Joint Meeting of The
Cary Town Council and Wake County Board of Commissioners

May 11, 2007
Cary Town Hall , Conference Room No. 10035
316 N. Academy Street , Cary

Mayor McAlister called the meeting to order at 10:11 a.m.

Cary Town Council Members Present: Mayor Ernie McAlister, Council Members Ervin Portman, Julie Robison and Nels Roseland

Wake County Board of Commissioners Present: Chair Tony Gurley, Vice Chair Paul Coble, Commissioners Lindy Brown and Kenn Gardner

Absent:  Mayor Pro Tem Smith Jack Smith, Council Members Marla Dorrel and Jennifer Robinson, Commissioners Harold Webb and Betty Lou Ward

Commissioner Joe Bryan arrived late and his arrival is noted in the minutes

Mayor McAlister stated that the purpose of the meeting was for the two boards to discuss several items in which they have a common interest, talk about ways council can work with the commissioner to assist in what is going on, and to share concerns in Cary .  Chair Gurley added that they will discuss any individual concerns at the end of the agenda.

School Issues

Mayor McAlister said that council has been supportive of the school board and recognize that school overcrowding is a capacity issue.  He said that the best roll they can play is to try to tackle the root cause of that and build more schools.  As development occurs in the Town, Cary works hard to make land available for new schools.  Most recently the town conveyed 53 acres in the Cary Glen area to the school board—part of it at no costs and the rest at a significantly reduced cost—to allow a new elementary and middle school to be built.  He said that council has discussed land banking for schools and ways to make that effective and have learned that things of that nature are best pursued on a countywide basis.  Mayor McAlister said that balance is needed among all municipalities in Wake County and council would like to discuss how to assist in a countywide effort to get to the root of the cause of the school capacity issue and not get caught up in dealing with just the symptoms.  He said that Cary has stayed out of the assignment issue because the responsibility for management and policy decisions for the schools lies with the school board.  

Mr. Gardner said that schools are built in municipalities and the county commissioners don’t control that process.  He said that Cary has been on the cutting edge to something positive, and one solution to the problem would be to build on what Cary is beginning to do.  He said it would be beneficial to ask the developer of larger developments to identify school sites prior to approving the development, with the stipulation that the developer would sell those sites at the same price he bought the land for to the town or school board.  Mr. Gardner said that help avoid causing the school system and county to fund the fast growing areas with expensive land deals. 

Mr. Roseland said cities today have the legal authority from the general assembly to develop school holding spots and there is a cost factor involved that needs to be balanced out. 

Mayor McAlister said there is an 18-month limit that keeps Cary from being able to hold property available longer than that.  He asked if anything can be done to get past that.  Town Manager Bill Coleman said that they can try to get special legislation to lengthen that period of time, and work with the school board and developers to take down the property more quickly.  He said that land banking requires an effort be made up front to identify areas where school sites are needed so that there is not an arbitrary taking of land any time a development occurs.  Mr. Coleman said if that process is followed the18-month period shouldn’t be a problem. 

Ms. Brown stated that there is an immediate need to address capacity for next year.  She would like to see municipalities utilizing what’s already available, working diligently with the business community and private partnerships to secure vacant businesses for consideration of using some of them as ninth grade centers, as centers for the special population, middle schools or elementary schools.  She said they need to use every alternative to address the immediate need. 

Mayor McAlister said that Cary has a good example of that at the former Best Pak site which is being converted.  He said it was in an area where there was a demonstrated need.  Mr. Gardner added that Lufkin is another example.  He said Wake County has been proactive in some relationships and Lufkin is a national model in reuse of facilities. 

Mrs. Robison said that all municipalities should be challenged to identify sites that can be converted for reuse to meet some of the existing short-term gaps.  There should be some type of public information campaign to showcase those models and help to trigger innovative thinking on available sites. 

Mr. Coble said that each town needs to be challenged for how quickly they can approve schools.  Mr. Gardner said another possible variable is waiving the approval process for schools in municipalities and allowing the county to approve the schools.  It could either be under the county or have a very minimal impact relationship with each town. Mrs. Robison said that staff would need to continue to discuss the implications.  Mr. Portman suggested the possibility of an establishing agreement with municipalities for a fast track program and having those parameters identified. 

Mr. Portman said that no one authority can fix the problem.  Schools are being built too late and cost too much.  He is looking to political leadership to suggest a solution of what it will take to be fiscally responsible and build seats sooner rather than later. 

Ms. Brown said they want to make sure that Wake County is the best place to live and raise children, and ensure that quality of life is sustained.  She said constant dialogue among elected officials is critical to being an effective leader. 

Chair Gurley said that the county commissioners are responsible for providing the financing for schools, not building them.  He said it is difficult for the school system to separate programming from facilities construction.  He said believes that the county should be responsible for building schools and the school system responsible for education, policies and programming. 

Mr. Bryan arrived at this point in the meeting at 10:40 a.m.

Mrs. Robison asked about tackling the county-wide problem of financing.  She said more money is needed no matter who builds the schools and an equitable approach needs to be defined.  Chair Gurley said there is a billion dollar bond waiting to be spent; money in that bond exists to pay for land banking through 2012.  He said that the commissioners have approved local options and are pursing those with the legislative delegation.  They also support the North Carolina Association of County Commissioners’ request for a transfer tax, impact fees and sales tax that would go to the public in a referendum seeking the approval to implement those countywide. 

Mrs. Robison said that citizens need to be informed about council’s pushing the passage of Senate Bill 610.  Mr. Portman referenced the News and Observer article on the bond issue stating that the article did a good job of identifying the property tax impact and the current funding mechanism.  He one of the best things they can do in terms of cooperation—county, municipal, state, and school board—is to make sure it is reinforced in front of the public.  He said people want the problem solved; they may not like the options but it would help for the officials to do a good job of presenting them. 

Mrs. Robison said that council discussed with the school board at the council/staff retreat the build out plan for Wake County .  She suggested that the path forward might be a joint working session with other municipalities that looks at the maps showing plans and possibilities, so that municipalities have a fuller and more complete understanding of build out, and the concrete steps to be taken by each of the different bodies.

Mayor McAlister asked about the school board’s reaction to the county taking on the responsibility for the building schools and allowing the school board to focus on education.  Chair Gurley said they would be opposed to the idea. 

Mr. Gardner said that the costs for all of the buildings owned by the schools system and built over the last hundred years ads up to about $2.4 billion dollars of facilities.  He said since he’s been a commissioner, their board has approved $1.9 billion worth of construction over a six year period.  He said the community is stepping up under the old model of funding but there is a breaking point that needs to be addressed.  They have a Citizens Facilities Committee that the responsibility to look at right sizing facilities.  In reports from the committee on comparison to other systems across the nation the construction time is identical and cost per square foot is about average.  He said the only place to improve the system for delivering the building faster is with the inspections and permitting phase which can take 18 months in some cases.

Mr. Roseland said we have a divided local delegation that kills any credible bills. With regard to the funding, he doesn’t know where Senators Stevens and Hunt fall on the continuum of supporting Senate Bill 610.  He suggested contacting the legislative delegation to get the bill moving. 

Mayor McAlister said they have discussed problems, possible solutions, and a path forward to stay engaged in the dialogue.  He said they need to stay involved and not step away from the issues once the current crisis is solved; they need to keep working on solutions. 

Chair Gurley said they currently have a budget request for $305 million for the next year for operating the public school system in Wake County ; of that request, $75 million is a county responsibility for facilities.  The other $230 million is to supplement the state’s responsibility for maintaining the schools.  He said funding for schools is also a municipal responsibility.

Mr. Portman said that he would like to see public informational meetings that cross boundaries and drive the issue to educate people.  He asked if there is a problem with those types of community meetings to discuss the root cause.  Mayor McAlister said he doesn’t see that as a problem but they need to be prepared for the challenge.  He said they are looking at big picture issues to draw solutions and they need to ensure that their effort stays focused on those big picture issues to solve the problem long term. 

Hotel/Motel Food and Beverage Tax Distribution

Mayor McAlister said that Cary has been the beneficiary of the hotel/motel food and beverage tax distribution in numerous ways, such as USA Baseball and SAS Soccer Park .  He said Cary has been awarded $10 million for their aquatics effort, and he said it’s important to pay attention to how those funds are split up. 

Ms. Brown left at this point in the meeting at 11 a.m.

Chair Gurley said that the commissioners are cognizant that the money goes throughout the county when allocating projects for funding.  He said that the $10 million originally designated towards the aquatics center is designated for Cary ; if Cary changes projects he would support that money going to another qualified project that still meets the criteria. 

County Manager David Cooke said his assumption is that since Raleigh City Council and Wake County Board of Commissioners approved the project if the project changes it would require both boards approval. 

Mayor McAlister said there was a concern that if the money wasn’t used for aquatics it would go away.  He hopes that while council works through the process the money stays and that another project fulfilling the requirements of the interlocal fund would get a favorable response from both boards. 

Chair Gurley said that Mayor Meeker indicated his support of that.  Mr. Gardner said that he fully endorses any project that Cary decides would be a good use for the $10 million to satisfy the Town’s generation of a business.  He would actively oppose any efforts to reallocate the money away from the Town of Cary or back into a general fund.  He said the issue is not whether Cary should use it on the aquatics project; it is that the $10 million is something both boards felt was due Cary for their use as they see fit.  Mr. Bryan added that he hopes there will be another project soon that would benefit Cary and build tourism. 

Mrs. Robison asked for more specificity when Cary needs to bring forward a different project to keep their position with the funding secured.  Mr. Gardner responded that Cary ’s position is secure.  He said sooner rather than later is good. 

Mayor McAlister asked about the current funding status.  Mr. Cooke said that the fund is very strong; revenue streams have grown to double digits and the fund is very strong.  He said 85 percent of the revenue stream goes into the convention center financing plan and the remaining 15 percent is allocated to Cary and other projects.  The City of Raleigh and the county have agreed to review the convention center financing in the first quarter of 2009 to determine whether it is meeting or exceeding its original intent.  The convention center is scheduled to open in August 2008 and the bookings are well ahead of what’s been planned.

ETJ AND County Development Standards

Mayor McAlister said it’s been a while since Cary has asked the county for an expansion of Cary ’s ETJ.  He said there was a request a while ago which was withdrawn and it has not been revived.  Mr. Cook said Cary now has an annexation plan in place and it is a routine process. 

Open Space and Library Coordination

Mr. Roseland said that Cary partnered with Wake County in contributing money, capital property, and road connections to build a new western Cary library.  He said there’s been a lot of interest in the downtown community to upfit and improve the small library on Academy Street .  Chair Gurley said it is one of the library’s currently recommended for upgrading.  Mr. Roseland asked if a similar partnership as was done before would help to speed up the process.  Chair Gurley responded that it would be a great partnership.  

Mr. Roseland said with the rate of development verses the rate of preservation there will be challenges for open space.  He said open space preservation is a straightforward way to balance the different demands.  He asked if there is a way to outsource Cary ’s open space program to partner with Wake County ’s program.  He said it would better leverage the fund and use the county’s experts to better the program.  Chair Gurley said the that the county’s open space program is focused toward protecting the stream corridors and critical watershed areas—their open space money is dedicated to protecting water quality.  He said the county does partnerships when those two things can be combined—the open space that the municipality wants to protect and the open space is located on a stream corridor protecting water supply.  He said that when Cary coordinates their desires with the county’s focus they have great success with the partnerships.  Mr. Bryan said they can coordinate with the opens space committee and see if there are ways to improve the county’s program and compliment a municipality’s.  He urged continued discussion and dialogue to figure ways they can both work better together. 

Mayor McAlister said that residents at Carolina Preserve, a newly developed area of Cary not in Wake County , use the library recently built on Louis Stevens Road .  He said they were disappointed that as non-county residents—Carolina Preserve is in Chatham County—they had to pay $25 per year to use that facility even though the are Cary residents.  He asked if the money Cary contributed to the library could buy the opportunity for Cary citizens to use that library without having to pay the fee.  Mr. Gardner said it is an interesting question because they are not paying taxes to Wake County and Wake county is the one who builds the libraries.

Individual Comments

Both boards agreed that this meeting was a positive step and they need to have continued dialogue. 

Mr. Portman said it is critical to reach across lines and he will do what he can in terms of community education and discussion with school issues without getting co-opted into individual symptoms.  He will work with the county and school board to make sure he has accurate facts and information. 

Mr. Gardner said that the commissioners and Cary have a good working relationship.  He said the Stormwater Task Force is continuing to meet and will roll out broad recommendations at the end of the summer.  He said in a reset presentation about the little river reservoir, which is our last drinking water supply source, they had a discussion about how that reservoir and storm water merge and interact with recommendations.  He said there is a need for a continued dialogue. 

Mr. Bryan said that he is excited about the continued leadership Cary exhibits and the two boards need to meet on a yearly basis.

Mrs. Robison said she would be interested in ongoing dialogue and council is interested in pursing intermittent conversations with other municipalities.  She said they need an intrajurisdictional task force. 

Mr. Gurley said that the commissioners represent everyone in the county and they are receptive to working with the other municipalities.

The meeting adjourned at 11:32 p.m.