SUMMARY MINUTES

SUMMARY MINUTES OF A BUSINESS MEETING

OF THE CHAPEL HILL TOWN COUNCIL

TUESDAY, SEPTEMBER 7, 2004, AT 7:00 P.M.

Mayor Kevin Foy called the meeting to order at 7:00 p.m.

Council members present were Sally Greene, Ed Harrison, Cam Hill, Mark Kleinschmidt, Bill Strom, Dorothy Verkerk, Jim Ward, and Edith Wiggins.

Staff members present were Town Manager Cal Horton, Deputy Town Manager Florentine Miller, Assistant Town Manager Bruce Heflin, Town Attorney Ralph Karpinos, Town Information Officer Catherine Lazorko, Engineering Director George Small, Senior Development Coordinator J. B. Culpepper, Senior Long Range Planning Coordinator Chris Berndt, Planning Director Roger Waldon, and Town Clerk Joyce Smith.

Reception Honoring Advisory Board Members

Whose Terms Expired During FY 2003-2004

Item 1- Ceremonies:

1a. Presentation of Certificates of Appreciation to Former Advisory Board Members.

Mayor Foy recognized the following retiring members of the Town's boards and commissions:

Polly Vanderbilt, Community Design Commission (CDC). Ms. Vanderbilt described her experience on the CDC as interesting and enjoyable. She encouraged other citizens to become involved in Town boards and commissions.

Terry Swanson, Historic District Commission (HDC). Ms. Swanson described her ten years of service as very rewarding. She pointed out that there were two available seats remaining on the HDC, and she encouraged citizens to join.

Coleman Day, Planning Board. Mr. Day commented that there were many opportunities for citizens to contribute to the growth of Chapel Hill.

Laurent Hintz, Transportation Board. Mr. Hintz emphasized that the work that the Transportation Board and other boards had done was very important for the Town. He noted that transportation would be a major issue for Chapel Hill over the next ten or so years.

Steve Dobbins, Transportation Board. Mr. Dobbins praised the Town staff and Transportation Board members, adding that he had enjoyed having the opportunity to spend time and work with them.

Mayor Foy thanked the retiring board members and expressed confidence that many of them would continue being involved with Town issues. He reminded citizens that serving on boards and commissions is an integral part of what makes local governments operate effectively.

1b. Recognition of Mental Health Association of Orange County.

Mayor Foy introduced Executive Director Paula Hyman, who described the Association's mission to promote positive mental health to Orange County citizens through advocacy, education, collaboration and service. She outlined the Association's peer-based and family advocacy programs and listed various support groups that it offers. Ms. Hyman mentioned an upcoming November forum on suicide and depression. She said that a fundraiser, called Vintage Fair, would be held at the Eastgate Shopping Center on October 9 and 10, 2004.

Item 2 - Public Hearings: None.

Item 3 - Petitions by Citizens and Announcements by Council Members

3a. Petitions by citizens on items not on the agenda.

3a(1). Barbara Kline, re Request to Install Sidewalks on the South Side of Estes Drive from Halifax to Franklin Street; Address Safety Issues.

COUNCIL MEMBER VERKERK MOVED, SECONDED BY COUNCIL MEMBER GREENE, TO RECEIVE AND REFER THE PETITION TO THE MANAGER AND ATTORNEY. THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

3a(2). Joe Patterson, re Request for Expedited Review of Special Use Permit Application for Village Apartments.

COUNCIL MEMBER STROM MOVED, SECONDED BY COUNCIL MEMBER GREENE, TO RECEIVE AND REFER THE PETITION TO THE MANAGER AND ATTORNEY. THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

3a(3). Robert Hollister, re Request for Study of Traffic Speed on North Lakeshore Drive.

MAYOR PRO TEM WIGGINS MOVED, SECONDED BY COUNCIL MEMBER STROM, TO RECEIVE AND REFER THE PETITION TO THE MANAGER AND ATTORNEY. THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

3a(4). Orange County, re Request for Expedited Review of Special Use Permit Modification for Southern Orange Senior Center.

Florence Soltys explained that the Senior Center's lease at Galleria would expire on June 30, 2006. The new Center must be built on Homestead Road by that date, she explained, or the Senior Center would have to reduce programming. Ms. Soltys asked the Council to expedite review of the SUP so that the new Senior Center would be ready by June 2006.

COUNCIL MEMBER WARD MOVED, SECONDED BY MAYOR PRO TEM WIGGINS, TO RECEIVE AND REFER THE PETITION TO THE MANAGER AND ATTORNEY. THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

3a(5). Turnberry Lane and The Meadows of Chapel Hill Homeowners, Opposing Locating Charter School on Legion Road (Pace Academy).

MAYOR PRO TEM WIGGINS MOVED, SECONDED BY COUNCIL MEMBER WARD, TO RECEIVE AND REFER THE PETITION TO THE MANAGER AND ATTORNEY. THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

3a(6). Joe Patterson, re Request that the Council Explore the Possibility that the Village Apartments Renovation Project Could Avoid the Unintended Effects of Inappropriate Zoning Combined with LUMO (and the Requirement to Apply for an SUP); and that Staff Bring Back Options to the Council to Consider for Mitigating the Unintended Effects of LUMO on this and Similar Projects.

COUNCIL MEMBER STROM MOVED, SECONDED BY COUNCIL MEMBER GREENE, TO RECEIVE AND REFER THE PETITION TO THE MANAGER AND ATTORNEY. THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

3a(7). Rebecca Clark and John Hill, re Location of the IFC Shelter.

Ms. Clark expressed concern about the proposed Homeless Shelter location, stating that it could lead to crime in her neighborhood of Northside, and be particularly dangerous if the neighborhood school is reactivated. Ms. Clark stressed that she had worked at Town homeless shelters for many years and was not against them per se. She was merely opposing placing a shelter in the proposed location, she said.

John Hill, representing the Pine Knolls Community Organization, expressed concern about crime and children's safety if the shelter is placed in that neighborhood. He pointed out that shelter residents are sometimes banned from the shelter for 30 days for various reasons, leaving them nowhere else to go. Mr. Hill, a chemical engineer and ordained Baptist minister, explained that he had lived at the IFC Shelter at one point in his life. Some shelter residents feel discouraged about life and take their frustrations out on those whom they perceive as weak, he said. Mr. Hill noted that elderly people from Manley Estates were afraid that such aggression might be directed at them.

Mr. Hill complained that the IFC shelter was being run like a business, "with a revolving door," which takes in people coming from all over the country. He asserted that one registered child molester was currently being served there. Mr. Hill requested that the neighborhood be given an opportunity to address shelter programming and 24-hour supervision of shelter residents.

Mayor Foy pointed out that there was no item before the Council tonight regarding the IFC Shelter. He suggested that Council members treat the request as a petition and ask the Town Manager to bring back an update on the IFC shelter's status. Mr. Horton agreed to try and do so by the Council's first meeting in October.

COUNCIL MEMBER STROM MOVED, SECONDED BY COUNCIL MEMBER WARD, TO RECEIVE AND REFER THE PETITION TO THE MANAGER AND ATTORNEY. THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

Item 4 - Consent Agenda

Council Member Strom offered an amendment to 4l, asking that R-10 be referred to the Transportation Board and Bicycle and Pedestrian Advisory Board as well for review.

Mayor Foy suggested setting a deadline for accepting or rejecting this item, and Mr. Horton agreed.

With regard to 4b, Nominations to Various Advisory Boards and Commissions, Mr. Horton explained that the staff had provided an additional set of applications for the Special Committee to Consider Renaming Airport Road. He requested that these names be included with the other nominations before the Council this evening. Mr. Horton recommended that the Town advertise the Committee again and continue to receive nominations up to the evening on which the Council votes.

Mayor Foy proposed removing the portion of 4b having to do with the Special Committee to Consider Renaming Airport Road. Council members agreed by consensus to discuss the item later in the meeting.

COUNCIL MEMBER WARD MOVED, SECONDED BY COUNCIL MEMBER STROM, TO ADOPT R-1 WITH THE PORTION OF 4B REGARDING THE PROPOSED COMMITTEE TO STUDY THE RENAMING OF AIRPORT ROAD BE REMOVED, AND WITH 4L AMENDED TO REFER TO THE TRANSPORTATION BOARD AND THE BICYCLE AND PEDESTRTIAN BOARD AND TO SET A DEADLINE FOR ACCEPTING OR REJECTING THE ITEM. THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

A RESOLUTION ADOPTING VARIOUS RESOLUTIONS AND ORDINANCES (2004-09-07/R-1)

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 June 14, 21, and 30, 2004.
b.	Nominations to Various Advisory Boards and Commissions (R-2).
c.	Re-Establishing the Intergovernmental Parks Work Group (R-3).
d.	(1)	Recommendation of the Chapel Hill Public Arts Commission for an Artist Selected for the Town Operations Center.

	(2)	Selection of an Artist for Percent for Art Program at the Town Operations Center (R-4).
e.	Municipal Agreement for Sidewalks at Homestead Road and Rogers Road (R-5).
f.	Annual Budget Amendment to Reappropriate Funds for Prior Year Encumbrances (O-1).
g.	Budget Amendment to Complete Purchase of the Fire Training Facility (O-2).
h.	Two-Thirds Bonds Financing Alternative for Town Operations Facility (R-6).
i.	Amendment to the Performance Agreement with EmPOWERment, Inc. for Renovation of 501 Sykes Street (R-7).
j.	Rescheduling a Public Forum on the Town Parking Lots 2 and 5 Financial Analysis Report (R-8).
k.	Calling a Public Hearing on a Request to Close a Section of Laurel Hill Road Right-of-Way (R-9).
l.	(1)	Second Pritchard Park Art Garden Committee Report.
	(2)	Acceptance and Referral of Committee Report (R-10).
m.	Change in Membership to the Bicycle and Pedestrian Advisory Board (O-3).
n.	Report on the 2003-2004 Public Housing Assessment System Management Operations Certification (R-11).

This the 7^th day of September, 2004.

A RESOLUTION NOMINATING APPLICANTS TO VARIOUS ADVISORY BOARDS AND COMMISSIONS (2004-09-07/R-2)

WHEREAS, the applications for service on an advisory board or commission or other committees listed below have been received; and

WHEREAS, the applicants have been determined by the Town Clerk to be eligible to serve;

NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the following names are placed in nomination to serve on an advisory board or commission:

Chapel Hill Active Living By Design Partnership Advisory Committee

Regina Blalock

Emily Lees

Truls Ostbye

Library Building Committee

Kenneth Broun

June Dunnick

Jeffrey Pomerantz

Linda Sanders

Orange County Economic Development Commission

Anita Badrock

Charles Collier, III

William Kaiser

Jonathan Pletzke

Teresa Smith

Robert Ward

Personnel Appeals Committee

Charles Collier, III

Bernard Law

Pikuei Tu

Stormwater Management Utility Advisory Board

Lawrence Band

Donald Brewer

Harlan Cornell

William Foster

Patricia Hughes

Suzanne Lea

Technology Committee

Jeremy Collins

Martha Hoylman

Andrea Hundredmark

David Lewis

Will Raymond

This the 7^th day of September, 2004.

A RESOLUTION TO RE-ESTABLISH THE INTERGOVERNMENTAL PARKS (IP) WORK GROUP (2004-09-07/R-3)

WHEREAS, the Joint Master Recreation and Parks Work Group report of 1999, adopted by the elected boards of Orange County, Chapel Hill, Hillsborough and Carrboro, called for the creation of an inter-jurisdictional parks committee; and

WHEREAS, the elected boards duly created the Intergovernmental Parks Work Group (IPWG) in 2000 for a three-year initial duration, to promote communication between jurisdictions and allow for the sharing of ideas and opportunities for joint projects and initiatives; and

WHEREAS, during the three years of the Work Group (which included representatives from a broad cross-section of elected and advisory boards, school boards, and other interested parties), a number of successes were achieved by the communication and collaboration fostered through this mechanism, as outlined in the Intergovernmental Parks Work Group report of April 2004; and

WHEREAS, Work Group members surveyed in the report noted the importance of the IPWG forum for communicating on parks projects, development of brochures and others needs; and

WHEREAS, re-establishment of the Work Group is expected to continue to promote opportunities for coordination between all stakeholders and interested parties within the County;

NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council proposes that the Intergovernmental Parks Work Group be re-established to continue to foster communication and collaboration in parks efforts, with the same charge and membership as in the resolution of establishment adopted May 3, 2000, with one addition to allow for a fourth quarterly meeting each year.

This the 7^th day of September, 2004.

A RESOLUTION AUTHORIZING THE TOWN MANAGER TO ENTER INTO A CONTRACT WITH LARRY KIRKLAND FOR PUBLIC ART AT THE TOWN OPERATIONS CENTER (2004-09-07/R-4)

WHEREAS, the Council of the Town of Chapel Hill adopted a Percent for Art Program on March 4, 2002; and

WHEREAS, the Town Council has adopted a capital improvements program budget that includes the Town Operations Center project; and

WHEREAS, the Public Arts Commission has conducted an artist selection process consistent with the guidelines included in the resolution of March 4, 2002, and recommends that the Town Council authorize a contract between the Town and Larry Kirkland;

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 Larry Kirkland for a public art project at the Town Operations Center.

BE IT FURTHER RESOLVED that 1% of the final adopted budget for the Town Operations Center project shall be allocated for this public art project.

This the 7^th day of September, 2004.

A RESOLUTION REQUESTING COUNTY AUTHORIZATION TO ASSUME MAINTENANCE RESPONSIBILITY FOR A PROPOSED SIDEWALK ON ROGERS ROAD; AUTHORIZING A MUNICIPAL AGREEMENT WITH THE STATE FOR SIDEWALKS ON ROGERS AND HOMESTEAD ROADS (2004-09-07/R-5)

WHEREAS, the North Carolina Department of Transportation propose to make certain street and highway constructions and improvements within Orange County, said plans to consist of but not be limited to the provision of approximately 100 linear feet of sidewalk within Chapel Hill Town limits on SR 1777 (Homestead Road) and approximately 200 linear feet of sidewalk in the Chapel Hill joint planning area of Orange County on SR 1729 (Rogers Road); and

WHEREAS, pursuant to Chapter 936, Section 1 of the 1986 Session Laws of the General Assembly of North Carolina, the prior approval of the Orange County Board of Commissioners is required in order for the Town of Chapel Hill to assume maintenance responsibilities for the section of sidewalk on Rogers Road after installation; and

WHEREAS, the Department of Transportation and the Town of Chapel Hill propose to enter an agreement for the installation of the aforementioned highway improvements whereby the Town of Chapel Hill agrees to assume maintenance responsibilities for the sidewalks after installation;

NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council authorizes the Mayor to request that the Orange County Board of Commissioners authorize the Town to assume maintenance responsibilities for the sidewalk on Rogers Road after installation; upon such approval, the Council authorizes the Town Manager to execute a Municipal Agreement with the North Carolina Department of Transportation for said project.

This the 7^th day of September, 2004.

AN ORDINANCE TO AMEND “THE ORDINANCE CONCERNING APPROPRIATIONS AND THE RAISING OF REVENUE FOR THE FISCAL YEAR BEGINNING JULY 1, 2004” (2004-09-07/O-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, 2004” as duly adopted on June 14, 2003 and the same is hereby amended as follows:

This the 7^th day of September, 2004.

AN ORDINANCE TO AMEND “THE ORDINANCE CONCERNING APPROPRIATIONS AND THE RAISING OF REVENUE FOR THE FISCAL YEAR BEGINNING JULY 1, 2004” (2004-09-07/O-2)

This the 7^th day of September, 2004.

A RESOLUTION STATING OFFICIAL INTENT TO Issue General Obligation Bonds in the Maximum Amount of $1,000,000 To Pay Costs of Public Buildings (2004-09-07/R-6)

WHEREAS, the Town of Chapel Hill has underway a project for the construction of a facility referred to as the “Town Operations Center.” The Town has begun to incur initial costs in connection with this project, including engineering and design fees. Town staff has advised the Town Council that it may be desirable for the Town to issue General Obligations bonds in the upcoming fiscal year to provide funds for some of these initial costs. These bonds could be issued under the provision of law that allows the Town to issue General Obligation bonds to the extent of two-thirds of the Town’s net debt reduction for the previous fiscal year.

BE IT THEREFORE RESOLVED, as follows:

1. The Council makes an initial determination to proceed with the issuance of Town General Obligation bonds in the maximum amount of $1,000,000 to pay capital costs related to public buildings, including initial costs related to the Town Operations Center such as engineering, design and site preparation costs. The issuance of the bonds will be subject to further Board proceedings, including the conduct of a public hearing and approval from the North Carolina Local Government Commission (the “LGC”).

2. The Finance Officer is authorized and directed to proceed with the proper steps toward the issuance of such bonds, including proceeding with an application to the LGC for its approval of such bonds. The Council appoints the Finance Officer as the Town’s authorized representative with respect to the LGC application process.

3. The Town requests that the LGC approve the Town’s application for the issuance of such bonds. The Council makes the following findings of fact in support of its application for approval and its determination to proceed with this bond issue:

a) Financing initial costs of the operations center through the issuance of bonds is necessary and expedient for the Town, and the amount of bonds proposed is adequate and not excessive for the proposed purpose. The $1 million amount is the maximum that the Town may issue as “net debt reduction” bonds, and combining these bonds with the Town’s other proposed bond sale for 2004 will provide economies of scale and produce an effective financing package for the Town. The Town will finance the major portion of construction costs through an installment financing, and paying these early costs through a bond issue will simplify the later financing process and allow the Town to borrow the bulk of the necessary funds closer in time to when they will be needed.

b) The Town’s debt management and budgetary and fiscal management policies have been carried out consistently in accordance with the law.

c) The Town believes that any increase in the Town’s property tax rate necessary to provide for principal and interest payments on the bonds will be minimal, and in any case appropriate under all the circumstances. The Town is committed to the Town Operations Center project, and as described above the Town believes the use of these bonds is overall the most cost-effective way for the Town to provide for the initial costs of the project.

4. All Town officers and employees are authorized and directed to take all such further action as they may consider necessary or desirable in connection with the furtherance of the purposes of this resolution. All such prior actions of Town officers and employees are ratified, approved and confirmed. All other resolutions, or parts thereof, in conflict with this resolution are repealed, to the extent of the conflict. This resolution takes effect immediately.

BE IT FURTHER RESOLVED that the Council authorizes the Town Clerk to certify a copy of this resolution for the Local Government Commission.

This the 7^th day of September, 2004.

A RESOLUTION AUTHORIZING AN AMENDMENT TO THE TOWN’S PERFORMANCE AGREEMENT WITH EMPOWERMENT, INC. FOR THE RENOVATION OF 501 SYKES STREET (2004-09-07/R-7)

WHEREAS, the Town has an ongoing interest in community development activities in Chapel Hill; and

WHEREAS, on February 28, 2000, the Council authorized use of $55,000 of Community Development Neighborhood Revitalization Funds to purchase 501 Sykes Street for affordable housing purposes; and

WHEREAS, on February 1, 2001, the Town entered into a Performance Agreement with EmPOWERment, Inc. budgeting $30,000 of Community Development Neighborhood Revitalization funds to renovate a house located at 501 Sykes Street; and

WHEREAS, on January 14, 2002, the Council authorized an amendment to the Town’s Performance Agreement with EmPOWERment for the renovation of 501 Sykes Street to extend the Time of Performance until June 30, 2002, and to increase the renovation budget to $40,436; and

WHEREAS, on June 24, 2002, the Town entered into an amended Performance Agreement with EmPOWERment to extend the time of performance to December 31, 2002; and

WHEREAS, EmPOWERment has requested additional funds from the Town to complete renovation of 501 Sykes Street;

NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Town’s Performance Agreement with EmPOWERment, Inc. for renovation of a house at 501 Sykes Street is amended to: (1) increase the budget to complete the renovation of the house by $15,000 from $43,600 to $58,600; (2) extend the Time of Performance to renovate the property to January 31, 2005; (3) work with Orange Community Housing and Land Trust to sell the property within ninety days of receiving a Certificate of Occupancy; and (4) increase the eligible household income from 70% to 80% of the area median income as defined by the U.S. Department of Housing and Urban Development.

BE IT FURTHER RESOLVED that the Council authorizes the Manager to execute an amendment to the Performance Agreement with EmPOWERment to reflect the changes listed above.

This the 7^th day of September, 2004.

A RESOLUTION RESCHEDULING A FORUM ON FINANCIAL FEASIBILITY ANALYSIS FOR THE DEVELOPMENT OF PARKING LOTS 2 AND 5 (2004-09-07/R-8)

WHEREAS, on June 14, 2004, the Council authorized proceeding with the cost estimation and financial analysis phase of the Town Parking Lots 2 and 5 project and called a public forum for Monday, September 13, 2004, to obtain public comment on the financial analysis and the request for proposal process; and

WHEREAS, on August 25, 2004, the Council Committee on Lots 2 and 5 reached consensus on recommending the public forum date be postponed to September 27, 2004, to provide the consultant time to complete the analysis;

NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council reschedules the September 13, 2004, public forum on the financial analysis and the request for proposal process to Monday, September 27, 2004, at 7 p.m. in the Council Chamber, Town Hall, 306 North Columbia Street.

This the 7^th day of September, 2004.

A RESOLUTION CALLING A PUBLIC HEARING ON THE PROPOSED CLOSURE OF A SECTION OF LAUREL HILL ROAD RIGHT-OF-WAY (2004-09-07/R-9)

BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council hereby declares it’s intent to consider closing a section of Laurel Hill Road right-of-way as shown on Orange County Tax Map 7.66, which said right-of-way is approximately 60 feet wide and 1,000 feet in length.

BE IT FURTHER RESOLVED that the Council calls a Public Hearing at 7:00 pm Monday, October 18, 2004, in the Council Chamber at Town Hall, 306 N. Columbia Street, Chapel Hill, North Carolina to receive public comment on the proposed closing of said right-of-way.

This the 7^th day of September, 2004.

A RESOLUTION ACCEPTING THE REPORT OF THE SECOND PRITCHARD PARK ART GARDEN COMMITTEE AND REFERRING THE REPORT TO THE MANAGER, THE CHAPEL HILL PUBLIC ARTS COMMISSION, THE LIBRARY BOARD, AND THE PARKS AND RECREATION COMMISSION FOR COMMENTS AND RECOMMENDATIONS (2004-09-07/R-10)

WHEREAS, on November 25, 2002, the Council adopted the Report of the Pritchard Park Art Garden Committee, which recommended that the Town partner with the Siena Hotel in a manner that would allow a seamless transition between the designs of the two properties, provide funding for the Town’s park and art project, and allow the Siena Hotel to address its parking needs; and

WHEREAS, on March 22, 2004, the manager of the Siena Hotel petitioned the Council requesting further discussions concerning a proposed public-private partnership for development of Pritchard Park and the Siena Hotel; and

WHEREAS, the Council created a second Pritchard Park Art Garden Committee to meet with the staff of the Siena Hotel; and

WHEREAS, the second Pritchard Park Art Garden Committee has prepared a report for the Council with recommendations;

NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council accepts the Report of the Second Pritchard Park Art Garden Committee and refers the report to the Manager, the Bicycle and Pedestrian Advisory Board, the Chapel Hill Public Arts Commission, the Library Board, the Parks and Recreation Commission, and the Transportation Board for comments and recommendations.

BE IT FURTHER RESOLVED that the Manager is authorized to report to the Council in November 2004 with recommendations related to the Committee’s report.

This the 7^th day of September, 2004.

AN ORDINANCE AMENDING ARTICLE XII, CHAPTER 2 OF THE TOWN CODE REGARDING THE COMPOSITION OF THE BICYCLE AND PEDESTRIAN ADVISORY BOARD (04-09-08/O-3)

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

Section 1.

Section 2-171 of the Town Code is hereby amended to read as follows:

“Sec. 2-171. Membership, terms.

The bicycle and pedestrian advisory board shall consist of ten (10) members appointed as hereinafter provided. The Town Council shall appoint ~~two (2)~~ one (1) representative from the Town of Carrboro, ~~and~~ one (1) representative from Orange County, one (1) representative outside the town limits of Chapel Hill from either Durham City/County or Chatham County to be members of the board. The University shall appoint one (1) representative from their bicycle management to be a member of the board. The terms of office shall be three (3) years, or until their successors are appointed and qualified, except that the initial terms of members first appointed shall be as follows: three (3) members shall be appointed for a period of one (1) year, three (3) members shall be appointed for a period of two (2) years, and four (4) members shall be appointed for a period of three (3) years. Members may be reappointed to succeed themselves. The terms of all members shall expire on the 30^th day of June following the end of the final year of their terms.”

Section 2. This ordinance shall be effective September 8, 2004.

A RESOLUTION APPROVING A PUBLIC HOUSING ASSESSMENT SYSTEM (PHAS) MANAGEMENT OPERATIONS CERTIFICATION (2004-09-07/R-11)

WHEREAS, the Department of Housing and Urban Development requires that the Council of the Town of Chapel Hill approve a Certification for fiscal year ending June 30, 2004;

NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council approves the attached Public Housing Assessment System (PHAS) Management Operations Certification.

This the 7^th day of September 2004.

Item 5 - Information Items

ALL INFORMATION REPORTS WERE ACCEPTED BY CONSENSUS.

Item 6 - Consideration of Amending the Town Code

to Allow the Service of Malt Beverages and Unfortified Wine

to Restaurant Patrons at Sidewalk Tables in Commercial Districts

Town Attorney Ralph Karpinos reviewed the amendment and explained that businesses would continue to need State alcohol permits. He explained that areas designated for such service would be subject to Town review and approval to ensure that adequate space is provided for pedestrian traffic and that other safety issues are addressed. Mr. Karpinos noted that this amendment was in response to a petition that the Council had received in June.

Council Member Verkerk determined that "unfortified wines" include port, sherry and others with an alcohol content of more than 12%. Such wines would not be included in this program, Mr. Karpinos explained.

Robert Poitras, owner/operator of The Carolina Brewery, encouraged Council members to accept the amendment and allow the responsible sale and service of approved alcoholic beverages. It was he who had submitted the petition in June, he said. Mr. Poitras described Chapel Hill's Downtown as a beautiful area that could be made much better with the Council's help tonight.

Marc Pons, representing the Downtown Commission, expressed support for the petition. He remarked that sidewalk dining would set a positive ambiance and atmosphere that would bring more people to the Downtown and benefit other businesses as well. Mr. Pons stated that Council approval would send another signal that Chapel Hill's local government stands behind its businesses.

MAYOR PRO TEM WIGGINS MOVED, SECONDED BY COUNCIL MEMBER KLEINSCHMIDT, TO ENACT O-4A. THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

AN ORDINANCE AMENDING SECTIONS 3-2, 3-3 AND PORTIONS OF CHAPTER 17, ARTICLE VI OF THE CODE OF ORDINANCES OF THE TOWN OF CHAPEL HILL TO ALLOW FOR THE SALE AND CONSUMPTION OF ALCOHOLIC BEVERAGES IN CONJUNCTION WITH PERMITTED SIDEWALK DINING AND TO PERMIT SUCH ACTIVITIES IN COMMERCIAL AREAS IN ADDITION TO THE DOWNTOWN (2004-09-07/O-4)

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

Section 1. Section 3-2 of the Town Code is hereby revised by adding a new paragraph, to read as follows:

“The provisions of this Section shall not apply to the service of malt beverages and unfortified wines to, or the possession and consumption of malt beverages and unfortified wines by, persons seated and receiving food service at locations where the sale of food and beverages is permitted under Section 17-88 of the Town Code, provided that the applicable provisions of Article VI, Chapter 17 of the Town Code are followed and further provided that the business serving the malt beverages and unfortified wines shall have all required state and town permits required for the location on the public right-of-way where the sale and consumption of such beverages are taking place.”

Section 2. Section 3-3 of the Town Code is hereby revised by adding a new paragraph, to read as follows:

Section 3. Section 17-76 of the Town Code is hereby revised to read as follows:

“Sec. 17-76. Legislative findings.

The council hereby finds that:

(a) Increasing the vitality of the Town’s ~~Town Center-1 and -2~~ commercial zoning districts is in the best interest of the citizens of the Town of Chapel Hill and the public health, safety and welfare;

(b) The Town Center-1 and-2, Neighborhood Commercial, Neighborhood Commercial-Conditional, Community Commercial, and Community Commercial-Conditional zoning districts are in need of special efforts to enhance their vitality; and such efforts will promote the public health, safety and welfare;

(c) Permitting limited sales of food and ~~non-alcoholic~~ beverages by businesses adjacent to public sidewalks in the Town Center-1 and-2, Neighborhood Commercial, Neighborhood Commercial-Conditional, Community Commercial, and Community Commercial-Conditional zoning districts will enhance the vitality of the downtown and other commercial areas of Chapel Hill and the health, safety and welfare of the citizens of the town.”

Section 4. Section 17-86 of the Town Code is hereby revised to read as follows:

“Sec. 17-86. General requirements for exceptions to this article.

Sale and offering for sale of food shall be subject to the following requirements:

(a) The sale of food under this article shall be limited to the further restrictions in this article.

Businesses with street frontage in the Town Center-1 and-2 Neighborhood Commercial, Neighborhood Commercial-Conditional, Community Commercial, and Community Commercial-Conditional zoning districts may use the sidewalk area in front of their business, or in front of an adjacent property, with the concurrence of the affected property owners, and with the permission of the town manager. The town manager shall determine where sales are permissible on the basis of whether room is available in front of each business to permit at least six (6) feet of clear passage for pedestrians and all other restrictions of this article in addition to the space used for sales. This minimum clear passage width may be increased if the town manager determines it is necessary in specific locations to provide adequate and safe pedestrian flow.

(b) Sales permitted under this article shall be within the Town Center-1 and-2, Neighborhood Commercial, Neighborhood Commercial-Conditional, Community Commercial, and Community Commercial-Conditional districts as defined in the Chapel Hill Land Use Management Ordinance and Zoning Atlas.

(c) Chairs and tables and related barriers, approved by the town manager, may be placed on the sidewalk; these tables and chairs and related barriers shall have a maximum height of four (4) feet and shall have a maximum length of five (5) feet and a maximum width of three (3) feet.

(d) Activities authorized under this article shall comply with all applicable laws, ordinances and regulations, including but not limited to those pertaining to noise control, health, fire protection, litter control, business licenses, zoning, signs, and traffic safety.

(e) Activities permissible under this article shall not interfere with or impede the safe and orderly flow of pedestrian and vehicular traffic; shall leave clear for pedestrian traffic a continuous area of paved sidewalk at least six (6) feet wide, or at least six (6) feet of width of normally traveled area if there is no paved sidewalk; and shall leave clear for access purposes an area at least three (3) feet wide next to the curb or edge of public streets where parking or standing of vehicles is permitted.

(f) Sidewalk sales under this article shall not be conducted:

(1) Within ten (10) feet of a fire hydrant, driveway, alley used by vehicles, or of a parking space for handicapped people.

(2) In any manner which damages or endangers any tree or shrub; within the area of a tree grate, fence or other protective device; or in the area of the roots of a tree or shrub if such area is unpaved, and/or within ten (10) feet of the base of the tree or within three (3) feet of the base of the shrub.

(3) In intersection or bus stop areas pursuant to section 17-82.

(g) The chairs and tables and any related barriers placed on the sidewalk must be removed by midnight and may not be placed on the sidewalk prior to 7:00 a.m. The chairs and tables and any related barriers must be removed in inclement weather.”

Section 5. Section 17-88 of the Town Code is hereby revised to read as follows:

“Sec. 17-88. Sidewalk sales by downtown businesses.

A business in the Town Center-1 and-2, Neighborhood Commercial, Neighborhood Commercial-Conditional, Community Commercial and Community Commercial-Conditional zoning districts which (a) occupies building space at street level and (b) immediately fronts on and shares a common boundary with a public sidewalk, or is separated from such sidewalk only by landscaped areas, may, upon receipt of a permit from the town, sell food on the portion of the sidewalk directly in front of and nearest each business's respective space within the building or in front of an adjacent property with the concurrence of that property owner subject to the following:

(a) If two (2) or more businesses with street level frontage occupy the same property, each shall be limited to the portion of the sidewalk directly in front of and nearest each business's respective space within the building or in front of an adjacent property with the concurrence of that property owner.

(b) Use of the public sidewalk area under this section shall not obstruct the entrances or exits of any building, and shall not interfere with or impede the safe and orderly flow of pedestrian traffic.

(d) A business permitted to sell under this section may only sell food and non-alcoholic beverages and may not assign or delegate its space or authority under this section to other persons.

(e) A business which vacates a building location shall not use the public sidewalk in front of such location.

(f) A business which occupies no building space at the street level shall not conduct sidewalk sales under this section.

(g) Before conducting sidewalk sales under this section, the business shall agree to indemnify the town from any damages or claims and shall provide evidence of a general liability insurance policy, which policy names the town as an additional insured, with minimum liability coverage of one hundred thousand dollars ($100,000.00) per person bodily injury; three hundred thousand dollars ($300,000.00) per occurrence bodily injury and twenty-five thousand dollars ($25,000.00) per person occurrence property damage.

(h) The town manager reserves the right to revoke the permit to place tables and chairs and related barriers on the public right-of-way, if any conditions of approval are not met, and to temporarily suspend permits during times of special events in the downtown area.

(i) It is unlawful to consume on a business’s sidewalk dining area alcoholic beverages not purchased at that business or to remove alcoholic beverages in open containers from that business’s sidewalk dining area. Any business serving alcoholic beverages shall post a sign, visible from the sidewalk dining area, including this information.”

Section 6. This ordinance shall become effective September 8, 2004.

This the 7^th day of September, 2004.

Item 7 - Presque Isle Residential Planning Development Special Use Permit –

Request to Extend Completion Time Limit

Mr. Horton stated that the Town had received this request in a timely manner. The extension meets the requirements established by the ordinance, he said, and recommended its approval.

Kevin Capalbo, legal council for the Presque Isle Homeowners Association, took exception to some of the findings in the Town Manager's report. He argued that the developer, the ARD Group, had not exemplified due diligence in completion of the project. Mr. Capalbo asked that the extension be shortened to the end of December 2004, not as a punishment but as an incentive to the ARD Group to finish a project that had dragged on for too long. Mr. Capalbo added that this was why the Homeowners' Association had retained his services. He expressed concern that a full 12-month extension would lead to delays in making repairs such as retention facility improvements and landscaping. Mr. Capalbo added that there were defects in some of the retention pond improvements that already had been made and that the landscaping was inconsistent with the amount and type of plantings that the Council had approved.

Mr. Capalbo argued that it would be prudent to allow the ARD Group to have additional time to complete these items and to construct the remaining two new residences. However, he asked that the Council limit the extension to December 31, 2004, and that the Town Manager and Council pay particular interest to this project as it reaches conclusion by the end of the year.

Mr. Horton stated that the staff had been paying careful attention to this project because its neighbors had reported their concerns. The Town had been diligent in inspecting improvements, he said, and was withholding two Certificates of Occupancy until all of the SUP requirements, including those noted by the Homeowners’ Association, had been corrected. Mr. Horton pointed out that withholding the two permits had established a significant economic incentive for the developer to finish the work in a manner that meets everyone's requirements.

Mr. Capalbo replied that the landscaping and retention pond would be severely affected by winter weather if it were allowed to "drag on" to that portion of the year. He expressed concern that winter weather would also provide an excuse to delay the work into the springtime.

Mayor Foy verified that Mr. Horton still recommended adoption of R-12A.

Council Member Hill asked what leverage the Town would gain by not granting the ARD Group's request. Mr. Horton replied that he was not sure it would be greater than that gained by withholding Certificates of Occupancy. Council Member Hill verified that the Town can impose a $100/day penalty for non-compliance of the ordinance and commented that there would be some greater incentive then if the deadline were not extended.

Mayor Foy determined that not extending the deadline to some specified time would have legal implications. Mr. Horton explained that the Town would have to declare the ARD to Group to be in violation and then begin the process.

Council Member Strom verified that the developer would have the option of coming in and asking for another extension if the Council changed the date to December 31, 2004. Mr. Horton added that fines would not begin, under the ordinary process, if the developer filed for an extension. The ARD Group had acted with due diligence and good faith based on the evidence available to the Town, Mr. Horton said, but he acknowledged that this was an arguable point.

Council Member Greene determined that the June date had been arrived at because it marked a one-year extension.

COUNCIL MEMBER VERKERK MOVED R-12A, AS AMENDED TO CHANGE THE COMPLETION DATE TO DECEMBER 31, 2004. COUNCIL MEMBER STROM SECONDED.

Council Member Kleinschmidt asked how that would be more desirable. Council Member Greene replied that it would give an incentive to complete the work in the fall. If the developer cannot reasonably complete the work and asks for an extension, then the Town ends up with what the Manager had recommended, she pointed out.

Mayor Foy noted that there might also be value in having the developer report back to the Town in December.

Council Member Kleinschmidt argued that it should be clearly stated that the Homeowners Association's requests must be carried out or the Town would seriously consider declaring the ARD Group in non-compliance. Mayor Foy pointed out that the developer must proceed with due diligence and good faith. The ARD Group should understand that by not granting them a year the Council is indicating that it takes the situation seriously and will review it in a couple of months. Council Member Kleinschmidt remarked that it would be at total of five years extended on to the original deadline. The point of not due diligence was approaching, he said.

THE MOTION WAS ADOPTED UNANIMOPUSLY (9-0).

A RESOLUTION APPROVING A REQUEST FOR AN EXTENSION OF THE COMPLETION DATE FOR PRESQUE ISLE (2004-09-07/R-12a)

WHEREAS, the ARD Group, Inc. has requested an extension of the completion time limit for Presque Isle; and

WHEREAS, Article 4.5.5 of the Chapel Hill Land Use Management Ordinance requires Council to make the determination that a) the permit holder submits the request within 60 days of the completion time limit; b) the permit holder has proceeded with due diligence and good faith; and c) conditions have not changed so substantially as to warrant Council reconsideration of the approved development; and

WHEREAS, a) the permit holder submitted the request within 60 days of the completion date; b) the permit holder has proceeded with due diligence and good faith; and c) conditions have not changed so substantially as to warrant Council reconsideration of the approved development;

NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council approves the request of ARD Group, Inc. for the extension of the completion date of the Presque Isle Special Use Permit to December 31, 2004, to allow construction of the Residential Planned Development in accordance with the December 20, 1999 Zoning Compliance Permit.

This the 7^th day of September, 2004.

Item 8 – Land Use Plan Issues

(a) Update on Land Use Plan Amendment to Identify the Locations of Potential School Sites.

(b) Calling a Public Hearing on Potential Land Use Plan Amendment to Identify the Locations of Potential School Sites.

Mr. Horton explained that the Council had worked on this matter at the request of the School Board. He noted that the Council also had a policy of working cooperatively with the School Board to reserve sites to be considered for school development.

With regard to Agenda Item 8a, Long Range Planning Coordinator Chris Berndt outlined the two-part agenda item. She explained that R-13a would have the Council adopt the requested sites with the exception of the Legion Road property. R-13b would include all of the sites that the School Board had requested, including the Legion Road property, she said. Ms. Berndt stated that R-13c would defer action on all sites until October 27, 2004. The staff was recommending that the Council adopt R-13a, she said. Ms. Berndt noted that Agenda Item 8b would call a public hearing on January 19, 2005, to initiate changes to the Land Use Management Ordinance (LUMO) to reflect recent changes in State enabling legislation.

Mayor pro tem Wiggins asked if applications had been filed with the Town on any property other than the Legion Road property. Town Planning Director Roger Waldon replied that developer Jack Smyre had applied for modification of the master plan and SUP for Chapel Hill North. Because that application had been filed before that site would have been designated, the designation does not apply to that application, Mr. Waldon said. Mr. Horton added that this was Site 4 on the map.

MAYOR PRO TEM WIGGINS MOVED, SECONDED BY COUNCIL MEMBER STROM, TO ADOPT R-13A. THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

A RESOLUTION APPROVING AN AMENDMENT TO THE TOWN’S 2000 LAND USE PLAN TO IDENTIFY POTENTIAL SCHOOL SITES (2004-09-07/R-13a)

WHEREAS, the Town of Chapel Hill Comprehensive Plan adopted by the Council on May 8, 2000, designates 5 potential school sites identified by the Chapel Hill-Carrboro Board of Education on the Land Use Plan; and

WHEREAS, on September 22, 2003, the Town Council adopted Sections 4.5.8 and 4.7.8, Reservation of School Sites, as modifications to the Land Use Management Ordinance which extends the scope of reservation for school sites by the Chapel Hill-Carrboro Board of Education to other forms of development requiring approval as Site Plans, Special Use Permits or Special Use Permit modifications; and

WHEREAS, on January 8, 2004, the Chapel Hill-Carrboro Board of Education requested an amendment to the Land Use Plan;

NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council amends the 2000 Land Use Plan as shown on Map 2 Option A attached to this memorandum to add sites to the Plan and delete sites from the Plan without potential site 1 (Legion Road) shown on Map 1.

BE IT FURTHER RESOLVED that the Council defers consideration of further amending the 2000 Land Use Plan as shown on Map 1 for potential Site 1 (Legion Road) until October 27, 2004.

This the 7^th day of September, 2004.

COUNCIL MEMBER STROM MOVED, SECONDED BY COUNCIL MEMBER VERKERK, TO ADOPT R-14. THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

A RESOLUTION SCHEDULING A PUBLIC HEARING TO AMEND LAND USE MANAGEMENT ORDINANCE PROVISIONS REGARDING DESIGNATION OF POTENTIAL SCHOOL SITES ON CHAPEL HILL’S LAND USE PLAN (2004-09-07/R-14)

BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council hereby schedules a Public Hearing for January19, 2005, for the purpose of considering amending Chapel Hill’s Land Use Management Ordinance provisions regarding designation of potential school sites on Chapel Hill’s Land Use Plan.

This the 7^th day of September, 2004.

Item 9 - Report from Mayor’s Obey’s Creek Committee

regarding Discussions on Proposed Development on U.S. 15-501 South

Council Member Ward, Chair of the Obey's Creek Committee, expressed appreciation for the developers' proactive approach, noting that they had sought Council input early in the process. Council Member Ward asked Mr. Waldon to review the process and present the Committee's conclusions.

Mr. Waldon explained that throughout discussions the Committee had compared this proposal to the Town's Comprehensive Plan, the Southern Small Area Plan, and zoning regulations. They had questioned whether or not to encourage this kind of development, which might mean changing the Town's policy. The Committee had decided to propose Resolution R-15, which would encourage continued thinking about development as well as the Council's intention that affordable housing be developed there, Mr. Waldon explained. If an affordable housing proposal were to come forward, then Resolution R-15 would encourage the developers to think about higher intensity for that site if the higher intensity were devoted to affordable housing, he said.

Council Member Ward explained that Resolution R-15 states that the land should be developed as it currently was zoned. A way to achieve greater density is to be aggressive in finding ways to provide more affordable housing, he said.

Mayor Foy noted that Council Members Hill, Strom and Wiggins were also on the Committee. He inquired about a Town-owned strip of land that bisects the site. Mr. Horton replied that the property was situated in a way that might allow the Council to impose an impediment to development if it wished to do so.

Council Member Greene thanked the Committee for their suggestions and pointed out that exchanging density for affordable housing was how inclusionary zoning would be achieved in the future.

COUNCIL MEMBER VERKERK MOVED, SECONDED BY COUNCIL MEMBER HILL, TO ADOPT R-15. THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

A RESOLUTION OFFERING GUIDANCE TO PETITIONERS SEEKING TO PREPARE DEVELOPMENT PLANS FOR PROPERTY KNOWN AS OBEY’S CREEK (2004-09-07/R-15)

WHEREAS, on May 10, 2004, Mr. Scott Kovens and Mr. Eric Chupp brought a petition to the Town Council, seeking discussion of a proposed Obey’s Creek development. The site is on the east side of Highway 15-501 south, across from Southern Village; and

WHEREAS, a Mayor’s Committee was appointed to pursue discussions of this proposed development, and to bring suggestions back to the Town Council; and

WHEREAS, the Committee has completed and presented its work, and the Town Council has reviewed the circumstances of this site and this proposed development;

NOW, THEREFORE, BE IT RESOLVED, by the Council of the Town of Chapel Hill that the Council offers the following guidance regarding potential development plans for this property:

Development plans should be drawn for this property in accordance with existing land use policies and regulations.

The Council encourages development of affordable housing on this site, and encourages the petitioners to develop plans in accordance with existing regulations that make provisions for 15% of the housing that is developed to be affordable to individuals and families making 80% or less of the area median income; the Council invites the petitioners to propose development intensities greater than current regulations permit, with all such increases in intensity devoted to provision of affordable housing beyond that which typically would be expected. The Council encourages the applicant to pursue opportunities for partnership with a local housing not-for-profit organization such as Orange Community Housing and Land Trust, or Habitat for Humanity.

This the 7^th day of September, 2004.

Item 10 - Proposed Change in Schedule for Review

of Land Use Management Ordinance Text Amendments

Mr. Horton mentioned the Planning Department's normally heavy workload and said that they were in one of the heaviest seasons for concept plan reviews. In the interest of completing the work that the Council already had requested, Mr. Horton recommended that Council members adopt the revised schedule.

Mr. Waldon directed the Council's attention to pages 2 and 3 of the memo and the specific items that would be deferred. He noted that a cluster of issues dealing with stormwater management would not be completed by the fall and asked to readjust the schedule to bring those before the Council in the spring of 2005. Other items would not be ready until the fall of 2005, he said. Mr. Waldon expressed regret that the Planning Department could not achieve all that the Council had requested. He asked Council members to consider the new schedule.

Mayor Foy, referring to the parking schedule in Section 5.9, asked what the Council would receive in November. Mr. Waldon replied that the Town had contracted with Traffic Engineering Consultant Ray Moe to provide a set of revised parking requirements. Mr. Moe had collected much data and had submitted a report, he said, which the Town staff was reviewing and would present to the Council in November along with staff recommendations and suggestions. Mr. Waldon added that the report would include a specific set of revised parking requirements on which the Council could call a public hearing if they wish.

Council Member Strom mentioned a paragraph on page 3: "Planned Development-Housing for multi-family development with more than 7 units/acre be reduced, from 5 acres to 1 acre." He asked Mr. Waldon to refresh his memory on this issue. Mr. Waldon replied that a citizen had suggested this at a Council meeting but the Council had not responded to the suggestion. The staff thought it was a good idea to include it in case the Council wanted to address it, he said. Council Member Strom urged other Council members to consider it and to add it to the list to be considered in June 2005. Mr. Waldon agreed, but suggested that it be reduced to 3 acres rather than 1 acre.

Council Member Harrison commented that the way in which the staff had laid out this action plan showed a great deal of intellectual integrity and sound management. He thanked the staff for that. Mr. Horton replied that the Council "should always expect that from us."

Council Member Strom asked if an item on clarifying the formula for payment-in-lieu of affordable housing could be addressed this fall. Mr. Horton replied that the staff was "just about overwhelmed at this point," but would make their best effort to get it done in the early spring. He offered, however, to try and identify something else that could be deferred if this item was urgent.

Council Member Greene stated that clarifying the formula seemed like a very small, discrete item. She would like the Council to revisit the Small House Ordinance and discuss revising the Affordable Housing regulations, she said, adding that this was merely a small part of all that. Mr. Waldon replied that writing a report regarding the formula would not be a difficult task. The staff had thought the Council wanted a rethinking and re-examination of the larger issues, he said. Mr. Waldon agreed that the staff could easily provide a short piece of writing clarifying how the current approach works.

Council Member Kleinschmidt expressed concern that getting this piece of information would trigger a discussion of all of the issues regarding Affordable Housing. He expressed support for substituting something else for this item and leaving the Affordable Housing discussion for the spring. Mr. Horton suggested that the Council change it to the spring and challenge the staff to accomplish it with the understanding that they might be able to get it done by adjusting the schedule for some other item. Mayor Foy asked what the range of possible issues might be. Mr. Horton offered to outline those by the business meeting after next. Council Member Ward expressed support for discussing Affordable Housing in the spring, but added that he'd like clarification of the formula before then.

Mayor pro tem Wiggins wondered about having a small Council committee work with the staff on a proposal for discussion at the Council retreat in January 2005.

Council Member Greene suggested that such a committee include a couple of Community Design Commission and Planning Board members. Other Council members agreed, but Mr. Horton pointed out that providing staff services would be the same thing as asking the staff to go ahead and do the work now. He asked to bring an alternate proposal back at the Council's next regular meeting.

Mayor Foy suggested bringing the whole thing back at the September 27, 2004, meeting along with information about how it might work if the Council did or did not form a committee.

Mayor Foy inquired about the status of the Design Manual. Mr. Waldon replied that the update had been completed and provided to the Council as an Information Report. Mr. Horton commented that there would be periodic additions to the Manual as additional design details were developed or as the Council adopts addition design guidelines.

Council Member Strom verified with Mr. Horton that the additional paragraph regarding Planned Development-Housing would be included with the adjustments on pages 2 and 3 of the memo.

ACCEPTED BY CONSENSUS.

Item 11 - Proposed Council Calendar of Meetings through December 2005

Mr. Horton noted that the Council calendar was also a planning document for advisory committees and boards and for interested citizens. The staff had done its best to take into account any holidays or religious observances, he said, adding that he welcomed additions and/or corrections from the Council.

Mayor Foy pointed out that he would have to attend a conference on June 13, 2005, the date of the meeting at which the Council was scheduled to adopt the budget. After discussion, Council members agreed to reverse the public hearing scheduled on June 20^th with the business meeting scheduled on the June 13, 2005.

Council Member Kleinschmidt commented that he would not be at the November 22, 2004, and November 21, 2005, meetings due to an annual conference that would occur during those weeks.

MAYOR PRO TEM WIGGINS MOVED, SECONDED BY COUNCIL MEMBER WARD, TO ADOPT R-17, AS AMENDED TO REVERSE THE JUNE 13, 2005, AND JUNE 20, 2005, MEETINGS, WITH THE 13^TH AS A PUBLIC HEARING AND THE 20^TH AS A BUSINESS MEETING. THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

A RESOLUTION ADOPTING A CALENDAR OF COUNCIL MEETINGS THROUGH DECEMBER 2005 (2004-09-07/R-17)

Remainder of 2004

Month	Day of week	Date	Type of Meeting	Notes
September	Tuesday	7	Business
	Monday	13	Business
		15-16		Rosh Hashanah (sundown on Wednesday the 15^th through sundown on Thursday the 16^th)
	Monday	20	Hearing
		24-25		Yom Kippur (sundown on Friday the 24^th through sundown on Saturday the 25^th)
	Monday	27	Business
	Wednesday	29	Assembly of Governments	Southern Human Services Center, 7:30 p.m.
October	Monday	11		Columbus Day observed ( not a Town holiday)
	Monday	11	Business
	Tuesday	12		University Day
		13-17		UNC Fall Break (5:00 Wednesday the 13^th through Sunday the 17^th)
	Monday	18	Hearing
	Thursday	21	Joint Planning Hearing	Southern Human Services Center, 7:30 p.m.
		24-26		NCLM Conference (Sunday the 24^th through Tuesday the 26^th)
	Wednesday	27	Business
November	Tuesday	2		Election Day
	Monday	8	Business
November	Thursday	11		Veterans Day ( not a Town holiday)
	Monday	15	Hearing
	Monday	22	Business
	Thursday, Friday	25-26		Thanksgiving holidays
		30		NLC Congress of Cities (Tuesday the 30^th through Saturday the 4^th)
December		1-4		NLC Congress of Cities continues (Tuesday the 30^th through Saturday the 4^th)
		7-8		Hanukkah (sundown on Tuesday the 7^th through Wednesday the 8^th)
	Monday	6	Business
		19		UNC December Commencement (Sunday)
		24, 27-28		Christmas holidays (Friday, Monday, and Tuesday)
	Friday	31		New Year’s Day holiday

2005

Month	Day of week	Date	Type of Meeting	Notes
January	Saturday	1		New Year’s Day
	Monday	10	Business	Human Services Advisory Board’s annual Needs Report
	Thursday	13	Planning Session	8:30 a.m., location TBD; includes budget/ financial overview
	Monday	17		Martin Luther King, Jr. holiday
	Wednesday	19	Hearing
	Monday	24	Business
	Wednesday	26	Public Forum	Budget, capital program, Comprehensive Grant, HOME program, Community Development grant, Downtown Service District; potential legislative requests
February	Wednesday	9	Budget Work Session	Advisory board presentations; presentation by Downtown Economic Development Corporation; 4:00-7:30 p.m.
	Monday	14	Business
	Wednesday	16	Budget Work Session	Advisory board presentations; presentation by the Visitors Bureau; 5:30 – 8:30 p.m.
	Monday	21		Presidents Day (Monday; not a Town holiday)
	Monday	21	Public Hearing
	Wednesday	23	Budget Work Session	Presentation by Departments; 4:00 – 6:00 p.m.
	Friday	25	Budget Work Session	Presentation by Departments; 12 noon – 5:00 p.m.
	Monday	28	Business
March	Monday	7	Business	Submittal of proposed 2005-2006 public housing budget; Consideration of adopting legislative program; Submittal of potential changes to service plan for Downtown District for public hearing on May 11 Request to County for Library, Parks and Recreation and Project Turnaround funding; authorizing boards to make presentations to the County Commissioners
		11-15		NLC Congressional City Conference (Washington, D.C.)
		11-20		UNC Spring Break (5:00 Friday the 11^th through Sunday the 20^th)
	Monday	21	Hearing
March	Wednesday	23	Public Forum	Status report on development of 2005-2006 budget; capital program; Comprehensive Grant, HOME grant program, CD grant; and changes to the Downtown Service District service plan
	Friday	25		Good Friday holiday
		25-1		Chapel Hill-Carrboro Schools Spring Break (Friday the 25^th through Friday the 1^st)
	Monday	28		Easter Monday (not a Town holiday)
	Wednesday	30	Business
April	Wednesday	6	Budget Work Session	If desired; 4:00 – 6:00 p.m.
	Monday	11	Business	Recommendation by the Human Services Advisory Board on the total amount to be allocated for human services performance agreements in 2005-2006
	Monday	18	Hearing
		23-24		Passover (sundown on Saturday the 23^rd through Sunday the 24^th)
	Monday	25	Business	Submittal of: · recommended budget and capital program · proposed plans for using grants: 1. Comprehensive grant, 2. HOME program, and Community Development grant
	Wednesday	27	Budget Work Session	If desired; 5:30 – 7:30 p.m.
	Thursday	28	Assembly of Governments	Tentative; Southern Human Services Center, 7:30 p.m.
May	Monday	9	Business
	Wednesday	11	Budget Public Hearing	Budget, capital program, Downtown Service District, transportation grant
		15		UNC Commencement (Sunday)
	Monday	16	Hearing
May	Wednesday	18	Budget Work Session	4:00-6:00 p.m.
	Monday	23	Business
	Monday	30		Memorial Day holiday
June	Monday	13	Hearing
	Monday	20	Business	Consideration of 2005-06 Budget; CIP; related items
June	Monday	27	Business	Consideration of performance agreements: · visitor information and cultural events funded with hotel-motel taxes, · human services (including recommendations by Human Services Advisory Board) and · Downtown Service District; year-end budget amendment
July	Monday	4		Independence Day holiday
August
September	Monday	5		Labor Day holiday
	Monday	12	Business
	Monday	19	Hearing
	Monday	26	Business
	Thursday	29	Assembly of Governments	Tentative; Southern Human Services Center, 7:30 p.m.
October		3-4		Rosh Hashanah (sundown on Monday the 3^rd through sundown on October the 4^th)
	Monday	10		Columbus Day ( not a Town holiday)
	Monday	10	Business
		12		University Day (Wednesday)
		12-13		Yom Kippur (sundown on Wednesday the 12^th through sundown on Thursday the 13^th)
		16-18		NCLM Conference (Sunday the 16^th through Tuesday the 18^th)
	Wednesday	19	Hearing
October		19-23		UNC Fall Break (5:00 Wednesday the 19^th through Sunday the 23^rd)
	Thursday	20	Joint Public Hearing	Tentative; Southern Human Services Center, 7:30 p.m.
	Monday	24	Business
November	Monday	7	Business
	Tuesday	8		Election Day
	Friday	11		Veteran’s Day (not a Town holiday)
	Monday	14	Hearing
	Monday	21	Business
	Thursday-Friday	24-25		Thanksgiving holiday
December	Monday	5	Organizational Meeting
		6-10		NLC Congress of Cities (Tuesday the 6^th through Saturday the 10^th)
		16		Hanukkah (sundown on Friday the 16^th through
		18		UNC December Commencement (Sunday)
	Thursday, Friday, and Monday	22, 23, 26		Christmas holidays

This the 7^th day of September, 2004.

Item 12 - Resolution in Support of Self-Financing Bonds –

Amendment One on the November 2, 2004 Ballot

Mayor Foy explained the self-financing bond concept as follows: When a property increases in value as a result of development the resulting tax revenue is used to pay the bonds. He offered two reasons why he thought the Council could endorse the Amendment: Parking Lots 2 and 5 could benefit from self-financing bonds, which fits in with the self-liquidating concept that the Council had in mind; and, it is possible that these bonds could be used to reinvigorate other parts of the State that are more economically disadvantaged. Mayor Foy added that this would fit in with the Town's appreciation for Home Rule and would allow Chapel Hill and other municipalities to make their own decisions about economic matters.

Council Member Kleinschmidt expressed concerns about Amendment One, noting that North Carolina was one of only two states that did not have it. He said that other states' eagerness to provide tax-based incentives had lead to revolving door movement of corporations from state to state and eventually outside the country. Council Member Kleinschmidt stated that some small communities had been destroyed by such policies because they had become dependent on a single employer.

Council Member Kleinschmidt argued that self-financing bonds create "a municipal analog" to the tax subsidies that the State provides to corporations and puts the financial viability of communities at risk. He said that the Amendment might be appropriate for Chapel Hill because of its process of community discussion. But in other communities, where there had been no such discussions, developments have failed, the property tax revenue was never available to pay off the bonds, and the towns have "gone belly up" or tried to make up the shortfall by increasing property taxes, he said. Council Member Kleinschmidt concluded that he could not support the Amendment because it states that self-financing bonds would not increase taxes. Amendment One could lead to an increase in taxes, he said, adding that they probably would do so in towns that do not use it in the way that Chapel Hill plans. So, it is potentially dangerous for the State and the economies of the State in general, argued Council Member Kleinschmidt.

Mayor Foy agreed that the points Council Member Kleinschmidt had made were valid, adding that this would be an amendment to the State Constitution and was a serious matter. He pointed out, however, that one of the strong components of North Carolina's system is its Local Government Commission. Mayor Foy reminded Council members that a North Carolina town could not get approval of such bonds without proving to the Commission that the project cannot proceed without them, and he noted that they could only be used for infrastructure. Mayor Foy emphasized that there were economic safeguards in place, noting that bonds had not failed in North Carolina since the Local Government Commission had come into existence. Amendment One was not "a great passion of mine," he said, but it seemed like something that could be of use.

Council Member Greene expressed support for the Amendment, pointing out that it would have been appropriate for several mill projects that had failed in North Carolina. Revitalizing old mills is a growth industry for Preservation North Carolina, she said, adding that those ventures are likely to succeed given the way they were set up.

Mayor pro tem Wiggins stated that when passing the Amendment the Town Council would be taking responsibility for educating Chapel Hill residents before they vote. She wondered if the Town could help educate citizens throughout the State. But Mayor pro tem Wiggins and Mayor Foy then agreed that there were limits to what other towns wanted to hear from Chapel Hill.

MAYOR PRO TEM WIGGINS MOVED, SECONDED BY COUNCIL MEMBER STROM, TO ADOPT R-18. THE MOTION WAS ADOPTED (8-1) WITH COUNCIL MEMBER KLEINSCHMIDT VOTING NAY.

A RESOLUTION SUPPORTING APPROVAL OF AMENDMENT ONE ON NOVEMBER 2, 2004 STATE-WIDE BALLOT (2004-09-07/R-18)

WHEREAS, the Chapel Hill Town Council believes that a strong economy is the best engine for reinvigorating social and educational progress in North Carolina; and

WHEREAS, self-financing bonds will have a positive impact on creating new jobs and strengthening the tax base in our communities for public services; and

WHEREAS, these bonds will give local governments flexibility to pursue multiple types of economic development projects including redevelopment of existing industrial and Brownfield sites, affordable housing, and community revitalization; and

WHEREAS, North Carolina is one of only two states in the nation that do not have this economic development tool; and

WHEREAS, these bonds can be used throughout the State; and

WHEREAS, self-financing development bonds have received wide-ranging bi-partisan support from the General Assembly as well as municipal, county and State government and Governors Holshouser, Martin and Hunt; and

WHEREAS, North Carolina will have some of the strongest safeguards in the country to ensure self-financing bonds are used for good purposes; and

WHEREAS, these self-financing bonds will not require any increases of tax rates; and

WHEREAS, these bonds are subject to voter approval of Amendment One on the November 2, 2004 ballot and deserve rightful consideration by the citizens of the State;

NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council supports approval of Amendment One and pledges to educate and inform its members and citizens of the State about its importance to jobs and progress in North Carolina.

This the 7^th day of September, 2004.

Item 13 - Appointments

a. Recommendation to the Orange County Board of Commissioners for Appointment of One Chapel Hill Representative to the Orange County Economic Development Commission.

COUNCIL MEMBER STROM MOVED, SECONDED BY COUNCIL MEMBER WARD, TO ADOPT R-19, REAPPOINTING ROBERT WARD AS THE COUNCIL'S REPRESENTATIVE. THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

A RESOLUTION RECOMMENDING A CHAPEL HILL REPRESENTATIVE TO FILL A SEAT ON THE ORANGE COUNTY ECONOMIC DEVELOPMENT COMMISSION (2004-09-07/R-19)

WHEREAS, the Orange County Board of Commissioners has requested that the Town Council fill the expired Chapel Hill seat on the Orange County Economic Development Commission; and

WHEREAS, the Council has voted to select a representative;

NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council recommends that Robert Ward be reappointed by the Orange County Board of Commissioners to serve as the Chapel Hill representative on the Orange County Economic Development Commission.

This the 7^th day of September, 2004.

Item 14 - Petitions

a. By the Mayor and Council Members.

14a(1). Petition to Study the Possible Relief from Stormwater Fees for Persons Covered by the Homestead Act (Mayor pro tem Wiggins).

Mayor pro tem Wiggins said that a citizen had contacted her and asked if the Council had discussed exempting citizens who were exempted from taxes due to the Homestead Act. This petition would ask the staff to find out what Orange County is doing with regard to recycling fees and to make a recommendation as to whether or not the Town could do anything similar, she said.

MAYOR PRO TEM WIGGINS MOVED, SECONDED BY COUNCIL MEMBER WARD, TO RECEIVE AND REFER THE PETITION TO THE MANAGER AND ATTORNEY. THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

b. By the Manager and Attorney. None.

Item 15 - Reserved for Discussion of Consent Agenda Items If Necessary

With regard to Agenda Item 4b, Nominations to Various Advisory Boards and Commissions, Mayor Foy noted that there had been additional applications because of an error in the way the Town had advertised the Special Committee to Study Renaming of Airport Road. He explained that the Manager had recommended holding the Committee open until September 13, 2004, the proposed date for making appointments. Mayor Foy suggested that the Council discuss the Committee's size, noting that 60 people had applied and that the Committee would include at least three Council members. To include all of the applicants would make the Committee difficult to manage because one meeting would last three hours if everyone on the Committee wanted to speak for three minutes, he pointed out.

Mayor Foy said that he had spoken with a facilitator who had suggested having a relatively small group of 20-25 people and finding a way to include everyone else. He pointed out that Council members had made a commitment to accomplishing something relatively quickly. Mayor Foy suggested that the Council formally agree to reopen the nominations, without the Chapel Hill residence requirement, and to nominate those who already had put in an application.

Council Member Greene requested that the submission deadline be a few days before the Council makes its decision so that Council members would have a chance to think about the applications.

Council Member Hill agreed that it would not be fair to applicants if the Council saw their applications for only a few minutes.

Mayor Foy proposed extending the application deadline until Friday, September 10, 2004, to allow the weekend for review.

Council Member Greene inquired about extending the deadline for a Council decision, but Mayor Foy recommended getting started as son as possible.

Council Member Verkerk proposed holding applications open until Friday at noon.

Council Member Strom suggested that the Council appoint everyone who had applied. He asked Mayor Foy if the facilitator was skilled in working with large groups. Mayor Foy replied that the facilitator had a specific history of working with race-related issues, which requires different skills than mere dispute resolution. Mayor Foy said that the facilitator had recommended trying to keep the committee smaller because of the time issues. He pointed out that trying to manage a committee of 60 people would be expensive since it cannot be done with only one facilitator. Furthermore, having such a large group would require more staff time and resources to keep track of what is going on, said Mayor Foy.

Council Member Harrison commented that he had once been on a 41-member commission that had been skillfully facilitated. But the commission had had difficulty proceeding to any kind of conclusions, he said, and he predicted that having any kind of community dialogue with a group of more than 20 people would be difficult.

Council Member Greene proposed finding a way to keep those who had volunteered but were not chosen involved in the Committee.

Mayor Foy agreed, explaining that he and the facilitator had discussed having a core group and keeping the others involved in a formal way. But the facilitator had not made specific recommendation, he said.

Mayor pro tem Wiggins agreed that 60 people seemed like an overwhelming number of committee members. She recalled that the Council had considered establishing a dialogue about race on an ongoing basis. This might provide a basis for that, she said, but she expressed doubt that any facilitator could discuss race issues with 60 "highly-charged" people.

Council Member Ward agreed that the Committee should be limited to about 20 members. He urged Council members to be creative about providing meaningful opportunities for the other 40 or so to participate. Council Member Ward proposed perhaps interspersing the meetings with public forums. But he noted that doing so would lead to a longer process than one that would conclude by November 11, 2004. Council Member Ward remarked that it was more important to get to the right end point than to end on the right day.

Council Member Verkerk suggested using the Committee on lots 2 and 5 as a model, since it consisted of about 20 people who had held open, public meetings with time at the end for public comments. She also recommended televising the meetings later in the day.

Council Member Kleinschmidt proposed that the Council appoint everyone and then choose 20 people to serve as an executive group. The executive group might meet with the entire group on scheduled days, he said, and everyone could vote together as a group. Council Member Kleinschmidt recommended that the Council emphasize that the discussion should remain targeted on the proposed renaming Airport Road and not become sidetracked by other issues.

But Mayor Foy replied that the facilitator had pointed out that underlying issues needed to come to the table and become explicit. The Town needs to let that happen rather than directing the conversation toward a certain point, he said.

Council Member Kleinschmidt expressed concern about allowing the decision to drag on to next year, but Mayor Foy replied that he had suggested November 11, 2004, which was a "very ambitious time schedule." Council Member Kleinschmidt argued that it might be too ambitious if the Town expects to resolve all of the issues. Mayor Foy and Mayor pro tem Wiggins replied that they did not expect to resolve anything but merely to have a discussion and get some specific recommendations regarding Airport Road.

Mayor pro tem Wiggins argued that the there would be a better chance of staying focused and achieving the goal in November if the group were limited to 20-25 members. It would be contradictory to urge people to participate and at the same time that group is so big you don't want people to say much due to time constraints, she pointed out.

Council Member Hill commented that the Committee's make-up would keep it focused on Airport Road. It would be nice to have all 60 people equally involved, but unlikely that anything would be accomplished, he said. Council Member Hill recommended limiting the size to some degree so that the discussion would not be too difficult to contain.

Mayor Foy proposed that he and Mr. Horton structure some options for Council members to vote on at their September 13, 2004 meeting. Mr. Horton and the Council agreed with that plan.

The meeting adjourned at 9:24 p.m.