Work Session Minutes of the Town of Cary , North Carolina
Subject: Proposed FY2005 Capital Budget
May 12, 2004
Location: Building A Front Conference Room
Time: 4:35

Council Members Present: Mayor Ernest McAlister, Mayor Pro Tem Jack Smith, Council Members Marla Dorrel, Michael Joyce, Jennifer Robinson, Julie Robison and Nels Roseland

The purpose of the work session is to provide Council with information regarding the overall revenue picture, to review the recommended budget, and to identify goals for the Town. The proposed budget is attached to and incorporated in these minutes as Exhibit A.

Town Manager Bill Coleman stated that the capital budget is developed prior to the operating budget because many of the projects approved by the Council have operating budget impacts. He said that the resulting budget for capital projects is 51% lower than in the previous years and the projects recommended will serve the goal of completing projects already in progress.

Mr. Coleman provided the Council with a brief overview of each project.

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Mr. Coleman said that the Cary High School pedestrian improvements are recommended as a result of a study done by the North Carolina Department of Transportation identifying safety improvements needed around the school. Tim Bailey, of the Engineering Department, added that the Town is responsible for one-third of the cost and the rest will be covered by the state. Mr. Bailey said that the Town has approved an agreement with the state to begin the work, which should be completed before school starts in August.

Mr. Coleman stated that the Maynard Road widening project is the last part of the Maynard Road loop to be expanded to a four lane section, and if it is not done in FY05 it will be difficult to complete in the future. Mr. Bailey added that the Town has already invested $1 million in the project.

Mrs. Robinson asked if the amount suggested will finalize the project. Mr. Bailey responded yes, stating that most of the recommended $1.1 million funding is for the stream restoration that is required.

Ms. Dorrel asked staff to explain what is meant by untouchable and committed. Mr. Bailey stated that untouchable is for priority projects that are well underway which would have a significant negative impact on the Town if not completed. He said that items placed on the committed list are projects for which the Town has made some form of commitment.

Mrs. Robinson asked if the road widening will have a significant benefit on traffic congestion throughout that part of Cary and whether it would off-load congestion elsewhere. Mr. Bailey replied that it should have little impact on traffic going through the core of Town. He said that adding through lanes will help with the Kildaire and Maynard intersection congestion; however, the bigger benefit will be allowing traffic to flow more freely and resolving site distance issues along the corridor.

Mrs. Robinson asked how much has been spent on the project to date. Mr. Bailey answered that the total amount is $6 million, and there are approximately $200,000 in invoices from the consultants yet to be paid.

Mrs. Robinson asked if it was possible to achieve the goals for the road widening and still be able to save a significant amount of funds. Mr. Bailey responded that, in addition to required mitigation for any changes in the impervious area currently exempt, a stream crossing permit is needed.

Mr. Coleman stated that the Morrisville Parkway Extension Phase 3 is a major roadway to serve the western growth area. Mr. Bailey added that the critical part of the project is working with the Western Wake expressway where the road must be built in advance or the corridor will not be bridged, terminating the thoroughfare. The road has to be built by the year 2006 in order for the bridge to be built at essentially no cost to the Town.

Mrs. Robinson asked if the $8 million in FY09 reflects an entrance ramp onto I-540. Mr. Bailey said one phase is a commitment to link under the roadway and build a road to and through I-540 from one direction; this next phase will go from I-540 and continue across 55 with a potential to include rail grade section.

Mrs. Robinson asked if the Morrisville Parkway project has been completely funded. Mr. Bailey responded that the only sections not funded are west of Green Level to Durham Road and along Greenhope Church Road .

Mr. Coleman said that the funding also includes maintenance projects. He said that the Town has an annual street improvement project to repave streets and street lights, and the FY05 budget includes traffic signalization projects.

Mr. Coleman pointed out that street improvement projects funding is lower than in previous years because the Town appropriated $1 million annually and has done a significant amount of catch‑up with street paving, allowing a reduction in the level of funding.

Mr. Bailey commented on the Town Center Area Plan (TCAP) improvements, stating that there are three roundabouts in the plan: East Durham and Chatham, West Chatham and Old Apex Road, and in front of Cary Elementary School at Academy and Dry.

Mr. Roseland asked why the roundabouts are of more value than streetscape or other improvements that can be done to provide pedestrian infrastructure downtown.

Jim Parajon, of the Planning Department, responded that capital improvements in downtown are separate. He said the projects listed were in the current right of way and the TCAP implementation committee suggested the type of priorities more in conjunction with private development. Mr. Bailey added that the roundabout at the intersection of East Durham would be a considerable improvement for visibility and would allow Cary Visual Arts (CVA) to add public art in that area.

Mr. Joyce asked if staff has taken into consideration existing manholes and sewer lines. Mr. Bailey responded that annual projects are done on water and sewer in downtown. He said they are now replacing the asbestos cement water lines that have maintenance problems, stating that those issues do not exist on the roundabout corridors, and they are adding structural integrity to the sewer lines, which will not be dug up.

Mr. Joyce asked if the sewer lines were adequate. Mr. Bailey responded that many of them are acceptable unless major water usage starts to occur.

Mr. Coleman said another maintenance project is the Chapel Hill Road widening Phase I from Chapel Hill Road between N.E. Maynard out to Trinity Road . Mr. Bailey said staff is obtaining final comments from the North Carolina Department of Transportation and trying to go to right-of-way acquisition. He said that most of the funding is associated with a retaining wall along the stream corridor which will satisfy Department of Water Quality stream buffer requirements, and additional funding is needed for permitting requirements.

Mr. Roseland asked why the funding for sidewalks decreased. Mr. Bailey replied that there isn’t a backlog of sidewalk requests at this time and staff is trying to balance the funds available with the projects, and keep some activity moving. Mr. Coleman added that if more requests than budgeted are received during the year and there is a safety need for a sidewalk or a need for sidewalk connectivity, staff will ask Council for more funding.

Mr. Roseland would like the Town to do a gap analysis identifying areas of Town where sidewalks are most needed and developing an estimate to provide them.

Mrs. Robinson asked who initiated the Cary Parkway sidewalk. Mr. Bailey responded that staff sometimes adds sidewalks to the list because critical links are missing and a petition is not needed along thoroughfares, one person has to call in to make the request. He said it is difficult to put sidewalks on thoroughfares where there isn’t a curve and without road widening.

Mrs. Robinson asked if there are any major thoroughfares lacking sidewalks for which money has been or needs to be funded. Mr. Bailey said that the planning department analyzes the requests to determine if a sidewalk can physically be built and there is about $800,000 in previously funded sidewalks that are being designed and easements obtained.

Mayor McAlister asked if the $800,000 was funded from previous years. Mr. Bailey replied that it is from FY03 and FY04. He added that for the last five years sidewalks have been funded at $1.5 million dollars a year, one year Council cleared the priority list and the Town spent about $1.2 million to make the priority list go away. He said along the thoroughfares the limitation is usually the road widening, and in neighborhoods the limitation is that the residents don’t want them.

Mr. Roseland said that there are still critical areas in Town, such as Reedy Creek Road where there is an elementary and middle school but no sidewalk, and opposition from residents does not mean that there isn’t a public safety pedestrian need.

Mayor McAlister said that the purpose of the work session is not to determine what projects to fund but to decide whether the amount of funding is appropriate for the FY05 budget.

Ms. Dorrel asked what the cost for sidewalks is per span. Mr. Bailey responded that it cost approximately $26,000 to build a sidewalk, unless something major is needed. He said that the proposed budget does not represent the entire sidewalk funding in Cary , the state provides funding. He said that sidewalks are also included as part of road widenings and get lost in roadway cost.

Mr. Coleman stated that the remaining projects recommended for funding consist of the cost to continue implementing policies of Council with regard to the creation of bikeways, looking at alternative modes of transportation in various corridors, designated bus routes, bike and bus paths, purchasing buses for C-Tran, and continuing to fund traffic calming projects.

Mayor McAlister asked if a reserve for traffic calming exists. Mr. Bailey said the Town did not fund traffic calming last year because the reserve from the prior year was zeroed out; the funding started high but the need has been drawing down and staff is trying to match the requests to the funding level.

Ms. Dorrel asked if there was a potential for federal monies or other grants that might assist. Mr. Bailey said that at the Operations Committee a request to the Capital Area Metropolitan Planning Organization (CAMPO) was approved so there is a possibility that the Town will receive full or partial funding for the advanced planning project on the list. Mr. Parajon added that staff also talked with Apex to request assistance with funding.

Mrs. Robinson asked what the projected completion date is for the High House Road widening. Mr. Bailey answered that construction with High House Road widening is scheduled to begin this calendar year if the right of way issues with the property owners along the corridor can be resolved, and once started, it should take approximately 18 months to complete.

Mrs. Robison asked what the amount appropriated this year would be if staff had not recommended that Council not appropriate the available FY03 GO dollars for transportation, and what projects are not being done.

Mr. Coleman said that since the Town has 7 years to spend that authorization, last year there was about $18 million budget that staff elected not to budget this year and staff has not looked at which projects would be the next highest priorities.

Mrs. Robison asked when staff will work on those high priority projects. Mr. Coleman responded that staff will look at all of those projects next year. He said that the general approach is to wait for revenue growth and the economy to pick up to take care of the debt, and next year if there are projects that need to be funded staff will recommend funding through debt for FY06. He added that if growth picks up and traffic gets worse staff will make that recommendation.

Mr. Roseland asked if anything is being done to fix the problem at Crossroads. Mr. Bailey said that staff is working with NCDOT to move the ramp to a light at Donaldson which will provide congestion mitigation. He said construction is scheduled near the Red Roof Inn to add a through lane and there are funds available to add the northbound through lane to make it six lanes, but it cannot be done because the turning lanes need to first come off the ramp.

Mr. Bailey said that NCDOT is concluding the design and planning to let a bid this fall, and will be under construction this spring, adding through lanes on the freeway corridor and adding ramp improvements at both Walnut Street and Cary Parkway; in the interim, staff is studying the southeast gateway plan and has new traffic recommendations for Council consideration.

Mr. Coleman said staff looked at the major traffic issues and which ones have not been resolved. He said the projects not being funded this year are primarily the road widenings in the southern part of Cary and some of the widenings and extensions in the western growth area because the growth isn’t there. Staff will continue to evaluate the situation and make recommendations for projects and funding as necessary.

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Mr. Coleman stated that staff has elected to continue to spend some of the GOP bond funding on parks, otherwise there would be almost no parks in the capital budget. He said one of the major areas of funding for parks is the Bartley Community Park in the southern growth area of Cary . There is $1 million for open space acquisition and $1 million to continue the White Oak greenway project, phases 3 and 4; most of the other projects are maintenance projects.

Mr. Coleman said that in order to make decisions on how to use the Cary Elementary facility staff is recommending funding to go through the programming processing to allow the Council and community to weigh in on the future of that facility and how it fits in with the overall parks and recreation cultural resources plan.

Mr. Joyce asked if citizens are paying more for utilities so that the Town can purchase open space and, if so, if that money is going to be used for things other than building parks. Mrs. Henderson said the money was for the open space, with the largest amount being used for the White Oak Greenway. She said that they are buying some land that cannot be developed but a lot of what is being bought is for greenway corridors.

Mr. Joyce suggested putting a one year moratorium on building parks.

Several Council members questioned the need to fund the North Cary Community Center when the proximity is so close to the Herb Young Community Center . Mr. Roseland suggested taking the $435,000 budgeted for that center and using it as an escrow for the downtown area.

Mayor McAlister said that Council needs to think in terms of cutting something the Town doesn’t need from the budget instead of finding somewhere else to put the money, and North Cary Community Center would be the logical area to look at cutting.

Mrs. Henderson said in prioritizing projects staff looked at creating funds in each category by reviewing the percentage and geographic distribution of facilities, as well as suggestions for priorities from the Parks, Recreation and Cultural Resources Advisory Board. She said it is also identified in the cultural arts part of the master plan as a facility where exhibitions and festivals can be held. Mrs. Henderson agreed that the North Cary Community Center could be cut from the budget.

ACTION: Mayor McAlister called for a straw vote to put off funding the North Cary Community Center for one year. Mrs. Robison and Mr. Roseland voted “no.” All others voted “aye.” Mayor McAlister instructed staff to cut the FY05 funding for the North Cary Community Center .

Mr. Joyce made a suggestion to remove the funding for Bartley Park from the FY05 budget. Council members discussed the issue.

Mrs. Henderson said that Bartley Park is a 50-acre community park and the portion in the budget for this coming year is for partial completion of that park. She said that a lot of the money in budget for Bartley Park is for the road that has to be built. She said that although staff is finishing up the master plan the park does not have to be built right away.

Mr. Roseland asked what the operating costs for the park would be when it is completed. Mike Bajorek, of the Public Works and Utilities Department, said that staff did not have the exact numbers at this time but would obtain that information to provide to Council.

Mayor McAlister asked Council members if they were in favor of leaving the Bartley Park project funding in the budget. Mr. Joyce was opposed.

Mrs. Robinson asked if the $75,000 funding for the Cary Elementary project could be used to look at other options for the downtown area to meet the goals of the Town center program. Mrs. Henderson responded yes, that those funds are for the downtown area.

Mrs. Robinson asked if it was possible to look at the feasibility for a stand alone cultural arts center, not using the existing building, in the study. Mrs. Henderson said it would need to be separate. She said that staff could look at how that could be expanded in the plan at that time.

Council members discussed the downtown art project and whether to move ahead with that project.

Ms. Dorrel asked where the Town was in terms of the artist’s commitment. Mrs. Henderson replied that money has been spent on the design and the bridge work has been contracted but there hasn’t been movement on anything else; also, other ways to fund the project are being discussed.

Mayor McAlister said there is a high likelihood that the funding issue will resolve itself because the project is over budget and it can’t be built for the amount of money allotted. He said there will have to be a lot of public support in order to get it built. He said the decision to move ahead has been made but there are some issues to be worked out with the project before spending any more money.

Mrs. Robinson asked how much the shortfall was for the project. Mrs. Dorrel responded that it is somewhere around $6,200.

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Mr. Coleman said there are three projects that relate to stormwater improvements downtown, one which relates to the Town center streetscape improvements and several that relate to making changes in the public utilities operations center required because of expansion. He said these projects are limited in nature and are required in order to continue to provide services.

Ms. Dorrel asked staff to explain the parking deck funding. Mr. Coleman said that because of expansions in buildings and grounds and road maintenance, the Town continues to have to add employee traffic signalization, and space for people to park is limited. In order to utilize the property for things other than surface parking a small parking deck needs to be built. Mr. Bajorek added that during leaf season there is no surface parking for people.

Mr. Roseland would like to look at options on public works before moving forward with a parking deck.

Mr. Coleman said that there is no question that some time in the future a small parking deck will need to be built in order to more efficiently utilize that site and not take up more of it with surface parking. He said that staff will review other alternatives and bring those back to the Council. His preference is to leave the money in and not spend it until Council approval is received.

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Mr. Coleman stated that other than normal maintenance and policy supporting funding water and waste water, capital projects funded this year are very limited. He said that the major projects are an additional centrifuge for the Cary/Apex water treatment plant condition to help deal with increasing sludge capacity, continued funding for the thermal biosolids dryer to create a permanent long range solution to the sludge problem at the waste water treatment facilities, the west Cary pump station and force main which will provide major sewer capacity in the western growth area, and the batchelor branch and white oak creek interceptors.

Mrs. Robison asked why staff has not approximated the cost of the odor abatement and included it in the budget to assure that there is adequate planning for the investments needed.

Mr. Coleman said staff looked at ways to provide estimates of the cost but there was no way to make a reasonable estimate. He said that funding can be appropriated but it would be completely arbitrary. He stated funding could be appropriated if the Council chose to do so as an indication of a commitment for that project. He said that the funding would come from the fund balance in the utility system and the figure would be arbitrary.

Mayor McAlister asked if they could get money from fund balance if needed. Mr. Coleman said yes.

Mr. Roseland asked staff to describe the $2.5 million capital project that would provide some type of containment. Rob Bonne, of the Public Works and Utilities Department, said that the $2.5 million is probably on the high side. He said a study was done to cover all of the digestors at the plant and scrub the odor out and the digestor causing all of the problems is one that will probably never be used again.

Mr. Roseland said that Council can look at escrowing the $2.5 million with a 90-day reversion clause that goes back to the utility fund if not needed. He said there needs to be a commitment that Council is projecting a potential infrastructure to deal with odor and water reclamation problems in north Cary .

Mr. Roseland asked for a straw poll to escrow $2 million contingent on the results of the study.

Mayor McAlister said before taking a poll it needs to be determined if the problem will reoccur or if taking that digestor out of service eliminated the problem.

Mr. Coleman said the Town will be using very little of the digestor capacity out there in the future and whatever results from the abatement study is purely speculation. He said that if the Council wants to appropriate some funding to show a commitment then appropriating $1 million or $1.5 million would be sufficient.

Mr. Joyce asked when the survey would be completed. Kim Fisher, of the Public Works and Utilities Department, responded that staff is expecting to bring it to Council at the end of July.

Mrs. Robison recommended that $1.5 million be included in the budget as an earmark for the north Cary water reclamation facility. Mayor McAlister added that anything put in the budget for the facility would be in escrow pending the results from the study.

Mr. Coleman said if there is consensus from the Council staff will add Council’s recommendation to the budget. There was a consensus from the Council.

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Mrs. Robison asked if the Maynard crossing connection is on the list. Mr. Bailey responded that it is unfunded but was added so that Council would know the cost and there is no plan for the next two years to fund the project.

Mrs. Robison said that Council agreed at an earlier meeting to consider adding Maynard crossing to the road projects and requested that it be added to the 10-year CIP. She asked if an immediate decision needs to be made for the funding to be in the FY07 or FY08 budget.

Mr. Bailey said that there is a time frame in the zoning conditions and FY07 or FY08 may be too late.

Mrs. Robison asked which budget the funding would need to be in to address the timing issue. Mr. Bailey said the cost is $700,000 for site acquisition of retail property in the area and a subdivision plan is currently in review. He said it would need to be included in the FY05 budget.

Mr. Coleman said staff will discuss the Maynard crossing project and bring it back to Council at the operating budget work session for clarification.

Mr. Smith asked if the $150,000 for the veterans park is in the operations budget. Mr. Coleman responded that it is an appropriation from the fund balance.

Work session ended at 6:38 p.m.