MINUTES OF A RETREAT HELD BY THE MAYOR AND COUNCIL OF THE TOWN OF

CHAPEL HILL, NORTH CAROLINA, SATURDAY, OCTOBER 13, 1990,

8:45 A.M., ROOM 202, KENAN CENTER

Mayor Howes called the retreat to order.

Council Members in attendance were Julie Andresen, Joyce Brown, Joe Herzenberg, Nancy Preston, Alan Rimer, Arthur Werner and Roosevelt Wilkerson, Jr. Council Member James C. Wallace was absent excused. Also in attendance were Town Manager Cal Horton, Assistant Town Managers Sonna Loewenthal and Florentine Miller, Assistant to the Manager Greg Feller, Town Clerk Peter Richardson, Town Attorney Ralph Karpinos, Facilitator Jack McCall, Chapel Hill Newspaper reporter Susan Kaufmann, and Chapel Hill Herald reporter Tom Moore.

Mr. Horton introduced Mr. McCall. Mr. McCall provided a brief personal background, including his past teaching experience at the Government Executive Institute. After reviewing the purpose of the retreat, Mr. McCall requested that the council members come forward to indicate their priority ranking of nineteen Town functional categories. He also requested that the members not limit their thinking to these categories. Mr. McCall suggested that the Council focus its primary discussion on the top seven rated items.

Financial Information/Revenues

Council Member Preston suggested that further investigation of ticket and meal taxes was needed. Council Member Werner suggested that staff examine zoning designations relative to the Comprehensive Plan. Mayor Howes noted that Oxford University Press had recently chosen to locate in Cary. He noted that the Town could profit from this type of business locating within the Town limits. Mayor Howes suggested that the Council have a more open attitude to attracting economic activities compatible with the Town.

Council Member Rimer suggested that the Planning Department staff could identify those parcels of land available for commercial development. He also requested additional information concerning a local payroll tax. Mayor Howes observed that a local payroll tax would require State legislative approval. Council Member Werner stressed the need to filter in the realities of receiving approval for alternative revenue sources. Council Member Andresen observed that the University was currently receiving fire protection services from the Town at very low costs.

Council Member Wilkerson suggested that the Council keep alternative revenue sources before the public for future discussion. Council Member Brown noted the importance of broadening the issue to include the Town's relationship with the General Assembly and the North Carolina League of Municipalities. Council Member Brown also requested a report on how much commercially-zoned land was used and unused. Council Member Preston noted that the entire north side of West Rosemary Street is currently zoned TC (Town Center)‑ Council Member Werner stressed the importance of developing a strategy to encourage the development of commercially‑zoned land.

Council Member Wilkerson noted that many properties on the University border had been purchased for future University development. Council Member Andresen said that the University appeared to understand the Town's concerns about alternative revenue sources. Mayor Howes observed that the League of Municipalities was exploring alternative revenue sources such as a payroll tax.

Council Member Brown observed that retail sales in Orange County had declined recently. Council Member Andresen noted that there was newly elected leadership in the Town of Hillsborough, which might feel differently about the implementation of an impact tax. Mayor Howes observed that an Assembly of Governments meeting had been tentatively scheduled to discuss topics such as the impact tax. Council Member Rimer observed that there would be political tradeoffs in implementing any alternative revenue sources. Mr. McCall noted the need for the Town staff to research alternative revenue sources with other communities around the state and area.

Mayor Howes said that there was no clear understanding of how the meals tax would operate relative to funding of visitor services. Council Member Andresen said that this revenue source had an builtin assumption that having additional visitors was preferable.

Council Member Werner requested that the staff provide the Council with an inventory of all property zoned non‑residential. Council Member Rimer stressed the importance of spatial distribution of non‑residential uses. Council Member Werner also requested information about how long the properties had been zoned and the level of rezoning activity.

Council Member Rimer requested an estimate of how much revenue might be generated from payroll, real estate transfer, meals, entertainment, and impact taxes. Council Member Werner suggested raising the car registration tax from five to ten dollars per vehicle. Council Member Andresen said that one‑time user taxes and user fees merited further exploration by the staff. Mayor Howes observed that the Town's informal policy had been to retrieve costs generated by users of services.

Mayor Howes stated that Orange County tax rates are higher than the Town's. He stressed the need for greater coordination with Orange County officials. Council Member Andresen suggested that the Towns of Carrboro and Hillsborough could work with the Town in identifying alternative revenue sources.

Council Member Werner stressed the importance of the Council receiving adequate financial information for decision‑making.

Council Member Preston said it was difficult to understand the Town's current compensation system and processes. She suggested that the system be presented in a more understandable form.

Council Member Rimer stated that a new cost‑accounting system. He noted that implementation of the system would require time and patience. Council Member Rimer said the system could be used to aggregate costs to determine potential impacts of various approaches. Council Member Andresen requested that future staff reports provide contrasts of top‑level, mid‑level and current service level models. Council Member Rimer expressed his concurrence with this request.

Council Member Brown said that the budget process merited examination. She noted that the Council had spent one entire budget work session discussing the allocation of the hotel‑motel tax. Council Member Brown said that the Council needed to be involved in the budget process much sooner.

Mayor Howes observed that it was much easier to compose budgets when the tax base was growing. Council Member Wilkerson said a better financial reporting system was critical to more informed Council decision‑making. He said that a new system needed to be a Council priority this year. Council Member Wilkerson also suggested the possible establishment of Council budget committees to work with Town staff. Council Member Rimer said that council members could be assigned to individual departments. Mayor Howes said that committees were only useful if less time were spent on overall issues. Council Member Werner said he preferred to get budget information directly from the Town staff. Council Member Wilkerson requested that the staff provide information from other communities such as Winston‑Salem and Charlotte, concerning the mechanics of their budget making process.

Council Member Preston requested an overview of the overall budget process. Mr. Horton said that individual department and division managers monitor their budgets on a continual basis. He noted the importance of Council feedback on the budget for development purposes. Mr. Horton briefly reviewed the budget timetable and process. Mayor Howes stated that greater involvement in the budget process was possible and desirable. Council Member Brown suggested that the Council be involved in the budget process earlier. Council Member Preston said that a Council retreat early in the budget process was a good idea.

Council Member Werner requested that budget information be aggregated in a manner other than the current Management Information System. He also stressed the importance of the Council focus on key budget items, rather than engaging in extensive discussion of minor appropriations. Council Member Wilkerson noted the importance of giving the staff the proper tools to aggregate financial and budgetary information.

Mr. Horton said it was important that future budgetary and financial information be presented to the Council in a flexible manner, to allow for option comparisons. Mayor Howes said that a new cost‑accounting system would aid the Council in reaching fully informed decisions. Mr. Horton suggested that more than one Council retreat per year was needed. Mayor Howes concurred, stating that effective utilization of the Council's time was critical to the Town. He added that not all council members had the same amount of time to devote. Mr. Horton noted that it would be necessary to hire a cost accountant and purchase software and hardware to develop a new cost accounting system.

Council Member Rimer said that good decisions come from good information. He noted that importance of Mr. Horton consulting with the Council on how to set up the cost accounting system. Council Member Rimer said that the system needed to be flexible. Council Member Brown inquired about the estimated cost of the system. Mr. Horton said that the bulk of the cost would be for personnel.

Economic Development

Council Member Preston stated that the West Rosemary Street Town Center area was very viable and attractive. Council Member Andresen said that this was not truly a neighborhood commercial zone, but these uses were nonetheless attractive and useful to the Northside neighborhood. Council Member Preston suggested that the Council could further explore developing neighborhood commercial in other neighborhoods. Council Member Herzenberg said that the Northside neighborhood supported economic development if it did not impinge on the neighborhood's unique character. He noted that there had been no objection to date about the Investor's Title or Fountains projects.

Council Member Andresen stated that the Downtown Commission and Orange County Economic Development Commission were paying greater attention to the Town's economic development wants and needs. Mr. Horton noted that the Downtown Commission and Orange County Economic Development Commission were seeking better working relationships with the Town.

Council Member Werner suggested that the Council make more extensive use of mixed‑use areas. Council Member Wilkerson noted that the Gateway and Chapel Hill North mixed‑use projects had the same kind of impacts, but Chapel Hill North was approved by the Council, while Gateway was not. Mayor Howes said that the economic climate had changed considerably between the two application periods.

Council Member Werner suggested that areas for economic development be identified. He added the importance of developing a strategy for moving ahead with economic development. Council Member Rimer requested that the staff examine the mixed‑use ordinance in concert with the Comprehensive Plan to determine the need for modifications. He also requested an inventory of areas currently zoned for mixed‑use development. Council Member Brown said that the Town and Orange County should work with the same definition of economic development.

Council Member Werner noted that there was no land zoned industrial within the town's limits. Council Member Rimer suggested looking at the inventory of permitted uses for industrial land. Mr. Horton noted that the Council could choose to take an active or reactive posture to economic development. Mayor Howes stressed the importance of encouraging economic development which was compatible with the University's intellectual and information orientation. Council Member Werner inquired whether the Council wanted to permit warehouses and light industria F uses. Council Member Preston said she had no problem with industries that do not pollute. Council Member Andresen said that the Council might wish to examine possible expansion of economic development uses.

Mayor Howes stressed the importance of linking economic development strategies to land‑use planning and related matters. Council Member Werner said it was not possible to achieve closure on economic development at this time, since there was no common definition of its bounds. Mayor Howes noted the importance of diversifying the Town's economic base in the future. Council Member Andresen noted that several business persons and developers had noted regulatory difficulties in opening a business in the Town.

Relationship with the University of North Carolina

Council Member Andresen said that the Consultation and Coordination Committee was not used to full advantage. She suggested thinking of new avenues for future discussion by the group. Council Member Werner said that there was a good deal of interaction between the University and Town staffs. Council Member Andresen noted the importance of the Council developing a strategy for future dealings with the University. Council Member Andresen also noted the importance of the Council working with University officials to develop a consensus concerning the proposed South Loop Road.

Council Member Rimer stated that the Town had little or no control over many internal University issues. He added that University officials were displaying a greater willingness to be more open with Town officials. Council Member Preston stated that as more University buildings were completed, there was less parking space.

Council Member Andresen suggested that the Mayor work to achieve a consensus on issues to be discussed with University officials. Council Member Werner suggested that the Council might already be close to consensus in this regard. Mayor Howes stated that the Consultation and Coordination Committee is an invaluable tool in deepening the lines of communication between the Town and University. Council Member Andresen said that the CCC was not necessarily the proper forum for items such as the South Loop Road. Council Member Brown said she did not always have a full sense of what was being discussed by the Consultation and Coordination Committee. Mayor Howes noted that the University was on the verge of a new era, since the main campus area was essentially built out. He added that the University was evaluating possible future use of its airport and northern properties. Mayor Howes added that these plans would take time to implement.

Council Member Preston noted the importance of determining what the University sought from the Town, in order to achieve a good level of long‑term cooperation. Council Member Werner said that the University and Town had many conflicting interests and different perspectives on similar issues. Mr. McCall stressed the importance of taking a long‑range view in discussions between the Town and University.

Council Member Preston noted that the initial Public‑Private Partnership conference was the first occasion on which University and Town officials had worked closely together in recent times. Council Member Andresen said that there was a greater need for joint problem‑solving by Town and University officials. Mayor Howes said that there was a fairly good level of problem‑solving cooperation. Mr. Horton said that the University/Town relationship appeared to be going in the right direction. Mr. Horton stated that the Town could possibly serve as a greater resource for future joint planning efforts. Council Member Werner stated that the Town's processes were very open, while the University's planning process tended to be closed. Mayor Howes noted that the University of Virginia had recently jointly developed two small area plans with the City of Charlottesville. Council Member Andresen suggested that the Council challenge the University to make its planning process more open. Council Member Werner stressed the importance of reciprocal planning.

Transportation

Council Member Herzenberg noted that rising fuel costs meant that it was costing more to operate the Town's bus system. He inquired how the Town's share of Federal funding compared to that of Durham. Mayor Howes stated that the staff would provide this information to the Council in the near future. He added that Urban Mass Transportation Administration funding had not yet been impacted by Federal budget cutbacks. Council Member Rimer requested a range of funding scenarios, tied to Durham's funding situation.

Council Member Andresen stated the importance of examining downtown traffic circulation patterns. Council Member Rimer suggested that the mission of the Transportation Board be revitalized, with an emphasis on long‑range planning in concert with the Planning Board. Council Member Werner emphasized the importance of Council guidance

on long‑range transportation issues. Council Member Brown said the Town's primary transportation problems occurred during peak commuting times. She stressed the need for greater emphasis of car pooling, mass transportation, and other means of alternative transportation. Council Member Preston said that the Council favored park and ride lots. She added that these facilities were operating very well. Council Member Preston stated that bicycle lanes should be emphasized by the Council in the future. Council Member Rimer expressed concern that there was no focal point for the Transportation Plan. He noted the importance of Transportation Board involvement in this process. Council Member Preston suggested that the Council provide additional funding for construction of sidewalks.

Council Member Werner noted that the Town's roadway policies were in a constant state of flux. Council Member Rimer said that the Planning Board was in the process of examining conflicts between the Roadway and Comprehensive Plans. Council Member Andresen said it was understandable that there were conflicts between the two documents. Mayor Howes noted that the Town had major commitments to its bus system as a means of intercepting commuter traffic. He stressed the importance of making facilities more user‑friendly for bicyclists and pedestrians. Council Member Brown suggested that private businesses, the University and Town needed to take a greater role in identifying and implementing alternative commuter transportation options.

Solid Waste/Environment

Council Member Preston said that the Town's approaches to solid waste and the environment were under control, occupying a considerable portion of the staff's time. Council Member Werner noted that the Council was holding a solid waste planning forum on Tuesday, October 16th. Council Member Rimer said the Town's solid waste and environment efforts were well‑focused.

Council Member Werner said it was not possible for the Town to buy all the land necessary to protect and enhance the Town's entranceways. He stated that such land acquisition should nonetheless be a high priority of the Council.

Mayor Howes stated the importance of the Council taking an active role in protecting area watersheds. He added that this protection created a number of difficult philosophical issues concerning the use of property. Council Member Andresen stated that the future health of the watershed was in the hands of the community and the Council. She added that a more definitive policy for open space acquisition was needed. Council Member Andresen also noted the importance of completing the Town's greenways system. Council Member Werner emphasized the need for the staff to inventory the Town's land holdings. He added that it was critical to have money available for future land acquisitions.

Council Member Brown emphasized the importance of examining the carrying capacity of land relative to streams and sewage. Council Member Andresen noted that the Orange Water and Sewer Authority might need to build a new sewage treatment facility in the near future. Council Member Rimer requested information about Orange Water and Sewer Authority current and future sewage treatment capacity and needs. He noted that there was sufficient water treatment capacity to handle approximately twenty‑five to thirty years of growth.

Council Member Werner noted the need for the Council to address the Town's stormwater management system. Council Member Rimer said this was a long‑term planning issue. Council Member Andresen requested that the staff provide information about the Town of Garner's recently enacted impact fee system for stormwater management. Council Member Brown suggested that homes be retrofitted with low‑flow shower heads and toilets.

Closing Comments

Mayor Howes inquired whether each of members of the Council had any closing comments.

Council Member Andresen requested more feedback from the Mayor on his communications with University and other local officials. Council Member Herzenberg expressed the need for better Council communications and relations with Council‑appointed boards and commissions. Mayor Howes said that there would be more opportunity for give and take in the Council's future working procedures. Mayor Howes indicated that he reported as much as possible to the Council concerning his dialogues with other officials. Council Member Andresen noted the critical nature of communications between the Mayor and members of the Council.

Council Member Preston suggested that the Council meet with advisory boards on a quarterly basis. She added that there appeared to be no good solution to the problem of Council appointments to boards and commissions. Council Member Preston also suggested that the council hold more frequent informal work sessions. Council Member Rimer noted the importance of advisory boards in the Council's decision‑making processes. He suggested that the Council devote one half of one of its regular monthly meetings to long‑range issues.

Council Member Werner noted that there was a high level of citizen participation in the decision making process. He noted the importance of delegating administrative matters to the Town Manager. Council Member Werner said the Council's role was to provide leadership, policy and long‑term guidance. He also noted the importance of advisory boards and commissions in the decision making cycle. Council Member Brown also stressed the importance of citizen participation. She added that Council interaction with the community at large led to better decisions for all. She expressed concern that some people were currently left out of the process. Council Member Wilkerson expressed the need to differentiate the Council's role between power, turf, micromanagement and leadership.

The retreat concluded at 2:37 p.m.