SUMMARY OF A WORK SESSION HELD BY THE MAYOR AND COUNCIL OF THE TOWN OF CHAPEL HILL, NORTH CAROLINA, WEDNESDAY, MAY 24, 1995 AT 5:30 PM

Mayor Broun called the work session to order. Council Members in attendance were Joyce Brown, Joe Capowski, Mark Chilton, Pat Evans, Lee Pavao, Barbara Powell, Jim Protzman and Rosemary Waldorf. Also in attendance were LOG Member & Carrboro Alderman Mike Nelson, LOG Chair & Orange County Commissioner Don Willhoit, Town Manager Cal Horton, Assistant Town Managers Sonna Loewenthal and Florentine Miller, Public Works Director Bruce Heflin, Solid Waste Administrator Gayle Wilson and Finance Director James Baker.

Landfill Owners Group

Council Member & LOG Member Chilton presented an overview of the Landfill Owners Group's recommendations, including the possible banning of corrugated cardboard from the landfill. He said that no major service changes were being contemplated. Council Member Chilton said recommended cost increases were not as large as originally anticipated.

Council Member Capowski inquired about the recycling market price of corrugated cardboard. Mr. Heflin said it was currently about $120 per ton. Council Member Capowski asked why there should be additional costs if the material were so valuable. Mr. Heflin stated that current cardboard-related revenues were from commercial programs and related materials burying fees. He added that the hauling contractor kept revenues for collection costs. Mr. Willhoit said the picture could be better if the current market prices held. Council Member Capowski inquired what UNC Hospitals did with its waste cardboard. Mr. Heflin said he believed UNC Hospitals had its own recycling program in place as did the entire UNC campus.

Noting that projections were for 2,608 tons of cardboard to be diverted from the waste stream, Council Member Brown requested additional details on this element. Council Member Chilton stated that mid-year implementation of the program was proposed, with the program being phased in incrementally. Mr. Heflin stated that a recent waste stream study had found that the amount of cardboard was somewhat less than anticipated. He said a portion of this was attributable to good practices.

Council Member Brown inquired about Carrboro's and Orange County's discussions about the Landfill Owners Group recommendations. Mr. Willhoit said the Orange County Commissioners would discuss the recommendations at its first meeting in June. Mr. Nelson stated that the Town of Carrboro had discussed the recommendations at its most recent meeting and discussions would continue at the next meeting.

Council Member Protzman said the general question was whether or not the Council was prepared to move ahead with the proposed program. Council Member Protzman also said he was concerned about the anticipated cost per household for the corrugated cardboard recycling program. He stated that while there would be a fairly substantial impact on commercial collections, it appeared there would be a substantially lower impact for residential routes. Council Member Chilton stated that residential sector service was generally the highest level of service provided. He added that the projected residential program cost did not appear to be out of line with other programs. Council Member Protzman said the cost per impact analysis left him wondering whether it might be wiser to spend a lesser amount on education, for example, if more opportunities for residential cardboard recycling were created. Council Member Chilton stated that if a cardboard plan were initiated, it ought to be across all three sectors.

Council Member Brown inquired how well the corrugated cardboard ban was working in nearby jurisdictions. Carrboro Alderman Nelson stated that Carrboro Public Works Director Chris Peterson had indicated that City of Burlington and Alamance County officials that no significant problems had been encountered to date. Mayor Broun asked whether other local communities had discontinued pick-up of corrugated cardboard. Council Member Chilton stated that Alamance County and the City of Burlington no longer collected corrugated cardboard. Mayor Broun inquired whether it was correct that staff recommended a cardboard ban for commercial businesses, but not residences. Mr. Horton said this was correct. Alderman Nelson stated that a number of commercial customers felt they would be targeted if there were a corrugated cardboard ban only for commercial enterprises. He stated that by completely banning corrugated cardboard, the life of the existing landfill could be extended by eight months.

Stating that about 1/500th of the waste stream was involved, Council Member Capowski inquired whether it was worthwhile to have a separate residential program for picking up corrugated cardboard.

Commissioner Willhoit said it would be somewhat hypocritical for local governments to make sector exemptions for items such as corrugated cardboard. He added that cardboard had good market value for recycling purposes. Mayor Broun inquired about additional expenses that commercial businesses would encounter in order to recycle cardboard. Council Member Chilton stated that the major additional expense would be an area for cardboard storage.

Commissioner Willhoit said one local business person had suggested that businesses work together to successfully implement the program. Council Member Brown inquired whether staff had conducted a comparative cost analysis of an in-house program versus a private contract. Mr. Heflin said the Town currently had multi-year contracts with BFI and Sunshares, the overall costs of which did not appear to be unreasonable. He added that there was currently a good commercial market for corrugated cardboard. Alderman Nelson said banning cardboard at the landfill would result in projected short-term savings of $152,000 and extend the life of the current landfill.

Council Member Evans suggested the possibility of having twice per month, rather than weekly, curbside recycling service. She also suggested the possibility of having a commercial cardboard ban supplemented by a good education program for citizens. Stating that a new landfill would be terribly expensive in the long-term, Council Member Brown said it was helpful to reduce costs wherever possible.

Mr. Horton stated that staff recommended limiting the cardboard program to the commercial sector only in its first year. He added that if the Council wished for all three elements of the program to take place in the same year, this could be arranged.

Council Member Protzman inquired about the responsibilities of a proposed new recycling specialist position. Solid Waste Administrator Gayle Wilson said this individual would be responsible for making the program work, so the Town would not be fined for violating existing landfill regulations. He also said this position would be responsible for a large amount of outreach to commercial businesses, private haulers, and residential and multifamily customers.

Mayor Broun asked whether the specialist position would still be needed if only the commercial cardboard were enacted. Mr. Horton

said yes. Council Member Protzman said the multifamily program appeared to be quite efficient. Stating that about 1% of corrugated cardboard was collected from private residences, Council Member Capowski inquired why the Landfill Owners Group recommended such a program. Council Member Chilton said this was a policy matter offered for the Council's consideration. He added that the Landfill Owners Group felt that all sectors should be treated as equally as possible. Council Member Chilton also said it was more expensive to collect curbside than at another type of facility.

Commissioner Willhoit said the LOG felt it was important to move ahead with the proposed recycling program as soon as possible. Mayor Broun asked whether the LOG felt it was important for the Council to have some role in establishing tipping fees. Commissioner Willhoit said it was also important for Orange County and the Town of Carrboro to have an opportunity for line item vetoes. Council Member Chilton noted that the Town had fiduciary responsibility for the landfill's budget. Citing a possible hypothetical circumstance, Mayor Broun inquired whether the Carrboro Board of Aldermen could recommend a $29.00 tipping fee if they did not favor going ahead with a cardboard ban. Council Member Chilton said since the Town of Carrboro did not have line item veto power for LOG matters, it had an all or nothing situation concerning program recommendations. Mr. Horton noted that the Landfill Owners Group served in a purely advisory capacity to the three local government bodies. He added that most issues were addressed on a consensus basis, with difficult issues being set aside for consensus building to take place. Mayor Broun suggested the possibility that the Council take the possibility of a corrugated cardboard ban under advisement. Council Member Chilton said the Council's recommendations could be referred back to the Landfill Owners Group.

Council Member Powell inquired whether all the local government bodies had an option to initiate a residential ban on cardboard.

Mayor Broun said it was necessary for the three LOG partners to reach agreement on this matter. Mr. Horton noted that the LOG was recommending a maximum tipping fee of $31 per ton.

Council Member Protzman said although he favored a cardboard ban, he did not favor having a weekly curbside residential program for cardboard pick-up. He suggested that a less frequent pick-up program might be a reasonable compromise.

Council Member Brown said it was very important for all three LOG partners to work together to develop a consensus program.

Council Member Capowski inquired about the possibility of the value of cardboard going up so much that BFI or a private hauler would collect from residences at no charge. Mr. Heflin said this was very unlikely because cardboard was such a bulky material. He added that the Town's cardboard diversion rate of 35% was quite good, principally due to the accessibility of cardboard recycling programs.

Council Member Waldorf inquired about the possibility of monthly or twice monthly residential cardboard collection. Mr. Horton noted that many people did not have adequate facilities to store cardboard.

Mayor Broun said there appeared to be Council support for a commercial corrugated cardboard ban. He inquired whether there was Council consensus for a $31 per ton tipping fee, in concert with submittal of Council comments to the LOG. Council Member Evans suggested the possibility of a $28.50 per ton fee, subject to a recommendation from the LOG concerning a cardboard ban. She inquired whether any money would be made from such a ban. Council Member Chilton said no. Mr. Horton said staff would plan on an immediate tipping fee of $28.50 per ton, with money being reserved for a fee of up to $31 per ton.

Council Member Pavão asked whether a $31 per ton fee would include hiring a recycling specialist. Council Member Chilton said this was correct. Commissioner Willhoit said it was very important to move ahead with a waste prevention program as soon as possible.

Council Member Brown said it would be her preference for the LOG to take comments from all three bodies and come back with a final recommendation.

Council Member Protzman said he preferred to start with a $31 tipping fee as a negotiating point. Mayor Broun said he would be most comfortable with a tipping fee of somewhat less than $31 per ton.

Council Member Capowski said he hoped for a strong reply about his question concerning residential cardboard recycling. Council Member Pavao said he thought it was early enough in the process to work things out to the satisfaction of all three parties.

Council Member Brown said it might be useful to have an evaluation of the overall cardboard recycling program.

Mayor Broun said he hoped it would be possible for the proposed tip fee to be reduced from $31 per ton. He noted that the LOG was to take comments from the three boards and bring recommendations back to individual boards for further discussion. Mr. Horton said it was necessary to establish a tipping fee by July 1st. Council Member Chilton said he thought this would be possible. Council Member Powell said the waste prevention and education programs were both very important.

Budget Overview

Mr. Horton presented the staff's revised estimates for larger than anticipated 1995-96 revenues and possible cost adjustments in the General Fund. He stated that if the Council wished, it would be possible to reduce the Transportation Fund tax rate by 0.1 cents and the General Fund by 0.4 cents. Mayor Broun inquired about the status of the bookmobile. Mr. Horton said the bookmobile was funded in the proposed budget. Mayor Broun asked whether recommended pay increases remained the same. Mr. Horton said this was correct.

Council Member Evans inquired about Town funding of the Orange County Visitors Bureau. Mr. Horton said this level of funding would remain unchanged. Mayor Broun said this could be discussed at the May 31st work session if the Council wished to do so.

Council Member Waldorf inquired about the practical limits for Town staff to construct sidewalks. Mr. Horton said he believed staff could handle between $100,000 and $150,000 worth of sidewalk projects.

Council Member Capowski suggested the possibility of establishing a reserve fund for future computer hardware purchases. Mr. Horton said lease-purchase programs appeared to work well for computer hardware, with the interest rate paid being less than earnings on Town funds.

Council Member Protzman urged the Council to keep open the possibility of reducing the property tax rate. Mayor Broun suggested that staff outline some options for the Council to consider in terms of possible saving or use of the funds. He thanked the staff for their creativity in developing budget options.

Council Member Powell said although she agreed with Council Member Protzman's general comments, she favored proceeding with the experimental apprenticeship program. Council Member Waldorf suggested that the Council focus on non-recurring items if it chose to expend the recently identified additional funds.

Compensation

Mr. Horton said in response to a request from Council Members Protzman and Pavão, staff had drafted a compensation adjustment plan based solely on quartile or quintile distributions. He expressed concern that the quartile and quintile distributions would not address staff concerns about compression of salaries within pay ranges. Mr. Horton also briefly reviewed the advantages and disadvantages of quartile or quintile distribution systems.

Mayor Broun noted that several years ago the salaries of Town staff were adjusted in a similar manner, i.e., with larger percentage increases for those in lower pay ranges. Mayor Broun said he was uncomfortable with this approach at the time and remained so.

Mr. Horton said a telephone survey of local governments had found that most local governments proposed average salary increases of between four and five percent.

Council Member Protzman said from a comparison of the Town's salary structure to other local municipalities, the Town appeared to be in the middle or upper middle of salaries for most jobs. Council Member Protzman also said there appeared to be minimal attrition at the upper levels of the Town organization. He suggested that a portion of funds, perhaps a total of $100,000, could be distributed on the basis of merit.

Mr. Horton said it was quite difficult to make fine distinctions between performance levels in jobs. He stated that the middle 80% of the work force performed a very large portion of the organization's work on a consistent basis. Mr. Horton said he did not believe a quartile or quintile salary adjustment system would work well for the Town.

Council Member Pavao said it was a worthwhile exercise to periodically break out of a mold in order to evaluate options for salary adjustments. He suggested that staff might prepare a more cost-effective proposal for the Council's consideration. Mr. Horton said it was important to keep the budget within reasonable limits while finding innovative ways to recognize different groups of employees.

Noting that the Council had only received the information concerning quartiles and quintiles earlier in the evening, Council Member Waldorf said she would appreciate an opportunity to read through and consider the proposal. Council Member Waldorf said she thought compression concerns were addressed through position reclassifications. Mr. Horton said there were a number of mechanisms to address salary compression including reclassifications. Council Member Powell suggested that the Council take time to evaluate all of its options.

Council Member Capowski inquired about the average number of employees per supervisor. Mr. Horton said this varied by the types of operations involved. He also said staff could prepare a follow-up report. Council Member Capowski inquired whether it was the case that there were so few supervisors that they were unable to rate employees accurately. Mr. Horton said this was not the case.

Mayor Broun said he was opposed to salary schemes which took employees as a group and gave them lower salary increases solely on the basis of current salary.

Council Member Protzman said the $150,000 in projected savings might be used to reward outstanding performances.

Mayor Broun said the matter could be discussed in greater detail at the Council's May 31st budget work session.

Establishment of Solid Waste Management Department

Mr. Horton stated that the landfill had become one of the most complex Town operations in terms of politics and related information needs. He said the proposal before the Council this evening also suggested combined buildings and grounds maintenance functions into the Public Works Department.

Council Member Protzman said he thought the proposal was a great idea. Council Member Brown inquired about the genesis for merging landfill and recycling operations. Mr. Horton stated that this objective had been identified at the Council's January planning retreat. He also said staff had been working toward this goal since that time. Council Member Capowski asked whether it was correct that the landfill operation would not include transferring trash collection operations. Mr. Horton said this was correct.

Council Member Capowski asked how the maintenance of streets would be effected by the proposed reorganization. Mr. Horton said the Town's Public Works Director would be able to devote more attention to street maintenance.

Council Member Waldorf asked whether transferring buildings and grounds operations to Public Works was a good idea. Mr. Horton said yes. He stated that the reorganization would provide greater flexibility in setting the department's operational priorities.

Council Member Capowski said there appeared to be no negatives attached to the overall proposal.

Mr. Horton commended Public Works Director Bruce Heflin for his efficient handling of the Town's Public Works and Landfill operations in the past.

Mayor Broun said there appeared to be Council consensus to move ahead with the proposed reorganizations.

Inventory of Town Property

Mr. Horton said using capabilities of the new GIS mapping system, Town staff had been able to produce a draft map depicting the locations of major Town-owned parcels of land. Town Engineer George Small noted that a large amount of acreage, especially public rights-of-way, were not shown on the map. He said staff would continue its efforts to refine the map.

Council Member Evans suggested using the color blue for public housing to depict the Rainbow Heights neighborhood and to differentiate it from the surrounding park land. She also said the map was very useful as a research and informational tool.

Council Member Protzman inquired what overall percentage of property within Town limits was owned by the Town. Mr. Small stated that the GIS system could be used to determine an approximate percentage.

Council Member Capowski said it appeared that Town-owned properties were generally well distributed. Mr. Small noted that it was possible to include up to twenty overlay coverages on the map, depicting different types of information including streets, utilities and facilities. Council Member Capowski said he was delighted to receive the report.

Council Member Waldorf inquired about the possibility of selling some of the parcels of land. Mr. Horton said staff could research this matter if the Council wished to identify some parcels for potential sale. Council Member Capowski inquired about potential school district/Town school sites. Mr. Horton said the two best sites appeared to be at the Northern and Southern Community Park sites.

Park and Ride Lots: Overnight Parking

Mr. Horton said some students were currently using the Town's park and ride lots for storage of their vehicles effectively reducing parking available for commuters. He stated that Transportation Director Bob Godding was proposing the initiation of a fee to reduce the use of park and ride lots for storage parking. Mr. Godding stated that the proposed fee was proposed as a monitoring fee, rather than a large revenue generator. He said staff suggested a fee of $10 per month. Council Member Chilton said this seemed reasonable. Mr. Godding also said use of the lots for storage parking could be monitored by the use of permits.

Council Member Capowski inquired whether storage parking impaired operations such as cleaning of lots. Mr. Godding said although this was sometimes difficult, a permitting system would provide another mechanism for notifying customers of upcoming parking lot maintenance activities. Council Member Brown expressed concern that the proposed fee might not fulfill the primary purpose of the lot being available for park and ride commuters. Mr. Horton said Town staff could control the number of permits issued for storage parking in order to maintain adequate parking for commuters.

Council Member Powell asked whether it was correct that commuters would not pay this fee. Mr. Horton said this was correct.

Triangle Land Conservancy Funding Request

Mr. Horton said he believed that the recent funding request of $20,000 by the Triangle Land Conservancy would be beneficial to Town residents in acquiring greenways. Noting that she had previously worked on efforts to establish a New Hope Creek greenway corridor, Council Member Evans said she strongly endorsed the Land Conservancy's efforts. Mayor Broun said there appeared to be concurrence of the Council to move ahead with the matter. Mr. Horton noted that the commitment was for one year only, with reviews to occur in the second and third years.

Mayor Broun inquired about the possible format for the Council's May 31st budget work session. Mr. Horton said staff could develop a summary of possible budget options for Council consideration, with budget adoption possibly occurring on June 5th.

Project Turnaround

Council Member Waldorf said the Law Enforcement Monitoring Committee of the Violent Crime and Drug Abuse Program felt that Project Turnaround was a good alternative to prosecution program. She noted that the Town's program was federally funded through September 30, 1995. Council Member Waldorf said she hoped that the Council would agree to local funding of the program through the remainder of the 1995-96 fiscal year. She also stated that the Project Turnaround program might be expanded into a County-wide program in the future.

Council Member Waldorf suggested that the Council ask the staff to develop a status report on the Town's Project Turnaround program. Mr. Horton said he believed the program was a good one which seemed to achieve its stated objectives. He also said staff favored continuation of the program using local funding. Council Member Capowski inquired about the Town's annual outlay for the program. Mr. Horton said it would cost approximately $75,000 to run the program. Council Member Waldorf said this included one and a half positions plus program-related expenses. Council Member Capowski inquired about the number of program participants. Council Member Waldorf said there were currently about sixty participants. Noting the possibility of a county-wide program, Council Member Evans asked whether or not part of the program's current success was attributable to its relatively small size. Council Member Waldorf said a large part of the program's success was attributable to the program coordinator's inventiveness in identifying treatment programs for clients. She also noted that only about half of the program's participants were Town residents.

The work session concluded at 8:43 p.m.