MINUTES OF A WORK SESSION HELD BY THE MAYOR AND COUNCIL OF THE TOWN OF CHAPEL HILL, NORTH CAROLINA,

MONDAY, JUNE 3, 1996, 7:00 P.M.

Mayor Waldorf called the meeting to order. Council Members in attendance were Julie Andresen, Joyce Brown, Joe Capowski, Mark Chilton, Pat Evans, Richard Franck and Lee Pavao. Council Member Barbara Powell was absent excused. Also in attendance were Town Manager Cal Horton, Assistant Town Managers Sonna Loewenthal and Florentine Miller, Finance Director James Baker and Town Attorney Ralph Karpinos.

Mr. Horton presented an overview of possible items for consideration in a future bond referendum including $5,000,000 for park development, $2,000,000 for Greenways and open space, $2,500,000 for public safety and public work facilities and

$3,000,000 for transportation and drainage related items. He noted that bond attorneys would make final determinations about language on the ballot for any bond referendums.

Mayor Waldorf inquired about the projected facility buildout if the bonds were passed. Mr. Horton said approximately five years. Finance Director James Baker noted that the general requirement was that communities had three years to expend bond funds. Council Member Andresen inquired about the Town's annual payments for debt service. Mr. Baker said annual debt service payments were $1,900,000. Council Member Andresen inquired when these debts would be paid off. Mr. Baker said the debt would be paid off by the year 2011, excepting $1,800,000 in bonds issued last year.

Council Member Pavao asked whether the Town's total bond debt was $15,000,000. Mr. Baker said this was the approximate amount of outstanding bond principal. Council Member Pavao inquired whether this was a relatively light level for a local government. Mr. Baker said this was correct. Council Member Pavao inquired whether or not land had been set aside for the proposed southern fire/police facility. Mr. Horton said land had been set aside at the Southern Community Park for this purpose. Council Member Pavao inquired whether some greenway type segments had been identified for possible purchase. Mr. Horton said this was correct. Council Member Capowski inquired how specific the Council needed to be in terms of proposed referendum language. Mr. Horton said language used by bond attorneys was fairly general and categorical.

Council Member Andresen asked whether the bond referendum could outline how much would be specifically allocated for individual recreation and open space projects. Mr. Karpinos said he did not think that the bond attorneys would permit this level of specificity. Mr. Horton said the Town could identify what portion of funds would be set aside for open space and recreation projects.

Council Member Brown asked whether the Council could better define "open space" by adoption of a resolution. Mr. Horton said yes, noting that the definition of open space would need to be approved by the bond attorneys on the election ballot.

Council Member Evans said one way to structure the bond referendum would be to determine what items might meet the needs of the largest number of people, including families with children and older persons. Mayor Waldorf suggested that the Council attempt to weigh the community's needs in light of the broad public interest. Council Member Capowski inquired about the number of proposed categories on the bond referendum ballot. Mr. Horton said that the Town's bond attorney would ultimately make the determination on the number and scope of categories appearing on the ballot. Mr. Karpinos said it was possible that parks and open space might be one category, with public works and public safety combined into another category and transportation/drainage and streetscape into another category. Council Member Capowski asked whether the ballot might have several categories. Mr. Horton said this was correct.

Park Development

Council Member Franck inquired what the $3,500,000 in possible bonds could possibly purchase. Mr. Horton said a facility including a swimming pool, gymnasium, locker rooms, parking lot and other amenities. Mayor Waldorf inquired how staff had determined estimated costs. Mr. Horton said staff had used a basic cost estimate of $100 per square foot in concert with inflation adjustments. Council Member Evans inquired how the facilities could be built with bonds. Mr. Horton said it would be necessary to pass bonds in order to build the facilities. Council Member Evans said she thought that the Town really needed another community center. Council Member Chilton inquired about the proposed activities at the Northern Community Park Center. Mr. Horton said activities included swimming, aerobics, dance, volleyball and others.

Council Member Andresen inquired whether staff had good data about the use of present recreational facilities. Mr. Horton said yes. Council Member Andresen said although she could see the need for indoor facilities, there was ultimately a need for a more organized plan and approach. Council Member Pavao asked whether the entire Northern Community Park project was still on line if the bonds were approved. Mr. Horton said there could possibly be one bid if the bonds were approved. Mr. Loveman said staff hope to go out for bid for the project next spring. Council Member Pavao inquired whether the current Northern Community Park project included a community center. Mr. Loveman said although the center was excluded, a footprint for the building was set aside, pending approval of bonds.

Council Member Capowski said bond money was more or less a letter of credit from voters for future facility construction. He inquired about the possibility of funds being set aside for "rainy day" projects. Mr. Horton said it would be problematic to get bond attorneys to approve funds for rainy day use. Mayor Waldorf said one approach would be to attach less specificity to the open space bonds. Council Member Pavao noted that a collaborative and cooperative effort with Orange County was being proposed for parks facilities.

Council Member Brown said she thought that an emphasis should be placed on the acquisition of land for open space and Greenways.

Council Member Evans inquired whether there were any plans for the Senior Center to purchase the building it occupied. Council Member Pavao said efforts were underway with Orange County in this regard.

Council Member Chilton inquired about the timetable for completing the Northern Community Park if bonds were approved. Mr. Horton said approximately two and a half years.

Council Member Chilton requested additional detail on the thirty-two acre tract referenced in the staff's memorandum. Mr. Horton said the tract connected the Northern Community Park tract to the Green tract. He stated that portions of the tract could possibly be used for open space, passive and active recreation. Noting that the Town already owned a fair amount of land in this part of the Town, Council Member Chilton said it would be interesting to know in the future what portion of the tract was contiguous to the northwest area.

Council Member Andresen said she would not be interested in the tract if there were no possibility for passive recreation opportunities. She inquired about the possibility of purchasing the tract, using a portion and selling off the balance of the tract. Mr. Horton said he did not believe that bond money could be used for this purpose.

Council Member Evans suggested that if the thirty-two acre parcel came in for development, the developer could be required to provide a greenway linkage to the Northern Community Park. Mr. Horton said this was certainly a possibility.

Council Member Franck said he was willing to support $2 million for open space and greenway development, but not future parkland. He also suggested the possibility of conducting a survey of open space and environmentally sensitive areas in the Town.

Council Member Capowski inquired whether there would be sufficient funding to develop a portion of the Morgan Creek greenway. Mayor Waldorf said this was a difficult question to answer since it was not possible to know what would be available at what point. Council Member Andresen said she had concerns about putting a paved path next to Morgan Creek.

Mr. Karpinos requested clarification about whether or not the Council wished to have separate open space and parks development questions on the bond referendum ballot. Council Member Franck said he did not think this was necessary as long as the Council's intentions were clear. Noting that many citizens expected that more bonds passed in 1989 would be used for the acquisition of open space, Council Member Chilton requested that staff further investigate phrasing options for the proposed bond ballot. Mr. Horton said staff would make these inquiries.

Public Safety Facilities

Council Member Chilton inquired whether there was a specific time frame for construction of the southern fire station facility. Mr. Horton said no time frame had been identified. Council Member Chilton asked whether staff had an opinion about the need for this facility. Noting that the Southern Village development would likely meet annexation criteria during the next year and would need these facilities for fire protection. Council Member Evans asked whether or not the Southbridge and Cobble Ridge subdivisions would be logical candidates to be served by the proposed facility. Mr. Horton said this was correct.

Council Member Andresen inquired about estimated staffing needs for the proposed new facility. Mr. Horton stated that twelve people would be needed to staff the proposed station. He said these positions could be paid for by using revenues from the annexation. Council Member Andresen said it was essential to have a facilities report to identify future needs. Mr. Horton said a southern fire station and police substation were needed regardless of the findings of a facility study. Council Member Andresen inquired about the Town's facility needs for the next ten years. Mr. Horton said this would depend on the goals and objectives set by the Council.

Council Member Capowski inquired whether or not there would be a need for a police substation in the proposed facility. Mr. Horton said yes, noting that funding was also proposed for a police substation in the fire station. Council Member Capowski

inquired about the possibility of the Town contracting some police and fire services to portions of northern Chatham County. Mr. Horton said most of the communities in this area were gated communities which provided their own security services.

Council Member Chilton requested elucidation of what $700,000 would buy in terms of police facilities. Mr. Horton said these funds would pay for improvements to the existing police building and related training facilities. Council Member Evans inquired whether or not the Town had previously purchased fire trucks using bond funds. Mr. Horton said the Town had used 1986 bond funds to purchase two fire trucks. Council Member Brown said that $1 million did not appear to be much funding to construct a fire station facility. Mr. Horton said only one pumper and a small police substation would be located in the proposed facility. Mayor Waldorf inquired how the Town would pay for facility improvements such as the installation of separate shower facilities for women at the Town's existing fire stations. Mr. Horton said these improvements would be paid for using capital "pay as you go" funds. Council Member Franck said it appeared that it would be favorable to annex the Southern Village development and surrounding areas as soon as possible.

Public Works

Council Member Brown inquired about the prospects for renewal of the Town's existing Public Works facility on University-owned land. Noting that the present lease would expire on December 31, 2006, Mr. Horton said that the University's proposed future land plan called for this area to be used for utilitarian purposes, possibly allowing the Town's Public Works and Transit facilities to remain at the site or to possibly expand. Mayor Waldorf noted that the University's planning consultant's recommendations appeared to leave open the possibility of expanding Town facilities or joint Town and University facilities at the site of the Town's Public Works and Transit facilities. Mr. Horton said that relocation of the existing facilities would cost an estimated $4,000,000 and require about thirty acres of land. Mayor Waldorf said it would be preferable to know as soon as possible whether or not the Town could extend its lease for use of the land.

Transportation and Drainage Items

Stating that State Department of Transportation funds were dwindling, Council Member Brown expressed her support for proposed improvements to South Columbia Street. Council Member Franck noted that improvements to South Columbia Street were the Council's number one priority in the transportation improvements program. Mr. Horton said the Town would have to take responsibility for maintenance of the road if the Town elected to use its own funds to improve the roadway.

Council Member Evans inquired whether or not the Town had recently received some funding for bridge replacements. Stating that the Town had sufficient State funding for one more bridge replacement, Mr. Horton said that the Town would be safer with a more aggressive bridge replacement program.

Council Member Andresen inquired whether staff had specifics on stormwater drainage facilities. Mr. Horton said staff could furnish a listing of drainage problem areas to the Council. Council Member Capowski inquired whether the proposed projects would help with flooding along Bolin Creek and the University Mall area. Mr. Horton said the projects were intended to help with spot flooding problems.

Council Member Capowski asked whether there were any unsafe bridges in the Town. Mr. Horton said absolutely not.

Mayor Waldorf inquired where sidewalk projects were planned. Mr. Horton said sidewalks could be constructed as the Council directed. Council Member Andresen suggested adding bikeway projects to the transit-related bonds category. Council Member Evans inquired what types of bikeways. Council Member Andresen said she thought that bikeways would be very marketable to the public and the Council could debate this matter in the future.

Council Member Brown suggested that a bicycle plan completed by the Durham-Chapel Hill Transportation Advisory Committee might be used as a resource in determining possible bikeway locations. Council Member Andresen suggested adding bikeways to the sidewalks item.

Streetscape

Mayor Waldorf inquired whether streetscape should be a separate category. Council Member Evans said streetscape was well linked to sidewalks. Council Member Franck said streetscape involved more than sidewalks. Council Member Brown said that there were sidewalk needs all over the Town. Council Member Andresen inquired how Town sidewalk projects were prioritized. Mr. Horton said staff concentrated on doing the longest and easiest segments of sidewalks first. He noted that the streetscape project would only include essential items, with basic mast arms and poles, rather than decorative flagpoles.

Council Member Chilton inquired about the amount of funds set aside during the current fiscal year for streetscape improvements. Mr. Horton said the Town's annual allocation was $50,000 plus $75,000 from the State for curb and gutter. He said the cost estimate for the entire project was about $4 million. Council Member Evans said she thought of streetscape as a form of maintenance of the downtown area. She stated that business had increased in areas where streetscape improvements had been completed. Council Member Brown said that there had been relatively few business closings in the downtown area recently, regardless of whether businesses were located near areas with streetscape or not. She added that there was a long list of sidewalk project needs around the Town. Mayor Waldorf said she concurred with Council Member Brown on these points.

Council Member Capowski suggested the possibility of putting a streetscape item on the ballot, separate from the transit and drainage improvements item. Council Member Franck said he was really torn on this matter, since he believed that streetscape was a good investment for the downtown area. Council Member Pavao said he concurred that the streetscape program had made a difference to the downtown area. Council Member Brown said she thought that streetscape and transit/drainage/sidewalk items should be separate items on the bond referendum ballot. Mr. Karpinos said staff would need to consult with bond counsel on how categories might specifically be broken out on the ballot.

Council Member Andresen inquired whether or not the Council favored a large amount of funding for sidewalk and bikeway projects. Council Member Franck suggested the possibility of earmarking $750,000 each for sidewalk and streetscape projects. Council Member Evans said she favored keeping in the full amount for streetscape ($1 million). Council Member Brown inquired whether or not it was correct that no final decision would be made on the bond referendum until the bond attorney answered the Council's ballot related questions. Mr. Horton said his advice would be for the Council to make a decision fairly soon on the scope of a possible bond referendum. Council Member Brown inquired whether or not particulars could be changed in the future. Mr. Horton said this was correct. Council Member Brown said she did not know whether putting the two items together would hurt one or the other of the items.

Stating that it was a little difficult to evaluate some of the items this evening, Council Member Chilton said he would like to tour the Town's Police and Public Works Department facilities. Council Member Chilton said he was inclined to propose a $3 million referendum question relative to transportation and drainage items. Mr. Horton noted that the bond order language would likely be very general. Mayor Waldorf inquired whether the Council wished for staff to proceed with the process for preparing for a bond referendum election. Council Member Chilton said he would like an opportunity to visit the Police and Public Works Departments prior to agreeing to a $12.5 million bond referendum proposal. He also requested additional information about the timing of annexation and development south of the Town and projected costs of the Morgan Creek greenway project. Mr. Horton said it would be almost impossible to determine land acquisition costs for the Morgan Creek greenway project.

Council Member Capowski said he proposed three bond referendum items on the November, 1996 ballot: (1) $8 million for open space and future park development, (2) $2.5 million for public safety and public works facilities and (3) $3 million for transit, drainage, sidewalks and bikeways projects.

Council Member Brown requested additional information on the public works proposal. She also suggested having specific language concerning the preservation of park lands. Mayor Waldorf said the bond attorneys would provide specific language about park land and other matters. Noting that the individual items involved varied from $25,000 to $85,000, Council Member Chilton said he was not convinced that the public works facilities needed to be handled through the use of bonds. Council Member Franck expressed his concurrence. Council Member Andresen said she would be interested in receiving more information from staff and a tour of the Public Works facilities. Mayor Waldorf said there appeared to be general agreement on the parks and open space matters and strong agreement on the fire station, transportation, sidewalks and drainage items.

Council Members Capowski, Evans and Pavao expressed their strong support for the renovation of police facilities. Council Member Pavao said it would be preferable for the Council to make a determination on this item in the near future. Council Member Chilton inquired what Council actions would be helpful to staff in moving forward with the process. Mr. Horton said it would be helpful for the Council to allow staff to confer with bond attorneys on referendum language and other matters. He also said it would be helpful for the Council to discuss methods of paying for the bonds. Council Member Chilton said there appeared to be Council concurrence on $5 million for parks development and $2 to $3 million for Greenways and open space. Mayor Waldorf asked whether there was Council agreement on these points. Council Member Brown suggested removing future parks development from the second item.

Council Member Evans said a lot of community support would be needed in order for a bond package to be successful. Council Member Brown said she thought that the Council was working toward this end. Council Member Chilton expressed his support for the parks, open space and greenway figures suggested earlier by Council Member Capowski. Mayor Waldorf said there appeared to be general agreement on the fire station item, pending information from staff about annexation of the southern part of the Town.

Council Member Chilton said although he could agree to $2 million for public safety items, he was not willing to proceed with $500,000 for public works items at this time. Council Member Franck suggested starting with $2 million for public safety items and adding $500,000 for public works if necessary. Mayor Waldorf said there appeared to be Council consensus on $3 million for drainage and transit items and $8 million for parks, open space and Greenways.

Council Member Capowski said it would be beneficial for the Council to discuss whether or not to combine streetscape items with sidewalks and drainage items. Council Member Chilton said he believed that streetscape would have a difficult time passing if it were offered for separate consideration on the ballot. Council Member Capowski said that bridges and other "non glamorous" items might not pass if offered separately on the ballot. Council Member Chilton said it might make more sense to leave streetscape off the ballot, rather than as a separate item. Council Member Capowski said he believed that most public debate would be about streetscape if the items were combined, principally due to opposition by some business owners. Council Member Evans said she did not believe this would be the case.

Mayor Waldorf inquired whether there was Council concurrence on having a $1.5 million proposal for sidewalks, bikeways and general downtown improvements. Council Member Evans said some Town residents did not want their front yards carved up by sidewalk projects. Mayor Waldorf noted that there appeared to be general concurrence with Council Member Capowski's proposal for $8 million for parks, open space and Greenways, $2 million for public safety and public works and $3 million for transit, drainage and other items. Mr. Horton said the item could be placed on the Council's June 24th agenda. Council Member Evans inquired how much it would cost to buy up vacant land around the Town. Mr. Horton said the per acre cost varied between $20,000 and $50,000.

Council Member Evans said she preferred raising property taxes over time, rather than all at one time, as suggested by staff. Mr. Horton said he recommended this approach because many taxpayers would soon forget about passage of bonds and would later say "how dare you raise my property taxes". Council Member Brown said bonds had been paid for the last few years without the need for raising taxes significantly. Mr. Horton stated that sales tax funding had accounted for a good portion of recent bond-related costs. Mayor Waldorf inquired whether it was correct that there would be a property revaluation next year. Mr. Horton said this was correct. He added that issuing $12 to $14 million of bonds would be equivalent to a six or seven center tax rate equivalent. Council Member Capowski said some of the proposed bonds would not come on line until the proposed major annexation south of the Town. Mr. Horton noted that there would be significant operation and maintenance costs associated with the proposed annexation.

Mayor Waldorf asked whether the Council was interested in having a follow-up session on communication (effectiveness and listening) matters on August 24th. Council Member Andresen said she favored having such a follow-up session. Mayor Waldorf said she could put together a follow-up proposal for the Council's consideration. She inquired whether the Council favored the idea of casting board and commission ballots prior to regular Council meetings. Noting that the idea might have some problems, Council Member Chilton said he was willing to give this idea a try. Council Member Capowski expressed concern that this would be doing something in secret. Council Member Chilton said a resolution on this matter could be brought before the Council in the near future. Mr. Karpinos said that Council Members could present ballots to the Clerk at the beginning of the meeting, with results announced during the meeting and ballots available for inspection in the Town Clerk's office. Council Member Andresen suggested placing this item on a future Council agenda.

Noting that the Town had in the past used a bond attorney from New York at present, Mr. Horton said that he and Mr. Karpinos had gone through a process about four years ago to select a North Carolina firm to assist in a potential bond sale that had not materialized. Mr. Horton suggested that the Town used the firm that he and Mr. Karpinos had selected earlier rather than go through another selection process. There was Council consensus for staff to work with the North Carolina attorney selected earlier on bond-related matters. The session concluded at 8:20 p.m.