MINUTES OF A PUBLIC FORUM OF THE CHAPEL HILL TOWN COUNCIL,

WEDNESDAY, MARCH 27, 1996 AT 7:00 P.M.

Mayor Waldorf called the meeting to order, noting that Council Member Joe Capowski and Pat Evans had Council-related commitments which might make it impossible for them to attend this evening's session. Council Members in attendance were Julie Andresen, Joyce Brown, Joe Capowski (arrived at 7:47 p.m.), Mark Chilton, Richard Franck, Lee Pavão and Barbara Powell. Council Member Evans was unable to attend. Also in attendance were Town Manager Cal Horton, Assistant Town Managers Sonna Loewenthal and Florentine Miller, Finance Director James Baker, Public Works Director Bruce Heflin, Housing Director Tina Vaughn and Town Attorney Ralph Karpinos.

Mr. Horton presented a very brief overview of budget related matters, noting that copies of budget-related proposals were available for review in the Town Clerk's Office and at Reference Desk of the Public Library. Mr. Horton stated that at this stage, it appeared that a one-half cent property tax rate increase would be needed to offset decreasing federal operating subsidies for Chapel Hill Transit. He also noted that there were several more steps in the budget process, including several work sessions and a future public forum.

Desmond Runyon, a pediatrician at UNC Hospitals, expressed his full support for the Chapel Hill-Carrboro School System's after school program. Dr. Runyon said that these programs offered many different types of opportunities for young people, with children interacting with their peers, rather than spending their time at home watching television.

Susan Levy, Executive Director of Habitat for Humanity, said that the topography of lots in the Culbreth Park subdivision involved higher than normal lot clearing and grading costs. Ms. Levy stated that estimated site improvement costs per lot would be about $40,000 for five lots. She stated that a number of community and church related organizations were excited about the possibility of helping Habitat with building homes in Culbreth Park. Ms. Levy also stated that Culbreth Park residents had met last evening with Habitat for Humanity officials last night and reached consensus on guidelines related to a specific home in the neighborhood. She said the neighborhood association no longer recommended withholding funds from Habitat's programs.

Beverly Scarlett, Chairperson of the Habitat for Humanity Board, asked the Council to consider all issues involved with the petition recently submitted by the Culbreth Park Homeowners Association. Ms. Scarlett stated that homeowners had a right to privacy which others could not interfere with. She said that Habitat for Humanity was taking all steps possible to assure that matters were being handled properly to bridge current barriers.

Gloria Williams, Executive Director of JOCCA (Joint Orange-Chatham Community Action Agency), presented an overview of her agency's budget request to the Town. She stated that given recent reductions in federal funding, it was essential for local units of governments to provide greater assistance to programs such as JOCCA.

JOCCA employee Joe Percovich said most funding for JOCCA's senior programs came from the federal government. He stated that there had been recent cuts in these funds and more reductions were anticipated in the future. Mr. Percovich requested that the Council continue to provide local matching funds for JOCCA's programs.

Andrea Smith-Bunn said she was an avid supporter of the Culberth School after schools program. She stated that thanks to the efforts of the Council, School District and others, program participants received free transportation home every day. Ms. Smith-Bunn requested that the Council continue its support of the program.

Harvey Reid, representing the Midway project, said that the goal's project was to assist individuals earning less than sixty percent of the area's median income with skills training, home budget and computer technology training programs. He requested the Council's strong consideration for funding these programs.

Mary Eileen Anderson, representing the Orange and Durham County Junior League, thanked the Council for its current funding of the Chapel Hill-Carrboro Schools after-schools program. She stated that the program's 1997 funding request to the Council was for $47,414. Ms. Anderson stated that the program was tremendously successful, with students receiving higher grades and experiencing better peer relations. Mayor Waldorf asked whether an application for the requested funding increase had been submitted. Ms. Hoke said she believed so.

Kim Hoke, Assistant to the Chapel Hill Carrboro Schools Superintendent, said that the financial support of the Town, Carrboro and Orange County for the after schools program was critical. Ms. Hoke stated that the feedback about the program from teachers, parents and students alike was consistently very positive. She said that the Council's continued support of the program would be greatly appreciated.

Lynnette Omar said she supported the school district's after schools program. Ms. Omar also said that the program was a very constructive alternative for young people, especially for working parents. She said that two of her children were on the A and A/B Honor Roll at school. Ms. Omar said a portion of this success could be attributed to the program. She expressed hope that the Council would increase funding for the after school program.

Myles Presler, Coordinator of the Interfaith Council's Employment Project, said he was very excited that staff was recommending funding of the Interfaith Council's transitional housing program. Mr. Presler also stated that it was very important to place an emphasis on resolving the concerns of public housing residents.

Steve Wallace said he was amazed at the number of worthy programs such as Habitat for Humanity, Interfaith Council and JOCCA which made very good use of a limited amount of funds for its programs. Stating that the DARE program was an ineffective one, Mr. Wallace said that the Town was wasting about $75,000 per year to fund this program. He also stated that the Town's crime rate had not decreased significantly, in spite of the fact that new police officer positions had been added on an annual basis in recent years. Mr. Wallace urged the Council to spend money on worthy programs, such as providing better pay and benefits for the Town's lower-paid employees.

Steve England of the Black Public Works Association (BPWA) stated that a number of persons were in attendance this evening to support the association's concerns, including: Gloria Williams, Mildred "Dip" Council, Harvey Reid, Dan Coleman, Ray Everhart and Fred Battle.

Marion Lyde, a member of BPWA, said his organization was recommending that the Council adopt a "freedom budget" to correct wage disparities for lower-paid Town employees. Stating that there appeared to be a permanent ceiling in the Public Works Department, Mr. Lyde said there were very few African-Americans in the higher pay grade positions in the department. He also stated that the career ladder for white employees in the department appeared to go straight up.

Referencing recent data on cost indices, Lonnie Degraffenreidt stated that the Town's cost of living index for housing and other goods was well above the national average. Mr. Degraffenreidt said it was consequently very difficult for persons such as himself to afford a home or apartment within Town limits.

George Parrish, a Town employee for over twenty years, said many of his peers in the Public Works Department held second jobs out of economic necessity. Mr. Parrish stated that the Town's lower-paid employees deserved to receive more money for their jobs, rather than merely a pat on the back.

Fred Battle, a lifetime resident of the Town, said he could not afford to build on land owned by his parents within Town limits. Stating that he had worked for the Town for twenty-six years, Mr. Battle also said that daily expenses such as the cost of food and the cost of washing a car were higher than costs for similar goods and services in other communities. He stated that employees wishing to do so should be able to afford to live within Town limits. Speaking in his role as Chairperson of the JOCCA Board, Mr. Battle said as federal funds dried up, JOCCA needed more Town funding to continue its social programs in the community.

Maggie Burnett, Office Manager for the Public Works Department and a Town employee for nineteen and a half years, stated that there had been several years recently when Town employees did not receive pay increase or classification-related salary adjustments. Ms. Burnett said that such events placed emotional and fiscal stress on employees, especially those in lower pay grades. She also expressed concern that the maximum amount of merit pay available to employees had decreased on an annual basis. Ms. Burnett stated that although she had worked for the Town for many years, she could not afford to live in the Town. She also presented a brief overview of the number of employees in various pay grades, stating that the preponderance of part-time and full-time Town positions were clustered in the lower pay grades (ten to twenty). Stating that Town employees were also taxpayers, Ms. Burnett invited Council Members wishing to do so to perform jobs in the Public Works Department for one day such as answering telephones, using heavy equipment or any other of the myriad of jobs in the department. Stating that employees in lower pay grades also took great pride in their tasks and professionalism, Ms. Burnett urged the Council to adopt the Manager's recommendation on the matter of salary adjustments.

Sam Rone, a Landscape Laborer in the Public Works Department, said he aspired to be an administrator one day. Mr. Rone also said that one of his strongest desires was for his children to be the best they could be in the future. Mr. Rone also stated that he held a part-time job three days per week in order to earn some discretionary income. Mr. Rone said the Town's Public Works employees work hard and needed to receive more money in order to recognize these efforts.

Greg Thomas said although he thought that the proposed budget was a fine start in the right direction, more upward salary adjustments were needed for employees at the low end of the Town's salary range scale.

On behalf of all the members of the Black Public Works Association (BPWA), Mr. England said the association appreciated the opportunity to address the Council this evening. Mr. England said although BPWA were attempting to advance in the Town system, members felt that the system was failing them. Mr. England said that the BPWA urged the Council to "put in its two cents for justice" (a two cent property tax increase as proposed by BPWA) in order to fund larger salary increases for employees in lower-paid salary ranges. He said if it took a two cent property tax increase to right an existing wrong, the Council should do so. Mr. England also said that the Council's decision on BPWA's proposed "freedom budget" would determine whether or not economic justice had come to the Town. Noting that a number of Council Members had encouraged BPWA members to make their concerns known during the budget process, Mayor Waldorf thanked the association's members for their remarks this evening.

Walter Britt, Director of Staff and Program Development for the Chapel Hill-Carrboro YMCA, thanked the Town for currently funding the after-schools program in the Pine Knolls Community. Mr. Britt said that the YMCA was requesting continuation of funding of $10,000 for the next school year. He also stated that this program was solely possible because of the Town's willingness to fund it.

Dan Coleman, representing the Orange County Greens, said his organization applauded the efforts of the Black Public Works Association and the elimination of the Town's four lowest pay grades. Mr. Coleman said that the staff's proposal did not go far enough in attempting to pay just and living wages to all Town workers. He urged the Council to look for innovative ways to address regressivity in compensation levels. Mr. Coleman also urged the Council to look for ways to make reforms locally relative to compensation of lower paid employees.

Mildred Council requested that a portion of the Downtown Service District's funds be used to buy new holiday decorations for the downtown area, especially along Rosemary and Franklin Streets. Ms. Council also expressed concern about a recent incident at Dip's Restaurant (her business establishment on Rosemary Street), during which a homeless person had inflicted damage to her restaurant's bathroom facility prior to the arrival of Town police officers. She also suggested that the Council look into the possibility of turning units at the Craig/Gomains public housing community into condominium units, following planned renovations. Ms. Council also requested that the Town look into the number of out-of-state residents moving into the Town's public housing communities.

James McEnery, a resident taxpayer of the Town, said he felt certain that the matter of numbers in the proposed budget had practically been finalized regardless of planned opportunities for citizen input. He urged the Council to remember that they needed to be very circumspect in their budget-related decisions. Mr. McEnery said that the group which made its presentation this evening sounded like a United Way solicitation program. He also requested that the Council closely examine the Town budget and make reasonable and sensible decisions.

Lei Knight, the mother of a Culbreth Middle School student on the honor roll, said she attributed a portion of her daughter's success to the Chapel Hill-Carrboro after school program. Ms. Knight also said that the Town's Public Works employees needed to receive good salaries. Noting that she was the new director of the Interfaith Council's Employment Project, Ms. Knight said the program had graduated four participants on March 12th, thanks in part to funding from the Town Council. She also noted that a revised budget program request had recently been submitted to the Town, seeking funding of $23,517, rather than the $30,000 originally sought. Ms. Knight said it was crucial for the Town and the Interfaith Council to continue its partnership relative to the IFC's Employment Project.

Joanne Shirer thanked the Council for its assistance with the Town's public housing programs, including the Public Works Department's upkeep of public housing communities. Ms. Shirer said the Public Housing Residents Council was requesting funding of $42,400 from the Comprehensive Grant program to pay for four staff positions, including a community organizer position. Ms. Shirer thanked the Council for their assistance in making improvements at public housing communities.

Council Member Andresen asked whether the current Resident's Council program funding was from grants or Town funds. Mr. Horton said that the Residents Council had received a direct grant of about $100,000 from the United States Department of Housing and Urban Development. He stated that the Town had also made a grant of about $40,000 to the program a few years ago.

Stating that she had a mixed impression of what was being asked for, Council Member Andresen said she would be interested in knowing what was the most important priority of the Black Public Works Association. Mr. Horton said staff could prepare a separate follow-up report responding to BPWA's suggestions regarding pay plan proposals.

Council Member Chilton asked whether Town staff had met with BPWA representatives about their freedom budget proposal. Mr. Horton said although staff had been meeting with members of the Public Works Committee and BPWA about a number of employment-related issues, he stated that details of the BPWA pay proposal had not been received by staff until this evening.

Council Member Chilton said it would be helpful to have staff's reaction regarding the Black Public Works Association's cost estimates. He also said it would be helpful for Town staff to have some discussions with representatives of the Public Works Committee and BPWA regarding pay options. Mr. Horton said that while Town staff could meet and confer with these representatives, staff could not negotiate with the representatives under existing State law. Mr. Horton stated that staff would be pleased to discuss its analysis with representatives of the Public Works Committee and BPWA.

Council Member Brown said she would like to see more information and detail about the Black Public Works Association's (BPWA) proposal.

Council Member Andresen asked whether staff would provide information about the proposed total compensation package for Town employees. Mr. Horton said that staff would provide a comparative overview of benefits for Town employees.

Council Member Powell inquired whether there were any new funding requests presented this evening, other than Ms. Council's request for funding of holiday decorations and BPWA's funding request. Mayor Waldorf said she did not believe that there were any other programs presented this evening that the Town had not previously or currently funded. Council Member Powell said she concurred with Council Member Chilton's comments on the Black Public Works Association (BPWA) and requested assurance that Ms. Council's would be addressed.

Mayor Waldorf requested that staff look into the security-related difficulties at Ms. Council's business. Mr. Horton said staff would do so.

Council Member Brown said she was interested in knowing when the Craig/Gomains housing community improvements would be completed. She also stated that Ms. Council had made an interesting proposal regarding converting Craig-Gomains into a condominium project. Mr. Horton said refurbishment of the Craig-Gomains neighborhood was scheduled for next year, with construction work to begin in winter or early spring. He stated that it would be difficult to turn the units into condos, given federal requirements that if the units were sold, the Town would need to replace these units with a like number of public housing units.

Mayor Waldorf requested that staff respond to Ms. Council's concerns regarding who was admitted to public housing. Mr. Horton said staff could see whether or not federal rules had changed regarding public housing residency regulations. Council Member Brown said she thought there had been efforts to change federal public housing rules. Mr. Horton said these had ended with the last Republican administration, when there had been funding for studies to investigate the feasibility of converting public housing to private housing. He noted that these programs did not provide implementation funding.

Council Member Brown requested that staff provide the Council with information regarding out-of-state residents in the community's public housing communities. Council Member Powell said residents of federal public housing could move from anywhere in the United States.

Noting that he had recently received orientation briefings in a number of Town departments, Council Member Franck requested that the Council consider the possibility of adding staff in the Planning Department to help handle the department's greatly increased workload. He suggested that this matter could possibly be discussed at a future work session.

Mayor Waldorf asked staff to make sure that the Human Services Advisory Board was doing an evaluation of the after schools program, as the Council had requested earlier in the year.

Capital Program Needs

Mayor Waldorf called upon Mr. Horton for an overview of the Town's current capital needs.

Mr. Horton presented an overview of capital facility needs, including the need for parks and recreation facilities, a fire station and related equipment in the southern part of the town and training facilities for the police department. He added that staff was not able to recommend a number of other items in the preliminary small capital improvements program (CIP) due to funding constraints. Mr. Horton said other capital needs included a telephone system at Town Hall and a truck washing system in the Public Works Department.

Mr. Horton said the Town's current capital bond indebtedness totalled $14 million and would be a little less than $17 million once refunding of bonds took place. He stated that this total indebtedness would be paid off by the year 2015. Stating that municipalities in North Carolina could not have debt exceeding 8% of a community's tax base, Mr. Horton said the Town's debt level was well below this threshold. Stating that there were no urgent capital needs, Mr. Horton said staff felt it was important to bring capital-related matters to the Council's attention as a planning tool.

Noting the difficulty of comparing disparate capital project needs such as police department facilities and greenways, Council Member Capowski asked whether could provide the Council with a prioritized capital project needs, including costs. Mr. Horton said staff could do so.

Council Member Capowski inquired about the level of service collaboration between area fire departments. Mr. Horton said that he would guess that there were probably more cases where other departments came to the Town's aid than the other way around.

Noting that a focus had been placed on maintaining the current property tax level, Council Member Andresen said it would be helpful for the Council to know the Town's real capital needs. Council Member Andresen said although she was not going out on a limb for a bond issue, she did think that staff needed to convince the Council about critical capital needs.

Mayor Waldorf asked whether staff could prepare a list of the Town's ten year capital needs. Mr. Horton said that staff could prepare a list of the Town's principal capital needs, with two or three items in each area. He also said that could provide additional detail on this matter in the future.

Mayor Waldorf said she hoped that the Council would continue discussions with other elected officials in Orange County relative to equity and capital issues.

Noting that Henry Whitfield had arrived following the public hearing, Mayor Waldorf inquired whether or not Mr. Whitfield wished to address the Council this evening.

Henry Whitfield said he had originally made a proposal to the Council about twenty years ago regarding the purchase of lowlying parts of the Town. He stated that several other area communities (Raleigh, Greensboro and High Point) currently had such programs.

COUNCIL MEMBER CHILTON MOVED, SECONDED BY COUNCIL MEMBER PAVÃO, TO REFER COMMENTS FROM THIS EVENING'S FORUM TO THE TOWN MANAGER. THE MOTION WAS ADOPTED UNANIMOUSLY (8-0).

The meeting concluded at 9:16 p.m.