MINUTES OF A BUDGET WORK SESSION HELD BY THE MAYOR AND COUNCIL OF

THE TOWN OF CHAPEL HILL, TUESDAY, APRIL 7, 1992 AT 7:30 P.M.

Mayor Broun called the session to order. Council Members in attendance were Julie Andresen, Joyce Brown, Joe Capowski, Mark Chilton, Joe Herzenberg, Alan Rimer (arrived at 8:39 p.m.) and Arthur Werner. Mayor Broun noted that Council Member Wilkerson was ill and unable to attend this evening's session. Also in attendance were Assistant to the Mayor Lisa Price, Town Manager Cal Horton, Assistant Town Managers Sonna Loewenthal and Florentine Miller, Assistant to the Manager Greg Feller, Finance Director James Baker, Personnel Director Pat Crotts, Planning Director Roger Waldon, Fire Chief Dan Jones, Inspections Director John Davis, Public Works Director Bruce Heflin, Library Director Kathleen Thompson and Town Attorney Ralph Karpinos.

Mr. Horton said the Council had previously directed the staff to compose a budget that did not require a property tax increase. Mr. Horton stated that he intended to comply with this directive. He noted that some Council Members had expressed interest in additional capital improvement items. Mr. Horton added that there was also some interest in adding crisis counselor and narcotic investigator positions in the Police Department. He noted that department heads would present several proposals this evening concerning possible new revenue sources. Mr. Horton said he hoped to receive direction with some particularity from the Council this evening.

Cable Television Franchise Fees

Assistant to the Manager Greg Feller noted that the Town had collected cable television franchise fees since 1979. He noted that the current three percent fee derived annual revenue of $96,000. Mr. Feller said raising the fee from three to five percent would yield an additional $64,000. He stated that other utilities currently paid a six percent gross receipts tax to the State of North Carolina. Council Member Brown inquired whether there was any way of knowing that the estimate of sixty cents per month per cable customer would be the actual increase levied by the Town's cable franchise. Mr. Feller said the estimate was based on a two percent increase of a typical thirty dollar monthly bill. He noted that there was no way to guarantee the extent of the increase.

Council Member Capowski inquired about the estimated number of cable television subscribers in Chapel Hill. Mr. Feller said there were approximately eight thousand. Council Member Capowski inquired why the current cable franchise fee was three percent. Mr. Feller said he did not know how the rate of three percent had been determined. Mayor Broun inquired when other municipalities had increased their cable television franchise fees. Mr. Feller said the Town of Carrboro and Orange County had increased their fees in the last two or three years. Council Member Andresen inquired whether there was any reason that additional cable franchise revenues could not be earmarked for specific purposes. Mr. Horton said the funds could be earmarked as directed by the Council. Council Member Andresen said she had greater enthusiasm for earmarked forms of revenue. She suggested that a new form of revenue such as a restaurant tax, could be used for greenways programs. Council Member Herzenberg said this was a good idea.

Council Member Chilton inquired whether the proposed fee increase was related to the renewal of the Town's cable franchise agreement. Mr. Feller said the possible sale of Carolina Cable involved the transfer of an existing franchise. He stated that there was a very peripheral relationship between the fee increase and the Town's cable franchise agreement. Council Member Chilton inquired whether it was correct that the proposed fee increase would pose no legal problems. Mr. Horton said this was correct. Council Member Chilton said he thought the proposed fee increase was, in essence, a good idea. Council Member Andresen suggested that the Council had an obligation to cable television subscribers to hold a hearing on the proposed fee increase. Mr. Horton noted that there would be a hearing on the proposed budget. He added that a separate hearing on the proposed fee increase could be scheduled, if desired by the Council. Council Member Andresen said holding a hearing on the proposal was a good idea. She also suggested that the Cable Television Advisory Committee could possibly evaluate the proposed fee increase.

Council Member Capowski inquired about the number of cable subscribers at large facilities such as Granville Towers. Mr. Feller said cable service was available in common areas of Granville Towers. Council Member Andresen reiterated her support for review of the proposed fee increase by the Cable Television Advisory Committee. Council Member Chilton said such a review would be outside the realm of the committee's assignment. He noted that it would difficult for the committee to balance the proposed fee increase against benefits to the Town budget. Council Member Chilton said he did not believe a separate public hearing or referral to a committee was needed. Council Member Andresen said although one could never err in asking for input, she did not feel strongly about review by the Cable Television Advisory Committee. Council Member Capowski noted that the media would announce proposed fee increases. He added that the Cable Television Advisory Committee could respond to the proposal if it desired. Council Member Herzenberg said the Council had the option of requesting that the Manager advertise some proposed fee increases in bold print when advertising budget public hearings. He noted that this option did not preclude holding a separate hearing on the proposed cable television franchise fee increase. Council Member Brown inquired which items would appear in bold print in public hearing advertisements. Council Member Herzenberg said this could be determined by the Council.

Agenda Materials Fees

Town Clerk Peter Richardson presented an overview of possible fees for production of Council agenda materials. He noted that materials had traditionally been provided free of charge to interested persons. Mr. Richardson stated that the Town produced more agenda materials than most similar-sized communities around the State. He noted that most communities did not currently charge for agenda materials or packets.

Council Member Andresen inquired about the proposed cost for agenda packets picked up at the Town Hall. Mr. Richardson said a fee of $210 was proposed. Council Member Andresen inquired which persons and organizations were currently receiving agendas and agenda packets. Mr. Richardson provided a detailed listing of persons currently receiving agendas and agenda packets. He noted that most packets and agendas were provided to individuals. Council Member Andresen asked whether it was correct that anyone could currently receive agendas or agenda materials free of charge. Mr. Richardson said this was correct. He noted that a letter was forwarded to persons currently receiving agendas and agenda packets inquiring whether or not they wished to continue to receive the materials. Mr. Horton noted that without a fee, there was no practical limit to the number of agendas and agenda packets which would be requested and produced.

Council Member Andresen expressed concern about the amount of the proposed fee. She emphasized the importance of maintaining an open and accessible government. Council Member Andresen inquired whether staff was proposing fees for individual agenda items. Mr. Richardson said no. Council Member Andresen asked whether fees would be charged to persons requesting a single specific agenda packet. Mr. Horton said a subscription fee was proposed, with persons wishing to receive every packet paying an annual fee. Council Member Andresen said she might support instituting a lesser fee than proposed for agenda packets. Council Member Herzenberg said he agreed with Council Member Andresen with the need to reduce the proposed fee. He said it was a good idea to pursue a modified proposal. Council Member Herzenberg expressed concern that some persons receiving the agenda packet did not review its entire contents. He said that the Planning Board should receive items pertaining to planning items, rather than the entire agenda packet. Council Member Herzenberg said it appeared appropriate to charge the media for additional copies of the entire agenda packet.

Council Member Brown inquired about the size of individual agenda packets. Mr. Horton said there was a long tradition of the Council expecting thorough research by the staff, including public comment and documentation. Council Member Brown noted that she sometimes received multiple copies of the same document. She inquired whether there was any way to reduce these occurrences. Mr. Horton said staff was taking steps to assure that materials were not distributed to the Mayor and Council more than once. Council Member Andresen suggested that the staff come back to the Council with a middle-ground alternative proposal for agenda packet fees.

Mayor Broun said he agreed with Council Member Andresen's concerns about the proposed fee. He suggested that agendas could possibly be mailed out, with persons requesting agenda items on an as needed basis. Mayor Broun asked whether this would pose problems for the staff. Mr. Richardson said no, as long as adequate lead time was provided. Council Member Chilton said he did not favor charging a fee for agendas, but felt that charging a fee for mailed full agenda packets was appropriate. He suggested that persons be given the option of picking up individual agenda items or the entire packet at the Town Hall. Mr. Horton said the staff had discussed the possibility of charging interested parties the cost of postage, approximately $140 per year, for agenda packets. He stated that a lesser subscription fee, perhaps $50 per year, could be charged for persons picking up packets at the Town Hall. Council Member Andresen said she could support a proposal of this type.

Council Member Werner said people tended to sign up for things which were provided free of charge. He suggested that a fee be instituted that would discourage persons from having agenda packets mailed. Council Member Capowski said he agreed with Council Member Werner that there needed to be some type of fee or motivation for people to pick up agenda packets at the Town Hall, rather than having them mailed. Council Member Capowski said he did not see any difference between mailing and duplicating expenses for agenda packets. Council Member Capowski said he agreed that agendas should continue to be provided free of charge to those wishing to receive them. Council Member Herzenberg said he supported providing one free agenda packet each to the media and government jurisdiction which reciprocated with their own materials. Council Member Brown inquired whether it would be possible to write to individuals asking whether they wished to continue receiving full agenda packets. Mr. Richardson noted that previous inquiries of this type had found that there was a very high level of interest in Council matters among those currently receiving agenda packets. Mayor Broun said there appeared to a consensus of the Council wishing to provide agenda free of charge to all persons and to propose reduced fees for mailed agenda packets and packets picked up at the Town Hall. Mr. Horton said the staff would provide a follow-up proposal to the Council.

Inspection Fees

Inspections Director John Davis briefly reviewed a proposed twenty percent increase in inspection fees. He noted that the current fees recovered seventy-five percent of inspection costs. Council Member Andresen noted that the Town's inspection fees were higher than all local communities, excepting the City of Durham. Mr. Davis noted that communities tended to raise their inspection fees every three to five years. Council Member Chilton inquired whether fees charged reflected actual inspection costs. Mr. Davis said that fees pay for approximately seventy-five to eighty percent of actual inspection costs. He noted that it was difficult to pinpoint exact figures. Council Member Werner inquired why the Town was currently subsidizing inspection fees. Mr. Davis said this was dependent on the types of inspections involved. Council Member Werner said he was asking a philosophical question as to why the Town shouldn't charge the full amount for inspections. Mr. Davis noted that inspections maintained housing stock at a certain level. He noted the Town's desire to have housing built to code. Mr. Horton noted that a portion of the inspections' department duties had nothing to do with building inspections.

Mayor Broun said a practical answer might be up to increase fees to cover one hundred percent of costs. Council Member Chilton noted that inspection fees constituted a small portion of the cost of building a new house. Mr. Davis stated that approximately thirty-five percent of inspectors time was dedicated to enforcement of the zoning ordinance and minimum housing code standards. Council Member Capowski said he didn't see any reason for not charging full costs. Mr. Horton said he had no disagreement with the Council in raising the percentage of costs recovered.

Council Member Werner said he did not think that the Town ought to charge for other non-related functions of the department. Mayor Broun inquired whether the Town was currently recovering seventy-five percent of departmental expenses or expenses associated with inspection of houses. Mr. Davis said approximately seventy-five percent of costs associated with home inspections were being recovered. Council Member Capowski noted that it was common practice to charged building fees based on the builder's cost estimates. He inquired whether this was the Town's practice. Mr. Davis said yes. Council Member Chilton inquired who issued building permits. Mr. Davis said permits were issued by Town inspectors.

Council Member Capowski inquired why fees were not graduated based on the size of homes inspected. Mr. Davis said that costs were the same per square foot because it was not possible to inspect smaller homes any quicker than larger structures. Council Member Chilton inquired about the nature of reinspections. Mr. Davis said these were cases were initial inspection results had been negative and reinspections were needed. The consensus of the Council was to approve the proposed building inspection fee increases in principle.

Development Fees

Mr. Waldon said the Town had a policy of recovering a percentage of fees for development applications. He added that all out-of-pocket expenses such as advertising and staff time for review, were recovered through development fees. Mr. Waldon noted that the Council had adopted a fee schedule for development applications.

Council Member Werner inquired whether fees recovered eighty percent of the total Planning Department staff budget. Mr. Waldon said no, noting that the fees covered approximately eighty percent of staff review time. He also noted that staff was spending approximately twenty percent more time on development review compared to eighteen months ago. Mr. Waldon said a number of Town departments were involved in development review. He noted that the Town's development fees were at the top of the range of fees charged in local communities.

Council Member Werner inquired why one hundred percent of costs were not charged. Mr. Waldon said the entire community benefitted from careful review and participatory service. He added that applicants paid one hundred percent of applicable fees. Council Member Andresen inquired about the length of time spent reviewing development applications. Mr. Waldon said staff review time had increased by twenty percent over the past eighteen months. He added that the staff was being asked to do additional research by the Council and advisory boards and commissions. Mr. Waldon said the number of meetings with applicants had also increased dramatically.

Council Member Andresen inquired about the length of review time for an average subdivision. She also asked how the Town compared in terms of review time. Mr. Waldon said review times were roughly comparable for proposals requiring a full public hearing. Council Member Chilton inquired whether fees were ever waived. Mr. Waldon said all fees were waived when the proposed development was subsidized. Council Member Andresen inquired whether a standard base fee of $750 was charged for all subdivisions, regardless of size. Mr. Waldon said yes. Council Member Andresen suggested that a sliding scale for subdivision fees might be appropriate. Mayor Broun inquired whether any proposed fee adjustments would have a detrimental effect on development. Mr. Waldon said no, noting that most concerns about fees were not about subdivision and special use permit fees.

Council Member Capowski noted that an across-the-board increase in fees was proposed. He inquired whether some fees were currently too high and others too low. Mr. Waldon said an across-the-board increase was primarily being suggested because it was difficult to determine the amount of time it would take to process different types of applications. Council Member Capowski inquired about the estimated amount of additional fees. Mr. Horton said additional fee revenue of approximately $5,000 was anticipated.

Council Member Werner noted that tripling and quadrupling of existing fees would represent negligible costs compared to the cost of land in the Town. Council Member Andresen said the impact of fees depended on the financial circumstances of the individuals involved. Council Member Chilton noted that fees were waived for low-income housing and affordable housing developments. Council Member Andresen inquired whether Council Member Werner was advocating the recovery of one hundred percent of costs. Council Member Werner said yes, as determined by staff. Council Member Brown said she had no problem with this approach. Noting that Town development application fees were quite high compared to other communities, Council Member Andresen suggested that fees be increased twenty percent. Council Member Rimer said the staff was offering estimates in a narrow way since it was difficult to make more concrete estimates. Mr. Horton said he concurred with Council Member Rimer's observation. He added that there was no way to recover one hundred percent of costs. Council Member Chilton said on this basis he recommended that fees be increased by twenty percent, rather than attempting to one hundred percent of costs. Mayor Broun expressed his concurrence.

Fire Code Fees

Fire Chief Dan Jones briefly reviewed potential cost recovery items including charging permit fees for special hazard permits, life hazard violations and uncorrected Fire Code violations. Chief Jones said that twenty-five dollar reinspection fees were proposed since fifty-nine percent of current inspections required reinspections. Council Member Rimer inquired whether the proposed fees bore any relationship to cost. Mr. Horton said yes, noting that the fee was related to the cost of specific services. Fire Marshall Joe Robertson said a number of reinspections were made to entice people to make corrections.

Council Member Capowski asked whether special hazard permits were voluntary. Chief Jones said no. Council Member Capowski inquired what constituted special hazards. Chief Jones said the primary hazard was open burning. Council Member Capowski inquired how individuals learned of permit requirements. Chief Jones aid some individuals did not know about the requirements. He added that many entities such as building contracting firms were familiar with the requirements. Council Member Capowski said he did not want to see people discouraged from using Fire Department expertise because of fee considerations. Chief Jones said he did not believe that the proposed structure would drive people away.

Council Member Andresen inquired whether the Fire Department incurred additional expenses for hazardous materials handling training. Chief Jones said yes. Council Member Andresen inquired about the level of interaction between the Town and University in handling hazardous materials on the University campus. Chief Jones said the University generally did a good job of keeping the Town advised on the handling of hazardous materials. Fire Marshall Joe Robertson concurred, noting that the Town had the right to make on-site inspections in limited areas of the University campus. Council Member Andresen asked whether the Town provided free residential inspections. Fire Marshall Joe Robertson said approximately thirty-three hundred residences per year were contacted of which six to nine hundred requested inspections. Council Member Herzenberg inquired whether open burning posed problems in residential areas. Chief Jones said there were problems from time to time, depending on the season and the amount of clearing taking place. Council Member Brown said none of the proposed fees appeared to be excessive. She inquired whether most businesses were knowledgeable about the need for inspections. Chief Jones said most businesses expected to be inspected on a regular basis, depending on the degree of hazard. Council Member Brown inquired about permits for "indoor fireworks". Fire Marshall Joe Robertson indicated that this was for special events at the Smith Center.

Parks and Recreation User Fees

Mr. Horton said Parks and Recreation Director Michael Loveman would present an overview of what costs could be recovered if fees were increased to cover one hundred percent. Mr. Loveman noted that the Council approved a user fee policy for Parks and Recreation programs each year. He stated that program fees included ten percent administrative fees and twenty percent surcharge for out-of-county registrants. Mr. Loveman noted that the Parks and Recreation Commission was recommending increases in facility rental costs but not in program fees.

Council Member Werner said the Town's parks and recreation program fees were currently considerably higher than those in neighboring communities. He said no consideration should be given to raising fees. Council Member Werner said he concurred with the recommendation to raise facility rental fees. Council Member Capowski inquired how surcharges were applied for softball teams. Mr. Loveman said team rosters were surveyed to determine the residency of players. Council Member Capowski inquired what percentage of participants were Town residents. Mr. Loveman said approximately eighty percent of participants were Town residents, ten percent were Orange County residents and ten percent were out-of-county residents. Council Member Andresen requested additional information on the County's proposal to construct a swimming pool facility. Mr. Loveman said the County was exploring the possibility of entering into a contract with a private firm to construct a swimming pool in northern Orange County. Council Member Andresen encouraged the Council to think about the possibility of providing incentives for county-wide recreation programs.

Council Member Chilton asked whether the residency of participants differed by types of programs. Mr. Loveman said the percentages were fairly consistent across programs. Council Member Herzenberg said he concurred with Council Member Werner's observations concerning current and proposed fees.

Public Works Fees

Mr. Horton noted that the matter of landfill tipping fees was a major issue. Council Member Rimer asked Mr. Heflin to provide a brief report on landfill tipping fees. Mr. Heflin said proposed fees, including a reduction in coal ash fees from twenty dollars to thirteen dollars per ton were tentative. He noted that landfill fees were paid by the Town, Town of Carrboro and Orange County. Council Member Brown inquired about the extent of proposed landfill tipping fee increases in other counties. Mr. Heflin responded that other communities had not acted on increasing fees, although increases of ranging between $1 and $10 per ton were anticipated. Council Member Brown inquired about the origin of wastes dumped at the Orange County landfill. Mr. Heflin stated that the vast majority of landfill customers had credit accounts and a track record. He added that the staff suspected that some Orange County wastes were being dumped at sites other than the Orange County Regional Landfill.

Council Member Brown asked whether there was any way of determining whether people from other counties used dumpsters in Orange County. Mr. Heflin said there was no way to make this determination. Council Member Capowski inquired whether the Town had the last word in setting landfill fees. Mr. Heflin stated that landfill tipping fees were jointly established by the Town of Carrboro, Orange County and the Town. Council Member Capowski inquired whether the fee would possibly have to be negotiated. Mr. Heflin said yes. Council Member Capowski inquired what percentage of revenues were from the Town. Mr. Heflin said Town revenues constituted approximately twenty-five percent of fees and twenty percent of the landfill's budget.

Council Member Capowski inquired about the impact and advantages of raising the landfill tipping fee. Mr. Heflin stated that increased fees could be used to pay for higher program costs, such as those for increased recycling and the installation of a leachate recovery system at the next section of the landfill. Mr. Horton noted that there were also several incentives for keeping the landfill tipping fee low. Council Member Capowski inquired why Alamance County's tipping fees were higher than Orange County's. Council Member Rimer stated that Alamance County was attempting to site a new landfill. He noted that costs of monitoring the site would be quite high since the proposed sites were in groundwater sensitive areas.

Council Member Andresen inquired about the status of ash disposal by the University. Council Member Rimer noted that the would be making a report to the Council on this item on April 13th. Council Member Andresen asked whether filling holes with ash would decrease future land values. She also inquired about any negatives of accepting ash for disposal. Mr. Heflin noted that the land could possibly be used for recreational purposes in the future, so that relatively flat terrain would be advantageous. He added that ash in holes could have varying impacts in the future. Council Member Chilton said there appeared to be no particular advantage to raising fees at the landfill. He noted that the current system did not provide incentives for reducing waste volumes, and that it put the Council in a conflict of interest.

Council Member Brown asked whether Council Member Chilton was saying that instituting a unit-based price system would change how the Town looked at tipping fees. Council Member Chilton said this was correct. Mr. Horton said he agreed that this would provide a different perspective. Council Member Rimer noted that there were fixed and marginal costs associated with landfill operations. He noted that there was not currently accurate information to identify changes in marginal costs. Mr. Horton said the staff hoped to make progress in determining these costs in the near future. Council Member Brown noted that a fee-based system would provide customers with flexibility in determining fees paid for refuse disposal. Mayor Broun inquired whether changes were only being contemplated for ash disposal fees. Mr. Horton said this was correct. Mayor Broun said the Council could discuss the proposed fee change on April 13th.

Mr. Heflin noted that fees for street cuts had last been increased in 1989-1990. He said that fees were based on recovery of the cost of the service. Mr. Heflin stated that no change in the fee was proposed for the next fiscal year. Council Member Rimer said he favored a strong stance on the Town having control of all street cuts in the Town limits. He suggested that the Town institute a policy forbidding backfilling of street cuts. Council Member Rimer asked whether the State currently had such a prohibition against backfilling. Mr. Heflin said staff could further investigate street cut practices. Council Member Capowski inquired whether the Orange Water and Sewer Authority paid fees for street cuts. Mr. Heflin said yes, noting that total annual fees were approximately $27,000. Mayor Broun noted that no fee change was proposed for street cuts.

Mr. Heflin stated that staff was proposing that commercial waste collection fees for enhanced services be increased to cover the full cost of service. He noted that the Council had previously agreed to implement this practice over a two year period. Mr. Heflin said estimated current year revenues would total $105,000. Council Member Rimer noted that the Town was charging $1,500 for the same service that private contractors charged $3,000. Mr. Heflin said the private sector did not determine costs of service directly. He added that fees charged for residential four cubic yard dumpsters were nominal, intended to recoup some costs. Mr. Heflin said the number of requests for dumpsters had increased in recent years. Council Member Capowski said the service would be wonderful even at a greater cost.

Transportation Revenues and Fees

Transportation Director Bob Godding said the Town was fairly unique in its reliance on the sale of long-term passes for transit system revenues. He noted that sixty-five to seventy-five percent of transit system users utilized multi-ride passes. Mr. Godding said that long-term passes were heavily discounted based on standard adult fares. Council Member Chilton requested clarification concerning anticipated savings under scenarios one, two and three, as depicted in a chart distributed by Mr. Godding. Mr. Godding said the chart depicted net revenue to the transit system, rather than savings to the Town. Council Member Chilton inquired about the approximate percentage of anticipated extra revenues that would be assigned to each jurisdiction. Mr. Godding said he had not calculated specific figures. Council Member Chilton inquired about the impacts of a possible fifteen cent increase in bus fares. Mr. Godding said this might result in increased revenues of $100,000 to $200,000. Council Member Chilton inquired whether the Town had a goal for the percentage of revenue from bus passes and fares. Mr. Godding said although service standards had been discussed in the past, they had not been used in at least a decade.

Council Member Chilton expressed concern that fare increases appeared to occur at arbitrary intervals. Mr. Godding said a number of factors were used in determining the need for fare increases. He said the primary ratio used was passengers per service hour. Mr. Godding noted that the number of hours of service tended to be consistent across routes. He said that if individual routes were generating less than one-half of the system-wide average of all routes, changes might need to be made. Mr. Godding noted that the system-wide average was thirty-two to thirty-three passengers per vehicle hour. Council Member Chilton said he favored the institution of a policy concerning percentage of expenses recovered from the fare box. Mr. Godding said approximately one-third of expenses had typically been covered during the past ten years.

Council Member Andresen said she understood Council Member Chilton's desire for a consistent policy. She noted that the Town had made an initial investment in its transit system. Council Member Andresen stated that if a lesser percentage of expenses were recovered in the future, she was willing to go a long time before cancelling individual bus routes. Council Member Andresen said that a substantial investment had been made that she did not want to see lost. Council Member Andresen said she wanted to see further increases in bus ridership. Council Member Andresen also said she liked the idea of giving discounts to those buying long-term passes. She also expressed support for increasing the trolley fare to twenty-five cents.

Council Member Brown inquired about the impact of increased fares on bus ridership. Mr. Godding said that riders tended to be much more sensitive to changes in service, rather than changes in fares. Council Member Brown noted the important role of stable fares and fees in maintaining and increasing current ridership levels. She inquired about the impact of state and federal funding on the transit system. Mr. Godding said it was possible that funding levels would be considerably less next year. He stated that this situation would remain uncertain until appropriations were made at the federal level.

Council Member Werner suggested that programs continue to encourage more bus ridership. He inquired about operating costs of the trolley system and who paid for the system's operations. Mr. Godding said most costs for trolley service were salary and fringe benefits for individual drivers. He noted that trolleys were somewhat more fuel-efficient than buses, but were more expensive to maintain. Council Member Werner inquired how ridership and revenue for trolleys compared to buses. Mr. Godding said revenue generated for trolleys was very low compared to buses. He added that trolley ridership was also very low compared to bus routes. Council Member Werner suggested that the Council might wish to discuss trolley service in detail. Mayor Broun inquired whether trolley service was partially funded by the Downtown Commission. Mr. Godding said this was correct. Mayor Broun inquired which components were paid for by the Downtown Commission. Mr. Godding said he could provide follow-up information on this matter.

Council Member Chilton asked whether a portion of trolley funds were received from the Urban Mass Transportation Administration. Mr. Godding said this was correct. Council Member Rimer noted that the Richmond, Virginia Chamber of Commerce promoted the use of trolleys. He suggested that the Chapel Hill-Carrboro might undertake a similar approach. He suggested that incentives could be provided to increase bus ridership. Council Member Herzenberg said a major incentive to ride the bus would be to not permit building of parking decks for commuters near the center of the Town.

Mr. Godding noted that the Transportation Board would present a report on single-occupant vehicles in approximately two weeks. Council Member Capowski inquired about the estimated 1993 Transportation budget. Mr. Horton said the estimated budget was $4.459 million. He noted that no tax increase, fare increase or route eliminations were anticipated to fund proposed transit operations. Mr. Horton added that there were inefficient route segments that ought to be reconsidered from time to time. Council Member Capowski inquired about the feasibility of setting aside funds for contingencies. Mr. Horton said the feasibility of this approach depended upon how much was set aside and for what purpose. Mr. Horton suggested that the Council consult with the local legislative delegation on more permanent forms of transit funding, particularly for bus operations and park and ride lots. Noting public concern about empty buses, Council Member Brown inquired whether there had been any significant change in the types of smaller buses currently available. Mr. Godding said no.

Mr. Godding said a consultant had recommended a fifteen cent per half-hour increase in off-street parking rates. He also said leased parking rates could possibly be increased by five dollars per month. Mr. Godding added that on-street and off-street metered parking could be equalized by increasing the standard rate to one dollar per hour. He also noted that there was sufficiently strong demand for Sunday parking to merit staffing of parking lots and possibly charging fees, if the Council wished.

Council Member Andresen said she favored reductions in short-term parking costs. She stated that current short-term fees discouraged the use of downtown merchants. Council Member Andresen also noted that downtown merchants needed to take an active leadership role in developing solutions to parking problems. Council Member Werner said he did not favor a reduction in short-term parking fees. He inquired how parking funds were segregated from general funds. Mr. Baker said there were several parking-related funds due to debt service considerations. Council Member Werner asked whether it was correct that off-street parking funds had no impact on the General Fund. Mr. Baker said this was correct. Council Member Werner said he did not favor charging fees for parking downtown on Sundays. Mayor Broun said he agreed.

Council Member Chilton inquired about the extent of parking enterprise fund revenues. Mr. Horton said he was proposing a $20,000 transfer from the Parking Enterprise Fund to the Town's General Fund and $80,000 to the Transportation Fund. Council Member Chilton inquired whether parking lot attendants were among the Town's lowest-paid appearances. Mr. Horton said some information might be changing as a result of the Town's pay and classification study. Ms. Crotts noted that parking attendants were among the Town's lowest-paid positions. Council Member Chilton suggested that the Council consider whether it was appropriate to use funds toward increasing the pay of parking attendants. Mr. Horton noted that the Council would have an opportunity to examine the Town's proposed pay and classification plan. Mayor Broun noted that the Council appeared to have reached consensus on all items except charging for parking on Sundays, which was not supported.

Privilege License Tax Revenue

Mr. Baker stated that State law prohibited the taxation of certain types of businesses. He noted that the Town's privilege license tax rates changed as Schedule B rates were changed by the State. Council Member Brown inquired which type of small businesses were not covered. Mr. Baker said itinerant merchants and peddlers were exempt.

Library Revenues

Library Director Kathleen Thompson said Orange County revenues constituted about fifteen percent of the Town library's current operating budget. She added that about thirty-one percent of library patrons were non-Town residents. Ms. Thompson noted that Orange County had no legal obligation to provide fiscal support to the Town library. She said that if County funding were reduced, the County would be required to provide free library service to all County residents. Ms. Thompson noted that if County funding for the library were reduced or eliminated, the Town could lose up to $24,000 in State aid for each of a minimum of two years. She said that if all Orange County funding for the library were discontinued, the Town could possibly charge a fee to recoup these losses.

Council Member Herzenberg noted that the community had a basic commitment to fairness. He stated that there was a vast discrepancy between County funding and County use of the library facility. Council Member Herzenberg said it was not his intention to deny Orange County residents use of the Town's library, but rather to increase support received from Orange County Commissioners. He expressed hope that Council Members would talk to County Commissioners about appropriate funding for the library. Council Member Capowski inquired about County library services provided to Town residents. Ms. Thompson said that the County's bookmobile made stops in Chapel Hill. She also noted that the Orange County library in Hillsborough housed an excellent local history collection.

Council Member Rimer suggested that the Council defer its discussion concerning personnel items. Council Member Chilton concurred. Mayor Broun said the matters were very important ones which could be handled in the future. Mr. Horton suggested that the Council might want to discuss the matters at the beginning of its May 4th budget work session. He expressed thanks to the Council for their guidance this evening.

The session concluded at 10:42 p.m.