Summary Minutes

of a Chapel Hill Town Council

Breakfast Meeting with the

Orange County Legislative Delegation

Monday, February 19, 2007, at 7:30 a.m.

Mayor Kevin Foy called the meeting to order and made introductions at 8:00 a.m.

Council members present were Lauren Easthom, Sally Greene, Ed Harrison, Mark Kleinschmidt, Mayor pro tem Bill Strom, Bill Thorpe and Jim Ward.

Staff members present were Town Manager Roger Stancil, Assistant Town Manager Bruce Heflin, Deputy Town Manager Flo Miller, Town Attorney Ralph Karpinos, Mayoral Aide Adam Schaefer, and Long Range and Transportation Coordinator David Bonk.

Local delegation members present were Senator Bob Atwater, Senator Ellie Kinnaird, Representative Joe Hackney, Representative Larry Hall, and Representative Verla Insko.

Mayor Foy introduced North Carolina League of Municipalities Executive Director Ellis Hankins.  He noted that reporters from The Daily Tar Heel, The News and Observer and The Chapel Hill Herald were present, as was a representative from the Chapel Hill-Carrboro Chamber of Commerce.  Mayor Foy congratulated Rep. Hackney on his recent appointment as Speaker of the House. He recommended first hearing from the Town’s legislative delegation and then discussing Council issues and aspirations.

Rep. Hackney said it was a pleasure to be in Chapel Hill.  He explained that he started his tenure as Speaker of the House on January 21^st and that the House was in the process of being briefed on laws and fiscal issues.  The House was in the start-up phase, Rep. Hackney explained, adding that he expected to receive the budget from the Governor this week.  He said that committees would be starting soon and Council members were welcome any time.

Rep. Insko thanked the Council for giving her the opportunity to be present, noting that it was important to stay in touch with local elected officials. She explained that the focus of her work had been on Health and Human Services, mental health in particular.  Rep. Insko advised Council members to submit local bills early.  She said the House had adopted a rule that no blank bills could be introduced in the House this session.

Sen. Kinnaird said she was pleased to meet with the Council and was proud to represent Chapel Hill.  She said there would be an early deadline this year and that it was difficult to get local bills through.  Sen. Kinnaird said that the Senate was limiting the number of blank bills that each member could introduce and that she was preparing one blank bill for Orange County.

Rep. Hall said he was pleased to be in Chapel Hill.  He pointed out that Durham and Chapel Hill had issues in common and said that Rep. Hackney had summed up what he had intended to say.

Sen. Atwater said that he too was glad to be in Town and was looking forward to this year’s session.  He said he was interested in revenue options for local government and in issues pertaining to public education.

Mayor Foy recognized Mr. Hankins.  He then asked Mr. Bonk to discuss transportation issues, noting that these were statewide issues.

Mr. Bonk explained that the Town works through the Metropolitan Planning Organization (MPO) and the TIP process on funding.  He said that local projects had been delayed.  Mr. Bonk gave the Town’s signal system and work on Weaver Dairy Road as examples of delayed projects, and said that NCDOT had recently become less interested in non-road projects.  He mentioned a few of the Town’s other interests, such as the Safe Routes to School Program and hybrid buses.  Mr. Bonk said there was concern at the MPO about the financial impact of the equity formula on urban areas.

Mr. Bonk said there was a Town need for greater transit funding, as well as funding for sidewalks.  He said Chapel Hill had begun discussing changes to the Weaver Dairy Road project, but that DOT had been reluctant to discuss changes in the project’s design.

Mayor Foy explained that the Town was facing funding difficulties, but said that he was not complaining about DOT.  He listed three projects that were important to the Town with regard to transportation funding:

• Signal System.  The Town’s signal system is old, and the $5 million needed for fiber optics would help other aspects of the system as well.
• Weaver Dairy Road.  This project has been on the table for a long time.  However, the signal system is more important to the Town.  The estimated cost of doing Weaver Dairy Road is $12 million.

• South Columbia Street.  This project has been going on for about 20 years.  UNC, UNC Hospitals and the Town had all agreed on a plan, but NCDOT had deferred the project.  The Town would like to get this issue settled and the project built, at an estimated cost of $2.5 million.

Mayor Foy thanked the General Assembly for giving the Town the authority last year to work with developers to find transportation funding for buses rather than roads.  With regard to the Town’s list of issues, he pointed out that additional revenue sources were important for the Town and other municipalities.

Rep. Insko mentioned the Michaux Bill on local options.  Mr. Hankins noted that seven counties have transfer taxes.  Sen. Kinnaird said that pressure was growing for this menu.  Rep. Atwater said there was a need for options for local taxes.  Mr. Hankins pointed out that local revenue-raising flexibility was linked to meeting local transportation needs.

The group discussed a local sales tax option for transportation, such as the one that Mecklenburg County has.  Sen. Kinnaird asked Council members which of the proposals on the Town’s list the Council wanted the delegation to introduce.

Mayor pro tem Strom addressed Item #8 on the Statewide Issues list, noting that property values were rising and that qualifications for exemptions should go up.  He suggested making the amount a local option.  Mr. Hankins said there had been discussion in the Senate regarding residential property tax relief.  He said that income level is indexed, and, once qualified, exemption is adjusted based on a formula.  Sen. Kinnaird noted that there was room to make changes.

Mayor pro tem Strom asked if this index could be based on local values.  Mr. Hankins said that the options included deferral, and there would be room for additional relief for those who need help.  With regard to local options, he said, there were constitutional issues involved.

Council Member Harrison thanked the delegation for supporting S.3.H77 on renewable energy.  He listed Local Item #4 and Statewide Item #7 as important issues.  Council Member Harrison pointed out that the League supports doing a transportation funding study and said he hoped the delegation would do so as well.

The group discussed money for transportation going into interstate improvements in Orange County.  They also discussed DOT and the equity formula.

Council Member Kleinschmidt inquired about public financing of campaigns. Sen. Kinnaird replied that she keeps asking for such local bills and supports the idea of a public financing bill. 

Council Member Kleinschmidt noted that Chapel Hill had supported a moratorium on the death penalty.  He asked if there would be an opportunity for changes on this issue. Sen. Kinnaird replied that she would introduce and support a bill stopping execution on the mentally ill.

Council Member Ward inquired about the Bottle Bill, Item #12 on the Statewide list.  He said that having to pay a deposit on bottles would create an incentive to recycle and noted that 10 or 11 states already had such a bill.  Sen. Kinnaird replied that Orange County was at the top of counties in percentage of waste being recycled.  Council Member Ward pointed out that having a Bottle Bill keeps the roads cleaner and Sen. Kinnaird said that a bill would be proposed this year.

There was general discussion of solid waste issues, statewide tipping fees, and keeping out-of-state trash out of local landfills in North Carolina.  Rep. Hackney said that a growing demand for recycling materials by the recycling industry was an incentive to keep recyclables out of the landfill.

Mayor Foy said the Council would prioritize its list and provide it to the delegation.

There was general discussion of Item #13 on the Statewide list.

Mayor Foy thanked the legislators and said that the Town would prepare a formal request and provide it to elected representatives soon.

The meeting adjourned at 9:05 a.m.

2007 Legislative Issues for Discussion with Local Senators and Representatives