in Attachment 1 of the Manager’s March 22, 2004, memorandum.

This the 22^nd day of March, 2004.

Item 11 - Response to Petition Requesting More Opportunity

for Public to Consider Staff Reports

Mayor Foy commented that this had been a citizen's request and that the staff's recommendation was that the Council appoint a committee to study a process to address the issue. Mr. Horton indicated a staff note on page 6 regarding what they could do administratively. But the more significant changes would require a modification of the Council's procedures, he said, so the staff had recommended appointing a Council committee.

Council Member Verkerk asked if the Council wanted to postpone this until after the Town Information Officer has begun work. Mr. Horton replied that doing so would have no bearing on the issue.

Council Member Harrison praised the idea of getting the tentative agenda out two weeks ahead. He had been able to get updates from the Town Clerk, he said, adding that the Transportation Board appreciated a Council member being able to explain when issues will come before the Council.

Mayor Foy asked if the Council was interested in taking any procedural steps, or if they were satisfied with what the Manager planned to do.

Council Member Greene spoke in favor of the plan to have more updated and speedier access to information. She wondered if Planning Board and Transportation Board agendas could eventually be updated and put online. Mr. Horton replied that this issue would be before the Council as they consider the budget. Council Member Greene mentioned that some of the other procedural ideas were interesting as well. It would be useful to consider them further, she said.

Mayor Foy asked if anyone wanted to volunteer for a committee to address these issues. Council Member Harrison volunteered and Mayor Foy appointed him convener of the Committee. Mayor Foy stated that the Council would take formal action on other members on April 14^th, once Council Member Harrison had recruited them.

Council Member Harrison commented that he would not pursue this if he does not get any participation.

COUNCIL MEMBER KLEINSCHMIDT MOVED, SECONDED BY COUNCIL MEMBER STROM, TO ADOPT R-18, AS AMENDED TO INCLUDE COUNCIL MEMBER HARRISON AS CONVENER AND TO BRING A RESOLUTION TO THE APRIL 14, 2004 MEETING WITH NAMES OF COMMITTEE MEMBERS FOR COUNCIL CONSIDERATION. THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

A RESOLUTION ESTABLISHING A COUNCIL COMMITTEE TO CONSIDER POTENTIAL ADJUSTMENTS TO THE TOWN COUNCIL PROCEDURES MANUAL THAT WOULD ESTABLISH A MORE FORMAL PROCESS FOR POSSIBLE DELAY OF ISSUES PLACED ON THE COUNCIL’S AGENDA AND OTHER OPTIONS (2004-03-22/R-18)

WHEREAS, the Council has received a petition suggesting that the public be allowed more time to review staff reports before an issue to discussed at Council meetings; and

WHEREAS, administrative changes have been identified for implementation that would address some of the concerns expressed in the petition; and

WHEREAS, the Council wishes to consider amendments to the Town Council Procedures Manual that would set a more formal process for possible delay of issues placed on the Council’s agenda, including:

· Consideration of a procedural rule whereby the first item on any meeting agenda is the formal adoption of the agenda;

· Consideration of a procedural rule whereby an individual Council member, or some other designated number of Council members less than a majority, could object to an agenda item being considered the first time it is placed on the agenda for Council action;

· Consideration of a procedural rule whereby an item placed on the Council’s agenda for action would have to receive a super-majority vote in order to be approved the first time it is on the Council’s agenda; and

WHEREAS, the Council wishes to consider any other means identified that would improve the method of providing information to citizens regarding upcoming issues scheduled for Council consideration;

NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that Council Member Ed Harrison is appointed to serve as the convener of a Council Committee to Study a More Formal Process for Possible Delay of Issues Placed on the Council’s Agenda and Other Options, and requests that Council Member Harrison identify other Council Members willing to serve on this Council Committee and report back to the full Council on April 14, 2004.

This the 22^nd day of March, 2004.

Item 12 - Report from the Council Committee in

Response to Lobbying Petition

Council Member Greene, the convener, explained that this had been the result of a petition brought by the Coalition of Neighbors Near Campus (CNC). The Council Committee had gathered information for lobbyist registration ordinances throughout the country to consider what one might look like for Chapel Hill, she said. Council Member Greene explained that the Committee had addressed related questions, such as why the Town would have an ordinance, what it would involve, and if such an ordinance would apply to any State agency, such as a university. They were bringing a report on that tonight and opening the discussion, she said.

Gene Pease, speaking on behalf of the CNC, thanked the Council and Committee for their thoughtful consideration of the lobbying ordinance. He distributed a proposed ordinance that CNC had crafted from information that the Council Committee had submitted to the Council in their report. Mr. Pease read highlights from CNC's draft ordinance.

Bob Durovich remarked that the Town Council was the most influential body in Chapel Hill. So, he continued, Council members need to have guidelines regarding lobbying interests. Mr. Durovich remarked that people need to have some standard against which to hold themselves accountable. He could understand a debate around what the Council should be doing to create this standard, he said, but not around whether they should be creating one. Mr. Durovich strongly encouraged the Town Council to come up with principles for handling lobbyists.

Will Raymond quoted from questions that he had submitted to the Town last summer regarding lobbying tactics concerning red light cameras. He also read answers from the Town stating that there had not been such a lobbying effort on the part of ACS, the company promoting the cameras. Mr. Raymond recommended having clear guidelines so that the Town Council will report any lobbying efforts that have come before them in a timely and public manner.

Mayor Foy noted that the Committee's report had outlined twelve questions, but did not offer a recommendation. It was up to the Council to decide what the next steps might be, he said.

Council Member Strom expressed support for the initiative regulating paid lobbyists. He proposed forwarding the draft ordinance to the staff and asking the Town Attorney to bring back a report and possible ordinance at a later meeting.

Council Member Greene commented that there had been phony grassroots organizations in this country for some time now. She wanted to do something about the problem, she said, predicting that it would persist in Chapel Hill as long as development interests are high stakes.

Mayor Foy suggested that the Council clarify what it was trying to remedy. He noted that Mr. Raymond had said it was important to report lobbying efforts quickly. "But that's not what this does," said Mayor Foy, adding that the Committee's recommendations were more focused on regulating what Council members do.

Mayor Foy said that the lobbying ordinance seemed to him like campaign spending reports, which come out in January when the election has already happened in November. They are a good effort, he said, but it is questionable how well they work. Mayor Foy wondered what a quarterly report telling citizens that a lobbyist spent a certain amount of money would accomplish. He asked if it would be more effective for Council members to post their calendars on the Town’s website. Mayor Foy pointed out that posting their calendars would address the issues of transparency and timeliness. He had not sensed that any Council member had not been open about Town business, he said, but institutionalizing that, as Council Member Greene had suggested, did not seem like a bad idea.

Council Member Greene stated that there was a clear distinction between paid lobbyists and individual citizens who promote their own interests. She noted businesses always have resources to be in Town Hall. Having them register would not be as timely as posting Council members calendars every week, she said, but it would provide a record that would shed light on the process and put the burden on the lobbyist rather than the Council member.

Council Member Verkerk commented that posting a calendar on the website would not be an onerous burden if it would allow citizens to feel more comfortable.

Mayor pro tem Wiggins argued, however, that knowing when lobbyists are in Town and approaching Council members would shed the most light. And posting calendars had not been her idea, she said, but she had been the one who brought it to the Committee.

Council Member Wiggins explained that she had told ACS lobbyists that the red light camera issue was not about them and their business and she had finally had to tell them not to call her anymore. She had confidence in herself and in every other Council member to act with integrity when lobbyists approach them, Mayor pro tem Wiggins stated. But, Mayor pro tem Wiggins noted, exposing what they were doing would raise their conduct to an above board level and shine a spotlight on it.

Mayor pro tem Wiggins commented that she would feel more open to considering the lobbying ordinance if the request had come at the time when the Council was dealing with ACS. But, she pointed out, Mr. Raymond was the only one who had inquired about that. Mayor pro tem Wiggins remarked that lobbying had not been an issue in Town until UNC attempted to meet with individual Council members. She would not support an ordinance that was directed at controlling the University's conduct rather than the Council's, she said.

Council Member Kleinschmidt recalled that the petition had come the same week that Leslie Blakey had called him about red light cameras and not told him that she was working for a corporation. This is the problem with placing the burden on Council members who might not know that a caller is a lobbyist, he said. Council Member Kleinschmidt argued that it was important to know who was operating with greater resources than ordinary citizens. Talking to someone whose livelihood depends on their ability to persuade Council members is different from contact with a constituent, he said, noting that the constituent "is my boss, who can fire me at the next election." Council Member Kleinschmidt said that the number of calls he had received over the past two weeks on the same-sex marriage issue would have raised it to the level of ridiculousness if he had been required to calendar each one.

Council Member Hill stated that lobbyists have a stranglehold on the State legislature as well as the national government. There was evidence in this report that their influence at the city level is even stronger because citizen input is so much less, he said. Council Member Hill said that enacting an ordinance would acknowledge the problem, but would not reduce the effectiveness of lobbyists in government. He mentioned that staff members had been lobbied as well, adding that the degree to which that influences what happens in Town would become clearer to people if the Town had an ordinance. Council Member Hill concluded that, given the enormity of this situation in government, having an ordinance was a useful thing to consider.

Council Member Verkerk left the meeting at 10:38 p.m.

Council Member Strom expressed agreement with Council Member Kleinschmidt's comments, adding that the important point was to regulate paid lobbyists. Even if the Council posts their calendars on the Internet, there is no context for citizens to understand that, he said. Council Member Strom explained that he had been contacted by registered State lobbyists for various corporations in his role on the TTA Board, and they tell him who they are when he picks up the phone. He stated, "I find that remarkably helpful that they know the rules and that there is this level of disclosure that immediately helps me do my job better."

COUNCIL MEMBER STROM MOVED THAT THE COUNCIL REFER THE DRAFT ORDINANCE TO THE TOWN ATTORNEY TO COME BACK WITH A REPORT AT A LATER MEETING. COUNCIL MEMBER GREENE SECONDED.

Mayor Foy agreed with Council Members Kleinschmidt and Strom that people sometimes contact the Council without the Council knowing who they are. This would create a difficulty that is not addressed by the Council posting their calendars on the Town’s webpage, he said. Mayor Foy pointed out that his email was public record, however. It goes straight to the press, Mayor Foy commented, adding that he has no problem with that. He also agreed with Council Member Wiggins that this petition had been explicitly directed at UNC. But, Mayor Foy noted, contacts with the University would not be addressed with this petition because the Town cannot regulate UNC.

Council Member Greene suggested that the Town Attorney come back with a memo about what the Town does have authority to regulate in that respect.

Mayor Foy pointed out that these things do not have to be mutually exclusive. The Council could hybrid something to deal with the perceived problem, he said, adding that he did not think there was a problem. People should not be left with the notion that lobbyists are unduly influencing the Council, Mayor Foy said. He proposed merging some of these ideas together so that people would know that the Council is open about how they conduct themselves.

Mayor pro tem Wiggins agreed that Council Members Kleinschmidt's and Strom's comments made sense. She would support a lobbying ordinance that did not try to “catch UNC in the net,” she said.

Council Member Ward welcomed the idea of finding ways to shed light on the Council's activities. ACS had been an anomaly in terms of his experience on the Council, he said. Council Member Ward stated that most of his contact had been with constituents, who could be defined as lobbyists as well, he said. He proposed arriving at a clear definition of who is and who is not a lobbyist. Council Member Ward noted that in terms of undue influence, he did not know that a paid lobbyist was different than a PAC, for example, or some other type of organization that gathers together to influence Council decisions.

Mayor Foy asked Council Member Greene if she would object to the Council referring this discussion back to her Committee to work with the Town Attorney to bring something back that is informed by tonight's discussion. Council Member Greene asked why Mayor Foy thought that would be better than just referring tonight's comments to the Attorney. Mayor Foy explained that the issue Council Member Ward had raised was a policy-type question that could be hashed out in the Committee. And, he explained, what the Committee would recommend might be different from what the Town Attorney would draft. Council Member Greene asked for a little time to think about how that would work.

Council Member Harrison disclosed that he had been a paid lobbyist for the Audubon Society of North Carolina. He described the ordinance as a good starting point, but noted that the Council should decide whether they want an ordinance at all. The ethical guidelines that some citizens were requesting were not the same as an ordinance, he pointed out.

Council Member Greene remarked that she thought ACS might have been the "canary in the mineshaft." If this is a trend, she noted, then it would be proactive to give serious thought to having a disclosure ordinance. Council Member Greene told the Council that every ordinance she had found had applied only to paid lobbyists and had put the entire onus on the lobbyist to do the reporting. They accept the distinction between those who come to Town Hall because it is their jobs and those who come as interested citizens, she said.

Mayor pro tem Wiggins remarked that she did not mind continuing to serve on the Committee to bring back an ordinance. But as far as the University is concerned, she stated, everyone knows that UNC works with the Council toward its own ends. Mayor pro tem Wiggins argued that it was not necessary for UNC to register as a lobbyist. If a UNC member calls and asks her to meet them for lunch or dinner, she will go, she said. Mayor pro tem Wiggins stated that everyone in the community knows that the University is actively trying to move its agenda forward. She remarked that she would support an ordinance in which the University was not a target, because they are not trying to do anything undercover in terms of influencing the Council.

Council Member Hill stated that nothing new had come out of the Committee's discussions and that he was not sure there was much value in meeting again. It was determined fairly early on that UNC would be exempted from this rule, he said, because it is not in the Council's province to legislate them in this regard. Council Member Hill recommended referring the document and comments to the Attorney to come back with a response at his leisure. He did not see any reason for the four Committee members to keep discussing this issue, he said.

Mayor pro tem Wiggins stated that she had not had a chance to read Council Member Greene's memo, except while others were talking tonight. Council Member Hill told her that it was fairly un-ambitious and a good distillation of what the Committee had discussed. If that's true, Mayor pro tem Wiggins commented, then the Town Attorney should "take a stab at it."

Council Member Greene asked if the matter could be left open until the following Wednesday.

Mayor Foy accepted that, but expressed a preference for having an ordinance and policy recommendations. He pointed out that this would be a lot to ask the Attorney to do.

COUNCIL MEMBER STROM MOVED, SECONDED BY COUNCIL MEMBER GREENE, TO AMEND HIS MOTION TO REFER THE DRAFT ORDINANCE TO THE ATTORNEY ALONG WITH COMMENTS TO COME BACK TO THE COUNCIL WITH A REPORT ON APRIL 14, 2004. THE MOTION WAS ADOPTED UNANIMOUSLY.

Item 13 - Consideration of OI-4 Zoning District Review Procedures

This item, Consideration of OI-4 Zoning District Review Procedures, was deferred to the Council’s April 14, 2004 business meeting.

The meeting adjourned at 10:54 p.m.