SUMMARY MINUTES OF A WORK SESSION
OF THE CHAPEL HILL TOWN COUNCIL
WEDNESDAY, MAY 21, 2003 AT 5:30 P.M.
Mayor Kevin Foy called the meeting to order at 5:30 p.m.
Council members present were Flicka Bateman, Pat Evans, Ed Harrison, Mark Kleinschmidt, Bill Strom (left the meeting at 6:30 p.m.), Dorothy Verkerk, Jim Ward, and Edith Wiggins (left the meeting at 7:25 p.m.).
Staff members present were Town Manager Cal Horton, Assistant Town Managers Sonna Loewenthal and Florentine Miller, Town Attorney Ralph Karpinos, Assistant to the Manager Bill Stockard, Police Chief Gregg Jarvies, Assistant Fire Chief Robert Bosworth, Parks and Recreation Director Kathryn Spatz, Transportation Planner David Bonk, Sanitation Superintendent Harv Howard, Human Resources Director Pam Eastwood, Assistant Human Services Director Anissa Graham-Davis, Public Works Administrative Analyst Randy Ballard, Transportation Director Mary Lou Kuschatka, Finance Director Jim Baker, Planning Director Roger Waldon, Housing Director Tina Vaughn, Public Works Director Bruce Heflin, and Acting Town Clerk Vickie Hackler.
Mayor Foy proposed a structure for proceeding with the evening's budget session. He suggested that Council members take a straw vote on the issues to give the Town Manager a sense of where they stand.
Council Member Strom explained that he would have to leave the meeting at 6:30 p.m. He would give his votes on several of the later issues before leaving, he said, and he asked to receive an abridged version of presentations that he would miss.
Item 1 - Human Resources Issues
1. Proposed Pay Plan
Mr. Horton introduced Human Resources Director Pam Eastwood to make a presentation. Mr. Horton recommended that Council members allow Ms. Eastwood to make her full presentation before asking questions.
Ms. Eastwood summarized the material that she had presented at the April 30th meeting. This included a comparison of employees to market pay ranges, employee to market average pay at the 75th percentile, and the midpoints of ranges. Ms. Eastwood noted that documents the Council had requested were among the materials, including an annotated description of the current pay plan. She also distributed a one-page presentation of specific job classes that she was recommending for special pay.
Ms. Eastwood proposed four actions to accomplish the goal of maintaining employee pay at the 75th percentile.
· 2% Town-wide range change
· 3.78% step increase for below job-rate employees
· 4.5% performance pay to those at or above the job rate of their range
· Special pay adjustments for the nine employee groups whose pay would remain below the 75th percentile of the market after general increases were applied.
Ms. Eastwood showed the progressive effect over a five-year period of giving a new hire a 5.78% increase. She reviewed information in the Council's packet, noting that the report contained three major sections. Ms. Eastwood concluded that the Town could have excellent employees if it provided good pay. The purpose of the compensation program, she said, was to recruit and retain such employees. Ms. Eastwood mentioned some "unofficial" information about what other towns were recommending, or considering recommending, in their budgets. She expressed confidence that her recommendations, when "looked at in aggregate," were on target.
Mayor Foy read some of the figures included in the "Information on the Pay Plan" section of his memo to Council members:
a. Cost of proposed increase for this year $1,046,600; cost for full year $1,387,500
b. Cost of 3.78% adjustments for this year $267,500; full year is $356,700
c. Cost of special pay adjustments for this year $116,200; full year $155,000
Council Member Wiggins said that she was concerned about all Town employees, regardless of their pay categories. She stated she felt strongly that they should all get a cost of living increase. Council Member Wiggins suggested raising the recommended 2% to 3%, eliminating the other two categories, and keeping the special pay category.
Mayor Foy remarked that Council Member Wiggins was putting a suggestion on the floor for a 3% across the board increase for all employees and the special pay adjustments as set forward by the Manager.
Council Member Ward asked what the cost would be, and Council Member Wiggins speculated that it would cost about $438,000. Mr. Horton stated that the 2% was for range adjustments and would not cover employees above the midpoint, so the comparison would not be direct.
Council Member Wiggins repeated her proposal for a 3% raise for all employees. Mr. Horton estimated that the cost would be about $550,000, based on a very quick calculation.
Mayor Foy said that Council Member Wiggins was proposing that along with $116,000 for special pay adjustments.
Council Member Ward determined that this would be for 10 months rather than a full year. Mr. Horton stressed the importance of verifying any number that has been calculated on the fly as this one had been.
Council Member Strom expressed support for Council Member Wiggins' proposal. He said that he had done similar calculations and found that the savings would be about $361,000 in 2003-04 and about $500,000 in 2004-05. Council Member Strom described Ms. Eastwood's market analysis as eloquent and probably correct. But shooting for the 75th percentile is art rather than science, he said, pointing out that the Town really does not know what other communities will do. Council Member Strom commented on the difficulty of knowing whether the Town would be leading the market upward or controlling the market. He argued that Council Member Wiggins's proposal would be the correct approach this year. Council Member Strom said that the Town would be prudent to try and save money where it can and not lead the market up in this budget cycle. He noted the tax increases that the Town would be programming into future years by taking on such pay increases.
Mayor pro tem Evans asked for a staff response. She wondered if it would be better for the Town to change its policy to the 65th percentile, for example, rather than gearing it toward the 75th percentile. Ms. Eastwood replied that the staff could recalculate the figures at the 65th percentile if the Council so desired. She speculated that that the Town of Cary's average merit increase might be 5% and that Cary would institute some grade changes as well. As for Raleigh, it will be 3% to 7-1/2% plus some job grade changes, she said. Ms. Eastwood stated that Durham's average merit increase probably would be 3%, plus a pay for performance plan. In Carrboro, she said, half of all jobs will change in grade and employees will receive a 5% to 10% special pay increase plus a flat $500 supplement. Ms. Eastwood added that Durham County's increase would be 5%, Wake's County's would be 4%, and Orange County's would be 2-1/2% to all employees. Half of Orange County employees will receive an increase to go onto a new pay plan, she said.
Council Member Verkerk remarked that she did not understand how other towns could afford to do this. She wondered how Chapel Hill could tell taxpayers who have not gotten raises that the Town would be handing out 6% raises to its employees. Council Member Verkerk expressed doubt that other town councils would agree to 10% raises. She described Council Member Wiggins's proposal for 3% as generous, adding that she had planned to propose 2%.
Council Member Ward agreed with Council Member Verkerk. He noted that State employees would not get a 3% raise and that they might not get any raise at all. Council Member Ward pointed out that the new Town Operations Center would be a huge, unavoidable expense. He suggested being extremely conservative in this budget cycle so that the Town would not be faced with a tax increase next year. Council Member Ward expressed support for a 2% raise across the range with special pay adjustments for some jobs such as police and firefighters.
Mayor pro tem Evans asked what the long-term effect of not instituting the recommended step changes would be. Ms. Eastwood replied that one effect would be that more people would be making the same amount of money as those with less experience. She noted that the intent of the pay plan was to reverse that. Ms. Eastwood asserted that the combination of recommendations that she had made were critical to keeping such compression from happening again.
Council Member Wiggins asked how salaries would get closer together if everyone got the same percent increase. Ms. Eastwood replied that the new hires would be coming in very close to the people who moved away from them by only 2%. Mr. Horton added that with no merit increases all of the people at step one would remain where they are. So you have a person who has been there for three years who is making nearly the same as somebody who has been there for one year, he said. Mr. Horton explained that he'd rather be given a dollar figure to work with than to have the Council try to construct a new pay policy tonight.
Council Member Wiggins asked what special pay categories had been deleted from the original source. Ms. Eastwood replied that they had removed three small classes of accounting technicians. Mr. Horton added that he might recommend removing others as well if he is required to work with a smaller dollar amount. He asked for an opportunity to bring back a proposal that would do the most good for the most people.
Council Member Bateman proposed a figure of $670,000 for the remainder of the year.
Mayor Foy noted that this was roughly the $550,000 that Mr. Horton had estimated plus $116,000 for special pay adjustments. He asked the Council to understand when they give that figure that the staff might not come back with the same recommendations as before. The staff would have to limit consideration to the most egregious cases and probably would focus almost solely on the Police and Fire Departments, he said.
Council Member Bateman thanked Ms. Eastwood for her excellent presentation and stated that she would give 100% support to the recommendations in an ideal world. She pointed out that the Town had excellent employees regardless of the pay they receive. Council Member Bateman commented that the Council must decide on which problem it will create for future years. Not creating a problem for taxpayers is as valid as solving the compression issue, she said.
Council Member Wiggins noted that some neighboring communities have more contributors to their tax base whereas Chapel Hill primarily has property owners. She supported the proposal to come back with a plan, she said, and wanted that plan to guarantee something to all employees.
Council Member Harrison concurred with Council Member Bateman's suggestion for $670,000. He suggested, though, that the Council make some statement to the Manager about the special pay plan. Council Member Harrison said that there was much concern among Council members regarding police and firefighters. If that is not the case, then anyone who disagrees should speak up, he said.
Council Member Strom clarified that the $670,000 includes a fire safety training officer.
Mayor pro tem Evans ascertained that Mr. Horton would rather have the $670,000 to work with than a request to save a penny on the tax rate.
COUNCIL MEMBER BATEMAN MOVED, SECONDED BY COUNCIL MEMBER HARRISON, TO GIVE THE MANAGER A SPECIFIC DOLLAR FIGURE OF $670,000 FOR EMPLOYEE RAISES, INCLUDING ONE-TIME ADJUSTMENTS FOR POLICE AND FIRE EMPLOYEES DETERMINED TO BE BELOW THE COMPETITIVE MARKET LEVEL.
Council Member Wiggins said that she did not think the Council had reached consensus on what it wanted.
Council Member Ward described the $670,000 as the staff's best attempt to come up with what would be equal to a 3% across the board raise plus special adjustments for 10 months rather than 12 months. Mr. Horton interjected that the staff would hope for some freedom to make specific proposals. Council Member Ward pointed out that there had been no reaction to his and Council Member Verkerk's suggestion for a lesser amount. Council Member Ward clarified that Council Member Bateman's motion was for a 3% across the board raise.
Mayor Foy pointed out that Council Member Ward had suggested a lower increase. But the Council had moved past that, he said, unless Council Member Ward wanted to reopen the issue. Council Member Ward replied that he would like to reopen it.
COUNCIL MEMBER WARD OFFERED A SUBSTITUTE MOTION TO DIRECT THE MANAGER AND MS. EASTWOOD TO WORK WITH $500,000 TO APPLY TO THE SPECIAL ADJUSTMENTS, POLICE AND FIRE, AND TO INSURE THAT THERE WOULD BE A PAY INCREASE FOR ALL EMPLOYEES.
Mayor Foy clarified that the terms were the same as the main motion but the dollar amount was $500,000 rather than $670,000.
COUNCIL MEMBER VERKERK SECONDED THE SUBSTITUTE MOTION.
Council Member Kleinschmidt clarified that Council Member Ward had taken $170,000 off the 3% version in an attempt to get closer to a 2% after pay adjustments for fire and police.
Council Member Bateman spoke in support of her own motion for a 3% raise, describing it as a fair compromise to what the staff had presented.
COUNCIL MEMBER WARD MOVED, SECONDED BY COUNCIL MEMBER VERKERK, TO GIVE THE MANAGER A SPECIFIC DOLLAR FIGURE OF $500,000 FOR EMPLOYEE RAISES, INCLUDING ONE-TIME ADJUSTMENTS FOR POLICE AND FIRE EMPLOYEES DETERMINED TO BE BELOW THE COMPETITIVE MARKET LEVEL. THE MOTION FAILED (2-7) WITH COUNCIL MEMBERS WARD AND VERKERK VOTING AYE.
THE MAIN MOTION WAS ADOPTED 7-2, WITH COUNCIL MEMBERS WARD AND VERKERK VOTING NAY.
Mayor Foy determined that the staff would reconsider everything, including title and grade changes, and bring back a modified proposal. Mr. Horton pointed out that everything would be removed from consideration until the staff brought back the new proposal.
Council Member Bateman asked if the Council would tinker with this anymore after that. Mr. Horton expressed hope that the proposal would meet the basic monetary and fiscal requirements and that the Council would merely approve it.
B. Council
Pay Based on Payroll as Contained in Resolution 1.
Mayor Foy explained that R-1 would give Council members the same increase as Town employees receive.
COUNCIL MEMBER STROM MOVED R-1, AND COUNCIL MEMBER BATEMAN SECONDED.
Mayor pro tem Evans explained that she would feel uncomfortable agreeing to this. The Town Council is elected to serve the public, she said, adding that this would mean serving themselves. Mayor pro tem Evans commented that public service was dying and that she regretted the direction the Council seemed to be taking. She explained that she had devoted more time to serving on the Planning Board than she ever has to the Town Council. Mayor pro tem Evans noted that many of Chapel Hill's citizens serve on boards and commissions without pay.
Council Member Kleinschmidt, noting that he had not been present during prior discussion of this issue, expressed support for raising the Council's pay. He said that keeping the Council's stipend moving forward would ensure that the Town Council does not become the sole purview of independently wealthy and/or retired individuals.
Council Member Ward stated that he would not support a Council pay raise, adding that this is consistent with his position on Town employees' pay. Council Member Ward said that he was making this decision in light of the Town's ongoing economic difficulties. He described the argument for increasing Council members' pay as "deserving," but concluded that this was not the time to implement it.
Council Member Wiggins expressed support for the recommendation. She stated that if the motivation for raising Council members' pay had been self-serving then they would have requested much more than this. Council Member Wiggins pointed out that the Council was only nine people. The increase would not make much impact on the budget, she said.
COUNCIL MEMBER STROM MOVED, SECONDED BY COUNCIL MEMBER BATEMAN, TO ADOPT R-1. THE MOTION WAS ADOPTED (7-2) WITH COUNCIL MEMBERS EVANS AND WARD VOTING NAY.
A RESOLUTION ESTABLISHING A BASIS FOR FUTURE SALARY INCREASES FOR THE MAYOR AND COUNCIL MEMBERS (2003-05-21/R-1)
BE IT RESOLVED by the Council of the Town of Chapel Hill that the following policy will apply in setting salaries of the Mayor and Town Council members:
(1) The Council directs the Town Manager to determine the annual percentage amount by which pay of Town employees would increase during the upcoming fiscal year.
(2) This data will be used by the Manager to calculate an annual percentage increase in the salaries of the Mayor and Town Council members.
(3) Funds to implement these increases will be included in the Manager’s Recommended Budget. Unless directed otherwise by the Council, changes in Mayor and Council salaries will be included in the annual “Ordinance Adopting a Position Classification and Pay Plan” considered by the Council as a part of the budget process.
(4) Salary policies are subject to modification by Council at the time any budget is adopted or at other times as determined by the Council.
Previous policies or resolutions in conflict with this resolution are hereby repealed.
This the 21st day of May, 2003.
2. Information on Council Health Benefits and Comparison to Other Local Governments.
COUNCIL MEMBER STROM MOVED R-2, AND COUNCIL MEMBER VERKERK SECONDED.
Mayor pro tem Evans explained that she felt the same way about this as she had about a Council pay increase. She stated that she would agree to making health insurance available to Council members to purchase on their own. Mayor pro tem Evans explained that she had run for public office because she wanted to give back to the community. She expressed concern that providing pay and health benefits might induce people to run for monetary reasons instead. Mayor pro tem Evans repeated that she would not support a request to have the Town pay for Council members' health insurance.
THE MOTION WAS ADOPTED (7-2) WITH COUNCIL MEMBERS EVANS AND WARD VOTING NAY.
A RESOLUTION REGARDING ELIGIBILITY OF MAYOR AND COUNCIL MEMBERS FOR PARTICIPATION IN THE TOWN GROUP HEALTH INSURANCE PLAN (2003-05-21/R-2)
BE IT RESOLVED by the Council of the Town of Chapel Hill that the following policy will apply:
(1) Effective immediately, the Manager is authorized to notify the Town’s current health insurance carrier that the Mayor and members of the Town Council will be eligible for participation in the Town group health insurance plan on the same basis as full-time employees.
(2) Funds to implement this change will be included in the Manager’s Recommended Budget.
(3) This policy is subject to modification by Council at the time any budget is adopted or at other times as determined by the Council.
Previous policies or resolutions in conflict with this resolution are hereby repealed.
This the 21st day of May, 2003.
C. Personnel Additions
1. Sanitation Crew: $80,000.
Mayor Foy explained that he had pulled this out of Priority Level One, which is also on Finance Director Jim Baker's "Breakdown of Recommended Pay Adjustments by Category." He noted that Council members already had discussed the Human Resources issues, but still needed to decided whether or not to support the additional sanitation crew ($80,000) and the fire training officer ($50,000). Mayor Foy pointed out that Council Member Harrison had suggested also supporting other personnel listed in Priority Level Two.
Council Member Strom asked for the staff's opinion regarding the sanitation crew. Mr. Horton strongly recommended approval because the Town would have difficulty meeting its workload without an additional crew. Council Member Strom inquired about the possibility of delaying this for a year or two. Public Works Director Bruce Heflin explained that changing to commercial garbage collection would allow the person they retain but no longer used for that collection to offset the personnel requirements needed for what is now residential, such as Meadowmont and other urban growth corridors. Council Member Strom ascertained that the $80,000 was above and beyond the savings the Town would receive from ending its contract with the firm that has been servicing Southern Village.
Mayor Foy determined that this would mean adding another route. Mr. Heflin explained that there are days when the staff cannot complete the routes that it has. And several hundred more homes will be built in neighborhoods now under construction, he pointed out. Mayor Foy ascertained that the full cost of the crew for one year would be $108,000.
Mayor pro tem Evans moved to add the sanitation crew, describing it as a very important service for the community.
MAYOR PRO TEM EVANS MOVED, SECONDED BY COUNCIL MEMBER WARD, TO ADD A SANITATION CREW AT A COST OF $80,000. THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).
2. Fire Training Officer: $50,000.
COUNCIL MEMBER WIGGINS MOVED, SECONDED BY COUNCIL MEMBER WARD, TO ADD A FIRE TRAINING OFFICER AT A COST OF $50,000. THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).
3. Other Personnel Additions.
Council Member Harrison said that the following four positions were closely tied to the LUMO and to other Council initiatives: engineering technician for the traffic program, planner for additional development review, transportation planner, and engineering technician for additional development review. He pointed out that the LUMO was more complicated and demanding than the previous ordinance and that it was causing an increase in the staff's workload. Council Member Harrison pointed out that the Council wanted to update the Design Manual and to conduct a parking study, which would involve several departments. The staff is not equipped to deal with all of the demands that applications put on them, he said, and he recommended filling the traffic engineer position before filling the others.
Council Member Verkerk expressed support for the traffic technician, but said that she could not support the others at this time.
Council Member Bateman stated that she did not support any of the four, but she wondered if the traffic technician would work in the Planning Department. Mr. Horton replied that the technician would assist Traffic Engineer Kumar Neppalli. Of the four, Mr. Horton said, that position would be his highest priority. The Town had been wasting much of Mr. Neppalli's talent by having him do technician work in addition to his professional engineering work, Mr. Horton said.
Mayor Foy noted that the Manager had assigned a lower level to these positions than to the training officer and the sanitation crew, which the Council had already approved.
Council Member Bateman stated that she would support the engineering technician after all.
Mayor Foy suggested that Council Member Harrison move each position individually.
COUNCIL MEMBER HARRISON MOVED THE TRAFFIC ENGINEER AND COUNCIL MEMBER KLEINSCHMIDT SECONDED.
Mayor Foy explained that he would not support this or any other additions to personnel because the Town would have to add firefighters next year and more firefighters two years after that. He advised caution about adding permanent positions that have not been among the Manager's priorities. Mr. Horton commented that the fire chief had been developing a convincing case for more firefighters and that other community needs will have to be weighed in the balance. Mayor Foy pointed out that the Council sets priorities but the Manager manages the Town. He said that he was more comfortable voting for something that has made the Manager's cut than for something that has not.
Council Member Wiggins asked how much money the Council had made available by its previous action. Mr. Horton said that he was not sure because the Council had also added some costs.
Mayor pro tem Evans stated that she would vote against the traffic technician position because she was not comfortable making one position a Council priority when there are so many other needs out there. She wanted to leave such decisions for the Manager and would be happy if the motion were removed, Mayor pro tem Evans said.
COUNCIL MEMBER HARRISON MOVED, SECONDED BY COUNCIL MEMBER KLEINSCHMIDT, THAT THE MANAGER INCLUDE IN THE BUDGET AN ENGINEERING TECHNICIAN FOR THE TRAFFIC PROGRAM AT A COST OF $44,600. THE MOTION FAILED (1-8) WITH COUNCIL MEMBER HARRISON VOTING AYE.
Council Member Kleinschmidt explained that he had been persuaded by the arguments to vote against this.
Council Member Bateman noted that there were only a few Council members who needed health care coverage, adding that she was not one of them. Mr. Horton explained that he must budget for the maximum because it is not known who might be on the Town Council after the election. Council Member Bateman suggested that those who are not up for re-election simply say whether they need health coverage or not. Since only a few do, that would make a difference in the budget, she said.
Mayor Foy asked Council Member Harrison if he wanted to proceed with moving the other three positions. Council Member Harrison replied that he would not, since it looked as though Council members would not support them. He warned, however, that the Council will not get the reports they want if the staff is shorthanded and overworked.
D. Human Services Contracts, Hotel/Motel tax, and Other Grants.
1. Proposed Allocation: $439,000.
MAYOR PRO TEM EVANS MOVED, SECONDED BY COUNCIL MEMBER BATEMAN, TO SUPPORT THE PROPOSED ALLOCATION OF $439,000. THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).
2. Increase Allocation for Human Services: $10,000.
Mayor Foy ascertained that this would be an increase of about 5%, or about $10,000.
COUNCIL MEMBER BATEMAN MOVED, SECONDED BY COUNCIL MEMBER WARD, TO INCREASE ALLOCATION FOR HUMAN SERVICES BY $10,000. THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).
3. Increase for Land Trust: $10,000.
COUNCIL MEMBER BATEMAN MOVED, SECONDED BY COUNCIL MEMBER WARD, TO INCREASE LAND TRUST ALLOCATION BY $10,000. THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).
4. Emissions Program: $30,000.
Mr. Horton explained that this program would help with matching funds for programs that the Town expects to conduct with its neighbors.
COUNCIL MEMBER VERKERK MOVED, SECONDED BY COUNCIL MEMBER WARD, TO SUPPORT THE EMISSIONS PROGRAM AT A COST OF $30,000. THE MOTION WAS ADOPTED UNANIMOUSLY (8-0).
5. Fourth of July Allocation.
Mayor Foy verified that the Council had already reinstated this celebration.
6. Other
Mayor Foy noted that he had neglected to include snow removal equipment and to restore Capital Improvements to the prior level of about $660,000, which is itemized in the budget but not in his agenda. Mr. Horton said that he would bring a summary Capital Improvements report on June 9th that would focus on the big items that the Council has been discussing. These include scheduling of possible debt for the Town Operations Center, possible scenarios for expansion of the Town Library, and scheduling of the Green Infrastructure bond. Mr. Horton explained that he would present the material in a way that would display options for the Council's consideration.
Council Member Wiggins verified that the Council already had authorized funding for generators and for similar equipment in places where such emergency equipment is needed. Mr. Horton added that he hoped to install the Town Hall's generator before the next hurricane season.
COUNCIL MEMBER EVANS MOVED, SECONDED BY COUNCIL MEMBER WIGGINS, TO SUPPORT PURCHASING SNOW REMOVAL EQUIPMENT AND RESTORING CAPITAL IMPROVEMENTS TO THE PRIOR LEVEL AT A COST OF ABOUT $660,000. THE MOTION WAS ADOPTED UNANIMOUSLY (8-0).
E. Transportation Fund.
Mayor Foy explained that the Council would be agreeing to Priority Level One with whatever changes are made to the Pay Plan. Mr. Horton strongly recommended that the Council consider these Transportation Fund personnel costs and additions. He pointed out that the operation had grown so large and become so complex that the Transportation Department had been overwhelmed by tasks and needed administrative and maintenance help. Mr. Horton said that the Department also needed to change some part-time bus drivers to full-time to reduce overtime. He pointed out that reducing overtime hours would cancel out the cost.
Mayor Foy expressed support for the proposed positions, adding that they would cause productivity to increase. The Transportation tax rate would net out with the General Fund rate, he said, so there would be no net increase.
Council Member Bateman asked if this would include the cost of re-instituting bus service to Chapel Hill High School. Mr. Horton replied that it did not but that the Council would consider that item later in the meeting.
COUNCIL MEMBER KLEINSCHMIDT MOVED, SECONDED BY COUNCIL MEMBER WARD, TO SUPPORT THE PRIORITY LEVEL ONE RECOMMENDATIONS OUTLINED IN THE MANAGER'S RECOMMENDATION. THE MOTION WAS ADOPTED UNANIMOUSLY (8-0).
With regard to the provision for transportation to Chapel Hill High School, Transportation Director Mary Lou Kuschatka explained that 7:30 a.m. and 5:30 p.m. were the most critical times. She said that the best morning service would include four trips, at 7:00, 7:30, 8:00 and 8:30 a.m. Ms. Kuschatka added that the Town could use the existing service and provide a short route, from Downtown and back, using one of the smaller 15-passenger buses. She gave costs for four morning and four afternoon trips, as well as for three and two trips morning and afternoon.
Council Member Kleinschmidt asked if school representatives had petitioned the Town's transportation partners as they had said they would. Ms. Kuschatka replied that Carrboro had been contacted but had not yet given a response. Mr. Horton pointed out that service changes could be authorized mid-year if the Council set up a reserve.
Council Member Ward spoke in favor of holding money in reserve, adding that all three parties to the transit agreement should support such a service route. Mr. Horton speculated that UNC and Carrboro would not have much reason to support expansion of service to East Chapel Hill High School, but might support expansion to Chapel Hill High School.
Mayor pro tem Evans pointed out that she had previously raised the issue of using the Town's bus service for public school transportation. She wondered about including the high school in an established bus route rather than creating another route. Ms. Kuschatka explained that it would be impossible to fit that into the current schedule and still make trips that are timed to the UNC class schedule and the work schedule of people going to UNC. It takes too much time to do that and still maintain the same buses and service on the existing routes, she said. Mayor pro tem Evans replied that this would be a great project for someone in operations research. It would save the Town $50,000 and probably attract more high school kids because they like to mingle with college kids and others, she said.
Council Member Bateman asked why East Chapel Hill High School was asking for service beginning at 6:00 a.m. when Chapel Hill High School was requesting 7:00 a.m. service. Ms. Kuschatka replied that the East Chapel Hill High School bus would be a leg of the T Route, which starts that early to provide service down Airport Road.
Council Member Wiggins ascertained that the school's "zero period" starts at 7:45 a.m. So the ideal is to have one trip to deliver people to the school at 7:30 a.m. and another to pick them up at 5:30 p.m., she said. Council Member Wiggins verified that two trips, morning and afternoon, would cost approximately twice that amount. Ms. Kuschatka pointed out that if they had two trips they would want them at 7:30 a.m. and 8:30 a.m.
Mayor Foy noted the suggestion that the Town continue working with its partners on an agreement. Mr. Horton explained that the Town could set up a reserve, which, if not used, would become a part of the larger reserve that the Town had been attempting to accumulate to help with next year's tax bill. He advised the Council to determine the maximum that they'd be willing to invest in the service if they want to take that approach. Then the Town could make that the reserve amount and it could be any number that the Council chooses, Mr. Horton said.
Mayor Foy inquired about ridership on the T Route with the current service to East Chapel Hill High School. Ms. Kuschatka replied that there was good ridership but said that she did not have exact figures. Mayor Foy asked what the ridership was to and from the school. Ms. Kuschatka replied that an annual boarding and alighting survey had been done, so those actual numbers were available. Mayor Foy pointed out that if the Council did this they would also have data for the following year.
Mayor Foy ascertained from Mr. Horton that the Council probably would not get support from the partners on this even though it would serve Carrboro and Orange County residents. Mr. Horton replied that he did not think Carrboro would be sympathetic toward paying for a service that they see as primarily benefiting Chapel Hill.
Mayor Foy suggested putting some money in reserve to institute service to Chapel Hill High School this fiscal year, while initiating negotiations with the partners and with Orange County. Mr. Horton recommended that Council members pick a maximum amount that they'd be willing to invest. Mayor Foy stated that if the Town did it by themselves then the maximum would be $50,000. He suggested setting aside that amount or less.
Council Member Ward expressed support for putting the maximum in to make the service work. He recommended not identifying the funds for the high school service alone, however. Council Member Ward suggested not giving the impression that the Town was ready to pay the entire 100% but was simply holding money for additional transportation.
Council Member Verkerk verified that students were paying the full cost of the late night service that they had requested from the Town. She asked why the school system would not pay the $50,000, since it seemed like a parallel situation.
Mayor Foy stated that Orange County needed to be involved because it is the County that funds the schools.
Council Member Wiggins commented that any partner that wants to start a new service is responsible for the first year, according to the agreement. She pointed out that the Town could get bogged down in negotiations past the time for transportation planning. Mr. Horton said that if the numbers in the first year do not meet the Town's performance standards, then the service could only continue if the Town pays for it. Council Member Wiggins described that as good motivation for the faculty and administration at the High School to encourage bus ridership.
Council Member Bateman suggested that the same school representatives who had approached the Town Council present their case to the Carrboro Board of Aldermen.
Mayor Foy volunteered to propose that to the School's representatives on the Council's behalf.
Council Member Kleinschmidt noted that the School's representatives had been asked to do that last time. Mayor Foy stressed that the issue was at a more serious stage now and the School System has an incentive to do it.
Council Member Kleinschmidt recommended also getting a commitment from the school board to cut out one third of student parking permits, or to not allowing freshman and sophomores to drive to school, or something similar. Mayor Foy agreed that this needed to be discussed since the Town would not continue to fund it just as a gesture. He added that the Commissioners had expressed support for the idea, which he described as a risky first step toward solving the puzzle.
Council Member Bateman recommended saying at the start that if the school does not have a certain level of ridership then the service will be discontinued.
Council Member Kleinschmidt explained that he merely wanted to see the schools make a commitment to encouraging ridership.
Council Member Ward asked if this might be an opportunity to also serve some shared ride areas of the community, such as areas at the Seawell School/ Estes Road intersection and Homestead Village. Ms. Kuschatka explained that adding stops and checking on the time it takes to do so is part of the fine-tuning process. She said that the Town's focus was to serve as many people as possible and still be on time. Ms. Kuschatka agreed to look at providing service to the neighborhoods that Council Member Ward had mentioned.
Mayor pro tem Evans predicted that there would be a future high school in Carrboro and suggested that the Council consider how it would provide service there as well.
Mayor Foy suggested setting aside $35,000 for the 7:30, 8:00, and 8:30 a.m. routes.
Council Member Verkerk suggested asking the high school for a plan of how they would encourage ridership before the Town releases money.
Mayor pro tem Evans noted that there would be an exiting threat to discontinue, but Council Member Verkerk pointed out that the Town would have lost $35,000.
Mayor Foy recommended setting aside $35,000, if there is support for that, and asking the staff to engage in conversations with the school system and to come back with information on whether this is likely to work. Mr. Horton added that the key would be, as Council Member Verkerk had suggested, to get a plan and an indication of commitment from the school system.
COUNCIL MEMBER VERKERK MOVED, SECONDED BY COUNCIL MEMBER WARD, TO SET ASIDE $35,000 FOR THE CHAPEL HILL HIGH SCHOOL BUSES. THE MOTION WAS ADOPTED UNANIMOUSLY (8-0).
With regard to the $147,000 request from East Chapel Hill High, Council Member Bateman suggested that the Council decide to do nothing.
Mayor Foy stated that the Council would take no action on that because the cost was too high and because service already exists. He recommended waiting to see how the other service goes first and whether or not there is ridership.
COUNCIL MEMBERS AGREED BY CONSENSUS TO TAKE NO ACTION.
F. Other Options.
Mayor Foy noted that several items on page four of Mr. Baker's handout were optional. He asked Council members to decide if they want to add any of those. Mayor Foy noted that he was particularly interested in the Public Arts Commission option
Mayor pro tem Evans asked if the Commission was asking for matching funds for grants. Mr. Horton replied that the Commission had taken on so much additional work that they needed the additional funds for staffing.
Council Member Kleinschmidt pointed out, though, that some of the funds would be used to leverage grants.
Council Member Harrison determined that this request was likely to be repeated.
Mayor Foy remarked that at some point the Commission probably would have more grant money, but that this would not necessarily mean that the Council would pull back its level of funding. He added that Town funding probably would be a relatively long-term commitment.
Council Member Bateman ascertained that this would bring the Commission's budget up to $70,000. She pointed out that the projects the Commission had cited were far into the future.
Council Member Bateman wondered if the Town could reach a compromise rather than fund a position to take on projects that will not need public art for five years.
Council Member Kleinschmidt replied that the current half-time employee was doing more than full-time work and was also planning to leave. So the Commission needs this level of funding to continue the work they already are doing, he said. Council Member Kleinschmidt added that the Commission would need to "actually pay somebody" to do the current job as well as the work that the Town will be giving them as a result of the Percent for Art program.
Mayor pro tem Evans proposed that the Town give the Commission $20,000, which would bring the level up to $50,000, the amount they specified needing to leverage other grant proposals.
Council Member Verkerk asked how that would address hiring a manager. Mayor pro tem Evans replied that the $50,000 could be used for staffing. Council Member Bateman agreed to support a $20,000 increase, noting that others had also asked for money to reduce their workloads, too. This in no way is meant to disparage the Commission's work, she said, any more than the Council's decision on employee raises was meant to disparage employees’ work. Council Member Bateman said that it was just a matter of the financial picture the Town is facing.
Council Member Verkerk moved that the Council support $40,000, adding that the Public Arts Commission had remarkably stretched its dollars. Council Member Kleinschmidt seconded.
COUNCIL MEMBER VERKERK MOVED, SECONDED BY COUNCIL MEMBER KLEINSCHMIDT, TO SUPPORT $40,000 TO THE PUBLIC ARTS COMMISSION. THE MOTION WAS ADOPTED (4-3) WITH COUNCIL MEMBERS KLEINSCHMIDT, VERKERK, FOY AND HARRISON VOTING AYE AND COUNCIL MEMBERS BATEMAN, EVANS AND WARD VOTING NAY.
Mayor Foy pointed out that these were just recommendations. If Council Members Strom and Wiggins, who were absent, had vehement objections to this vote then their votes would be added, he said. Mayor Foy asked if there was anything else that anyone wanted to support from the list on page four, since none of it had been included in the budget.
Mayor pro tem Evans asked to include the NC High School Athletic Association, describing that as a moneymaker for the community. Mayor Foy pointed out that many of the Athletic Association's events had been moved out of Town. Mayor pro tem Evans argued that competing venues had offered several hundred thousand dollars while the Town had been paying only $10,000.
MAYOR PRO TEM EVANS MOVED, SECONDED BY COUNCIL MEMBER WARD, THAT THE TOWN ALLOCATE $10,000 TO THE NC HIGH SCHOOL ATHLETIC ASSOCIATION. THE MOTION WAS ADOPTED (6-1) WITH MAYOR FOY VOTING NAY.
Council Member Bateman ascertained that the Town had allocated $5,000 to Fiesta Del Pueblo last year. She pointed out that La Fiesta would be moved to the State Fairgrounds this year and wondered if the Town should allocate the same amount.
Mayor pro tem Evans and Council Member Verkerk questioned whether the Town should allocate anything at all if the event is not held in Chapel Hill.
Council Member Bateman said that she would agree if the Council had just applied the same logic to the Athletic Association.
COUNCIL MEMBER BATEMAN MOVED THAT THE TOWN ALLOCATE $2,500 TO LA FIESTA DEL PUEBLO. THERE WAS NO SECOND.
COUNCIL MEMBER WARD MOVED, SECONDED BY COUNCIL MEMBER BATEMAN, THAT THE TOWN ALLOCATE $1,000 TO LA FIESTA DEL PUEBLO. THE MOTION WAS ADOPTED (5-2) WITH COUNCIL MEMBERS VERKERK AND FOY VOTING NAY.
Council Member Verkerk asked if not funding the additional cost for biodiesel fuel would mean that the fleet would revert back to regular diesel fuel. Mr. Horton replied that this would happen only if fuel prices were to accelerate. He noted that fuel prices had stabilized. If they continue to do so, Mr. Horton said, then the Town will be okay.
COUNCIL MEMBER VERKERK MOVED, SECONDED BY COUNCIL MEMBER WARD, TO PUT $21,000 IN RESERVE FOR BIODIESEL FUEL. THE MOTION WAS ADOPTED (6-1) WITH COUNCIL MEMBER KLEINSCHMIDT VOTING NAY.
BY CONSENSUS, COUNCIL MEMBERS SUPPORTED MEMBERSHIP IN THE US CONFERENCE OF MAYORS.
COUNCIL MEMBER WARD MOVED TO ALLOCATE $5,000 FOR PARKING COUPONS AT HOLIDAY SEASON, AND MAYOR PRO TEM EVANS SECONDED.
Council Member Verkerk argued that people come Downtown because there is something they want to buy, not because they get a parking discount. She noted that the Town had invested much in supporting the Downtown and described this as a "warm fuzzy" that draws attention to a parking problem that no longer exists.
Council Member Kleinschmidt agreed with that argument, but added that he did support free parking days as an effective tool for drawing shoppers.
Council Member Harrison suggested appropriating $1,500 as the Council did last year. Council Member Ward accepted that as a friendly amendment, and restated his motion.
COUNCIL MEMBER WARD MOVED, SECONDED BY MAYOR PRO TEM EVANS, THAT THE TOWN ALLOCATE $1,500 FOR DOWNTOWN PARKING COUPONS. THE MOTION WAS ADOPTED (4-3) WITH COUNCIL MEMBERS BATEMAN, KLEINSCHMIDT AND VERKERK VOTING NAY.
Mr. Horton verified that the Town's contract for services with the Downtown Commission last year had been about $70,000.
Mayor Foy wondered if the Council would be interested in negotiating a contract with the Downtown Commission that would hold money in reserve to be used for economic stimulus over the course of next year. He stated that this might include funding for whatever the Town does with its parking lots, as well as for an economic development person or department Downtown. Mayor Foy suggested that the Council instruct the Manager to negotiate a different kind of arrangement for allocating funds for this and possibly future years. Mr. Horton replied that this certainly would be possible as long as the Commission knows about it in advance.
Mayor pro tem Evans determined that Mayor Foy was recommending that the Manager reserve money as the Council had with some of its other actions this evening. Mayor pro tem Evans verified that Mayor Foy was talking about additional funds. She expressed support for reallocating some of the Downtown district tax money.
THE COUNCIL AGREED BY CONSENSUS TO INSTRUCT THE MANAGER TO ENGAGE IN CONTRACT NEGOTIATION WITH THE DOWNTOWN COMMISSION.
Council Member Harrison noted that there was no traffic-calming policy to help evaluate traffic-calming petitions.
Mayor Foy asked if there was any money in the budget for traffic calming. Mr. Horton replied that there was only a few thousand dollars left, noting that there were more projects than the Town will have money for.
Council Member Harrison recommended adopting a policy before allocating any more money to traffic-calming.
Council Member Ward expressed support for having a policy, but argued that it would be unrealistic not to put money in the budget for traffic calming. He determined from Mr. Horton that the Town had spent $40,000 last year and proposed including $25,000 in this year's budget. Mr. Horton said that the staff had developed a policy a couple of years ago that they still recommend. They had redistributed it at Council Member Harrison's request, he said, and would bring it forward whenever the Council wishes.
Mr. Horton stated that he would rather have a traffic technician than more money in the traffic-calming budget.
Council Member Bateman pointed out that a traffic technician had not been in the Manager's first budget. Mr. Horton explained that this was because he had been working against a fixed sum of money.
Council Member Harrison added that the Town would get a lot more traffic claming with a traffic technician helping Mr. Neppalli than they would with this additional funding.
COUNCIL MEMBER WARD MOVED THAT THE TOWN ALLOCATE $25,000 FOR TRAFFIC-CALMING. THERE WAS NO SECOND.
COUNCIL MEMBER WARD MOVED TO ALLOCATE $1,000 FOR CONTINUING THE VOLUNTEER RECOGNITION PROGRAM.
No one was exactly sure what the Volunteer Recognition Program money would be used for, so the staff agreed to bring back more information.
COUNCIL MEMBER WARD MOVED, SECONDED BY COUNCIL MEMBER BATEMAN, THAT THE TOWN ALLOCATE $1,000 TO THE HISTORIC DISTRICT COMMISSION FOR MEDIATION RELATED TO DEMOLITION PERMITS. THE MOTION WAS ADOPTED UNANIMOUSLY.
The meeting adjourned at 8:00 p.m.