SUMMARY MINUTES OF A BUSINESS MEETING

OF THE CHAPEL HILL TOWN COUNCIL

MONDAY, OCTOBER 24, 2005, 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, Acting Planning Director J.B. Culpepper, Principal Transportation Planner David Bonk, Library Director Kathy Thompson, Information Technology Director Bob Avery, and Town Clerk Sabrina Oliver.

Item 1 – Ceremonies:  None.

Item 2 – Public Hearings:  None.

Item 3 – Petitions

3a.       Petitions by Citizens.

3a(1).   Lee McIlwain regarding the Designation of the Mason Farm Road Neighborhood as a Neighborhood Conservation District.

Mr. McIlwain, speaking for 59 percent of the homeowners in his neighborhood, noted that the neighborhood had been built in the ‘50s and 60s, and that it was a vibrant neighborhood with many children.  He said there were two primary reasons for his and his neighbors’ request for protection through the Neighborhood Conservation District process.

Mr. McIlwain said their first concern was the sharp increase in the number of non-owner occupied, all-rental single family homes, noting that in the past 10 years the number had increased to 17.9 percent.

The second concern, Mr. McIlwain stated, was the continued encroachment into the neighborhood by the University.  He noted that the University had purchased seven of the single family homes, contracted to buy two more, and had declared its intention to acquire five more.  Mr. McIlwain said that would equal 28 percent of the homes.  He said that the University had also stated its intent to add two lanes to Mason Farm Road on the south side of the new family housing units.  Mr. McIlwain asked the Council to help in their efforts to resist the further incursions by the University into their neighborhood.

Mr. McIlwain said that in view of the rapid changes taking place in their neighborhood and the pressing concerns, that the Council not postpone action on this petition until after the spring of 2006, when action was planned on other neighborhood petitions.  He said their further ask for assistance during the period when their petition was under review. 

Ken Broun, a resident of the Mason Farm neighborhood, said it was apparent from the map provided with the petition just how threatened and endangered an area their neighborhood had become.  He said the University had taken or would take all of the area north of Mason Farm Road, had indicated its design on all the area between Oteys Road and the Bypass, and what remained intact and vibrant was the area from Oteys Road, south of Mason Farm Road, and around the Whitehead Road/Whitehead Circle area.

Mr. Broun said they needed immediate protection from developers and the University, so that the whole character of their neighborhood was not irreparably changed. He asked for serious consideration from the Council for interim protection, and specifically requested that the following be prohibited:

· a limitation on the subdivision of existing lots; and

· a limitation on the creation of new multi-family units, including duplexes.

Mayor Foy noted that the Town welcomed the opportunity to work with neighborhoods to create Neighborhood Conservation Districts.  He said the petition would be referred to the staff so that they could advise the Council regarding what actions to take.

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

3a(2).   Chapel Hill Public Library Foundation regarding Library Naming Rights.

Bob Schreiner provided a brief background of the work of the Library Foundation in regards to its efforts to raise $2.5 million to fully fund the collections improvements to the Chapel Hill Public Library as recommended in its Library Services Master Plan.

Mr. Schreiner said their specific request was to work with representatives of the Council to determine ways to use Naming Rights to help fund collections improvements recommended in the 2003 Library Services Master Plan.  He said if the Foundation was successful in its fundraising efforts, it would relieve some tax burden from the citizens as well as provide budget relief for the Town.

Mr. Schreiner said there were many cases were Naming Rights had assisted the libraries with fundraising, and those examples would be provided to the Council at a later time.  He said they wanted the Council to establish a policy for Naming Rights that could be used as a tool by the Foundation or a similar organization for fundraising.  Mr. Schreiner said in the past the Council had approved naming rights for things such as the A.D. Clark Pool and others, but it had been done on an ad hoc basis.  He asked that a policy be established that would provide guidance and control so that they could be used effectively by groups such as the Foundation for fundraising, and that such a policy be in place by the spring of 2006 when the Foundation’s campaign would begin.

Mr. Schreiner said the second part of the petition asked that the Council develop a schedule for funding all parts of the 2003 Library Master Plan, such as for ongoing staff or maintenance needs and any additional money necessary for one-time book acquisition.

Ken Broun said as a matter of general policy, many communities all of the country had used the concept of raising money for important causes by having Naming Rights, and the time had come for Chapel Hill to do the same.  He urged the Council to develop such a policy quickly, particularly in light of their need to move quickly to raise the necessary funds.   Mr. Broun said the sooner they have such a policy in place, the better their fundraising efforts would be.

Janet Kagan said she wanted the library to continue to be a strong asset for our community. She said she had difficulty supporting the promotion of individuals in businesses through the sale of public civic space.  Ms. Kagan said before the Council made a decision on the petition, she hoped they would ask themselves what should be the accountable relationship between government and private interests.

Mayor Foy suggested that the petition be referred to the whole Council, and direct the Council to develop a policy.  Secondly, he suggested that the Council ask the Mayor and the Manager to develop a proposed process for how to do that, such as placing on an upcoming agenda or scheduling or work session.  Mayor Foy said he believed that after the Council discussed the issue something could be put forward for public discussion.  He said the process could include when meeting times would be for the Council’s discussion, whether there would be a public forum, hearing or work session, and what the time line would be such as by the spring of 2006.

Mayor Foy said no decision would be made tonight on the petition other than to refer it to the Council to develop a naming policy.

Council Member Ward said he agreed with the Mayor’s suggested approach.

COUNCIL MEMBER WARD MOVED, SECONDED BY COUNCIL MEMBER VERKERK, TO RECEIVE AND REFER THE PETITION TO THE COUNCIL TO DEVELOP A NAMING RIGHTS POLICY AND TO THE MAYOR AND MANAGER TO DEVELOP A PROPOSED PROCESS ON HOW TO DO THAT.

Council Member Verkerk said she liked the idea of having a public forum because this was a community asset.  She said she would like to hear how citizens feel about this, because there were ups and downs associated with it.

THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

3a(3).   Dan Coleman, Jim Protzman, and Mark Marcoplos regarding a Call for New Federal Priorities.

Mr. Marcoplos noted they had provided the Council with a proposed resolution for their consideration that called for new federal priorities.  He said many of the federal policies place a burden on local governments to make up the shortfall created by unfunded mandates.  Mr. Marcoplos commented that in the past local governments had taken what was given by states and the federal government and worked within those parameters, but it was now time to express our displeasure with resources being used to fight the war in Iraq rather than being used to address vital needs here at home.

Mr. Marcoplos stated it was time for our voices to be heard and do what we can to change the priorities.  He said he believed that municipalities would weld considerable power to that end.

Dan Coleman read the proposed resolution in its entirety:

A Resolution Calling for New Federal Priorities

WHEREAS, federal administration priorities and policies have led to de facto unfunded mandates on local governments, such as:

· Demands for increased testing without sufficient funding for public education, and

· Failed energy policies that increase dependence on costly non-renewable fuels, and Health care policy that favors pharmaceutical and insurance industries at the expense of employers and citizens, and

· Environmental policies that worsen air pollution and drive up health care costs, and lax enforcement of job safety regulations resulting in productivity losses and increasing health costs, and

· Mismanagement of homeland security that places increased burdens on local governments for disaster planning and relief, and

· Failure to enforce worker rights laws and establish a meaningful minimum wage, resulting in increased poverty and demand for increased access to local health and human services, and

· Gutting of federal programs for low-income families that has created increased local burdens for housing and other services, and

· The promotion and subsidy of large-scale agribusiness corporations which contribute to the crippling of local farm economies which have traditionally been the foundation of healthy rural life, the source for local food, and are minimally oil-dependent, and

WHEREAS, the war in Iraq is siphoning billions of dollars from the US economy and straining the fiscal health of our federal, state and local governments; and

WHEREAS, no-bid contracts to major corporations for reconstruction in the southeast United States and Iraq undermine the trust of citizens in the integrity of government; and

NOW, THEREFORE, BE IT RESOLVED by the Mayor and Council) of the Town of Chapel Hill that the Council hereby petitions the Bush Administration and Congress to end the war in Iraq, re-establish a progressive tax code, curtail favoritism toward corporate interests, develop responsible policies focused on renewable energy, and commit to priorities that reflect the common good.

This the 24^th day of October 24, 2005.

Jim Protzman said he had helped write the proposed resolution, and was stunned by what the current administration was doing to this country.  He said they were asking that the resolution not be referred to the staff, but rather the Council act on it quickly and take a stand for what was right and good for this country.

Mayor Foy stated they would not refer this to the staff, adding that the Council acted on issues such as this directly.  He said they had to be judicious in the manner in which they weighed national issues and commented on them, but said the proposed resolution did a good job in setting forth how national priorities were affecting the ability of local governments to function.

Mayor Foy noted he had a concern about the Be It Resolved paragraph, stating that rather than curtailing favoritism toward corporate interests he would rather end them.  He said he recognized that curtailing them may be the best that could be achieved.

Council Member Harrison said he agreed the resolution should be referred to the Council and that they act on it quickly.  He said citizens sometimes commented that the Council should not take positions regarding national policy, but the way they are described here as unfunded mandates it caused him to take notice and act. Council Member Harrison said for many years the unfunded mandates that local governments had dealt with, for example stormwater management, were important and should be addressed.  But, he noted, the issues addressed by the resolution were issues they had been asked to fund yet they had not been asked for their opinions. Council Member Harrison said it was time for local governments to put forth their opinions on these unfunded mandates.

Council Member Strom thanked those who had brought the proposed resolution forward.  He said that many of the Council members had been thinking about some type of resolution on national issues, and said it should be acted on tonight.

COUNCIL MEMBER STROM MOVED, SECONDED BY COUNCIL MEMBER KLEINSCHMIDT, TO ADOPT THE PROPOSED RESOLUTION WITH THE WORD “END” SUBSTITUTED FOR THE WORD “CURTAIL” IN THE BE IT RESOLVED PARAGRAPH.

Council Member Kleinschmidt agreed, saying that such national issues come up when the Council discussed the budget or other general administration issues.  He said the Council had to look at the financial burdens placed on the Town by the federal government in being able to provide basic services.  Council Member Kleinschmidt said some of the things that came to his mind were the difficulties with the public housing program, and the risk to Community Development and HOME money in the future.

Council Member Kleinschmidt said one of the things the Council was hearing from the federal government was that those funds had to be shifted to other priorities, and it had been with great dismay that those priorities, including the war on Iraq, were harming citizens here at home and risking the Council’s ability to provide what was probably the best public housing program in North Carolina if not the southeast and the country.  He said he was pleased that bullet had been included in the resolution, not to diminish the impact of all the other priorities noted.  Council Member Kleinschmidt thanked the petitioners for providing the Council the opportunity to speak on these issues.

Mayor pro tem Wiggins said she was pleased that the Council would act on this tonight so that she would have the opportunity to support it before leaving the Council in December.

Council Member Verkerk noted she had read a phrase in an article in today’s newspaper that had meaning for her, and that was the “breaking of trust.”  She said the article noted the complete breakdown of trust within the current federal administration.  Council Member Verkerk said she would support the resolution as well, noting there were many people who were raising their voices about the breaking of trust which to her was one of the most egregious things these policies had done.

Council Member Verkerk said she was a neighbor of the Glen Lennox apartments, and the Glen Lennox owners had picked up the ball when the federal government had dropped it by opening up apartments and providing food and money to six families.  She said that was heartening to her, adding she believed in trust on the local level but not on the federal level.

Mayor Foy said he had one more suggesting to modifying the resolution.  He said in the Be It Resolved paragraph, he would like to include the word “immediately” just prior to the word “end.”  Mayor Foy said he had heard the Secretary of State say on television recently that we may not be finished with the war in the next five years.  He said he believed we should end it as soon as possible.  Mayor Foy asked that the change be accepted as a friendly amendment.

Council Members Strom and Kleinschmidt accepted the friendly amendment.

COUNCIL MEMBER STROM MOVED, SECONDED BY COUNCIL MEMBER KLEINSCHMIDT, TO ADOPT THE PROPOSED RESOLUTION, AMENDED BY INSERTING THE WORD “IMMEDIATELY” JUST PRIOR TO THE WORD “END,” AND REPLACE THE WORD “CURTAIL” WITH THE WORD “END.” 

Council Member Strom said that Council Member Kleinschmidt had alluded to impact federal policies had on housing funds and pass-through money in general.  He said that during the most recent budget cycle the Council had been forced to eliminate a position because of the unpredictability of pass-through funds from the federal government and shifting priorities in Washington.

Council Member Strom said he served as the Council’s representative to the Triangle Transit Authority, and they were in the process of requesting federal New Start money for a fixed Guideway system, and there wasn’t any.  He said nationally, there were requests for $22 billion in New Start money which would fund every program that was at 60 percent completion of engineering.  He said when you compare that $22 billion with what was being spent for the war in Iraq, that if that money were put towards a strong initiative for public transportation then you would see that it could be done.  Council Member Strom said it was just a matter of priorities.

Council Member Ward added his support for the resolution, noting that some citizens believed these were national issues that the Council should not spend its time on.  He said the petitioners had done an excellent job crafting the resolution to connect the actions at the national level to how we were able to provide services to our community.  Council Member Ward said those services had been greatly diminished over the past four to five years.  He said he would like for those citizens who felt the Council should not comment on national issues to read the resolution, adding he believed they would then clearly see the connection between what the Council does to serve the community and the hurdles that were being put in their way by the federal government.

Council Member Greene noted as a county they had recently embarked on a partnership to end homelessness, adding there was an office on homelessness in Washington, D.C.  But, she said, at every turn there were successful efforts to take away funding for such important programs that help families who are at risk to become homeless, such as Section 8 funding and the Hope 6 program, and various other programs within HUD.

Council Member Greene said it did not help their cause to end homelessness for those types of things to occur.  She said they would persevere, but it was frustrating.  Council Member Greene said that local government was the first line in government, and if local governments did not take a stand then she did not know who would.

Mayor pro tem Wiggins said she had received a call from a citizen this afternoon who had asked that she tell the Council publicly that at least one citizen did not support this resolution.

Council Member Hill noted he had received a call from the same citizen, who had stated that the resolution was “none of their business.”  He said he believed it was the Council’s business.  Council Member Hill said his only problem with the list of issues on the resolution was that it was not long enough.  He said there were many other issues that were being directly or indirectly impacted by federal mandates.  Council Member Hill said he would support the resolution.

THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

3a(4).   Phil Post regarding a Request for Expedited Review of the Concept Plan for the Wilson Assemblage/Dobbins Hill Apartments.

Mr. Post, speaking for Crosland, noted that this request was very important to Crosland.  He asked that the Council grant expedited review for the Concept Plan only, noting it was scheduled to be considered by the Community Design Commission on October 26.

Mr. Post said due to a lack of priorities by the NC Department of Transportation NCDOT, the Dobbins Hill and the Wilson Assemblage projects were being substantially held back.  He said they had worked with Town staff to come up with a conceptual idea to work the street system within these two projects so that there would be no impact to the Superstreet project which was being delayed by the NCDOT.

Mr. Post said the street conceptual plan would reroute some of the streets to put the traffic onto Safe Road as opposed to putting no traffic out onto Erwin Road.  He said they believed the proposal had a lot of merit, and he would hope and request that the conceptual plan would be heard by the Council sometime in November or December.  Mr. Post asked that this project be added to one of the four upcoming Council agendas, adding they did not want some other project to be “bumped” because of their request.  He also suggested that it could be placed on an agenda as a provisional item.

Mr. Post said they understood that if the Council did not act on their request that the Concept Plan would be considered in January as already scheduled.  He said that was problematic because the Dobbins Hill affordable units were dependent upon the tax credits issued by the State, and that application had to be submitted in January to maximize their chances for approval.  Mr. Post said to submit the most viable application they believed it was necessary to have some sort of Council input regarding Crosland’s scheduling difficulties with NCDOT regarding the Superstreet project.

Allen Nester reminded the Council that three years ago they had approved a small office project to be constructed behind the Sheraton Hotel, with the stipulation that the building not be occupied until the Superstreet was built. He said he they were three years later and the Superstreet had been delayed by NCDOT, and they had exhausted all of their extensions and were facing a completion deadline.

Mr. Nester requested that the Council consider the small office project at the same time that they consider the Crosland request to waive the stipulation that their building could not be occupied until the Superstreet was completed.  He said they had begun construction, but would not be able to occupy it with the stipulations that were now in effect.

Mayor Foy said he believed the Council would have to treat these requests as two separate petitions, with one asking for a Concept Plan review within the next month, and the other asking for some relief from the stipulation regarding the Superstreet.  He asked the Manager to comment on the request regarding expedited review of the Concept Plan.  Mr. Horton remarked that the practice of the Council was to take comments regarding a Concept Plan and then adopt a resolution referring those comments to the applicant.  He said if the Council were to adopt a more detailed resolution that commented on the Superstreet provision, in effect that would be prejudging an application and coming to a conclusion before they held the SUP Modification hearing.  Mr. Horton said the Town Attorney may have a different opinion, but it would be troubling to him.

Mr. Horton said he did not understand what value receiving the Council’s comments on the Concept Plan would have if the SUP had not been modified.  He noted that provision would still stand and would still be a part of the requirements that had to be met.  Mr. Horton asked the Attorney was there some affirmative or specific action that could be taken to indicate the Council’s intention to modify the Superstreet provision if the Council decided that was the appropriate action to take without coming to a predetermined judgment prior to the public hearing.

Town Attorney Ralph Karpinos stated he could not think of a way to do that, agreeing with the Manager that it was be problematic.

Mayor Foy stated he did not believe the Council would want to do that without a public hearing.  He asked had Mr. Horton talked with the applicant about that. Mr. Horton replied he had talked with Mr. Ravin and Mr. Post, but had not been able to be positive with either of them.  He said he could think of a way that would help them obtain their objective, particularly because he could not predict whether the Council would conclude after the public process that it should change the provision regarding the Superstreet.  Mr. Horton stated the Council had treated that as an important provision in the past.

Mayor Foy said the point was that comments could be made to the applicant in November which might be misleading and of no value.  Mr. Post replied he may be overstating their request, reiterating that they were simply asking that the first step be moved forward so that they could meet the January deadline for application to the State for tax credits.

Mayor Foy asked Mr. Horton did the applicant need to submit a Concept Plan for a SUP Modification.  Mr. Horton responded in this case they would be required to do that because of the substantial changes in the proposal.

Mr. Post stated that moving consideration of the Concept Plan forward by two months, from January to November, would be valuable to the project and the affordable housing component in particular.

Mayor Foy asked Mr. Post if their intention was to receive the tax credits in 2006. Mr. Post replied they had two windows of opportunity, one in 2006 and the other in 2007.  He said they believed they needed to have the opportunity to hit both of those windows to have the highest degree of probability for success.

Mayor Foy asked the Manager if the Concept Plan could be moved up.  Mr. Horton replied if the Council wished to do that, he would recommend that it be added to the November 21 meeting agenda.  He said there were only about six items on the main agenda that night, with eight or nine on the agenda for November 9.

Mayor Foy proposed that the Concept Plan be scheduled for November 21.

COUNCIL MEMBER WARD MOVED, SECONDED BY COUNCIL MEMBER VERKERK, GRANT THE REQUEST FOR EXPEDITED REVIEW OF THE CONCEPT PLAN AND PLACE IN ON THE NOVEMBER 21 COUNCIL MEETING AGENDA.  THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

Council Member Greene noted that the farm house located on this property appeared to be ready to move.  Mr. Post responded they were in the final stages of getting the Town permits required to move it, noting the house was up on rails and they had found a new home for it.  He added they would move it as soon as the final permits were received and the new site prepared.  Mr. Post noted the other homes on the site would be moved as well, and were in varying stages of preparedness for that move.

Council Member Greene asked where the farm house would be placed.  Mr. Post said on Erwin Road near the entrance to Birch Meadow subdivision, so it would remain in Chapel Hill.

Mayor Foy said the Council needed to act on the petition from Allen Nester.  Mr. Horton stated that Mr. Nester in essence was asking for a modification to the SUP, which he believed could only be done through the Council’s normal process.  Mayor Foy suggested referring the petition to the Manager and Attorney and they could work with Mr. Nester regarding that.

COUNCIL MEMBER KLEINSCHMIDT MOVED, SECONDED BY COUNCIL MEMBER VERKERK, TO RECEIVE AND REFER THE REQUEST FOR EXPEDITED REVIEW OF THE SPECIAL USE PERMIT TO THE MANAGER AND ATTORNEY.  THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

Council Member Kleinschmidt commented that he would not be attending the Council’s meeting on November 21.

3a(5).   Bob Gwyn regarding a Protest to the War in Iraq.

Mr. Gwyn noted he had a petition with 140 names requesting that the Council call for the ending of the war and bringing our troops home.  He read the petition in its entirety.  Mr. Gwyn said he had talked with the petitioners who had brought forward the resolution calling for new federal priorities, and they were certainly in accord with it.  Mr. Gwyn asked the Council to accept the petition along with the names of those who wanted to make their feelings known.

Barry Freeman said it was important that both of these petitions should be supported because they were specific.  He said that hundreds of other communities were supporting such petitions, and he believed that Chapel Hill would want to be in the forefront of ending this period in our history.

Marnie Clark said that many people believed that the war should be ended and our troops brought home, although would take some time.  She said it was evident that the situation in Iraq would get worse no matter what we did, and the longer we stayed in Iraq the harder it would be to leave.  Ms. Clark said nothing we do militarily would make it better.

Ms. Clark said when the Iraqi government was fully functioning with security, we did have some responsibility to help restore and reconstruct the country, including canceling contracts that were detrimental to that cause.

Mayor Foy confirmed that all members of the Council had a copy of the resolution submitted as a petition by Mr. Gwyn.  He stated that the petition requested that the Council call for an end to the war in Iraq and bring the troops.

COUNCIL MEMBER KLEINSCHMIDT MOVED, SECONDED BY COUNCIL MEMBER STROM, TO ADOPT THE RESOLUTION PRESENTED AS A PETITION MR. GWYN.  THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

Mayor Foy thanked the petitioners for bringing their resolution forward.  He noted it would be forwarded to the appropriate persons along with the first petition.

Announcements by Council Members.  None.

Item 4 – Consent Agenda

Council Member Strom stated he did not want to pull item #4g, Bid Award for Installation of the Police Department Standby Electric Power Generator, but did want some information.  He said  the Manager’s recommendation was that the Council make up a shortfall of $10,000 for the purchase and installation of the generator through use of the Council’s contingency fund.  Mr. Horton stated that was correct.  Council Member Strom asked what the balance was of the contingency fund.  Mr. Horton replied after this $10,000 deduction, there would be $58,000 left in that fund.

Council Member Greene pulled #4h, Scheduling a Public Forum to Consider a Potential Change in Cablevision Public Access Fees Paid by Cable Television Customers, in order to allow Chad Johnson to speak on it.  She said she had read about this in the newspaper, and was distressed about the possibility that we might have our cable television franchise funds removed.  Council Member Greene asked Mr. Johnson to elaborate on what exactly that might mean.

Chad Johnson said that currently there were three Bills in the House and Senate that would eliminate local control for franchising authority for video services.  He said currently the Town held a franchise with Time Warner, and these Bills would eliminate that.  Mr. Johnson said that phone companies wanted to get into the video servicing business by offering similar packages with video, Internet and phone service all in one package, but did not want to play by the same rules that the video companies were playing by.  He said what the phone companies were trying to do was create a national franchise that would be administered by the Federal Communications Commission (FCC).

Mr. Johnson said Bill 1504 would eliminate franchise fees immediately upon passage, and the Town would no longer receive the nearly one-half million dollars from Time Warner.  He said it would also eliminate public right-of-way issues in that, for example, if Verizon wanted to deliver video services they could place equipment in the road without notifying the Town, including placing cell towers in the public right-of-way without any notification to the Town.  Mr. Johnson said it would also eliminate all government, educational and public access, noting that people who watched the Council meetings from their home would no longer be able to do so.  Mr. Johnson said these Bills also would eliminate public broad band network services, making them illegal.  He said only a commercial entity could manage such services.

Mr. Johnson noted that the Bills were in essence written by SPC and Verizon.  He stated that cable television and video services would change drastically in the next four or five years as digital technology advances.  Mr. Johnson said that these Bills did not even define what a “channel” meant, which would be very different five years from now.

Mayor Foy said from the Council’s point of view as well as from the tax payers’ point of view, passage of these Bills would amount to losing two percent of our property tax.  He said this was another indication of why the Council was willing to wade into national issues.

COUNCIL MEMBER WARD MOVED, SECONDED BY COUNCIL MEMBER KLEINSCHMIDT, ADOPTION OF RESOLUTION R-1.  THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

Item 5 – Information Reports

Information Reports were accepted as presented by consensus of the Council.

Item 6 – Consideration of a Memorandum of Understanding for
a Downtown Economic Development Initiative

Mr. Horton commented that tonight he was recommending that the Council adopt a resolution that would authorize a Memorandum of Understanding between the Town and RAM Development Company for development of the Town’s property known as Parking Lot #5 and the Wallace Deck, and also would authorize the Manager to negotiate a full-scale Development Agreement with RAM Development Company for later consideration by the Council.

Mr. Horton remarked that the Memorandum of Understanding outlines the basic terms and conditions for carrying out two economic development projects in downtown Chapel Hill.  He provided the Council with a brief history of Council actions that had led to consideration of the resolution before the Council this evening, including the 2000 Comprehensive Plan goals, the adoption of the Downtown Small Area Plan, extensive citizen participation, and the work performed by a Council committee and a consultant.

Mr. Horton noted that work had led to authorization by the Council in June of an Exclusive Right to Negotiate with RAM Development Company, followed by four Council work sessions with RAM on key project design issues.  The Town’s Negotiating Team, composed of Council Members Strom, Greene, and Hill, the Town Manager and Town Attorney, John Stainback, the Town’s economic development consultant, and a member of the Town’s Economic Development Council, Glenn Hardeman, began negotiations with RAM Development this past summer.

Mr. Horton said the Council discussed remaining negotiating points on October 12, and authorized the basis for concluding negotiations with RAM.  He said that tonight an agreement was before the Council for consideration that was consistent with the Council’s authorization, and had been accepted by Casey Cummings on behalf of RAM Development Company.

Mr. Horton said the Memorandum of Understanding in its entirety had been provided to the Council with tonight’s materials, and was published on the Town’s web site.  He said there were several documents that outlined key provisions, including an item by item summary, a comparison to provisions in the developer’s original proposal with a brief commentary on negotiations, a numeric comparison of key elements in the original proposal, and the proposed Memorandum of Understanding.

Mr. Horton noted that economic development consultant John Stainback deserved key credit for bringing this to culmination, and without his assistance we would not be at this point tonight.  He said he was also especially grateful for the good work of Glenn Hardeman in the negotiations and particularly as legal counsel.

Mr. Horton outlined the key elements of the Memorandum of Understanding:

· The Town would retain ownership of the land and lease both sites to RAM Development Company for 99 years in exchange for prepaid rent.  The lease may be extended for an additional 25 years upon payment of additional fees between years 70 and 72 of the lease.

· RAM would prepay rent to the Town that would total $7.9 million.  Of this amount, $4.75 million would be for the lease of Parking Lot #5, and $3.15 million would be for lease of the Wallace Deck site.

· The Town would then invest the $7.9 million prepaid rent from RAM to pay for construction of the improvements to be owned by the Town.

· The Town would pay RAM $500,000 to support construction of parking spaces for 35 affordable housing units to be included in the development.

· The Town’s total development would be limited to $8.4 million, of which $7.9 million would come from RAM and $500,000 would come from Town funds, most likely from the Town’s parking funds or from affordable housing funds.  Any cost increases would be paid by RAM.

· The development of Parking Lot #5 would include 400 parking spaces, with at least 375 of these spaces located in an underground parking garage.  The garage would have 173 replacement spaces, 150 spaces leased for residential owners and retail tenants, and 35 spaces for affordable housing units.  Additional spaces constructed by the developer would be available for public use, and the revenues and costs for operation would be allocated proportionally to the Town and to the developer.

· Three building would be constructed on Parking Lot #5 and would include about 24,000 square feet of retail space on the ground level, and about 124 residential “for sale” units above the first level.

· There would be about 31,000 square feet of public space on Parking Lot #5 as shown on the developer’s original proposal.  The Town would manage that public space in the same manner as the existing space in front of the Post Office/Court Building.

· The development of the Wallace Deck would include about 6,000 square feet of retail space, and about 109 residential “for sale” units to be built on top of and beside the present Wallace Deck.

· The developer would lease up to 55 parking spaces at the Wallace Deck for residents and patrons of the project.

· Fifteen percent of the housing units would be affordable.

· The Council would have both approval rights and review rights.  The Council would have all of the normal regulatory approval rights that were provided in the Town’s Land Use Management Ordinance (LUMO), particularly through the Special Use Permit process.  In addition, the Town as owner of the property would have review rights of the schematic design drawings, the design development documents, the construction documents, and the budgets for the projects for the purpose of determining that they complied with architectural drawings previously approved by the Council.

· The buildings would meet LEED (Leadership in Energy and Environmental Design) certification requirements, and if feasible within the project budgets, the developer would obtain Silver certification.

· The project budget includes 1% for public art, consistent with the Council’s policy.

· The Town would be responsible for remediation of any environmental problems on the sites.  However, we do not expect any significant remediation costs based on the information known at this time.

Mr. Horton said he believed that this was a fair and workable agreement for the Town and for RAM Development Company, and was pleased to recommend it for the Council’s consideration.  He said if the Council chose to adopt the resolution, they would proceed to execute the Memorandum of Understanding and would begin the negotiations to prepare a Development Agreement and related leases.  Mr. Horton said based on the schedule as noted in the agreement, RAM would prepare a Concept Plan for consideration by the Council in mid-December, and would submit a Special Use Permit application by February 15, 2006.  Mr. Horton said that they expect construction might begin as early as March, 2007.

Mayor Foy commended the work of the Council Committee for the work they performed over the summer, and the rest of the Council for its engagement in working through this process.  He said he particularly wanted to thank Mr. Horton and Mr. Karpinos who had done an excellent job in getting the Council to this point, which was a significant point that they had reached this evening.

Janet Kagan, Chair of the Percent for Art Subcommittee of the Chapel Hill Public Arts Committee, said she was “thrilled” with the progress made by the Council in redeveloping the downtown.  She said over the past year they had collaborated with the Town and with RAM, and recently had narrowed the selection of a Lead Artist down to nine internationally recognized public artists.  Ms. Kagan reminded the Council that when chosen, the Lead Artist would become a member of RAM’s design team to identify not only multiple opportunities for public art, but also to help shape our experience of this enormous project.

Ms. Kagan said in order to achieve this goal, it would be necessary for RAM to recognize the relevance and significant contributions that the Lead Artist would make to the overall design of the project’s open spaces, building facades, streetscapes, alleys, as well as the psychological and ineffable dimensions and perceptions that accompany public space.  She said the Lead Artist would compliment the architectural design team that RAM had put in place.

Ms. Kagan said she was concerned that the rush to approve a Concept Plan by mid-December and submittal of a Special Use Permit application by February 15, 2006, that the overall design of this project would negate the role of the Lead Artist who would not be selected for another three weeks.  She asked that the Council encourage RAM to include the Lead Artist as an integral part of their design team process during these early stages of project refinement, because all of us would benefit from the artist’s expertise and vision.

David Godschalk, a professor emeritus in Planning as well as a former member of this Council, said he remained generally constructively skeptical about this project, noting he had specific concerns about the proposal.  He said as a planner who wanted to see the downtown turned around, he had several key issues, which were unresolved parking and traffic problems, perhaps overoptimistic cost assumptions, cavalier treatment of zoning requirements, and lack of a critical voice in the approval process.

Mr. Godschalk said despite the new construction downtown parking would remain “tight,” adding that few public spaces would be added.  He said the new residential units would have only one space each, and half of those living in the Wallace Deck condos would have to park two blocks away in the Lot #5 garage.  Mr. Godschalk said the development would add a lot of new traffic to Rosemary and Franklin Streets, but Rosemary Street would actually be narrowed to accommodate new retail space on the north face of the Wallace Deck.

Mr. Godschalk remarked that cost estimates for the underground parking do not appear to account for the recent spikes in steel and concrete costs.  He said that the per-space cost to the Town for the 375 underground parking spaces was about $21,000 and were only about a third of the estimated cost for underground parking on the UNC campus some two blocks away.  Mr. Godschalk asked what if the project failed due to cost overruns.

Mr. Godschalk commented that the 120-foot height of the tallest building on Parking Lot #5 would be 30 feet above the allowable height in the Town Center-2 zoning district.  He asked did no one believe that nine-story buildings were out of scale with the existing downtown streetscape.

Mr. Godschalk asked who was questioning the feasibility and community impacts of this project.  He said Town officials played conflicting roles of project advocates and project regulators, but the Council seemed reluctant to wear their regulator hats.  Mr. Godschalk said the Council’s meetings had focused on details like plaza paving, while no one raised questions about the bigger issues.  He asked was it too big, was the project getting special treatment, how would the Council respond to a private project request that exceeded the zoning height limit and increased the traffic substantially but narrowed the access street.

Mr. Godschalk stated that world wide there was an unwillingness to question optimistic project assumptions of public-private mega projects where political ambition to move ahead downplayed the risks of cost overruns, environmental impacts, and poor performance which then surface after project approval.  He said he was concerned that could happen here.

COUNCIL MEMBER VERKERK MOVED, SECONDED BY COUNCIL MEMBER KLEINSCHMIDT, ADOPTION OF RESOLUTION R-9.  THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

Item 7 – Appointments of Council Members to Inclusionary Zoning Task Force,

the Orange County Air Quality Advisory Council, and the

Orange County Transfer of Development Rights Task Force

Inclusionary Zoning Task Force

Mayor Foy recommended that Council Members Greene and Kleinschmidt be appointed to the Inclusionary Zoning Task Force.

COUNCIL MEMBER STROM MOVED, SECONDED BY COUNCIL MEMBER VERKERK, ADOPTION OF RESOLUTION R-10 WITH THE NAMES OF COUNCIL MEMBERS GREENE AND KLEINSCHMIDT INSERTED.  THE MOTION WAS ADOPTED UNANIMOUSLY   (9-0).

Orange County Air Quality Advisory Council

Mayor Foy recommended that Council Member Ward be appointed to the Orange County Air Quality Control Advisory Council.

COUNCIL MEMBER KLEINSCHMIDT MOVED, SECONDED BY MAYOR PRO TEM WIGGINS, ADOPTION OF RESOLUTION R-11 WITH THE NAME OF COUNCIL MEMBER KLEINSCHMIDT INSERTED. THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

Orange County Transfer of Development Rights Task Force

Mayor Foy recommended that Council Member Strom be appointed to the Orange County Transfer of Development Rights Task Force.

COUNCIL MEMBER VERKERK MOVED, SECONDED BY COUNCIL MEMBER KLEINSCHMIDT, ADOPTION OF RESOLUTION R-12 WITH THE NAME OF COUNCIL MEMBER STROM INSERTED.  THE MOTION WAS ADOPTED UNANIMOUSLY   (9-0).

Item 8 – Designation of Convener for the Town Pay Plan Committee

Mayor Foy recommended that Council Member Hill be appointed as Convener of the Town Pay Plan Committee.

COUNCIL MEMBER VERKERK MOVED, SECONDED BY MAYOR PRO TEM WIGGINS, ADOPTION OF RESOLUTION R-13 WITH THE NAME OF COUNCIL MEMBER HILL INSERTED.  THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

Council Member Harrison asked if a meeting had been scheduled for this Committee. Mayor Foy responded not as yet, but noted that the staff would work with the convener on that.

Item 9 – Appointments

9a.       Board of Adjustment.

The Council appointed Deborah Finn to the Board of Adjustment.

	Council Members
Board of Adjustment		Foy	Greene	Harrison	Hill	Kleinschmidt	Strom	Verkerk	Ward	Wiggins	TOTAL
Vote for two Applicants
Jennifer Bennett								X			1
Deborah Finn		X	X	X	X	X	X		X	X	8
Charles Rankin

9b.       Human Services Advisory Board.

The Council appointed Norman Fieleke to the Human Services Advisory Board.

	Council Members
Human Service Advisory Board		Foy	Greene	Harrison	Hill	Kleinschmidt	Strom	Verkerk	Ward	Wiggins	TOTAL
Vote for 1 applicant
Norman Fieleke		X	X	X	X	X	X	X	X	X	9

9c.       Orange County Air Quality Advisory Committee.

The Council appointed Leigh Hayes and Kenneth Hurst to the Orange County Air Quality Advisory Committee.

	Council Members
Orange County Air Quality Advisory Committee		Foy	Greene	Harrison	Hill	Kleinschmidt	Strom	Verkerk	Ward	Wiggins	TOTAL
Vote for 2 citizens-at-large
Leigh Hayes (also meet category below)		X		X	X		X	X	X	X	7
Kenneth Hurst		X	X	X	X	X	X	X	X	X	9
Vote for 1 Energy Industry Representative
Leigh Hayes (also meet category above)

9d.       Streetscape Master Plan Review Committee.

The Council appointed Pat Evans and Bernadette Keefe to the Streetscape Master Plan Review Committee by acclimation.

Item 10 – Petitions by the Mayor and Council Members

10a.     Council Member Ward regarding OWASA.

Council Member Ward said his petition followed up on comments made at a recent Council meeting regarding the possibility of revisiting all or portions of the Comprehensive Plan, to consider in greater detail, areas within the Town’s zoning jurisdiction where additional density may be appropriate.  He said as the Council moved forward with the Parking Lot #5 and Wallace Deck redevelopment project, and as we see additional private developments that were increasing density as well, we need to understand the effects of denser development on demand for water supply and wastewater treatment.

Council Member Ward said he did not believe the density changes considered by the Council to date would have a significant effect on either water supply or wastewater treatment capacity.  But, he said, as we advance the broader issue of increased density within our urban services boundary it was important that we schedule early and ongoing input from OWASA in order to ensure the adequacy of water and service activities for the long term.

Council Member Ward petitioned that the Council seek in a timely fashion a briefing from OWASA about projected capacities of water supply and wastewater treatment systems and the assumptions upon which their projections were based, along with discussion of the potential effects of allowing greater density within the Town’s zoning jurisdiction.

Mayor Foy asked how Council Member Ward envisioned that playing out.  He asked did he want OWASA invited to make a presentation at a business meeting, or did he want a work session with OWASA scheduled.  Mayor Foy also asked if OWASA should be given more than just the petition to work with.  Council Member Ward suggested that his petition be forwarded to them and that they discuss it with the Town Manager.  He said based on that, OWASA could then be placed on a regular meeting agenda and given perhaps thirty minutes to give the Council what their fifty-year horizon was now and what kinds of pinch points there were along that horizon, as well as how that might be changed by any added density that the Council might consider.

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

10b.     Council Member Strom regarding an Energy Forum.

Council Member Strom presented a petition in the form of a resolution for the Council’s consideration.  He read the resolution in its entirety:

The meeting was adjourned at 8:25 p.m.