NOTE: These minutes are DRAFT. Contact the town clerk at (919)460-4941 for official minutes of this meeting.

 

Cary Town Council Minutes
Thursday, October 12, 2006
6:30 PM
Council Chambers
316 N. Academy Street, Cary, N.C.
Web Site: 
www.townofcary.org

 

NOTE: These minutes are divided into sections because of their length. Click on the links herein to view complete text minutes.

 

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

 

A.   COMMENCEMENT

 

1.    Call to Order (Mayor McAlister)

 

Mayor McAlister called the meeting to order at 6:30 p.m.

 

_________________________

 

2.    Ceremonial Opening (Ms. Dorrel)

 

Ms. Dorrel provided the ceremonial opening.

 

_________________________

 

3.   Adoption of agenda (Town Council)

 

ACTION: Mayor Pro Tem Smith moved to adopt the agenda as prepared. Mrs. Robinson provided the second, and council granted unanimous approval.

 

_________________________

 

B.   CONSENT AGENDA

 

1.   Regular Consent Agenda (any regular consent agenda item pulled for discussion will be discussed at the end of the old/new business portion of the agenda, which is item H on this agenda)

 

a.   Consideration of approval of the minutes of the regular town council meeting held on September 28, 2006; the minutes of the work session held on September 26, 2006 regarding the council vacancy; and the minutes of the work session held on September 26, 2006 regarding aquatics. (Town Council)

 

ACTION: Mrs. Robinson moved to approve the consent agenda; Mayor Pro Tem Smith provided the second; council granted unanimous approval.

 

_________________________

 

b.   Consideration of approval of a request to change the date of the regular town council meeting in November from Thursday, November 9, 2006 to Tuesday, November 14, 2006 (6:30 p.m., council chambers, 316 N. Academy St., Cary). (Town Council)

 

ACTION: Mrs. Robinson moved to approve the consent agenda; Mayor Pro Tem Smith provided the second; council granted unanimous approval.

 

_________________________

 

2.   Land Development Consent Agenda (any land development consent agenda item pulled for discussion will be discussed at the end of the land development discussion portion of the agenda, which is item F on this agenda)

 

There were no land development consent items on this agenda.

 

_________________________

 

 

3.   Planning and Development Committee, September 28, 2006 (any committee consent agenda item pulled for discussion will be discussed at the end of the committee discussion portion of the agenda, which is item G on this agenda)

 

a.   Town Recognized Events List (PL07-009)
Committee unanimously recommended approval the amended Town Recognized Events List.
(Approved)

 

b.   Review Officer Authorization (PL07-008)
Committee unanimously recommended authorization of individual staff listed above to act as review officers for the Town of
Cary and authorization of Planning to update titles directly to Wake
County. (Approved)

 

c.   Dr. Privette Dental Office – Request for Waiver of Sidewalk Installation (EN07-030)
Committee unanimously recommended that Town Council waive the requirement to install sidewalk along Northwoods Drive for the Dr. Privette Dental Office development plan.
(Approved)

 

d.   Triangle Forest Products – Request for Traffic Signal Payment Reimbursement (EN07-031)
Committee unanimously recommended approval of a $12,500 reimbursement to Triangle Forest Products.
(Approved)

 

e.   Town Center Area Plan (TCAP) 2006 Strategic Action Program (PL07-007)
Committee unanimously recommended approval of
the new 2006 TCAP Strategic Action Program as the guide for focused downtown activity for the next one to two years and authorize Town staff to proceed with necessary work on the three new action steps during the next 12-18 months and continue work on projects in progress. (Approved)

 

f.    Public Art US 1/64 Pedestrian Greenway Bridge (PR07-09)
Committee unanimously recommended commissioning Michael Stutz to implement his design for artwork for the US 1/64 Pedestrian Greenway Bridge, and to designate Judy Bales as the alternate artist for the commission should the Town not be able to resolve issues during contract negotiations with artist Michael Stutz.
(Approved)

 

4.   Operations Committee, October 4, 2006 (any committee consent agenda item pulled for discussion will be discussed at the end of the committee discussion portion of the agenda, which is item G on this agenda)

 

a.   Utilization of Dynamic Message Signs (AD07‑002)
Committee unanimously recommended that Dynamic Message Signs carry only relevant safety and travel information and that a DMS “user's guide" be created for the Town's Web site.
(Approved)

 

b.   FY06 Developer Agreement Update and Annual Reimbursements (EN07-028)
Committee unanimously recommended reimbursements by the Town in accordance with the Transportation Development Fee Ordinance and current developer agreements.
(Approved)

 

c.   Sanitary Sewer Easement Acquisition Assistance for Highcroft Village Sewer Extension (EN07‑029)
Committee unanimously recommended approval of a request for sanitary sewer easement acquisition assistance for the Highcroft Village Sewer Extension.
(Approved)

 

d.   Force Main Alternative Evaluation Results and Recommendation for the Terrington Wastewater Pump Station Project (EN07-032)
Committee unanimously recommended Alternate 2 for the Terrington Wastewater Pump Station Project.
(Approved)

 

e.   Green Hope School Road Improvements – Condemnations (EN07-033)
Committee unanimously recommended a
doption of condemnation resolutions for Green Hope School Road Improvements.
(Approved)

 

f.    Municipal Agreement – PSNC Median/Driveway Work along NC 54/Chapel Hill Road (EN07‑034)
Committee unanimously recommended entering a municipal agreement with the North Carolina Department of Transportation (NCDOT) for the funding of a median break to be constructed with the Town’s ongoing NC 54/Chapel Hill Road widening project and recognition of the $135,000 NCDOT reimbursement as revenue and appropriation to the Chapel Hill Road Widening Phase I Project (ST1029).
(Approved)

 

g.   Release of a Utility and Pipeline Easement (EN07-035)
Committee unanimously recommended approval of a request to release an unused and unneeded utility easement
. (Approved)

 

h.   Recognition of Grant Award (FD07-01)
Committee unanimously recommended recognition of donated funds from Red Robin Gourmet Burgers for use by the Fire Department to purchase an automatic defibrillator for public use.
(Approved)

 

i.    Amendments to Stop Street Schedules (PD07-005)
Committee unanimously recommended adoption of an ordinance amendment to the Town Code Sec. 34-329 (stop streets)
.
(Approved)

 

j.    Modifications to School Speed Zones (PD07-006)
Committee unanimously recommended adoption of an ordinance amendment to the Town Code Sec.34-334, Schedule XIV (designated school speed zones) and further study of school zone issues throughout Cary. 
(Approved)

k.   Recognition of grant award (PD07-007)
Committee unanimously recommended the following actions to authorize $195,528 in police-related expenditures in FY07:

(1)  Recognizing $170,778 in federal grant fund revenue into the General Fund as awarded by the Governor’s Highway Safety Program to the General Fund Justice Assistance account (Approved)

(2)  Approving the appropriation of $24,750 to the police department’s capital equipment and operating accounts, which when combined with the federal grant funds will allow for the purchase of two police vehicles and uniforms and equipment for two positions (Approved)

(3)  Approving the appropriation of $170,778 to the police department’s operating and capital equipment accounts to fund the two police officer positions. (Approved)

l.    Bid Award for US 1/64 Pedestrian Crossing Project (PR07-10)
Committee unanimously recommended:

(1)  Awarding the base bid as well as the alternates, including alternate #1 (sidewalk), alternate #2 (stamped asphalt) and alternate #3 (landscaping north berm) of the US 1/64 Greenway (PR1073) to Asphalt Experts Inc. for $407,100.  This award by council represents a preliminary determination as to the qualification of the bidder, and no legally binding acceptance of the bid or offer will occur until the town has executed a written agreement; (Approved)

(2)  Authorizing the transfer of $90,000 from the Greenway Crossings project (PR1082) to the US1/64 Crossing Project (PR1073); (Approved)

(3)  Authorizing the transfer of $327,500 from McDonald Woods Ph II project (PR1083) to US1/64 Crossing (PR1073).  (Approved)

m.  Koka Booth Amphitheatre at Regency Park – Management Plan and Budget (PR07-11)
Committee unanimously recommended:

(1)  Approval of SMG's Management Plan and Budget for the 2007 season (Approved)

(2)  Reducing the Amphitheatre special revenue fund budget at October 31, 206 for the first four months of the Town’s fiscal year 2007 to equal expenses for the same time period and returning the remaining cash flow balance to the Amphitheatre Fund Fund Balance (Approved)

(3)  Appropriation of $533,872 from the Amphitheatre Fund Fund Balance and the remaining amount of $411,776 from General Fund Fund Balance to the respective Amphitheatre Fund accounts necessary to execute the 2007 season (Since these numbers reflect estimates to complete the year, it is understood that these respective amounts will be adjusted to correspond with actual amounts remaining at the end of October 2006.) (Approved)

(4)  Recognition of a $199,500 reimbursement from the Amphitheatre Fund to the General Fund’s facilities management division for the 2007 season support ($170,000 support and $29,500 special projects). (Approved)

n.   FY06 Sidewalk List:  Glasgow Road (PL07-003)
Committee unanimously recommended denial of a request to delete Glasgow Road from the FY2006 Sidewalk Project and from future sidewalk projects.
(Approved the request to deny -- Glasgow Road remains on the project list)

 

C.   RECOGNITIONS, REPORTS, AND PRESENTATIONS

 

C.   RECOGNITIONS, REPORTS, AND PRESENTATIONS

 

1.   Presentation of a proclamation designating October 16 through October 22, 2006 as Navy Week in the Town of Cary. (Mayor McAlister)

 

Mayor McAlister presented the following proclamation:

 

DESIGNATING OCTOBER 16 THROUGH OCTOBER 22, 2006 AS

NAVY WEEK IN THE TOWN OF CARY

 

Whereas, Cary is the hometown of approximately 150 Active and Reserve Sailors and their families.  Many of these sailors are faithfully serving their country and our community at home and abroad with distinguished service.  Their “Honor, Courage and Commitment” make them both heroes and role models for everyone in Cary

 

Whereas, Cary High School hosts a nationally prominent Naval Junior Reserve Officers Training Corps (NROTC). In addition, the Town of Cary is fortunate to have many distinguished United States Navy veterans who upon completion of their duties have added untold value throughout our community. 

 

Whereas, Navy Week in Cary has been developed in order to celebrate the past, present and future between the United States Navy and our Town.  To celebrate our long-standing collaborative efforts, sailors from the Triangle Region and from the future crew of the fast attack submarine USS North Carolina (SSN 777) will assist with community events at the Downtown Cary Public Library, a Habitat for Humanity project and at Green Hope High School.

 

Therefore, I, Ernest F. McAlister, Mayor of the Town of Cary, hereby proclaim Monday, October 16th through Sunday, October 22, 2006 as Navy Week in Cary. Furthermore, I encourage all citizens to join in a salute to the Naval Forces of the United States in recognition of their years of effective and dedicated service to our country.

 

(Proclamation 06-080 is also on file in the town clerk’s office.)

 

_________________________

 

D.   PUBLIC HEARINGS

 

1.   Rezoning 06-REZ-21, Regency Planned Development District Amendment
The property is located on Regency Parkway, north of Glade Park Road, and contains approximately 21.32 acres. The request is to amend the current planned development district. Council may refer this request to the November 20, 2006 Planning and Zoning Board meeting. (Ms. Jennifer Currin)

 

Background Information

 

Existing Zoning:  Planned Development District (PDD)

Requested Zoning:  Planned Development District Amendment

 

Existing Zoning Conditions:  Tract 7:  180,000 square feet office

Requested Zoning Conditions:  Add 60,000 square feet of office to Tract 7 for a total of 240,000 square feet of office and to reduce the Thoroughfare Corridor Buffer from 100’ to 50’.

 

Conformity with Land Use Plan Designation:  Yes.  The adopted land use designation is Office and Institutional (OFC/INS).

 

Acreage:  Approximately 21.32

 

Location:  Regency Parkway (north of Glade Park Road)

 

Applicant:

Glenda Toppe

Jerry Turner & Associates, Inc.

905 Jones Franklin Road

Raleigh, NC 27606

gtoppe@jerryturnerassoc.com

(919) 851-7150

 

Town of Cary Case Manager: 

Jennifer Currin, Planner II

316 N Academy Street, Cary, NC 27513

(919) 469-4342

jennifer.currin@townofcary.org

 

Summary of Requested Rezoning

 

REQUESTED LAND DEVELOPMENT PROPOSAL

Parcel

Acreage

Current Maximum SF

Proposed Maximum SF

Maximum Building Height (feet)

Tract 7

Approx. 21.32

180,000

240,000

6 stories

 

The maximum square footage of office currently approved for Tract 6 would remain unchanged to allow 115,000 square feet of office. However, this request would increase the maximum amount of office space between Tracts 6 and 7 to 355,000 square feet.  The applicant is also requesting that the Thoroughfare Corridor Buffer be reduced from 100’ to 50’.

 

A.  Transportation
Existing Roadway Section:  Regency Pkwy. not constructed, 100’ ROW

Future Roadway Section:  2-3 lane collector road, 78’ ROW

Schedule: Not scheduled

Sidewalk Requirements:  Sidewalk required on both sides

Bicycle Requirements:  Wide outside lane or striped bike lane required

Transit Requirements:  No requirements

 

B.  Traffic Impact Analysis:  The existing Traffic Impact Analysis (TIA) will need to be amended to add the increase in the office space in Tract 7.

 

C.  Parks & Greenways:  According to the approved Parks, Recreation, and Cultural Resources Facilities Master Plan there are no parks or greenways issues related to this site.

 

3.  Reference Information

Meeting Schedule: 

Town Council Public Hearing

Date:  October 12, 2006

 

Planning & Zoning Board:

Date:  November 20, 2006

 

Town Council Action:

Date:  December 14, 2006

 

PARCEL & OWNER INFORMATION

Property Owner(s)

County Parcel Number(s)

Real Estate ID(s)

Area Acres

Triangle Regency LLC

400 Ashville Ave STE 340

Cary, NC 27511-6134

0752704057 (portion)

0232862 (portion)

21.32

Total Acreage

 

 

21.32 (approximate)

 

Applicant’s Justification Statement Submitted (July 31, 2006)

(Please note that the following statement is that of the applicant and does not necessarily represent the views or opinions of the Town of Cary):

 

How is the proposed request reasonable?  In explaining how it is reasonable, please address the following, if applicable:

 

  1. Any issues with the size of the tract?  The size of the tract is conducive to the land use being proposed.

 

  1. How is the request compatible with the comprehensive plan (i.e. Land Use, Transportation, Open Space and Historic Resources)? The request is compatible with the comprehensive plan.  The Comprehensive Plan currently designates this tract for office.  No other changes are being proposed within the adopted PDD.

 

  1. What are the benefits and detriments to the owner, neighbors and the community? The additional office square footage will help provide for the mix of uses that was originally envisioned for Regency Park.  The amendment will also provide an increased tax base to the Town.  Tract 7 is ideal for additional office development given its location adjacent to US 1 and its proximity to the interchange of US 1 & 64.  The Tract is adequately buffered from any proposed or existing residential development. The regulations in the Town’s LDO will provide adequate protection to the adjacent properties.

 

  1. How are all the allowable uses with the proposed rezoning compatible with, or how do they relate to, the uses currently present on adjacent tracts? Other tracts in the vicinity of Tract 7 are currently developed for office.

 

  1. What reductions/amendments and/or modifications to the development standards of the LDO are being requested and how are they justified?  (PDD, new or amended) Applicants must list these items and/or clearly highlight them within the Planned Development document.  No reductions/amendments and/or modifications to the development standards of the LDO are being requested.

 

Development Plan Issues:

The purpose of a rezoning is to evaluate the appropriateness of this land use for these parcels of land.  Specific development requirements related to the technical aspects of land development, such as access, stormwater management, road improvements, utility line placement, road connectivity and landscape plantings, are not considered during the rezoning process.  However, all of these development issues must be addressed for compliance with existing requirements spelled out in the Land Development Ordinance (LDO) when the site or subdivision plan is submitted. 

 

Staff’s power point presentation is attached to and incorporated in these minutes as Exhibit.

 

Mrs. Glenda Toppe of Jerry Turner and Associates, representing the applicant, stated the approved master plan calls for office on this site, and this request would increase office to 240,000 square feet. She stated council formerly stressed the importance of maintaining office designation, and this request will increase the office use. The stated the thoroughfare corridor buffer reduction from 100 to 50 feet will allow more flexibility with parking and building placement. She added that the grade change and additional planting will meet the intent of the buffer.

 

No one came forward to speak; Mayor McAlister closed the public hearing

 

ACTION: Referred to the November 20, 2006 Planning and Zoning Board meeting

 

_________________________

 

E.   PUBLIC SPEAKS OUT (one hour time limit)

 

Mr. Rod Keller voiced his opposition to the Crossroads and Piney Plans cases on tonight’s agenda.

 

Mr. Steven Gebeaux spoke in favor of a 35 mph speed limit on Louis Stephens Road. Refer to Exhibit H for his comments and handouts.

 

Ms. Cynthia O’Neal spoke about the Tryon Road bid award on tonight’s agenda. Refer to Exhibit I for Ms. O’Neal’s comments and handouts.

 

Ms. Jill Bryant spoke against the Crossroads and Piney Plans cases on tonight’s agenda.

 

Ms. Ruth Merkle referenced the October 2006 Triangle Business Journal article that stated there’s a shortage of land for office development in the Cary area. She spoke against the Crossroads and Piney Plans cases on tonight’s agenda, and she believes the land should remain for office development.

 

Mr. John McConnell stated he and Glenn Futrell own the land involved in the Piney Plains and Crossroads request on tonight’s agenda. He urged council to support these requests.

 

Ms. Tracy Filomena spoke against the Crossroads and Piney Plans cases on tonight’s agenda.

 

Mr. Nick Lavale spoke against the Crossroads and Piney Plans cases on tonight’s agenda.

 

_________________________

 

F.   LAND DEVELOPMENT DISCUSSION ITEMS   (click on link for full text minutes of these items)

1.   Rezoning Petition 06-REZ-09, Crossroads Activity Center Overlay District Amendment
Consideration of adoption of an ordinance to rezone land. The property is located at the intersection of Piney Plains Road and Stephens Road and contains approximately 16 acres. This is a Town-initiated zoning to amend the Crossroads Activity Center Overlay District (ACOD) Boundary. The Planning and Zoning Board unanimously recommended approval. Due to a valid protest petition, five affirmative council votes are required to approve this item.  (Denied) 

2.   Activity Center Concept Plan 06-AC-01, Piney Plains
The property is located at the intersection of Piney Plains Road and Stephens Road and contains approximately 30.30 acres. The current zoning is Office and Institutional and Residential-40; the request is to establish an activity center concept plan. The Planning and Zoning Board recommended denial (majority vote). Due to a valid protest petition, five affirmative council votes are required to approve this item. (No action required since 06-REZ-09 was denied) 

3.   Comprehensive Plan Amendment 06-CPA-03, Bashyam Property
Consideration of adoption of an ordinance to amend the comprehensive plan. The property is located in the southwest quadrant of the intersection of NW Maynard Road and Chapel Hill Road and contains 16.09 acres. The current comprehensive plan designation is Office/Institutional and Medium Density Residential; the proposed comprehensive plan designation is Mixed Use. The Planning and Zoning Board recommended approval (majority vote).
(Approved, including change to note 4 to strive
to keep traffic within about about +/- 5% of average daily traffic target on weekdays and within about +/- 7.5% of average daily traffic  target on Saturdays)

G.   COMMITTEE REPORTS (discussion items)

 

1.   Planning and Development Committee, September 28, 2006 (any item pulled from the committee consent agenda for discussion [agenda item B.3.] will be discussed during this portion of the agenda) (Mr. Roseland)

 

a.   Highland Village Amendment of Loan Terms (PL07-005)
Committee unanimously recommended approval of the redesign of the Highland Village townhome units as requested by DHIC and to modify the loan terms to redefine an “affordable” sale from one based upon income to one based upon sales price with a base sales price of $184,500.  Committee also unanimously recommended approval of $35,000 to complete the pedestrian steps and $147,000 for recreation payment-in-lieu fees with the instruction to staff to investigate alternative funding sources.

 

Updated 10/6/2006

STAFF REPORT

Planning and Development Committee, September 28, 2006

Highland Village Amendment of Loan Terms (PL07-005)
Consideration of adjusting the loan and project requirements for the development of Highland Village Townhomes and the provision of additional assistance to the project.
Speaker:  Philip E. Smith

 

From:  Jeffery G. Ulma, Planning Director
Prepared by:   Philip E. Smith, Long Range Planning Manager
Approved by:  William B. Coleman, Jr., Town Manager
Approved by:  Benjamin T. Shivar, Assistant Town Manager

 

Background:

On July 10, 2003, Town Council authorized financial assistance to DHIC, Inc. for the development of Highland Village, a 258-unit residential development.  This assistance consisted of a $250,000 grant and a $600,000 loan.  The grant and loan were to be utilized as construction funds for the Commons at Highland Village and Highland Manor, which are the two senior housing components within the larger Highland Village project.  After being utilized for construction, the $600,000 loan was to be repaid to the Town by December 31, 2005 and then re-lent for forty (40) second mortgages for lower income families purchasing townhomes and condominiums within the project.  The second mortgages would be repaid to the Town over a 30- year period at 3% interest.

 

Last fall, DHIC informed the Town that the project was facing a $1,041,000 shortfall to complete the homeowner portion of the project and requested assistance from the Town to close this funding gap.  On November 10, 2005 the Town Council approved a modification of the repayment terms of the $600,000 loan to amend the due date and extend it for a period of 36-48 months depending upon the loan terms of the primary lender, SunTrust Bank.  Council’s action also allowed DHIC to repay the loan through a mechanism of deed transfer fees whereby the Town would be repaid a portion of the loan every time one of the townhome units sold over the next 30 years.  Although this action met a portion of DHIC’s needs, an additional funding gap of approximately $441,000 remained.  DHIC agreed to look at cost saving measures and to seek additional funding from Wake County under their affordable housing programs.  Although the Mayor wrote a letter indicating Town support of DHIC’s funding request, Wake County did not fund the Highland Village Townhome project.  Additionally, other cost-saving measures have not materialized for a variety of reasons.  In particular a plan to eliminate recreation payment-in-lieu fees of $147,000 by converting the townhome project to a condominium project was not possible due to builder concerns.

 

DHIC has re-examined the project in light of these latest events.  By redesigning the project to provide for slightly larger and taller units with an accompanying price increase, the funding gap may be reduced to $182,000.  The gap consists of $147,000 for Town payment-in-lieu fees and $35,000 for the construction of steps leading from the Village Green to High House Road.  DHIC has re-approached the Town to request assistance in meeting this funding gap.  Specifically DHIC is requesting the Town to:

 

1.       Approve the new design
The redesign of the townhome units has increased their size by approximately 300 square feet. Additionally, the units increase in height from 2 stories to 2.5 stories for a net increase of approximately 4 feet.  The existing approved elevations and the proposed elevations are attached.  Planning staff has determined this height increase requires Town Council approval.  DHIC is requesting that Council approve the redesigned units and the increased height.

 

2.   Approve a $147,000 capital grant
DHIC is requesting the Town provide a $147,000 capital grant to pay the recreation payment-in-lieu fees for the project.  DHIC has indicated that Highland Village is still challenged to pay both this recreation fee and provide extensive recreation facilities on-site.  The value of their on-site recreation package is $997,000 and includes a clubhouse, pool, playground and Village Green with gazebo and community garden.

 

3.   Approve a $35,000 capital grant
DHIC is requesting the Town provide an additional $35,000 grant to cover the construction cost of steps leading from the Village Green area to High House Road.  These steps are shown on the approved site plan and would be located approximately halfway between the two entrance drives.  These steps are necessary to allow pedestrians to navigate a steep incline from the development to High House Road.  By way of explanation these steps were proposed to be eliminated as a cost-savings measure in the proposal approved by Council last November.

 

4.   Further amend the loan terms to redefine an “affordable” sale
As currently approved, DHIC was to make available 40 units within the 48 unit project for purchase by persons earning 80% of the area median income or below.  DHIC has requested a modification of these loan terms to redefine an “affordable” sale from one based upon income to one based upon sales price.  DHIC proposes that the base sales price for all 48 of the townhomes be set at $184,500.  This base price is determined by what a family of four earning 80% of the median income could afford.  DHIC is proposing that they be relieved of the requirement to document that the families buying the townhome units are within the targeted income group.  DHIC is also requesting that other loan terms modified by the November 10, 2005 Council action be retained.

 

Staff Analysis: 
Staff has no objection to the redesign of the units and the accompanying price increase.  The redesign adds value to the development both now and in the long term.  Staff concurs with DHIC that a three-bedroom unit for $184,500 is within the “affordable” range for Cary.

 

Regarding the redefinition of an affordable sale, the Town has set a precedent for basing “affordability” on price rather than income with the affordable housing requirement in Cary Park.  The difference is that the Town provided no financial assistance to Cary Park whereas $850,000 has already been provided to Highland Village with a request for $182,000 more.  Primary goals of the Town’s affordable housing program are to increase the supply of affordable housing in Cary and the ability of low and moderate income families to access that housing.  Granting DHIC’s request accomplishes the goal of increasing the supply but would not ensure that the Town’s investment in the project is achieving its original intent of getting moderate income families access to the housing nor that the townhome prices would remain affordable in the long term.  DHIC has suggested they include a “right of first refusal” in the sales documents that would give DHIC the ability to repurchase the units and make them available to other lower income families.

 

Fiscal Impact: 
DHIC has requested an additional $182,000 in grants to support Highland Village which would bring the Town’s total investment in the development to $1,032,000.  Should the Council wish to grant this request, a source for this funding would be the Affordable Housing Program funds to which the Council recently restored $600,000.  At that time Council indicated that these funds were to be spent for affordable housing projects in the TCAP area.  Highland Village is within the Town Center Area, so additional assistance from this source of funds would meet Council’s directive.   CDBG funds are another possible source, but federal regulations would require the documentation of the incomes of the buyer, which would not meet DHIC’s stated objectives.

 

It should also be noted that if the homeownership phase of Highland Village is not completed due to this funding gap, it would place the repayment of the $600,000 loan into jeopardy as there would be no repayment mechanism.

 

Staff Recommendation:  Town Council approve the redesign of the Highland Village townhome units as requested by DHIC and provide guidance to staff regarding each of DHIC’s other requests for 1) an additional capital grant of $147,000 for recreation payment-in-lieu fees; 2) a capital grant of $35,000 to complete the pedestrian steps; and 3) to modify the loan terms to redefine an “affordable” sale from one based upon income to one based upon sales price with a base sales price of $184,500.

 

Additional Information Since the Planning and Development Committee Meeting:

 

At the request of the Planning and Development Committee, DHIC has provided further information regarding their right of first refusal policies.  These policies are:

 

  • DHIC receives the right of first refusal only when providing a second mortgage for downpayment assistance to the homebuyer.  Based upon current policy, a homebuyer must earn less than 80% of median income to qualify for downpayment assistance.
  • DHIC would only exercise its right if its Homeownership Center had identified a low-income client who is a qualified homebuyer desiring to purchase the subject townhome.
  • In addition, DHIC would only exercise its right if the home price inclusive of closing costs, fees, and repair costs ,if any, seemed reasonable in the marketplace or was supported by an appraisal.

 

Other factors may impact any given transaction and DHIC will not guarantee that it would purchase a home that meets the above conditions.

 

DHIC has also informed staff that on September 28, 2006, the DHIC Board of Directors committed $200,000 from its operating budget as a match to their request for additional funding from the Town.  This funding will help ensure that the project is completed with the planned amenities package.

 

Fiscal Impact: 

DHIC has requested an additional $182,000 ($147,000 recreation payment-in-lieu + $35,000 steps) in grants to support Highland Village which would bring the Town’s total investment in the development to $1,032,000.  At the request of Planning and Development Committee, staff has identified possible sources of funding to meet the $182,000 request.  Should the Council wish to grant this request, the following approach is recommended:

 

  1. Apply an existing unallocated balance of $52,339 from the affordable housing fund which has not yet been associated with a specific project.  This is the only amount remaining unspecified from the Town’s total funding of $3,393,000 that has been appropriated for affordable housing since FY 2000.  This unallocated $52,339 balance is not part of the $600,000 the Town Council designated towards housing in the Town Center area and has not previously been designated toward any project.
  2. Fund the remainder of $129,661 ($182,000 minus $52,339) of the request from the $600,000 designation in the affordable housing fund set aside for the TCAP area.  Council indicated that these funds were to be spent for affordable housing projects in the TCAP area.  Since Highland Village is within the Town Center Area, additional assistance from this source of funds would meet Council’s directive.
  3. Should Council wish to keep the $600,000 amount available for future projects in the TCAP area, it is suggested that a $129,661 transfer from General Fund Balance be made into the affordable housing fund to replace the funding used for Highland Village to once again make the total available for future projects in the TCAP area equal $600,000. 

 

Staff Recommendations: 

1)       Staff recommends that the Town Council approve the redesign of the Highland Village townhome units as requested by DHIC. 

2)       Staff recommends that the Town Council approve the request for an additional capital grant of $147,000 for recreation payment-in-lieu fees to be funded by $52,339 in unallocated Affordable Housing funding and $94,661 ($147,000 minus $52,339) from the $600,000 designated for TCAP projects.  Staff also recommends that if Council wishes to keep $600,000 available for future TCAP projects, that $94,661 be transferred from general fund fund balance into the Affordable Housing fund as outlined above under the fiscal impact section to ensure $600,000 is available for future TCAP projects.

3)       Staff recommends that the Town Council deny the DHIC request for $35,000 for the pedestrian steps. 

4)       Staff recommends that the loan terms be modified to redefine an “affordable” sale from one based upon income to one based upon sales price with a base sales price not to exceed $184,500.  This modification should be accompanied by a requirement that DHIC retain a “right of first refusal” per their existing policies to help ensure that the townhomes remain affordable in the long term. 

 

Mayor Pro Tem Smith returned to the meeting room.

 

Mr. Roseland suggested to dispense first with the two policy recommendations (the redesign of the Highland Village townhome units as requested by DHIC and to modify the loan terms to redefine an “affordable” sale from one based upon income to one based upon sales price with a base sales price of $184,500). 

 

ACTION: Mr. Roseland moved to approve the two policy issues as stated in the above paragraph. Mrs. Robinson provided the second.

 

Ms. Dorrel is saddened to sacrifice a part of one of the Town’s goals in order to meet the financial requirements of the project. She learned in a recent discussion with DHIC that the municipality typically provides a much larger investment. She stated the council should remember this with future affordable housing decisions, because the Town’s lofty goals didn’t match the Town’s investment in the project. She thinks the committee recommendation is the most practical approach to ensure the project is completed.

 

Mayor McAlister suggested that Mr. Roseland amend his motion to include the funding issues so council can vote on it as one piece. (Committee also unanimously recommended approval of $35,000 to complete the pedestrian steps and $147,000 for recreation payment-in-lieu fees with the general fund fund balance as the funding source.)

 

ACTION: Mr. Roseland amended his motion to include the funding issues (as noted above). Mrs. Robinson did not amend her second. Mrs. Robison provided a second to the amended motion.

 

Mayor McAlister explained that this motion now reflects the committee recommendation with the funding source from the general fund.

 

Mrs. Robinson is in favor of funding the request but not from the general fund.

 

ACTION: Vote was called for on the motion to approve the committee’s recommendation with funding from the general fund fund balance. Mrs. Robinson voted “no;” all others voted “aye.” The motion carried by majority vote.

 

_________________________

 

2.   Operations Committee, October 4, 2006 (any item pulled from the committee consent agenda for discussion [agenda item B.4.] will be discussed during this portion of the agenda) (Mrs. Robinson)

 

a.   Bid Award for the Tryon Road Phase 2 Widening Project (EN07-023)
Committee unanimously recommended that a contract be awarded to Rea Contracting for $7,843,543.47 for construction of the Tryon Road Phase 2 Widening Project (ST1092) and a transfer of $761,000 from the Tryon Road Phase 1 Widening project (ST1073) to the Tryon Road Phase 2 Widening Project (ST1092). This item was unanimously approved by the Operations Committee on
September 6, 2006 and was removed from the September 14, 2006 council agenda at staff’s request.
(Mr. Tim Bailey)

 

Updated 10/6/2006

STAFF REPORT

Operations Committee, September 6, 2006

 

Bid Award for the Tryon Road Phase 2 Widening Project (EN07-023)
Consideration of bid award for the Tryon Road Phase 2 Widening Project

Speaker:  Tim Bailey

 

From:  Tim Bailey, PE, Director of Engineering

Prepared by:  Joe Moore, PE, Engineering Services Manager
Approved by:  William B. Coleman, Jr., Town Manager
Approved by:  Benjamin T. Shivar, Assistant Town Manager

 

On August 24, 2006, staff received bids for the Tryon Road Widening (Section A) project. This project involves widening approximately 1.5 miles of Tryon Road between Kildaire Farm Road and Piney Plains Road to a four-lane, median-divided roadway with wide outside lanes and sidewalks. When finished, this project will complete Cary’s portion of the Tryon Road corridor.

 

The town received four bids for the project.

 

Bidder

Total Bid

Mountain Creek Contractors

$7,661,206.57

Rea Contracting

$7,843,543.47

CC Mangum

$8,616,892.95

Thompson Contracting

$9,161,473.26

 

While Mountain Creek Contractors submitted the lowest responsive bid, there is some concern from staff on whether it is the lowest responsible bid. Staff’s concerns center around the contractor’s experience, capacity, location, and workload. These concerns are described in greater detail.

 

Experience

While Mountain Creek Contractors has experience building culverts and bridges, they have no experience building 1.5 miles of a 4 lane, median-divided roadway in an urban setting. Their list of equipment and past projects reinforces this background of specialization in culverts and limited experience in road construction. Staff is concerned that they will not have the necessary background to coordinate the different elements of this work, or the necessary equipment to complete the work.

 

Capacity to do work in-house

As a minimum, the Town requires all road contractors to self perform 50% of the total work. This requirement prevents the sub-contractors from dictating the schedule of a project, and is also a good indicator of the contractor’s ability to step in and perform work for an underperforming or negligent sub contractor. Staff is still reviewing the scope of Mountain Creek’s work, but it does not appear as though this threshold is met.

 

Capacity to do this magnitude of work

Mountain Creek Contractors has never pursued a job this big as the prime contractor. By their admission, this project would replace four other projects and would be the focus of their work effort for the tenure of the project. Staff is concerned that the pooling and maximizing of these resources may leave little room to handle peak or emergency demands.

 

The majority of Mountain Creek’s fleet is centered on their specialization in culvert construction. Contractors hired on the Town’s other major road projects have had a broader array and a deeper pool of equipment. Staff does not consider the amount of equipment for other activities, such as grading, to be sufficient for backup or peak demands.

 

Workload

While conducting reference checks, staff discovered Mountain Creek Contractors were absent from two job sites for extended periods of time. In one case, the absence was for three weeks and in the other case the absence was for three and a half months. In the opinion of the references, Mountain Creek Contractors may have overextended their resources by taking on too much work. It is uncertain if this peak has passed, but the past evidence of this experience is a cause of concern.

 

Citizen Involvement

By its nature as an “open site,” road construction involves a significant amount of interaction and scrutiny by the public and the media. Cary’s record of responsiveness to citizen’s concerns and media’s requests only magnifies this interaction. On this section of Tryon Road, the contractor will manage approximately 20,000 cars a day and interact with approximately 60 different families and businesses along the project. Mountain Creek Contractors have typically been employed in rural locations or as a sub-contractor to a larger company. These experiences would typically insulate the contractor from citizen interaction and media contact, and they do not represent the experience on other road projects staff has managed throughout the Town.

 

Location

Mountain Creek Contractors are headquartered 2 ½ hours away in Catawba, North Carolina. They plan to rent a yard to store their equipment for the job and plan to have the project manager visit the site twice a week. Should the need arise during emergency or high demand situations, the ability to get additional equipment or an acting officer will be hampered by this distance. Staff requires 24-hour access to, and immediate response by, a contractor’s officers.

 

In summary, while Mountain Creek Contractors has a good reputation for their craftsmanship on culverts, staff feels this bid is overstepping their capabilities on a large, high-profile project and warrants the consideration of the next lowest bidder. Staff would consider Mountain Creek Contractors for a smaller road widening project on future bid awards. Rea Contracting has the experience of performing this