SUMMARY MINUTES OF A BUSINESS MEETING
OF THE CHAPEL HILL TOWN COUNCIL
MONDAY, SEPTEMBER 11, 2006, AT 7:00 P.M.
Mayor Kevin Foy called the meeting to order at 7:00 p.m.
Council members present were Laurin Easthom, Sally Greene, Ed Harrison, Cam Hill, Mark Kleinschmidt, Bill Strom, Bill Thorpe, and Jim Ward.
Staff members present were Town Manager Roger Stancil, Deputy Town Manager Florentine Miller, Assistant Town Manager Bruce Heflin, Town Attorney Ralph Karpinos, Town Information Officer Catherine Lazorko, Planning Director J. B. Culpepper, Traffic Engineer Kumar Neppalli, Assistant Parks and Recreation Director Bill Webster, Senior Transportation Planner David Bonk, Fire Chief Dan Jones, Development Coordinator Gene Poveromo, Principal Long Range Planner Gordon Sutherland, and Town Clerk Sabrina Oliver.
Council Member Thorpe remarked that all Americans remembered what happened in the Country five years ago, and he wanted to ask for a moment of silence in remembrance of those who had died on that day. A moment of silence was observed.
Mayor Foy commented that tonight’s meeting was Roger Stancil’s first as the new Town Manager. The Mayor welcomed him on behalf of the Council.
Item 1 – Ceremonies
1a. Recognition of Board and Commission Members.
Mayor Foy commented on the importance of volunteers who serve on Town advisory boards and commissions and the work they do. He also encouraged citizens to show an interest in Town government by volunteering to serve and help shape Chapel Hill.
Mayor Foy noted that tonight the Town recognized the service of retiring advisory board and commission members. The Mayor presented each retiring member with a Certificate of Service.
Item 2 – Public
Hearings: None.
Item 3 – Petitions
3a(1). LIS Properties, LLC regarding an Easement for 600 Market Street in Southern Village.
Eric Hinson, an attorney representing LIS Properties, noted that the petition was self-explanatory and asked the Town to consider the request.
MAYOR PRO TEM STROM MOVED, SECONDED BY COUNCIL MEMBER WARD, TO REFER THE PETITION TO THE MANAGER. THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).
3a(2). Barry Jacobs regarding the Future Site of the Orange County Animal Shelter.
Pam Jones, Purchasing and Central Services Director for Orange County, stated they had requested expedited review for the Animal Shelter, which they hoped to relocate on Eubanks Road. She referred the Council to their written petition.
MAYOR PRO TEM STROM MOVED, SECONDED BY COUNCIL MEMBER WARD, TO REFER THE PETITION TO THE MANAGER. THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).
3a(3). Gimghoul Sidewalk Committee regarding Brick Sidewalks on Gimghoul Road.
Mayor Foy said the Council had received communication from the Committee regarding this issue, and there were two things to keep in mind – how this project was ranked in the ranking system and how many points it would get for its proximity to the University, traffic, and other considerations. Mayor Foy said secondly was the projected cost of the sidewalk and the projected cost of the other amenities that would be included in the project. He said he wanted that information included when this came back to the Council.
Mayor pro tem Strom said he did not know when the sidewalk capital list would come forward for discussion, but he wanted this petition included in that discussion when it came back to the Council.
Council Member Ward stated he wanted to be clear about what Town policies were in terms of what was explained to the neighborhood that abated many of their concerns.
COUNCIL MEMBER WARD MOVED, SECONDED BY MAYOR PRO TEM STROM, TO REFER THE PETITION TO THE MANAGER. THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).
3a(4). Richard Yost regarding No Parking Signs Change on Amesbury Drive.
MAYOR PRO TEM STROM MOVED, SECONDED BY COUNCIL MEMBER WARD, TO REFER THE PETITION TO THE MANAGER. THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).
3a(5). Rosemary Munger regarding Residential Parking Signs on McCauley Street.
MAYOR PRO TEM STROM MOVED, SECONDED BY COUNCIL MEMBER WARD, TO REFER THE PETITION TO THE MANAGER. THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).
3a(6). Bicycle and Pedestrian Advisory Board regarding World Car Free Day.
MAYOR PRO TEM STROM MOVED, SECONDED BY COUNCIL MEMBER WARD, TO SUPPORT CAR FREE DAY AND TO ENCOURAGE THE TOWN STAFF TO PLEDGE TO GO CAR FREE AND CAR LITE ON SEPTEMBER 22. THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).
Council Member Ward asked that the Manager use whatever means necessary to ensure that Town staff members were aware of World Car Free Day and that staff be encouraged to participate.
Mayor pro tem Strom commented that all public transit authorities in the Triangle were making their services free on September 22. He said TTA during the month of September was running the Smart Commute Challenge, and had gotten pledges from 7,000 people who had pledged for one day to use alternative means of transportation. Mayor pro tem Strom encouraged citizens to visit www.gotriangle.org to sign up.
3a(7). Sarah Bruce regarding Car Free Day Sponsorship.
Ms. Bruce with The Village Project and Local Car Free Day Coordinator noted that residents who pledge to go car free or at least car lite for September 22 would be entered into a drawing for prizes. She noted citizens could pledge on line at www.gocarfree.com. Ms. Bruce said they would be sponsoring an event on the lawn at Weaver Street Market, where the drawing for prizes would take place.
Ms. Bruce said they were requesting sponsorship from the Town to help offset expenses associated with the event.
MAYOR PRO TEM STROM MOVED, SECONDED BY COUNCIL MEMBER WARD, TO REFER THE PETITION TO THE MANAGER WITH INSTRUCTIONS TO MOVE FORWARD WITH A PERFORMANCE AGREEMENT WITH THE VILLAGE PROJECT FOR SPONSORSHIP OF CAR FREE DAY, NOT TO EXCEED $500. THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).
3a(8). Terri Buckner regarding Smith Level Road Task Force Creation.
Ms. Buckner stated that residents who lived on or just off of Smith Level Road were concerned about the volume of traffic, noting that Smith Level Road had become a favorite shortcut for large tractor trailers traveling between 15-501 and Highway 54. She said their petition requested that the Town Council participate in an intergovernmental Smith Level Road Task Force, similar to the successful Homestead Road Task Force, to identify proactive safety measures. Ms. Buckner noted that Carrboro had already agreed to participate.
Mayor pro tem Strom asked if Carrboro had committed staff time to this, and if they were asking for Town staff, citizens, or Council members to participate. Ms. Buckner stated she was unsure at this point, but that Carrboro staff would be contacting the Town regarding the formation of the Task Force. Mayor pro tem Strom said he was glad the residents were making this request, noting that Smith Level Road was a beautiful entranceway to the Town. He said he believed this should be a Carrboro task, and wanted to verify exactly what kind of participation was being requested before committing to it.
Council Member Ward said the Town had experienced success with such a task force with Homestead Road neighbors, and he believed that success was due in large part to the participation by Orange County, Carrboro, and Chapel Hill officials. He said the details needed to be worked out, noting this was predominately in Carrboro’s jurisdiction and they should take the staff lead on this.
MAYOR PRO TEM STROM MOVED, SECONDED BY COUNCIL MEMBER WARD, TO REFER THE PETITION TO THE MANAGER. THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).
3a(9). Ashaki Binta regarding Transportation Employee Barbara Gear.
Ashaki Binta, representing UE Local 150, noted that Barbara Gear had worked with the Transportation Department as a transit driver for over 23 years. She stated that Ms. Gear had vision in only one eye, and for some reason this year she failed to qualify to continue her duties as a driver. Ms. Binta said the Transit Department terminated Ms. Gear even though she had provided many years of service and loyalty to the Department and had received many commendations and safe driving awards.
Ms. Binta said that Ms. Gear would be eligible for retirement in a few years, and they had wanted Ms. Gear to be considered for some other position within the Town so that she would retain her eligibility for retirement. She said Ms. Gear was offered a position as housekeeper within the Transportation Department, a newly created position, which they were told, would have to be approved by the Town Council. Ms. Binta said they wanted to get a firm commitment from the Town that Ms. Gear would be able to retain her status as a Town employee and remain eligible to receive all of her benefits.
Ms. Binta asked the Town to resolve this in a fair manner, and to show Ms. Gear consideration as a long-term employee.
Mayor Foy said he believed the Council should refer this to the Manager and Attorney for direction on how to proceed. Town Attorney Ralph Karpinos agreed that the Council should not discuss this personnel manner at the time, and that it should be referred to staff for an evaluation.
Ms. Binta asked when the issue might come back to the Council. Mr. Karpinos said within a month. Ms. Binta said she had understood that Ms. Gear had started her new position today, and asked what would become of her earned benefits. Mr. Karpinos said this was matter between the Town and the employee, and was not a matter for the Council. He recommended that this be referred to the staff.
Mayor Foy said in such matters the Council had to listen to the counsel of the Attorney and make sure that it proceeds in a way to protect the Town’s and the employee’s interest. He said he did not believe the Council could intervene at this time in a positive way, since they needed to get legal advice and all of the facts. He advised Ms. Binta to continue to work with the staff, document what was happening, and wait until the issue came back before the Council.
Council Member Thorpe said since Ms. Gear had already begun to work at her new position, her benefits should be protected until this matter was resolved.
Council Member Kleinschmidt said he wanted to know about the creation of the new position within the Transportation Department, since that would ordinarily be done during the budget process. He said it seemed to him that this was a peculiar set of circumstances, since the employee had suffered from a disability for a long period of time and apparently functioned well, but was then deemed not to be fit to continue in her job. Council Member Kleinschmidt asked why the Town’s response was to place her in a lower paying job. He said he found that dissatisfying and it did not seem appropriate.
Council Member Kleinschmidt said he understood that retirement benefits were based on the last few years of employment. If that was the case then that could be a potential disaster for someone who had worked so many years for the Town, he said. Council Member Kleinschmidt requested a response from the staff on that concern.
Council Member Kleinschmidt said even if this case was one that fell outside the Council’s purview, he wanted to know what those policies were and what part the Council had in developing those policies and affecting them. He said the circumstances as they appeared suggested that this was not the type of work environment that he wanted any part in overseeing.
MAYOR PRO TEM STROM MOVED, SECONDED BY COUNCIL MEMBER WARD, TO REFER THIS MATTER TO THE MANAGER. THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).
Council Member Harrison announced that he had attended the graduation of the first fire academy and that he enjoyed the event. He noted that the Fire Department would be fully staffed once the six approved positions were filled.
Item 4 – Consent Agenda
Council Member Ward pulled Item #4j, Expedited Review of SUP for NC Botanical Garden Visitor Education Center, to allow him the opportunity to be recused from consideration of this issue due to his employment with the Botanical Garden.
Council Member Thorpe pulled Item #4e, Resolution Authorizing Requests for Proposal from Banks for Financing Southern Community Park and Aquatics Center.
COUNCIL MEMBER WARD MOVED, SECONDED BY COUNCIL MEMBER GREENE, ADOPTION OF RESOLUTION R-1, AMENDED TO REMOVE ITEM #4e and #4j. THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).
Mayor Foy noted that Council Member Ward had requested that he be recused from consideration of this item due to his employment with the NC Botanical Garden. The Council agreed by consensus to recuse Council Member Ward.
COUNCIL MEMBER KLEINSCHMIDT MOVED, SECONDED BY MAYOR PRO TEM STROM, ADOPTION OF RESOLUTION R-9. THE MOTION WAS ADOPTED UNANIMOUSLY (8-0).
Item #4e: Resolution Authorizing Requests for Proposal from Banks for Financing Southern Community Park and Aquatics Center.
Council Member Thorpe remarked that he had questions concerning the RFP. Mr. Stancil noted that adoption of the resolution would authorize the Manager to seek proposals for financing for a portion of the planned Southern Community Park and a portion of the planned Aquatics Center. He said the financing approval would then come back to the Council for approval.
Mayor Foy said then this would allow the Town to seek proposals for funding, but not to approve the funding. Mr. Stancil said that was correct.
COUNCIL MEMBER THORPE MOVED, SECONDED BY MAYOR PRO TEM STROM, ADOPTION OF RESOLUTION R-4. THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).
Item 5 – Information Reports
Council Member Kleinschmidt pulled Item #5h, Response to Request from Radio Station WCOM regarding Rent Relief.
Council Member Harrison pulled item #5g, Response to Request for Funds for Bicycle Loan Program.
Mayor pro tem Strom asked to make a comment regarding Item #5b, Quarterly Report on Council Goals.
Council Member Easthom pulled items #5d, Annual Report from Orange County Solid Waste Advisory Board, and Item #5f, Time Warner Cable Customer Survey 2006.
5a. Annual Report. Accepted as presented.
5b. Quarterly Report on Council Goals.
Mayor pro tem Strom stated that Goal #23, regarded street vendors, was a good idea and would enhance street life at particular times. Mayor pro tem Strom requested that Mayor Foy, as the Council’s representative to the Chapel Hill Downtown Partnership, bring this up to the Partnership Board and get some focus on what the Partnership might do to help the Council meet its goal to activate street vendors in the downtown.
Mayor Foy said he would be happy to do that, and to report back to the Council.
5c. Orange Water and Sewer Authority Annual Report. Accepted as presented.
5d. Annual Report from Orange County Solid Waste Advisory Board.
Council Member Easthom said she wanted more detail about the recycling program in Town, particularly curbside cardboard pickup and mixed paper.
Mayor pro tem Strom said he and Public Works Director Bill Letteri served on a work group that was developing recommendations for long-term management of solid waste. He said that work group had received a report from a consultant addressing all forms of recycling and they were in the process of analyzing that. He said the work group hoped to have recommendations ready by the end of the year. Mayor pro tem Strom said he would bring information back to the Council at that time regarding Pay as You Throw, pickup of mixed paper at curbside, and other issues.
Mayor Foy said the Council had been trying to encourage waste reduction, which could take many forms, but one way to do that was to increase recycling. He said the County’s problem with that was that they did not have the capacity for the recycling, so the County was saying that if Chapel Hill increased recycling it would cause a serious problem for them. Mayor Foy said the County operated the landfill, and the longer the Town could keep the landfill operating then the lower the capital expenditures that would be needed to replace it. He said the point was that the work Mayor pro tem Strom and others were doing would provide the Town with options, but not with solutions.
Mayor pro tem Strom agreed, noting there was no simple approach and there would be a cost associated with each option. He said that reducing waste to the landfill reduced the fees the landfill received, but he did think that the County and the work group had been responsive to concerns and interests of the Town.
Council Member Greene asked if there was some hope for styrofoam recycling. Mayor pro tem Strom responded that he had not yet seen the consultant’s full report, but that would be discussed. He said their primary interest was in Pay as You Throw, having carts that made recycling just as easy as wheeling your trash to the curb, and they had a stated preference to avoid a materials recovery facility (MRF) being created in Orange County.
Council Member Kleinschmidt asked if the report would be available by the end of this calendar year. Mayor pro tem Strom responded that the draft report was available now, and he would see that the Council received an electronic copy.
Council Member Ward said the recycling opportunities were critically important to the direction in which Chapel Hill wished to go. He said the landfill was scheduled to be closed in 2010, and the Solid Waste Advisory Board (SWAB) had maintained a consensus view that Orange County should remain responsible for the solid waste generated within the County. Council Member Ward said how they do that would be extremely difficult, but they needed to deal with it. He said this would become a heightened issue as they get closer to 2010, and they needed everyone’s best effort to resolve this.
Mayor pro tem Strom said the SWAB was not the body he served on, and if that was the SWAB’s position then they were advocating for siting a new landfill within the County. Council Member Ward said that was correct. He said the Town needed to understand the full impacts and costs of each alternative considered.
5e. Orange Community Housing and Land Trust Quarterly Report.
Accepted as presented.
5f. Time Warner Cable Customer Survey 2006.
Council Member Easthom highlighted several aspects of the report. She encouraged Time Warner Cable to perform better than it had in the past. Council Member Easthom cited several of the statistics contained in the survey, noting she would like to see the ratings higher in the category of appointments arranged at convenient times and service performed properly the first time. Council Member Easthom said she believed that Time Warner could improve those statistics.
Council Member Kleinschmidt remarked that he could not imagine anyone rating service better than “poor” when Time Warner removed services from basic packages and then expect you to purchase an additional package to receive that service. He said the Town was destined to receive even poorer service, citing the recent legislative gains that he believed had emboldened the cable providers.
Mayor Foy said it was important to understand that his conversation was due to the fact that the Council had received a report from Time Warner Cable, but the Town had no regulatory control over Time Warner.
5g. Response to Request for Funds for Bicycle Loan Program.
Council Member Harrison said that Allison Carpenter and Chris Richmond wanted to speak on this item, and that he would like the Council to consider adoption of the resolution.
Alison Carpenter, representing Students United for a Responsible Global Environment (SURGE), distributed information that contained a budget. She stated that the bicycle loan program, called BUB (Blue Urban Bikes), had experienced a successful start.
Chris Richmond, representing ReCYCLEry, stated that the Council had earlier voiced concern regarding liability insurance, which they had addressed.
Ms. Carpenter said they were seeking support from communities and businesses, and were working with the Chamber of Commerce to build alliances.
COUNCIL MEMBER HARRISON MOVED, SECONDED BY MAYOR PRO TEM STROM, ADOPTION OF RESOLUTION R-11. THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).
5h. Response to Request from Radio Station WCOM regarding Rent Relief.
Council Member Kleinschmidt said we had originally received the petition in the spring, and he had communicated to David Beck, the petitioner, that he was willing to advocate for adoption of the resolution with an alternative sum per month. He said he understood the staff’s position was to maintain the $100 per month fee for use of the tower. Council Member Kleinschmidt said he wanted to suggest reducing that amount to $25.
COUNCIL MEMBER KLEINSCHMIDT MOVED TO ADOPT RESOLUTION R-12, AMENDED TO REDUCE THE RENT TO $25 PER MONTH.
MAYOR PRO TEM STROM OFFERED A FRIENDLY AMENDMENT THAT THE COST SAVINGS TO WCOM BE USED TO IMPROVE THEIR SIGNAL TO SERVE ALL OF CHAPEL HILL, SECONDED BY COUNCIL MEMBER GREENE. COUNCIL MEMBER KLEINSCHMIDT ACCEPTED THE FRIENDLY AMENDMENT. THE AMENDED MOTION WAS ADOPTED UNANIMOUSLY (9-0).
Mayor Foy confirmed that this reduced rent would remain in effect until the current contract expired, at which time it would be renegotiated. Council Member Kleinschmidt said he believed the contract ran through May of 2007.
Item 6 – Presentation by Orange Water and Sewer Authority
Mac Clarke, Chair of the OWASA Board of Directors, provided highlights on three items from the Annual Report: the rate study, the wastewater treatment plant and odor control, and biosolids. He stated they were currently conducting a rate study, the first conducted since 1998. Mr. Clarke stated it was important to conduct such a review every five to ten years for a variety of reasons. He noted that the Board would carefully consider alternative water conservation rates, and would carefully review short- and long-term financial strategy to ensure OWASA remained fiscally strong.
Mr. Clarke said regarding the upgrade and expansion of the Mason Farm Wastewater Treatment Plant, three improvements had been completed:
Mr. Clarke noted that their $50 million capital improvement project was expected to be completed by the summer of 2007, and would include a new “covered” headworks facility, and a significant odor control improvement. Peak month treatment capacity would be increased form 12.0 to 14.5 million gallons per day, he said.
Regarding biosolids, Mr. Clark noted the following:
In the area of water conservation and demand management, Mr. Clarke stated that they had a water supply advisory from April through July of this year. He said that the reclaimed water supply system with the University was currently under design and was projected to be operational by the end of 2008. Mr. Clark stated that this would be the single largest factor in their conservation efforts. He noted that OWASA staff was providing technical assistance to Carrboro, Chapel Hill and the County in promoting increased water efficiency for existing and new developments. Mr. Clarke noted that OWASA’s goal was to maximize their use of local resources, that being University Lake, Cane Creek and Stone Quarry Reservoirs.
Mayor Foy said Mr. Clarke had mentioned that in part because of conservation, revenues were not moving in an upward slope as much as they had hoped, so they would need to consider options for debt financing. He asked what were the potential options. Mr. Clarke said that OWASA’s debt coverage ratio was currently 1.4, with the legal minimum being 1.2, so they were not in a hazardous position regarding debt. But, he said, if you looked back several years, OWASA’s debt coverage ratio was around 2.0. Mr. Clarke said they wanted to target a ratio of 2.0, and there were several options to do that. He said they had been working to restrain operation expenses, and capital expenditures must remain prudent. Mr. Clarke said another alternative was rate increases, and that would be looked at closely because it was a sensitive area.
Mayor pro tem Strom said he would rather see OWASA move aggressively towards instituting inverted block rates, which had large consumers paying more, rather than pursuing a rate hike. He said, looking at the OWASA budget, there were $30 million in capital projects noted but only $20 million that went forward. Mr. Clarke noted that about $10 in projects had been delayed, but nothing had been removed from the projects list.
Mayor pro tem Strom stated that several years ago OWASA had provided some information about a small number of high volume users who were using a disproportionate amount of water. He asked if OWASA had contacted those people to ask them to conserve. Mr. Clarke said not to his knowledge. But, he said, it was important to note that if the Town had proceeded on its former course of water usage, it would be using 20 percent more than it actually was using now. Mr. Clarke said the community had responded to the need to conserve water. He said the downside to that was if you sold less water, your revenues were less.
Mr. Clarke said he believed that inverted block rates would be a likely outcome of the rate study. But, he said, they had not yet reached the stage of how the rate should be structured. Mr. Clarke said their goal of restoring their debt coverage ratio related to how much money they needed to take in without regard on how they did that.
Mayor pro tem Strom said he believed that OWASA did a remarkable job, and was a utility that the Town and other constituent governments could be proud of.
Council Member Ward asked, regarding the 20 percent decrease in water usage, what the value of that was in terms of the forecast of needing to increase water capacity, which now needed to be readjusted because the Town was not growing as quickly. Mr. Clarke said that was related directly to the reclaimed water project for the University. He stated that their investment program called for a further expansion of the wastewater treatment system that had now been moved back several years and which had a significant effect on the cost of the operation.
Council Member Ward asked, since conservation did save customers money in the long run, did Mr. Clarke see providing any financial incentives to customers in terms of purchasing more water-efficient appliances or other methods of conservation. Mr. Clarke replied that the study to which he had referred would help identify those kinds of methods, which in some cases might require that OWASA come before the Council for their help with building codes, for example. He stated that might also mean giving incentives to convince people to install more efficient toilets, since that was the biggest single domestic use of water.
Item 7 – Castalia at Meadowmont: Master Land Use Plan Modification Application
and
Item 8 – Castalia at Meadowmont: Application for a Special Use Permit Modification
Planning Director J. B. Culpepper provided a brief overview of the process. She said because the two applications were linked, staff was recommending that both applications be discussed simultaneously.
Community Development Coordinator Gene Poveromo exhibited a detailed area map and pointed out the location of the proposed development. He said the Master Land Use Plan Modification proposed to add 11 dwelling units, increase floor area by 24,000 square feet, and eliminate retail use that was permitted by the Master Land Use Plan at a site located on the west side of Barbee Chapel Road. Mr. Poveromo said the staff recommendation was for adoption of Resolution A, approving the Master Land Use Plan application.
Mr. Poveromo said the second request was for a Special Use Permit that proposed to construct a 76,000 square-foot, mixed-use building including 52,000 square feet of office floor area and 11 residential units with 24,000 square feet of floor area. He said the proposal included a three-story building with 177 parking spaces, including 17 garage spaces. Mr. Poveromo said two points of access along West Barbee Chapel Road were proposed.
Mr. Poveromo said a key discussion issue from the June 19 public hearing was the affordable housing component. He stated that the developers had informed the Council at that public hearing that the information they had submitted to staff regarding providing affordable housing on site was incorrect. At that public hearing, Mr. Poveromo said, the staff recommendation was for a payment-in-lieu. He stated that Council discussed options for affordable housing, with the focus on on-site units and payment-in-lieu.
Mr. Poveromo said with respect to units on site, the Town’s discussions with Robert Dowling, executive director of Orange Community Housing and Land Trust, indicated that it was difficult to find tenants for such units. He said page 36 of the Council’s packet contained information from Mr. Dowling regarding that. Mr. Poveromo said they also understood that there were issues that complicated the long-term viability of owner-occupied units.
Mr. Poveromo said the staff continued to recommend the payment-in-lieu option. He noted that page 34 of the Council’s materials contained a description of that proposed payment-in-lieu option. Mr. Poveromo said the applicant had found that proposal acceptable. He said associated with that proposal was a reduction in the number of residential units from 11 to 10. Mr. Poveromo stated that alternate options for payment-in-lieu were provided on pages 35 and 37.
Mr. Poveromo stated that Resolution A contained a stipulation for a payment-in-lieu of $112,000 and 10 residential units. He said that the staff recommended adoption of Resolution A.
Jim Baker, developer of Castalia, agreed with the stipulations in Resolution A, and urged the Council to adopt it.
Robert Dowling, Executive Director of Orange Community Housing and Land Trust, stated he understood the Council’s preference to provide affordable housing on site, but they had not yet discovered a way to make such condominium units affordable. He said they had six units in Greenway that needed to be made affordable, and the payment-in-lieu option would assist with that.
Mayor Foy stated that the Town’s policy was 15 percent of residential units had to be affordable, so for this development that would mean since they were proposing 10 units the number would be 1.5 but they would have to make two units affordable because it was rounded up. He asked since that was the case, why did the Town ask for payment-in-lieu of 1.5 units rather than for two units. Mr. Karpinos responded that in the past a payment-in-lieu was based on the specific percentage, and not rounded as would be necessary for actual housing units. He said the same would be true if the percentage were 1.4 or 1.6, in that it would not be rounded but would remain specific.
Mayor Foy said that would appear to be an incentive for developers to request a payment-in-lieu. Mr. Karpinos responded it was a question of whether or not the Council was willing to accept such a payment. He said if it were a situation where the Council would prefer to have the housing on site, then the percentage would be rounded up.
Mayor Foy said he could accept the concept of the payment-in-lieu in this instance, but he would prefer to have the two units rather than the $112,000. He said it was more reasonable to him to have either two units or payment-in-lieu of two units.
Council Member Greene said she understood his concern, but she did not believe they could do that now because of past policy and practice. She said as convener of the Inclusionary Zoning Task Force, she knew that the Task Force was leaning towards a solution where if the number were 1.5, then the applicant would provide one unit and the .5 in dollars as a payment-in-lieu.
Mayor Foy said the Town did have the option of requiring the two units rather than accepting payment-in-lieu for only 1.5 units.
Council Member Greene said that she understood Mr. Dowling’s rationale and was willing to accept it.
Council Member Easthom said she too was satisfied with a payment-in-lieu in this particular case. She asked Mr. Dowling why in this case it would be difficult to find tenants. Mr. Dowling replied it would be two small units in an office building with luxury units located on the top floor. He said they did not yet know what the homeowners’ association dues would be, nor did they know what the actual pricing would be of the units. Mr. Dowling said he could estimate a price that would make the units initially affordable, but the problem with condominiums was that over time those dues plus special assessments made the units no longer affordable. He said they did not know how to insulate the affordable homeowner from those increased costs. Mr. Dowling added that these two units would be small one-bedroom units and that getting these two units would only exacerbate that problem.
Mayor pro tem Strom said, on balance it was more difficult to get units built from the private sector than it was to come up with a method to keep them affordable. He said the Inclusionary Zoning Task Force was working on this, and there was a revolving acquisition fund that would give the Town flexibility. Mayor pro tem Strom said he was willing to ask the applicant to build the units and to make a commitment to subsidize those condo fees out of the revolving acquisition fund until a policy was in place. He said the cost of building units was prohibitive, and if the Town had to subsidize those condo fees for a while, it was worth it to get the units into the Land Trust. Mayor pro tem Strom said he agreed with Mayor Foy that the payment at $112,000 was not a fair payment.
Council Member Ward said he agreed with the need for the two units, and agreed with Mayor pro tem Strom’s assessment of the difficult of getting things built versus finding the money to assist the Land Trust or some other agency to make them affordable over the long term. He said he also preferred that if they accepted a payment-in-lieu that it be treated in the same way as the requirement for the number of units. Council Member Ward said if the payment-in-lieu option were chosen, he believed it should be made for two units rather than 1.5 units.
Council Member Kleinschmidt said the Town needed to keep in mind that the Land Trust was providing the community with units elsewhere that were not necessarily connected to private developers, such as those in Northside, and they needed funds for that. He said this circumstance appeared to him to be more appropriate for a payment-in-lieu.
Mayor Foy asked if the applicant was willing to make a payment-in-lieu of $150,000 so that the option could be on the table for consideration. Mr. Baker said he would have to go back and look at the economics of that. He said there were a number of pieces that had been added onto the project, one of which was a retention basin, which had added $350,000 to the cost of the project. Mr. Baker said, with the addition of $150,000 for affordable housing, he did not know if the project would remain economically feasible.
Mr. Baker said he had talked at length with Mr. Dowling regarding this, and based on past practices by the Town believed that the payment-in-lieu of $112,000 was something that they could make happen. He said he did not know if the $150,000 would be feasible.
Council Member Kleinschmidt said based on that rationale, then two affordable units would be out of the question. Mr. Baker said that was incorrect. He said if they built the two units, they would be very small, probably around 600 to 800 square feet.
Council Member Kleinschmidt said if you built a total of 1,500 square feet for both units, they would do that instead of paying an extra $35,000 to compensate for the two units. Mr. Baker said it depended on how you looked at it. He said right now they were stretched, and his fear was that if they went into this project stretched that tight and something unexpected happened, then he would be in an untenable position.
Council Member Kleinschmidt said Mr. Baker was saying that two 600-square-foot units would not break him, but providing a payment-in-lieu of $150,000 would. He said he found that to be incredulous. Mr. Baker replied that he would have to go back and look at the economics before commenting on that. He said that through their discussions with Mr. Dowling, they preferred the payment-in-lieu option for a number of reasons. He said uppermost in their minds was that even if the units were provided, they could not ensure that they would remain affordable.
Mr. Baker noted that since 2001, the average payment-in-lieu per unit was $34,000, and he wondered why they were being discriminated against in this instance. Council Member Kleinschmidt stated that was a good point.
Mayor Foy asked if the Council were to follow through with approval this evening, would it be preferable to have two units, a payment-in-lieu of $150,000, or not do it at all. Mr. Baker responded he would prefer the opportunity to look at the economics of this before moving forward.
Council Member Greene said if the Council were willing to subsidize potential increases in condo fees in perpetuity, then she would be in favor of having the units built. Mr. Karpinos said he did not believe the Council was in a position to decide that tonight, noting it was a complicated issue.
Council Member Easthom asked Mr. Dowling to describe his experience in reselling Land Trust homes, and in this case the difficultly that might exist in reselling the units. Mr. Dowling responded that they did experience difficulty because not all homes were equally desirable to prospective buyers. He said these units would be located in an office building, not in a neighborhood. Mr. Dowling said the initial selling price might be desirable, but once the units went on to a second buyer the dues may place them out of reach.
Council Member Kleinschmidt said he had been thinking about the changes in use, and one thing he found was that the justification for the change in parking was vehicle trips. He said initially he had thought that was good, but he now wondered about the applicability of that to this plan, noting this was a dense area designed to be pedestrian oriented. Council Member Kleinschmidt said using that as justification gave him pause. He said in this particular context, he was not sure that was appropriate justification to make the necessary finding. Mr. Baker said it was very clear to him that the strongest concern was traffic. He said what they were proposing by adding residential was their ability to decrease retail space and thereby reducing vehicle trips.
Council Member Kleinschmidt said this was a compact community, and retail was needed and necessary to maintain that theme. He said the elimination of vehicle trips in this particular instance might not be desirable, since this community operated differently. Mr. Baker said the question would be if retail were included, would the traffic come from inside the community or outside.
Mayor pro tem Strom said it appeared the applicant might need more time to consider the financial aspects. He asked when this might be rescheduled on the Council’s agenda. Ms. Culpepper responded she believed it could be placed on the Council’s October 9 agenda.
Mr. Baker said one issue was that the anchor tenant was pressed for time, and any delay later than October 9 might be important to the viability of the project.
Mayor Foy said he believed this issue could be resolved now if the applicant were willing to accept the condition of $150,000 as a payment-in-lieu of affordable housing. Mr. Baker reiterated that he could not do that until he had an opportunity to study the financial aspects.
MAYOR PRO TEM STROM MOVED, SECONDED BY COUNCIL MEMBER GREENE, TO RECESS THE HEARINGS ON BOTH THE LAND USE PLAN MODIFICATION AND THE SPECIAL USE PERMIT APPLICATION TO OCTOBER 9. THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).
Item 9 – Land Use Management Ordinance Test Amendment: Changeable
or Movable Signs Outside of the Town Center Zoning Districts
Ms. Culpepper said this was a continuation of the June 19 public hearing regarding a petition from business owners along East Franklin Street to allow changeable or moveable signs in other areas of the Town in a similar manner allowed for businesses in the downtown’s Town Center zoning districts. She said the staff had identified three options for the Council’s consideration:
· Enactment of the petitioners’ request to expand sandwich board use to other commercial areas (Ordinance B).
· Planning Board’s recommendation (Ordinance A) to expand sandwich board use to commercial areas with sidewalks on both sides of the road and speed limits no greater than 25 mph.
· Make no changes – keep the regulations the same.
Ms. Culpepper stated the staff recommendation was to make no change. She noted their concern centered on the potential for clutter and could detract form public safety objectives. Ms. Culpepper said if the Council did choose to take action, then the staff would recommend the Planning Board’s ordinance which was Ordinance A.
Mayor Foy said he saw no imperative to change the rules, so would like to take no action.
Council Member Greene said she believed that the Planning Board’s recommendation was reasonable, except she would raise the speed limit to 35 mph. She said the original request came from businesses along East Franklin Street, where the speed limit was 35 mph. In addition, she said, to have the signs displayed only during business hours and only one per business did not seem onerous to her.
Council Member Kleinschmidt said he did not see the harm in Council Member Greene’s suggestion.
Mayor pro tem Strom asked the Attorney if this could be done for a period of time to see if there were any resulting problems. Mr. Karpinos said a sunset clause could be added or the Council could agree to have it come back for reconsideration at a later time, which would require a public hearing process. Mayor pro tem Strom said he was not sure they knew exactly what the result would be of this change.
Council Member Hill said he believed, given what the Attorney just said, they should enact the ordinance and if there was some resulting problem, then it could be rescinded.
COUNCIL MEMBER GREENE MOVED, SECONDED BY COUNCIL MEMBER HILL, ENACTMENT OF ORDINANCE O-4a, AMENDED TO INCREASE THE SPEED LIMIT TO 35 MPH. THE MOTION WAS ADOPTED 8-1, WITH MAYOR FOY VOTING NAY.
Item 10 – Composition of the Long Range Transportation Plan Committee
Mayor Foy commented that in June the Council had approved the proposed request for qualifications and related scope of work, and the next step was to establish the Transit Study Committee to select a consultant and oversee the preparation of the Long Range Transit Plan. He said they had to study all corridors objectively in order to determine a number of factors, noting this would not be a policy-making group but a technical one.
Mayor Foy said if the University had one vote on this steering committee and the towns had one unified vote and you needed two votes to go forward, then essentially you would have to have agreement between all three transit partners to do anything.
Mayor Foy said the University had agreed to this, but he did not know where Carrboro stood on it. He said this study was scheduled to be completed within eight months.
MAYOR PRO TEM STROM MOVED, SECONDED BY COUNCIL MEMBER WARD, ADOPTION OF RESOLUTION R-15a.
COUNCIL MEMBER WARD OFFERED A FRIENDLY AMENDMENT TO INCLUDE THE WORD “UNDIVIDABLE” IN THE FIRST “BE IT RESOLVED” PARAGRAPH AFTER THE WORD “ONE” AT THE END OF THE SENTENCE. MAYOR PRO TEM STROM ACCEPTED THE FRIENDLY AMENDMENT.
THE AMENDED MOTION WAS ADOPTED UNANIMOUSLY (9-0).
COUNCIL MEMBER HILL MOVED, SECONDED BY COUNCIL MEMBER WARD, ADOPTION OF RESOLUTION R-15b WITH MAYOR FOY AND COUNCIL MEMBERS WARD, STROM AND HARRISON APPOINTED TO THE COMMITTEE. THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).
Item 11 – Council Calendar for 2006-2007
MAYOR PRO TEM STROM MOVED, SECONDED BY COUNCIL MEMBER WARD, ADOPTION OF RESOLUTION R-16. THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).
Item 12 – Appointments
12a. Community Design Commission.
The Council appointed Kathyn James and Scott Nilsen to the Community Design Commission.
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Council Members |
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Community Design Commission |
Foy |
Easthom |
Greene |
Harrison |
Hill |
Kleinschmidt |
Strom |
Thorpe |
Ward |
TOTAL |
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Vote for 2 Applicants |
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Kathryn James |
X |
X |
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X |
X |
X |
X |
X |
7 |
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David Johnson |
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X |
X |
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2 |
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Scott Nilsen |
X |
X |
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X |
X |
X |
X |
X |
X |
8 |
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Mary Wolff |
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Other; please list: |
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12b. Historic District Commission.
The Council appointed Benjamin Brody, Tim Madigan, and Elizabeth Preddy to the Historic District Commission.
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Council Members |
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Historic District Commission |
Foy |
Easthom |
Greene |
Harrison |
Hill |
Kleinschmidt |
Strom |
Thorpe |
Ward |
TOTAL |
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Vote For 4 Applicants |
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Pam Bordsen |
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Alan Curtis |
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X |
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X |
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2 |
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Bill Green |
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X |
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2 |
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Lennart Holmquist |
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Mary Ann Kasarda |
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Jennifer Koach |
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X |
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1 |
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Tim Madigan |
X |
X |
X |
X |
X |
X |
X |
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X |
8 |
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Elizabeth Preddy |
X |
X |
X |
X |
X |
X |
X |
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X |
8 |
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Matthew Scheer |
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1 |
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Other; please list: Benjamin Brodey |
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X |
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X |
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X |
X |
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6 |
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Item 13 – Petitions
13a. Mayor Foy regarding the Guro District in the Republic of Korea.
Mayor Foy stated that officials in the Guro District of Seoul, Korea had inquired about forming a relationship. He suggested that this be referred to the staff and brought back at the next meeting.
MAYOR PRO TEM STROM MOVED, SECONDED BY COUNCIL MEMBER KLEINSCHMIDT, TO RECEIVE AND REFER THE PETITION TO THE MANAGER. THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).
Mayor pro tem Strom noted he was the Town’s representation to the JOCCA Board of Directors, and the meetings had been conflicting with the Leadership Advisory Council meetings. He offered his seat on the JOCCA Board to any interested Council member.
Mayor Foy asked anyone interested to contact him or Mayor pro tem Strom.
Item 14 – Discussion of Consent Agenda Items - None
Item #4g. Acceptance of Fiscal Year 2006-2007 Alcohol Beverage Control Bond Funds.
Council Member Thorpe commented on the $8,000 in ABC funds received and the Police Department programs they funded. He commended the Police Department for pursuing these funds.
Item 15 – Request for Closed Session
COUNCIL MEMBER GREENE MOVED, SECONDED BY MAYOR PRO TEM STROM, TO ENTER INTO CLOSED SESSION AS AUTHORIZED BY NC GENERAL STATUTE SECTION 143-318.11(a)(6) TO CONSIDER MATTERS RELATED TO THE PERFORMANCE OF INDIVIDUAL PUBLIC EMPLOYEES. THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).
The meeting was adjourned at 9:06 p.m.