MINUTES OF A WORK SESSION OF THE MAYOR AND COUNCIL OF THE TOWN OF

CHAPEL HILL, NORTH CAROLINA, TUESDAY, MAY 15, 1990, 7:30 P.M.

Mayor Pro Tem Preston called the meeting to order.

Council Members in attendance were Julie Andresen, Joyce Brown, Joe Herzenberg, Alan Rimer, Arthur Werner and Roosevelt Wilkerson. Mayor Howes and Council Member James C. Wallace were absent excused.

Also in attendance were: Interim Town Manager Sonna Loewenthal, Assistant Town Manager Florentine Miller, Public Safety Director Cal Horton, and Finance Director James Baker.

Mayor Pro Tem Preston noted that the Council would discuss human service and hotel‑motel tax allocations at the beginning of this evening's work session, followed by other topics such as stormwater management. Mayor Pro Tem Preston noted that this evening's session was not a public forum, but was intended as an opportunity for the Council to have informal discussions concerning the Manager's recommended budget.

Mayor Pro Tem Preston noted that Council Member Brown would have some suggestions concerning potential budget cost savings. Council Member Andresen said she had some general questions concerning the proposed budget. Council Member Werner noted that the Council would possibly need another work session to discuss additional budget‑related items. Council Member Rimer concurred with Council Member Werner's observation. Interim Town Manager Loewenthal suggested that additional discussion on the budget could occur at the Council's May 29th meeting. Mayor Pro Tem Preston said she preferred holding another separate work session on the budget.

Mayor Pro Tem Preston inquired when the Mayor would return to Town. Ms. Loewenthal said the Mayor would be in Town for the Council's May 29th regular meeting. Ms. Loewenthal added that some items scheduled for consideration on May 29th could be moved to a future agenda if the Council directed. Mayor Pro Tem Preston suggested that additional budget discussions occur at the Council's May 29th meeting. Council Member Rimer noted that the Council would need to act on the proposed capital improvements program at their June 11 or 25th meeting. Ms. Loewenthal stressed the importance of adopting the budget by June 11th, so that the mechanics of the document could be in place by July 1st.

Interim Town Manager Loewenthal said she was pleased with the Human Services Advisory Board report on proposed human services allocations. Ms. Loewenthal noted that total program funding of $73,000 was recommended by the Board. Ms. Loewenthal stated that contingency funding for off-cycle emergency requests could be accommodated by using General Fund contingencies.

Council Member Andresen inquired about the merits of a human services contingency fund. Ms. Loewenthal responded that it was a good idea to have some funds available for unexpected situations. Mayor Pro Tem Preston noted that if human service allocation funding were in the general fund contingency account, such funds might be exhausted by other priorities. Council Member Werner said he did not foresee difficulty in locating $5,000 in the budget if necessary. Council Member Werner added that it would be easier to maintain contingency funding in one account in the General Fund.

Council Member Herzenberg requested that the Human Services Advisory Board reexamine the Orange County Mental Health Association's petition concerning funding of their program. Council Member Wilkerson stated that Dr. Vincent Kopp, Human Services Advisory Board Chairperson, had indicated that there would be no change in the Board's funding recommendation. Mayor Pro Tem Preston said the Board should review the situation as a courtesy to the Mental Health Association. Human Services Coordinator Julia Mack noted that the Town had not received a written request for review until earlier in the day. Ms. Mack noted that the Human Services Advisory Board would not meet again until June 25th. Council Member Wilkerson said he was concerned that all agencies be treated similarly in their funding requests.

Mayor Pro Tem Preston said it was appropriate for Dr. Kopp to examine the situation and determine the proper course of action. Mayor Pro Tem Preston stated that the Council should stand by Dr. Kopp's recommendation.

Ms. Loewenthal inquired whether the Council desired a set amount of contingency funding for human service requests. Mayor Pro Tem Preston said no.

Mayor Pro Tem Preston noted that hotel‑motel tax allocation recommendations had been prepared by the Town's Parks and Recreation Department. Mike Loveman, Parks and Recreation Director, reviewed the key points of the April 23rd memorandum to the Council concerning recommended allocations. Mr. Loveman noted that funding criteria had been drafted by the Parks and Recreation Commission and approved by the Council. Mr. Loveman stated that funding requests had totalled $98,000, while available funding was only $50,000. Mr. Loveman said that the allocation process had focused on providing a balance between visitor and cultural services.

Council Member Andresen inquired whether the Chamber of Commerce was requesting additional funding for the brochure that received funding in fiscal year 1989-90. Mr. Loveman said that the Chamber of Commerce was developing a magazine which would be available in early June. Mr. Loveman said the new funding was being requested for a smaller informational pamphlet project. Council Member Andresen inquired what percentage of costs were for development of the brochure. Mr. Loveman responded that approximately fifty percent of costs were attributable to art work and set‑up costs. Council Member Andresen noted that the Council had received mockup copies of the Council's proposed magazine. Mr. Loveman noted that 7,500 copies of the magazine and 10,000 copies of the brochure would be printed.

Council Member Werner noted that the Town had funded the Arts Center well in past years. Council Member Werner said that the continued existence of the Arts Center was in question. Council Member Werner stated that there had been little enthusiasm for local government purchase of the Arts Center facility. Council Member Werner recommended the establishment of a challenge grant of up to $50,000. Council Member Werner said the funds could be held in an escrow account for up to six months while the Arts Center initiated a fundraising drive and demonstrated that its financial affairs were in order. Council Member Werner stressed that a program of this type could determine whether or not the Arts Center could continue its operations.

Council Member Andresen said that such a program would not circumvent the work of the Town staff. Council Member Andresen inquired about the proposed time frame for such a program. Council Member Werner suggested that six months seemed to be a reasonable time frame. Council Member Andresen inquired whether Council Member Werner had spoken to the Arts Center Board of Directors about his proposal. Council Member Werner said he had not.

Council Member Wilkerson said he had serious reservations about the idea of a challenge grant for the Arts Center. Council Member Wilkerson stated that the organization had not been fiscally prudent during the last six months. Council Member Wilkerson said he did not think it was incumbent upon the Council to be the savior of any community organization. Council Member Brown observed that other organizations were equally deserving recipients of hotel/motel tax allocations. Council Member Rimer suggested a compromise wherein the Arts Center would receive at least $15,000 when the agency could prove its fiscal responsibility. Council Member Andresen questioned whether the Town government should be involved in subsidizing Arts Center operations. Council Member Andresen said Council Member Werner's idea was an interesting one which would require the Arts Center getting its house in order prior to receipt of allocation funding.

Council Member Herzenberg said that Council Member Werner's proposal was bold and refreshing. Council Member Herzenberg said his only concern with the proposal was the potential for non-funding of other deserving agencies. Council Member Werner said his proposal was a one-time funding program to assist an organization which might otherwise cease to exist in the coming year. Mayor Pro Tem Preston suggested possibly funding some smaller proposals in addition to pursuing Council Member Werner's grant challenge proposal. Council Member Werner noted that a sizable amount of money would be needed to make the grant challenge proposal viable.

Council Member Herzenberg inquired about the Town's funding of the Downtown Commission's brochure. Ms. Loewenthal said that the Town was proposing to fund some of this project. Council Member Herzenberg said there was some justification for delaying funding for the new brochure, since all programs could not be accommodated in the same year. Council Member Wilkerson expressed concern that human service agencies were required to provide quarterly reports and financial information to the Council, while the Arts Center had not been forthcoming with this information recently. Mr. Loveman stated that periodic reports were required from visitor and cultural services agencies. Council Member Brown said she had reservations about Council Member Werner's proposal since some unfunded agencies also merited funding consideration. Council Member Brown suggested that all agencies might be reviewed again.

Council Member Brown inquired whether $50,000 would be sufficient assistance to the Arts Center, given the magnitude of recent financial difficulties. Mayor Pro Tem Preston said the challenge grant might have a strong psychological impact, stressing the importance of the Arts Center as a valuable community asset. Mayor Pro Tem Preston said that the Arts Center Task Force would assess the Arts Center's financial and management structure in the near future.

Council Member Andresen said the challenge grant concept was a good one which merited further consideration by the Council. Mayor Pro Tem Preston concurred, adding that the ArtsCenter Task Force could work out a plan based on the challenge grant proposal. Mayor Pro Tem Preston said the idea could be further discussed at the Council's May 29th meeting.

Mayor Pro Tem Preston observed that there had ben some concerns raised about the allocations process. Mayor Pro Tem Preston noted that Council Member Wilkerson had recently requested information concerning the City of Atlanta's allocation process. Ms. Loewenthal noted that the information concerning the Atlanta allocation process had been provided in a memorandum to the Council. Ms. Loewenthal noted that Atlanta allocates seven percent of its funds, rather than the three percent allocated by the Town. Mayor Pro Tem Preston said it would not be possible to discuss a new process until the allocation of the current year's monies had been determined.

Council Member Wilkerson suggested that the needs of the community might best be served by allocating to only two or three organizations. Council Member Wilkerson said that agencies funded by the hotel‑motel tax did not appear to totally represent the community at large. Mayor Pro Tem Preston suggested that the Council discuss the allocation process in the near future.

Ms. Loewenthal noted that the staff could return with a report on the allocations process if the budget were not adopted until the Council's June 11th meeting.

Mayor Pro Tem Preston noted that a large portion of the budget was apportioned to solid waste programs. Ms. Loewenthal noted that refuse collection currently occurs twice each week, with pickup of an unlimited number of containers. Ms. Loewenthal noted that the Council had been given an extensive report and matrix summary of services at the May 10th work session. Ms. Loewenthal stated that potentially cost‑saving alternative refuse collection methods could be explored over the next several months. Ms. Loewenthal said that costs for solid waste disposal, including landfill siting and operations, continued to increase rapidly.

Council Member Rimer noted that approximately ten years ago, in his role as a private consultant, he had recommended that the Town explore front yard refuse collection. Council Member Rimer said he did not think the Council was in a position to immediately change refuse collection methods. Council Member Rimer noted that the staff had outlined six or seven viable alternatives for cost savings. Council Member Rimer said that recycling efforts should continue to be encouraged, possibly supplemented by once, rather than twice, per week refuse collection.

Council Member Rimer observed that many residents are uncertain of how or where to dispose of hazardous wastes around their home. Council Member Rimer said he favored the implementation of a household hazardous waste day. Council Member Rimer observed that the costs for a Town hazardous waste day would be less than the cost of the City of Raleigh's similar recent effort.

Council Member Rimer inquired about the estimated cost of the Town's recycling program during 1990-91. Mr. Heflin said the program cost was estimated to be $482,000 less anticipated revenues of $30,000, resulting in an actual estimated cost of $452,000. Council Member Rimer inquired whether $160,900 was the estimated cost of the curbside recycling program. Mr. Helfin said yes, noting that there was a three-year contract for this service. Mr. Heflin said that the Town staff shared the Council's concern about citizens keeping hazardous waste materials at their home due to the unavailability of an appropriate disposal alternative.

Mr. Heflin said the biggest single expense for a household hazardous waste day would be the staff time to manage such a program. Mr. Heflin said it was likely that a full‑time staff person would be needed for program coordination and publicity. Mr. Heflin said it would be advisable to have a public education program prior to initiating a household hazardous waste day in the area.

Council Member Andresen inquired about the estimated cost of a household hazardous waste day. Mr. Heflin said the cost would be up to $100,000, depending on the scope of the effort. Council Member Andresen inquired whether it would be possible to hold a hazardous waste day in cooperation with other communities. Mr. Heflin said that informal discussions about such an arrangement had occurred. Mr. Heflin noted that some economies might be achieved by following such an approach.

Council Member Werner asked whether there had been any discussions with the University, Orange County or other local government bodies about hazardous waste disposal. Mr. Heflin said that there had been previous discussion of a pilot hazardous waste project. Council Member Werner inquired whether such a concept would merit discussion by the Coordination and Consultation Committee. Mr. Heflin said yes. Council Member Werner suggested that a student might volunteer time to assist with the idea of a household hazardous waste day. Council Member Andresen noted that one student had completed a paper on the household hazardous waste day concept during the past semester. Mr. Heflin suggested that the joint work of a dedicated group of students might yield greater benefits for all parties.

Council Member Werner observed that once a week refuse collection did not appear to be as controversial an alternative as roll‑out refuse collection. Council Member Andresen asked whether once a week rear yard collection had any disadvantages for the Town staff. Mr. Heflin said that there would need to be more trips behind houses, which would slow down the collection process and possibly increase the number of injuries. Mr. Heflin added that it would also be necessary to make more journeys to the landfill on a daily basis. Mr. Heflin requested the opportunity to study alternative collection methods in greater depth.

Council Member Brown stated that adapting to once a week refuse collection would be one way to achieve cost savings without a great deal of changes. Council Member Brown inquired how long it would take to put a program in place whereby people paid for the volume of garbage that was generated in their household. Mr. Heflin said there were a variety of other factors to consider before initiating such a program. Mr. Heflin said he would provide a follow‑up report to the Council on this and other alternative collection approaches.

Council Member Wilkerson said he was uncertain whether once a week collection or curbside pickup was a better alternative collection method. Council Member Wilkerson stated that there appeared to be less opposition than in the past to alternative collection approaches. Council Member Brown stressed the need for consideration of types of containers and their associated fees for pickup.

Council Member Wilkerson stressed the importance of establishing a public education program about composting, recycling and other waste related matters.

Council Member Rimer said that the increasing costs of solid waste programs should provide sufficient impetus for more discussions on alternative programs. Council Member Rimer said it would be very difficult to make substantial program changes during the current year. Council Member Rimer added that changes could be implemented gradually if so desired by Town residents.

Council Member Brown inquired about the practicality of shifting to once a week collection during the next year. Mr. Heflin noted that this would require routing reconsideration and a public information program. Mr. Heflin said he could present information on a range of options in the future.

Council Member Werner noted that the Council historically had never taken an action impacting public service without first receiving significant public input. Ms. Loewenthal noted that public education would take some time, but the budget process would not pose any significant constraints to change.

Mayor Pro Tem Preston suggested that the Council adopt the Manager's recommended budget for solid waste programs, with adaptations in the future as necessary.

Council Member Brown noted that 37% of the commercial waste stream was found to be recyclable. Council Member Brown noted that this figure was fifty percent or higher in some areas.

Council Member Andresen inquired when the Town would need to set aside funds for a new landfill site. Mr. Heflin noted that money for landfill site reserves was being set aside at the rate of $110,000 per year. Mr. Heflin stated that the current landfill site would likely be filled by 1997-98. Council Member Andresen inquired about the anticipated cost of a landfill site. Mr. Heflin estimated that five hundred acres would be needed at a cost of approximately $20,000 per acre, equating to a cost of $10 million. Ms. Loewenthal noted that financing of the facility would not rest with just the Town, but would be the responsibility of all members of the landfill owner's group.

Council Member Andresen inquired whether higher tipping fees had encouraged tipping at other sites in the County. Mr. Heflin said this had not been his observation. Mr. Heflin noted that some smaller contractors had elected to haul to other remote dumping sites.

Council Member Wilkerson inquired whether individuals were dumping on streets or other areas. Mr. Heflin said there was some reason for concern about private, unlicensed dumping facilities.

Council Member Rimer encouraged the Town staff to investigate possible continuation of the mixed paper recycling program. Council Member Rimer noted that quantities might be temporarily stored at predetermined locations in the landfill for sale in the future when the market had improved. Council Member Werner stressed the need for State-wide recycling programs.

Council Member Rimer noted that the scope of the New York City paper recycling program would surpass the size of all other combined similar programs in the United States.

Council Member Preston commended Mr. Heflin for an outstanding job of providing information and alternatives to the Council concerning solid waste matters.

Ms. Loewenthal noted that a memorandum concerning stormwater management had been recently distributed to the Council. Ms. Loewenthal noted that the staff was currently performing an analysis and survey of future needs.

Council Member Andresen requested a summary of the proposed public housing budget. Ms. Loewenthal briefly summarized the proposed spending and program plan, noting that the final development agreement would not be completed until June.

Council Member Andresen inquired about the status of the Town's fund balance. Ms. Loewenthal said the balance was quite healthy, adding that additional information could be provided in the future.

Council Member Brown requested information concerning proposed contract service and staff travel expenditures. Council Member Brown also suggested that recreation program fees be reviewed by the Council. Ms. Loewenthal noted that recreation program fees are based on retrieving a portion of program costs. Council Member Andresen inquired whether Carrboro's fees were actually lower than the Town's. Ms. Loewenthal stated Carrboro's fees are determined on a different basis than the Town's fees. Council Member Andresen said she was not enthusiastic about raising fees in order to balance the budget. Council Member Werner concurred that raising fees was not an attractive option.

Council Member Wilkerson inquired about the status of the housing report. Council Member Wilkerson said this information would be vital to the Council's consideration of housing issues. Ms. Loewenthal said a portion of the report would be presented at the Council's May 29th meeting.

Ms. Loewenthal said she was particularly interested in learning about any areas of service which the Council wished to review in detail.

Mayor Pro Tem Preston noted that the Council had discussed parking fees at its May 10th budget work session. Mayor Pro Tem Preston inquired how much revenue could be raised from revised parking fees and asked where these additional monies would be expended. Ms. Loewenthal said there was Council consensus that the staff should provide an analysis of the parking fee structure and the proposed parking facility, with a follow‑up report to the Council in June. Council Member Werner said there appeared to be gene?al consensus to raise parking fees.

Council Member Rimer noted that public safety elements comprise approximately 25% of the Town's general fund component. Council Member Rimer said the fact that no questions had been raised about this component spoke very highly to the quality of service in this area.

The work session adjourned at 9:36 p.m.