SUMMARY MINUTES OF A WORK SESSION
OF THE CHAPEL HILL TOWN COUNCIL
WEDNESDAY, MAY 15, 2002, AT 5:30 P. M.
Mayor Kevin Foy arrived and called the meeting to order at 5:40 p.m.
Council members present were Flicka Bateman, Ed Harrison, Mark Kleinschmidt, Bill Strom, Dorothy Verkerk, Jim Ward, and Edith Wiggins.
Mayor pro tem Pat Evans was absent, excused.
Staff members present were Town Manager Cal Horton, Assistant Town Manager Florentine Miller, Town Attorney Ralph Karpinos, Assistant to the Manager Bill Stockard, Information Services Director Bob Avery, Police Chief Gregg Jarvies, Housing Director Tina Vaughn, Public Works Director Bruce Heflin, Transportation Director Mary Lou Kuschatka, Human Resources Director Pam Eastwood, Finance Director Jim Baker, Inspections Director Lance Morris, Parks and Recreation Director Kathryn Spatz, Engineering Director George Small, and Town Clerk Joyce Smith.
Manager's Update on Recommended 2002-03 Budget
(distributed on April 22, 2002)
Mr. Horton stated that he was pleased to be able to report a gain of revenue, rather than the usual losses that had become so frequent this year. He then explained that the State would disperse the Town's $2,400 May share of the Library Grant Fund after all. Mr. Horton cautioned Council members, though, that the Town probably would not receive those funds next year. Mr. Horton also said that the Town would receive $235,000 above and beyond what had been expected. This was the result of an adjustment in sales tax payments due to a recent audit, he explained, noting that this too was a one-time adjustment and should not be counted on next year.
Referring to a memo from Finance Director Jim Baker, Mr. Horton projected that the amount of State-collected local funds the State was likely to withhold in 2002-2003 would be $3,024,000. He noted two changes in the adjusted estimate of 2002-2003 revenue shortfall and stated that the total revised shortfall estimate was $2,806,000, or 6.82 cents on the tax rate. Regarding the estimated undesignated reserves in annually budgeted funds, Mr. Horton noted a change for the Downtown Service District.
Mr. Horton explained that Mayor Foy had asked him to comment on what the staff would recommend if the Council instructed them to hold to a 5 cent tax rate increase. He then proposed two ideas:
· that the Town Council use the $235,000 from the adjusted sales tax payments; and
· that the Town make a heavier draw on the Parking Fund.
Mr. Horton pointed out that the Town had operated in the past with less than the present $718,756 parking fund balance, adding that there were no urgent repair needs or other problems pending in that fund. Mr. Horton recommended that the Town Council consider using $415,000 from that fund balance. He said that amount probably was feasible based on the projected needs and the history of that fund.
Mr. Horton recommended that the Council consider withholding the $65,000 that the staff had recommended for street reconstruction and postponing that project to a subsequent year. Finally, he said that there could be $35,000 in expenditure from the General Fund balance, adding, though, that this was the last choice. Mr. Horton explained that the combined additional revenues from all of these changes would be $750,000, which would allow the Council to reduce the tax rate increase to 5 cents rather than 6.82 cents. He pointed out that the most significant amount would come from the parking fund, and that it assumes raising parking fees.
Council Member Strom pointed out that a high percentage of the extra sales tax revenue had come from UNC and UNC Hospitals inappropriately coding some of their transactions. He asked if that had been corrected. Mr. Baker replied that it had been, adding that the Town's refund would have no effect on the University or the Hospital.
Council Member Strom asked if ideas such as converting parking meters to be able to read "smart cards" and extending hours in some lots had been factored into Mr. Horton's figures. Mr. Horton replied that the "smart card" research had not been completed in time, but that it might be completed before the Council acts on the budget.
Mayor Foy determined that using the suggested funds would leave the Parking Fund balance at about $300,000 by the end of next year.
Council Member Ward asked for more information about the staff's research on "smart cards." Mr. Horton replied that the staff was waiting for additional information regarding cost and predictability of revenues. They should be finished with their report in about a week, he said, and would offer it to the Council for a decision.
Public Works Department
a. Questions Regarding Commercial Garbage Collection.
Mayor Foy noted that the commercial garbage collection issue had not been considered when developing the budget. Mr. Horton explained that the staff had not recommended changing the Council's present policies because making the kinds of changes being contemplated could create difficulties with, and for, Orange County. He said that the next step was to get an opinion from Town Attorney Ralph Karpinos, who was working on this. Mayor Foy pointed out that one proposal had been that the Town collect fees that would generate approximately $300,000. Mr. Horton said that the total amount would be about $390,000. He added that if the Town did pursue that idea it would be important to do so in a manner that does not create problems for Orange County and/or disrupt the recycling service without a replacement plan.
Council Member Strom asked for an estimate of how much money would be lost if the Town got out of the commercial collection business altogether and sacrificed the tipping fees. Public Works Director Bruce Heflin explained that doing so on a nine-month basis with no layoffs would amount to $605,000 in the first year. For twelve months, he said, the cost would be about $715,000. Mr. Horton determined from Mr. Heflin that those figures included the one-time sale of equipment.
Council Member Bateman recommended that the Town Council make decisions based on the Town's needs. She suggested letting Orange County know about it if the Town decides not to act in order to protect the County's financial situation. Council Member Bateman said that the Town should honor its contracts, but added that she hoped it could ultimately have the franchise agreement that the Council had talked about. Mr. Horton said that he did not think the contract states that the Town has to stay in the trash collection business. He added, though, that Orange County's attorney might argue that the Town is required to keep everything under its control going to the County. Council Member Bateman noted that "under your control" was a nebulous term. Mr. Horton agreed.
Council Member Strom pointed out that the County wants to stay in the business because of the tipping fee revenue.
Mayor Foy asked for a recap to previous concerns about the Town instituting a fee without having a franchise agreement. Mr. Heflin explained that there was the possibility that private sector haulers could make efforts to undercut the Town's fee structure to capture as much of the business as they could. He added that the Town had seen some evidence of this in recent months. Mr. Heflin explained that if the waste goes away, and the tipping fee revenue drops, that will affect the County's ability to provide services at the landfill and for other waste management programs.
Mayor Foy noted that Mr. Heflin had said that instituting a fee might not generate the predicted $390,000 in revenues because of the attrition rate the Town might see from current collections. He asked how much lower than the $390,000 it might go. Mr. Heflin replied that the Town had made a very conservative estimate based on losing as much as 25% of the customer base and then only collecting a portion of that. He did not think the private sector would undercut the Town at a rate that would generate $390,000, he said, but added that there is always that possibility. Mr. Heflin noted that more than half of the Town's costs were in tipping fees. He pointed out that the private sector sets their own fees at whatever they want it to be. Mr. Heflin said that some haulers were marketing a service where they would collect everything mixed together. A couple of the Town's fairly significant restaurant customers had begun using that service, he said. Mr. Heflin explained that Mr. Karpinos was researching whether the impending County ordinance regarding the handling of recyclable materials would address that.
Council Member Kleinschmidt pointed out that this situation seems to demonstrate that the Town does not really have control. Mr. Horton said that he hesitated to speak on that in the absence of a written opinion from the Attorney.
Mayor Foy clarified that the County would not view the Town instituting a fee as a violation of the agreement. The County would only object to the Town getting out of the business completely, he said.
Council Member Kleinschmidt pointed out that the Town could potentially create a situation where it gets out of the business by charging a fee that creates attrition. Mr. Horton stated that the staff was not yet engaged in a discussion of the meaning of the words in the Interlocal Agreement. He said they were still focusing on whether or not the Town could require a franchisee to use the facilities provided by Orange County. Mr. Horton noted that the County was interested in this mainly because of the relationship between revenues from the landfill and the cost of recycling.
Mayor Foy wondered if cutting the fee in half would prevent the loss of customers while still generating revenues of approximately $400,000. Mr. Horton replied that a lower fee would minimize the inducement to go to a private hauler.
Council Member Strom asked if the work that County Manager John Link was currently engaged in would include some discussion of separating a fee for recycling services. Mr. Horton replied that the Solid Waste Advisory Board had begun that discussion, and suggested that the Council communicate its interest to its two appointees to that Board.
Council Member Strom repeated Mayor Foy's inquiry about cutting the fee. Mayor Foy pointed out that the Town was subsidizing this even at the level that Mr. Heflin had proposed.
Council Member Ward commented that the Town also was supporting recycling and that allowing businesses to use commercial firms involves more than merely looking at the bottom line.
Mayor Foy agreed, adding that there was a level, though, where it would not be attractive for businesses to switch to a hauler other than the Town.
Council Member Strom said that commercial firms saw it as easier not to recycle. Mr. Horton replied that there was a combination of factors. A higher fee, combined with some customers' resistance to recycling, would cause some customers to move away from the Town, he said. Mr. Horton noted that a fee of $1,000 would be what commercial haulers would charge if they low-balled it. That, combined with not having to separate their trash, would make it attractive to some, he said. But if the Town set its fee $100, for example, perhaps no one would change.
Council Member Strom suggested that Mayor Foy communicate the Council's concerns to its representatives on the Solid Waste Advisory Board. Mayor Foy agreed to do so and invited others to do so as well.
Council Member Kleinschmidt asked what message Mayor Foy would take to the Board. Mayor Foy replied that the sense of the Council seemed that they wanted the County to move in the direction of finding an alternative source of revenue to fund recycling. He said he would report that the Council recommended that the County do so as soon as possible so that all are not in the awkward position of having to generate trash in order to recycle.
Council Member Harrison noted that the last response to the request to find an alternative source of funding was to charge more. He said that he had once described that as a disincentive to recycling, adding that other areas in the State had been cutting it out completely.
Mayor Foy pointed out that the Town had researched "pay-as-you-throw" and is now confronting this commercial collection issue. At each point the County's interest has been adverse to the Town's, he said.
Mayor Foy suggested that the Town decide if it wants to institute a fee, and, if it does, then introduce that into the budget mix. Mr. Horton commented that the only issue would be if the fee were set at a level that did concern the County. Mayor Foy asked the staff for its best guess about what fee would divert a minimal amount of waste away from the Town's collection.
Council Member Verkerk asked for information on what private collection companies charge. Mr. Horton explained that those rates were proprietary, but agreed to try and get them.
Council Member Harrison asked for additional information regarding dead end signs. Mr. Heflin replied that the Department had replaced the dead end sign with one that they hoped would be more effective. He added, though, that the goal was to minimize sign clutter while also providing notice. Mr. Heflin said that the Department would add the "no outlet" or "dead end" decal to new street signs, and to others as well as they periodically upgrade them.
Transportation Department
Mr. Horton asked Transportation Department Director Mary Lou Kuschatka to go through the issues, one by one, that the Council had asked them to discuss.
1. Resident Parking Permit Fees.
Ms. Kuschatka explained that the Town currently issues about 700 residential and 200 temporary parking permits each year. She proposed assessing a fee of $10 per residential permit per vehicle per year. The Department also proposed a fee for replacement of lost, stolen or destroyed permits and a $3.00 fee for a temporary parking permit, she said. Ms. Kuschatka calculated that these fees would generate an estimated $10,600 per year, which would cover part of the administrative cost of the residential parking program. She noted the disadvantage that residents would be charged for parking in front of their houses.
Council Member Harrison determined that residents were not presently being charged for parking in front of their houses. He asked if this was being done anywhere else in North Carolina. Ms. Kuschatka and Mr. Horton replied that they did not know of anywhere else that did this. Mr. Horton predicted that charging fees would generate many complaints.
2. Increase Parking Fee for Monthly Leased Spaces.
Ms. Kuschatka outlined a proposal to increase monthly parking fees from $65 to $80 per month. She stated that doing so would increase annual revenue by $33,484.
Council Member Strom described the proposal as a "great idea."
Council Member Bateman noted the irony of the Town looking at parking fees for revenue even though the Town's stated goal was to discourage people from driving.
Mayor Foy determined that there was no objection to this proposal from Council members.
3. On-Street Leased Parking Spaces.
Ms. Kuschatka outlined a pilot program to provide leased, on-street spaces instead of meters in some areas. She said that 25 spaces at $80/month would generate $24,000, less the cost of required signage. Ms. Kuschatka noted that there typically is a waiting list for leased spaces in the fall.
Council Member Kleinschmidt noted that on Saturday nights most of the leased spaces are empty. He suggested charging less for leased spaces and having them available on weekends and evenings.
Council Member Wiggins determined that most requests for leased spaces come from students and west end businesses.
Council Member Strom commented that Council Member Kleinschmidt had raised a good point and asked if spaces could be leased Monday through Friday during business hours. Mr. Horton suggested replacing the meter head with a sign saying that the space is leased for certain hours of the day, and then not charging after those hours. He predicted that the market would still bear $80/month for the spaces, but recommended budgeting for $12,000 (half the amount indicated) at the start.
Council Member Bateman noted that this would also affect Parking Lot #5.
4. Parking Enforcement in Lots 3 and 5 until 9:00 p.m.
Ms. Kuschatka explained that these two lots combined could generate an additional $42,400 in parking revenue, if calculated at a 50% occupancy rate. Mr. Horton noted that this would be reduced by about $16,000 due to the additional enforcement hours required to make it work.
Council Member Ward asked how 9:00 p.m. was arrived at. Ms. Kuschatka replied that it seemed logical since it was how the University enforced its meters. She also said that after 5:00 p.m. the meters could be programmed to accept up to four hours at a time rather than the two that they accept now.
Several Council members commented on the problem of having to carry many quarters around. Council Member Strom said that he would reserve comment until the Council receives feedback on the feasibility of having better technology. Mr. Horton remarked that the Town would get extra income out of going until 9:00 p.m. no matter what.
Mayor Foy said that he was comfortable with the Town moving forward on this idea, and Council members agreed. Mr. Horton noted that this would be the ideal situation for a "smart card" vending machine arrangement.
5. Grace Period on Parking Meters.
Ms. Kuschatka recommended setting meters for a five-minute grace period during which the expired meter would not flash. The Town would lose about $10,000 in revenue with this, she said. Council members approved by consensus.
5. Addition of Parking Meters.
Ms. Kuschatka identified four areas of Town that could support additional parking meters:
· North side of West Cameron Avenue between Pittsboro Street and Mallette Street -10 meters.
· South side of West Cameron Avenue between Kenan Street and Merritt Mill Road - 10 meters
· West side of Wilson Street (off Cameron Avenue) - 11 meters
· East side of Robertson Street between West Franklin Street and West Cameron Avenue - 15 meters.
Ms. Kuschatka recommended notifying bordering property owners before the meters are installed if Council members wish to pursue this.
Council Member Verkerk praised the idea and remarked that the Town did not need to continue providing free parking for students.
Mayor Foy asked why there would only be three residential parking permit spaces. Parking Services Superintendent Brenda Jones replied that it was just a small zone. Mayor Foy determined that the staff did not anticipate displacing any residents since none had been parking on the street anyway.
Council Member Kleinschmidt asked if this could be reevaluated and changed later on. Mr. Horton replied that it would be important to write a little flexibility in so that the staff could respond to the market and the needs of customers without having to come back to the Council each time.
Council Member Strom inquired about potential revenue. Mr. Horton recommended giving notice to the properties before coming to a conclusion about revenues, which he said would be small.
6. Additional Sunday Hours.
Ms. Kuschatka explained that the staff had been looking at all avenues for increasing revenue, including perhaps charging earlier than 2:00 p.m. on Sunday at the parking deck and lot #2 and enforcing the meters. She predicted that there would be numerous complaints if the Town made such changes. Mr. Horton noted that doing this might create problems for surrounding neighborhoods as churchgoers circle around looking for free parking.
Council Member Ward asked when most of the cars were off the streets on Sunday. Mr. Horton replied that most were gone by 2:30 p.m., which is when the Town starts towing.
Council Member Kleinschmidt pointed out that the University does not charge for parking on weekends. He noted that UNC would continue to be an enormous, free, downtown Sunday parking lot.
Council Member Ward proposed starting the meters on Franklin Street on Sunday at 3:00 p.m.
Council Member Bateman suggested not changing them at all this year. There was not a majority on the Council interested in requesting a report.
Ms. Kuschatka said that the staff was continuing to work on the "smart card" technology, the vending systems, charging peak hour premiums for parking in the deck in lot #2, and the reconfiguration of lot #5.
4. Engineering Department
a. Response to a Budget Work Session Petition from a Public Housing Representative.
Engineering Director George Small explained that there had been a petition from Ms. JoAnn Shirer-Mitchell regarding traffic improvement and drainage in the following three areas of Town:
· Traffic Signal at the Intersection of New Stateside Drive and Airport Road.
Mr. Small explained that the NC DOT had not been able to justify this signal in the past. He said that they probably would be willing to investigate it again, however, even though things probably have not changed significantly since 2001.
Council Member Bateman asked if it would be worth asking the DOT to consider installing a traffic light there that would operate only at peak hours and act as a caution light the rest of the time. Mr. Small agreed to ask if the DOT would be willing to consider that.
Council Member Ward asked if the request would include a pedestrian activated stoplight, if warranted. Mr. Small said that it would. Mr. Horton added that the Town routinely asks for those signals now. Council Member Ward asked if the Town also requests signals activated by bicycles. Mr. Small replied that they do not because DOT does not see that technology as effective and reliable.
Council Member Harrison inquired about when the flash operates on signal lights. Mr. Small and Mr. Horton explained that it operated between 2:00 AM and 6:00 AM when there is very little traffic.
Mayor Foy suggested interrupt the meeting so that Council Members Wiggins and Ward could bring up subject of interest to them. They would soon have to leave for a meeting of the School and Land Use Council in Hillsborough, he said.
Council Member Ward commented on Agenda Item #6, Agenda Items Provided at Alternate Sites, and suggested petitioning at the three sites to evaluate the interest level of people there on whether they might use the Council document. He also wondered what kind of staff support might be available at the sites to help people use Town documents. Mr. Horton replied that the staff could consult with staff at the sites and try a test for a period of time, if the Council so wishes.
Council Member Ward and Wiggins were excused from the meeting at 7:10 p.m.
· Changes to traffic signal timing and signs at the Intersection of South Estes Drive and Fordham Boulevard.
Mr. Small agreed to again ask the DOT for the one signal timing change that the petitioner requested, even though the Town had asked for this before and had not obtained it. He agreed with the petitioner that it would be difficult for someone who is not very sprightly to make it all the way across Fordham Boulevard.
Mayor Foy pointed out that drivers do not realize that a lot of pedestrians, including many children, cross at that intersection.
Council Member Verkerk asked if the DOT had been made aware that the fare free bus system had increased the number of pedestrians in Town. Mr. Small replied that this would be an important point to make to them.
Mayor Foy remarked that he had noticed many more pedestrians standing in the center lane of Airport Road trying to get across. Mr. Horton pointed out that there was a similar issue on Franklin Street, between Elliot Road and Estes Drive.
Council Member Verkerk noted that signal lights take so long to change that people walk across without waiting.
b. Excavation of Bolin Creek and Installation of a Fence.
Mr. Small said that the Department could not respond positively to either the request to excavate Bolin Creek to mitigate flooding or the request to install a fence adjacent to the creek and the neighborhood. He explained that trying to get permission to do so would be a huge process and that it would not achieve the goal of mitigating flooding in a big event. Mr. Small pointed out that Resource Conservation District rules explicitly prohibit fences along stream banks. He offered to place warning signs along the area subject to periodic or intermittent flooding. He also suggested that the neighborhood educate parents and children about how the stream rises and falls quickly and dramatically and has occasional water quality problems.
5. Information Technology Department
a. Web Site Usage Analysis
Information Technology Director Bob Avery submitted a memo in response to the Council's request for further explanation of the web usage elements depicted on a graph displayed at a February 27, 2002 Council meeting. He included some additional analysis of January, February and March, which shows that the Transportation Information section had been the most frequently used site due to the new fare free bus system.
Mayor Foy determined that the 47% of visitor interest was due to a drop off in the relative interest in other sites.
6. Town Clerk Department
a. Council Agenda Materials Provided at Alternative Sites.
Mayor Foy noted that this was the issue that Council Member Ward had referred to. Mr. Horton pointed out that there was no money available in the budget that would allow the Town to do this at the level suggested. He offered to make inquiries at the centers to see if it would be practical to get feedback, however.
Council Member Strom said that he had previously suggested some specific locations because he believes there is public Internet access at those locations. He asked the Clerk's Office to clarify, when they make their inquiries, if the public could be made aware that anyone can come into the Skills Development Center, for example, and get Internet access to the Town website. Mr. Horton replied this was easy to do at Town facilities, adding that the staff had been trying to focus on the key request submitted by the Council.
Council Member Kleinschmidt suggested putting a laminated, step-by-step card with instructions on how to access the Town's website next to computers at various locations.
7. Other matters as desired by the Council
Mr. Horton suggested that the Council plan on conducting a work session on June 12th for additional reporting on parking and commercial garbage collection, and an update on revenue items and on any action that the General Assembly might have taken.
Mayor Foy determined that Mr. Horton was suggesting meeting on June 12th and holding the possibility of scheduling another meeting on June 19th. Council Members agreed to schedule meetings for 4:00 p.m. on June 12th and at 5:30 p.m. on June 19th.
Council Member Verkerk asked if there had been any more information on the State’s plan not to pay the Town for fire protection. Mr. Horton replied that Representative Verla Insko had passed this information from a John Locke Society internet site only to alert the Town that John Locke was recommending that those funds be taken. He said that there was no reason to believe it would really happen, even though anything is subject to discussion by the General Assembly.
Council Member Kleinschmidt asked for more information on this issue. Mr. Horton explained that the John Locke Society had proposed that the $850,000 that normally is appropriated each year to reimburse the Town for a portion of the fire services that it provides to the University should be taken out of the General Budget and put into the University's budget, or eliminated.
The meeting adjourned at 7:28 p.m.