MINUTES OF A JOINT SESSION WITH THE LOCAL LEGISLATIVE DELEGATION,

MONDAY, FEBRUARY 22, 1993 AT 7:30 A.M., CAROLINA INN BALLROOM

Mayor Broun called the meeting to order. Council Members in attendance were Julie Andresen, Joyce Brown, Joe Capowski, Mark Chilton, Joe Herzenberg, Barbara Powell, Alan Rimer and Arthur Werner. Also in attendance were Senators Howard Lee and Russell Walker, Representatives Anne Barnes and Joe Hackney, Assistant to the Mayor Lisa Price, Town Manager Cal Horton, Assistant Town Managers Sonna Loewenthal and Florentine Miller, Finance Director James Baker, Assistant to the Manager Greg Feller, Town Clerk Peter Richardson and Town Attorney Ralph Karpinos.

Mayor Broun called upon members of the legislative delegation for opening remarks. Representative Barnes noted that efforts were continuing to restore local funding to former levels with future growth. She expressed hope that the legislation would pass as drafted. Representative Hackney said he looked forward to working cooperatively with the Council and the local legislative delegation. Senator Lee said that Representative Barnes deserved a great deal of credit for efforts to restore local funding from the State to its former levels. Senator Lee said he shared Representative Barnes' optimism about restoration of local revenue restoration, although it might be somewhat more difficult to pass the bill in the Senate. Senator Lee also said he was looking forward to work on areas of mutual concern with the Council.

Mayor Broun inquired about the status of supplemental State assistance for public transportation. Senator Lee, Chair of the Senate subcommittee on transportation appropriations, said he had met with the State Transportation secretary last week. Senator Lee said the department's top current priorities were establishment of a Deputy Secretary position for railroads and public transit and finding funds for road maintenance. He stated that it was difficult to judge the status of supplemental State public transportation assistance.

Mayor Broun inquired about the chances for local legislation concerning real estate transfer, admissions and prepared meals taxes. Representative Hackney said it was difficult to gauge voting patterns on these proposals. He emphasized the importance of combined local support for the meals and real estate transfer taxes. Noting that the problems and benefits of the entertainment tax remained the same as in the past, Representative Hackney emphasized the importance of identifying where the funds would be expended.

Representative Barnes noted the importance of the prepared meals tax bearing some relationship to the people served, including tourists. Council Member Andresen said she agreed, adding that she had proposed that the proceeds from the prepared meals tax be used to make physical infrastructure improvements in the downtown area. She stated that it would be less difficult to pass the proposal if it were tied to a specific purpose. Representative Barnes said she agreed that there would be a little more positive reaction if people knew what the proposed funding purpose. Representative Hackney said it would be virtually impossible to receive legislative approval for the proposed tax if it were not tied to a specific program. He added that the restaurant association was firmly committed to opposing all meals tax proposals which were not directly tied to increasing restaurant patronage. Noting that there were a number of structural eyesores in the downtown area, Council Member Capowski inquired whether the prepared meals tax could be tied to addressing this situation. Representative Barnes said the Council should focus on legitimate Town needs rather than on how the legislature would react.

Council Member Andresen said she believed that the University appeared to be somewhat less opposed to the concept of a Statewide proposal for an entertainment tax. Representative Barnes stated that larger cities might not want to make the entertainment tax option available to other cities. She noted that no entertainment tax bills had been received from the City of Charlotte or Winston-Salem. Representative Barnes added that the Town might wish to undertake Statewide networking for an entertainment tax. Council Member Brown inquired about the likelihood of passage of a local entertainment tax. Representative Barnes said chances for passage would be stronger if other cities and legislators also supported proposed statewide legislation.

Council Member Andresen inquired whether the legislative delegation would back up the Town in the event that statewide support were received and the University opposed the proposal. Representative Barnes noted that she had not read Vice Chancellor Jones letter concerning the University's position on the entertainment tax proposal. Mayor Broun inquired whether there was any problem with proposing a local option and statewide legislation. Representative Hackney said he would not discourage the Town from taking this approach. Council Member Andresen inquired whether tying the proposal to its possible benefits was the most important element. Representative Hackney said it was important to keep reciprocity with other communities around the state in mind.

Mayor Broun inquired about the likelihood of passage of a real estate transfer tax. Senator Lee noted that Representative Hackney served as Chair of the House Finance Committee. Representative Hackney noted that a number of statewide efforts were underway, with parkland acquisition programs being the main focus. Senator Lee said the chance of passage of new taxes in the Senate during the current session did not appear to be very positive.

Council Member Werner inquired about the status of extending greater enabling authority to local governments. Senator Lee noted that a number of efforts had been taken in this regard. He noted that steps had been taken in some areas, including the use of property taxes for transit services. Representative Barnes noted that a bill of fiscal options for local governments had not received much support in the General Assembly. Representative Barnes noted that Home Rule communities gave up State fiscal support. Council Member Werner said there should be some type of middle ground in matters of this type. Council Member Capowski inquired why the General Assembly wanted to be involved in matters such as whether local governments could use the "Denver boot" for parking enforcement. Representative Hackney noted that North Carolina had a well-balanced tax system, with lower property taxes than most other states.

Mayor Broun inquired whether there were any legislative pitfalls concerning citizen-initiated recall of elected officials. Representative Barnes and Hackney and Senator Lee said they did not foresee any problems. Mayor Broun inquired when the recall proposal might be considered by the General Assembly. Representative Barnes advised that it would be advisable to submit the proposal as soon as possible for expedient consideration. Senator Lee expressed his concurrence. Mayor Broun said the Council anticipated moving forward with the proposal in early March. Representative Barnes inquired whether public hearings had been held on the proposal. Mr. Horton said there had been opportunities for public comment. He added that minutes of the hearings could be provided to the legislative delegation.

Mayor Broun inquired about the likelihood of passage of legislation concerning inclusionary zoning and density bonuses. Representative Hackney inquired whether the proposal was a first of its kind. Mayor Broun said he thought this was the case. Representative Hackney said the homebuilders' association would carefully scrutinize the proposal. Mayor Broun also noted that legislation was being requested for fire sprinkler requirements for commercial buildings. Representative Barnes inquired whether the proposal was for non-residential structures. Mr. Horton said the proposal was recommended for multi-family but not single-family residences. He added that sprinkler systems would cut down on loss of life. Representative Barnes inquired about the estimated cost of sprinkler systems. Mr. Horton said the estimated cost was one dollar per square foot. Council Member Andresen noted that the Orange Water and Sewer Authority was examining the possibility of subsidizing some these costs. Representative Hackney inquired about the possibility of insurance savings as a result of installing sprinkler systems. Council Member Werner said he believed that insurance companies would support the proposal.

Mayor Broun requested that the Attorney provide information concerning the proposal for payments in lieu for recreation areas. Mr. Karpinos noted that the Town of Garner had received authorizing legislation for recreation payments in lieu in 1985. Representative Barnes noted that Orange County had similar authorization. Mr. Karpinos said the impact tax for recreation applied within the Town's extraterritorial jurisdiction. Representative Barnes noted that some County residents disliked the existing recreation payment-in-lieu provisions. Council Member Rimer inquired about the nature of their concerns. Representative Barnes said many residents did not like most property development regulations, including payments for recreational facilities.

Mayor Broun inquired about the likelihood of opposition to a proposed change in the Town Charter concerning non-discrimination relative to sexual orientation. Representative Barnes inquired whether there was any Council opposition to the proposal. Mayor Broun said this was difficult to judge. Senator Walker said local governments could make Charter changes without legislative approval. Mr. Karpinos said he did not think that the Town could unilaterally change the Charter in this respect. Council Member Brown said she was supportive of the proposal. Senator Lee inquired about the difference between the Town's policy and Charter on non-discrimination matters. Mr. Horton said Town policy reflected the best judgement of a group of elected officials at a given time. He added that a change in the Town Charter would lend stronger weight. Noting that Charter changes needed to be taken very seriously, Senator Lee said he did not feel strongly one way or the other about the proposal.

Mayor Broun requested a review of the proposed "Denver boot" legislative authorization. Mr. Horton said the Town's intention was to use a device to discourage repeat parking violations. Representative Barnes inquired whether the "Denver boot" would be used on private property. Mr. Horton said it would not be used on private property. Representative Barnes inquired why the request was being brought to the General Assembly. Mr. Karpinos noted that also there was language in the General Statutes pertaining to university usage of devices similar to the "Denver boot", there was no parallel language pertaining to local governments. Representative Barnes said she believed that Towns had general authority to enforce parking regulations. Mr. Horton noted that the City of Winston-Salem was requesting wheel block legislation for repeat parking violators. Senator Lee said although he had no problem with the request, he would check to see whether the Town had the authority to proceed without legislative action.

Mayor Broun noted that some local citizens had requested State funds to assist in restoring the Chapel Hill Cemetery. Representative Barnes noted that funding for these types had been more readily available in the past.

Mayor Broun stated that the only other specific matter on the agenda was proposed legislation concerning open meetings and public records. Representative Barnes said she had not had the opportunity to read the proposed legislation. Council Member Andresen said the North Carolina League of Municipalities felt that the proposed legislation would make it more difficult for local governments to hold Executive Sessions on property acquisition matters. Mayor Broun said the proposed legislation would also impact attorney/client privileges in litigation since it would be difficult for clients to consult with attorneys on litigation matters. Representative Hackney said the House Judiciary Committee was considering some very significant changes including doing away with the threatened litigation exemption. He stated that it would be very useful to receive Council feedback on the proposed legislation. Representative Hackney noted that he was requesting similar responses from members of the North Carolina Press Association. Senator Walker noted that the State General Assembly held Executive Sessions on property matters.

Council Member Powell inquired when the General Assembly would likely vote on the proposed open meetings/public records legislation. Representative Hackney said he believed the committee would vote in four to six weeks. He added that the primary issue concerning public records was determining reasonable costs to provide computer-generated information such as Geographic Information System data. Representative Barnes inquired about the extent of possible impacts on the Town. Mr. Horton said it might cost more to provide some information in different forms. Representative Hackney noted the possible need to establish new guidelines for public information requests. Council Member Rimer expressed concern that Geographic Information System information could be slightly modified and resold by individuals. Representative Hackney said the Press Association was not seeking to protect resellers of information.

Mayor Broun inquired whether there was anything that the Council could do to assist the local legislative delegation. Representative Hackney said documentation of costs for University fire protection would be helpful. Noting that it cost far more to provide this service than the amount recovered, Mr. Horton said staff could provide this information. Mr. Horton added that the Town welcomed the opportunity for possible increased fire protection funding. Council Member Capowski noted that there had been significant growth in the hospital complex in the last few years.

Noting that there were numerous organizational sales tax exemptions, Representative Hackney said he hoped the General Assembly could review this situation during the current session. Mr. Horton said staff would attempt to provide information on the impact of sales tax exemptions on the Town. Representative Barnes noted that every hospital in the State with the exception of UNC Hospitals was exempt from State taxes.

Council Member Andresen thanked the local legislative delegation for its efforts to restore growth in local revenues. She noted that Orange County was rapidly urbanizing, resulting in the Town providing greater subsidization of urban services. Mayor Broun thanked the legislative delegation for their efforts.

Representative Hackney urged the Mayor and Council to visit the General Assembly. Mayor Broun said they would gladly accept this invitation.

The session concluded at 8:48 a.m.