SUMMARY OF A PLANNING RETREAT HELD BY THE CHAPEL HILL TOWN COUNCIL, SATURDAY, JANUARY 18, 1997 AT AQUEDUCT CONFERENCE CENTER

Retreat co-facilitator Peg Carlson called the day’s proceedings to order at 8:36 a.m. Council Members in attendance were Julie Andresen, Joyce Brown, Joe Capowski, Mark Chilton, Pat Evans, Richard Franck, Lee Pavão, Edith Wiggins and Mayor Rosemary Waldorf. Also in attendance were Retreat co-facilitator Anne Davidson, Town Manager Cal Horton, Assistant Town Manager Sonna Loewenthal, Finance Director James Baker, Public Works Director Bruce Heflin, Planning Director Roger Waldon, Town Clerk Peter Richardson and Town Attorney Ralph Karpinos.

Introductory Matters

Ms. Carlson and Ms. Davidson presented an overview of the proposed timeframe for today’s session.

Mr. Horton noted that at the conclusion of today’s session, Town staff would word process the facilitator’s and Town Clerk’s detailed summary notes of the proceedings, for discussion at a follow-up meeting.

Council Member Evans stated that Council Member Pavão had worked very hard to investigate the procedures of other elected bodies throughout the State. Mayor Waldorf noted that the Council had not formally discussed this matter. Council Member Evans suggested that staff could distribute copies of the committee’s write-ups to Council Members. Council Member Franck said the Committee did not have any specific recommendations because different towns had different ways of handling things.

Financial Matters

Mr. Horton presented an overview of the Town’s financial status, noting that there had been unanticipated shortfalls in a number of the Town’s revenues. Mr. Baker briefly reviewed the staff’s financial forecast for the Town, noting that staff was estimating an effective tax rate increase of 3.3 cents to continue current services and make a debt service payment of $475,000 on $3.5 million of bonds. Mayor Waldorf inquired whether any additional personnel were being requested in the proposed budget. Mr. Horton said that this was simply a financial forecast and was not detailed enough to include specific positions. Mr. Horton and Mr. Baker responded to questions by Council Members regarding property revaluation and equalization of the Town’s property tax rate.

Mr. Horton noted that the Landfill Owners Group had not yet made its final recommendation regarding the proposed tipping fee. Mayor pro tem Brown suggested that the Council consider

funding mechanisms which were based on waste minimization, recycling and reuse, rather than waste generation.

Mr. Horton presented a one-year financial forecast for the Town’s Transportation Fund.

Noting the concern of some Council Members about the recycling budget, Council Member Chilton said he would be willing to arrange a work session between the Council and Landfill

Owners Group representatives on this matter. Council Members Andresen and Pavão and Mayor Waldorf said this would be useful.

Mayor Waldorf suggested that the Council have half a budget work session on police matters, including an update on community policing. Council Member Andresen said this was a great idea. Council Member Chilton said one half of a session could be devoted to a discussion with Landfill Owners Group representatives.

Mayor Waldorf inquired whether or not the Council wished to have a work session with advisory boards. Mr. Horton noted that at least five advisory boards had requested joint meetings with the Town Council. Mayor Waldorf noted that there was no Council objection to proceeding with a joint budget work session with advisory boards and commissions.

Mr. Horton briefly reviewed the proposed budget process, noting that consideration of the recommended budget was projected to occur on June 9.

Council Member Andresen suggested that the Council establish a citizen advisory board or Council subcommittees on budget matters and possibly change the timing of the first public forum on the budget. Mayor pro tem Brown suggested that a citizen’s group examine details of the Town’s budget. Council Member Pavão said he liked the concept of Council budget subcommittees.

Council Member Capowski said it was important for the Council to make direct comparisons relative to funding requests by outside organizations seeking Town funding. Stating that the Human Services Advisory Board had done a good job of making evaluations of organizations, Mayor Waldorf said one possibility was to freeze the funding levels of any outside organizations/agencies in the proposed budget.

Council Member Evans said it was important for the Council to separate ends from means. She suggested that the Council should govern and leave managing of the Council’s direction to the Town staff.

Mayor pro tem Brown noted that the third committee on sustainability was currently looking at the community’s needs and related processes. Council Member Wiggins inquired when this report was targeted for completion. Stating that the report was targeted for completion in March, Mayor pro tem Brown said these recommendations could be taken into account in the next budget year.

Referencing Council Member Capowski’s earlier remarks about funding of outside organizations, Council Member Chilton said he was not sure whether it would be possible to come up with a good mechanism to adequately address Council Member Capowski’s concerns. Council Member Wiggins asked whether or not there was Council consensus to cap funding of outside organizations. Council Member Andresen said there was not really any such consensus. Ms. Carlson noted that the Council could come back to the matter if it wished to do so.

The Council took a break from 10:10 to 10:25 a.m.

Options for Scheduling November, 1996 Voter Approved Bonds

Assistant Town Manager Sonna Loewenthal outlined several options for the scheduling of bond projects approved by Town citizens in the November, 1996 bond referendum. Mr. Horton, Ms. Loewenthal and Mr. Baker also responded to Council queries about scheduling of the voter-approved projects.

Council Member Franck commended Town staff for doing a very good job in laying out the Council’s alternatives. Mr. Horton suggested that if the Council concurred, staff could prepare a resolution regarding capital project scheduling following the January 29^th public forum on the matter. Council Member Pavão said this was a good idea. Mr. Horton noted that local media representatives could help to get the word out to the public about capital projects tied to the issuance of the voter-approved bonds.

Mr. Horton noted that staff had also prepared a brief item regarding construction management options. Council Member Franck inquired where this function might fit into the Town’s organizational chart and what would happen if there were no Town construction projects at some time in the future. Mr. Horton said that the Public Works Department was the most logical place to locate this function and that the position would be eliminated if there were no more projects. Stating that a significant change was being proposed, Council Member Andresen said she would want to think about the matter. Noting that the proposal possibly involved hiring another person, Mayor pro tem Brown said it was important for the Council to consider this very carefully.

Council Member Andresen inquired about the possibility of a contract position for construction management. Mr. Horton said such an approach would either cost a lot more money or might not attract many or any applicants due to the lack of benefits.

List of Important Budget Issues

Council Members identified the following criteria for “important” budget issues: how much money involved; whether or not proposal was a change from what done in past year, whether the proposal promoted the safety of citizens; number of citizens effected overall, whether or not the proposal addressed a serious problem; number of complaints on matter, preservation of assets,

long and short-term effects on local tax rates.

Listing of Important Issues by Council Members

Council Member Andresen: Ways to raise revenues

Council Member Franck: Rear-yard trash collection or “pay as you throw” garbage collection alternatives

Council Member Evans: Safety in our community

Mayor pro tem Brown: Whether or not to propose a no tax increase budget, setting tax rate

Council Member Chilton: Future of Transportation Fund and of bus system

Council Member Wiggins: Expanded use of technology

Mayor Waldorf: Notifying agencies about Town’s grant-related processes

Council Member Capowski: Increase maintenance and cleaning of large streets

Council Member Pavão: Salaries and employee incentives

Council Member Andresen: Giving higher priority to traffic calming and bicycle and pedestrian projects to promote safety

Council Member Franck: Planning Department resources and staffing

Council Member Evans: Maintaining and improving community appearance

Mayor pro tem Brown: Look at number of employees and how increased over time

Council Member Wiggins: Building community among citizens

Council Member Capowski: Investigate payments-in-lieu for parking and parks

The Mayor and Council Members discussed these issues between themselves. The Council took a lunch break between 12:00 Noon and 12:34 p.m.

Mr. Horton noted that as a follow-up to today’s session, staff could prepare brief working papers on each set of budget-related issues outlined by Council Members. He also said it would be useful for staff to receive some guidance on property tax rates.

Mayor pro tem Brown requested that a clear record of the day’s proceedings be forwarded to Council Members.

Council Member Wiggins requested removal of item #14 “building of community” from the listing of issues, stating she assumed that this was an important issue for Town staff.

Mayor Waldorf inquired whether the Council would discuss these matters again before requesting staff background papers on these matters. Mr. Horton said staff could put together briefing papers for follow-up Council work sessions on the matters. Council Member Capowski suggested that staff prepare a bare minimal listing for the January 29^th Council meeting. He stated that the Council could request any desired staff working papers at that meeting or sometime in the future. Mayor Waldorf suggested that Council Members give some thoughts to specific proposals and put them forward at the Council’s January 29^th meeting. Council Member Andresen said this was a good suggestion.

Discussion of Property Tax Rates, Sale of Bonds and Salary Adjustments for Employees

Council Member Capowski inquired what staff would do if the Council requested a 52.7 cent General Fund tax rate. Mr. Horton said that he could prepare such a budget, including options for possible reductions in Town services.

Mayor Waldorf inquired about Mayor pro tem Brown’s proposal for a no tax increase budget which would permit the issuance of a portion of recent voter-approved bonds. Mayor pro tem Brown said one possibility would be to issue bonds over a period of time. Council Member Pavão said this was just postponing the inevitable need for a tax increase in the future.

Stating that the bonds were still fresh on the voters minds, Council Member Franck said it was best to face up to the need for a tax increase in the near future. Council Member Capowski inquired about the cost of a four percent salary increase for Town employees. Mr. Baker said this would be about $500,000 of the Town’s General Fund. Mr. Horton briefly reviewed anticipated revenue cuts and bond issuance costs for 1997-98, noting that they totaled about $965,000 for the General and Landfill Funds.

Mayor Waldorf said no one had ever made a pretense to the public about the need for a property tax increase relative to the issuance of the recently-approved bonds. Mayor pro tem Brown said it was her memory that there was not an absolute necessity for a tax increase due to the bonds. She also said it was important for the Council to keep taxes at a level which made it viable for all segments of the community to live in the Town. Mayor Waldorf said if there was no tax increase to pay for the bond debt service, it would be necessary to have no pay increases for employees or to significantly reduce service levels for some Town services. Council Member Capowski inquired what staff would do with a one, two or three cent property tax increase. Mr. Horton said he could prepare four options for a budget. Council Member Andresen said it would be useful to have this information. Stating that it seemed somewhat arbitrary to base budgets on possible tax rate increases, Council Member Chilton said it was not worth asking staff to do a tremendous amount of work unless the Council were willing to actually carry out potential program or service cuts. Mayor Waldorf and Council Member Franck concurred.

Council Member Wiggins said adjusting for a $1 million possible shortfall in a $30 million budget would trigger the need for talking about personnel. Mayor Waldorf inquired about projected savings if the Council chose to convert to curbside refuse collection. Mr. Horton said the last time that staff had estimated annual savings they projected savings of about $300,000.

Council Member Capowski requested that staff draft budget alternatives based on two and three cent property tax increases. Council Member Franck also requested that staff draft a no tax increase budget, so that the Council could examine programs and services in detail. Mr. Horton said if the Council instructed him to do so, he could bring forward a budget with the best thinking of the Town’s management team regarding options for reducing the Town’s budget.

The Council briefly discussed phasing of the sale of the recently-approved bonds, including the taking of a straw poll on this matter.

Mr. Horton said he would prepare a budget with reduction options and bond scheduling options based on the Council’s discussions at today’s planning session.

The Council briefly discussed salary, incentive and privatization matters. Council Member Andresen suggested that Council and citizen budget committees be discussed on January 29^th. The Council took a break from 1:55 to 2:05 p.m.

Discussion of Development Ordinance Matters

Council Member Franck requested the Council’s comments regarding his proposal for the establishment of a traffic corridor overlay zoning district. Council Member Andresen said the proposal had serious implications and merited Council discussion at a future meeting. Mayor pro tem Brown expressed her concurrence with this approach. Council Member Capowski said some good background would be helpful to facilitate a good discussion of the proposal.

Stating that the Town’s transportation management plan and payments-in-lieu systems were currently not working well for a number of reasons, Council Member Capowski asked the staff to prepare a report on possible changes to these provisions of the Development Ordinance. Council Member Andresen expressed her support for this proposal. Mayor Waldorf said another possibility would be for the Town to check out the level of interest for providing additional parking in the downtown area. Mayor pro tem Brown suggested that the matter of downtown parking in relation to development be placed on a future Council meeting agenda.

Mayor Waldorf and Council Members Capowski and Evans agreed to draft a report on downtown parking issues for consideration at a future Council meeting.

Council Member Andresen requested that the Council discuss the possibility of enlarging buffer and open space requirements for large special use permit requests. Council Member Evans said it seemed most logical to turn matters of this type over to the Planning Board for recommendations.

Council Member Franck said although he liked the idea of increasing open space requirements, he did not feel that buffering requirements required adjustment. Noting that he did not oppose discussing the matters, Council Member Pavão said he concurred with Council Member Franck on buffering and open space requirements.

Mayor pro tem Brown requested that staff prepare a report regarding development projects which had been completed with changes from the Council’s conditions of approval. After a brief discussion, there was Council concurrence for the Council to receive a brief staff report on the matter in the future.

Mayor pro tem Brown said she thought that the Council had agreed that staff would provide a listing of reasons for approval and denial relative to development applications. Mayor Waldorf said there was agreement for the staff to provide the Council with options in this regard. Council Member Capowski said the staff’s recommendations regarding approval or denial were made “on balance”. Council Member Franck said it would be useful for staff to outline possible reasons for denial of individual applications. Mr. Horton said staff could do a lot more in this regard to assist the Council.

Council Member Evans said the Council needed to look at the criteria for mixed-use zoning, review the definition of “open space” in the Development Ordinance and examine the Development Ordinance relative to affordable housing requirements. She also said there were a number of school-related matters which needed to be reviewed. Mayor Waldorf said that the School and Land Use Council would play a role in this last matter.

Council Member Andresen said she would come back to the Council with a report on possible changes to Resource Conservation District regulations in a few months.

Noting that a number of Council Members appeared to be interested in a review of the Town’s Comprehensive Plan, Council Member Chilton said one possibility would be for the Council to ask the Planning Board to make its case for review of the Comprehensive Plan.

Noting that the Planning Board was an important player in the regional examination of the Comprehensive Plan currently in process, Mayor pro tem Brown said it was important to put the Town’s Comprehensive Plan in the context of overall regional planning. Council Member Andresen suggested that there could be a follow-up agenda item on planning matters after the Council’s joint meeting with the Planning Board.

Council Member Pavão noted that Council Member Andresen and himself were in the process of reviewing evaluation and report forms relative to the annual performances of the Manager and Attorney. He noted that he and Council Member Andresen would report back to the Council on this matter in the near future.

Mayor Waldorf said she was proposing a joint Council meeting with the Chatham County Commissioners sometime in March to discuss mutual transit concerns and ways to continue to communicate with each other. Council Members Andresen and Capowski inquired about including Orange County Commissioners in the proposed joint meeting. After a brief discussion, there was Council concurrence for the Council to meet only with the Chatham County Board of Commissioners.

Noting that today’s session was drawing to a close, Council Member Andresen suggested that process issues could be clustered together for discussion on a future Council agenda. She added that any changes to the Procedures Manual could be given to Council Members Chilton and Franck, for inclusion in the draft to be considered by the Council in the future. Council Member Chilton said he and Council Member Franck would try to break the items into non-controversial and controversial categories. Mr. Horton said another possibility would be for the Council to set aside time for another follow-up meeting. Mayor Waldorf inquired about the possibility of an afternoon meeting. Council Members Chilton and Andresen said that Friday afternoons were best for their schedules. Mayor Waldorf said staff could poll Council Members about a convenient time for a follow-up to today’s session.

Following a brief critique of the day’s meeting, adjournment occurred at 3:26 p.m.