SUMMARY MINUTES OF A BUSINESS MEETING

OF THE CHAPEL HILL TOWN COUNCIL

MONDAY, OCTOBER 27, 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, Edith Wiggins, and Jim Ward.

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, Finance Director Kay Johnson, Accountant Jeanne Tate, Accountant Amy Oland, Accountant Lisa Taylor, Engineering Design Specialist Mike Taylor, Police Chief Gregg Jarvies, Interim Public Works Director Bill Terry, Senior Long Range Planning Coordinator Chris Berndt, Senior Planner Phil Hervey, Principal Long Range Planner Gordon Sutherland, Planning Director Roger Waldon, and Acting Town Clerk Sandy Cook.

Item 1 - Ceremonies

a. Recognition of Orange County Partnership for Young Children.

Executive Director Michele Rivest gave an overview of the Orange County Partnership for Young Children, a local, "Smart Start" agency. She explained that the agency works collaboratively with various community partners to promote school readiness by planning and funding a variety of early childhood, child health, and family support programs. Ms. Rivest outlined various social and economic reasons for focusing on early childhood and noted that the Partnership had served more than 30,000 children over a 10-year period. She highlighted accomplishments, including dental care, parenting programs, housing, and bilingual services. Ms. Rivest told Council members that 80% of those children who have received scholarships have been from the Chapel Hill-Carrboro area. She pointed out that investing in early childhood education benefits the entire community in the long run. Ms. Rivest thanked the Council and community agencies for their support. She said that such support really had made a difference.

b. Receipt of the Excellence in Financial Reporting Award.

Mayor Foy pointed out that one of the greatest responsibilities of any town council is to wisely spend taxpayers' dollars. He expressed appreciation for the work that the Chapel Hill staff had done to ensure that the Town's budget was an exemplary one. Mayor Foy presented a "Certificate of Excellence in Financial Reporting" to Finance Director Kay Johnson. He explained that the Government Finance Officers Association had given the Town this award for its 2002-2003 annual financial report. It was the highest form of recognition in governmental financial reporting, said Mayor Foy, noting that Chapel Hill had received the award for 19 straight years.

Ms. Johnson introduced her staff accountants, Jeanne Tate, Amy Oland, and Lisa Taylor. She also gave credit to Assistant Finance Director Jeanne Erwin, who could not be present. Ms. Johnson thanked her staff members for making the award possible. Mayor Foy expressed gratitude to Ms. Johnson and her staff. He commented that the upcoming year would be a particularly challenging one.

Item 2 - Public Hearing and Public Forums

Item 2.1 - Public Hearing: Closure of a Section of Laurel Hill Road Right-of-Way

Mayor Foy pointed out that Council Member Ward had recused himself from the Laurel Hill Road discussion because he was employed by the North Carolina Botanical Garden, which had requested the closure. Mayor Foy explained that there had been a public hearing on this matter and asked if Council members had any comments or questions.

Council Member Harrison clarified that taking Council action would mean closing the road to vehicular traffic.

Council Member Greene asked about the possibility of the Town making other arrangements with the Garden, such as trading land. Mayor Foy replied that the Council members may discuss anything they want with the Garden and then make a decision based on the evidence they hear. Mayor Foy invited Botanical Garden Director Robert White to respond to Council comments.

Council Member Greene asked Dr. White about the possibility of the Botanical Garden donating land from the Finley Golf Course in exchange for closing Laurel Hill Road. The golf course land would help the Town create a trail from the Garden to the shopping center and school, she said. Dr. White pointed out that there already was an existing trail in that area. That trail was being used and was on the Town's bike and pedestrian plan, he said. Dr. White stated that the Botanical Garden was in favor of maintaining that trail as an access regardless of their request regarding Laurel Hill Road. The Botanical Garden had initiated discussions within the University regarding that, he said, and the Garden wholeheartedly supports the idea as well as several other connectivity proposals. The Garden had not yet concluded those conversations with UNC, Dr. White said.

With regard to Laurel Hill Road, Dr. White pointed out that a right-of-way had not occurred on that University-owned land until 1978 when it was granted to the State. It was only during annexation of that neighborhood in 1987 that it had become a Town right-of-way, he said. Dr. White remarked that the Botanical Garden did not view their request for closure as one to remove something that had belonged to the Town for a long time.

Mayor Foy asked for corroboration that bicycles and pedestrians would not move through the Garden on the same right-of-way. Dr. White explained that the Garden had proposed a pedestrian access between the Coker Drive intersection and Old Mason Farm Road. If the Council passes that as a stipulation then the Garden would come back with a plan for where that route would be, he said. Dr. White stated that the simplest and most straight-forward route would be within the road corridor of Laurel Hill Road. Mayor Foy verified that the utility right-of-way would be maintained as in the Manager's recommendation.

Mayor pro tem Wiggins asked the Manager to bring back a recommendation on whether the Town should address the disconnection between the two sections of Laurel Hill Road if the Council approves this closure.

Council Member Harrison pointed out that several citizens had mentioned gating the road. He also asked if it was true that fully closing the road would allow an extension of the noise wall. Dr. White replied that the Garden wanted to unify the site and create a sanctuary for an outdoor classroom and they also wanted to complete the sound wall. These two objectives would not be served by gating the road, he said.

COUNCIL MEMBER STROM MOVED, SECONDED BY COUNCIL MEMBER VERKERK, TO RECESS THE PUBLIC HEARING. THE MOTION WAS ADOPTED UNANIMOUSLY (8-0).

Mr. Horton stated that this item would come back to the Council on November 22, 2004.

Item 2.2 - Public Forum on Items Related to Development

of Lots 2 and 5 and Related Sites

Senior Long Range Planning Coordinator Chris Berndt reviewed the process thus far and listed the key steps in the Stainback Public-Private Real Estate (SPPRE) contract. The Town had reached the financial analysis phase, she said. Ms. Berndt reviewed the public process since 2003, explaining that in September the Council referred the plan to the Chapel Hill Downtown Economic Development Corporation, Downtown Commission, University of North Carolina (UNC), and the Chapel Hill-Carrboro Chamber of Commerce for comment, as well as the public at large. The next step would be to hold public information meetings on November 4 and 5, she said. On November 8, 2004, the Council would consider authorizing the developer solicitation phase, said Ms. Berndt.

Consultant John Stainback discussed issues related to underground parking, soil borings, temporary parking opportunities, and the Wallace Deck structural analysis. He recapped his financial analysis findings and pointed out that the Town had reached Step 12 of a 17-step process. Mr. Stainback reviewed the primary objectives for Lots 2 and 5 and discussed the role of the third-party consultants that SPPRE had brought in at critical steps. He compared the traditional approach that many cities and towns had taken to the SPPRE pre-development process.

Mr. Stainback recommended that the Council Committee, Town Council, and Town staff proceed with the developer solicitation and selection process for the phase one development of Lot 5 and the Wallace Deck. The next steps would be to finalize development guidelines, develop a funding plan for public art, and obtain a structural engineering report on the Wallace Deck, he said.

Mary Jo Stone, Chair of the Downtown Commission, expressed enthusiasm over the prospect of significant new development downtown, particularly the residential units and the infusion of new retail. However, the Commission did have important concerns about the support of existing businesses during construction, the importance of Rosemary Street, and the need for additional office space, she said. Ms. Stone suggested adding angled parking to West Franklin Street during construction. She also asked the Council to fully investigate offering free, short-term parking and parking at night.

Ms. Stone requested that Rosemary Street be moved from its "backdoor status." It should be a full-fledged part of the downtown area and as vibrant and pedestrian-friendly as Franklin Street, she said. Ms. Stone stated that the Commission was puzzled by the lack of office space, and she noted that adequate parking was something the Council had always emphasized. She told Council members that the Downtown Commission looked forward to working in partnership with the Town and with developers as they become members of the downtown family.

Carrboro resident James Carnahan submitted a copy of a newspaper article to be entered into the record. He expressed concern about an "inherent contradiction" between the social/ cultural/public use and the residential use of the planned plaza space at Parking Lot 5. Mr. Carnahan commented that the Council's goal of creating a public space to be used for community building might conflict with residents' preferences. He recommended that the Council look at the ratio between commercial and residential space at Lot 5 and consider having more commercial and less residential use.

Chapel Hill resident Scott Radway noted that he had served three terms on the Planning Board, was currently on the Community Design Commission, and had been a member of the Downtown Small Area Plan Committee. He strongly supported the Council's vision, he said, and praised the "exemplary open process" that they had conducted thus far. Mr. Radway stated that he and others who had served on the Small Area Plan Committee and other boards supported the Town's program. He praised the attempt to create some of the vision that had been discussed a decade ago. The Town was doing this in a proper, financially feasible, and stewardship way, said Mr. Radway, and he thanked the Council for conducting the process so openly.

Virginia Knapp, Associate Director of the Chapel Hill-Carrboro Chamber of Commerce, extended the Chamber's sincere appreciation for the Council's work. She thanked them for soliciting Chamber input and said that members were broadly supportive of the proposal. Ms. Knapp said that the Chamber did have questions regarding some issues, however. These relate to inclusion of office space, timing of construction, and minimizing damage to existing businesses during construction, she said. But, in general, the Chamber encouraged the Council to continue moving forward, said Ms. Knapp. She stated that the Chamber looked forward to working with the Town to make sure that the process remains open and that the Council receives "as many comments and questions as you can take."

Betty Maultsby noted that the cost of rental space in the new development would be significantly higher than the current cost in Town. That will require attracting new customers with higher disposable income than the majority of the current base, she said. Ms. Maultsby quoted demographic information from an ERA Market Report, which indicated that people under the age of 34 occupy 70% of the rental units in Chapel Hill. Forty-three percent of households in Chapel Hill earn below 80% of the median income, she said, adding that this does not include students living on campus. Ms. Maultsby pointed out that both of these were higher percentages than in Orange County at large. Therefore, she said, it really is vital that the Town attract new people into the downtown area. Ms. Maultsby stated that the non-competitive parking fees and the appearance of the downtown area might put that at risk. She suggested working with private parking lots and perhaps offering incentives to obtain parking during construction periods. Ms. Maultsby also recommended that the Town provide cleaning staff downtown during construction.

Mayor Foy reminded everyone that the Council would be considering whether or not to move forward and solicit qualifications from interested developers. Prior to that, there would be public information sessions at the Chapel Hill Library on November 4^th at 6:30 p.m. and on November 5^th at 12:00 p.m., he said.

Council Member Strom pointed out that these meetings were open to the public and that downtown neighborhoods, the business community, and UNC had specifically been invited.

Mayor Foy explained that Council members already had exhausted many of their questions at earlier meetings.

Mayor pro tem Wiggins stated that she was not on the Council Committee that had been working on this but that she had attended the last four meetings. She wondered if she had missed a discussion of how to protect existing businesses during construction, she said.

Council Member Strom replied that it was in everyone's interest not to harm the neighborhoods or the downtown businesses. He said that one of the key reasons for holding meetings on November 4^th and 5^th was to receive information about possible design and/or planning issues that seem to be heading in a direction that that could be harmful. Council Member Strom stated that the Committee was trying to enhance the downtown and was striving to have a very public process.

Mayor pro tem Wiggins replied that she understood that but was wondering whether or not there had ever been any discussion about the impact of the extensive construction period on neighborhoods and the downtown. Would that be something the Town would want potential developers to address, she asked.

Council Member Strom replied that the project would proceed through the SUP process and that there would be many opportunities to add stipulations addressing concerns that arise. The Council clearly understands that there will be circumstances involved with construction that will have to be mitigated, he said. But until they know what the construction and phasing will be and the scope of the construction, he stated, they cannot make specific requirements.

Council Member Strom noted that the Town could include language in the Request for Proposals that would explain the review process. He stressed that this project would receive the same scrutiny that every project normally goes through. Citizens and Council members would have the opportunity to raise concerns about the potential for disruption and to make specific mitigation recommendations, Council Member Strom said.

Mayor pro tem Wiggins replied that the answer, then, is that the regular review process should address all of the concerns about the impact of construction on existing businesses. She was merely attempting to respond to concerns expressed tonight, she said.

Mr. Horton pointed out that similar concerns had been expressed when the Town constructed the Wallace Parking Deck. The Town would be challenged to find as much replacement parking as possible, he said, adding that they might even have to provide shuttles from parking lots. Mr. Horton pointed out that the Town would be concerned about interruption of utilities, garbage collection, dust, and construction debris. They would ensure that these do not become a nuisance in the community, he said.

Mr. Horton stressed that the Town has a special obligation to address such issues and said that addressing it now would ensure that it gets early attention. Concerns could be included in the Request for Proposals, he said, noting that some would be addressed by SUP requirements. Mr. Horton explained that the Council ordinarily requires construction traffic management plans and off-site parking for construction workers. There would likely be a long list of items that the Town would need to address, he said, adding that he was pleased the process was generating such items early on. Mr. Horton proposed that the Council hold meetings with those who would be most directly affected, just as it did when building the Wallace Deck.

Council Member Verkerk pointed out that there was a major bus stop in front of Parking Lot 2. She suggested adding that to the list of items to be considered.

Council Member Harrison addressed Ms. Stone's suggestion to add angled parking on West Franklin Street. He noted that Franklin Street was a State road and asked for feedback on the feasibility of making such a change. Council Member Harrison also inquired about allowing free, short-term parking and free night parking.

Council Member Harrison thanked Mr. Carnahan for his comments, particularly the recommendation that the design guidelines enable residential space to be easily converted. He agreed that the orientation and ambiance points in the design guidelines, such as the use of plants and awnings for different seasons, were worth noting. Even though the Town had not yet had a design guideline discussion, these were things worth thinking about, Council Member Harrison said.

Mayor Foy recommended that the Town make its concerns about construction clear from the start because it might add to developers' costs. Mr. Horton agreed, adding that it could even be made a factor of favorable consideration if it were dealt with well in the proposal and a matter of unfavorable consideration if it were not.

With respect to Ms. Stone's remarks about Rosemary Street, Mayor Foy pointed out that the Town had not yet reached that stage of development. He agreed that Rosemary and Franklin Streets needed to be treated equally, however.

Council Member Greene, a member of the Council Committee on Lots 2 and 5, explained that the Committee was strongly committed to creating a two-street downtown. It might look on the map as though Rosemary Street is the back alley, she said, but it really is not. Council Member Greene provided details about the Committee's plans for shops and commercial spaces along Rosemary Street.

Mayor Foy pointed out that most of tonight's discussion had addressed future issues that the Town had not yet reached. He verified that this item would come back to the Council on November 8, 2004. At that time, the Council would consider whether or not to proceed to the solicitation phase, said Mayor Foy.

COUNCIL MEMBER STROM MOVED, SECONDED BY COUNCIL MEMBER VERKERK, TO ADOPT R-1. THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

A RESOLUTION SCHEDULING CONSIDERATION OF WHETHER TO PROCEED TO THE DEVELOPER SOLICITATION PHASE FOR THE LOTS 2 AND 5 DEVELOPMENT PROJECT (2004-10-27/R-1)

WHEREAS, on June 14, 2004, the Council adopted a resolution outlining recommended development options to use as a conceptual guide by consultant John Stainback and the Council in determining the financial feasibility of the building program for Town Parking Lots 2 and 5 and the Wallace Parking Deck; and

WHEREAS, on June 14, 2004, the Council authorized proceeding with the financial feasibility analysis phase; and

WHEREAS, on August 25, 2004, the Council Committee on Lots 2 and 5 received the consultant’s initial report on financial feasibility and discussed potential scenarios for developing the sites; and

WHEREAS, on September 13, 2004, the Council Committee and Council reviewed Mr. Stainback’s revised draft financial feasibility report; and

WHEREAS, on September 13, September 27, and October 27, 2004, the Council held public forums on the Financial Feasibility Report and other project-related information; and

WHEREAS, the Council has forwarded the Financial Feasibility Report to the Chapel Hill Downtown Economic Development Corporation, the Downtown Commission and the University for comment and is soliciting additional public comment and review;

NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council refers comments received to the Town Manager and Town Attorney and schedules consideration of whether to proceed to the developer solicitation phase for November 8, 2004.

This the 27^th day of October, 2004.

Item 3 – Petitions and Announcements

3a(1). Regarding written petition from Kapkov Ventures.

Council Member Strom reminded the staff to discuss the condition of community-priced housing at Franklin Square with Robert Dowling of Orange Community Housing. There had been an issue regarding the foundation, he said, and he wanted to know the status of that when this comes back to the Council.

COUNCIL MEMBER STROM MOVED, SECONDED BY COUNCIL MEMBER VERKERK, TO RECEIVE AND REFER THE PETITION AND TO OBTAIN INFORMATION REGARDING THE CONDITION OF FRANKLIN SQUARE COMMUNITY-PRICED HOUSING FROM ORANGE COMMUNITY HOUSING. THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

3b. Petitions by Citizens on Items on the Agenda. None

3c. Announcements by Council Members.

Council Member Strom wished his son, Erin, a happy thirteenth birthday.

Council Member Kleinschmidt urged citizens to vote in the national elections if they had not yet done so.

Item 4 - Consent Agenda

COUNCIL MEMBER VERKERK MOVED, SECONDED BY MAYOR PRO TEM WIGGINS, TO ADOPT R-2. THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

A RESOLUTION ADOPTING VARIOUS RESOLUTIONS AND ORDINANCES (2004-10-27/R-2)

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 September 7, 13, and 20, 2004.
b.	Nominations to Various Advisory Boards and Commissions (R- 3).
c.	Budget Ordinance for 2004-05 Capital Housing Program (O-1).
d.	Budget Amendment use of Contingency Funds for Car Free Day and Facilitator for the Special Committee to Consider Renaming Airport Road (O-2).
e.	Response to Petition regarding “Jake” Brakes (O-3).
f.	Scheduling a Public Forum to Consider a Potential Change in Cablevision Public Access Fees Paid by Cable Television Customers (R-4).
g.	Response to Petition regarding a Request for Grant for Sewer Hook-up (R-5).
h.	Budget Amendment for Traffic Signal at the Intersection of Airport Road and Northfield Drive (O-4).
i.	Acceptance of Orange-Chatham Justice Partnership Grants (R-6) (O-5).
j.	Deferring Consideration of an Amendment to the Land Use Plan for Designating a Potential School Site at Legion Road (R-7).

This the 27^th day of October, 2004.

A RESOLUTION NOMINATING APPLICANTS TO VARIOUS ADVISORY BOARDS AND COMMISSIONS (2004-10-27/R-3)

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:

Historic District Commission

Ralph L. Bass

Charles Collier, III

Keith Freeman

Mark McGrath

This the 27^th day of October, 2004.

AN ORDINANCE TO ESTABLISH A CAPITAL FUND PROGRAM (CFP) PROJECT ORDINANCE (2004-10-27/O-1)

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

Section I

The project authorized is the Capital Fund Project as approved by the Council on April 26, 2004. Funds are as contained in an Amendment to the Consolidated Annual Contributions Contract between the Town and the U. S. Department of Housing and Urban Development (HUD) dated September 21, 2004.

Section II

The Town Manager of the Town of Chapel Hill is hereby directed to proceed with the project within the terms of the Contract document(s), the rules and regulations of the U. S. Department of Housing and Urban Development, and budget contained herein.

Section III

The following revenue is available to complete the project:

Capital Fund Program $530,628

Section IV

The amounts appropriated for the project are as follows:

Operations $ 3,000

Administration $ 50,000

Site Improvements $109,392

Dwelling Structures $193,736

Dwelling Equipment $ 28,700

Professional Fees and Costs $145,800

Total $530,628

Section V

The Finance Director of the Town of Chapel Hill is hereby directed to maintain within the Project Fund sufficient specific detailed accounting records to provide the accounting to the U.S. Department of Housing and Urban Development as required by the Annual Contributions Contract and federal regulations.

Section VI

Funds may be advanced from General funds for the purpose of making payments as due. Reimbursement requests should be made to HUD in an orderly and timely manner.

Section VII

The Manager is directed to report annually on the financial status of each project in Section IV and on the total revenues received.

This the 27^th day of October, 2004.

AN ORDINANCE TO AMEND “THE ORDINANCE CONCERNING APPROPRIATIONS AND THE RAISING OF REVENUE FOR THE FISCAL YEAR BEGINNING JULY 1, 2004” (2004-10-27/O-2)

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, 2004, and the same is hereby amended as follows:

ARTICLE I

	Current			Revised
APPROPRIATIONS	Budget	Increase	Decrease	Budget

GENERAL FUND
Non-Departmental
Contingency	47,366		(15,500)	31,866
Contributions to Others	102,100	500		102,600
Council	263,285	15,000		278,285

This the 27^th day of October, 2004.

AN ORDINANCE AMENDING CHAPTER 11, ARTICLE III OF THE TOWN CODE OF ORDINANCES TO PROHIBIT THE USE OF COMPRESSION BRAKING SYSTEMS IN NON-EMERGENCY SITUATIONS (2004-10-27/O-3)

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

Section I. Section 11-39.1(a)(7) of the Town Code is hereby revised to read as follows:

“(a) It shall be unlawful to create, cause or allow the continuance of any unreasonably loud noise, particularly during nighttime, which interferes seriously with neighboring residents' reasonable use of their properties. Steady state noises that do not exceed the allowable sound levels as defined in Section 11-39(a)(1) and (2) are not nuisance noises. Nuisance noises may include, but are not limited to, the following:

(7) Vehicles not operating with original manufacturer-provided muffler, or equivalent, in good working order., and vehicles using compression release engine or transmission braking systems in non-emergency circumstances.”

Section 2. Section 11-40(h) of the Town Code is revised to read as follows:

“(h) All noises coming from normal operation of motor vehicles properly equipped with the manufacturer's standard mufflers and noise-reducing equipment., including noises coming from compression release engine or transmission braking systems when used in emergency circumstances.”

Section 3. This ordinance shall become effective October 27, 2004.

This the 27^th day of October, 2004.

A RESOLUTION REGARDING THE SUPPLEMENTAL PUBLIC ACCESS RATE FOR CABLE TELEVISION IN CHAPEL HILL (2004-10-27/R-4)

BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council calls a public forum on November 8, 2004, to receive comments on whether the supplemental public access rate should be: adjusted for inflation to 74 cents per month; continued at the present rate of 72 cents per month; reduced; or eliminated.

A RESOLUTION AMENDING THE TOWN’S SEWER ASSISTANCE POLICY (2004-10-27/R-5)

WHEREAS, the Town Council adopted Resolution (98-9-9/R-7) on September 9, 1998, providing a 20% subsidy to sewer projects for existing neighborhoods with private systems by providing a line item in the Capital Improvements Program budget with a cap of $4,500 per lot based on the total number of lots in the project being subsidized; and

WHEREAS, on September 13, 2004, the Town Council received a petition from an individual homeowner for assistance in connecting to an existing public sewer line; and

WHEREAS, the Council desires to assist property owners within the Town of Chapel Hill with the cost of connecting to the public sewer system where the Health Department has determined the septic systems are failing, thereby removing public health and safety hazards and improving water quality;

NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Town provide a 20% subsidy to sewer projects for property owners within the Town of Chapel Hill whose septic systems have been determined by the Health Department to be failing, such assistance to be provided from Town funds reserved for water and sewer assistance with a cap of $4,500 per lot.

BE IT FURTHER RESOLVED that the Council authorizes the Town Manager to provide assistance to property owners within the Town of Chapel Hill pursuant to this Resolution and Resolution (98-9-9/R-7).

This the 27^th day of October, 2004.

AN ORDINANCE TO AMEND “THE ORDINANCE CONCERNING APPROPRIATIONS AND THE RAISING OF REVENUE FOR THE FISCAL YEAR BEGINNING JULY 1, 2004” (2004-10-27/O-4)

ARTICLE I

	Current			Revised
APPROPRIATIONS	Budget	Increase	Decrease	Budget

GENERAL FUND
Engineering	1,005,912	50,000		1,055,912


ARTICLE II

	Current			Revised
REVENUES	Budget	Increase	Decrease	Budget

GENERAL FUND
(appropriated fund balance)	2,423,667	50,000		2,473,667

This the 27^th day of October, 2004.

A RESOLUTION AUTHORIZING THE ACCEPTANCE OF THE ORANGE-CHATHAM JUSTICE PARTNERSHIP GRANTS (2004-10-27/R-6)

WHEREAS, Orange-Chatham Justice partnership has made funds available to enhance the quality of law enforcement services provided to local communities; and

WHEREAS, the Town’s applications in the amount of $113,779 were approved by the Orange-Chatham Justice Partnership to continue and enhance existing programs; and

WHEREAS, these grants would be used to continue the provision of comprehensive case management services for juveniles and repeat offenders between the ages of 18 and 25;

NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council authorizes the Manager to accept the aforementioned grants and to make all necessary assurances.

This the 27^th day of October, 2004.

AN ORDINANCE TO AMEND “THE ORDINANCE CONCERNING APPROPRIATIONS AND THE RAISING OF REVENUE FOR THE FISCAL YEAR BEGINNING JULY 1, 2004” (2004-10-27/O-5)

ARTICLE I

Current Revised

APPROPRIATIONS Budget Increase Decrease Budget

GRANTS FUND 251,484 113,779 365,263

ARTICLE II

Current Revised

REVENUES Budget Increase Decrease Budget

GRANTS FUND 251,484 113,779 365,263

This the 27^th day of October, 2004.

A RESOLUTION DEFERRING CONSIDERATION OF AN AMENDMENT TO THE 2000 LAND USE PLAN CONCERNING SCHOOL SITES (2004-10-27/R-7)

WHEREAS, on September 7, 2004, the Town Council amended the 2000 Land Use Plan to add and delete sites from the Plan requested by the Chapel Hill-Carrboro Board of Education as set out in its letter of January 8, 2004, with the exception of potential site 1 (Legion Road); and

WHEREAS, the Town Council deferred action on the Legion Road site until October 27, 2004, in order to allow the School System additional time to have further discussions with the owners; and

WHEREAS, the Chapel Hill-Carrboro School System requires additional time to conclude discussions with the owners;

NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council hereby defers consideration of amending the Town’s 2000 Land Use Plan to designate a potential school site at Legion Road on the Plan.

This the 27^th day of October, 2004.

Item 5 - Information Items

With regard to 5d, Response to Petition Regarding Teenage Drinking, Council Member Ward commented that there had been three public forums to date and that youth who'd had experiences with drug and/or alcohol abuse had shared some important information. Leaders from the School System, members of the Chapel Hill and Carrboro Police Departments, and members of the Orange County Judicial System had attended, he said. Council Member Ward stated that he had become better aware of the problem and thought that the Town had a role to play in addressing it. He asked that item 5d come back as an agenda item with the goal of addressing concerns associated with teen alcohol and drug abuse.

COUNCIL MEMBER WARD MOVED, SECONDED BY MAYOR PRO TEM WIGGINS, TO PUT INFORMATION ITEM 5D ON A FUTURE AGENDA. THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

Mayor Foy explained that he had meant to ask the Council to modify 4j, Deferring Consideration of an Amendment to the Land Use Plan for Designating a Potential School Site at Legion Road. He suggested that they defer consideration to an indefinite period to give the Town, School Board, and American Legion time to resolve the issues.

COUNCIL MEMBER VERKERK MOVED, SECONDED BY MAYOR PRO TEM WIGGINS, TO MODIFY R-7 SUCH THAT IT NOT SPECIFY A PARTICULAR DATE TO COME BACK TO COUNCIL. THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

With regard to the Council's earlier action on teenage drinking, Mayor pro tem Wiggins reported that the Chapel Hill Police Department had developed a plan to address the problem. She endorsed that plan and said that she looked forward to hearing more about it when the issue comes back as an agenda item. Mayor pro tem Wiggins assumed that the community would want the Council to use its enforcement and regulatory tools to help mitigate these problems, she said. She pointed out that college level drinking had become "completely out of hand" and that teen drinking is where it begins.

With regard to Information Item 5e, Response to Petition from Transportation Board Requesting that Staff Evaluate the Feasibility of Making the Intersection of Meadowmont Parkway and Cedar Club Circle a Four-Way Stop, Council Member Harrison agreed with the staff position. It does not make sense to put stop signs on Meadowmont Lane as well as Cedar Club Circle, he said. He expressed support for the plan to monitor that intersection as it gets busier and predicted that it would become more dangerous as time goes on.

Item 6 - Report from the Council on a Sustainable Community

Charlie Fischer summarized the report, which included eight mutually supporting visions for the community and 133 potential action steps. He said that there had been much progress since April toward achieving these visions. Mr. Fischer noted that the Chapel Hill-Carrboro Chamber of Commerce had also taken steps toward creating a sustainable community. He asked Council members to formally adopt a process for reviewing the visions and action steps in the report and to commit to adopting the visions that fall under the Town's jurisdiction. Mr. Fischer also asked the Council to appoint someone to participate in a leadership group that the Council on Sustainable Community would create. This group would prioritize action steps, monitor the community's progress toward achieving the visions, identify barriers, and report to the community on progress, he said.

Council Member Ward pointed out that he represented the Botanical Garden on the Council on a Sustainable Community. He noted that the Chamber of Commerce leadership had been working very hard to make sustainability an important part of individual businesses in the community. Council Member Ward expressed hope that the Town would do whatever it could to enhance these efforts.

Mayor Foy verified that the next step would be to form a leadership council made up of people from throughout the community. This would include government, university, and business representatives who would oversee implementation of actions, he said. Mr. Fischer asked the Town Council to initiate a formal process for review of recommendations, specifically those that require action that falls within the jurisdiction of the Town Chapel Hill.

Mayor Foy recommended that the Council refer this item to Council Member Kleinschmidt, the Town Council's representative on the Council on Sustainable Community.

COUNCIL MEMBER STROM MOVED, SECONDED BY COUNCIL MEMBER VERKERK, TO REFER THE REPORT TO COUNCIL MEMBER KLEINSCHMIDT. THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

Item 7 - Consideration of Revised Draft of the Council Procedures Manual

Council Member Hill asked to clarify the procedure for voting for Town boards and commissions (Item 15 on page 46). He said that the current system was unclear with regard to the appropriate way to vote and the point at which votes are final.

Council Member Hill pointed out that Council members had sometimes been persuaded to change their votes. He asked if that was acceptable under the rules.

Town Attorney Ralph Karpinos agreed that the Council Procedures Manual could be more specific about how the process works. Votes were not official until they had been counted by the Town Clerk and presented to the Mayor and the Mayor has announced them, he said. Mr. Karpinos explained that the Council could clarify that procedure by agreement, by adopting a resolution, or by an amendment to the Council Procedures Manual.

Council Member Hill expressed concern that voting had been conducted as a running tally. He suggested that it be simplified or that the Council clarify what is allowed.

Council Member Strom agreed that it did not seem correct to take a poll and then change votes. He proposed that the Council institute a second ballot procedure rather than allowing Council members to view the tally and alter their votes.

Council Member Verkerk also agreed, but expressed concern about being unable to rectify a mistake that one might make on a complicated ballot. Mr. Karpinos suggested that Council members might look at their own ballots but not at those of other Council members. Taking ballots at the start of meetings had speeded things up, he said. He acknowledged, though, that this issue had not been present when ballots were taken, counted and announced at the meeting's end.

Mayor pro tem Wiggins agreed that Council Member Hill was headed in the right direction. She suggested that the Town Clerk tabulate ballots and give them to the Mayor folded so that no one could see them. That would prevent Council members from changing their votes except in situations where something occurs to them during the meeting, she said.

Council Member Ward stated that he had appreciated being able to return to his ballot during times when the Town Clerk had pointed out that he had left areas blank. Council Member Greene replied that nothing in tonight's suggestions would prohibit that.

Council Member Kleinschmidt said that the point was not to have one's vote broadcast before the final tally.

Mayor Foy stated that the consensus was that Council members could change their ballot at any time before the announcement is made. But votes would not be open to view until they are announced, he said. Mayor Foy verified with Mr. Karpinos that the Council could adopt R-8, with the language that he had just stated incorporated into it.

Council Member Kleinschmidt suggested several edits to the manual. With regard to Number 8 on Page 5 (Distribution to the Public), he suggested that website distribution be included along with hard copy distribution. Council Member Kleinschmidt also proposed that the Council delete "unusual urgency" or add "sufficiently non-controversial" after "It shall take a unanimous vote of the Council members present declaring a petition to be of…" in Item C on Page 7.

COUNCIL MEMBERS AGREED BY CONSENSUS TO DELETE "UNUSUAL URGENCY FROM ITEM C ON PAGE 7."

On Page 11, Council Member Kleinschmidt suggested that the "motion moving the previous question" require a two-thirds or three-fourths majority rather than a simple majority.

Council Member Greene asked for clarification of what "moving the previous question" means as opposed to "calling the question."

Council Member Verkerk requested that Council Member Kleinschmidt write his suggestions out so that the Council could have time to mull them over.

Mayor pro tem Wiggins agreed, adding that she wanted time to determine whether the Council was having problems with the procedures as they are. She could recall only one time during the years that she had been on the Council when they had voted to stop a discussion, said Mayor pro tem Wiggins. Council Member Kleinschmidt replied that there should be a clear rule for those tense moments when that does happen.

Mayor Foy agreed that Council Member Kleinschmidt should write out his suggestions.

Council Member Greene determined that her question regarding "moving the previous questions" versus "calling the question" would be answered when the Council discusses this again. Mayor Foy pointed out that even though the Council was deferring consideration of the manual the decisions that they already had made would be included.

COUNCIL MEMBERS AGREED BY CONSENSUS TO DEFER DISCUSSION TO THE NEXT BUSINESS MEETING AT WHICH TIME THEY WILL HEAR COUNCIL MEMBER KLEINSCHMIDT'S COMMENTS.

Item 8 - 2004-2005 Communication Plan

Council Member Kleinschmidt reported that the Council Communications Committee had met several times with the Town's new information officer, Catherine Lazorko. Ms. Lazorko's first major task was to develop a Town Communications Plan, he said, and that draft Plan was being presented tonight. Council Member Kleinschmidt described the Plan as broad in scope and fairly ambitious. It would require a great deal of Ms. Lazorko's time over the next year, he said, adding that the Plan begs questions about how things would then be implemented. Council Member Kleinschmidt said that the Communications Committee had reviewed and discussed the draft Plan and was presenting it tonight for Council discussion.

Mayor Foy questioned the population figures on Page 3 of the Plan, stating that he had not thought the Town knew the total number of students. Ms. Lazorko replied that the data had come from the Town Planning Department, and she offered to recheck the figure. Mr. Horton remarked that the figure sounded about right to him.

Council Member Strom recommended that Council members who were not on the Committee view the report as a work in progress. The document should reflect Town goals and it should regularly assimilate input from the entire Council, he said.

Mayor Foy noted that the Council has had a strong interest in this Plan from its inception. It was understandable that they would want to watch it as it evolves and would want more information than is typical about how it becomes part of the organization, he said.

With regard to the "focus on graphic identity" listed on Page 7, Council Member Harrison wondered if that might be expanded to include having the Town logo visible at Town boundaries. He stated that his street was a minor entryway into the Town limits, one on which someone could tell that they were entering Chapel Hill only if they saw a Town garbage truck, and that surely there was a more attractive way to show this information.

Council Member Kleinschmidt noted that this should be extended to the Town website, mail, and other ways of entering Chapel Hill as well. There is no unified image of Chapel Hill, he said, and part of the goal would be to create that.

Council Member Verkerk agreed with the suggestion to have the logo at Town boundaries. She suggested that it also be placed on Town vehicles.

Council Member Ward mentioned the Council's desire to educate the general public on how the Town works with regard to petitions, agenda items, and other business. He noted that this had been listed as a goal and suggested that attention be paid to it during the first year. Mr. Horton replied that a Town intern had done much work on that, but that he personally had not had the time to finish it. It was a good draft, but it was four times longer than it should be, Mr. Horton explained.

Council Member Ward suggested that Ms. Lazorko devote some time to education. Mr. Horton reported that Ms. Lazorko had identified the need for having a better piece of literature available in the Council Chamber to identify the process that the Council uses when conducting meetings. That would also include better information about the petition process and about how the Council responds to petitions, he said. Mr. Horton stated that the staff could make some progress on those items. But the public education program is a larger scale project and that will be delayed, he said. Mr. Horton recommended that the Council identify other issues that need to be prioritized.

Council Member Greene expressed "slight anxiety" about the idea of a new, modern logo. It sounded like "branding in the worst possible sense," she said, explaining that she was reluctant to treat the Town as a commercial product.

Mayor Foy responded favorably to Goal 2. He said that Town ads in the newspapers had been difficult to follow and needed improvement. The Town's message, which is "we want you to participate," had become lost in the blur, he said.

Council Member Hill noted that New York City had instituted a three-digit number that people may call for information. Something like that might be useful for the Town, he said.

COUNCIL MEMBER VERKERK MOVED, SECONDED BY MAYOR PRO TEM WIGGINS, TO REFER COMMENTS TO THE MANAGER AND TO SEND THE PLAN BACK TO THE COMMITTEE FOR ONGOING DISCUSSION. THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

Item 9 - Action on the Bicycle and Pedestrian Action Plan

Mr. Horton reminded Council members that he had been out of Town during the initial discussion and introduced Assistant Town Manager Bruce Heflin to make this presentation. Mr. Heflin introduced Senior Planner Gordon Sutherland to present key issues.

Mr. Sutherland presented the Manager's recommended revisions to the draft Bicycle and Pedestrian Action Plan, which had been the subject of a public hearing on September 20, 2004. He listed five issues that had been raised at the hearing:

· The Battle Branch Greenway

· Additions and Alterations Facilities Maps

· Additions and Alterations to Plan Text

· Package Approach

· Greenways Master Plan Update

Mr. Sutherland spoke about a proposal for a bike and pedestrian path through the Battle Branch Greenway on property owned by UNC and the Town. More than a dozen citizens had raised concerns at the public hearing about that proposal, he said. Mr. Sutherland noted that the Botanical Garden was preparing its own plan to restore pedestrian trails. The Garden's position was that the existing trails were not appropriate for shared use with bicyclists, he said. Mr. Sutherland told Council members that the Botanical Garden had suggested providing a link to the existing trail via Greenwood Road. The Manager's recommended response was to delete the Battle Branch off-road path from the Action Plan, he said.

Mr. Sutherland suggested modifying the Package Approach because it is unlikely that all of the recommended improvements could be coordinated and delivered at one time. The objective of the Plan was to provide facilities improvements in combination, he said. So the Manager had recommended using the package as a way to identify linked improvements for implementation, Mr. Sutherland said.

Mr. Sutherland discussed the Town's recommended process for implementing the Plan. He reviewed the steps that would follow adoption tonight. These include a public forum on November 8, 2004, and a Council meeting on December 6, 2004, to consider a sidewalk and facilities construction plan. The staff recommendation was to adopt the Bicycle and Pedestrian Action Plan as a component of the Town's Comprehensive Plan, Mr. Sutherland said.

Council Member Harrison asked about plans to address the "pinch point" problem that he had mentioned during a previous Council meeting. Mr. Sutherland replied that the Plan included suggested criteria and recommended approaches for implementation. The detail regarding pinch points would be addressed in the annual sidewalks and pedestrian facilities construction plan, he said. Mr. Sutherland explained that the staff would then say why specific projects were being put forward. Being a pinch point might be one reason, he said.

Council Member Harrison asked how a road would become a "bicycle advisory route." As an example, he noted that he and many other bicyclists believe that Pinehurst Drive has become more dangerous since the lawsuit on Meadowmont had resulted in the installation of traffic islands. He wondered if it would be appropriate to add signage by these islands saying that cars and trucks should yield to bicyclists.

Council Member Harrison pointed out that eight-foot lanes do not provide enough space for a car or truck and a bicycle together. Even though the notion was that only cyclists would use them, he said, automobile drivers do not always understand. Council Member Harrison asked if such a situation would qualify a road to become a bicycle advisory route. Mr. Sutherland replied that the Plan suggests taking two or three pilot roads and looking at them in detail. He said that the staff's next memo would recommend how to implement the Plan and how to address aspects such as the one Council Member Harrison had just mentioned.

Council Member Verkerk noted a discrepancy in the draft Plan over whether or not the sidewalk on Barbee Chapel Road would extend to the edged of Town. She asked if Map One was the correct one. Mr. Sutherland explained that Barbee Chapel Road improvements would be phased in. First the sidewalk would be extended to Finley Forest and then it would be taken down to the Town limits, he said. Mr. Sutherland added that the sidewalk might even run to Town limits on the east side and maybe only to Finley Forest on the west side.

Council Member Verkerk noted that she had been asking for this sidewalk extension for two years. So, she wanted to make sure that it really will happen as described on Page 8, she said, and did not want to see it done as described on Page 30, where it is extended on the wrong side of the road. Mr. Sutherland agreed to make that change.

With regard to collector streets (Page 6), Mayor Foy pointed out that both Rosemary Street and Willow Drive were sensitive areas that had no sidewalks because of the trees. He inquired about the plan for those areas. Mr. Sutherland explained that when the staff recommended streets for improvements they would note the streets with such issues. The trees on Willow Drive had already been brought to the staff's attention, he said, as had issues regarding walls on Rosemary Street. Mr. Sutherland explained that the staff would work its way through these issues as they implement the Plan. The next step would be to look at streets in more detail and come back to the Council with a feasibility analysis, he said.

With regard to the Short-Term Actions on Page 51, Mayor Foy asked what was behind the two that proposed that the Council develop a strategy to lobby State agencies. That would not be undertaken "unless there's a strategy to get the Council to develop a strategy," he said. Mr. Sutherland replied that each year the Bicycle and Pedestrian Advisory Board would review the Plan and report on what had actually been done that year. He anticipated that they would keep the Council "straight," he said. But Mr. Sutherland added that the staff could also bring forward a specific proposal if the Council so chooses. Mayor Foy replied that Council members probably would not do anything unless someone is more specific about what they should be doing.

Council Member Hill commented that there already was a gravel sidewalk on North Rosemary Street from Pickard to Boundary Streets. Referring to Page 6, he asked why the Town would consider adding a sidewalk when there already is one there. Mayor Foy replied that there was a general bias toward paved sidewalks and that the Town often confronts this.

Mr. Heflin remarked that groups differ over whether or not Chapel Hill gravel is adequate for multiple uses. In the past, the Town had dealt with these sidewalks on a case-by-case basis, he said, noting that some cases had reached the Council. Mr. Heflin pointed out that it would be difficult for the Council to create a rule that would apply to all sidewalks. He recommended leaving Page 6 for future consideration even though it might need to be mediated in the end.

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

Council members realized that they had not yet heard from members of the public regarding the Bicycle and Pedestrian Action Plan. Mayor Foy stated that even though the Council had already voted they could revisit the issue.

Coalter Lathrop described this as a long-range plan, the purpose of which was to identify a potential network. He sees it as an expression of a vision of a Town-wide system that will improve non-motorized transportation, he said. Mr. Lathrop predicted that most of these projects would confront obstacles and never be built. But that is not a reason to strike them from the Plan, he said, noting that not being in the Plan would mean they would never be considered. Mr. Lathrop stated that the Plan's primary and most substantive objective was to identify locations for improved facilities. Everyone involved would carry out his/her duties based on the public interest and would spend taxpayers' money in a rational way, he said.

Loren Hintz expressed satisfaction with the Plan and hope that the Council would approve it with the following modification:

· Add a bike facility in the general vicinity of Battle Branch as suggested by the Botanical Garden and various Town boards.

· Replacing a crossed out section on Page 17-18 with wording such as: "The Battle Branch greenway should be studied in order to improve connections from the Community Center to other areas in Chapel Hill." Doing this would address neighborhood concerns and keep from leaving a blank spot on the map.

Joan Gilkey, Co-president of the Gimghoul Homeowners Association, expressed gratitude to the NC Botanical Garden for its careful study of the proposed bike and pedestrian trail in Battle Branch Park. She thanked Mr. Horton as well and the Town staff for making the changes that were before the Council tonight. The Plan was sound and workable even though it was not perfect, Ms. Gilkey said, and asked what the next step would be. Mayor Foy explained that the Council would receive implementation suggestions for consideration. Ms. Gilkey verified that these would be considered individually.

Lilly Langer told Council members that she and her husband were new to Chapel Hill and had recently moved into a house at the beginning of the Battle Branch Trail. She praised the Botanical Garden and said that it was heartwarming to witness how people in Chapel Hill cherish their wonderful facilities, such as the forest at Battle Branch. Ms. Langer explained that she and her husband had researched towns throughout the country and had chosen Chapel Hill for its uniqueness. She expressed gratitude that the Town had not decided not to pave the trail for the sake of convenience.

Council Member Ward asked how ideas that are brought forward would be incorporated into the Plan. Mayor Foy replied that it would all become part of the Comprehensive Plan. Changes would be addressed like others in the Comprehensive Plan, he said. The Town would receive a petition or comments, the Bicycle and Pedestrian Advisory Board and others would vet that, and it would come forward to the Council for a public hearing to make the change, said Mayor Foy.

Council members then voted a second time on Resolution R-9.

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

A RESOLUTION ADOPTING A BICYCLE AND PEDESTRIAN ACTION PLAN AS A COMPONENT OF THE TOWN’S COMPREHENSIVE PLAN (2004-10-27/R-9)

WHEREAS, the Chapel Hill 2000 Comprehensive Plan includes the objective to “develop and maintain a pedestrian circulation system, including sidewalks and greenway trails, that provides direct, continuous, and safe movement within and between districts of Town. Link neighborhoods to activity centers, transit stops, schools, parks, and other neighborhoods”; and

WHEREAS, the Chapel Hill 2000 Comprehensive Plan includes the objective to “develop and maintain a system of safe and efficient bikeways (on-street bike lanes and off-street paths within greenways) designed to contribute to Town-wide mobility, connecting neighborhoods with activity centers, schools, parks, and other neighborhoods”; and

WHEREAS, the Comprehensive Plan calls for development of a comprehensive pedestrian and bicycle network;

NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council hereby adopts the Bicycle and Pedestrian Action Plan dated October 27, 2004, as a component of the Town’s Comprehensive Plan.

This the 27^th day of October, 2004.

Item 10 - Providence Glen Condominiums: Request for Minor

Modification of Special Use Permit – Affordable Housing

Roger Waldon explained that Providence Glen had been one of the first developments required to offer affordable housing as a condition of approval. But affordable homes had not ultimately been included in that development, he said, and it seemed unlikely that they would be given the way the stipulation had been written. Mr. Waldon told Council members that the Providence Glen developer had offered a payment in lieu and that the Town staff and Orange Community Housing were recommending that the Council accept that.

Mr. Waldon pointed out that Council members must decide whether this is a minor change to the SUP, which the Manager can approve, or a major modification that would require a public hearing by the Town Council. The staff's preliminary opinion was that it was a minor modification, he said. Mr. Waldon said that the staff also believed that changing the stipulation to a payment in lieu was better than the Town was likely to get otherwise. By approving R-10 the Council would endorse the staff's direction, he said.

Mayor Foy agreed that this was a desirable outcome. He thanked the Manager for bringing it to the Council's attention even though it was a minor change.

COUNCIL MEMBER STROM MOVED, SECONDED BY COUNCIL MEMBER VERKERK, TO ADOPT R-10. THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

A RESOLUTION ENDORSING TOWN MANAGER DETERMINATION OF A MINOR CHANGE TO THE PROVIDENCE GLEN CONDOMINIUM SPECIAL USE PERMIT, SUBSTITUTING A PAYMENT-IN-LIEU OF PROVIDING AFFORDABLE HOUSING FOR THE EXISTING AFFORDABLE HOUSING STIPULATION (2004-10-27/R-10)

WHEREAS, the Town Council has approved a Special Use Permit for the Providence Glen Development in Chapel Hill; and

WHEREAS, the approval included affordable housing provisions; and

WHEREAS, Providence Glen, LLC, the developer of Providence Glen Condominiums, has requested permission to replace the affordable housing provisions of the Special Use Permit with a $6,000 payment-in-lieu of affordable housing for each of the remaining 16 affordable units (a total of $96,000); and

WHEREAS, the applicant proposes to make the payments when the first certificate of occupancy is issued for each of the final eight buildings; and

WHEREAS, the Town Manager has determined that this payment-in-lieu of providing affordable housing would be reasonable and desirable and in accordance with Section 18.5 of the Development Ordinance in place at the time of the Special Use Permit approval;

NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council endorses the Town Manager’s approval of this substitution as a Minor Change to the Special Use Permit, to substitute a payment-of-lieu of providing the required affordable housing.

BE IT FURTHER RESOLVED that the Council endorses the Town Manager’s determination that this substitution would be a Minor Change to the Special Use Permit allowing replacement of the affordable housing provisions of the Special Use Permit with a requirement that a $6,000 payment-in-lieu of providing affordable housing to be made the Town of Chapel Hill Revolving Acquisition Fund for each of the remaining 16 affordable units (a total of $96,000) with the payments to be made when the first Certificate of Occupancy is issued for each of the last eight buildings.

This the 27^th day of October, 2004.

Item 11 - Update on the Town Operations Center Project

Mr. Heflin explained that the Town Operations Center (TOC) had exceeded its budget by about $3.9 million due to changes in materials costs. However, the Town and its designers had found ways to reduce the scope by eliminating aspects of some programs and combining and reducing others, he said. Mr. Heflin told Council members that the staff believed they could continue to move forward and stay within the guidelines of the preliminary budget. He emphasized that the numbers were just estimates and that that the staff would not know the real costs until they open bids next spring and receive federal and State funding.

Architect Ken Redfoot, of Corley Redfoot & Zack, stated that the Town's guiding principles (sustainable development, environmental sensitivity, and fiscal prudence) had remained despite the cost-cutting analysis. He showed on a graph how the cost of construction materials (steel and other metals, asphalt, gypsum board, and pvc water pipe) had increased over the past year. Mr. Redfoot displayed a site map and showed that the cost-cutting plan would not change the overall layout in any appreciable fashion. He provided details of the changes, which include incorporating one building into another, eliminating some covered parking, and modifying some buildings. None of these modifications would have a dramatic impact on the operational needs of the facility, he said. Mr. Redfoot outlined a schedule with construction beginning in June 2005, and a final goal of obtaining a Certificate of Occupancy in December 2006.

Mayor Foy requested more information about the proposed across-the-board reduction of 5% in building system designs for plumbing, mechanical, and electrical systems. Mr. Redfoot replied that all of the contractors he works with felt that they could work toward saving 5% in each of their categories. He pointed out, however, that this was an estimate and not a bid.

Mayor Foy asked about a reference on Page 6 to a 7% inflation factor and 3% design contingency. He asked Mr. Redfoot how that 10% would interact with a 5% reduction. Mr. Redfoot replied that the 5% had been taken out in order to lower the overall cost. But, considering the possible upward trend in construction materials, there might an increase in the cost of some materials, he said.

Mayor Foy commented that it looked as though there had been a 15% factor built in, which was now 10%. Mr. Redfoot replied that they would work to achieve a 5% reduction in the project's systems. His firm did not view it as padded by 15%, he said, adding that they would reduce costs in particular systems.

Council Member Hill noted that the 5% reduction was in plumbing, mechanical, and electrical systems, and not for the overall project. The idea that there was a 15% contingency is incorrect, he said, because those three areas only amount to some smaller percentage. The 10% was across-the-board, whereas the 5% was only on items that had been overestimated, he said. Council Member Hill explained that this was the way it was done in the industry and said that he understood it.

Council Member Strom suggested that the value engineering study would point to some additional savings or additional areas to look at. Mr. Heflin replied that the staff hoped so. He mentioned, however, that a preliminary report from the value engineers had not identified significant changes to the early design. Mr. Heflin repeated that these numbers were estimates. It would not surprise him if something occurred through the design process, staff analysis, or value engineering that would cause the Town to rethink some of the numbers further, he said.

Council Member Strom verified that such information would come to the Council. He then asked about the $135,000 for project management costs listed on Page 4. Mr. Heflin replied that the Town had hired retired Town employees to provide supplemental field inspections and administrative work. Council Member Strom verified that this had been an anticipated need but that the staff had not known exactly how it would be filled. Mr. Heflin stated that it was a good compromise. It costs less than hiring a firm, provides flexibility, and brings people in who are knowledgeable about operations and regulations, he said.

Council Member Strom pointed out that the Council had challenged the staff to cut the original TOC budget. At that time, the staff had assured the Council that they had cut everything possible, but they had fallen short of meeting the Council's goal, he said. Council Member Strom asked why weren't these cuts that are now recommended offered to the Council at the time that they asked that the budget be brought down to $20 million. Mr. Heflin replied that the staff had made a strong effort to balance the need to reduce the budget with the goal of building the best 30-year project they could. All of the cuts they had brought tonight were painful and far less than ideal, he said. Mr. Heflin stated that, in some cases, they were cutting things that they hope to add back on in future years. But the suggested cuts would allow the Town to continue programs of the three departments, maintain the Council's core values, and keep the project moving, he said. Mr. Heflin pointed out that the alternatives were to ask the Council for more money or to cut the sustainable elements of the building. So all of the departments were willing to hurt a little more than they want to, he said.

Council Member Strom asked if the Town would have to come back at some point and invest $3-4 million to make the TOC usable for 30 years. Mr. Heflin replied that the basic footprints of the buildings should survive that long. But the Town probably would need some of the things that have been cut, he said.

Council Member Greene asked about the implications for the Percent for Art budget. Mr. Heflin replied that Percent for Art would still receive 1% of the same amount of money.

Mr. Redfoot commented that everyone was learning more about the programmatic needs as the process moves forward. He was working closely with the staff to make sure that there was a proper use of efficiencies across the board, he said.

Council Member Ward inquired about putting the TOC plan against the LEEDS Certification program to learn where it stands. Mr. Redfoot replied that they had put it against the high performance guidelines set up by the Triangle J Council of Governments. They could easily translate that to the LEEDS program as well, he said. Council Member Ward encouraged them to do so, and Mr. Redfoot agreed.

Item 12 - Update on Lobbying and Ethical Guidelines Ordinance

Mr. Karpinos asked the Council for guidance concerning its interest in the proposed lobbying and ethical guidelines ordinances that had come before the Council at a June 2004 public hearing and been deferred to this fall. He explained that the Council could direct further work on these items or consider the attached resolution. The resolution would table the matter until further interest prompted the Council to consider it again, Mr. Karpinos said.

Council Member Greene told the Council that she had discussed this issue with the original petitioners. It was not clear that the Town had the legal authority to impose a lobbyist registration that could reach UNC, she said. Mr. Karpinos had drafted a lobbyist registration ordinance that would apply to private lobbying interests, said Council Member Greene, noting that there had also been some concern about that. But it was beginning to seem as though the Town was trying to address a problem that "doesn't terribly exist," she pointed out.

Council Member Greene explained that the ordinance would reach many small businesses and other people whom the Council did not intend to target. She said that the petitioners had agreed with her that the real problem would not be addressed and that it was better to leave well enough alone for now. She noted that the Town could bring this up again if conditions change or if State law makes it easier for the Town to impose its own ordinance.

Mr. Karpinos pointed out that the Town was following issues at the State level that might affect this matter in the future.

COUNCIL MEMBER GREENE MOVED, SECONDED BY COUNCIL MEMBER VERKERK, TO ADOPT R-11. THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

A RESOLUTION TABLING THE PROPOSED LOBBYING AND ETHICAL GUIDELINES ORDINANCE (2004-10-27/R-11)

BE IT RESOLVED BY THE COUNCIL OF THE TOWN OF CHAPEL HILL that the Council tables the proposed Lobbying and Ethical Guidelines Ordinance for possible future consideration at such time as the Council may determine.

This the 27^th day of October, 2004.

Item 13 - Appointments

a. Historic District Commission. Charles Collier was appointed.

Council Members

Historic District Commission

Foy

Greene

Harrison

Hill

Kleinschmidt

Strom

Verkerk

Ward

Wiggins

TOTAL

Ralph Bass

Charles Collier, III

Keith Freeman

Mark McGrath

Morgan Metcalf

Shawn Thompson

b. Special Committee to Consider Renaming Airport Road. Catherine Holland, Steven Largent, and Yonni Chapman were appointed.

Council Members

Special Committee to Consider Renaming Airport Road

Foy

Greene

Harrison

Hill

Kleinschmidt

Strom

Verkerk

Ward

Wiggins

TOTAL

Residents or Business owners of Airport Rd

(Vote for 2)

Catherine Holland

Stephen Largent

Familiar with History

(Vote for 1)

Virginia Barbee (also NAACP)

Yonni Chapman (also NAACP)

Mildred Council (also NAACP)

Mabel Curnow

Randall Curnow

Anthony Martin

Theresa Raphael-Grimm

The meeting adjourned at 10:23 p.m.

Section II

Section IV

Section V

Section VII

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

Section I. Section 11-39.1(a)(7) of the Town Code is hereby revised to read as follows:

This the 27th day of October, 2004.

Historic District Commission

Special Committee to Consider Renaming Airport Road

This the 27^th day of October, 2004.