MINUTES OF A PUBLIC HEARING HELD BY THE MAYOR AND COUNCIL OF THE TOWN OF CHAPEL HILL, NORTH CAROLINA, MONDAY, JANUARY 30, 1995

Mayor Broun called the hearing to order. Council Members in attendance were Joyce Brown, Joe Capowski, Mark Chilton, Pat Evans, Lee Pavão, Barbara Powell, Jim Protzman and Rosemary Waldorf. Also in attendance were Town Manager Cal Horton, Assistant Town Managers Sonna Loewenthal and Florentine Miller, Finance Director James Baker and Town Attorney Ralph Karpinos.

Item 1 Follow-up on Community Incident of January 26th

Mayor Broun said staff would make a brief presentation this evening concerning last Thursday's tragic events. Noting that four citizens had asked to speak on the matter, Mayor Broun said he did not believe that this evening was the best time for citizen comment.

Mr. Horton said the Town's sympathies and hearts went out to the families and friends of persons effected by last Thursday's events on Cobb Terrace and Henderson Street. He stated that the Town had received a great deal of support and assistance from a number of local law enforcement agencies. Mr. Horton said he was very proud of the Town's Police Department and the community's support for all involved in the incident.

Police Chief Ralph Pendergraph said the department's investigation of the shootings allegedly perpetrated by Wendell Williamson continued. He added that the department was working on a number of issues and concerns related to the shooting incident.

Mayor Broun thanked the Police Department and its officers for displaying a consistently high degree of professionalism, courage and human caring exhibited during the trying events of last Thursday.

Item 2 Public Hearings and Forums on Budget-Related Matters

Mr. Horton said it was likely that there would be major reductions in federal funding for transit and housing programs during the next fiscal year. He also said it was quite likely that the General Assembly would eliminate the intangibles tax. Mr. Horton stated that total funding reductions could result in a loss of 3 to 3 1/2 cents in the Town's property tax rate. He noted that the staff would nonetheless prepare a zero property tax increase budget as directed by the Council at their January 14th planning session.

Joann Shirer, Chairperson of the Public Housing Residents Council,

requested the Council's support and assistance in providing speed bumps, drainage, canal excavation, fencing improvements and landscaping at a number of public housing communities.

Robert Gwyn, representing the Interchurch Housing Corporation, requested Town funding for roofing repairs at the Elliott Woods and Chase Park housing communities. Mr. Gwyn said the two communities provided necessary housing for low-income persons. He asked that the Council favorably consider his organization's funding request.

Frank Loda urged the Council to provide funding for after-school activities in the Chapel Hill-Carrboro School system. Dr. Loda stated that after school programs were a necessity rather than a luxury. He also said it was very important for communities and schools to work together to address the needs of young people.

Susan Hayden stated that her autistic daughter was currently enrolled in the after-school program. Ms. Hayden said the program was very beneficial since it marked the only part of the day during which her daughter was in a mainstream classroom setting. She urged the Council to provide funding for the after-school program.

Mary Ann Chomen, representing the Junior League of Orange and Durham Counties, said the after-school program provided a number of exciting and unique educational programs at no cost to participants. She requested the Town's financial support for continuation of the after-school program.

Donna Dyer, Executive Director of the Orange Community Housing Corporation, requested the Council's assistance in providing funding for the new affordable housing projects.

Climmon Jefferson, a resident of Piney Mountain Road, requested that the Council provide capital improvement program funding for sidewalks along Piney Mountain Road. Mr. Jefferson said the sidewalks would offer a measure of protection for children and adults.

Joe Herzenberg ask the Council to continue the Town's current service levels. Mr. Herzenberg stated that citizens appeared to be quite satisfied with the quality and level of Town services. He also requested that the Council take care in raising parks and recreation fees to assure that program participants were not excluded due to fiscal constraints. Mr. Herzenberg said the Council might also wish to consider moderate increases in bus fares and pass prices.

Christine Quigley, representing Chapel Hill Alliance of Police Spouses (CHAPS), said her organization was concerned about staffing (levels) and the type of equipment used by the Town's Police Department. She requested the Council's assistance in addressing safety-related concerns of Town police officers.

Ted Parrish expressed appreciation to the Council for their support of the Knolls Development Association's neighborhood revitalization programs. He said it was very important for the Council to continue its commitment to providing affordable housing opportunities in the Town. Mr. Parrish also said he supported the Manager's recommendation concerning the use of community development funds.

Pauline Dodd, a resident of the Weaver Dairy Road area, suggested that sidewalk improvements be made along Weaver Dairy Road to accommodate the safety of area pedestrians. Ms. Dodd requested the Council's support in providing funding for the project as soon as possible.

Robert Nau said he echoed Mr. Jefferson's earlier remarks about the need for a sidewalk along Piney Mountain Road between the Coker Woods neighborhood and the Eastwood Road housing community.

Steve Wallace expressed concern that the Town had an overabundance of police officers. He also distributed information questioning the effectiveness of the Drug Abuse Resistance Education (DARE) program currently used in area schools.

Robert Humphreys asked the Council to consider funding all or a portion of costs for Christmas decorations in the downtown area. He noted that the existing decorations were quite old and warranted replacement as soon as possible.

Mary Bushnell, President of the Chapel Hill-Carrboro Sister Cities Board of Directors, requested that the Council consider increasing its fiscal support of the Sister Cities program by $300 from $300 to $600, with the additional funds being used for community awareness programs about the Town's sister city relationships with San Jorge, Nicaragua and Saratov, Russia.

Lewis Miles, President of the Colony Woods Neighborhood Association, said many of his neighbors were interested in upgrading street lighting in the Colony Woods area. Mr. Miles stated that once a neighborhood street lighting committee was formed, it would be willing to work with the Town in addressing lighting-related concerns.

Mayor Broun inquired whether any other citizens wished to address the Council on budget-related matters. Hearing no other speakers, Mayor Broun inquired about the next steps in the budget development process. Mr. Horton presented an overview of the proposed schedule, noting that the next public forum would be held on March 29th. He added that the anticipated budget adoption date was June 5th.

Council Member Capowski requested elucidation on the purpose of HOME program funds. Mr. Horton said the staff was currently seeking public input on the possible use of these funds through vehicles such as this evening's hearings and forums.

Council Member Waldorf requested a follow-up report on whether community development funds could be used for after-school programs. Council Member Waldorf said she was interested in sidewalk matters, particularly Piney Mountain Road. She requested that staff provide a cost estimate for temporary asphalt sidewalks along Piney Mountain Road.

Council Member Powell inquired whether the after-school program was only for developmentally-delayed and at-risk youth. Kim Hoke, Assistant to the Schools Superintendent, said the program was open to all students. She added that many of the program's enrollees were children who's parents were not at home during afternoon hours. Council Member Powell inquired whether there were any program enrollment or participation fees. Ms. Hoke said there were no fees charged in the Chapel Hill-Carrboro School District. She added that when the Orange County Schools had recently started charging a fee for its after-school program, enrollment had dropped from over 200 participants to just 9. Council Member Waldorf inquired about the nature and amount of the fee charged by Orange County. Ms. Hoke said she would look into these matters.

Council Member Brown requested additional cost information about sidewalks along Weaver Dairy Road.

Comments from the budget-related hearings and forums were referred to the Manager by consensus of the Council.

Item 3 Hearing on Proposed Amendment-Community Development Program

Long-range Planning Coordinator Chris Berndt provided an overview of the objectives of the community development program. She stated that the staff's preliminary recommendation was for $132,800 of funds to be used for neighborhood revitalization projects in the Knolls neighborhood. Ms. Berndt added that the Housing and Community Development Board had considered the matter at its January 23rd meeting and concurred with the staff's recommendation.

Mr. Horton requested that Dr. Parrish's remarks from earlier in the meeting be incorporated into the record. Mayor Broun concurred.

Harvey Reid emphasized the importance of the Town continuing to provide a variety of opportunities for low and moderate-income persons, particularly in the area of economic development.

Council Member Evans requested that staff provide follow-up information on funding of revolving loan and employment programs.

Council Member Powell expressed her concurrence with these concepts.

COUNCIL MEMBER POWELL MOVED, SECONDED BY COUNCIL MEMBER PAVÃO, TO REFER COMMENTS TO THE MANAGER. THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

Item 4 Public Forum on Legislative Matters

Mr. Horton stated that the objective of this evening's forum was to receive suggestions from citizens and direction from the Council concerning possible local legislative bills for consideration by the General Assembly. He briefly reviewed the proposed timetable, noting that another public forum on potential legislation would be held on February 27th.

Robert Gwyn said he had a friend who was a member of the National Rifle Association (NRA) who felt that more individuals should own guns for their personal protection. Mr. Gwyn said he respectfully disagree with his friend. He rhetorically inquired why people who drove automobiles, a potentially lethal instrument, were required to be licensed, while people who owned guns were not required to have licenses. Mr. Gwyn said he hoped the Council would take a leadership role in initiating a community discussion about guns.

Dr. Jonathan Kotch requested that the Council call a public referendum on more restrictive control of handguns within Town limits. He noted that the State constitution currently limited the actions communities could take regarding guns. Dr. Kotch stated that results of a recent Carolina Poll indicated that most (80-90%) citizens favored the registration of weapons and restricting the sale of handguns.

Joe Herzenberg said he thought it was wrong that Town ordinances currently permitted individuals to carry large guns in neighborhoods. He requested that the Council explore the possibility of legislation in this regard. Mr. Herzenberg also suggested that a public education program on the proper use of the 911 emergency telecommunications system would be a good idea.

Noting that the elimination of intangibles tax might result in a loss of up to $640,000 to the Town's coffers, Roland Giduz suggested that the Council consider requesting an option for a tax on the cost of certain big-ticket entertainment events. He noted that the State of North Carolina currently levied a 3% tax on all entertainment tickets. Mr. Giduz said that if the State would permit local governments to levy a 3% local option tax, this would offset losses from the elimination of the intangibles tax. He added that the City of Pittsburgh, Pennsylvania had a 10% local entertainment tax which generated a total of $11 million in revenue last year. Mr. Giduz requested that the Council support a local option tax on entertainment tickets.

James McEnery expressed concern that the Town had received the same level of fire protection funding from the State of North Carolina since the program's funding inception in 1982. Mr. McEnery said the estimated annual cost for fire protection of the University and UNC Hospitals was between $583,000 and $640,000. He stated that the estimated total subsidy to the University by Town taxpayers over this twelve year was over $4 million. Mr. McEnery also estimated that it would cost the University over $1 million per year to operate its own fire department.

Martha Drake presented a petition to the Council containing approximately one thousand signatures. Ms. Drake said the petitioners supported a ban on guns within Town limits. She stated that the United States Supreme Court had recently upheld the constitutionality of similar gun bans in two communities in Illinois. Stating that many potentially dangerous persons had been deinstitutionalized in recent years, Ms. Drake said it was important to take steps to keep guns from falling into the wrong hands. She noted that Great Britain required gun owners to be licensed and to keep their weapons locked up.

Amy Kirkhum, a UNC student, stated that guns kept in homes for self-defense purposes were six times more likely to be involved in incidents which killed friends or family members than in killing a burglar. She suggested that the Town provide opportunities for persons to voluntarily turn in their guns. Ms. Kirkhum also stated that well-publicized stiffer penalties for gun offenses served as the best deterrent to gun-related crimes.

Council Member Protzman inquired about the process for consideration of the North Carolina League of Municipalities proposed legislative program. Mr. Horton said the staff welcomed comments from the Council concerning the proposed program. Council Member Protzman said he did not think the League's program should support the proposed State lottery.

Noting the likely discontinuation of the intangibles tax, Council Member Brown inquired about the likelihood of additional erosion in property taxes. Mr. Horton said although the General Assembly might consider special exemptions for some properties, the fairest property tax playing field was a level one.

Council Member Evans requested that staff prepare a short paragraph on inclusionary zoning. Mr. Horton said staff would do so.

Noting the recent changes in house and senate leadership in the General Assembly, Council Member Capowski inquired about the best means for staying abreast on legislative matters. Mayor Broun stated that the North Carolina League of Municipalities did a good job of monitoring the legislature's activities. Mr. Horton said past legislative delegation had preferred to start dialogues based on the wishes of local constituents.

Council Member Powell said she favored looking into the possibility of a local option entertainment tax. Council Member Powell said she did not think such a tax would dissuade many people from attending entertainment events. She requested a follow-up report from staff on a local entertainment tax option.

Council Member Brown said she supported the remarks made earlier concerning the proposal for an entertainment tax. She inquired why the General Assembly had not adopted the Town's request on this matter during its 1993 session. Mr. Horton said the staff would do the best it could to attain additional information.

Council Member Chilton expressed appreciation to citizens for their thoughtful remarks relative to gun control. Council Member Chilton said he hoped the Council would take a strong look at options for

controlling the possibility of persons walking Town streets with weapons.

Council Member Chilton also suggested that the Council consider amending the Town Charter provisions concerning the filling of vacancies on the Town Council. He noted that the change he was proposing would make it possible for candidates and citizens to know the number of vacant Council seats earlier in the elections process. Mayor Broun suggested that the Council review and consider this possibility.

Mayor Broun said although he shared the concerns of citizens about the State inadequately compensating the Town for fire protection,

he could also assure citizens that vigorous steps had been taken to request increases in this funding. Council Member Capowski said the most important step for the Council to take was to discuss legislative proposals with the members of the local legislative delegation. Council Member Brown inquired about next steps in the process. Mr. Horton said the staff would prepare a follow-up report, with comments by the Attorney as appropriate. He also stated that the staff would make recommendations on items which might be carried forward in the process.

Council Member Waldorf said new legislators in the General Assembly appeared to be moving toward structural changes relative to tax increases. She urged the Council to be judicious and pragmatic in making legislative requests.

Council Member Protzman inquired whether it had been past practice to have public hearings on all proposed state legislative matters. Mr. Horton said it had been the preference of past local legislative delegations to have local public hearings on proposed legislative matters.

COUNCIL MEMBER EVANS MOVED, SECONDED BY COUNCIL MEMBER PAVÃO, TO REFER COMMENTS TO THE MANAGER AND ATTORNEY. THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

COUNCIL MEMBER CHILTON MOVED, SECONDED BY COUNCIL MEMBER PROTZMAN, THAT THE COUNCIL GO INTO CLOSED SESSION FOR THE PURPOSES OF DISCUSSING TWO LAWSUITS. THE PARTIES TO ONE OF THE LAWSUITS ARE CHENG-YIN FAN; THE TOWN OF CHAPEL HILL; CALVIN HORTON; GEORGE SMALL; LARRY TUCKER; AND TOM BICK. THE PARTIES TO THE OTHER LAWSUIT ARE SHAUNA L. WINSTON; CARY PSYCHOLOGY, INC.; CHAPEL HILL POLICE DEPARTMENT, TOWN OF CHAPEL HILL; W. CALVIN HORTON; AND

RALPH V. PENDERGRAPH.

No report followed the session. The meeting concluded at 8:52 p.m.