Item 4 Preliminary Report on 1994-1995 Budget

Mr. Horton briefly reviewed the proposed preliminary budget, noting that property taxes and sales taxes received to date were slightly higher than originally estimated. He also noted that the Town had received additional funding from the State of North Carolina for transportation programs. Mr. Horton said that the projected shortfall in the Town's Parking Fund would likely be offset by liquidated damages from a settlement with the project's contractor.

Mr. Horton stated that his preliminary budget assumed no property tax increase, as directed by the Council at its January planning session. He said each one cent on the property tax rate would raise approximately $206,000. Mr. Horton said although state-shared revenues would continue to be significant, there was no anticipated increase in the amount received for fire protection of State facilities. Mr. Horton stated that his preliminary recommendation was to increase employee compensation by 3% for market increases and an average of 2% for merit increases.

Mr. Horton said he was not sure whether federal operating assistance for transportation would still be available at its current level. He added that the State of North Carolina might also change its funding commitments for transportation programs.

Mr. Horton noted that savings of $100,000 to $115,000 per year might be realized from refinancing of the Town's Rosemary Street Parking Facility. He stated that Town staff was working with Local Government Commission staff to identify refinancing options.

Mr. Horton stated that an estimated $50,000 to $80,000 per year might be saved from the issuance of certificates of participation.

Mr. Horton also noted that the Landfill Fund would be affected by the recommendations of the Landfill Owners' Group. He stated that the preliminary budget assumed no increase in landfill tipping fees.

Steve Wallace said local schools were in the process of reviewing their anti-drug curriculums. Mr. Wallace stated that a preliminary report from the Research Triangle Institute (RTI) indicated that the DARE program was not working effectively. He urged the Council to work with area schools to implement less expensive and more effective anti-drug education programs. Council Member Brown inquired about the proposed timeframe for the RTI report and related possible follow-up actions by local schools. Mr. Wallace said a task force on the matter was currently being formed. He added that the DARE program would not be expanded in local schools.

Council Member Brown inquired about the impact of the two parking deck financing options on the Town's tax base and financial obligations. Mr. Horton stated that certificates of participation would use revenues from the facility to lease-purchase the facility from a corporation formed following the issuance of the certificates. He said that if General Obligation bonds were approved by voters for the parking deck, the Town's full faith and credit would be used to secure these obligations. Council Member Brown inquired whether the possible amount of savings would be contingent upon prevailing bond market conditions. Mr. Horton said this was correct, adding that it was somewhat difficult to predict future interest rate trends. Council Member Brown asked how the Town's other parking lots would tie into the proposal. Mr. Horton stated that no change in the overall parking system debt structure was proposed. Council Member Brown asked whether the Town's other parking lots were generating anticipated income. Mr. Horton said the other lot's revenues were close to projected levels.

Noting that she liked the suggestion of general obligation bonds, Council Member Waldorf asked whether a consultant would be needed to study this option. Mr. Baker said the Local Government Commission recommended that local governments use a financial adviser in these matters. He noted that estimated first-year savings from refinancing using general obligation bonds would amount to approximately $115,000. Council Member Waldorf asked whether consideration had been given to refinancing of other debt. Mr. Baker said yes, noting that this possibility could be reconsidered in the near future.

Council Member Capowski said if the $115,000 in projected first-year savings included all bond sales costs, he could not think of any reason not to proceed in this manner. Mr. Horton noted that some persons might argue that the Town would be adding to its general obligations. Mayor Broun stated that Certificates of Participation were practically, but not legally, an obligation of the Town. He added that although certificates of participation offered lesser savings, they did offer a six month lead time advantage over general obligation bonds. Mr. Baker noted that it would take approximately two or three months to complete the necessary steps to issue certificates of participation. Noting that a referendum for general obligation bonds for parking facility refinancing might fail, Mayor Broun said he was not arguing in favor of issuing certificates of participation.

Council Member Brown asked whether it would take additional time for Local Government Commission authorization in the event that a possible general obligation refinancing issue failed. Mr. Baker said yes. Council Member Capowski inquired about the possibility of pursuing certificates of participation and general obligation bonds simultaneously. Mr. Horton said he believed that the Local Government Commission would recommend against this course of action.

Council Member Waldorf noted that interest rates for municipal bond issues lagged somewhat behind the general market. Mr. Baker said this was generally correct, adding that he did not anticipate significant changes in municipal bond rates in the near term. Mr. Horton said rates were still quite favorable and considerable savings might be possible.

Mayor Broun said the Town needed to move relatively quickly whether a general obligation bond or certificates of participation course of action was selected. He inquired whether the Council might entertain referral of the matter to the Manager. Council Member Brown asked whether the staff would assess the need for a financial adviser. Mr. Horton said yes, adding that a public hearing would be required for either of the two options. Mayor Broun inquired when the staff could report back. Mr. Horton said it would not take very long to prepare a procedural memorandum.

THE COUNCIL CONCURRED BY CONSENSUS TO REQUEST A FOLLOW-UP REPORT FROM THE MANAGER ON OPTIONS FOR REFINANCING OF THE TOWN'S PARKING FUND FACILITY DEBT.

Council Member Chilton inquired about the possibility of using a graduate student or Ph.D. student to handle GIS matters, rather than hiring a full-time staff person at an estimated cost of $40,000 per year. Mr. Horton said a part-time person had been used for the past several years. He added that staff would be glad to explore this matter further. Council Member Chilton inquired about the process for expending hotel-motel tax funds for visitor services. Mr. Horton said the Town was obligated to provide ten percent of hotel-motel tax funds for visitor service or cultural affairs programs. He added that the staff would respond to Council guidance in this regard, preferably prior to the Council's summer recess.

Mayor Broun requested that staff explore possibilities for increasing the hotel-motel tax allocation while maintaining a zero property tax increase budget.

Council Member Protzman inquired about the status of the Town services catalog. Mr. Horton said this project was well underway. Council Member Protzman asked whether the staff had any new opinions about rollout refuse collection. Mr. Horton said he still believed it was a useful collection method which worked well. He added that staff would be glad to resubmit an abbreviated proposal on this matter to the Council.

Council Member Brown suggested that the staff examine a fee-based system for refuse collection. Mr. Horton said this work could not be completed for consideration with the 1994-1995 proposed budget.

Council Member Waldorf inquired whether current collection equipment could be used if the Town converted to a rollcart system in the future. Mr. Horton said the Town could use or adapt its refuse collection equipment for a variety of different collection methods including rollcarts. Council Member Brown suggested that rollcart collection be examined in relation to a fee-based pricing system. Mayor Broun said a unit-based pricing system would require a major study, particularly related to capital investment. Mr. Horton said the staff could update its report from last year on rollout refuse collection.

Council Member Protzman requested a three-year history of how the Town's employee benefits package had evolved. He also requested information about deductibles for the Town's employee health insurance programs. Noting that many businesses were funding salary and merit increases out of frozen positions or attrition, Council Member Protzman requested that the staff investigate this possibility for the Town. He also emphasized the importance of rewarding extraordinary employees with extraordinary merit for their efforts.

Council Member Brown inquired about the possibility of increases in landfill tipping fee charges. Mr. Horton said the preliminary budget report indicated that tipping fees might increase by as much as $2 per ton. Council Member Brown requested an explanation of landfill fund reserves for future landfill siting. She also requested an accounting of trolley expenses and costs and an assessment and evaluation of the Town's organizational memberships.

Mr. Horton said the staff could give a report on how funds were used as a starting point.

Council Member Waldorf said it was somewhat more difficult to evaluate Town services without benefit of a services catalog. Council Member Waldorf also said she concurred with Council Member Protzman's suggestion of funding employee compensation increases at least partially out of attrition vacancies and frozen positions. Noting that she was very impressed with the Police Department's community policing efforts to date, Council Member Waldorf requested that the staff attempt to prepare a zero tax increase budget including six additional police officers. Council Member Capowski expressed his concurrence with this proposal.

Council Member Protzman inquired how program funding for the DARE program was utilized. Mr. Horton said staff could do a follow-up report on this matter. Council Member Protzman requested that the Manager's options include a scenario in which the DARE program was not funded in lieu of funding an additional police officer position. Mayor Broun said Mr. Wallace had made some interesting points in his remarks. He noted the importance of having a good drug prevention program in the local schools.

Council Member Protzman inquired about the possibility of accelerating the process for advertising and hiring of new police officers. Mr. Horton said he did not think it was a problem to get this process underway.

Noting that the biggest single item under consideration was a pay increase for Town employees, Council Member Capowski asked what had been assumed about health insurance benefits. Mr. Horton said although it was difficult to anticipate developments in this area, staff could report back on this area. Council Member Powell asked whether the Council had agreed to a pay increase for employees. Mayor Broun stated that there had been no agreements to this point.

Council Member Capowski said he hoped that the Town was not being so frugal that a larger tax increase would be needed the following year. Mr. Horton said staff was attempting to respond to Council instructions of no tax increase for 1994-1995. Council Member Capowski inquired whether the Council had an exhaustive budget options list. Mr. Horton said no, noting that the area of largest options was with regard to capital improvements. Council Member Capowski said it was difficult to keep all of the Council's budget decisions in mind when they were separated by two or three weeks.

Council Member Waldorf asked whether Council Member Capowski was requesting a longer list of options. Council Member Capowski said yes. Mayor Broun said he was not sure what else the Manager could do in this regard. Mayor Broun added that he was comfortable with a zero tax increase budget. Council Member Capowski inquired whether any other major expenses were anticipated in the near future. Mr. Horton said the preliminary budget report had been based on the best possible current information. Council Member Protzman said he was comfortable with the staff providing a short list of options to the Council.

Council Member Capowski inquired about the status of library building lease negotiations with the Principal's Executive Program. Ms. Loewenthal said the staff hoped to bring a proposed lease agreement before the Council in April. Council Member Capowski suggested that the staff work on getting a lease with the University for ball fields in the Glen Lennox and Cleland Drive areas. Mayor Broun said he hoped the University would respond positively to requests to lease the fields. Council Member Pavão said the Manager was pursuing these options with gusto at the Council's direction. Mr. Horton said the Council's instructions were very clear in this regard. Council Member Capowski asked whether the amount of parks and recreation bonds to be issued could be reduced by developing one less ball field. Council Member Pavão said the Parks and Recreation Commission would request that the Council issue additional bonds for a number of parks and recreation projects. Council Member Waldorf stated that it would cost approximately $80,000 to make necessary improvements to the four Glen Lennox fields.

Council Member Powell asked whether the proposed budget included projected revenues from the lease of the old library building. Mr. Horton said no revenue would be reflected until a firm estimate was in place. Council Member Powell requested a report on the use of $95,000 for public works maintenance of public housing neighborhoods and its impact on housing maintenance staff. Mr. Horton said staff could prepare a detailed report to the Council. Council Member Powell also requested that the report include information about parks and recreation maintenance of public housing grounds.

Council Member Brown inquired about staff input on options for cutting expenses. Mr. Horton said there had been a number of concerns expressed by staff members about salary and benefits matters. He stated that many employees felt that salaries were not competitive in the Triangle region. Council Member Brown inquired about the status of restructuring departments as a means of reducing costs. Mr. Horton said staff could update its earlier report to the Council. Council Member Brown inquired about the process for increasing the University's fire protection contributions from the State. Mr. Horton said the process was to work with the legislative delegation to encourage an increase in this funding level. Council Member Brown asked whether it was preferable for the Council to set up a meeting with the local legislative delegation. Mr. Horton suggested that Mayor Broun make contact with the legislative delegation and possibly adopt a formal resolution to forward to the delegation. Council Member Waldorf inquired when the funding level had been set. Mr. Horton said 1983. Mayor Broun said the Town had received maximum support from the local legislative delegation in this regard in the past.

Council Member Capowski inquired why State-shared revenues such as utility and franchise taxes were frozen at their current levels. Mr. Baker stated that growth from these taxes was being retained by the State of North Carolina. Mr. Horton said the staff looked forward to the time when this freeze ended.

Council Member Chilton inquired when the funding level of $70,000 for human service agencies had been established. Mr. Horton said staff could provide a follow-up report.

Mayor Broun requested that the Manager's budget maintain a zero tax increase while accommodating six additional officers, additional hotel-motel funding and increased funding for other agencies. Mayor Broun said he trusted in the staff's creativity and diligence to provide options in this regard. Mr. Horton said the Town would do its very best in this regard.

Noting that Orange County taxes would be increasing due to necessary school improvements, Council Member Capowski emphasized the importance of keeping the Town's property tax level as low as possible. Council Member Pavão requested that the staff provide a report on what would be cut from the budget if the Council wished to fund all $729,000 of items included in the preliminary budget's

additions list. Council Member Protzman noted that the Manager's preliminary budget placed a healthy emphasis on maintenance.

Item 5 1994-1995 Public Housing Budget

Mr. Horton said no Council action was requested on the proposed public housing budget this evening. He stated that the staff was seeking Council guidance this evening and recommended referral of comments and the proposed budget to the Housing Board and Public Housing Residents Council. Mr. Horton briefly reviewed the elements of the proposed budget, noting that emphasis would be placed on refurbishment of approximately sixty public housing units. He added that a five-year refurbishing cycle for public housing units was proposed.

Charles Paddock, a member of the Housing and Community Development Board, speaking as private citizen, thanked the Manager for his report. He stated that the report was a good start to support the Town's public housing needs. Mr. Paddock said he hoped that the Council would increase the Town's allocation for public housing programs. Noting that HUD regulations required that a minimum of approximately $200,000 be maintained in HUD reserve, Mr. Paddock inquired about the possibility of allowing the Town's Housing Department to spend money from the fund with the Town serving as a guarantor of the fund. He also noted that only fourteen apartment units had been vacated during the current year compared to fifty apartments in an average year. Mr. Paddock suggested that the Mayor and Council meet with the Residents Council and Housing Board to discuss concerns about the proposed housing budget. Mayor Broun inquired whether the Manager's suggested five-year cycle plan for refurbishment of public housing units was adequate. Mr. Paddock said yes.

Council Member Powell said she thought the preventive maintenance plan was a good one which would work. She inquired whether any consideration had been given to contracting with public housing employees for maintenance of units.

Adele Thomas emphasized the importance of maintaining the Town's public housing units in good repair. Ms. Thomas said she hoped the Council would carefully examine the needs of residents in their decision-making processes. She also stated that the Town had not been providing sufficient funding for the community's public housing needs.

Joanne Shirer, Chairperson of the Public Housing Residents Council,

thanked the staff and Council for their assistance to date. She said the overall attitudes of residents had changed positively since the initiation of physical improvements in public housing.

Ms. Shirer said the Residents Council would strive to assure maximum involvement by public housing residents in the management of their communities. Council Member Capowski thanked Ms. Shirer for her work with the Residents Council.

Council Member Chilton invited interested Council Members to attend the Housing and Community Development Board's next meeting on March 22nd.

COUNCIL MEMBER WALDORF MOVED, SECONDED BY COUNCIL MEMBER CHILTON, TO REFER THE MATTER TO THE HOUSING AND COMMUNITY DEVELOPMENT ADVISORY BOARD, PUBLIC HOUSING RESIDENT'S COUNCIL AND STAFF. THE MOTION WAS ADOPTED UNANIMOUSLY (8-0).

Item 6 Eubanks Road Park and Ride Lot

Ms. Loewenthal noted that the Town was both a regulator and owner of the proposed park and ride lot. She stated that staff recommended approval of the application.

Council Member Capowski inquired about the possibility of a bicycle lane easement across the United Parcel Service property on Eubanks Road. Ms. Loewenthal said the Town was not in a better position at present than in the future to negotiate with United Parcel Service in this regard.

Noting that two Planning Board members had voted against the proposed park and ride lot due to the absence of a Northwest Area plan, Council Member Protzman asked whether the park and ride lot was a good idea. Mr. Waldon said yes, noting that the Town had attempted to secure park and ride lots on each of the major entranceway corridors into the Town and that this parcel had been identified in a corridor study as the optimal one.

COUNCIL MEMBER PROTZMAN MOVED, SECONDED BY COUNCIL MEMBER PAVÃO, TO ADOPT RESOLUTION 1A. THE MOTION WAS ADOPTED UNANIMOUSLY

(8-0).

A RESOLUTION APPROVING AN APPLICATION FOR SPECIAL USE PERMIT FOR EUBANKS ROAD PARK-RIDE LOT (SUP-18-8) (94-3-16/R-1a)

BE IT RESOLVED by the Council of the Town of Chapel Hill that it finds that the Special Use Permit application, proposed by the Town of Chapel Hill, on property identified as Chapel Hill Township Tax Map 18, Lot 8B and 8E, if developed according to the site plan dated December, 1993, and the conditions listed below, would:

1. Be located, designed, and proposed to be operated so as to maintain or promote the public health, safety, and general welfare;

2. Comply with all required regulations and standards of the Development Ordinance, including all applicable provisions of Articles 12, 13, 14 and 18, and with all other applicable regulations;

3. Be located, designed, and proposed to be operated so as to maintain or enhance the value of contiguous property, or be a public necessity; and

4. Conform with the general plans for the physical development of the Town as embodied in the Development Ordinance and in the Comprehensive Plan.

BE IT FURTHER RESOLVED that the Town Council hereby approves the application for Special Use Permit for the Eubanks Road Park-Ride Lot in accordance with the plans listed above and with conditions listed below:

Stipulations Specific to the Development

1. a. That construction begin by March 16, 1996 (two years from the date of Council approval) and be completed by March 16, 1997 (three years from the date of Council approval).

b. That design modifications shall be considered which might increase landscaped areas by providing some portion of the parking spaces as compact-size parking spaces.

2. Required Improvements:

a. That a five foot sidewalk, built to Town standards, be provided along the property frontage on Eubanks Road.

b. That sidewalk be installed to link the passenger waiting area to the sidewalk along Eubanks Road.

c. That Eubanks Road be improved along the property frontage to half of a 51-foot cross section with curb and gutter and a 5-foot striped bikelane.

d. That left-turn and right-turn turn lanes be provided on Eubanks Road at the park-ride lot entrances.

e. That half of a 100-foot right-of-way be dedicated along the property's Eubanks Road frontage prior to issuance of a Zoning Compliance Permit.

f. That bike racks and bike lockers be provided.

g. That the parking spaces and drive aisles be constructed to Town standards, and that the bus drive and entrances be constructed to withstand bus traffic.

h. That one access point be designated "entrance only" and the other access point be designated "exit only".

2. Standards Specific to Park-Ride Lots:

a. That the proposed facility shall be accessible by public bus transportation and bus passenger shelters shall be provided.

b. That the zoning lot on which a park-ride terminal is located shall front on an arterial or collector street and have direct access thereto.

3. Recombination Plat: That a recombination plat be submitted to the Town Manager combining the two zoning lots into a single lot prior to issuance of a Zoning Compliance Permit.

Stipulations Related to State and Federal Government Approvals

4. State or Federal approval(s): That any required State or Federal permits or encroachment agreements be approved and copies of the approved permits and agreements be submitted to the Town of Chapel Hill prior to the issuance of a Zoning Compliance Permit.

5. NCDOT Approvals: That plans for improvements to state-maintained roads be approved by NCDOT prior to issuance of a Zoning Compliance Permit.

Stipulations Related to Landscape Elements

6. Landscape Plan Approval: That a detailed landscape plan, landscape maintenance plan, and lighting plan be approved by the Appearance Commission and Town Manager prior to the issuance of a Zoning Compliance Permit. The Landscape Plan shall include:

Type D buffer (minimum width 30 feet), along the property's Eubanks Road frontage.

Type B buffer (minimum width 10 feet), along the eastern and western property lines.

Type C buffer (minimum width 20 feet), along the northern property line.

In addition, the landscape plan shall demonstrate that 35% of the paved areas will be shaded in accordance with Development Ordinance requirements.

7. Landscape Protection Plan: That a detailed Landscape Protection Plan be approved by the Town Manager prior to issuance of a Zoning Compliance Permit. The Landscape

Protection Plan shall include a tree survey and tree protection details for the vegetated areas to be preserved.

8. Preservation of Large Trees Along Western Property Line: That design modifications shall be considered which might preserve some of the large trees existing along the western property line.

Stipulations Related to Utilities

9. Utility/Lighting Plan Approval: That the final utility/lighting plan be approved by Duke Power, Southern Bell, and the Town Manager, before issuance of Zoning Compliance Permit. The property owner shall be responsible for assuring that these utilities are extended to serve the development.

Miscellaneous Stipulations

10. Waste Management Plan: That a detailed solid waste management plan, including a recycling plan, and a plan for management of construction debris, be approved by the Town Manager prior to the issuance of a Zoning Compliance Permit.

11. Detailed Plans: That final detailed site plan, utility/lighting plans, stormwater management plan (with hydrologic calculations), be approved by the Town Manager before issuance of a Zoning Compliance Permit, and that such plans conform to the plans approved by this application and demonstrate compliance all applicable conditions and the design standards of the Development Ordinance and the Design Manual.

12. Sight Triangle: That sight triangles be shown on the final plans and plat, and that the planting plans respect the necessary sight triangles for safe movement in and out of the site.

13. Erosion Control: That a soil erosion and sedimentation control plan be approved by the State Division of Environmental Management and the Town Manager before issuance of a Zoning Compliance Permit.

14. Silt Control: That the applicant take appropriate measures to prevent and remove the deposit of wet or dry silt on adjacent paved roadways.

15. Continued Validity: That continued validity and effectiveness of this approval is expressly conditioned on the continued compliance with the plans and conditions listed above.

16. Non-severability: That if any of the above conditions is held to be invalid, approval in its entirety shall be void.

BE IT FURTHER RESOLVED that the Council of the Town of Chapel Hill hereby approves the Special Use Permit for the Eubanks Road Park-Ride Lot in accordance with the plans and conditions listed above.

This the 16th day of March, 1994.

Item 8 Cable Television Rates

Mr. Horton said in essence a federal process required that the Town determine whether it wished to regulate basic cable television service rates. He stated that staff had been initially advised that Cablevision had overcharged customers six cents per month for cable service over the past seven months. Mr. Horton noted that new Federal Communications Commission rules appeared to have negated the need to refund this overcharge.

Randall Rudin, Cablevision's legal representative, said Cablevision might have used an incorrect inflation factor in the billing of its customers. Mr. Rudin stated that Cablevision was in agreement with the Manager's revised recommendation. He also said Cablevision would appreciate Council consideration of the proposed deferral.

COUNCIL MEMBER CAPOWSKI MOVED, SECONDED BY COUNCIL MEMBER CHILTON, TO ADOPT RESOLUTION 3, AS REVISED. THE MOTION WAS ADOPTED UNANIMOUSLY (8-0).

A RESOLUTION REGARDING REGULATION OF RATES CHARGED FOR BASIC CABLE SERVICE AND RELATED EQUIPMENT (94-3-16/R-3)

WHEREAS, the Town Council of Chapel Hill, North Carolina ("Council") is a Grantor of a Cable Television Franchise Ordinance ("Ordinance") adopted by the Council on November 19, 1979 for the cable television system now owned by Time Warner Entertainment Company, L.P. ("Grantee"); and

WHEREAS, in accordance with applicable provisions of the Cable Consumer Protection and Competition Act of 1993 (hereinafter the "Cable Act") and rules adopted by the Federal Communications Commission ("FCC"), the Town has undertaken all appropriate procedural steps to regulate the basic cable service tier and related equipment; and

WHEREAS, in accordance with applicable FCC regulations, on or about September 1, 1993 the Town filed FCC Form 328 - Certification of Franchising Authority to Regulate Basic Cable Service Rates and Initial Finding of Lack of Effective Competition - with the FCC; and

WHEREAS, in accordance with applicable FCC regulations, on or about October 25, 1993 the Town passed and adopted a Rate Regulation Ordinance; and

WHEREAS, on or about October 28, 1993 the Town sent to Grantee a notification letter regarding FCC certification via Form 328 and the adoption of the rate regulation ordinance and requested that Grantee complete FCC Form 393 - Determination of Maximum Initial Permitted Rates for Regulated Cable Programming Services and Equipment - within thirty (30) days; and

WHEREAS, on or about November 23, 1993 the Town received Grantee's completed FCC Form 393 which is attached and made a part of this resolution as Exhibit A; and

WHEREAS, the Moss & Barnett law firm was asked by the Town to provide assistance for review of Grantee's FCC Form 393; and

WHEREAS, pursuant to FCC regulations, on or about November 24, 1993 the Town sent a letter notifying Grantee that the time period for the Town's review of FCC Form 393 would be extended for an additional ninety (90) day period; and

WHEREAS, Moss & Barnett issued a preliminary report dated January 21, 1994 identifying certain issues regarding Grantee's response before a final decision could be reached by the Town, which preliminary report is attached and made a part of this resolution as Exhibit B; and

WHEREAS, on or about February 7, 1994 Grantee responded to Moss & Barnett and the Town, which response is attached and made a part of this resolution as Exhibit C; and

WHEREAS, the Town, in order to accomplish its review in a timely manner, scheduled for its regular meeting date of March 16, 1994 sufficient time for the purpose of reviewing Grantee's FCC Form 393 and related rate regulation information; and

WHEREAS, the Town conducted a meeting open to the public on March 16, 1994 to ensure that all interested parties had ample opportunity to present information to the Town; and

WHEREAS, based upon the Town's March 16, 1994 meeting and all reports and advice from Moss & Barnett, the Town determined to make the below listed Conclusions and Orders for Action;

NOW, THEREFORE, in a regular meeting of the Town Council of the Town of Chapel Hill dated March 16, 1994, the Council resolved the following:

Conclusions

1. Grantee utilized an incorrect inflation factor when completing FCC Form 393 for lines 401 and 402, thereby causing an artificially high maximum initial permitted rate per channel.

2. Grantee's request for cable rate approval for the current rate for the basic service tier (exclusion of any franchise fee) of $7.51 is denied.

3. The Town concludes the maximum permitted rate for the basic service tier (exclusive of any franchise fee) shall be $7.45.

4. The Town has an obligation to timely act upon the pending rate application consistent with now current FCC rules and regulations. However, if the FCC alters the benchmark calculations resulting in a lower reasonable rate for Chapel Hill subscribers, the Town has an obligation to area subscribers to reconsider the pending analysis consistent with the changes the FCC may make in its regulations.

5. The Town hereby adopts and makes a part of this resolution all attachments and exhibits referenced above.

Orders for Action

Based on the foregoing conclusions, the Town hereby enters the following orders:

1. Pursuant to FCC regulations, from the date of this order and until further order of the Town, Grantee shall be permitted to charge an initial rate for the basic service tier of $7.45.

2. Grantee shall immediately undertake all necessary steps, in accordance with applicable FCC regulations, to refund to all subscribers $.06 per month, and any franchise fee assessed thereon, plus interest, computed at the applicable published rates for tax refund and additional tax payments, which has been overcharged since September 1, 1993 as a result of the difference between Grantee's requested basic service rate of $7.51 and the approved basic service rate of $7.45.

This requirement is stayed for 60 days upon mutual agreement with Cablevision/Time Warner Cable to permit evaluation of new Federal Communications Commission rules anticipated to be issued by the Commission on or about March 24th.

3. The Town reserves the right to reconsider this resolution within one hundred twenty (120) days of its adoption for the sole purpose of further reducing rates should future modifications to FCC rules and regulations so provide and permit.

4. This resolution shall not be reconsidered should any further analysis pursuant to future FCC rules and regulations result in higher rates to subscribers unless such future FCC rules and regulations mandate that this Town order such an upward adjustment.

This the 16th day of March, 1994.

Item 9 Consent Agenda

Council Member Brown requested removal of item e. Council Member Capowski requested removal of items c and l.

COUNCIL MEMBER CHILTON MOVED, SECONDED BY COUNCIL MEMBER PAVÃO, TO ADOPT THE CONSENT AGENDA (RESOLUTION 4), EXCEPTING ITEMS C, E AND L.

A RESOLUTION ADOPTING VARIOUS RESOLUTIONS AND ORDINANCES

(94-3-16/R-4)

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 (excepting item 1 submitted by Mayor Broun) in regard to the following:

a. Calling hearing on watershed technical amendment (R-5).

b. Calling hearing on pedestrian plan (R-6).

c. Calling hearing on potential downtown district service plan changes (R-7).

d. Nomination of old cemetery to National Register of Historic Places (R-8).

e. Compactor fees (O-1 & R-8.1).

f. Additional meters in Parking Lot #3 (R-8.2).

g. Deleted.

h. Street closures for Bicentennial events (O-2&R-8.3).

i. Receipt and referral of U.S. 15-501 corridor study to advisory boards (R-9).

j. Deleted.

k. Teen Center lease renewal (R-11).

l. Support of Carrboro Tax Fairness Act (R-12).

This the 16th day of March, 1994.

A RESOLUTION CALLING A PUBLIC HEARING ON REVISIONS TO THE WATERSHED PROTECTION REGULATIONS (ARTICLE 10 OF THE TOWN'S DEVELOPMENT ORDINANCE) (94-3-16/R-5)

WHEREAS, the Council on June 28, 1993 adopted Article 10 of the Development Ordinance, regarding watershed protection, in order to comply with State watershed protection regulations; and

WHEREAS, the Division of Environmental Management has requested that the Town make revisions to the Town's adopted ordinance;

NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council calls a public hearing for Monday, April 18, 1994 at 7:30 p.m. in the Council Chamber, Town Hall, 306 N. Columbia Street, Chapel Hill to consider revisions to the Watershed Protection Regulations in the following areas:

1. Section 10.3.2, Application to Existing Single Family and Two-Family Development;

2. Section 10.8.l, Application of Variances from the Board of Adjustment.

BE IT FURTHER RESOLVED that the Council authorizes the Manager to submit a petition to the Environmental Management Commission requesting a modification of State rules as they apply to Chapel Hill for permitting two-family development on deeded single family lots, as authorized under Chapel Hill's Development Ordinance.

This the 16th day of March, 1994.

A RESOLUTION RECEIVING THE PEDESTRIAN PLAN, POLICIES AND GUIDELINES AND CALLING A PUBLIC HEARING FOR APRIL 18, 1994 (94-3-16/R-6)

WHEREAS, the Town of Chapel Hill wishes to promote pedestrian activity and encourage walking as an alternative mode of transportation; and

WHEREAS, the 1994 Chapel Hill Pedestrian Plan, Policies and Guidelines, has been developed to met the Town's goal of increasing safe pedestrian movement; and

NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Pedestrian Plan is received and a public hearing is called for April 18, 1994 to discuss the Plan.

This the 16th day of March, 1994.

A RESOLUTION RECOMMENDING THAT THE OLD CHAPEL HILL CEMETERY BE SUBMITTED FOR LISTING IN THE NATIONAL REGISTER OF HISTORIC PLACES (94-3-16/R-8)

WHEREAS, the Town of Chapel Hill has submitted a nomination of the Old Chapel Hill Cemetery to the National Register of Historic Places; and

WHEREAS, as a Certified Local Government, the Town of Chapel Hill is invited to make a recommendation on whether the Old Chapel Hill Cemetery meets the criteria for National Register listing; and

WHEREAS, the preservation consultants who prepared the Nomination present evidence that the Old Chapel Hill Cemetery meets the criteria for National Register listing;

NOW, THEREFORE, BE IT RESOLVED, by the Council of the Town of Chapel Hill that the Council has reviewed the nomination for the Old Chapel Hill Cemetery and finds that the property does meet the criteria for listing in the National Register of Historic Places as stated in Section 8 of the report. The Council, therefore, recommends that the property be submitted for listing in the Register.

This the 16th day of March, 1994.

A RESOLUTION AUTHORIZING THE TOWN MANAGER TO INSTALL ADDITIONAL METERS IN LOT #3 (94-3-16/R-8.2)

WHEREAS, the Town operates parking meters in both on-street and off-street locations; and

WHEREAS, the demand for such metered parking has increased in Town Lot #3;

BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council authorizes the Town Manager to purchase and install additional meters in Lot #3.

This the 16th day of March, 1994.

AN ORDINANCE TEMPORARILY REMOVING PARKING FROM PORTIONS OF FRANKLIN, HENDERSON AND SOUTH GRAHAM STREETS ON SUNDAY, APRIL 24, 1994 (94-3-16/O-2)

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

That on the 24th day of April, 1994 between the hours of 11:00 and 9:00 p.m., there shall be no parking on either side of Franklin Street between Boundary Street and the Town limits, or on either side of Henderson Street between Franklin and Rosemary Street, or on either side of South Graham Street between Franklin Street and Cameron Avenue between the above hours.

The Police Department of the Town of Chapel Hill is hereby authorized to cover the parking meters on said streets during such hours on said date. The Police Department is further authorized to remove, tow, and impound automobiles and vehicles of any kind which are parked on said streets during such hours in contravention of this Ordinance. In light of the large number of pedestrians expected in this area, the Council hereby determines that vehicles in the restricted area would constitute a special hazard requiring prompt removal. The owner shall be responsible for and pay storage and moving costs of any vehicle removed pursuant to the provisions of the Ordinance, and the Police Department shall use reasonable diligence to notify the owner of the removal and storage of such vehicles.

This the 16th day of March, 1994.

A RESOLUTION AUTHORIZING THE CLOSURE OF FRANKLIN STREET BETWEEN BOUNDARY STREET AND THE TOWN LIMITS, HENDERSON STREET BETWEEN ROSEMARY AND FRANKLIN STREETS, AND OF GRAHAM STREET BETWEEN FRANKLIN STREET AND CAMERON AVENUE (94-3-16/R-8.3)

BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council hereby directs the closing of Franklin Street between Boundary Street and the Town limits, and of Henderson Street between Rosemary and Franklin Streets and of Graham Street between Franklin Street and Cameron Avenue on Sunday, April 24, 1994, from 1:00 p.m. to 9:00 p.m., to allow the holding of the Chapel Hill Revisited Bicentennial celebration and cleanup of the street following the celebration.

This the 16th day of March, 1994.

A RESOLUTION RECEIVING THE U.S. 15-501 CORRIDOR STUDY AND REFERRING THE STUDY TO THE TOWN TRANSPORTATION BOARD AND PLANNING BOARD FOR REVIEW AND RECOMMENDATIONS (94-3-16/R-9)

WHEREAS, the U.S. 15-501 Corridor Study has been completed and submitted to the Town for review and consideration.

NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Corridor Study be received and referred to the Transportation Board, Planning Board and Manager for their review and recommendations.

This the 16th day of March, 1994.

A RESOLUTION RENEWING A LEASE FOR A PORTION OF THE POST

OFFICE/COURT BUILDING FOR USE AS A TEEN CENTER (94-3-16/R-11)

WHEREAS, the Council of the Town of Chapel Hill, on April 12, 1993, pursuant to G.S. 160A-272, authorized the Manager to enter into a lease for a portion of the Post Office/Court Building for a Teen Center; and

WHEREAS, the term of said lease was for one year, beginning on April 16, 1993, and ending on April 16, 1994; and

WHEREAS, Franklin Street Teen Center, Inc. entered into a lease with the Town for approximately 2,400 square feet of space in the basement of the Post Office/Court Building on April 16, 1993, and has requested that the lease be renewed;

NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council approves of, and authorizes the Town Manager to enter into on behalf of the Town, a renewal agreement for the lease to the Franklin Street Teen Center, Inc. of approximately 2,400 square feet in the basement of the Post Office/Court Building, at 179 East Franklin Street, for the operation of a Teen Center, for a term of one year commencing on April 16, 1994, said agreement to contain language substantially the same as contained in the attached lease agreement.

This the 16th day of March, 1994.

Council Member Capowski asked how the public hearing for the Downtown Service District would be advertised. Assistant to the Manager Greg Feller said newspaper ads plus notices to area property owners would be used. Council Member Capowski said he was concerned that not many people attended Downtown Commission meetings. Mayor Broun said the hearing was a useful tool to receive comments on downtown-related concerns.

COUNCIL MEMBER CAPOWSKI MOVED, SECONDED BY COUNCIL MEMBER WALDORF, TO ADOPT RESOLUTION 7. THE MOTION WAS ADOPTED UNANIMOUSLY (8-0).

A RESOLUTION CALLING A PUBLIC HEARING ON POTENTIAL CHANGES IN THE SERVICE PLAN FOR THE DOWNTOWN SERVICE DISTRICT (94-3-16/R-7)

BE IT RESOLVED by the Town Council of Chapel Hill that the Council hereby calls a public hearing at 7:30 pm on May 17, 1994, to receive citizens' comments on the following potential changes to the downtown service district service plan as originally adopted in 1989 and subsequently amended:

* add a new category of supplemental police protection

* add a new category of supplemental street lighting

* delete one or more service categories if deemed appropriate.

This the 16th day of March, 1994.

Council Member Brown said cardboard could be put into compactors. Mr. Horton said staff hoped that people would recycle cardboard, plastic and other items. Public Works Director Bruce Heflin said recycling containers were located in the area of the two compactors. Council Member Brown asked whether one of the compactors could be used for cardboard recycling. Mr. Horton said although this was possible, there was no other provision in the area for the removal of refuse.

Noting the importance of making waste reduction an important option, Council Member Brown said she would vote against the proposed ordinance and resolution.

COUNCIL MEMBER PROTZMAN MOVED, SECONDED BY COUNCIL MEMBER CAPOWSKI, TO ADOPT ORDINANCE 1. THE MOTION WAS ADOPTED BY A VOTE OF 7-1, WITH COUNCIL MEMBER BROWN VOTING NO.

AN ORDINANCE REVISING CHAPTER 8 OF THE TOWN CODE RELATING TO THE ASSESSMENT OF FEES FOR REFUSE COMPACTOR USAGE(94-3-16/O-1)

BE IT ORDAINED BY THE COUNCIL OF THE TOWN OF CHAPEL HILL AS FOLLOWS:

SECTION 1. - Sec. 8-21; "Definitions" The definition of compactor is added as follows:

Compactor. A electrically operated, fully enclosed bulk commercial refuse container, provided by the town, that is accessible for disposal of refuse only by use of an assigned key.

SECTION 2. - Sec. 8-23; "Refuse receptacles required" is revised to read as follows:

Every person producing or having garbage or household refuse collected by the town shall provide and keep on the premises or property occupied or used by him/her, refuse receptacles or bulk containers to handle all accumulations of garbage and household refuse on said premises or property in the interval between collections by the town. (The exception are those premises/properties located in a designated downtown disposal area served by a town-provided compactor and those premises/properties outside the designated area that request and are accepted by the town manager to be included.) Every such person shall dispose of all household refuse and garbage which accumulates on his/her premises in a clean and sanitary manner by placing it in the refuse receptacle, yard waste containers, bulk containers or compactors in order to protect the safety and health of town employees and the

public at large. The town will not pickup from condemned refuse receptacles, yard waste containers and bulk containers.

SECTION 3. - SEC. 8-27; "Refuse receptacles, bulk containers for retail, wholesale and commercial establishments" is revised to read as follows:

Retail, wholesale and commercial establishments shall be limited to seven (7) refuse receptacles, or one bulk container unless arrangements have been made for additional collections and services. In the event that an establishment is located in a designated downtown disposal area served by a town-provided compactor, refuse receptacles used for any purpose other than transporting waste generated on the premises to the compactor will not be serviced by the town.

SECTION 4. - Sec. 8-43; "Collection from businesses and other occupancies within and near economic capital development project areas" is revised and retitled to read as follows:

"Collection from businesses and other occupancies within and near designated downtown compactor areas".

Notwithstanding any other provision of this chapter, the town may establish designated downtown compactor service areas for refuse collection services for businesses and other occupancies in and near the downtown area. The refuse collection procedures for such an area may be established by regulations promulgated by the town manager. The following areas shall be designated as being located within a designated downtown compactor area:

(a) North 100 block of East Franklin Street and nearby properties. (Lots numbered 1 through 35 on Chapel Hill Township Tax Map 80A dated April 1, 1963, with revisions through 1991), including properties abutting the north side of East Franklin Street with current postal addresses of 101 East Franklin Street through 179 East Franklin Street, properties abutting the South side of the 100 block of East Rosemary Street and properties abutting the east side of the 100 block of South Columbia Street. The effective dates of the compactor service for the above properties shall be established by the Town Manager.

(b) Reserved.

SECTION 5. - A new Sec. 8.45 is added as follows:

"Collection of service fees"

The charges to be assessed and collected for disposal services within the designated downtown disposal area will be established annually by Council through the adoption of the annual budget.

This the 16th day of March, 1994.

COUNCIL MEMBER WALDORF MOVED, SECONDED BY COUNCIL MEMBER PROTZMAN, TO ADOPT RESOLUTION 8.1. THE MOTION WAS ADOPTED BY A VOTE OF 7-1, WITH COUNCIL MEMBER BROWN VOTING NO.

A RESOLUTION ESTABLISHING FEE SCHEDULE FOR COMPACTORS IN NORTH 100 BLOCK OF EAST FRANKLIN STREET IN DOWNTOWN CHAPEL HILL

(93-3-16/R-8.1)

WHEREAS, the Town's Sanitation Division is using two compactors to replace existing dumpsters for commercial refuse in the north 100 block of East Franklin Street; and

WHEREAS, the Town wishes to recover costs for commercial refuse collection service at these compactors through a fee system based on use by individual businesses;

NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the following annual fee schedule is established to be effective May 1, 1994, for businesses using either of the two compactors in the north 100 block of East Franklin Street:

• 1 - 150 uses/year $150 annual fee

• 150 - 300 uses/year $350 annual fee

• 300+ uses/year $700 annual fee

This the 16th day of March, 1994.

Mayor Broun said a request had been received from Carrboro Mayor Kinnaird requesting support of a Tax Fairness Act concerning the taxation of catalog sales. Noting that a number of mail order firms in Orange County paid local taxes, Council Member Capowski expressed concern that the proposal would penalize local businesses such as Performance Bicycle and PHE, Inc. Council Member Chilton stated that Performance Bicycle was located in Chatham County. Noting that mail order businesses employed a significant number of people, Council Member Chilton said the Council faced an interesting dilemma in this matter.

Council Member Powell expressed concern that if the Resolution were adopted, catalog and mail order companies would likely increase their prices. Mayor Broun noted that he was putting the matter before the Council at Mayor Kinnaird's request. Council Member Protzman said although he did not think the proposal was a good one, it would not place a hardship on local businesses. Council Member Brown said although most people shopped locally, some items could only be obtained from catalogs.

COUNCIL MEMBER CHILTON MOVED, SECONDED BY COUNCIL MEMBER POWELL TO ADOPT RESOLUTION 12. THE MOTION WAS ADOPTED BY A VOTE OF 7-1, WITH COUNCIL MEMBER CAPOWSKI VOTING NO.

A RESOLUTION SUPPORTING ENACTMENT OF THE "TAX FAIRNESS FOR MAIN STREET BUSINESS ACT OF 1994" (94-3-16/R-12)

WHEREAS, our local retailers are suffering an unfair competitive burden simply because of a sales tax loophole that allows out-of-state retailers, such as catalog sales and telemarketing companies, to underprice local merchants; and

WHEREAS, our local retailers must pay this tax while they serve the local market; and

WHEREAS, our local governments have to pay to landfill or recycle thousands of tons of discarded catalogs each year; and

WHEREAS, our local citizens pay for the inequity by losing the benefits of the sales tax which helps our schools; and

WHEREAS, our local citizens also pay through higher taxes to landfill or recycle the discarded catalogs; and

WHEREAS, several states already collect sales taxes on out-of-state catalog and telemarketing sales, thereby showing that the recent advances in computer technology mean that the collection will not prove burdensome to the out-of-state companies; and

WHEREAS, their fairness in collecting sales taxes will relieve local taxpayers, including businesses; and

WHEREAS, the "Tax Fairness for Main Street Business Act", introduced by Senator Dale Bumpers, will allow State and local governments to collect sales taxes from out-of-state firms on purchases made by their residents; and

WHEREAS, the Federal Advisory Commission on Intergovernmental Relations estimates that $650 million in additional local tax would have been generated if it had been in effect in 1992; and

WHEREAS, out-of-state vendors use the facilities and resources of the states to which they send goods, including roads, landfills and recycling centers and bank and court systems;

NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council supports the enactment of the "Tax Fairness for Main Street Business Act of 1994" for equitable tax collection and join our local businesses in seeking relief from their unfair competitive situation.

This is the 16th day of March, 1994.

There were no information reports. No Executive Session was needed. The meeting concluded at 10:35 p.m.