MINUTES OF A WORK SESSION HELD BY THE MAYOR AND
COUNCIL OF THE TOWN
OF CHAPEL HILL, NORTH CAROLINA, THURSDAY, MAY
10, 1990, 7:30 P.M.
Mayor Howes called
the work session to order.
Council Members in
attendance were Julie Andresen, Joyce Brown, Joe Herzenberg, Alan Rimer
(arrived at 8:58 p.m.), Arthur Werner and Roosevelt Wilkerson (arrived at 7:45
p.m.). Mayor Howes observed that Council Members Preston and Wallace were both
out of town and were absent excused.
Also in attendance
were Assistant to the Mayor Lisa Price, Interim Town Manager Sonna Loewenthal,
Assistant Town Manager Florentine Miller, Public Safety Director Cal Horton,
Finance Director James Baker, Transportation Director Robert Godding, Police
Captain Ralph Pendergraph, Police Chief Arnold Gold, Public Works Director
Bruce Heflin, Police Planner Jane Cousins, and Town Engineer George Small.
Interim Town Manager
Loewenthal reviewed the scheduled topics for discussion this evening,
including: recycling, transit fares, capital projects and bond issues, and
solid waste. Council Member Werner observed that the Council had received a
large amount of new information concerning solid waste earlier in the evening.
Mayor Howes suggested that the Council discuss solid waste and recycling
matters on Tuesday evening, May 15th. Mayor Howes suggested that the Council
conclude its discussions by no later than 10:00 p.m. this evening. Mayor Howes
noted that there would be no formal actions or votes taken by the Council this
evening.
Interim Town Manager
Loewenthal stated that she had provided the Council with several alternatives
for the Town's proposed capital improvement program and the issuance of bonds.
Council Member Werner observed that the authorization for open space
acquisition was over an unspecified time period. Council Member Werner said
that given the clear support for open space, he would not be opposed to
proposing a referendum including $4 million or more for open space acquisition.
Ms. Loewenthal observed that bond authorization is for a maximum of seven
years. Council Member Werner said no one was certain of exactly how much bond
authorization was needed for open space. Council Member Andresen inquired about
potential future tax rate impacts due to the sale of bonds. Mayor Howes said
the maximum impact would occur if all the bonds were sold at the same
time. Finance Director Baker noted that
there had been a one cent rate increase attributable to the sale of $1.5
million in open space bonds. Mr. Baker
said that next year's tax rate equivalent on these bonds would be three
cents. Council Member Andresen inquired
about the average tax rate on these bonds.
Mr. Baker said it was difficult to hypothesize on this matter. Ms. Loewenthal said it would be considerably
more than one-half cent.
Mayor Howes inquired
about the Council's reaction to Council Member Werner's suggestion concerning
open space bonds. Council Member Andresen said she felt uneasy about the
proposed bond package in light of a possible tax increase to fund the general
operations and transit budgets. Council Member Andresen said she had received a
number of calls from retirees trying to live on low and moderate incomes.
Council Member Andresen said that seemingly small increases could be a
principal determinant of whether or not people choose to live in the Town.
Council Member Werner noted that holding fewer, larger bond issues would not
necessarily me?n that funds would be expended more quickly. Council Member
Andresen stated that the community might not be able to afford bond issues due
to tightening economic conditions. Council Member Brown said she was
particularly concerned about low and fixed‑income residents. Council
Member Brown added that she was especially concerned about the potential for
consistent property tax increase proposals.
Council Member
Herzenberg said he was annoyed by the perception that money is not consistently
spent on the items it is allocated for.
Mayor Howes observed
that only two bond issues had met with voter disapproval. Mayor Howes stated
that there was a critical need to respond to open space demands in the
community by providing voters the opportunity to vote on a bond proposal. Mayor
Howes cautioned that proposing a large bond issue might be inadvisable. Mayor
Howes suggested that the Council might be best advised to follow the Manager's
recommended bond proposal. Mayor Howes inquired about the status of the 1989
open space bond account. Ms. Loewenthal noted that $3.5 million of $5 million
had not been issued to date.
Council Member
Wilkerson said he had received telephone calls from a wide array of Town
residents concerned about economic matters. Council Member Wilkerson stated
that he was concerned about proposed future tax increases and proposed bond
issues. Council Member Wilkerson stressed the importance of prioritizing needs
of the Town. Council Member Wilkerson concluded his remarks by noting that some
major expenditures, such as those for meeting new solid waste regulations, were
unavoidable.
Mayor Howes requested
a clarification of Council Member Andresen's position on the proposed bond
issue. Council Member Andresen said it
might be advisable to hold no bond referendum at all in the current year. Mayor Howes observed that there was a
significant shortfall for the proposed library which would necessitate a future
bond referendum. Council Member
Andresen responded that it would be necessary to expend many additional dollars
on solid waste programs in the next budget year. Council Member Herzenberg said he recently attended the eightieth
birthday party of a local organization. Many of the participants at the
function had inquired when library site work would commence. Council Member
Herzenberg said he provided assurances that the work would be initiated in the
near future.
Library Director
Kathleen Thompson noted that the new facility would occupy 23,000 square feet
contrasted with 12,000 square feet in the present facility. Ms. Thompson noted
that American Library Association standards recommend that the Town have a
24,000 square foot facility. Ms. Thompson observed that a 47,000 square foot
facility would be recommended for the year 20?0. Council Member Andresen stated
that the Town's library facility had been of inadequate size for many years.
Ms. Thompson noted that American Library Association size standards were based
on area populations and expected service levels. Ms. Thompson observed that the
current facility had been inadequate for at least ten years. Mayor Howes noted
that the Library Committee had recommended that additional funds were needed to
supplement currently available funds.
Mayor Howes inquired
about additional capital and operating costs associated with the new library
facility. Ms. Loewenthal responded that operation of a 46,000 square foot
facility would result in additional annual costs of $660,000, principally due
to the need for significant additional staffing. Ms. Loewenthal noted that the
library's current budget is approximately $800,000 per year. Council Member
Herzenberg noted that there was a significant difference in library demands by
Town and County residents.
Council Member
Andresen said she would find it easier to recommend a bond referendum than a
tax increase. Council Member Werner said it would cost more to meet all the
additional demands of residents. Council Member Herzenberg observed that Orange
County commission candidates who had recommended spending controls fared poorly
in chapel Hill. Council Member Wilkerson said he thought there were many other
factors involved in the decision making process of these voters. Council Member
Herzenberg stated that no candidate ever wins on a platform of proposed tax
increases. Council Member Andresen said she felt strongly about the need to
minimize additional expenditures to protect the interests of low and moderate
income residents. Council Member Werner said that the Council had recently seen
strong support in the community for continued funding of the library, parks,
open space and bikeways and related programs.
Council Member Werner said there appeared to be little enthusiasm for
spending funds in the downtown area.
Council Member Brown
observed that the Town's estimated debt service cost in the next year was $1.8
million.
Council Member
Wilkerson said he would have difficulty in recommending a $9 million bond
issue. Council Member Wilkerson
suggested that priorities be assessed to arrive at a lower figure.
Mayor Howes observed
that Council Members Herzenberg, Werner and himself appeared to support the
Manager's recommended bond package, while Council Members Andresen and Brown
opposed the package, and Council Member Wilkerson favored a smaller bond
package.
Ms. Loewenthal noted
that the proposal for transportation bonds had been reduced to include only
funding for bikeways and sidewalks.
Council Member
Andresen said she favored the types of items being proposed in the proposed
bond package, but desired a more democratic way to decide on the ultimate tax
rate. Council Member Werner suggested that future budget discussions begin
prior to the Council's retreat in January. Council Member Herzenberg noted the
importance of council members serving as the elected representatives of their
constituents. Council Member Herzenberg stressed the need for citizens to
decide on a proposed bond referendum for future community needs.
Mayor Howes said that
compromise is the essence of the Town budget. Mayor Howes stressed the need for
finding some grounds for compromise. Mayor Howes stated that there was obvious
support for library, bikeway, open space and sidewalk programs. Council Member
Andresen raised the possibility of investigating a real property tax transfer
program.
Council Member Wilkerson
said he was especially concerned about items such as stormwater management and
water and sewer extensions, which had not been fiscally quantified in the
proposed budget. council Member Wilkerson said it was incumbent upon the
Council to bring these matters to the community's attention. Mayor Howes
concurred that it was the Council's responsibility to bring a comprehensive
picture to the community within the proposed budget.
Council Member Werner
inquired about the proposed time frame for adoption of the proposed capital
improvements program. Ms. Loewenthal said that as a practical matter, the
program would need to be adopted in June in order to initiate a bond education
campaign. Ms. Loewenthal noted that the mechanics of the budget process would
not be affected if the capital improvement program were not adopted during May.
Mayor Howes stated
that there were a variety of opinions on the Council concerning the proposed
budget and capital improvements program.
Mayor Howes said the business of government begins when issues cease
being rhetorical and begin to become hard choices.
Ms. Loewenthal
introduced Transportation Director Robert Godding to provide an overview of the
proposed transit fund budget. Mr.
Godding said that there were two current major transit funding issues: proposed
increases in transit fares and the need for contingencies to address reduced
federal funding of mass transportation. Mr. Godding said the funding situation
could alternately be addressed by increasing fares, reducing service, or
increasing non‑operating contributions. Mr. Godding noted that the
Council had approved a one‑cent transit tax increase in 1988. He added
that a $360,000 shortfall was projected in the 1990‑91 transit fund. Mr.
Godding stated that a ten cent fare increase, the first in seven years, was
proposed to take effect on July 1, 1990.
Council Member
Andresen inquired about the possible effect of the fare increase on ridership.
Mr. Godding said a three percent maximum ridership reduction was anticipated.
Mr. Godding added that elasticity of demand for ridership was difficult to
judge.
Council Member Werner
inquired how often schedules were evaluated for ridership. Mr. Godding said
that routes and schedules were evaluated on a continuing basis. Mr. Godding added
that schedules are adjusted on an annual basis. Mr. Godding stated that the
majority of changes occur at the direction of the Transportation Board. Council
Member Werner asked whether the transit system was well optimized. Mr. Godding
stated that the system was responsive to most demands, with occasions when
demand exceeds supply. Council Member Werner inquired about the status of Smith
Center shuttle operations. Mr. Godding said that the operation went smoothly on
balance. Mr. Godding noted that money was lost on some events but, overall,
revenues exceeded expenditures. Mr. Godding added that a threshold of 8,000
attendees was required to initiate the availability of shuttle service.
Council Member
Herzenberg inquired about the impact of reduced price bus passes. Mr. Godding
said that pass discounting reduced the level of system revenues. Mr. Godding
noted that most systems do not reduce their annual pass prices to the same
extent as the Town.
Council Member Werner
inquired about the status of park and ride lots in the area. Mr. Godding said
that service would ultimately be provided at twenty minute headways during the
day and fifteen minutes at peak hour demand.
Council Member
Andresen requested information about the cost of the shared ride system. Mr.
Godding said the annual contract cost was $135,000. including evening and
Sunday service. Council Member Andresen inquired whether the service area was
for those with special needs or all riders.
Mr. Godding stated that the service was intended for those with special
needs. Mr. Godding said that the
service is an important supplement to the normal operating system, especially
on Sundays.
Council Member
Andresen noted that some citizens had suggested the use of half-size
buses. Council Member Andresen asked
for Mr. Godding's thoughts on this proposal.
Mr. Godding noted that a recent study by a graduate student in
operations research recommended that the Town add ten new forty foot buses
(five feet longer than standard buses) to the system. Mr. Godding adding that
the chief operating system cost is that of bus operators. Mr. Godding said that
lower wages were not paid to drivers of smaller vehicles.
Council Member Brown
inquired how Mr. Godding would respond that some buses operated without
passengers. Mr. Godding stated that most buses are empty or nearly empty at
some point along their route. Mr. Godding added that normal bus ridership
during the university semester is 14,000 per day, contrasted with 4,000‑4,500
riders per day during the summer.
Mayor Howes requested
that Mr. Godding summarize the Transportation Board's discussions leading up to
their recommending the adoption of the Manager's recommended budget to the
Council. Mr. Godding noted that the Transportation Board shared the Council's
concerns about proposed bus fare increases. Mr. Godding said that the
Transportation Board did not wish to take any steps which would decrease bus
ridership. Mr. Godding stated that alternative funding sources were being
explored in anticipation of reduced federal funding for mass transportation.
Mayor Howes inquired
about the feasibility of increased parking fees at the Town's parking lots. Mr.
Godding said that despite relatively high parking fees, there is relatively
inelastic demand in the Town's lots. Mr. Godding stated that the average stay
in a Town parking lot is ninety minutes. Council Member Herzenberg said this
statistic appeared to contradict the perception that many students park in the
downtown lots all day.
Council Member
Andresen inquired about the operation of lot number three. Mr. Godding said
that this lot lost money when it was staffed by a collector. Mayor Howes
inquired about the possibility of using automated collection systems in order
to reduce personnel costs. Mr. Godding said that the issue had not been studied
completely. Mayor Howes noted that personnel costs in the parking lots were
substantial.
Council Member
Andresen inquired whether any action was taken against repeat parking
violators. Police Captain Ralph Pendergraph said that the General Assembly
permitted fines of $5 for overtime parking and $25 for more serious
violations. Captain Pendergraph said
that repeat violators could be taken to small claims court to recover overdue
fines. Council Member Andresen inquired
whether this course had been pursued.
Captain Pendergraph said no, adding that many violators are non-Town
residents who could not be pursued under State statutes.
Council Member Brown
inquired about the reaction of the Town of Carrboro and the University to
proposed parking fee increases. Mr. Godding said that Carrboro Board of
Aldermen was also meeting this evening. Mr. Godding said he was uncertain of
their reaction to the proposed fee increases. Mr. Godding added that the Town
of Carrboro might not favor the increase due to difficulties in balancing its
own budget. Mr. Godding noted that the University had instituted a student
transit fee within the last year.
Council Member
Herzenberg said that those who benefit from transportation services should be
willing to pay slightly more for this convenience. Council Member Andresen said
she would support the proposed fare increase subject to maintaining fairly
stable current ridership levels. Council Member Andresen inquired whether it
would be possible to discount the cost of park and ride service from Plantation
Plaza. Mr. Godding said this was possible, noting that most systems charge a
premium above normal fares for park and ride services. Mr. Godding noted that
the Interim Town Manager was not recommending any immediate increases in
parking fees.
council Member Rimer
said he did not see why parking fees could not be raised now and in the future
on the basis of supply and demand. Council Member Rimer inquired what percentage
of bus riders use passes. Mr. Godding said that approximately sixty‑five
percent of riders use passes. Council Member Rimer observed that approximately
thirty.five percent of bus riders would be paying the additional ten cent fare
each time they rode the bus. Mayor Howes observed that actual costs to riders
had gone down, when inflation factors are taken into account. Council Member
Wilkerson said he favored the Manager's recommended ten cent fare increase.
Mayor Howes said there appeared to be a wobbly consensus in favor of the
proposed fare and pass increases. Mayor Howes said he was unsure of the
Council's stance on parking fees.
Council Member
Andresen inquired about the impact of the ten cent fare increase on the bus
system's exact change policy. Mr. Godding said that no problems had been
encountered with the exact change policy had been encountered to date and few
were anticipated in the future.
Mr. Godding noted
that any changes in metered parking fees would require significant changes to
existing equipment. Council Member
Werner requested that the Town Manager provide an analysis of how an additional
$40-$80,000 in parking revenues could be raised. Ms. Loewenthal said it would not be difficult to incorporate such
a fee increase following budget adoption.
Mayor Howes said it appeared to be the Council consensus that it was a
good time to raise parking fees.
Council Member Werner
suggested that the Council discuss solid waste matters at its May 15th work
session.
Council Member Werner
observed that only Pittsboro and Hillsborough had lower tax rates than the Town
in a six‑county region.
The work session
concluded at 9:37 p.m.