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

OF CHAPEL HILL, NORTH CAROLINA, TUESDAY, JANUARY 2, 1996 AT 7:00 PM

Mayor Waldorf called the special meeting to order. Council Members in attendance were Julie Andresen, Joyce Brown, Joe Capowski, Pat Evans, Lee Pavão and Barbara Powell. Council Member Mark Chilton was absent excused.

Mayor Waldorf presented a brief overview of the process for this evening's special meeting and the overall nomination and appointment process to fill the vacant Council seat. She noted that each of the six applicants for the vacancy would be given five minutes in which to outline their qualifications and the top two issues currently facing the Town.

Council Member Andresen inquired whether it would be possible for Council Members wishing to do so to address questions to the candidates. Mayor Waldorf inquired whether this would be acceptable to the Council. Hearing no objections, Mayor Waldorf said the Council would proceed in this manner. Mayor Waldorf also noted that the Council would continue to welcome written citizen comments concerning the vacant Council seat.

Comments by Council Applicants

Frank de Monchaux said he had ten years of government experience in a similar community in Minnesota, including two years on the Parks Commission, two years as a Planning Board member and four years on the Town Council. Mr. de Monchaux said the three main issues facing the community were:

Kevin Foy said he was a practicing attorney. Mr. Foy stated that during his run for Mayor in November, 1995, he had articulated his concerns about growth in the Town and Triangle region. Stating that governing meant making choices, Mr. Foy said that the Council and other local elected officials would be making important decisions relative to growth matters. Mr. Foy noted that although there had been recent concern about Durham County retailers capturing a larger portion of Orange County and Town tax dollars, he felt that it was very important to stand firm in protecting what was unique about the Town, and not succumb to the temptation to build more and bigger retail outlets in the Town. He said that the Town's voters had sent a clear message in the November, 1995 elections. Stating that although Mayor Waldorf and himself had honest political differences, Mr. Foy said he believed that they could work well together on the Town Council.

Noting that he had been a Council candidate in the November, 1995 Council election, Richard Franck stated that he was struck by the number of well qualified candidates to fill the Council vacancy. Mr. Franck said he had been a Town resident since 1989 and had served as Chair of the Town's Transportation Board for two years. Mr. Franck also noted that he was active with the Durham/Chapel Hill Work Group and the Orange County Democratic Party. Mr. Franck also said he had a strong interest in, and willingness to debate issues and serve the Town's citizens as a Council Member. He said it was very important for the Town to emphasize having a less automobile dependent community and increase the diversity of housing opportunities. Noting his service on the Triangle Transit Authority's Fixed Guideway Group, Mr. Franck said he would forget the importance of providing affordable mass transit in the Triangle area. Mr. Franck said he was grateful for having the opportunity to potentially serve on the Town Council.

Michael Owen said he had been a Town resident for about seventeen years and had been co owner of a small training business for the past five years. Noting that he also currently served as the President of the Mental Health Association of Orange County, Mr. Owen said he Mr. Foy and Mr. Franck had earned their frontrunner status by virtue of their candidacies in November, 1995. Mr. Owen outlined the reasons for his candidacy including: (1) more alternatives (candidates) were better than fewer choices, (2) the fact that he was easy to work with, had a better than average sense of humor and good facilitation skills, and (3) his involvement in the community, government and nonprofit associations for a number of years. Mr. Owen stated that the two most important issues facing the Town were: (1) growth matters, including reduce waste volume growth at the Orange Regional Landfill and (2) local decisionmaking, including a more active role with Orange County in serving the human service needs of the community.

Mary Reeb said she had served on the Planning Board for four years and was currently the Board's Chair. Ms. Reeb also said she had a number of suggestions about current Town issues, including growth management. Ms. Reeb stated that the Town change its planning rules with due deliberation. She also suggested that the Town undertake periodic small area plan reviews, planning in leisure, rather than haste. Ms. Reeb suggested that the Town reexamine the way in which information was received from the public during the development review process. She stated that the current heavy reliance on Council public hearings made some citizens feel that their opinions were being discounted. Ms. Reeb suggested that steps be taken to change the quality of public debates.

Donald Shaw said he had served on the Town's Appearance Commission and Planning Board and currently served on the Human Services Advisory Board. Stating that middle and working class families had few housing opportunities in the Town, Mr. Shaw said he feared that the Town was becoming gentrified. Mr. Shaw is was very important to promote a wider diversity of housing and jobs in the Town. He also said the Town needed to be more creative in working out public private partnerships. Noting that during the current fiscal year the Town had increased its support for human service agencies from $100,000 to $120,000, Mr. Shaw said it would be increasingly important to work with other local and state agencies on human services.

Questions and Comments by Council Members

Council Member Capowski inquired whether the applicants would have voted in favor of the Meadowmont development proposal and whether they would promote a bond referendum for schools, parkland and open space and increased affordable housing opportunities.

Donald Shaw said he favored the bond issue sketched by Council Member Capowski. Mr. Shaw also stated that he did not have the same level of specific detail about the Meadowmont proposal as the Council, he would find it difficult to say how we would have voted on this matter. Mr. Shaw said it was important for the Council to balance between the needs of existing property owners and development projects.

Council Member Powell requested additional information about Mr. Shaw's proposal concerning Town funding of human service type buildings. Mr. Shaw suggested the possibility of dividing up office space with the Town subsidizing rents for some human service agencies.

Mayor Reeb said she opposed the Meadowmont rezoning and in favor the proposed site plan. Noting that she was very much opposed to the amount of proposed commercial space, Ms. Reeb said she liked the proposed school site and other features of the developer's plans. Ms. Reeb said although she favored all three initiatives suggested, it was important not to have all three held at the same time. She noted that the Council had recently approved a request by Orange County to construct a human services building in the northwest part of the Town.

Stating that although the proposal was not necessarily a bad one, Michael Owen said he would voted against Meadowmont. Mr. Owen said he would have been much happier if the proposed project had been less intense, employing a new, less dense zoning category. Mr. Owen also stated that he would support a bond issue to address the community's affordable housing, parkland and school needs. Mr. Owen said he believed it would be relatively to "sell" the community's residents about these needs.

Richard Franck said he had voted to recommend approval of Meadowmont's rezoning and master plan. He stated that the zoning change was needed to support a fixed transit corridor. Mr. Franck also stated that the Meadowmont master land use plan had accomplished most of what the Town could have hoped for along the NC 54 corridor. Expressing his support for a school and parks/open space bond, Mr. Franck said there might be better ways to fund affordable housing needs than a bond referendum.

Stating that the Meadowmont plan was not good enough, Kevin Foy said he would not have voted for the Meadowmont proposal. He also said that the Meadowmont proposal involved too much commercial space and density along the NC 54 corridor. Mr. Foy said he would support a bond referendum for schools, would consider a referendum for parks and open space and would support a bond for affordable housing if it were properly structured.

Noting that he did not have as much exposure to the Meadowmont proposal as other applicants, Frank deMonchaux stated that mixed use developments had worked well in other communities. He stated that the Town's challenge was to get the highest quality development possible along the NC 54 corridor. Mr. deMonchaux said it was a high Town priority to work on a school bond referendum with the School Board. Mr. de Monchaux also said he principally favored acquiring greenways and other parks facilities through the development process, with parks and open space bonds being a second priority behind bonds for schools. Mr. deMonchaux stated that mechanisms other than bonds, such as puublic/private partnerships, guarantees and tax abatement could possibly be used to promote affordable housing.

Council Member Pavão inquired how the Town should address the current shortfall in Orange County sales taxes and whether this burden should be borne solely by property owners. He also asked if an individual were selected to fill the vacancy, whether or not they would consider running for a four year term on the Council.

Frank deMonchaux said he favored more clean industry and an appropriate level of commercial development to the Town in order to reduce the burden on property owners. Mr. deMonchaux said he did not mind campaigning for more taxes or bringing more "clean" industry jobs to the area. Mr. deMonchaux said he would consider running for a four year term if he were selected to fill the vacancy.

Noting that the Town had recently approved a number of commercial development applications, Mr. Foy said the sales tax situation might stabilize in Orange County and the Town in the near future.

Mr. Foy said the Council needed to add the matter of what type of development and tax base was desired in the Town. Mr. Foy also said he did not think that the Town should be solely a bedroom community. Mr. Foy said he thought that citizens were willing to pay their fair share of impact taxes for school facilities. Mr. Foy said he would consider running for a four year term if he we appointed to fill the Council vacancy.

Richard Franck said he thought it would be necessary to seek approval of a bond referendum for school facilities in the near term. He also said that although the per capita sales tax for Orange County was down, he did not believe that this trend was terribly sustainable in the long term. Mr. Franck stated that he favored increased the amount of commercial space in Orange County in the right manner, encourage the development of small scale businesses. He also said that he did not favor a full scale development boom in the Town. Mr. Franck said he would consider running for a four year term on the Council if he were selected to fill the vacancy.

Stating that it did not appear that any of the applicants were "no growth" candidates, Mr. Owen said determining desirable development in the Town was a matter of balance and selectivity. Mr. Owen said he very much supported the idea of impact fees. Mr. Owen also said whether or not he ran for another term would depend upon how well he did his job as a Council Member.

Mary Reeb said the question might be more of an economic issue, rather than an "us versus them" matter. Ms. Reeb said there was a strong feeling that the Town did not need to duplicate Durham's resources. Ms. Reeb also stated that she favored impact fees. Stating that the November, 1995 candidate field for Council was too crowded, Ms. Reeb said she was still thinking about running in the next Council election.

Donald Shaw said he believed that the Town needed to diversify its commercial business base and its housing opportunities over time.

Mr. Shaw said he did not believe that he would seek a second term on the Council.

Council Member Andresen inquired what the applicants would talk to the Orange County Commissioners about regarding Town/County matters.

Michael Owen said the matter he would address would be the need for joint Town and County responsibility for human service and social service needs. Mr. Owen also said he would discuss the implications of regional issues.

Mary Reeb said she would discuss regional issues and interoriented problems. Ms. Reeb also said she would emphasize the importance of moving ahead with using the proposed northwest area of the Town for an economic development zone. Ms. Reeb stated that she would also discuss joint financing of schools and regional planning with Orange County. She also stated that the Town needed to get better economic development data relative to sales tax revenues and other items.

Donald Shaw said there was a need for the Town and County to better cooperate on human services, waste management, zoning and transportation matters.

Noting that in Minnesota, he had served as the Council's representative to a seven county metropolitan group, Mr. de Monchaux said he would emphasize shared services such as data sharing, economic development, waste management, transportation and centralized records management.

Kevin Foy stated that the Shaping Orange County Future initiative

would play an important role in government bodies interacting with one another. He also stated that the preservation of the rural buffer zone as a protected area and the development of economic development zones were two important matters which could be explored with County officials.

Richard Franck said he believed that schools were the most important matter in the near term. He stated that a longer term issue was the matter of whether consolidation into a single joint Town/County school district was viable. Mr. Franck also stated that the Town should have a very active role in sustainability and

the Shaping Orange County's Future program.

Council Member Evans asked whether any of the applicants had any suggestions for changing Town services to save money. Council Member Evans also encouraged those not appointed to the Council vacancy to apply for membership on Town advisory boards and commissions.

Richard Franck said he believed that steps could be taken to make solid waste collection less expensive and more equitable. He also suggested that the Town could work with Orange County and the Town of Carrboro to make parks and recreation and transportation services more efficient.

Stating that the Manager's projected budget anticipated a shortfall, Kevin Foy suggested that the Council scrutinize the budget for areas of "fat" and attempt to find alternative revenue sources. He also suggested that the Council could request increased contributions from Orange County for the Town's library and other services. Noting the proximity of the Governor's Club to the Town limits, Mr. Foy stated that Chatham County might also make contributions for some Town services.

Frank deMonchaux said he wondered how dynamically the Town assessed costs to the University and how carefully these costs were checked for proper allocations. He also suggested that the Town explore more outsourcing opportunities and the possibility of improved management (identifying best management practices), inside and outside of the Town's structure.

Donald Shaw suggested that the Town might be able to handle some services more efficiently, including curbside refuse collection. He also said that it was important for the Town to explore new sources of revenue.

Mary Reeb suggested that the Town consider initiating curbside refuse collection service on a trial basis, with dispensations available to persons unable to roll carts to the curbside. She also suggested that the Council think about additional user fees

and the possibility of raising property taxes in the future.

Michael Owen suggested that the Council explore creative revenue sources, outsourcing of additional services and the possibility of requiring a "pay as you throw" refuse collection system.

Council Member Brown said this evening's questions had been good and thorough.

COUNCIL MEMBER BROWN MOVED, SECONDED BY COUNCIL MEMBER PAVÃO, TO NOMINATE ALL SIX APPLICANTS. THE MOTION WAS ADOPTED UNANIMOUSLY.

Mayor Waldorf noted that the Council was scheduled to take up the matter of filling the vacancy at its January 8th meeting. She noted that Council Member Chilton had requested that the item be moved down the agenda in the event that his return to Town were delayed.

On behalf of all the Council applicants, Frank deMonchaux thanked the Council for their efforts in filling the Council vacancy.

The meeting concluded at 8:42 p.m.