MINUTES OF PUBLIC FORUMS ON THE PROPOSED 1993-1994 BUDGET AND RELATED MATTERS, THURSDAY, JANUARY 21, 1993 AT 7:30 P.M.

Mayor Broun called the meeting to order. Council Members in attendance were Julie Andresen, Joyce Brown, Joe Capowski, Mark Chilton,Joe Herzenberg, Barbara Powell, Alan Rimer and Arthur Werner. Also in attendance were Assistant to the Mayor Lisa Price, Town Manager Cal Horton, Assistant Town Managers Sonna Loewenthal and Florentine Miller, Finance Director James Baker, Parks and Recreation Director Mike Loveman, Housing and Community Development Director Tina Vaughn and Town Attorney Ralph Karpinos.

Public Forums on Proposed Budget, Capital Improvements Program

and Community Development Program

Mr. Horton briefly reviewed the Town's financial condition, noting that the staff's budget projections made last year were on target. He stated that funds would be needed in the 1993-1994 budget to cover changes in market conditions for employee compensation, greater operating costs for the new library building, waste disposal cost increases and computer equipment for the Police Department. Mr. Horton also noted that a thirty percent loss was estimated in the Town's Transportation Fund, amounting to a $300,000 shortfall. He stated that a total shortfall of $900,000 was estimated.

Valerie Broadwell noted that the proposed budget and Capital Improvements Program include funding for jogging, pedestrian and soccer facilities at the Glen Lennox field area. She added that area residents should be involved in the planning process, especially regarding traffic generated by the proposed facilities.

Lightning Brown requested that sidewalks be constructed in the North Columbia/Longview/Stephens Street area. He stated that walking in the area was quite hazardous due to increased traffic on streets. Mr. Brown suggested that either capital improvements or Community Development funds could be used for the project. He urged the Council to emphasize adequate infrastructure, such as the provision of sidewalks, for neighborhoods. Mr. Brown stated that a group home proposed for the neighborhood added to the importance of providing the sidewalks in a timely manner.

Thomas Watson expressed concern about the community and his personal safety.

R.D. Smith requested clarification about the proposed Transportation budget and an anticipated cost overrun for the Town's library project. Mr. Horton said Mr. Smith's impression about the library project was likely from a misleading article in a local newspaper. Noting that a follow-up article had corrected the earlier misunderstanding, Mr. Horton said the library project was on budget and on schedule. Concerning the Transportation budget, Mr. Horton said efforts continued to lobby State and Federal officials, requesting that the Town receive similar or increased funding in future years.

Joel Harper, Executive Director of the Chapel Hill-Carrboro Chamber of Commerce, noted that many of the North Carolina High School Athletic Association's State Championships were currently held in Chapel Hill. Mr. Harper noted that some other communities were competing to relocate some of the championships to their community. He requested that the Council dedicate five percent of gross total hotel-motel tax revenues to the State Championships as a gesture of support and recognition, with the intent of retaining the Championships.

Council Member Herzenberg requested that the Manager review the schedule for public comment on the proposed budget, Capital Improvements and Community Development programs. Mr. Horton outlined the proposed budget schedule, noting that the next public forum was scheduled on March 16th, followed by several budget work sessions, with possible budget adoption scheduled to occur on June

7th.

Council Member Capowski inquired whether it was too early for physical improvements to occur at the Glen Lennox fields. Mr. Horton noted that some improvements such as the establishment of one full-sized and two practice fields had occurred. He added that there had been no progress in efforts to learn of the University's future plans for the site. Council Member Capowski noted the importance of addressing cars accessing the site in the future. Council Member Capowski also inquired about the likelihood of funding for the paving of Ward Street, as requested by several residents of the street. Mr. Horton noted that the capital improvements would need to be concentrated on the maintenance of existing facilities. He added that it was not entirely out of the question that the project could be funded. Noting that Orange County had not completed its property revaluation process, Council Member Andresen inquired whether this process would be completed by March. Mr. Horton said this was the anticipated schedule. He stated that this information would be useful in preparing the preliminary budget report.

Council Member Andresen requested that the Manager's preliminary budget outline options for possible reductions in services. Mr. Horton said it was his intent to bring a variety of options to the Council, including the cost of reducing or maintaining services. Mr. Horton noted that it might not be possible to identify $900,000 in program reductions options that would be acceptable to the Council. Council Member Brown inquired about the feasibility of constructing sidewalks on North Columbia Street between Longview and Stephens Streets. Mr. Horton said staff would evaluate sidewalk priorities and possible funding for this project.

Council Member Brown requested that staff investigate the efficiency of Public Works operations, particularly recycling and refuse collection routes. Noting that the number of routes had been reduced in the current fiscal year, Mr. Horton said staff would be glad to evaluate this situation. Council Member Herzenberg suggested that Ward Street might receive mat and seal if funding were unavailable for paving.

COUNCIL MEMBER HERZENBERG MOVED, SECONDED BY COUNCIL MEMBER BROWN, TO REFER COMMENTS ON THE THREE BUDGET-RELATED PUBLIC FORUM MATTERS TO THE MANAGER. THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

Item 5 Requests for Local Legislative Bills

Mr. Horton stated that this evening's forum was to receive citizen comments and suggestions for legislative requests for possible consideration by the General Assembly. He said that proposals suggested to date included provisions for the recall of elected officials, payments-in-lieu for recreation space, a real estate transfer fee for greenways and the use of a device to immobilize vehicles ("Denver Boot").

Roland Giduz said he had urged the Council's support of an entertainment tax for the past twelve years. He requested that the Council consider an entertainment tax as another source of revenue by requesting authorization from the General Assembly. Mr. Giduz said the Council could also propose state-wide authority for the tax. He added that the only apparent roadblock to the proposal was opposition by the University of North Carolina. Mr. Giduz also said past estimates of revenue for the entertainment tax had been $600,000 annually. He expressed hope that the Council would embrace the concept and request the authorization.

Fred Meier, a member of the Greenways Commission, said the Commission recommended several possible dedicated funding sources such as a land transfer fee, the sale of unnecessary Town lands, and the use of bonds. Mr. Meier said the Commission requested that the Council assist in identifying alternative revenue sources.

John Graham said he hoped that the Council would support Mr. Giduz's proposal concerning an entertainment tax. Dr. Graham also said he supported the proposal concerning the recall of elected officials.

Mr. Karpinos said the proposed draft concerning the recall of elected officials was drafted on the basis of preliminary comments received from the Council in October. He suggested that one change be made in the proposed draft legislation, stating that the Council could not appoint someone who had just resigned from the Council. Mr. Karpinos also noted that the State Supreme Court had ruled that the General Assembly could not add additional qualifications beyond those in the State Constitution.

Council Member Andresen requested that the staff provide follow-up information on the proposed transfer tax for greenways, the proposed entertainment tax and a prepared meals tax. Council Member Werner said it was important to have the support or neutral agreement of our neighboring jurisdictions for the Town's proposed legislative requests. Council Member Brown inquired about the priority assigned to the entertainment tax by the North Carolina League of Municipalities.

Council Member Herzenberg stated that the Council needed to discuss the number of signatures required to trigger a recall election. He noted that there was traditionally a very low voter turnout in uncontested Mayoral elections. Mayor Broun suggested changing the proposed wording to read "at the last contested Mayoral election". Noting that voter turnout in the 1991 election was much higher than that in 1989, Council Member Chilton suggested that possible recalls be tied to the number of voters in the actual election of seating. Council Member Rimer suggested that staff provide information on actual turnout in the five most recent municipal elections. Council Member Herzenberg said he would distribute an article to Council Members concerning suggested procedural safeguards for recall elections.

Council Member Capowski inquired whether the Denver Boot vehicle immobilization device would be used at locations such as area shopping centers. Mr. Horton said the device would generally be used in cases where there were repeated violations relative to metered parking on public streets. Mr. Horton added that some unusual circumstances might necessitate use of the Denver Boot device at area shopping centers and on other private property.

Council Member Herzenberg suggested that the proposed Charter revision concerning the recall of elected officials include a non-discrimination provision. He also suggested that the Council support the proposed four cent increase in gasoline tax proposed by a caucus of cities around the state with transit systems. Mr. Horton said it was appropriate to entertain this idea. Council Member Herzenberg requested that the Attorney draft legislation concerning the blockage of tap-ons for water and service in the rural buffer. Council Member Rimer said there were precedents in State law pertaining to riparian and non-riparian rights.

David Swanson said that fundraising efforts for preservation of the Chapel Hill cemetery continued. Mr. Swanson said a sample bill had been drafted requesting funding of the project by the General Assembly. Terri Swanson said the General Assembly had previously approved funds for a cemetery restoration and publishing of a directory. She requested that the Council support a similar effort for the Chapel Hill cemetery. Council Member Andresen inquired whether the Swansons were employed by the Town on a contractual basis for the cemetery preservation project. Ms. Swanson said yes.

COUNCIL MEMBER HERZENBERG MOVED, SECONDED BY COUNCIL MEMBER RIMER, TO REFER THE MATTER TO THE MANAGER AND ATTORNEY. THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

Item 6 Reuse of Existing Library Building

Mr. Horton said that once the new library building was completed, the existing twelve thousand square foot building would be available for community uses. He noted that this evening's public forum was the first opportunity for comment in the matter. Mr. Horton briefly outlined proposed uses of the existing building suggested by individuals and groups. He stated that staff welcomed additional proposals and looked forward to assessing them.

Council Member Andresen inquired about the possibility of putting the existing building up for sale. Mr. Horton said this was possible if the Council wished to do so. Council Member Herzenberg noted that Council policy had been to maintain the facility as a Town-owned building.

Council Member Andresen said that if increases in library operating expenses were appreciable, it would be necessary to think about ways to make up for projected operating shortfalls. Council Member Rimer said it was important to receive a rough appraisal of the value of the existing building. He also emphasized the importance of examining tradeoffs relative to possible future uses of the building.

Claire Baum, a resident of the 500 block of East Franklin Street, requested that the Council be sympathetic to the type of facility housed in the library building in the future. She noted that the area was a fragile residential district. Ms. Baum expressed hope that the Council would consider proposals that would not alter the character of the area.

Margie Pfaff, President of the Chapel Hill Historical Society, said the Society was anxious to have a portion of the available space used for a local history museum and offices for the Historical Society. Ms. Pfaff said the facility could serve as a placing for reading about and researching local history.

Pearson Stewart read a statement on behalf of Helen Allen. Ms. Allen's statement noted that the Historical Society had an impressive collection of file cabinet archives. Ms. Allen's statement also noted the variety of programs and services offered by the Society, including the public of books and calendars, monthly public meetings and indexing of the Chapel Hill Weekly for 1923 through 1955. Noting that permissible uses for the building were very limited, Mr. Stewart said he was personally appalled by the suggestion of selling the library facility.

Roland Giduz, a founder and charter member of the Chapel Hill Historical Society, expressed hope that the Council would not permit the library building to be used for generic uses which could be housed elsewhere in the Town. He requested that the building be used to preserve the community's unique character.

Julie Hepp, a realty specialist with the General Services Administration, requested that a portion of the building be leased for the offices of The Honorable Federal Judge J. Dickson Phillips, Jr.. She noted that the judge's chambers would require a total of 4,300 square feet, but would need to occupy the entire first floor for security reasons. Ms. Hepp said building renovations would be needed to block off access between the two floors of the building. She expressed appreciation for Council's consideration of the proposal.

Grainger Barrett, Chairperson of the Cable Television Advisory Committee, suggested that the lower floor of the library building could be used for a public access cable television studio and storage space. Council Member Werner inquired whether it was the cable franchisee's responsibility to provide space for these types of facilities. Mr. Barrett said this varied between franchisees and contracts. He noted that the Town's current cable television operator provided public access equipment and facilities. Mr. Barrett added that some improvements in production equipment and facilities had recently occurred. Council Member Brown inquired whether the proposal was to move the existing facility or establish a new one. Mr. Barrett said the request was to possibly consider moving the existing facility.

Jonathan Howes, Chair of the Library Committee, but speaking as a private citizen, said the existing library building was a community treasure, inadequate only in terms of space availability. He stated that the facility was intended for public purposes and to be a credit to the Town. Mr. Howes said the existing facility could be used as a place where the history of the community would be kept, measured and displayed. He urged the Council to keep the building in public ownership.

James Webb noted that he had originally been associated with the firm which designed the existing library building. He urged the Council to look beyond the pragmatic issues of fiscal policy to the need to historic preservation uses of the facility.

Council Member Werner said before any decision was made, the Council needed to understand the financial implications of whatever decision was made. He requested that the Manager provide a follow-up report on whether or not there were alternative locations for some of the proposed building uses.

Council Member Rimer said Mr. Stewart's use of the word "appalled" in his earlier comments seemed a little strong. Council Member Rimer said his earlier comments were not an indication that the library building should be sold. He noted that the building offered a very important tie to the community's history. Council Member Rimer said a likely conclusion of an economic analysis would be that a museum was a desirable use of the building. He added that a set of criteria was needed to determine the best use or uses of the building. Council Member Rimer also expressed concern that the building not be made into a fortress-like facility with blocked entrances.

Council Member Andresen emphasized the importance of understanding all financial ramifications of the decision. Mayor Broun noted that use of the building by The Honorable Judge Phillips for offices might be in keeping with the area's character. Council Member Brown said any decisions concerning the building needed to be long-term in orientation. Council Member Brown stated that she did not support spending a lot of time investigating the building's fiscal value if the facility were to remain Town-owned property.

Council Member Herzenberg said it was likely that any formal appraisal of the building would likely find a value less than the building's true worth to the community. He also noted that the building could possibly be used for several purposes, some of which were compatible with one another. Council Member Herzenberg also noted that it was likely that any future building uses would be considerably less intense than the present use. Council Member Herzenberg stated that he had met earlier in the day with a woman who had recently moved to the Town. He noted that the woman was concerned about the lack of continuity in terms of the Town's character and history.

Council Member Capowski requested that the staff provide an estimate of the building's worth. Noting that the forums had been well advertised, Council Member Capowski said he was disappointed that so few proposals for building usage had been received. He inquired how much space was being sought by the historical society. Mr. Stewart said no such specific determination had been made. Council Member Chilton said although he was not terribly intrigued about renting the top floor of the building to the General Services Administration, Town staff might be able to estimate rental receipts from such an arrangement.

Council Member Chilton expressed hope that the Town could use the facility for a local historical museum, to preserve and maintain the community's sense of continuity. Council Member Powell emphasized the need for the development of criteria for the decision-making process. She also requested that staff provide traffic estimates for the various proposals. Mr. Horton said this might prove very challenging since some of the proposed were not outlined in a very detailed manner. He stated that general estimates could be made using gross level assumptions. Council Member Rimer offered to develop some suggested criteria for consideration by the Council. Mayor Broun noted that the decision-making process could not be plugged into a computer model. Council Member Rimer said he realized that this was the case.

COUNCIL MEMBER RIMER MOVED, SECONDED BY COUNCIL MEMBER ANDRESEN, TO REFER THE MATTER TO THE TOWN MANAGER AND ADVISORY BOARDS AND COMMISSIONS. THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

The session concluded at 9:35 p.m.