a.	Bicycle and Pedestrian Advisory Board.

Tabitha Combs, Bicycle and Pedestrian Advisory Board chair, said the board�s focus had been on creating a friendlier biking and walking program. She said a common request of the board was for high quality maps reflecting the trails. Ms. Combs said the board was requesting $2,000 to produce those maps.

Council Member Hill entered the meeting at this time.

Ms. Combs said the board was also requesting $1,000 to promote the bike and pedestrian program, and for a full-time position for the Active Living by Design program.

b.	Chapel Hill Public Arts Commission.

Dick Robinson, Chapel Hill Public Arts Commission chair, accompanied by Kate Flory, said the commission works to enrich the environment with art. He noted the commission�s recent Percent for Art projects and Town Hall exhibitions. Mr. Robinson said the commission needed a large budget increase over the current year in which they had not received funding.  He said there was a need to fairly compensate the commission�s two employees, and that there was a need for a half-time person, so the full-time employees could spend their time on substantive projects and community outreach.

c.	Community Design Commission.

Jonathan Whitney, Community Design Commission chair, requested an additional staff person for planning and an inspections enforcement staff person. He said there was also a need to create programs encouraging public transit.

d.	Greenways Commission.

The Greenways Commission was meeting tonight and did not attend.

e.	Historic District Commission.

Catherine Frank, representing the Historic District Commission, said requests for demolitions had increased. Because demolition by neglect situations were increasing, Ms. Frank requested that funding for mediation be re-instituted. She said there was also an ongoing review of the old Chapel Hill Cemetery. Ms. Frank said there would continue to be problems with the parking deck located at the cemetery. She said she could also see an extension of the National Register districts because a number of neighborhoods would be 50 years old and were worthy of protection.

Ms. Frank said 10 years ago the Council had agreed to put up boundary signs in those districts. She said the commission would like to see that program explored again.

Ms. Frank said the historic fee penalizes those who live in these districts, which in turn makes it hard to expand or make new historic districts. She said it would make it nearly impossible for some to pay the $300 fee for making changes. She said that every time someone makes a change that does not meet the restrictions it takes away a part of the historic value of those districts.

Council Member Hill said he supported the initial fee, but that subsequent requests should not require a fee. 

f.	Human Services Advisory Board (attachment).

Larry Daquioag, Human Services Advisory Board chair, told the Council the board had submitted its memorandum identifying the services provided and its request. He said the board was requesting an increase in funding from $225,000 to $250,000. He said they had been able to fund all of the agencies, but not at the level they had requested, and hopefully this increase would bring them up to that level.

Mr. Daquioag said they had also received a request for funding from the Interfaith Council (IFC), and there was a question as to whether this should be submitted as a grant request. Last year, he said, the board had allocated $7,500 to the IFC. He said the board was requesting direction from the Council on this matter. He also requested that Council review agency requests to the board and give them guidance.

Mayor Foy asked Mr. Daquioag to explain the process. Mr. Daquioag said applications were due to the board by March 2. He said applications would be reviewed, and then the board would meet with Carrboro and joint hearings would be held. Mr. Daquioag said each agency then makes a presentation and afterward the board determines which agencies will be funded. He commended staff member Karen Rose for doing most of the work and disbursing the money.

Mayor Foy asked how they determined funding if the Council did not tell them the amount that would be allocated. Kay Johnson, Town Finance Director, said the budget would come to the Council early in June so adjustments could be made prior to final approval.

Mayor pro tem Strom thanked the board for performing admirably each year.

Council Member Kleinschmidt questioned the IFC request. Ms. Johnson said Council would receive that report in March.

Council Member Thorpe thanked all the boards for their work, especially the Human Services Board.

Council Member Kleinschmidt said that through this board the Town is able to fund a number of community-oriented services, and, with a small amount of money, make a large impact. He said the Town extracts an enormous amount of value out of each of these dollars.

g.	Library Board of Trustees.

Robert Schreiner, Library Board of Trustees chair, announced that members of the Friends of the Library were also in attendance. He said they were requesting funds for continuing education, additional hours for paging books, and someone to pursue grants for the library�s capital needs. Mr. Schreiner said the building committee had been informed that inflation was eroding the buying power of the bond funds from 2003, and the board was asking to work with the Library Foundation to enhance bond money with private funds. He said more public art was needed as well as more general meeting space.

Mayor Foy said they needed a plan for this gap in funding or the Town would not be able to build this $16 million building.

h.	Parks and Recreation Commission.

Terry Blalock, Parks and Recreation Commission chair, reported that they'd had a great year. He said Booker Creek was well under construction, and that they needed to keep an eye on what they currently have. Mr. Blalock noted that there was a budget shortfall for maintenance.

Mr. Blalock said park facilities were deteriorating due to deferred maintenance from insufficient funding. He said this was a community-wide issue. He said poor facility condition results in lower user satisfaction. Mr. Blalock followed up with a slide presentation showing pictures of drainage and maintenance issues at a number of parks in the system.

Mr. Blalock said the commission�s recommendations were to fund a park assessment to establish a routine maintenance and renovation plan, to increase funding for routine maintenance of buildings and parks, and to adhere to the replacement plan.

Mayor pro tem Strom said he thought the recommendations were important and needed to be done.

i.	Stormwater Management Utility Advisory Board (attachment).

Alan Rimer, Stormwater Management Utility Advisory Board chair, said the board supports the thrust and priorities of the budget proposal from staff.

Mr. Rimer said the second phase of the Stormwater Master Plan will begin in 2007-2008 and will look at issues in watersheds and Jordan Lake. He said they would be working collaboratively with Public Works and know where that money is being spent. He said the board supports the request by staff for another engineer, and the need to look at how fees for development permits are now allocated back to the stormwater program. He said the board also supports the effort to continue increasing the range and effectiveness of stormwater maintenance, to provide technical advice to property owners, and to provide needed and visible services to the community.  The board was not looking at any fee change this year, Mr. Rimer said.

Council Member Ward asked what purpose the vacuum truck served. Mr. Rimer replied that the truck sucks out everything in storm drains. Council Member Ward said the Town was working against itself by allowing leaves to be piled onto the curb where they wash into storm drains. Mr. Rimer said sediment was a major clogger.

Council Member Harrison asked the Manager to work with Mr. Rimer to get a quarterly report from the Stormwater Management Utility Advisory Board on the Council�s meeting calendar.

j.	Transportation Board.

Gary Barnes, Transportation Board chair, said that since fare free busing was adopted three years ago the operating budget for transit has increased by only 9 percent. He said transportation really needed more resources. He said the bus schedule did not synchronize well with UNC Hospitals, and needed to be adjusted. He said route and schedule changes would provide service to those who do not currently use the service.

Mr. Barnes said the EZ Rider service needed to be made faster. He said the department had begun to monitor its function closely, and needed staff to analyze data.
 
Mr. Barnes said that Transportation needed to advertise services in order for residents to know that the services are provided. He said they needed to encourage citizens to get out of their cars and use the system for more than just commuting. Shelters were also needed at heavily used locations. Mr. Barnes pointed out.  He said the Town needed to also assure that infill projects are given easy access to bus service.

k.	Other Advisory Boards and Committees.

Elizabeth Welsby, Public Housing Board chair, said Public Housing had experienced drastic funding reductions. She said the department would have to move to a more project-based accounting system. The federal government was recommending that they replace this money through rental income, or bring in residents who make 50 percent of the median income, she said. 

Ms. Welsby said they were coming up with a significant shortfall. She said the board had voted 5 to 0 to allocate $208,000 to the Housing Department to cover budget deficits. She said other housing authorities have had success in managing private properties for a profit and using that income to make up the deficit. She would like to see that venture investigated, Ms. Welsby said, noting that UNC could help with that.

Ms. Welsby said housing residents were happy with the renovations. She noted that safety is a concern, and said that focusing on community policing would be a good idea, especially since a new police chief would soon be hired.

Council Member Greene expressed strong support for this effort and request.

Housing Director Tina Vaughn requested $24,000 for benefits, and $17,000 to replace the oldest maintenance vehicle. She said housing also needed a half-time position.

Council Member Greene commented that the deficits were putting a lot of people at risk of being homeless.

Council Member Hill said the Town needed to look into the idea of rental property as a continuum of the program.

Ms. Vaughn said they needed to identify alternate sources of income. She said they would have to run housing like a business, and at the end of each business year they would have to make a profit by collecting as much rent as they could.

Mayor pro tem Strom said no policies had been adjusted at this point. He said they had been given information about the Land Trust and that the federal government was really trying to cut national housing projects.  He recommended that the Town continue the good work that it has been doing. Mayor pro tem Strom said it was clear that the Land Trust had financial needs and perhaps there would be some way to combine the two.

Council Member Greene left the meeting at this time.

George Cianciolo, Planning Board chair, requested funding for a consultant to review the tree ordinance, because of the significant changes requested for the ordinance. He said it would be a two-phase process to strengthen and expand the ordinance. A tree ordinance specialist was needed to address the budgetary impacts, Mr. Cianciolo pointed out. He said the second request was for additional planning staff to work on planning projects, and to consider the anticipated services expected of the department over the next several years.

Regina Blalock, representing Active Living by Design, explained that Transportation Department funds would soon expire.  Without that lead agency Active Living by Design will dissolve, she said.  Ms. Blalock asked the Council to demonstrate its commitment by funding a position that would promote, facilitate and provide incentives for alternative transportation.  She noted that the Bicycle and Pedestrian Board and Planning Department were also requesting a similar position.  These were not three different positions, but actually the same one, Ms. Blalock explained. 

Council Member Thorpe asked Ms. Blalock where the recommended person would be situated.  She replied that a full time bike and pedestrian coordinator would be on the Town staff, and she listed several projects that the person might work on.

Steve Spade, introduced his staff members and thanked the Council for giving him the opportunity to be part of the Town staff.

Mr. Spade discussed the Transportation Department�s capital and fleet needs, development trends, and his department accomplishments.  He addressed priorities and issues that would face transit in next year�s budget.  Mr. Spade shared the results of a peer group analysis that his department had done.

Mr. Spade reported on projections in service to 2035, noting that Chapel Hill�s population would increase by 55 percent and employment would increase by about 130 percent by then.  He said the transit system would necessarily increase as well, and the Town should prepare itself to meet those demands.

Mr. Spade to gave an overview of transit services, and noted that Chapel Hill, the Town of Carrboro, and UNC share proportionally in operating costs.  Mr. Spade said that transit also receives federal and State funding, and he presented details on that.  

Mayor Foy clarified that the Department receives about $1.75 million from federal 5307 funds.  Mr. Spade said the Department had a $2.2 million goal for bus replacement each year.

Mr. Spade pointed out that transit is a labor intensive operation.  He listed key budget expenditure areas, including wages and benefits, diesel fuel, maintenance and repair costs, insurance, utilities, and charges General Fund charges.  These total about 90 percent of the total budget, he said.

Mr. Spade said he had focused this year on improving the department�s operation, and had looked at its physical capabilities, service delivery system, and employees.

Council Member Kleinschmidt asked about the quality of public input in a customer satisfaction survey that transit had done.  Mr. Spade explained that the department had received an 80 percent plus ranking for customer service.  Criticism was related to frequency of service and overcrowding, he said.  Mr. Spade noted that respondents had been handed surveys and filled them out while waiting for the bus.  As a result, there was close to a 100 percent response rate, he said.   

Mr. Spade discussed the fleet assessment and peer group analysis that his department had done.  He said the Town needed to purchase 45 buses over the next five years.  Mr. Spade gave details about cost and about the recommended types of buses, including diesel hybrid electric technology.  He said the transit fleet would expand to 99 buses in 2007.

Mr. Spade said that ridership had leveled off after doubling for three years.  Mayor Foy asked why that was, and Mr. Spade replied that the immediate rush of fare free service had worn off.  He said that the system being at capacity in some areas had affected service quality, and that people new to Town might not be aware of what the system offers.   Mr. Spade predicted that ridership would grow when services were expanded.

Council Member Easthom asked about advertising.  She recommended that information about the fare free system be placed in the local newspaper each week.  Mr. Spade noted that transit had been doing direct mail campaigns this year and was working with UNC and the Triangle Transit Authority to get information out to students.  He said that ridership was increasing and was about 4 percent higher this year than last. 

Council Member Kleinschmidt and Mr. Spade discussed various advertising ideas and other approaches to attracting riders.

Mr. Spade explained that his department�s operating costs increase by an average of nine percent annually.  He said the fleet�s age was beyond the national standard.  There were up to 39 percent new passengers each year, said Mr. Spade.

Mr. Spade noted that the Comprehensive Plan sets a goal for a strong multi-modal transit system that deemphasizes reliance on the auto, increases density, and leads to green development.  He then listed several of transit�s accomplishments.  

Mayor Foy asked what it was about the department culture that caused bus drivers to be so friendly.  Mr. Spade replied that drivers genuinely enjoy interacting with the public.  He noted that driving a bus was a stressful occupation and said transit drivers do their jobs well.  Mr. Spade noted that the department needed to address front line supervision, however.  Transit needs to focus on how to supervise and motivate properly, he said, adding that he planned to institute a supervisor training program.

With regard to priorities for next year, Mr. Spade said the department wanted to improve maintenance and the condition of its fleet.  They also plan to continue bus replacement, which requires $2.2 million in discretionary funding, he said.  Mr. Spade added that the department would like to hire five new mechanics and two parts room clerks.  They also want to expand training and introduce improved maintenance practices, he said. 

Mr. Spade said the department needed to hire an operations planner and a scheduling coordinator.  He said the EZ Rider service had about a 20 percent "no show" rate, which amounts to about $75,000 per year for trips never taken.  They need to look at the qualification process and at establishing some rules, he said.  Mr. Spade noted that the Chatham Park and Ride Service would be introduced this year and paid for by UNC. He said they also want to improve public information and marketing, and do more in the area of alternative fuels and green technology.

Council Member Easthom commended Mr. Spade on the incredible job he has done, noting that he had been working with the Town for only 11 months.  She remarked that he had performed wonderfully and was a great addition to Chapel Hill.

Council Member Thorpe said he was impressed with the presentation.  He suggested having EZ Rider drivers sign a form saying they had arrived at a specific time and no one had shown up.  Council Member Thorpe also suggested getting Butch Davis, the new UNC football coach, on tape promoting the fare free transit system.  He advised Mr. Spade to do so soon, before the football season begins. 

Mayor Foy asked about a plan to share the budget with the Town�s transit partners.  Ms. Johnson replied that the partners would receive budget information at the same time the Council does.
 
Mayor pro tem Strom asked when NextBus would add stops.  Mr. Spade replied that the goal was to do so over the summer or fall.  They want to place them in areas where overcrowding occurs, he said.