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

CHAPEL HILL, NORTH CAROLINA, SATURDAY, JANUARY 15, 1994, 8:30 a.m.

Mayor Broun called the retreat to order. Council Members in attendance were Joyce Brown, Joe Capowski, Mark Chilton, Pat Evans, Lee Pavão, Barbara Powell, Jim Protzman and Rosemary Waldorf. Also in attendance were Town Manager Cal Horton, Assistant Town Managers Sonna Loewenthal and Florentine Miller, Finance Director James Baker and Town Attorney Ralph Karpinos.

Retreat Facilitator Andy Sachs briefly reviewed the retreat's ground rules. Council Member Evans suggested that the Council outline one and two-year objectives. Mr. Sachs stated that a total of nineteen objectives had been proposed for discussion. Council Member Waldorf suggested that tax rates and service levels could be handled as a single topic. Noting the details within each goal, Council Member Brown said the Council needed to deal with issues under each topic. She also noted that there were many interrelationships between topics. Council Member Evans suggested combining public safety and traffic safety concerns. Council Member Protzman suggested that the Council needed some flexibility on the number of issues to be discussed and the amount devoted to each topic.

Council Member Powell suggested combining topics 7 and 8 (growth-related items) and 17 and 18 (human services and housing). Council Member Protzman inquired how sustainability would fit into the Council's discussion today. Council Member Brown said this could be handled with growth-related items.

Mr. Sachs inquired about the need to pull out smaller issues. Council Member Protzman suggested that the Council focus on a limited number of topics at today's retreat. Mayor Broun suggested that the Council prioritize possible discussion topics. Council Member Pavão suggested that the number of categories could be narrowed to thirteen by combining items 7, 8, 11 and 13 into "growth management" issues. Noting that a Council committee was working on advisory committee concerns, he also suggested that goals 2, 3 and 4 might be combined. Mr. Sachs inquired whether the Council wished to defer discussions of goals 1 through 4 to another time. Mayor Broun suggested that the goals might be intermeshed into the day's discussions by the Council. Council Member Pavão suggested that Council examine the Council process and combine goals 7, 8, 11 and 13 into a discussion about growth concerns.

The Council conducted a preliminary straw poll of issues to be discussed. The items identified for discussion were: budget/tax/service levels, public & traffic safety, growth-related issues, public housing, solid waste and downtown-related concerns.

Mayor Broun suggested that the Council first address

budget-related matters. Council Member Waldorf said budget and safety were closely related matters. Mr. Sachs provided an overview of suggested ground rules for discussing each of the topics.

Budget & Tax Issues

Council Member Waldorf stated that the Council needed to establish funding priorities and overall processes for the 1994-1995 budget. Council Member Protzman inquired about Council Member's philosophies about raising or lowering taxes. Council Member Capowski inquired whether the Town was using the best available budget structuring process. Council Member Waldorf expressed hope that it would be a Council goal to comprehensively evaluate Town services and related funding by programs and functions performed. Council Member Pavão suggested that the Council use the current year budget as a starting point for evaluating accomplishments and setting new goals for future years. Mayor Broun expressed his concurrence that the current year budget was a good starting point for the 1994-1995 budget.

Council Member Capowski expressed concern about potential inertia in the Town's budget process. Council Member Capowski inquired about the possibility of staff evaluating alternate methods for development of the Town's budget. Noting that nothing was sacred in budgets, Council Member Protzman stated that although many alternatives had been explored, the current year budget was generally the best starting point for development of subsequent budgets. Council Member Brown requested that staff provide significant additional detail about line items in the proposed budget. Mayor Broun urged the Council not to micromanage the budget process. Council Member Brown said her principal objective was to know more about broad categories in greater detail. Council Member Waldorf stated the need for review of departmental functions and services. Council Member Protzman expressed his concurrence with this approach. Council Member Evans suggested looking at personnel involved in service delivery.

Mr. Horton said it might be useful to have a service catalog on a departmental basis, although it would not be possible to exactly detail all program costs. Mr. Horton requested Council assistance in determining areas of specific emphasis. Council Member Waldorf inquired how much work would be involved in compiling a services catalogue. Mr. Horton said although a lot of work would be involved in compiling the catalogue, he thought it would be a worthwhile use of staff time. Mayor Broun said he preferred this approach to across-the-board cuts.

Council Member Brown emphasized the need to evaluate the efficiency of services. Council Member Brown mentioned last year's request by Council Member Chilton and herself to involve all Town staff in looking for ways to cut the budget and make departments more efficient. She also inquired about the possibility of getting more detailed information about line items and the status of the Town's cost accounting system. Mr. Horton noted that all budget preparation materials were public records. He added that most information related to cost accounting was available on individual personal computers in Town departments. Mr. Horton stated that the work order system would be available in about one year. Council Member Pavão stated that across-the-board cuts only postponed future budget problems. Noting that Orange County and the school system would likely suggest tax increases, Council Member Capowski suggested that the Council establish a maximum property tax rate increase while maintaining service efficiencies.

Noting the importance of providing clear budget direction to staff, Council Member Chilton suggested the possibility of providing several service level options for each Town department. Mayor Broun stated that the staff had outlined several budget options in recent years. He inquired whether it was reasonable for staff to provide a service catalogue and service level options by department. Mr. Horton said both approaches were reasonable.

Noting that departments had presented their budgets separately in the past, Council Member Brown inquired whether there was another way to make presentations. Mr. Horton stated that staff was willing to make presentations in the manner most useful to the Council such as a service catalogue. Noting that the Council were representatives of the Town's taxpayers, Council Member Brown said she favored the service catalogue approach. Council Member Protzman said he strongly favored compilation of a service catalogue. He added that high-level presentations by individual departments would be a good idea early in the budget process. Council Member Powell said a service catalogue and individual department presentations were both good ideas.

Council Member Protzman suggested establishing a minimum dollar threshold for inclusion of services in the Town service catalogue. He also inquired about the possibility of formulating a no tax increase budget in addition to options for tax rate decreases or increases. Mr. Horton said staff could accommodate all of these suggestions. Council Member Brown how much staff time it would take to list out all Town services in a catalogue. Mr. Horton suggested that smaller items could be included without cost estimates at the end of the service catalogue. Council Member Capowski said it was not desirable to have "yo-yo" tax increases wherein larger tax increases were needed to offset no tax increase years. Mr. Horton noted that some communities adopted two-year budgets to address this concern. Council Member Protzman asked whether these two-year budgets were updated annually. Mr. Horton said yes. Mayor Broun said this proposal was an interesting idea meriting further exploration.

Council Member Brown emphasized the importance of restructuring for service level efficiencies. She stated that some outside expert advise might be needed to examine restructuring. Noting that many corporations were finding opportunities in restructuring, Council Member Protzman said he had a lot of interest in such programs for

the Town. Council Member Powell said the Town had already initiated some efficiency programs.

Council Member Capowski requested that the staff prepare a report on the possibility of establishing a Town data processing department. Council Member Waldorf noted that efforts to reduce duplication in service delivery among Orange County jurisdictions should continue. Council Member Protzman inquired about the next phase of service restructuring. Council Member Waldorf suggested that the Council establish a timetable for continuation of budget-related discussions.

Council Member Protzman said the compilation of a complete and concise Town services catalogue would be a valuable tool in formulating the Town's future budgets. Council Member Evans stated that the catalogue should note which personnel were involved in the delivery of specific services. Council Member Capowski requested additional information concerning Council Member Protzman's suggestion of having all departmental budget presentations at one Council meeting. Council Member Protzman stated that his suggestion was for the Council to receive briefings on broad budget matters in individual Town departments. Mr. Horton said he believed this would likely require two Council meetings to complete all of the Town's departments. Mayor Broun said the overriding principle of the budget and service catalogue processes would be that nothing was sacred in the Town budget.

Mayor Broun noted that the Council needed to provide the Manager with direction of the type of budget to be presented by staff. Council Member Protzman said it would be wise to provide direction on the tax rate and reengineering of services. Council Member Evans said no cuts should be made in police services. Council Member Capowski said it seemed reasonable to have a property tax increase of up to one percent. Council Member Brown asked whether it was too early to establish such a figure. Council Member Pavão said he did not believe this was the case. Mr. Horton noted that based on inflation rates and labor market comparisons, the staff was estimating a three percent increase in personnel and operating costs. Council Member Capowski inquired about the impact of an overall three percent budget increase. Mr. Horton stated that a number of service scenarios were included in the budget forecast presented to the Council.

Mayor Broun suggested that it might be useful to have a three percent tax rate increase as one budget guideline. Mr. Horton inquired whether the staff should project a 1 1/2% increase instead of a 3% increase. Mayor Broun said one option was a zero increase, with other options as possibilities. He inquired what other options the Council wished to pursue. Council Member Brown inquired about the amount of staff time and money involved in compiling two budgets with different assumptions. Mr. Protzman inquired whether it was practical to compile budgets with 0, 1 and 3.7 percent property tax increases. Mr. Horton said it was possible to do this in addition to providing other options.

Council Member Brown inquired about restructuring and efficiency possibilities. Council Member Waldorf said the Council needed to have a full discussion of budget projections and priorities. Council Member Evans expressed her concurrence. Council Member Protzman requested that the Manager make some initial recommendations on processes for attaining restructuring and efficiencies. He added that a more thorough review of budget forecasts and service priorities were needed. Council Member Waldorf inquired whether it was correct that there were no other budget-related Council meetings scheduled until February 23rd. Mr. Horton said this was correct. Council Member Waldorf asked whether a 3% salary increase was being suggested for Town employees. Mr. Horton said the increase was needed to stay even with market conditions. He added that the 3% increase might not be sufficient to be consistent with market conditions.

Council Member Capowski asked what the public would be reacting to at the February 23rd budget public hearing. Mr. Horton said general citizen comments would be received at the hearing. He added that a preliminary budget would be presented on March 16th, with a recommended budget being presented on April 25th.

Council Member Chilton noted that the Mayor's Committee on OWASA matters could make a report on water and sewer tax fund matters at the February 14th Council meeting. Mr. Horton requested a more complete definition of efficiency and restructuring. Council Member Brown requested that staff provide a report on whether internal or external resources should report on restructuring options.

Safety Matters

Council Member Waldorf said she had outlined a number of ideas to improve the Town's public safety conditions. She expressed hope that the Council would agree in principle to increase the number of sworn police officers in the Town's 1994-1995 budget. Council Member Waldorf requested that the advertising and recruiting processes for police officers be initiated as soon as possible.

Council Member Capowski asked whether the Police Department might be better served by spending money on other police functions such as narcotics officers or crisis intervention. Council Member Waldorf said there was no way to scientifically prove that additional police officers was the best use of proposed new funding. Mayor Broun said community policing offered a good preventative device.

Noting that she had inquired about the possibility of hiring additional police officers last year, Council Member Powell inquired about the possibility of establishing a police precinct office in the downtown area. Mr. Horton stated that the Town was currently using a property on Graham Street as a surveillance spot. He added that this property might be used as a future precinct. Council Member Brown inquired about how much time police officers spent completing paperwork and forms. She asked whether civilian personnel might assist officers in completing reports and forms. Mr. Horton stated that police officers devoted relatively small amounts of their time to completion of forms and paperwork.

Council Member Brown requested an update from staff on where crime was occurring. She expressed interest in whether or not the Town's crime patterns had changed. Mr. Horton noted that compilation of this information would entail a great deal of staff work. He added that most crime was occurring in business areas late at night. Council Member Capowski added that the Police Department's proposed computer system would be helpful in scientifically allocating the department's resources.

Thanking Council Member Waldorf for her safety-related proposals, Council Member Protzman inquired whether Mr. Horton had any sense of the number of additional police officers needed. Mr. Horton stated that Police Chief Ralph Pendergraph and his staff were attempting to determine the total number of new personnel needed. He added that it would be possible to begin recruiting new officers in the near future, with employment offers made on or about July 1st. Council Member Chilton asked whether the Police Department had other substantial equipment needs. Mr. Horton said the two most significant needs meriting attention were radios and the Department's heating and air conditioning system.

Council Member Powell inquired about the cost of training new officers. She also asked about the department's rate of turnover and the possibility of establishing an ongoing police training program. Mr. Horton stated that the approximate cost of training was $30,000 to $40,000 per officer. He added that the department had modest turnover and could likely offer two training sessions per year for new officers. Council Member Capowski suggested that the Durham-Chapel Hill Work Group discuss the possibility of joint crime reduction efforts. Mr. Horton noted that the Durham and Town police staff worked closely together in addressing cross-border crime problems. Council Member Waldorf said she was impressed by the back-up and cooperation between the Durham and Town police departments. Council Member Brown inquired about the possibility of evaluating operating efficiencies between police departments in Orange County. Stating that there was a regional crime problem, Council Member Chilton added that many local crimes were committed by Town residents. Mayor Broun said he concurred with Council Member Brown's suggested about reviewing efficiency in police services. Mr. Horton said he was not sure the opportunities for unification had been fully examined.

Council Member Capowski emphasized the importance of identifying funds for new bicycles for the downtown E-platoon. Mr. Horton noted that a number of downtown merchants had offered to raise private funds for this proposal. Council Member Protzman suggested that the Council support all of Council Member Waldorf's ideas in principle. Mr. Horton stated that staff would work with area law enforcement agencies to investigate the possibility of consolidating services. Council Member Capowski said the Council and community owed the Town's Police Department its thanks for the recent reduction in crime.

Traffic Safety

Mr. Horton said the Police Department had recently been concentrating its main energies on crime, rather than traffic, concerns. He added that this direction could be changed if the Council wished. Noting that she had heard a number of traffic-related concerns from constituents, Council Member Evans stated that added police presence on main thoroughfares might lead to safer driving habits by area motorists. She inquired about the possibility of publicizing traffic safety efforts throughout the year. Noting the concern of area residents, Council Member Waldorf said there was a need for traffic enforcement along streets which served as alternatives to U.S 15-501. Noting that staff had previously prepared a document on such options, Council Member Brown urged the Council to implement various traffic calming techniques as appropriate which were outlined in the document. Council Member Protzman requested that staff redistribute this document to the Council. Mr. Horton said staff would do so.

Council Member Capowski inquired about the criminal ramifications of businesses promoting alcohol abuse. Mr. Horton said a number of local bars were violating alcohol service rules and laws. He added that individual bar owners had responsibility for controlling their personnel. Mr. Horton said he hoped that the Council would consider lobbying the General Assembly for earlier bar closing hours. Council Member Chilton noted that some bar owners were very responsible and consistent in handling possible alcohol abuse problems.

Council Member Protzman noted that street design could impact the behavior of individual drivers. Council Member Evans noted the importance of setting realistic speed limits on area streets. Mayor Broun inquired how this was handled. Mr. Horton said speed limit problems were handled on a complaint basis. He added that most streets in the Town had limits of 25 or 35 miles per hour.

Council Member Powell asked whether speed bumps could be installed on local streets. Mr. Horton said although undulations could be used to reduce speed, there were some safety-related concerns.

Council Member Protzman asked whether the Town had periodic traffic enforcement campaigns. Mr. Horton said although this had been done at one time, the major emphasis had been on crime concerns during the past few years. Council Member Brown suggested that the Council consider implementation of specific traffic calming techniques in the near future. Mayor Broun suggested that the Council make such a follow-up within sixty days.

Public Housing

Mayor Broun said he was increasingly aware of existing bad conditions in the Town's public housing units. He emphasized the need to be vigilant in addressing the concerns of public housing residents and protecting the value of the Town's investment in public housing units. Mayor Broun said he strongly favored a system which would permit more involvement in decision-making, such as maintenance schedules, by public housing community residents. He added that more public housing residents should be encouraged to serve on the Housing and Community Development Advisory Board.

Council Member Chilton inquired about the status of the Town's response to public housing resident's maintenance concerns. Assistant Town Manager Florentine Miller reported that staff was making good progress in addressing these concerns. She added that staff would make an interim report to the Council in February.

Council Member Chilton noted that some residents feared repercussions if they voiced complaints about the condition of their public housing units. He added that some residents also were afraid to apply for membership on the Housing and Community Development Advisory Board.

Council Member Powell emphasized the need for the Council to concern itself with the Housing Department staff. Council Member Evans inquired about the status of the HOPE program. Mr. Horton said the HOPE program's objective was to assess the viability of privatizing public housing developments. He added that any public housing units which were privatized would need to be replaced by the Town. Mr. Horton stated that a number of public housing residents were interested in participating in the HOPE program. Council Member Brown asked whether the program was a competitive grant. Ms. Miller stated that a consultant's report on the HOPE program would be presented to the Council in the near future. Council Member Waldorf requested that staff investigate the competence of public housing maintenance staff. Council Member Chilton inquired about the possibility of having public housing residents maintain their own facilities. Mr. Horton said this project was not very far along.

Council Member Pavão inquired about the competence of public housing maintenance staff. Mr. Horton stated that the Town's Housing Department had operated in a manner similar to the former Housing Authority, with an emphasis having been placed on new projects, rather than the maintenance of existing facilities.

In concert with this, Mr. Horton said he would recommend that the Council allocate $150,000 in the 1994-1995 Town budget for maintenance of existing public housing units. Council Member Powell said she was very pleased by the Manager's assessment. Council Member Waldorf said it was important to discuss safety in public housing communities. Council Member Chilton inquired about the proposal for assigning residents to the new public housing community on NC 86. Ms. Miller said staff had been working with the Residents Council to establish a process for selecting tenants for the 24 units. Council Member Chilton said he believed some of the suggested criteria, particularly financially-related criteria, might be too stringent.

Council Member Brown inquired about the possibility of examining a land trust program relative to the community's public housing needs. Mr. Horton said this would be possible with the U.S. Department of Housing and Urban Development's concurrence. Council Member Brown asked whether HUD's rules might limit the Town's flexibility. Mr. Horton said this was correct. Council Member Capowski said he concurred with Mr. Horton about the need to rethink the operation of the Town's Housing Department. He inquired about the status of the Dobbins Hill project. Mr. Horton noted that this was a private affordable housing effort.

Council Member Powell emphasize the importance of efforts to eventually make public housing residents more self-sufficient. Council Member Evans said she favored this approach if it was within the Town's power.

Council Member Protzman inquired about the proposed next steps for addressing public housing-related concerns. Mayor Broun said the Council would be well-advised to proceed as suggested by staff. He added that the Council might consider restructure the Housing Advisory Board to increase the number of public housing residents serving on the Board. Council Member Waldorf suggested that the matters discussed today could be addressed by the Housing and Community Development Advisory Board. Council Member Chilton suggested referring all comments and ideas relative to public housing concerns to the Housing and Community Development Advisory Board. He inquired whether the proposed $150,000 allocation for public housing maintenance was in addition to community development funds. Mr. Horton said this was correct.

Growth Management

Council Member Brown said the Council needed to discuss a comprehensive growth and community-building strategy. She noted that Orange County and the Town of Hillsborough had discussed the proposal and approved proceeding with such a comprehensive planning strategy. Council Member Evans inquired about the involvement of business and economic interests in the overall planning process. Council Member Brown noted the inclusion of the business community in the process. Council Member Protzman said it was impossible to object to the concept of comprehensive planning. He noted the importance of noting what the Council favored, rather than focusing solely on what the Council opposed. Council Member Brown expressed her concurrence. She stated that the main objective of the process was to seek out the vision of the residents of Orange County. Council Member Brown stated that a report outlining a suggested follow-up process would be completed by March 15th.

Mayor Broun inquired about the level of detail which would be explored by the group. Council Member Brown said the level of detail was contingent upon comments received from citizens. She added that the group might examine strategies concerning development rights. Council Member Evans asked how the Planning Board would be involved in the proposed process. Council Member Brown said the process was developed to be an inclusive one and all citizens and groups would be included in some way in the planning process.

Noting their transportation, housing and economic impacts on the community, Council Member Capowski emphasized the importance of the University of North Carolina and UNC Hospitals providing details of its future development plans to the community. Mayor Broun said

the Town needed to get the University to see that it was in their best interest to plan with the Town. Council Member Protzman asked whether the University would be encouraged to participate in the comprehensive planning process. Council Member Brown said yes.

Mayor Broun said planning of the Horace Williams tract needed to be a cooperative effort. He added that Chancellor Hardin had expressed his willingness to participate in an overall planning process. Council Member Brown said Orange County had a chance to be a regional or state planning model. She expressed hope that there would be serious discussion about sustainability. Council Member Protzman said sustainability was a buzzword of interest to many people. He noted that it was difficult to oppose sustainability in concept.

Council Member Brown suggested that the Council give the Northwest Small Area Planning Group a charge to define indicators for sustainability and incorporate them into the proposed northwest area plan. Mayor Broun suggested that a better process might be for the Council to set a definition for the term "sustainability". He added that the concept of sustainability merited serious consideration. Council Member Brown said she had no problem with this approach if it were handled in a timely fashion.

Council Member Chilton said he was reluctant to tamper with processes such as the Northwest Area Plan which were underway. Council Member Protzman said he believed the group would examine sustainability concepts such as air and water quality concerns as part of its review process. Council Member Waldorf suggested that the Council establish a small drafting group rather than holding a work session on sustainability. Council Member Evans said the Northwest Area Planning Group was carefully looking at a number of issues. She added that the group was examining a number of tradeoff options. Council Member Chilton asked when the Council would receive a report from the Northwest Area Planning Group. Mr. Horton said he believed the Council would receive another update prior to receiving the draft plan for the northwest area. Council Member Evans said the group was attempting to prepare a draft plan for consideration at an planned public hearing. Council Member Protzman suggested that the Council establish a small drafting group. Council Members Brown, Pavão and Protzman volunteered to serve on the drafting group, to be appointed at a future Council meeting.

Council Member Capowski stated that significant growth was anticipated in the Town's southern and Weaver Dairy Road areas in the future. He inquired whether new subdivisions were generally net financial assets or liabilities to the Town. He also requested a report on Orange County Schools impact fee of $750 per unit. Council Member Evans noted that a great deal had been written about the fiscal impact of new subdivisions. She suggested that individual Council members review literature on both sides of the matter. Council Member Protzman said impact fees could be used as a policy tool to direct the location of development. Council Member Brown requested a report on the difference between impact fees and impact taxes. Town Attorney Karpinos said the Town had legislative enabling authority to assess and collect impact fees.

He added that Orange County had similar authority to assess and collect an impact tax. Mr. Horton said staff could bring back a report on this matter. Council Member Brown said she supported seriously examining the idea of additional development impact models. Mr. Horton said detailed modelling would involve a significant undertaking to develop a complex econometric model.

Council Member Pavão said he believed that attempting to construct a model would be a highly subjective exercise.

Council Member Evans emphasized the importance of raising conflicts between provision of affordable housing and the exaction of impact fees. Mr. Horton said he hoped the Council would let the staff redistribute materials on impact fees and provide further direction.

Mayor Broun stated that City of Durham and Town officials were continuing cooperative land-use and transportation planning concerns relative to the U.S. 15-501 corridor. Council Member Capowski inquired about the possibility of a Town staff member attending City of Durham planning meetings. Mayor Broun stated that an alternative was for staff to make reports to the Council from Durham-Chapel Hill Work Group meetings. Mr. Horton said this reporting was currently limited to transit-related issues. Council Member Brown suggested that the continued major focus of the existing Durham-Chapel Hill study group should be transportation issues and immediately looking at ways to implement alternative transportation management planning involving all the major employers in the area including UNC/UNC Hospitals and Duke University. Council Member Waldorf asked whether the University had a position on the U.S. 15-501 corridor. Mayor Broun said the University was not heavily involved in these discussions. He added that the University's interests might not be the same as the Town's in this matter.

Council Member Capowski suggested possibly discussing the extension of utilities into the rural buffer. Council Member Chilton suggested that the Council could discuss this matter in the future.

Council Member Capowski asked whether staff could bring back a report on the matter. Council Member Capowski said the staff could cover the rural buffer issues in relation to the Piney Mountain matter.

Council Member Protzman noted that solid waste was an important issue which would merit a considerable amount of the Council's time in the future. Mr. Horton stated that area local government managers, attorneys and public works directors were examining alternatives for landfill financing and forms of organization.

Council Member Brown suggested that the Council expand the membership of the Landfill Owners Group. She also said elected officials needed to give more direction to this. Mr. Horton said a legal consultant was examining forms of landfill organization and financing. Council Member Brown suggested that elected officials needed to be more involved and that an outside consultant should examine these matters.

Downtown/Midway/Economic Development

Council Member Evans inquired about lighting and economic development in the downtown area. Council Member Capowski inquired about streetscape funding.

Ms. Loewenthal stated that downtown lighting had been improved in a variety of small ways over the last few months. She added that implications for the streetscape program needed to be considered before any major lighting changes were made.

Council Member Capowski reported that the estimated cost for the streetscape program was $4.8 million, not including the cost of all utility relocations. Council Member Pavão inquired whether the streetscape committee was comfortable with this cost estimate. Council Member Capowski said yes, adding that the additional cost of utility relocation would be significant. Council Member Waldorf inquired how and when the decision had been made to relocate utilities underground. Council Member Capowski said underground utilities were aesthetically preferable. Council Member Pavão noted that Duke Power had agreed to install underground wiring for pedestrian lighting for downtown lighting. Council Member Capowski said this lighting would be functional and help to address crime

concerns. Council Member Evans inquired about the possibility of underground wiring for pilot projects. Mr. Horton said this might be possible.

Mayor Broun asked whether the Council was enthusiastic about the concept of the proposed streetscape program. Council Member Waldorf said although she was positive about the concept, she was concerned about benches and the need for sidewalk improvements.

Council Member Evans said the streetscape program was primarily related to safety concerns. Council Member Chilton said the Council did not necessarily have to eliminate all benches from the proposed program. Mr. Horton noted that some areas of the community had no problem with having benches. Noting that tourism was a major Town industry, Mayor Broun stated that one objective of the program was to make the downtown a more attractive place to visit and frequent. Council Member Protzman stated that the downtown area lacked a larger gathering place such as a Town square. He noted that there was a link between streetscape and economic development of the community.

Council Member Waldorf inquired whether any changes in downtown would be beneficial in stimulating the area's development. Council Member Evans noted the importance of maintaining and nurturing growing businesses. Council Member Chilton suggested that the Council explore the use of community development funds for the establishment of a small business development loan fund. Council Member Powell stated that community reinvestment loans from local banks were also important. She also suggested the need to bring cultural activities to the downtown area. Council Member Capowski said although he did not generally favor local government subsidy of private development, it might be necessary to do so in the downtown area. Council Member Protzman noted that the Self-Help Credit Union and other similar organizations helped individuals to establish and maintain small businesses. Council Member Brown noted that the Council had recently been very supportive of businesses in the downtown area. She emphasized the importance of continuing to nurture small business development. Mr. Horton said staff could bring a report to the Council on the use of economic development funds.

Mayor Broun noted that the convener of a recent conference on downtown development had recently visited the Town and had found the downtown area to be relatively vital. He emphasized the importance of conveying this message throughout the area.

Council Member Brown emphasized the importance of maintaining good communications with the public. She also noted the need to set time tables for discussion of items not discussed at today's session. Mr. Horton suggested that future quarterly reports could contain a list of items for future discussion. Mayor Broun noted that the Council should not hesitate in bringing emerging problems to their colleague's attention. Council Member Brown said an evaluation of the Public-Private Partnership and Triangle J Council of Governments was very important.

Retreat Evaluation

Council Member Brown reiterated here concern about discussing topics not handled at today's session. Council Member Protzman commended Mr. Sachs for keeping the Council on task and on its time frame for the day. Mayor Broun noted that it might have been useful to have a half-hour lunch break to keep up the Council's energy level. Mr. Horton said he hoped the Council might be interested in having another retreat session prior to the Council's summer break in July. Council Member Waldorf stated that today's session had been cordial and fair. She added that there was good chemistry among Council Members. Council Member Capowski said the day's priorities had been set in a fair manner. Council Member Brown said the Council had discussed a lot of important matters today. Council Member Protzman said the Council had remained focused and respected time limitations. Expressing appreciation for the Council's direction, Mr. Horton said the staff had received precise instruction. Mayor Broun noted that individual Council Members had the right to place items on Council agendas. Council Member Powell said she liked the idea of pre-retreat interviews with Mr. Sachs. She added that the comment receipt process had been a little too complicated. Mr. Horton said it was not necessary to follow this same procedure for future retreats. The session stood adjourned at 4:02 p.m.