MINUTES OF A REGULAR MEETING OF THE MAYOR AND COUNCIL OF THE TOWN

OF CHAPEL HILL, NORTH CAROLINA, MONDAY, MAY 23, 1994 AT 7:30 P.M.

Mayor Broun called the meeting 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 Assistant Town Manager Florentine Miller, Finance Director James Baker and Town Attorney Ralph Karpinos. Town Manager Cal Horton was ill and unable to attend the meeting.

There were no ceremonies.

Item 2 Hearing on Proposed Refinancing of Town Parking Facilities

Finance Director James Baker said projected savings of $65,000 to $95,000 per year were anticipated from the sale of Certificates of Participation to refinance the Town's parking facilities. He stated that the purpose of this evening's hearing was to receive public comment on the proposed refinancing. Mr. Baker also said staff recommended adoption of resolution 0.1 concerning findings about the proposed refinancing. He briefly reviewed the mechanics of Certificates of Participation, noting that an escrow account would be used to repay the bonds for the Town's parking facilities over a thirty-year period. Mr. Baker stated that the sale of up to $8.1 million of Certificates of Participation was authorized by the proposed resolution. He added that the resolution would also authorize the Manager and Finance Director to file an application with the Local Government Commission. Mr. Baker said staff would request approval of the refinancing and related documents on June 13th, following consideration of the request by the Local Government Commission on June 7th. He noted that sale of the Certificates of Participation was scheduled to occur on June 29th. Mr. Baker said the Town reserved the right to postpone the sale if interest rates were not favorable.

Noting that no citizens had signed up to speak on the matter, Mayor Broun said the refinancing proposal was a good one. Council Member Evans asked whether debt service could be repaid at an accelerated rate without penalties. Mr. Baker said bonds previously issued by the Town had call provisions which prevented paying them off before a certain date. He stated that the Certificates of Participation would likely have a similar provision. Council Member Evans asked why insurance was not needed for the certificates. Mr. Baker said the underwriters did not see the need for insurance.

COUNCIL MEMBER CAPOWSKI MOVED, SECONDED BY COUNCIL MEMBER PAVÃO, TO CLOSE THE PUBLIC HEARING. THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

COUNCIL MEMBER POWELL MOVED, SECONDED BY COUNCIL MEMBER WALDORF, TO ADOPT RESOLUTION 0.1. THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF CHAPEL HILL, NORTH CAROLINA, APPROVING THE INSTALLMENT PURCHASE FINANCING OF THE ACQUISITION OF ALL OR A PORTION OF THE TOWN'S PARKING FACILITIES TO EFFECT THE REFUNDING OF THE TOWN OF CHAPEL HILL PARKING REVENUE BONDS, SERIES 1991 AND MAKING CERTAIN FINDINGS AND DETERMINATIONS IN CONNECTION THEREWITH (94-5-23/R-0.1)

I. UNDERTAKING

WHEREAS, The Town Council (the "Council") of the Town of Chapel Hill, North Carolina (the "Town"), desires to provide for the acquisition of all or a portion of the Town's off-street parking facilities and the sites thereof (the "Parking Facilities") to effect the refunding of the Town of Chapel Hill, North Carolina Parking Revenue Bonds, Series 1991 (the "Series 1991 Bonds"); and

WHEREAS, in order to facilitate the refunding of the Series 1991 Bonds, the Council proposes to finance the acquisition of the Parking Facilities through an installment purchase contract (the "Contract") with the Town of Chapel Hill Public Facilities Corporation, Chapel Hill, North Carolina (the "Corporation"), obligating the Town to repay in installments the amount financed (including any reserves and financing costs) at a fixed annual interest rate of not more than 7.5% over a term of approximately 29 years, resulting in a total amount financed not to exceed $8,100,000; and

WHEREAS, pursuant to N.C.G.S. Section 160A-20, the Town is authorized to finance the acquisition of the Parking Facilities and the sites thereof by entering into an installment financing contract and a deed of trust which create in the Parking Facilities and the sites on which they are located a security interest to secure payment of the obligation thereby created; and

WHEREAS, subject to the prior approval of the Local Government Commission of North Carolina (the "LGC") pursuant to N.C.G.S. Section 159-148, the Town intends to finance the acquisition of the Parking Facilities pursuant to Section 160A-20 by executing and delivering to the Corporation the Contract providing for the financing of a principal amount not to exceed $8,100,000; and

WHEREAS, the Town has received a refunding analysis from its investment banking representative, Interstate/Johnson Lane, that a refunding of the Series 1991 Bonds would produce significant debt service savings to the Town; and

WHEREAS, the Town may apply for municipal bond insurance to guarantee payments by the Town under the Contract; and

II. UNDERTAKING NECESSARY

WHEREAS, the Town staff has advised the Council, and the Council hereby finds and determines, that the Town must acquire the Parking Facilities for purposes of refunding the Series 1991 Bonds so that the Town may realize debt service savings and benefit the Town and its residents; and

WHEREAS, the Council conducted a public hearing on the date hereof to receive public comment on the desirability of installment financing for the acquisition of the Parking Facilities, and the Council received evidence supporting the need for such financing so that the Town may effect the refunding of the Series 1991 Bonds; and

WHEREAS, the Council finds and determines that the undertaking is necessary and expedient for the aforesaid reasons and that the acquisition of the Parking Facilities be financed under the terms and conditions heretofore stated in order to effect the refunding of the Series 1991 Bonds; and

III. FUNDS NOT EXCESSIVE

WHEREAS, the sums to fall due under the Contract are approximately $545,000 per year for 29 years and can be included in the Town's budget without difficulty; and

WHEREAS, the above factors lead to the conclusion that the payments under the Contract are not excessive for the stated purposes of acquiring the Parking Facilities to effect the refunding of the Series 1991 Bonds; and

IV. TRANSACTION A PUBLIC PURPOSE

WHEREAS, the Town Attorney has advised the Town that the acquisition of the Parking Facilities is authorized by law and that the Parking Facilities are purposes for which public funds may be expended pursuant to the Constitution and laws of North Carolina; and

V. INSTALLMENT PURCHASE FINANCING DESIRABLE

WHEREAS, the use of non-voted debt would not provide sufficient funds to refund the Series 1991 Bonds in a timely manner; and

WHEREAS, installment contract financing would be preferable to general obligation bond financing because a general obligation bond authorization probably could not be perfected in a timely manner and would not permit the alternative financing structures and repayment provisions available in the proposed negotiated installment contract financing; and

WHEREAS, the Council finds and determines that installment contract financing is therefore the most viable and efficient alternative for effecting the refunding of the Series 1991 Bonds and that the cost of such financing is reasonable; and

VI. COMPLIANCE WITH DEBT MANAGEMENT CONTROLS

WHEREAS, past audit reports of the Town indicate that its debt management and contract obligations payment policies have been carried out in strict compliance with the law and the Town has not been censured by the LGC, external auditors, or any other regulatory agencies in connection with such management; and

VII. ESTIMATED TAX INCREASE

WHEREAS, the Council estimates that the Town's ad valorem tax rate will not be increased in order to sustain the proposed financing; and

VIII. NO DEFAULT

WHEREAS, the Town is not in default in meeting any of its debt service or contract obligations; and

IX. APPLICATION

WHEREAS, it is the Council's intention to adopt this resolution for the purpose of authorizing the acquisition of the Parking Facilities to effect refunding of the Series 1991 Bonds, making certain findings and determinations, approving the submission of an application for approval of the Contract to the LGC and authorizing such other acts deemed necessary and advisable to carry out the acquisition of the Parking Facilities and the refunding of the Series 1991 Bonds.

Item 3 Petitions

Margaret Skinner, representing the Carolina Inn, urged the Council to support the Visitor's Bureau's proposal of dedicating twenty percent of the Town's occupancy tax to Visitors Bureau activities.

Jim Harler said the Town had realized significant benefits from the Visitors Bureau programs. He stated that providing funds to the Bureau would be a good investment for the Town.

Anita Vaughn, representing the Siena Hotel, said she appreciated the Bureau's activities.

Chris Gurley said increased funding for Visitors Bureau marketing activities was a win-win use of tax funds. He expressed hope that the Council would support the Bureau's request.

Charles Nottingham, owner of the University Inn, urged the Council to plan for the future by funding the Visitor Bureau's activities. He stated that the Bureau was doing a positive job for all residents of the community, including hoteliers and residents.

Livy Ludington, representing Citizens for Livable Communities, said her organization was urging the Board of Commissioners to reject a proposed land-use ordinance for Orange County. Ms. Ludington stated that the proposed ordinance subverted long-term planning processes and encouraged urban sprawl. She also said Citizens for Livable Communities urged Orange County to explore a careful definition for open space development, using a plan of no more than one unit per two acres. Ms. Ludington added that her organization urged the Board of Commissioners to establish a small area planning process. Council Member Waldorf asked whether the ordinance would apply county-wide. Ms. Ludington said the proposed ordinance would apply to unincorporated portions of Orange County. Council Member Brown inquired when the Orange County Board of Commissioners would vote on the proposal. Ms. Ludington said she did not know the specific date.

COUNCIL MEMBER CHILTON MOVED, SECONDED BY COUNCIL MEMBER CAPOWSKI, TO REFER THE MATTER TO THE MANAGER. THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

Bob Reda expressed concern that some campaign signs from the recent elections had not been removed from along area streets by candidates. He requested that Town Staff look into how the signs could be removed expeditiously. Mayor Broun requested that staff investigate Board of Election requirements relative to the removal of election signs. Ms. Miller said staff would report back on the requirements. Council Member Powell inquired whether any Town regulations governed smaller itinerant advertising signs in rights-of-way. Town Attorney Karpinos said Town regulations did not permit advertising signs within rights-of-way.

Richard McInally, a neighbor of the University's boiler plan, said he did not favor the Town's proposal to grant the University a one-year extension to meet special use permit conditions at its boiler plant facility. Mr. McInally requested that the Town grant a time extension of less than one year for the University to comply with the conditions of approval.

COUNCIL MEMBER BROWN MOVED, SECONDED BY COUNCIL MEMBER CHILTON, TO REFER THE MATTER TO STAFF FOR A FOLLOW-UP REPORT. THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

Sam Langiotti urged the Council to allocate funds to the Visitors Bureau for its program operations. Mr. Langiotti said it was fair and equitable for the town to support the Visitors Bureau's efforts in attracting patrons to local hotels and restaurants.

Noting that the Town of Carrboro was considering an ordinance to permit the registration of unmarried partners, Council Member Chilton requested that the Manager and Attorney report to the Council on the possibility of the Town adopting a similar ordinance. Council Member Waldorf expressed concern that the staff was being asked how to handle a policy matter. Mayor Broun said although he did not see a need for a major study of the matter, it might be interesting to receive a general report on these types of ordinances.

COUNCIL MEMBER CHILTON MOVED, SECONDED BY COUNCIL MEMBER BROWN, TO REFER THE MATTER TO THE MANAGER. THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

Council Member Pavão requested that Town staff and the Parks and Recreation Commission readdress citizen concerns about discounts for senior citizens at the Community Center pool. Council Member Pavão also requested a report on conditions of locker room facilities at the Community Center. Council Member Brown suggested that the Council consider discussing the senior pool discount at the May 24th budget work session. Ms. Miller said staff would attempt to prepare a brief follow-up report.

Council Member Powell inquired whether the Parks and Recreation Department had a scholarship and grant fund for persons unable to pay for certain types of activities. Council Member Pavão said the department had a fee waiver policy, whereby a minister, doctor or other civic official could attest that individuals were unable to pay program fees. Council Member Capowski noted that some Town residents had expressed concern about the large number of non-Town residents playing basketball at, and using, the Community Center. May Broun suggested that staff provide a brief report on the total amount of the swimming pool discount for the May 24th work session. Council Member Pavão noted that although the policy discounting discounts had been enacted about a year ago, people had only found out about the change when they sought renewal of their pool passes.

Noting that the Rainbow Soccer program had generally done a very good job, Council Member Pavão said he was very disappointed about incorrect information being disseminated by the program about the lease of fields in the Glen Lennox area.

Noting that a latex paint exchange program was scheduled to take place on May 28th, Council Member Capowski inquired about options for properly disposing of varnishes and oil-based paints. Council Member Chilton said a household hazardous waste day was proposed in the 1994-1995 budget.

Stating that the nearest bus stop was at the corner of Estes Drive and Franklin Street, Council Member Capowski inquired about the possibility of the Town providing bus service to the new library facility. Mayor Broun suggested that the Council discuss this matter tomorrow evening. Council Member Chilton noted that members of the Transportation Board had suggestions about the proposal.

Mayor Broun stated that the opening of the Town's library facility yesterday afternoon had been a marvelous occasion. Mayor Broun requested that Council Member Powell serve as formal convener of the Special Committee on Public Housing-Related Needs. Council Member Powell agreed to do so.

Mayor Broun said the Council would formally receive the proposed Department of Transportation Improvements Program on June 27th. Mayor Broun said he was especially concerned about a proposal to widen Interstate 40 north of U.S. 15-501 to Hillsborough. He noted that the Council would have a formal opportunity to respond to the proposals in late June, with a regional public hearing scheduled to take place on June 21st.

Item 4 Board and Commission Nominations and Applications

Mayor Broun noted that there were currently no applicants for three vacant County resident seats and alternate seats on the Board of Adjustment. He encouraged interested Orange County residents to apply for vacancies on the Board.

COUNCIL MEMBER BROWN MOVED, SECONDED BY COUNCIL MEMBER EVANS, TO NOMINATE ALL APPLICANTS FOR FUTURE APPOINTMENT CONSIDERATION TO THE MUSEUM STUDY COMMITTEE. THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

COUNCIL MEMBER CAPOWSKI MOVED, SECONDED BY COUNCIL MEMBER WALDORF, TO NOMINATE ALL APPLICANTS FOR FUTURE APPOINTMENT CONSIDERATION TO THE PERSONNEL APPEALS COMMITTEE. THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

Council Member Capowski noted that the Cable Television Advisory Committee was in the last stages of its work concerning the Town's cable television franchise renewal process. He stated that the Committee did not feel it was necessary to make an appointment to the Committee to fill an existing vacancy.

COUNCIL MEMBER CAPOWSKI MOVED, SECONDED BY COUNCIL MEMBER EVANS, TO DEFER MAKING AN APPOINTMENT TO THE COMMITTEE. THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

Council Member Chilton stated that the Mayor's Committee on OWASA matters had not had an opportunity to meet and interview applicants for an existing vacancy on the OWASA Board of Directors. Noting that the current term of office would not expire until June 30th, he suggested that the Council defer appointments to the Board.

COUNCIL MEMBER CHILTON MOVED, SECONDED BY COUNCIL MEMBER PAVÃO, TO DEFER APPOINTMENT CONSIDERATION TO A LATER MEETING. THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

DIANNE LEMASTERS RECEIVED EIGHT VOTES AND WAS APPOINTED TO THE PARKS AND RECREATION COMMISSION. PAMELA HEMMINGER RECEIVED ONE VOTE. ORIGINAL VOTING BALLOTS ARE ON FILE IN THE CLERK'S OFFICE.

Noting that the Transportation Board had not had an opportunity to make appointment recommendations to the Council, Council Member Chilton suggested that the Council defer appointments to the Board to allow more interested persons to apply for existing vacancies. Mayor Broun said he thought it was important for the Board to make appointment recommendations to the Council.

COUNCIL MEMBER CHILTON MOVED, SECONDED BY COUNCIL MEMBER BROWN, TO DEFER APPOINTMENTS TO THE TRANSPORTATION BOARD. THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

COUNCIL MEMBER CHILTON MOVED, SECONDED BY COUNCIL MEMBER WALDORF, TO NOMINATE LYNNE JOHNSON TO THE SPECIAL COMMITTEE ON PUBLIC HOUSING-RELATED NEEDS. THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

Item 5 Integrated Solid Waste Management Plan

Public Works Director Bruce Heflin said the Landfill Owners Group had begun work on the current integrated solid waste management plan in 1992. He noted that the proposal and interview process had taken place during the Fall of last year. Mr. Heflin said the consultant would study a range of options ranging from low to high-tech approaches for addressing waste problems. He added that the consultant would also look at the goals of the three governing bodies, identify ways in which the goals were not currently being met, select criteria for further evaluation and provide evaluation of individual systems. Mr. Heflin emphasized the importance of examining the solid waste stream as a system. He stated that the consultant's role was to provide background and overview information, rather than final answers or plans to the Landfill Owners Group. Mr. Heflin stated the project funding of $195,860 was available in the Landfill Fund. He noted that the consultant's study would take approximately eleven months to complete.

Council Member Chilton said the integrated solid waste management plan had not previously been before the Council in a comprehensive manner. Noting that there had been long trilateral negotiations on the proposal, Council Member Chilton said the Council was being asked to expend $195,860 for the study to proceed. He added that the matter could be referred back to the Landfill Owners Group if the Council did not wish to proceed with the proposal in its present form. Mayor Broun asked whether Council Member Chilton favored the study in its present form. Council Member Chilton said yes, adding that he had voted against an initial draft of the plan 2 1/2 years ago.

Mayor Broun noted that there were no citizens signed up to speak on the matter.

Council Member Capowski inquired what percentage of tipping fees were paid by the Town. Mr. Wilson said approximately twenty-five percent. Council Member Capowski asked whether the consultant's proposal was for a total of 1800 person hours. Mr. Heflin said the estimate was approximately 1900 person hours. Council Member Capowski asked whether the consultant's professional engineering staff would be taking liability in the matter. Town Attorney Ralph Karpinos said this matter would need to be examined within the context of the proposed final contract, which had not been drafted. Council Member Capowski asked why the proposed labor charges for consulting work was so high. Mr. Heflin said contributing factors included the degree of public participation being requested as well as the fairly high percentage of high-level staff involved in the process.

Noting that the Landfill Owners Group had interviewed a number of firms to handle the proposed study, Mayor Broun suggested that the Council decide on whether or not to proceed with the proposed study. Council Member Brown said when the initial proposal was presented to the Council in June, 1992, she had voted against it. She stated that the cost of the study approximately one year ago had been estimated at between $50,000 and $70,000. Noting this great cost increase, Council Member Brown suggested that the Council carefully examine the proposed process for addressing solid waste management concerns.

Council Member Chilton said Council Member Brown's concerns about the cost of the proposed study were well-taken. He noted that neither the Landfill Owners Group nor the Group's support staff had anticipated the cost differential for the study. Stating that WESTON had the most responsive proposal to address the Group's needs, Council Member Chilton noted that the Council had deferred a policy decision on solid waste management for three consecutive budget cycles. Council Member Chilton said although $196,000 was a lot of money, he did not see any way for the community to move forward without having a study done on solid waste management. Council Member Capowski inquired whether there would be $196,000 of information in the consultant's report. Council Member Chilton said he did not know exactly what the Council would get out of the study. He added that if approval of the study was what was needed to move ahead on solid waste matters, then the Council needed to approve the proposal.

Council Member Brown said it was possible that such an intensive study on solid waste management might not be needed since the Council had previously expressed willingness to examine alternative systems such as fee-based collection systems. She added that if the Council waited a year for completion of the study, she hoped the Council would also look at how to change collection systems concurrent with the proposed plan. Stating the Council had gone back and forth on this matter, Council Member Brown said it was a shame that a consultant had to be hired to examine the community's solid waste matters.

Council Member Waldorf said she preferred to handle solid waste collection options in a unified manner, with more detail being provided for evaluation of the options. Mr. Heflin said the proposed study would hopefully address these concerns. He noted that solid waste collection was currently accomplished in three ways. He also stated that the study would analyze the relative efficiencies of collection methods in an efficient fashion. Stating that the staffs and two differently composed Landfill Owners Group had investigated the proposal, Mayor Broun urged the Council to adopt the proposed resolution, awarding the contract to Weston, Inc.

Noting that Orange County, the Town of Carrboro and Town had adopted three separate sets of solid waste goals, Council Member Brown said it was important that the goals be consistent for all three entities. She also said that it would be a good idea for the study consultant and the Institute of Government staff to examine legal and institutional issues relative to sold waste matters in Orange County. Council Member Chilton said both of these matters were long-term in nature and might not ever be fully resolved.

COUNCIL MEMBER PAVÃO MOVED, SECONDED BY COUNCIL MEMBER WALDORF, TO ADOPT RESOLUTION 1. THE MOTION WAS ADOPTED BY A VOTE OF 7-2, WITH COUNCIL MEMBERS BROWN AND CAPOWSKI VOTING NO.

A RESOLUTION AUTHORIZING THE TOWN MANAGER TO ENTER INTO CONTRACT WITH ROY F. WESTON, INC. TO CONDUCT THE INTEGRATED SOLID WASTE MANAGEMENT PLAN STUDY (94-5-23/R-1)

WHEREAS, the Orange Regional Landfill will be full in seven to nine years; and

WHEREAS, the future costs of solid waste management are likely to continue to rise; and

WHEREAS, the Orange Regional Landfill Owners' Group has spent two years developing the scope of work for an integrated solid waste management plan study to provide guidance on future solid waste management options; and

WHEREAS, a proposal from a consultant to perform the study recommended by the Owners' Group is now before the Town Council,

NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Town Manager is authorized to enter into a contract with Roy F. Weston Inc. (WESTON) to conduct the study as proposed in the attached scope of work.

This the 23rd day of May, 1994.

COUNCIL MEMBER CHILTON MOVED, SECONDED BY COUNCIL MEMBER PAVÃO, TO ADOPT ORDINANCE 0.1. THE MOTION WAS ADOPTED BY A VOTE OF 7-2, WITH COUNCIL MEMBERS BROWN AND CAPOWSKI VOTING NO.

AN ORDINANCE TO AMEND "THE ORDINANCE CONCERNING APPROPRIATIONS AND THE RAISING OF REVENUE FOR THE FISCAL YEAR BEGINNING JULY 1, 1993 (94-5-23/O-0.1)

BE IT ORDAINED by the Council of the Town of Chapel Hill that the Budget Ordinance entitled "An Ordinance Concerning Appropriations and the Raising of Revenue for the Fiscal Year Beginning July 1, 1993" as duly adopted on June 28, 1993 be and the same is hereby amended as follows:

ARTICLE I

Current Revised

Budget Increase Decrease Budget

APPROPRIATIONS

LANDFILL FUND

OPERATIONS 1,995,887 195,000 2,190,887

REVENUES

LANDFILL FUND

Fund Balance 797,999 195,000 992,999

This the 23rd day of May, 1994.

Item 6 Sewer Loan and Grant Program

Long-Range Planning Coordinator Chris Berndt presented an overview of the proposal, noting that adoption of Resolution A was recommended by staff. She noted that the proposed resolution would pay up to one hundred percent of assessment codes. Ms. Berndt noted that Resolution B would only pay thirty-five percent of assessment costs.

Flicka Bateman requested that the Council adopt Resolution B, rather than the Manager's recommendation of Resolution A. She said the basis for her support was that nine percent of people should not receive over forty percent of available subsidy funds. Ms. Bateman said one of the purposes of Citizens for Sewers was to reduce sewer assessment costs as much as possible for all area residents. She urged the Council to adopt Resolution B.

Henry Lister expressed his concurrence with Ms. Bateman's support of Resolution B. He stated there were differing assumptions among agencies concerning income subsidy guidelines. Noting that Citizens for Sewers had never sought the provision of free sewer service, Mr. Lister said he supported adoption of Resolution B. He also stated that Community Development funds should be used to provide assistance to truly needy families.

COUNCIL MEMBER CHILTON MOVED, SECONDED BY COUNCIL MEMBER BROWN, TO ADOPT RESOLUTION 2B.

Mayor Broun suggested the possibility that a compromise between Resolution A and Resolution B might be preferable. He inquired whether it would be unseemly to have such a compromise. Ms. Berndt inquired whether Mayor Broun was referring to use of the half-cent sales tax. Mayor Broun said this was correct. Ms. Berndt said the only limiting factor would be the total budget of $162,000. She stated that if subsidies were provided to persons to making eighty percent or less of the median income, the total subsidy needed would be about $145,000.

Council Member Capowski asked whether the number of families eligible for assistance had been determined by survey. Ms. Berndt said yes. Council Member Capowski inquired whether the survey had asked whether the respondents owned or leased their homes. Ms. Berndt said no, noting that property ownership records had been used to determine the ownership of individual homes. Council Member Capowski inquired about the estimated subsidy if 28 homes were subsidized for thirty-five percent of estimated assessments. Mr. Lister said $40,200. Mayor Broun said the balance of funds could be divided among the other neighborhoods.

Stating the program's original goal had been to address a public health problem, Council Member Capowski said he was concerned about the amount of time which might be needed to administer the program. Ms. Berndt said existing community development staff would administer the program. Ms. Berndt also said she did not believe a large amount of time would be needed to administer the program.

Council Member Capowski inquired which program application forms would be considered public documents. Mr. Karpinos said he would need to further research this matter.

Noting that the proposed program was to reduce assessment burdens, Mayor Broun said it made sense to provide the most assistance to persons at lower income levels.

Council Member Chilton called the question. Council Member Capowski said he favored the proposed resolution. He suggested that language pertaining to the provision of personal information be revised in the proposed resolution. Mr. Karpinos said he could provide follow-up information on the types of information which would be available for public perusal.

COUNCIL MEMBER CHILTON MOVED, SECONDED BY COUNCIL MEMBER BROWN, TO ADOPT RESOLUTION 2B. THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

A RESOLUTION AUTHORIZING A SEWER LOAN PROGRAM USING COMMUNITY DEVELOPMENT AND LOCAL HALF CENT SALES TAX FUNDS (94-5-23/R-2b)

WHEREAS, neighborhoods in Chapel Hill are experiencing problems with failing septic systems and are in need of connection to the public sewer system operated by the Orange Water and Sewer Authority; and

WHEREAS, the Council of the Town of Chapel Hill desires to assist lower income owner-occupants of homes needing connection to the public sewer system;

NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council establishes a sewer loan program using federal Community Development Block Grant funds and local half cent sales tax funds as appropriated by the Town Council for the program, with the program to consist of the following elements as described in the Manager's memorandum of May 23, 1994:

Eligible Neighborhoods: Mount Bolus, North Forest Hills, Sherwood Forest, and Glen Heights. Other neighborhoods without sewer would be eligible in future years.

Eligible Costs: Payment of OWASA Availability Fees and Tap Fees and the costs of connections from the house to the street using Community Development funds. Payment of assessment costs from half cent sales tax funds.

Eligible Households: Households with combined incomes less than 60% of the area median income, by family size, according to limits published periodically by the U.S. Department of Housing and Urban Development. Houses must be owner-occupied.

Form of Assistance:

Community Development Funds: Conditional loan/grant over five years at 0% interest. If the house is sold or ceases to be occupied by the eligible household before the end of five years, the loan amount would be due to the Town of Chapel Hill based on the number of years left on the loan.

Program income from repayment of Community Development loan would be reserved for use in future Community Development programs.

Half Cent Sales Tax Funds: Grant to the eligible household, with no repayment provisions.

Maximum Loan Amounts:

Availability Fees $1,315

Service Lateral Connections $1,000

Assessments up to 35% of cost*

*Assessments are calculated based on OWASA's final assessment levy minus the uniform percentage basis per the Town's performance agreement with Orange Water and Sewer Authority.

Application Process: Have one open application period for all neighborhoods as soon as feasible in 1994. An income verification process would be followed. A net asset limit would also be included, as follows:

. Net assets of less than $40,000, excluding the home in which they reside; or

. Net assets of $50,000 for persons age 62 through 64 years, excluding the home in which they reside;

. Net assets of $60,000 for persons 65 years of age and older, excluding the home in which they reside;

. Net assets of $75,000 for a family with a disabled or handicapped person requiring a constant attendant, excluding the home in which they reside.

The Town would require proof of homeownership, verification of income, a net worth statement, certification of the number of persons residing in the household, and submission of federal and state income tax returns, including state intangibles tax.

BE IT FURTHER RESOLVED that the Council authorizes the Town Manager and Town Attorney to develop administrative procedures for the program, to implement the program in accordance with these program guidelines, and to prepare and execute loan documents for the program.

This the 23rd day of May, 1994.

COUNCIL MEMBER CHILTON MOVED, SECONDED BY COUNCIL MEMBER EVANS, TO ADOPT ORDINANCE O-1A. THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

AN ORDINANCE TO AMEND "THE ORDINANCE CONCERNING APPROPRIATIONS AND THE RAISING OF REVENUE FOR THE FISCAL YEAR BEGINNING JULY 1, 1993 (94-5-23/O-1a)

ARTICLE I

Current Revised

Budget Increase Decrease Budget

APPROPRIATIONS

CAPITAL RESERVE

FUND

Reserve for Sewer

Improvements 324,000 324,000 0

Transfer to Sewer

Grant Project

Ordinance Fund 324,000 324,000

This the 23rd day of May, 1994.

COUNCIL MEMBER EVANS MOVED, SECONDED BY COUNCIL MEMBER CHILTON, TO ADOPT ORDINANCE O-1B.

Council Member Capowski suggested amending the ordinance to request a report on the amount of administrative staff time being devoted to the program. Mayor Broun suggested that an informal understanding be reached on the matter, rather than including specific language in the proposed ordinance.

ORDINANCE 1B, AS PRESENTED, WAS ADOPTED UNANIMOUSLY (9-0).

AN ORDINANCE TO ADOPT A GRANT PROJECT ORDINANCE FOR SEWER GRANTS AND ASSISTANCE (94-5-23/O-1b)

BE IT ORDAINED by the Council of the Town of Chapel Hill that, pursuant to Section 13.2 of Chapter 159 of the General Statutes of North Carolina, the following grant project ordinance is hereby adopted:

SECTION I

The projects authorized are from 1/2% sales tax funds allocated by the Council to provide assistance in providing sewer connections in unsewered neighborhoods in Chapel Hill.

SECTION II

The Manager of the Town of Chapel Hill is hereby directed to proceed with the implementation of the project within the terms of the Council's allocations and directives within the funds appropriated herein.

SECTION III

The following revenue is anticipated to be available to the Town to complete activities for the project.

1/2% Sales Tax Allocations $324,000

SECTION IV

The following amounts are appropriated for the project:

Sewer Grants $162,000

Contract Payments to the Orange Water &

Sewer Authority 162,000

TOTAL $324,000

SECTION V

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

SECTION VI

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

This the 23rd day of May, 1994.

Item 7 Human Services Performance Agreements

Human Services Advisory Board Chairperson Ed Devaney expressed appreciation to Board Members and Human Service Coordinator Karen Rose for their assistance in preparing the report on human service needs. He stated that a total of twenty-five proposals totalling $120,596 were received by the Board. Mr. Devaney said the Human Services Advisory Board planned to continue holding joint hearings with the Carrboro Human Services Advisory Board for agency funding request reviews. He also noted that the Board was placing a major emphasis on education and awareness of the community's human service needs. Mr. Devaney said the Board wished to commend the Council for its ongoing support of human service needs.

Council Member Brown commended the Board for a very good report. She requested additional information on Board interaction with the Town of Carrboro's Human Services Advisory Board. Mr. Devaney said the Boards held joint hearings with agencies which made funding requests to both towns. Council Member Brown commended the two boards for working together.

Council Member Chilton said he favored increasing the human services allocation as recommended by the Board. Mayor Broun noted that the Manager recommended that the Board reconsider allocations with a maximum total allocation of $90,000 for human service needs. Council Member Chilton said he opposed this proposal. He stated that non-profit organizations generally could do a lot with a small amount of money.

Mayor Broun said if recommended allocations totalled $104,000, it would be necessary for staff to identify an additional $14,000 in funding. Alternatively, he suggested that the Board be asked to prepare an alternative recommendation, allocating a total of $90,000. Council Member Capowski said funding of $90,000 reflected a 28% increase over current year funding. Council Member Chilton said the amount of funding for human services had been unchanged for about four or five years. Council Member Waldorf asked whether all applicant agencies received funding from Orange County. Mr. Devaney said most organizations received some funds from Orange County.

COUNCIL MEMBER CHILTON MOVED, SECONDED BY COUNCIL MEMBER WALDORF, TO ADOPT RESOLUTION 3. THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

A RESOLUTION REQUESTING FURTHER RECOMMENDATIONS FROM THE HUMAN SERVICES ADVISORY BOARD REGARDING PERFORMANCE AGREEMENTS IN 1994-95 (94-5-23/R-3)

BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council hereby requests the Human Service Advisory Board to make recommendations by July 5th regarding the agreements which the Board believes should be funded in 1994-95 within the amount to be allocated by the Council for this purpose as part of pending budget decisions.

This the 23rd day of May, 1994.

Item 8 Setting Assembly of Governments Meeting

Mayor Broun said the earliest possible jointly agreeable meeting date to discuss growth strategies was Wednesday, June 29th. Council Member Brown said she had some concern about the proposed meeting format. Mayor Broun said he would be pleased to receive Council input on the proposed meeting agenda and format. Council Member Brown said having a facilitated meeting might be the way to work around problems experienced at prior Assembly of Governments meetings. Council Member Protzman noted that he had another committee meeting on June 29th. Mayor Broun said efforts were being made to schedule the Assembly of Governments meeting after an earlier meeting on water and sewer service boundaries. Mayor Broun said he did not know whether a meeting facilitator would be needed for the Assembly of Governments meeting.

COUNCIL MEMBER CAPOWSKI MOVED, SECONDED BY COUNCIL MEMBER PAVÃO, TO ADOPT RESOLUTION 4. THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

A RESOLUTION CONCURRING IN SCHEDULING A MEETING OF THE ORANGE COUNTY ASSEMBLY OF GOVERNMENTS (94-5-23/R-4)

BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council concurs with the proposal to schedule a meeting of the Orange County Assembly of Governments on Wednesday, June 29th.

BE IT FURTHER RESOLVED that the Council authorizes the Mayors of Chapel Hill, Carrboro and Hillsborough and the Chair of the Board of County Commissioners to determine the location, time and agenda for the meeting.

This the 23rd day of May, 1994.

Item 9 Consent Agenda

Council Member Pavão requested the removal of item f. Council Member Evans requested the removal of item e.

COUNCIL MEMBER CHILTON MOVED, SECONDED BY COUNCIL MEMBER CAPOWSKI, TO ADOPT THE CONSENT AGENDA, EXCEPTING ITEMS E AND F. THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

A RESOLUTION ADOPTING VARIOUS RESOLUTIONS AND ORDINANCES

(94-5-23/R-5)

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

a. Minutes of April 25 and May 2.

b. Deleted.

c. Deleted.

d. Bid award for heavy-duty brake lathe (R-8).

e. Expedited review request by Chapel Hill-Carrboro Schools (R-9).

f. Street address ordinance (O-2).

This the 23rd day of May, 1994.

A RESOLUTION AWARDING A BID FOR ONE (1) HEAVY DUTY DRUM/BRAKE LINING LATHE (94‑5‑23/R-8)

WHEREAS, the Town of Chapel Hill solicited formal bids by legal notice in The Chapel Hill News on March 20, 1994 and in Passenger Transport on March 28, 1994, in accordance with General Statute 143‑129; and

WHEREAS, the following bid was received and opened on April 20, 1994:

Vendor Cost

Star Machine & Tool Company $42,690.31

Minneapolis, Minnesota

NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council award the bid for One (1) Heavy Duty Drum/Brake Lathe to Star Machine & Tool Company.

This the 23rd day of May, 1994.

Council Member Pavão asked why the school district was requesting an expedited review. Mr. Waldon said the school district had expressed an urgent need for near-term opening of the new facilities. Council Member Pavão expressed concern that some projects moved along slowly and then sought expedited review.

COUNCIL MEMBER BROWN MOVED, SECONDED BY COUNCIL MEMBER CAPOWSKI, TO ADOPT RESOLUTION 9. THE MOTION WAS ADOPTED BY A VOTE OF 6-3, WITH COUNCIL MEMBERS CHILTON, PAVÃO AND PROTZMAN VOTING NO.

A RESOLUTION DIRECTING EXPEDITED PROCESSING IN THE REVIEW OF THE APPLICATION FOR A SPECIAL USE PERMIT FOR THE TRANSPORTATION CENTER PROPOSED BY THE CHAPEL HILL-CARRBORO CITY SCHOOLS ON HIGH SCHOOL ROAD (94-5-23/R-9)

WHEREAS, the Town of Chapel Hill has received a request from the Chapel Hill-Carrboro City Schools for expedited review of the application for a Special Use Permit for the proposed Transportation Center on High School Road; and

WHEREAS, the Transportation Center proposed by the Chapel Hill-Carrboro City Schools is a public facility which will serve the interests of the community at large; and

WHEREAS, the Town desires to work with the Chapel Hill-Carrboro City Schools to provide adequate facilities in a timely manner;

NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Town Manager is directed to expedite processing of the development application of the City Schools for the proposed Transportation Center on High School Road in a manner that will speed review without sacrificing breadth or depth of analysis.

This the 23rd day of May, 1994.

Council Member Evans said she was concerned that the proposed ordinance specified that identification numbers had to be four inches high. She noted that some local businesses routinely sold letters which were 3 3/4 inches high. Council Member Evans suggested that the proposed ordinance exclude a specific height for numbers. Ms. Miller indicated that Fire Department found larger numbers more helpful in locating specific houses at night. Mr. Feller said it would be helpful for people to understand that it was to their advantage to have visible house numbers. Council Member Brown said she thought it was a valid point to remove any specific stipulation relative to the height of numbers.

Council Member Chilton suggested that the matter be referred to staff for further review. Council Member Capowski suggested that the Council hold a public hearing on the proposal, especially to receive comments from business persons. Council Member Chilton suggested holding the hearing on June 13th.

COUNCIL MEMBER CHILTON MOVED, SECONDED BY COUNCIL MEMBER BROWN, TO DEFER THE MATTER TO JUNE 13TH. THE MOTION WAS ADOPTED BY A VOTE OF 8-1, WITH COUNCIL MEMBER PROTZMAN VOTING NO.

Council Member Protzman did not see the need for the Town to be involved in the matter.

Item 10 Information Reports

Council Member Capowski inquired about the possibility of paying young people $5 an hour to collect litter in public housing. Ms. Miller said staff was working with a new system wherein public housing residents would assist with these types of tasks.

There was no need for an Executive Session.

The meeting concluded at 10:02 p.m.