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

THE TOWN OF CHAPEL HILL, TUESDAY, APRIL 13, 1993 AT 5:45 P.M.

Mayor Broun called the work session to order at 5:47 p.m. Council Members in attendance were Julie Andresen (arrived at 6:07 p.m.), Joyce Brown, Joe Capowski, Mark Chilton, Joe Herzenberg, Barbara Powell, Alan Rimer (arrived at 6:35 p.m.) and Arthur Werner.

Also in attendance were Town Manager Cal Horton, Assistant Town Managers Sonna Loewenthal and Florentine Miller, Finance Director James Baker, Transportation Director Bob Godding, Public Works Director Bruce Heflin, Engineering Director George Small and Fire Chief Dan Jones.

Mayor Broun called upon Council Member Werner to provide an update on the activities of the Durham-Chapel Hill Work Group. Council Member Werner said a draft report of the U.S. 15-501 corridor study would be ready by the second week in June. He added that the Durham-Chapel Hill Work Group would meet on Wednesday, June 16th at the Durham County Offices to receive a report on the study. He also noted that the Durham Planning Commission was hearing three requests for rezoning applications this evening. Council Member Werner said the Commission had the options of approving, rejecting or recommending a ninety-day delay for the projects. He stated that if the Planning Commission were to recommend approval of the request, it would be considered by the Durham City Council on May 16th. Council Member Werner said he believed that the Planning Commission would recommend that the proposal be delayed for ninety days. Council Member Capowski noted that the City of Durham staff recommended denial of all three applications.

Transportation Matters

Transportation Director Bob Godding presented an overview of major operational issues. Council Member Herzenberg inquired which neighborhoods were served by the "A" bus route. Mr. Godding said the areas served included Piney Mountain Road, the North Forest Hills, Northside and Colonial Heights neighborhoods, NC 86 and the University of North Carolina. He noted that the provision of bus service had been a major issue when the Town annexed the North Forest Hills neighborhood. Council Member Capowski requested an explanation of the Town's contracts with the Town of Carrboro and the University of North Carolina relative to the provision of bus service. He also inquired about the extent of fare increases needed to avoid an increase in the property tax rate. Mr. Godding briefly reviewed the Town's bus service contracts with the Town of Carrboro and the University of North Carolina. He also noted that fare increases could have the effect of reducing bus ridership. Mr. Godding said a fifteen cent fare increase could yield an additional estimated $215,000, of which about $11,000 would accrue to the Town.

Council Member Brown requested an overview of ridership surveys. She also inquired how often the allocation formula with the University and Town of Carrboro was evaluated. Mr. Godding reviewed the methodology for ridership surveys. He also noted that there had been no changes in the allocation formula since it was adopted in 1981 or 1982. Council Member Brown inquired about the possibility of additional State funding for transit services. Council Member Chilton inquired about the cost of bus passes. Mr. Godding said an unlimited annual pass cost $163.00. Council Member Werner inquired whether the Town was in a relatively unique position of being a small system in the Federal large-city funding category. Mr. Horton said it was possible that the Town could explore options in this matter with U.S. Representative David Price. Mayor Broun expressed his concurrence that the Town should reinstitute discussions on transportation issues with Representative Price. Council Member Herzenberg suggested that Representative Valentine be included in any such discussions.

Council Member Werner inquired about the amount of revenues derived from special events. Mr. Godding said these totalled approximately $100,000 annually. Council Member Werner said it appeared that ridership had levelled off, overall transportation-related costs had grown by about five percent annually and local costs had increased even faster. He also noted that it was possible that the Town would be unable to purchase twenty-eight new buses because of possible inability to pay the ten percent local matching cost. Mr. Horton said one option was for the Town to sell its buses and discontinue operating a transit system. He suggested that a general review of the transit system be initiated during the next six to nine months. Council Member Werner noted that Town involvement in regional transit would necessitate earmarking of local funds. He inquired whether operation of one regional system would make sense. Council Member Brown inquired about the estimated cost of federal mandates relative to transit system operations. Mr. Godding said although the mandates did not have much operational impact, they did have significant impacts on funding for bus equipment due to the Clean Air Act, Americans with Disabilities Act and complementary paratransit service.

Council Member Andresen said Council Member Werner's points concerning growth in system ridership and operating costs were well-taken. She noted that if routes were reduced, the net effect would be that the system would only serve the University area. Mr. Godding noted that approximately seventy percent of current ridership was related to the University. Council Member Andresen suggested that the Town talk to the Downtown Commission about the operation of trolley service. Mr. Horton noted that although there had been mixed reaction to the continuation of trolley service at this year's Downtown Service District administrative hearing, it was decided to continue service for one more year to evaluate the effect of the new parking deck. Council Member Capowski inquired whether the Town was receiving maximum return from its investment in the trolleys. Council Member Powell inquired about allocation of costs relative to the Blue and Green lines. Mr. Horton said additional information on allocation formulas could be provided to the Council.

Council Member Werner inquired about the viability of selling the transit system to the University of North Carolina. Mr. Horton said this was a possibility if the University was a willing buyer. Council Member Capowski noted that forty percent of University employees were Town taxpayers. Mayor Broun said he saw nothing wrong with exploring the possibility of selling the bus system to the University. Mr. Horton said Mr. Godding believed that it would be difficult for the University to qualify for federal operating subsidies. Council Member Andresen inquired about the estimated reduction in the number of automobiles per day attributable to the transit system. Mr. Godding said 4,000 to 5,000 cars, all of which would need to be parked somewhere on a daily basis. Council Member Rimer suggested that the University should pay more for the bus system so it would not need to build additional parking.

Mayor Broun said although the Town should discuss trolley operations with the Downtown Commission, it was important that a complete transit system analysis be completed by the staff. He also stated that fare increases did not make sense at this time. Council Member Herzenberg said it was important to elicit opinions from other persons interested in the downtown area who had not attended the public hearing. Council Member Brown suggested that staff open discussions with the University relative to transit operations. Council Member Capowski inquired about the tax rate impact of issuing bonds for capital match purposes. Mr. Horton said this was simply a value judgement. Council Member Werner emphasized the importance of continuing discussions with the Triangle Transit Authority relative to future regional operations. Council Member Andresen said she believed that using bonds for bus acquisition was not a bad idea. Council Member Werner said he was not convinced that a bond issue for this purpose would be passed by voters. Council Member Capowski said he believed that bus system ridership would increase during the next fiscal year due to the expansion at the University's medical complex.

Proposed Capital Improvements Program

Mr. Horton reviewed proposed capital programs. Council Member Werner inquired whether some of the $52,000 allocated for sidewalk improvements could be used for sidewalks in the North Columbia Street and Merritt Mill Road area. Mr. Horton said that standards could be amended for sidewalk improvements in the North Columbia Street area and Community Development Block Grant funds could possibly be used for sidewalk improvements on Merritt Mill Road. He added that due to funding constraints, Community Development Block Grant funds would need to be expended as soon as possible. Council Member Brown inquired about the possibility of Chapel Hill gravel sidewalks. Public Works Director Bruce Heflin indicated that there had been on-going maintenance problems with gravel sidewalks. Council Member Rimer inquired whether the staff had a more extensive listing of possible sidewalk projects. Mr. Horton said a report on the Town's proposed pedestrian plan would be made to the Council prior to the summer break. Council Member Brown asked whether the report would take traffic-calming factors into account. Council Member Capowski inquired about estimated costs for the maintenance and repair of downtown sidewalks. Mr. Horton said this would vary based on the approach taken.

Council Member Werner inquired whether staff was recommending that small park improvements and maintenance be made using bond funds. Mr. Horton said use of bond funds was recommended for improvements while small repairs could be made using funding for extraordinary maintenance out of the General Fund. Mayor Broun inquired about funding sources for window replacements at Hargraves Center. Mr. Horton said $7,000 in extraordinary maintenance funds could be used for this purpose. Council Member Andresen inquired about possible funding for ventilating the kiln room at the Lincoln Center. Council Member Brown inquired about the acreage and depth of the current landfill site compared to the contiguous site across Eubanks Road. Mr. Heflin said the current fill area was thirty-five acres with a maximum depth of fifty feet, compared to a twenty-eight acre fill area with a maximum depth of fifteen feet on the south side of Eubanks Road.

Mr. Horton indicated that staff could prepare cost estimates of varying sizes for the use of parks and recreation bonds. He added that a line item could also be added in capital reserve for small park improvement projects. Mayor Broun requested that staff provide a menu of streetscape options. Council Member Rimer suggested that bonds or certificates of participation could be used for streetscape projects. Council Member Werner suggested that this matter be examined once the status of the prepared meals tax had been determined. Noting the importance of making improvements to the downtown area, Council Member Capowski said he feared that additional delays in the streetscape plan process could be extensive. Mr. Horton stated that there were no plans for downtown improvements other than $19,210 suggested in the preliminary Capital Improvements Program. Mayor Broun noted that there seemed to be some interest in funding improvements in the downtown area. Mr. Horton said staff would develop proposed plans for $50,000 in small park improvements and options to fund streetscape projects.

Public Works--Curbside Refuse Collection

Public Works Director Bruce Heflin provided an overview of curbside collection options. Council Member Andresen noted that some people feared that rear-yard refuse collection at some homes would advertise disabilities to persons with harmful intent. She also noted that the Council had previously decided to delay action on possibly changing refuse collection methods until Orange County had decided on its plan of action. Council Member Andresen expressed concern that many people did not know that the Council was considering a change in refuse collection policy. Noting that she did not question the fact that a majority of persons in the pilot study area favored curbside collection, Council Member Andresen emphasized the need for a public hearing on refuse collection options.

Council Member Brown said the pilot program had the net result of indicating that changes in service delivery could be accepted. She suggested that the Town consider the possibility of a unit-based pricing system for refuse collection. Council Member Werner said it was not practically possible to change to unit-based pricing for the next fiscal year. He added that possible changes to refuse collection methods could be discussed as a part of the budget development process. Mayor Broun noted that the central question was whether citizens wanted to pay extra for backyard refuse collection service. Mayor Broun added that he had received a considerable amount of correspondence concerning refuse collection methods about evenly divided. Council Member Andresen said she was surprised that the Council was considering the possibility of roll-out refuse collection. Council Member Capowski said that refuse collection had been a subject of considerable discussion and publicity recently. Noting the topography of some parts of the Town and the estimated collection cost of $36 per household, Council Member Capowski said he favored maintaining current refuse collection service options. Council Member Brown said she concurred that unit-based pricing was a budget issue. Council Member Werner said it was too late to consider changing the method during the current budget year. Mayor Broun said the Council needed to keep unit-based pricing as an option. He also noted the need for greater public input and exploring the possibility of lease-purchase of refuse containers.

Engineering Matters

Engineering Director George Small presented an overview of engineering matters. Council Member Andresen inquired about the Town's priorities for Geographic Information System information. Mr. Small said the top priorities were deriving information for planning applications and development analysis and selling some GIS information to private individuals in the event that the proposed public records law did not receive approval by the General Assembly. Council Member Rimer said a Geographic Information System offered the advantages of producing high-quality detailed maps and offering information which could provide answers to many questions. Noting that the Town was lagging behind most other governments on the GIS information curve, Council Member Rimer said the Town could ultimately save money with the Geographic Information System. He noted that Mr. Small was requesting a small amount of money for GIS programs.

Mayor Broun said the Council needed to consider options for staffing of the Town's GIS program. Council Member Rimer said staff people in the Public Works and Planning departments could work on GIS, supplemented by some consultant time. Council Member Rimer said GIS products could be presented to the Council during the next fiscal year. Council Member Capowski said although he doubted that the Town would ever realize savings from GIS, he also realized that advantages of the system would be tremendous.

Noting that he had helped to set up a Geographic Information System several years ago, Council Member Werner said it was possible that the Town might get some usable maps from its efforts. He stated that hiring a permanent person for GIS programs was preferable to having a temporary or consultant staffing situation. Council Member Rimer expressed his concurrence, adding that a consultant should only be used for training purposes. He added that future GIS costs might be deferred through better decisions and fewer mistakes. Council Member Andresen said she feared that GIS was an expensive tool which might not be that useful to the Town. Council Member Brown stated that if system saved staff time, it could produce savings. She inquired whether GIS could be beneficial in lowering housing costs. Mr. Horton said yes. He added that options for implementing the system were hiring a trainer for present staff and other changing priorities, hiring a staff person for dedicated GIS work. Mr. Horton said he was inclined to hire a trainer for Engineering, Planning and Public Works staff. Council Member Capowski requested a cost comparison for a consultant versus a full-time staff person. Mr. Horton said the estimated cost of a consultant would be $20,000 compared to $28,000 to $30,000 per year for a full-time staff person.

The meeting adjourned at 8:43 p.m.