MINUTES OF A CHAPEL HILL TOWN COUNCIL BUDGET WORK SESSION, MONDAY,

MARCH 30, 1992, 7:30 P.M., CHAPEL HILL TOWN COUNCIL CHAMBER

Mayor Broun called the proceedings to order. Council Members in attendance were Julie Andresen, Joyce Brown, Mark Chilton, Joe Herzenberg, Alan Rimer, Arthur Werner and Roosevelt Wilkerson, Jr. Council Member Joe Capowski was absent excused. Also in attendance were Town Manager Cal Horton, Assistant Town Managers Sonna Loewenthal and Florentine Miller, Parks and Recreation Director Michael Loveman, Finance Director James Baker and Town Attorney Ralph Karpinos.

Mayor Broun noted that there were three discussion items on this evening's agenda.

Discussion with Greenways Commission

Greenways Commission members in attendance were Anne Loeb, Glenn Mitchell, Maggie Scarborough and Dick Terry. Chairperson Andy Sachs arrived later in the proceedings. Mr. Mitchell noted that approximately $2.6 million of voter-authorized bonds for parks and open space remained unissued. Mr. Mitchell said he felt that there was a limited window of opportunity for acquiring land for greenway trails. He stated that the primary purpose of the 1989 parks and open space bonds was for land acquisition, rather than facility improvements. Mr. Mitchell said the Town needed more mini-parks and greenways. He also said the community would need a community park in the eastern part of Town in the future. Mr. Mitchell urged the Council to use the remaining bonds for land acquisition.

Council Member Werner inquired whether Mr. Mitchell was suggesting that the Council not use money to upgrade athletic facilities. Mr. Mitchell said this was correct. Mr. Mitchell said he recognized that there were physical facility needs, but funds were also needed to acquire land such as greenway trails and an eastern community park site. Council Member Werner inquired how the need for an eastern community park had been established. Mr. Mitchell said the Town's parks master plan identified future parkland needs, included the projected need for an eastern community park. Council Member Andresen inquired whether any specific site was under consideration. Mr. Mitchell said no.

Council Member Werner noted that the Town had purchased land for the Southern Community Park and the Maddry property, including a park site. Council Member Werner noted that future financial conditions might make it difficult to develop facilities at future park sites. Mr. Mitchell said the area's real estate market would play a vital role in determining the use of parks and other infrastructure. He said that existing parks were under use pressures.

Mayor Broun inquired whether Mr. Mitchell was suggesting that land be purchased due to the scarcity of land or the limited amount of funding. Mr. Mitchell said although it was not prudent to issue the bonds at present, it was a good idea to have funds on hand when property became available. Council Member Andresen said there appeared to be a philosophical difference between the Council and Commission on the matter of land acquisition versus facility development. However, she said it appeared to be a good idea to use some of the bond money for development at existing parks. Council Member Andresen said she was interested in greenways acquisition.

Mr. Mitchell said the acquisition of land represented a long-term investment. He stated that the 1989 bonds had been promoted for land acquisition. Council Member Werner said the Council's discussions prior to the bond election had focused on using the funds for open space and greenway acquisition and improvements at existing facilities. He expressed concern that if additional facilities were acquired without facility improvements, voters would be unlikely to approve future bonds for parks and open space. Mr. Mitchell said that newspaper accounts of the bond referendum appeared to indicate that the funds would be used for parks and open space acquisition. Council Member Andresen noted that Mr. Mitchell had played an active role in favoring passage of the bonds. Council Member Brown noted that there were needs for land acquisition and development of existing facilities. She emphasized the need to take a balanced view of these matters.

Council Member Wilkerson noted that a previous Council had discussed the acquisition of the Southern Community Park in an Executive Session. He stated that former Council Member Wallace had been concerned about acquiring open space. Council Member Wilkerson said the bond issue's focus had been on open space and parkland, but not necessarily development. He noted that the ballot's language had contained a loophole to permit facility development. Council Member Werner stated that it would have been illegal for the Council to discuss such matters in Executive Session and did not recall having done so. Council Member Wilkerson said the Council had done so.

Council Member Herzenberg inquired about the Commission's thinking on the provision of $50,000 per year for greenways acquisition. Mr. Sachs said the Greenways Commission relied upon this allocation for greenways activities. He noted that the proposed Capital Improvements Program provided $20,000 each in fiscal years 94-95 and 95-96, but did not recommend additional funding. Mr. Sachs emphasized the importance of funds for acquiring and developing greenways. He noted that the Town currently had three miles of a proposed forty-four mile system in place. Mr. Sachs said the Commission was recommending a total of thirteen projects for the Greenways program, four of which (Tanyard and Battle Branches, Booker Creek, and Bolin Creek) were high-priority projects.

Council Member Andresen inquired whether the Commission could provide an overview plan outlining objectives for acquisition and development of greenways. Mr. Sachs said the Commission could provide this information to the Council. Noting that he was seeking consistency in the Commission's argument, he inquired whether the Commission opposed the use of bond funds to develop greenways. Mr. Sachs said there was a conflict between parks and greenways development, which was complicated by the fact that the Commission had recently learned of parkland development after the fact. He noted that the Parks and Recreation Commission and Greenways Commission had worked through matters of this type in the past.

Mayor Broun requested a clarification of greenways funding. Mr. Horton noted that bond funds could be used for greenways acquisition or development. He added that the State of North Carolina had agreed to fund a bikeway along Bolin Creek. Mr. Horton said the Town also hoped to receive funding for the next portion of this bikeway project. Mr. Sachs noted that the Department of Transportation funds could only be utilized for transportation purposes. Mr. Sachs said the Commission hoped that nature spurs could be located off the trail. Council Member Wilkerson inquired about restrictions on payments-in-lieu for parks and open space by developers. Mr. Horton said the primary restriction was that funds had to be used for facilities which would reasonably serve the residents of the development which had made the payment.

Council Member Brown inquired about communications between the Parks and Recreation and Greenways Commissions. Mr. Sachs said the commissions were involved in a number of joint projects. He noted that there were individual liaisons to the two commissions. Noting that there had been a recent oversight in communications, Mr. Sachs said the commissions had an agreement to work together on matters of joint interest. Council Member Brown inquired whether communications between the commissions were presently working. Mr. Sachs said that communications were proceeding well, excepting the one recent breakdown. Council Member Andresen requested that the staff attempt to assure that future communication breakdowns between the two commissions did not occur.

Council Member Andresen said she was concerned that the Town's greenways plan was currently stalled. Council Member Andresen stated that she favored the acquisition of greenways over other tracts of land. She suggested that the Council consider enabling legislation for a revenue source dedicated to greenways. Council Member Werner said he thought the Council had a working agreement to provide $25,000 to $50,000 per year for funding of greenways programs. He urged the Council to commit itself to provide constant funding for greenways programs. Council Member Wilkerson said he did not understand why the Council kept discussing the matter, since there appeared to be general agreement on providing annual funding for greenways. Mr. Sachs said that greenways provided transportation, leisure and environmental improvements to the community.

Mayor Broun requested additional information concerning the Commission's ideas on creative ways of financing greenways development and acquisition. Ms. Loeb outlined several possible funding sources including provision of a pooled income fund for parks and recreation projects, establishments of a public/private partnership for parks and recreation programs and development of a one-half cent prepared meals tax dedicated to parks and greenways acquisition. She noted that the Commission was in the process of evaluating the possible funding sources, their level of effort for implementation, timeliness, likelihood of success and anticipated return.

Mr. Sachs said the Greenways Commission could collaborate with the Planning and Transportation Boards on the development of the Town's pedestrian plan. Council Member Andresen said she hoped the Commission would have an opportunity to review and comment on the plan.

Council Member Brown inquired about the interaction of development of the Bolin Creek greenway relative to improvements to the Bolin Creek interceptor. Mr. Horton said if the Council wished to communicate with OWASA about the Bolin Creek interceptor, the staff was willing to prepare a resolution on the matter. He noted that the Council was schedule to discuss OWASA policies at its April 6th planning session. Mr. Mitchell noted that phase one of the Bolin Creek Greenway had been designed to minimize interruption by OWASA construction activity. Mayor Broun inquired why a resolution was necessary. Mr. Horton said if a specific proposal or request was made, staff normally drafted a resolution to address the specific concern. He noted that if the matter involved a single question, a letter could be forwarded from the Mayor to OWASA.

Council Member Andresen inquired about the anticipated timeframe for OWASA's improvements to the Bolin Creek interceptor. Mr. Horton said the improvements could possibly be completed in 1993 or 1994. Council Member Andresen inquired whether the Town would be eligible for Department of Transportation funds if the project were completed in the near future. Mr. Horton said he did not know how quickly OWASA would act on the project. Council Member Werner noted that the Council would have an opportunity to discuss OWASA matters at the Assembly of Governments meeting on April 1st.

Mr. Mitchell said the time horizon for land acquisition was shrinking. He stated that the Town may or may not have some flexibility in the use of funds for parks and open space acquisition. Council Member Andresen emphasized the importance of coordination with OWASA on the Bolin Creek interceptor improvement project. Ms. Scarborough thanked the Council for the opportunity to have this evening's discussion. She said the Commission would report back to the Council on creative financing mechanisms.

Discussion with Parks and Recreation Commission

Parks and Recreation Commission members in attendance were Sherry Anscher, Dick Baddour, Betty Jones, Eleanor Scandlin, Herschel Slater and James Ward.

Ms. Anscher said the Commission appreciated the opportunity for this evening's discussion. She noted that the Parks and Recreation Commission strongly opposed an increase in fees for youth programs. Ms. Anscher said the Commission urged the Council to support summer and late-night basketball leagues and programs. She also noted that the Commission supported additional soccer and ball fields and long-range improvements for recreational facilities. Noting that payment-in-lieu funds were available, Ms. Anscher said the Commission urged the staff to continue its negotiations with the University for use of ball fields in the Glen Lennox area. She stated that the Commission favored using funds for the development of fields on the Maddry property. Ms. Anscher also said the Parks and Recreation Commission believed that the concept of regionalizing the Southern Community Park facility had merit.

Council Member Werner said he concurred with the Commission's opposition to increasing fees for youth programs. He also noted the need for additional ball fields. Noting that fields were available year-round, Council Member Werner inquired about the possibility of spreading leagues over the entire year, rather than emphasizing spring activities. Ms. Anscher noted that additional staff would be needed to administer additional basketball and baseball programs. She added that camps made use of numerous facilities during the summer. Council Member Werner said a lack of ball fields also posed programming problems. He suggested that the Town utilize the fields for more than a few months each year. Mr. Baddour noted that softball programs for men and women took place throughout the summer. Mr. Loveman noted that holding some leagues during the summer had been problematic due to the community's transient nature. He added that the staff was reassessing this situation.

Mr. Slater noted that the Town had constructed no new ball fields since the late 1970's. He noted that over 1,100 additional children had been enrolled in local schools during the last seven years. Mr. Slater said that both the Town of Carrboro's and the Town of Chapel Hill's youth recreational programs were oversubscribed. Mayor Broun inquired whether the Commission had drafted a recommendation on the Town's current recreational needs. Ms. Anscher said this information could be provided. She noted that the provision of fields at the Maddry property would be the top priority. Mayor Broun said it would be very helpful for the Council to have a written priority listing from the Commission. Ms. Anscher emphasized the importance of obtaining a commitment from the University concerning the use of fields in the Glen Lennox area.

Council Member Brown inquired about funding relative to fields in the Glen Lennox area. Ms. Anscher responded that a payment-in-lieu for recreational facilities had been made by the developer of the Oaks II subdivision. She noted that the funds could be used for improvements at the Burlington Park play area, fields at Ephesus Elementary or the Glen Lennox area. Council Member Werner inquired about the amount of payments-in-lieu not currently allocated. Mr. Horton briefly reviewed parks and recreation payments-in-lieu to the Town. He noted that there were currently about $89,000 in available funds. Council Member Werner requested that the staff evaluate the Parks and Recreation Commission's priority listing to determine whether there were other locations where needs could be met more quickly, effectively and at a lower cost. Mr. Horton said the staff could provide this information.

Council Member Wilkerson requested additional information on Mr. Slater's proposal for a summer basketball league. Mr. Slater said the proposed league would have six teams, with fifteen youths on each team. Mr. Slater stated that the program could be initiated fairly inexpensively, using volunteer scorekeepers and existing equipment. He also noted that the teams could possibly be sponsored by area businesses. Mr. Slater noted that Joel Bulkley had originally proposed the concept of a youth summer basketball league. He emphasized the importance of media support in promoting the proposed program. Council Member Andresen inquired about the estimated cost of the league. Mr. Slater said the estimated cost was $3,000 to $3,600. Council Member Andresen inquired how long the league would last. Mr. Slater stated that an eight-week program was proposed. Council Member Wilkerson said he was intrigued by the proposal. Council Member Wilkerson stated that it was quite likely that a corporate sponsor could be found to support the league.

Council Member Brown inquired about the status of the Glen Lennox fields proposal. Mr. Horton said the only funding specifically set aside for this proposal was $10,000 in the 1991-1992 Capital Improvements Program. He noted that it would be possible to establish good quality, permanent soccer fields for an estimated cost of $70,000. Mr. Horton stated that the Town had not received final word from the University on whether the Glen Lennox fields would be available for such a conversion. Ms. Loewenthal added that the staff expected to hear from the University on the situation in a few weeks. Council Member Rimer inquired whether it would be possible to pursue joint use of the facilities by the Town and University. Ms. Loewenthal said this was a possibility. Council Member Rimer also inquired about the possibility of the Town developing and the University maintaining the fields. Ms. Loewenthal indicated that this was also possible. Mr. Horton said the Town was willing to consider any reasonable proposition concerning the Glen Lennox fields.

Council Member Werner said he was frustrated with the slow pace of negotiations concerning the Glen Lennox proposal. Mayor Broun noted that the University had not completed its decision-making process on the issues related to the proposal. Council Member Werner noted that Chancellor Hardin had initially expressed full support for the proposal. He expressed concern about working out future agreements. Council Member Andresen encouraged the staff to continue working with the University on the proposal. She inquired about the second priority on the Commission's list. Ms. Anscher said the second priority was development of the Maddry property. Council Member Andresen inquired about the estimated cost of grading and preparing the Maddry property for recreational fields.

Mr. Loveman said the estimated cost was $500,000. Council Member Andresen inquired how many soccer fields were proposed. Mr. Loveman said two. Council Member Andresen asked whether the estimated cost included the cost of paving the roadway into the facility. Mr. Loveman said yes. Council Member Andresen inquired whether the Town had any flexibility in the type of road leading to the facility. Mr. Horton said the Council could establish development rules applying to public parks only. He noted that there would still be significant costs for development of the two fields. Mr. Horton added that a parking lot would be needed at the site. Council Member Werner inquired about the estimated costs of the road and fields. Mr. Loveman noted that the access road to the Southern Community Park would cost an estimated $200,000. Council Member Werner stated that paving of the roadway was not a very high priority. Council Member Andresen suggested that the Town pursue a short-term lease for the Glen Lennox lots.

Mr. Slater said he concurred with Ms. Rosemary Waldorf's recent remarks to the Council concerning the development of joint-use facilities, such as a cooperative agreement between the Town, University, County, Chatham County and the Town of Carrboro for the Southern Community Park. Mr.Ward said he supported the provision of $50,000 per year for greenways programs and land acquisition. He noted the need to develop existing parkland and greenways. Ms. Scandlin expressed concurrence with Mr. Ward's remarks. She noted that many of the Town's parks were very heavily utilized.

Discussion concerning Capital Improvements Program

Mr. Horton briefly reviewed the status of 1986 and 1989 bond funds. He noted that the Council could authorize the issuance of the remaining 1989 bonds for parks and open space. He also noted that $149,000 remained in the contingency/reserve account for transportation projects. Mayor Broun inquired about the estimated cost of debt service. Mr. Horton said the estimated debt service on $1 million would be approximately $115,000 per year, assuming an interest rate of 6.5%. Council Member Andresen inquired about the tax rate equivalent of $115,000. Mr. Horton said this was approximately two-thirds of a cent.

Mr. Horton said he was seeking the Council's direction on how much to allocate to the Town's capital reserve fund. He noted that the current proposal was to spend $160,000 over the next two years, leaving about $70,000 of contingency reserve. Mr. Horton said he recommended temporarily withholding the expenditure of $230,000 in the event that the State chose to withhold funds from local governments. He noted that funding questions were more speculative in future years.

Mayor Broun noted that up to $230,000 of capital reserve funds were available over the next two years, with funding for future years to be determined. Council Member Werner noted that there were no discretionary capital reserve projects for the next two years. He noted that the Parks and Recreation Commission had made a good case on the need for more ball fields. Council Member Werner also said the provision of $40,000 for greenways over the next five years contradicted the Council's policy of providing $50,000 per year for greenways. Council Member Werner noted that major expenditures would also be necessary in the near future for federally-mandated stormwater management programs. He noted that some capital reserve projects such as bridge replacement and extraordinary maintenance were not Council policy issues.

Council Member Chilton said his primary concern was that long-term forecasts for capital reserve items were tentative and nebulous.

Council Member Rimer said he echoed Council Member Werner's comments on future stormwater management needs. Council Member Rimer said it was difficult to prioritize the capital needs items. He suggested that the staff provide the Council with a range of costs, with an upper and lower threshold. Council Member Rimer stated that sidewalks always appeared to be assigned a low priority. He said it would be easier to focus on what could be done if a range of estimated costs had been outlined.

Council Member Andresen inquired about the proposed process for reaching a consensus on the matter. Mayor Broun said it appeared that the Council appeared to be in general agreement that capital needs could not be met wholly by use of capital reserve funds. Mayor Broun said he welcomed comments on other options or approaches. Council Member Andresen said she concurred with Council Member Werner's direction.

Council Member Brown inquired how long it would take to determine estimated stormwater management costs. Mr. Horton said about eighteen to twenty-four months. Council Member Brown inquired about the level of the Town's flexibility for parks and open s[ace acquisition. Mr. Horton noted that the 1989 bond question pertaining to parks and open space was quite broadly phrased. He noted that additional information on the matter could be provided to the Council. Council Member Brown inquired whether these bonds could be used for sidewalk construction. Mr. Horton said this usage would be somewhat far-fetched. Council Member Brown inquired whether Town had an on-going commitment for a Geographic Information System. Mr. Horton said yes, noting that there was an agreement with Orange County over a number of years. Ms. Miller noted that the commitment was for at least five years. She noted that the Town might need to increase its future contractual commitment, depending on the volume and nature of requests.

Council Member Herzenberg stated that with the possible exception of cemetery beautification, none of the proposed figures were adequate to be responsive to citizen needs. Council Member Wilkerson said he agreed with Council Member Werner and Council Member Rimer about the scale of estimated stormwater management costs. He stated that some federal stormwater management regulations would likely take effect during the next eighteen months. Council Member Wilkerson expressed concern that estimated costs for several of the proposed projects were not realistic. He expressed concern about postponing sidewalk projects for another two or three years. Council Member Wilkerson inquired about the number of Town-maintained timber bridges. Ms. Miller said there were five. Mr. Horton said the one on Willow Drive was in the worst condition.

Mayor Broun noted that the capital reserve budget for the next three or so years was speculative at best. He inquired about payment mechanisms for bond debt service costs. Mr. Horton said the options were to raise the tax rate, find other sources of funding or reduce the general operating budget. He noted that a number of proposals for additional revenue sources would be presented at the Council's April 7th work session.

Council Member Werner inquired about the feasibility of selling or renting the Franklin Street library facility once construction of the new facility was completed. Mayor Broun said this was a real possibility. Council Member Werner said it seemed obvious that the Council placed a high priority on the provision of sidewalks and ball fields. He requested that the staff provide cost estimates for the delay of projects for a long period of time.

Council Member Andresen said she concurred that the development of ball fields and the acquisition of entranceways and greenways were high priority items. Council Member Andresen said she did not favor a large allocation for sidewalk projects due to the absence of a capital improvements budget during the current year.

Mayor Broun noted that the primary purpose of this evening's discussion was to provide guidance to the staff, rather than reaching a consensus on how to proceed. Council Member Andresen emphasized the importance of matters such as maintaining the condition of the Town's streets. Noting that Orange County and the school system would likely recommend tax increase, Council Member Andresen said she was uncertain which course the Town would take to pay for additional services.

Council Member Chilton noted that only five items on the capital reserve listing, accounting for $235,000 out of $960,000, appeared to be somewhat discretionary. Council Member Rimer inquired about the basis for providing concrete rather than timber bridges. Ms. Miller said the new material recommendation resulted from a consultant's study. Council Member Rimer noted the need to maintain the Town's public housing stock in the future. Council Member Andresen inquired whether there were any good long-term projections of estimated costs for maintaining public housing units. Ms. Miller said yes. She noted that the Town had recently received a federal grant of over $1 million for unit maintenance. Ms. Miller stated that the Town hoped to receive continued funding for this purpose in future years. Mr. Horton noted that General or Community Development funds could possibly be used to expedite some housing projects. He noted that the staff had conducted a comprehensive review of public housing neighborhoods and a master scheme for future improvements.

Council Member Herzenberg said he saw ball fields, greenways and sidewalks as the top three priority needs. He expressed concern that sidewalks were inadequate in many parts of the Town. Council Member Brown said she heard from many people stating that the provision of sidewalks were a prime concern. Council Member Brown also said she remained hopeful that state and federal funding mechanisms would be available for sidewalks. Mr. Horton said he shared this hope since additional sidewalk construction was needed. He noted that the State Department of Transportation appeared to believe that funding flexibility would permit expediting of road projects.

Mayor Broun noted the importance of assuring that adequate infrastructure remained in place to assure proper operations. He suggested that the Manager provide a report to the Council outlining possible uses of bond money. Mayor Broun inquired whether this was a reasonable task for the staff. Mr. Horton said yes. Council Member Rimer said the information would be very helpful. Mr. Horton expressed appreciation to the Council for their guidance. Council Member Rimer inquired when the Assembly of Governments meeting was scheduled to convene. Mr. Horton said that assembly would take place beginning at 5:00 p.m., with the meeting beginning at 6:00 p.m. He noted that Mayor Broun had distributed a memorandum outlining proposed topics for the Council's April 6th Planning and Reporting Session.

The work session stood adjourned at 9:57 p.m.