SUMMARY MINUTES OF A WORK SESSION OF THE

CHAPEL HILL TOWN COUNCIL

DEPARTMENT BUDGET PRESENTATIONS

FRIDAY, MARCH 3, 2000, 12 NOON

Mayor Rosemary Waldorf called the work session to order at 12 noon.

Council members present were Flicka Bateman, Joyce Brown, Pat Evans, Kevin Foy, Lee Pavão, Bill Strom, Jim Ward, and Edith Wiggins.

Staff members present were Town Manager Cal Horton, Planning Director Roger Waldon, Housing Director Tina Vaughn, Engineering Director George Small, Inspections Director (Retired) John Davis, Transportation Director Bob Godding, Public Works Director Bruce Heflin, Parks and Recreation Director Kathryn Spatz, Library Director Kathy Thompson, Finance Director Jim Baker, Finance Computer Analyst Bob Avery, and Town Clerk Joyce Smith.

Department of Housing

Housing Director Tina Vaughn explained that the Housing Department would not propose any changes in staffing or programming for 2000-2001.  She said they planned to continue in the same manner as 1999-2000.  Ms. Vaughn noted that the Housing Department budget totaled about $1,400,000, and pointed out that this was a decrease of about $2,200 from the current year’s budget.  She said that this was because there were no proposed major capital expenses. 

Ms. Vaughn said that the Department expects to be a bit short for expenditures and will need to use about $19,000 of its fund balance.  She pointed out that this would leave a fund balance that exceeds the HUD minimum requirement.  Ms. Vaughn said that the Department plans to make some small capital purchases of computer equipment and a 280 square foot storage building in 2000-2001.

Council Member Foy asked Ms. Vaughn how having housing units in Carrboro had worked out as far as HUD money and budgeting was concerned.  She replied that there was no financial relationship because the housing units in Carrboro were owned by Chapel Hill.  Ms. Vaughn explained that the Chapel Hill Public Housing Program is the only program for Orange County.

Council Member Foy asked if there were any plans to expand the program outside of Town limits.  Ms. Vaughn replied that there had been no discussions about expansion and there had been no new construction since 1993.  She added that there was no federal money available for new construction, except through a program which requires demolition of existing units.  Ms. Vaughn noted that the Town had no buildings in such deplorable condition that they would warrant demolition.

Mayor Waldorf remarked that there was a Section Eight program in other towns.  Ms. Vaughn agreed, but repeated that there was no conventional public housing provided by other towns in Orange County.  Town Manager Cal Horton mentioned that the staff was concerned about the federal government cutting back on the amount of subsidy. 

Mayor pro tem Pavão asked how many people were on the waiting list, and Ms. Vaughn replied that there were 115.  Mayor pro tem Pavão asked if that was the average, and Ms. Vaughn said that it had been for the past six months but had been higher in the past.   Ms. Vaughn explained that the Housing Department had begun conducting background checks on applicants before putting them on the waiting list.  She said that many do not meet the criteria, especially as it relates to criminal history.  Mayor pro tem Pavão asked if there were any openings.  Ms. Vaughn replied that there were nine currently, adding that this figure varies.  She said that they never have more than ten openings at one time.

Council Member Brown asked if the Department had been able to find living accommodations outside of public housing for some people.  Ms. Vaughn said that there had been a plan to refer some in the higher rent range to programs that exist in the community, such as EmPOWERment and Habitat for Humanity.  She explained that three families had moved out of public housing into Habitat homes since last year.  She added that one family is in the process of moving and two other families have just been approved for that process.  Ms. Vaughn also noted that one family had moved into the Homeownership Program at Pine Knolls. 

Council Member Bateman asked how many units were required for those 115 applicants on the waiting list.   Ms. Vaughn replied that the figure meant 115 households requiring 115 apartments.  Council Member Bateman suggested that the director of Product Achieve make a presentation to the Council, adding that she had heard many good things about that program.  Council Member Bateman then asked how many Hispanic families lived in public housing and how actively the Town was recruiting them.  Ms. Vaughn replied that Hispanic families tend not to seek out assisted housing but prefer to rent on the private market.  She noted that five Hispanic families, totaling twelve individuals, live in the Town’s apartments.  Ms. Vaughn commented that this is consistent with what she would expect given the history of the program. 

Council Member Bateman encouraged Ms. Vaughn to raise her expectations, adding that people from the Hispanic community had told her that Hispanics seek other kinds of rentals because they do not know about public housing.  Ms. Vaughn explained that the Department’s pamphlets are in English and Spanish and that they have been placed at the homeless shelter and at Department of Social Services.  She said that she was considering putting information at the Employment Security office as well.  Council Member Bateman suggested also putting it at the local Catholic churches and at Iglesia.    Ms. Vaughn agreed to do so.

Council Member Ward asked if the Council should expect the trend of increased personnel costs to continue over the next few years.  He asked if the capital cost would surprise the Town since it is not putting money into it now.  Mr. Horton replied that there were several things in this budget that were different from other budgets, with the exception of the Transportation Fund.  He explained that it is a “stand alone fund,” separate from the General Fund.  Mr. Horton pointed out that because it had to be submitted to HUD early, the staff had to make an allowance for possible salary increases for employees.  Therefore, the fund does have a reserve for salary increases included in it, Mr. Horton said.  He added that the Council had authorized changes in the pay system to avoid compression, so the cost in some cases had increased at a substantial rate.  He added that this rate of increase should not continue. 

Mr. Horton pointed put that there is another source of capital investment in public housing that does not show up directly but does show up in the Capital Improvements Program.  He explained that those were the dollars the Council is able to allocate from the Community Development Fund and through the Comprehensive Grant Program (which are federally funded sources) for improvements to 336 dwelling units that the Town provides.  Mr. Horton said that the capital improvements mentioned here were principally capital outlay items (machines, trucks, and the like) rather than capital improvements. 

Ms. Vaughn pointed out that there had been several months of recruiting problems.  She said that filling the vacancies added to the salaries figure.

Council Member Wiggins asked Ms. Vaughn to comment on the award the Department had recently received.  Ms. Vaughn replied that she had met HUD Secretary Cuomo when she went to a special ceremony in Washington D.C. because of the inspections score that the Town had received.  Mr. Horton added that it had been a perfect score of 100.  Council Member Wiggins expressed pride over what Ms. Vaughn had done with the Housing Department.  Mr. Horton added that the Council had contributed to this success as well because it had been willing to spend a portion of the Community Development Funds and a portion of General Funds on the Public Housing Program.

Council Member Foy asked how much General Fund money would be in the Housing Department’s budget.  Ms. Vaughn replied that there were no actual General Fund dollars in this budget but that the General Fund had paid for the cost of maintaining the grounds by the Public Works Department, which is paid out of the General Fund.  Mr. Horton added that it was in the $110,000-$120,000 range. 

Council Member Foy wondered how the demand would grow as the community grows and what the Town could do to alleviate it.  Ms. Vaughn replied that providing rental units that were a step between public housing and homeownership would make room for families on the waiting list.

Mayor Waldorf wondered if the Council should encourage projects such as Dobbins Hill.   Ms. Vaughn noted that her Department does not generate revenue.  She said that if the Town owned the units and the Housing Department managed them, then the Department would make a profit and have some off-setting revenues.    

Council Member Brown asked Ms. Vaughn to discuss the Integrated Pest Management Program.  Ms. Vaughn explained that the Department had gradually decreased the level of pesticides to the level where now they use bates and traps.  She added that they conducted an extensive educational campaign to change lifestyle habits and eliminate the pests’ food and water supply.   Council Member Brown added that the Chapel Hill pest control program had been used nationally as an example of a good, integrated pest management program. 

Council Member Evans asked if the Department had tracked the demographics of those who live in public housing, how long they had lived there, and whether or not it had become a way of life.  Ms. Vaughn replied that the Department has a software program to track this data.  She offered to provide a printout for the Council.  Council Member Bateman asked if the Department allowed pets.  Ms. Vaughn replied that it did for seniors and handicapped households. 

Council Member Wiggins requested that the demographic information that Council Member Evans had requested include the number of units that the Council can expect people, particularly the elderly, to stay in for a lifetime.  Council Member Evans said that she had not meant to include senior housing in her request.  Ms. Vaughn noted that she had not meant to include senior citizens when she discussed transitioning residents out of public housing. 

Mayor Waldorf asked if the Council was requesting that the Manager put Ms. Vaughn’s rental housing concept on the agenda for future discussion.  Mr. Horton replied that he could do so by the fall.  Mayor Waldorf suggested that it include only key ideas so the Council could decide whether or not to pursue it further.  Council Member Foy suggested looking into whether the Town could use the affordable housing bond for this purpose. 

Mayor Waldorf praised the profile sheet that Ms. Vaughn had provided.  She noted that the number of unemployed households was 123, and asked for more information later about which ones were being put in touch with Work First.  Mayor Waldorf asked Ms. Vaughn to also give her opinion on how well she thinks Work First and other programs and agencies are helping people seek training and employment.  Ms. Vaughn agreed to do so.

Mayor Waldorf said that it had bothered her over the years that the Town’s Public Works employees had to pick up trash at public housing grounds.  She asked how the effort to make maintaining the yard a part of the lease was going.  Ms. Vaughn replied that one housing officer had been inspecting front and back yards and residents were cooperating.  Mayor Waldorf praised Ms. Vaughn for doing such a great job and noted that the Department gets better every year.

Department of Engineering

Engineering Director George Small listed the Department’s objectives and major areas of responsibility (development review, stormwater management, traffic management).  He said that the Department also provides field inspection, engineering inspection services, and land surveying services. Mr. Small added that development of the geographic information system is another key area for the Department.

Mr. Small explained that the Department works on small-scale projects, adding that the percentage spent on surveying and design construction is a large percentage of the cost of the overall project.  He explained that consulting services are very high when the Department had to use a private engineer to do sidewalk design or perform land-surveying services.  Mr. Small noted that the Engineering Department’s goal is to do as much of that as possible for the Town.

Mr. Small explained that there were 91 intersections among the two towns, Chapel Hill and Carrboro, and noted that the Department of Public Works provides maintenance of those systems.  He stated that David Brown, Chapel Hill’s Traffic Engineer, works on the timing and coordination of those signals and that Carrboro pays the Town a portion of Mr. Brown’s salary and benefits, which is now up to 21%. 

Mr. Small reviewed the Department’s sources of income and explained that the Town provides Carrboro with water quality testing for which Carrboro reimburses the Town.  He said that engineering permits had been very volatile and it was difficult to estimate that figure.   Mr. Small pointed out there was a  proposed increase in inspection fees. 

Moving to the operating budget request, Mr. Small stated that the Department did not expect to have greatly different expenses next year than they had this year, with the possible exception of stormwater management, depending on what the Town decides to proceed.  He explained that a committee would make recommendations on establishing a stormwater utility and that he would report to the Council later in the year.  Mr. Small said that the Department would propose that all of the expected costs of stormwater management, water quantity, and water quality be funded through that utility.  He noted that there would be work to perform on enabling legislation.  

Mr. Small reported that there had been some erosion in two areas: traffic engineering services; and the geographical information system.  Regarding traffic engineering services, he said that he thinks the problem was related to the large number of requests they get each year for assistance.  He noted that the Department sometimes has a highly paid professional hammering nails and spraying signs.   Mr. Small proposed hiring a technician to handle the items that do not require a professional’s attention.  

Regarding the geographic information system, Mr. Small said that because the program is successful there is much data that needs to be processed.  He pointed out that the individual who was hired to develop new applications was busy keeping up with data.  Mr. Small stated that the technology pays for itself when applied properly, and suggested hiring someone who could focus on applications while someone else kept the data up to date.

Council Member Evans asked if there was any way that Council members could access the County’s GIS.  Mr. Small replied that they could access that information as citizens.  He added that he would like to have that information available on the Internet.  Council Member Evans noted that it would be helpful if the Fire Department, for example, could have access to the floor plan of a building that they were called to during the night.  Mr. Small replied that they have the data to create those kinds of applications and that their goal is to make as much of it as they can available. 

Council Member Ward asked if it was correct that the Department’s most time-consuming task, as well as its highest priority, was for development review.  Mr. Small stated that they move other things aside to make sure that development review occurs properly.  Council Member Ward verified that there was no engineering aspect of a development review fee in place.  Mr. Small replied that he did not count his own time spent when estimating the cost of development review.  Council Member Ward noted that the Engineering Department should be a huge source of fees when the Manager does the analysis of staff time spent on the new development process. 

Mayor Waldorf asked if others were interested in pursuing Council Member Ward’s suggestion.  Several indicated that they were.  Mr. Horton replied that this could be done on an estimated basis this year, and then, based on actual data collection, it could be adjusted the following year or after six months of data collection. 

Council Member Strom asked if the Department was considering adjusting the Design Manual.  Mr. Small replied that the Design Manual gets revised based on how the Council wants the Department to operate.  He added that it was serving adequately now, but they would eventually want to have some guidelines for what is expected.  Mr. Small added that he expected it to be an incremental change.

Council Member Brown asked for a comment about stream quality, particularly New Hope.  She asked how much retention quality, or lack of it, adds to that.  Mr. Small replied that the Town had implemented water quality programs and does monitor stream life.  He said the Department is aware of some streams needing work and had attempted to pinpoint problem areas.  Mr. Small acknowledged that they had not been quick enough regarding the impact of sedimentation on streams, and noted that changes eventually were made in the regulations. 

Mr. Small predicted that the long-term fixes would be a combination of initiatives taken by the Council to change, control, or manage the types of developments that occur.  He added that this would include limitations on impervious surface and disturbed areas, to whatever extent the Town can within the law and within land use regulations.   He stated that the Town would also have to invest more time and resources in making sure that things, such as detention basins, are operating properly. 

Mr. Small noted that there were arguments both for and against detention basins.  He stated that there was not a lot of technology available to stop the kind of sedimentation and erosion that the Town has.  The Engineering Department’s goal, said Mr. Small, is to work through “the utility concept” to identify the kinds of resources it will need to do a better job with the tools available.  He recommended continuing to use detention basins, but pointed out that they should be better maintained.   

Council Member Brown noted that the responsibility falls on the Town, rather than the developer or the neighborhood, to maintain detention basins.  Mr. Small replied that either the Town or the County was responsible.  He noted that regulations already are given to developers, but they do not comply unless the Department had someone to enforce regulations.  Mr. Small acknowledged that neither Orange County nor the Town had the resources to monitor that as well as they should.  He added that the ultimate solution to sedimentation would be for the Town to limit l and disturbance.

Council Member Brown reminded Mr. Small that the Council had asked for information on Olympia, Washington, which handles sedimentation problems differently.   Mr. Small replied that the report she requested would be coming in April.  Council Member Brown asked if there were any kinds of regulations requiring neighborhoods to maintain retention ponds.  Mr. Small replied that there were, and that sedimentation and erosion control facilities are now required to be bonded, which, he said, was basically a “performance bond.”  Mr. Small remarked that the Town requires everything that can be required in North Carolina. 

Council Member Strom suggested moving in the direction of an open system, which would allow other departments to coordinate through a paperless, more efficient, integrated approach that goes into the GIS system.

Council Member Foy expressed interest in seeing a level of detail which gets behind the numbers, rather than just summaries of the numbers.   Finance Director Jim Baker replied that the Town has a document that notes all of the line items that go into the summary.  Council Member Foy commented that would also be a summary, and asked if each position and its associated costs had been broken out.  Mr. Baker said that such information was available and that he could provide some detailed information on each line item as well.  Mr. Horton said that Mr. Small’s detailed information ran about 20 pages. 

Council Member Wiggins asked Mr. Horton if the budget would reflect Mr. Small’s requests.  Mr. Horton replied that he would not recommend either of the positions that Mr. Small was requesting, but would welcome the Council’s decision if they had a different assessment of it.  Mr. Horton added that he would not recommend any additional positions, except those that the Town must have if it continues with its annexation policies.

Mayor Waldorf suggested returning to Council Member Strom’s comments about the GIS system.  She asked if Council Member Strom had also been raising the question of whether this could be a revenue generator.   Council Member Strom replied that he had been thinking in terms of the goal that Council Member Foy had brought up at the Council’s retreat in January.  He added, though, that he would be interested if there was a “revenue angle.”  Mr. Horton replied that this was essentially what he had been working toward, but that there was a long way to go.  He added that State law requires that the Town provide all of the information in the GIS system for the cost of the media.  Mr. Horton added that he agreed with the State on this, noting that the public had already paid for it and should have free access.

Department of Inspections

Mr. Horton expressed gratitude to former Inspections Director John Davis for giving this report even though he is retired.   Mr. Davis thanked the Mayor and Council for having given him the opportunity to work with them for the past 27 years. 

Mr. Davis explained that the primary mission of the Inspections Department was to provide safety of life and property through the effective administration and enforcement of codes, ordinances and regulations.  He pointed out that this Department had not had the luxury that other departments had to create its own programs.

Mr. Davis said that the base budget would essentially be the same as last year, with the exception of the cost of additional schooling for a zoning officer who had been transferred to the Department.  He said that permits were being processed in an orderly and timely manner and that the Department had been able to maintain high quality inspectors.  Mr. Davis added, though, that it would be best if the Department could perform inspections on the same day as requested.  He recommended adding two Housing Code inspectors and a Secretary I to the Department.

Mr. Davis explained that he had been looking into a program in Charlotte, called “environmental court date,” whereby the Inspections Department would take all of its cases and bring them to court on the same date each month.  He said that he had requested information on how the program works, adding that Charlotte staff had indicated that it had greatly helped them with enforcement.

Council Member Strom inquired about the value of the Town instituting either a rental licensing program or a rental permit that had an inspections component which was complaint driven.  Mr. Davis replied that it would enable the Town to investigate the complaints, but noted that someone else would be issuing the licenses. 

Council Member Brown asked if this was an Enterprise Fund.  Mr. Horton replied that it was not, adding that the inspections program is the only one that collects its full costs.  Council Member Brown asked how it would be funded, and Mr. Davis commented that it could be funded through taxes because it would investigate citizens’ complaints.

Council Member Foy asked what the Department looks for when inspecting daycare facilities, and if it is enforcing Town or State rules.  Mr. Davis replied that the Department was enforcing State rules.  Council Member Foy asked Mr. Davis if he thought those rules were reasonable.  Mr. Davis said that he did. 

Council Member Foy asked how the $25,000 position would work in the Town’s system and to what extent the Town could get people who have GIS skills at that salary level.  Mr. Horton replied that it is possible to find such people for short periods of time while they are looking for other jobs.  He stressed that it was very difficult for the Town to find people with a high level of skills.  Council Member Foy inquired about the level of technical skills that people who worked for the Town had.  Mr. Horton pointed out that it depended on the nature of operation, and noted that GIS technicians are expensive and difficult to find.  He added that it was also difficult to find people who know how to use databases and spreadsheet programs.  

Mayor Waldorf, commenting that this was her seventh budget with Mr. Davis, said that she was sorry it would be the last.  She pointed out that Mr. Davis had been very fiscally constrained, and asked how the two housing code inspectors that he was proposing would fit in with the zoning enforcement officer who had just been transferred.  Mayor Waldorf also asked Mr. Davis if he thought that the Department needed three people to deal with the issues.  Mr. Davis replied that although the Department has a zoning officer it would be difficult for one person to keep up with all the zoning violations if the Town initiates a systematic inspections program.  He explained that the housing inspectors would work in specific areas of Town while the zoning officer would work all over Town. 

Mayor Waldorf asked Mr. Davis to tell her again why he thought it was important to do a systematic inspection.  Mr. Davis replied that the Town should keep the housing stock at a level where the tax base would always remain high.  He stressed that the way to do that would be to go inside houses and make sure that they are being maintained at a specific level, rather than inspecting them on a “call-in” basis.

Mayor Waldorf summarized Mr. Davis’s proposal that employees go into all houses in Town over a certain time period.  She asked if the Town had done this in the 1970s.  Mr. Davis replied that there had been such a program in the ‘70s and ‘80s.  He then described several problem areas in Town that had not been repaired because no one had complained to the Department. 

Council Member Foy asked if inspectors would need permission to enter homes.  Mr. Davis replied that the Town would not need permission for a systematic housing inspection program.  He said that the Department would send out letters and set up a time to inspect, adding that 90% of citizens would gladly invite Town inspectors into their homes.  Mr. Horton pointed out that if someone wished to challenge that, the Town could seek a warrant and go through a probable cause hearing.

Council Member Foy said that the environmental court sounded like a good idea.  He added, though, that the Town should encourage that the court be held in Chapel Hill. 

Department of Transportation

Transportation Director Bob Godding noted that there were 15 fixed routes that serve Chapel Hill, Carrboro and the University.  He attributed the slight (four and a half percent) decline this year in transit ridership to a decline in park/ride utilization, due to the University’s 1700-space parking deck south of the Hospital.  Mr. Godding said that both E-Z Rider Services and Shared Ride Service were doing well, but that Tarheel Express Service ridership had declined by 40%.  He suggested that this decline was probably due, in part, to a fee increase, fewer events, and the poor performances by UNC teams.

Mr. Godding noted that operating revenues for Transit were looking good.  He noted that federal and State funding for the coming year did not reflect the supplemental $500,000 in funding from the State that the Department received last year.  Mr. Godding explained that the net cost covered by the University, Carrboro and Chapel Hill this year showed less than what the budget is because of the distribution of that State amount.  He noted an increase in indirect charges for Transit expenses, and said that these are transfers made to the General Fund to cover services they received. 

Mr. Godding pointed out that the Department continues to have difficulty filling all of its authorized positions.  He said they operate with between 6-12% of positions vacant, and have, as a result, part-time persons working full time and full-time persons working overtime, which causes operating costs to increase.  He added that the Department is trying to find ways to cover that gap.  Mr. Godding stated that fuel costs have also contributed to the increase in the operations budget.

Mr. Godding reported that the Department did not expect any changes in fares or service levels.  He said that they were waiting to receive contracts back on the Carrboro Plaza lot, and that funding had been approved for the Jones Ferry Road lot.  Mr. Godding said that the Department needed to have a plan approval from the federal government, and that the lot probably will be built in one year if it receives all local approvals.  He added that NCDOT was including a request for $2-million in funding next year for the 15/501 North park/ride lot.

Mr. Godding reported that the Department should get delivery of three small Faircloth buses within 60 days.  He said they have been moving cautiously on purchasing hybrid electric vehicles, noting that it is a promising new technology but may be too costly for the grant funding of $850,000.

Mr. Godding said that the Memorandum of Understanding with UNC and Carrboro regarding transit issues should be updated to reflect changes in the population base.  He said that the Operations Division needs an additional supervisor, at an estimated cost of $33,000, and that the Maintenance Division needs an additional service attendant and mechanic. 

Mr. Godding pointed out that Parking Services includes off-street parking on the Rosemary Street Deck and on-street parking in the Town Center.  He said that Parking Enforcement includes monitored, metered parking, controlled no parking zones, and patrolled residential permit zones.   Off-street lot revenues are contained in an Enterprise Fund, he said, and on-street revenues are part of the General Fund.   Mr. Godding surmised that the decline in revenues from Lot #2 was due to Spanky’s Restaurant being closed during renovations.

Mr. Godding noted that on-street enforcement revenues were off even though citations were up. He said that the $135,000 in additional revenues that he had estimated last year had been incorrect because of flawed calculations and other factors that lowered the number of citations issued.  Mr. Godding noted that there had been no significant changes in parking expenses.   He added that net revenues should be generated if Lot #5 is reconfigured as an attended lot and staffed for evening hours.   He suggested that the Town rethink what it wants to do with that lot, adding that the most efficient use would be to accommodate short-term parkers.

Mr. Godding said that the Residential Permit Program was working well.   He said that he would like to add one more scooter, which would improve productivity, and to replace the meters with electronic ones, which were less troublesome and gave audit capability.   He also suggested that Lot #2 be resurfaced.

Council Member Foy recommended trying to get replacement meters that accept dollar bills.  He also suggested pursuing the “fare free zone” concept.  Mr. Godding noted that this would cost the three systems the $1-1/2-million that they now receive in revenues.  He said that the idea is under negotiation and that the University is particularly interested in pursuing it.

Council Member Foy asked how the University’s share of the net cost would be figured.  Mr. Godding replied that it would be on a population formula.  Council Member Foy suggested that it also include part-time temporary workers at the University.

Council Member Brown inquired about the hybrid bus and asked if there were other alternative fuels under consideration.  Mr. Godding replied that the only alternative to diesel fuel is gasoline.  He noted that the cost of maintaining and operating natural gas is high, adding that methanol and ethanol have not proven to be attractive and dependable alternatives.  Mr. Godding said that electric vehicles look promising, but the battery technology and the weight and size of the vehicles currently limits their travel range. 

Council Member Brown inquired about college communities where students had voted to pay for buses out of student fees.  Mr. Godding replied that several colleges had done this.  He added that the plans were to recover some of these costs by raising student fees and that UNC’s Student Government had indicated a willingness to do this.  

Council Member Evans said that the University had recently determined that $30 per year would pay for a fare free system.  She added that if fare box revenue is $1-1/2-million, then the Town would make up a little less than half of the amount by means of a transportation tax, for example.  She inquired about the Bible Church’s suggestion to share a park and ride lot.  Mr. Godding explained that many of that church’s requirements would make the shared project unfeasible.  Mr. Horton added that the church had asked the Town to assume too much of the cost and had asked for conditions that made it unfeasible. 

Council Member Evans noted that the church had proceeded on its own to add impervious surface.  She suggested continuing to make an effort to pursue that idea.  Council Member Evans also asked if there had been an increase in demand for E-Z Rider service due to the increase in the senior population.  Mr. Godding replied that there had been, noting that the Council had authorized an increase in personnel to accommodate that.

Council Member Evans asked Mr. Godding if he had seen any effects from increasing meters to two hours at the 100 block of Franklin Street.  Mr. Godding replied that it probably was a contributing factor to the reduction of citations issued.        

Council Member Strom asked why it had been difficult to fill vacant positions.  Mr. Godding explained that because of the less than two-percent unemployment rate they were not getting applications from people who meet the minimum criteria, such as having a good driving record and passing drug tests.  Council Member Strom asked if the wage scale was part of the problem, and Mr. Godding replied that it was.  Council Member Strom asked Mr. Godding to bring a proposal to the Council regarding the wage scale that they should consider to maintain a full staff.  Mr. Godding said that he could do that, but noted that salaries are set in consideration of the market in this area.

Mr. Horton added that the nature of the operation and the rules that apply to new employees also deter applicants.  He said that those who have no seniority end up having the less desirable shifts and pieces of shifts.  Mr. Horton pointed out that the conditions and hours make it difficult to compete in this low unemployment market even though the Town pays a competitive rate.  Mr. Godding added that 20-30% of employees were on split shifts.  He pointed out that this is not an attractive schedule.

Mayor Waldorf, noting that this issue had come up before, suggested that the Town look at some creative ways of addressing it, even if spending money is the only way to solve the problem.  Mr. Horton suggested changing the operating rules, so that seniority is not the sole factor in assignment of work.

Council Member Bateman asked what the penalty would be for residential permit violations.  Mr. Godding replied that it would be a $40 violation.  Council Member Bateman asked how collection of those fines were going.  Mr. Godding replied that it was down about 20%.  Council Member Bateman asked whether the Transportation Department had a summer apprenticeship programs for at-risk youth imbedded in its budget request.  Mr. Godding replied that they had done so in the past but there were regulations restricting what they can do.  He said that he has no problem with the concept, adding that the Department had in the past paid a $1,000 stipend.  Council Member Bateman noted that the Council had asked departments to make a more concerted effort this summer.  Mr. Horton pointed out that the key was to let school counselors know about these opportunities.  He said that the Town has a standing offer to the schools regarding this.

Council Member Ward asked if the free fare system would come with expanded service or just maintain what now exists.  Mr. Godding replied that there had not been any current discussions of expanded service but that the University had shown interest in this in the past.  

Department of Public Works

Public Works Director Bruce Heflin said that a major issue for the Department this year had been the weather: record heat in the summer, record rainfall in the fall, and record snowfall in the winter.  He noted that the Town incurred a fair amount of cost because of that, and that it had received some reimbursement from FEMA but none from the town of Speed for help with flooding.

Mr. Heflin noted that the Town has several categories of increasing costs.  One is inflationary, such as the cost of asphalt, fuel, custodial contracts, and other smaller accounts.  He said that the Town is also facing changes in service levels for street repair, increased solid waste volumes, and a potential annexation at the end of next year.

Mr. Heflin pointed out that that the budget request was for more than $9 million, which includes basic services with minimal operating increases.   He noted that there were costs included for fleet replacement and computer acquisition for the Town-wide funding plan.  Mr. Heflin said that the budget request did not include increases for salaries, or tipping fee increases for the landfill, or other such items that are yet to be determined.

Mr. Heflin reported that Management and Support Services was a little more than $400,000, and said that the minimal change suggested for next year had to do with equipment replacement and costs that were previously shared with the Solid Waste Department.  He stated that the Department had previously requested—and still believe that there is a need for—a dedicated position for safety and training in the Department.

Mr. Heflin pointed out that Field Operations—which is comprised of traffic, construction, streets, and right-of-way drainage—is the largest, single division in the Department.   He explained that Filed Operations is responsible for street signs, streetlights, pavement markings, and traffic signals.  Mr. Heflin added that the Division is responsible for street and sidewalk construction and improvements.

Mr. Heflin explained that the Construction Program was responsible for sidewalk and other small-to-medium construction projects, such as drainage, retaining walls, streetscape, and street reconstruction.  He stated the Streets Program is responsible for pavement maintenance, resurfacing, patching, leaf collection, and storm cleanup.

Mr. Heflin noted that the last program under Field Operations is the drainage/right-of-away section, which maintains the storm drainage system, including clearing catch basins, pulling ditches, cleaning streets, and removing pollutants from street surfaces.  He added that the budget was $3.2 million, which includes basic services with minimal changes and few additions.

Mr. Heflin showed slides of areas in Town that need repairs, and noted that the cost of asphalt is increasing.  He said that street mileage had increased by almost 35% over the last ten to fifteen years, but the Department had added only one position.  Mr. Heflin pointed out that with only six people the Department does not have the labor force to maintain the Town’s roads even if it had more money to do so.

Mr. Heflin said that the requested budget for Internal Services was about $1.5 million, 17% of the budget, and noted that the increase in fuel costs had impacted the entire Town.  He indicated the request for additional funds for a Project Manager for buildings-related projects of all kinds, including major building renovation projects and small- and medium-sized repair and enhancement projects.  Mr. Heflin mentioned a possible request for upgrading the lube pit in the fleet maintenance shop.

Mr. Heflin said that the Landscape Division was responsible for maintaining all of the Town-owned grounds, noting that next to sanitation it was the most labor-intensive thing that the Department does.  He explained that the proposed budget was for $1.1 million, adding that there will be some maintenance increases for NC 86 for mowing and plant maintenance.  

Mr. Heflin outlined the responsibilities of the Sanitation Division and said that the requested budget was for about $7.2 million.  He added that there was a significant growth in yard waste collections, and pointed out that the Council had approved some additional positions last year and that new equipment had helped in collections.  Mr. Heflin noted that annexation of Southern Village next year would cause additional expenses, including an additional crew.  He pointed out that the Town was discussing changes in the collection system, and that this would impact the Department if approved.

Mr. Horton asked Mr. Baker to comment on figures in the Equipment Replacement Fund.  Mr. Baker stated that the percentage increase was fairly significant in nearly each division of the Department budget.  He explained that this was due to miscommunication between departments and that the figures would be adjusted downward.

Mayor Waldorf praised Public Works employees for all the natural events that they had successfully dealt with this year.  She added that Public Works was the most under-funded department in Town.  Mayor Waldorf stated that the DPW did much important and hard work, and said that she realized that they were stretched.

Council Member Strom asked for the Department’s views on where the savings would come from in curbside collection.   Mr. Heflin replied that they had just begun their annual analysis of that and that they believe there might be minimal savings the first year.  In about five years, Mr. Heflin said, the Department would achieve its maximum savings, which would be in excess of $350,000 a year. 

Council Member Ward suggested quickly getting curbside collection into the Manager’s overall budget.  He said that there would be potential cost savings and that the numbers look even the first year.  Council Member Ward noted how difficult Public Works jobs were and commented that most people in those positions become worn out and/or injured before retirement.  He asked if the Council was interested in pursuing this aggressively by asking the Manager to include it in this year’s budget deliberations.

Council Member Brown asked if there would be additional cost savings if the Town instituted a can-based pay-as-you-throw system, which would eliminate the expense of purchasing the cans.  Mr. Heflin replied that in most successful systems the citizen purchases or leases the container from the city.  He added that the per unit cost probably would be higher if the Town bought smaller numbers of containers in multiple sizes, adding that the cost would be neutral if the citizens reimbursed the Town. 

Council Member Brown recommended that the Council take these kinds of cost savings into consideration as well as those from waste reduction over time.

Council Member Foy stated that the Council was ready to go forward with curbside collection. He pointed out, though, that the Council should think about the implications to pay-as-you-throw because some choices that may be made regarding curbside collection could limit the choices that may be made regarding pay-as-you-throw.  

Mr. Heflin noted that there would have to be specialized containers if the Town were to attempt a weight-based system.  He added that a system such as Council Member Brown had suggested would change how one would cost out and implement the program.  Mr. Heflin said a bag or tag system, for example, would be container neutral, Mr. Hefflin said. 

Council Member Bateman agreed with Council Members Brown and Foy that whatever system the Council adopts should not lock the Town in so that it would be more expensive if they go to pay-as-you-throw.  She asked if the Council intended to vote on this at the present meeting.  Mayor Waldorf replied that she would like to vote on it, and others Council Members nodded in agreement.

Council Member Evans asked if the collection vessels were color-coded to identify whether it came from Chapel Hill, Carrboro or Orange County.  Mr. Heflin said that they could be.   

Mayor pro tem Pavão asked if this program could be implement in this budget session.  Mr. Horton replied that it was feasible to do so, adding that it would take about six months to prepare the first phase in the first year.  Mayor pro tem Pavão asked how the Town would calculate the required exceptions.  Mr. Heflin replied that they would typically use a figure of about seven percent, which, he said, might now be a bit low.  He said that the containers would be collected by a dedicated route with scooter trucks, and that they could handle about two-to-three percent exceptions, and perhaps even ten percent, though he was not aware of any system with a percentage that high.  Mayor pro tem Pavão inquired about the exceptions, and Mr. Heflin replied that that would be a policy decision by the Council.  Mr. Horton added that exceptions would be liberal and would include those who could not physically do it.

Council Member Wiggins, noting that some elderly people were worried about having to roll out their containers, asked if exceptions would be given through self-identification.   Mr. Horton replied that they would be, commenting that Chapel Hill people are honest.  Council Member Wiggins emphasized that good public relations would be important at the start because senior citizens were very concerned about this program.   

Mayor pro tem Pavão said that one citizen had been concern about the aesthetics of having  “green monsters” along the roads because people might not roll them back.  Mr. Horton replied that had not been the Town’s experience during the pilot program.  Council Member Brown asked if the Town’s waste reduction efforts might make the can obsolete in a few years.  Mr. Heflin replied that they could replace cans with smaller ones if the amount of waste were to diminish.

Council Member Evans noted that most of the Town’s solid waste was generated by non-single-family residences.  She asked how the Town would treat those who create the majority of the waste.  Mr. Heflin replied that the Department had not looked at changes for other segments of the collection stream.  He added that they could do so if the Council directed that.  Mr. Horton pointed out, though, that those who live in multi-family dwellings already have to carry their waste out to the dumpsters.   Mayor Waldorf pointed out that those residents  had been getting a lesser level of service for years. 

Council Member Wiggins noted that curbside collection would improve the conditions for collectors in many ways.  Mr. Horton stated that it would increase the dignity and respect of the job substantially.  He said that he felt embarrassed that the Town was still asking adult human beings, who are not being punished for anything, to go into somebody’s backyard and drag their trash out to the curb to dump it into a truck.  Mr. Horton remarked that the Town’s employees deserve better than that. 

Mayor pro tem Pavão noted that another question that often comes up is how maintenance and replacement of carts would be handled.  Mr. Heflin said that the Department would provide that service, noting that in other cities carts have typically lasted longer than expected.  Council Member Evans asked if all of the Town’s vehicles were equipped for curbside collection, and Mr. Heflin replied that they were.

Mayor Waldorf asked if a majority of Council members were prepared to ask the Manager to bring a curbside collection option, which does not foreclose adding a pay-as-you-throw option, for the upcoming budget.  All but Council Member Brown indicted support.  Council Member Brown said that she wanted to be sure that the Council wanted both systems together. 

Council Member Bateman pointed out that the Council was asking the Manager for only a proposal and was not voting on the issue.  Council Member Bateman added that she would vote for curbside collection with or without pay-as-you-throw.  Other Council members agreed.  Council Member Bateman added that unless she heard something “horrible” about it, she would also vote for pay-as-you-throw.

Mayor Waldorf, noting that this discussion had been going on for years, recommended voting on asking the Manager to bring back a curbside option that can include pay as you throw if the Council supports that.  Council Member Brown suggested changing “can include” to “will include,” but Mayor Waldorf did not change the wording.  The Council expressed support for instructing the Manager to do so.

Council Member Foy asked if there was any benefit to billing other Departments for services that Public Works provides.  Mr. Heflin replied that fuel was charged out to all departments.  He said that some of the costs of building maintenance services were borne by department budgets.  Mr. Heflin added that they have the eventual goal of billing back on work orders on the building maintenance side.  He said that they collect information on costs for each vehicle they work on and report that back to the departments.  Mr. Heflin said that next year they will show those costs in the user department’s budget and will send a bill for services rendered on fleet maintenance.  Mr. Horton added that the primary benefit was that they will show the real cost of a particular service.  The goal, he noted, in adding services each year is to distribute all costs to the source that generates the cost, he said.

Council Member Evans suggested contracting trash collection out for Southern Village and other neo-traditional developments where collection is more complicated.  Mr. Heflin explained that even though he had discussed collection with the developers of Southern Village prior to development, they had neglected to design the alleys in a way that would enable the Town to collect from them.  He said that it was stipulated that residents would bring trash to the curb and that is what Public Works was planning on.

Council Member Evans stated that the Town should endeavor to make the people who live at Southern Village feel comfortable, not the developer.  She said that the people probably would prefer to pay for a contract service rather than bring their trash out to the curb.  Mr. Heflin pointed out that the alleys were not constructed to Town standards and were falling apart, and noted that the Department’s contractor would carry liability.  Council Member Evans suggested thinking about contracting out for Southern Village and Meadowmont or else forgetting about building communities that use alleys.  Mr. Horton pointed out that alleys serve multiple purposes, such as providing access to the rear of houses and to parking areas.

Mayor Waldorf asked if the alleys, which were falling apart, were private drives.  Mr. Heflin replied that they were.

Council Member Bateman praised Mr. Heflin’s chart (which compared street mile maintaining with position allocation), and said it makes a compelling argument for the need to increase the street maintenance crew for next year.

Council Member Evans asked about “tree aprons.”  Town Arborist Curtis Brooks explained that the aprons were part of a drip irrigation system that the Town was interested in trying out on newly planted trees.  Mr. Brooks said the Department was concerned that the aprons would not hold up in public places, such as Franklin Street.  He said that they would be using them in Northern Community Park this year and next.

Council Member Strom asked what it would cost someone to rent a small dumpster for yard refuse.  Mr. Heflin replied that they rent out two sizes, the larger one being ten cubic yards and costing about $12.  Council Member Strom asked if the Department’s knuckle boom truck was having difficulty picking up large loads.  Mr. Heflin replied that, because of the many storms this year, the Town had trouble enforcing the three cubic-yard maximum on loads required by the ordinance.

Council Member Strom asked Mr. Heflin to describe the burden that reviewing new development applications has put on the Department.   Mr. Heflin explained that the Department is one of the key players in development reviews and that it was not uncommon for Mr. Brooks to spend two-thirds to three-quarters of any given week on development review.  Mr. Heflin added that others in the Department spend time on development review as well.

Council Member Ward asked if there had been significant tree replanting at Homestead Park.  Mr. Brooks replied that Homestead Park had lost many of its first year’s plantings, and that replanting and maintaining them would be a Town cost.  Council Member Ward suggested waiting until the fall to plant, since the same thing might happen again.  Mr. Brooks pointed out that it partly depends on the availability of crews to install plant material and on when funding is available.  He noted that the Department had not had the funds to replant in the fall, adding that they would like to have some buffer plantings in place when the park opens.  Council Member Ward commented that the standards and regulations should be more flexible so that the buffer plantings have some relationship to the seasons and to the ultimate success of the plantings.  Mr. Brook said that if they can get it done by March 15^th they would be in good shape.

Mayor Waldorf asked Mr. Heflin which position he would choose to fill if he could fill only one.  He hesitated to answer.  Mr. Horton suggested filling the construction position that was left vacant last year.  Mayor Waldorf asked if that would be a higher priority than streets.  Mr. Heflin said that he would need to reflect on that since they are both very high priorities.

Mayor Waldorf inquired about contracting services out.  Mr. Horton replied that for now they were looking at doing so only for NC 86, but may look at other areas depending on the success of NC 86.

Council Member Wiggins asked if the several areas in Town where people throw trash out car windows had anything in common.  Mr. Horton replied that they did not, but were across the spectrum demographically.  Council Member Wiggins stressed that some people find that more distasteful than trash cans.

Mayor Waldorf and Mayor pro tem Pavão suggested deferring the Legal session and the Mayor/Council/Manager/Clerk session.  Mr. Horton asked to defer the Personnel session because Personnel Director Pat Thomas was on funeral leave.

Council Member Bateman announced that she would have to leave at 5:00 p.m.  Mayor Waldorf noted that she would be leaving a little after 4:00 p.m.

Parks and Recreation Department

Director Kathryn Spatz explained that the chief concept behind Parks and Recreation was play, and that the Department’s job was to make sure that the Town did not lose its “good sense of fun.”  She listed the Department’s facilities, services and events, and noted the services that had been added this year.  Ms. Spatz said that the Community Center was being utilized to its maximum, and pointed out that it was being kept much cleaner than in the past. 

Ms. Spatz pointed out that the Hargraves Center has added many programs, including a Teen Parent Support Group, a Youth Health and Education Program, a Middle School After School Program, and Senior Citizens Programs.  She said that the Center also has added a new athletic program, including Special Olympics.

Ms. Spatz stated that the Department’s Program Marketing Division offers more than 40 new classes, and its Administration Division is the backbone of the program.   She showed the current organization chart and noted that the Department was recommending that funding for the Recreation Specialist be deferred.  Indicating the added Maintenance Assistant position, she pointed out that there was no specific position in place for Teens.  Ms. Spatz pointed out that Marketing could be improved, and stated that the Department needed to work on coordinating Teen Programs with other agencies. 

Ms. Spatz proposed eliminating the Recreation Specialist II to create two Recreation Specialist I’s, at thirty hours a week each - one for special events, and one for teen pottery.  Council Member Bateman asked what the financial difference would be, and Ms. Spatz replied that it would be about $3,000.

Ms. Spatz noted that there was a long list of proposed additions, but highlighted Contract Services for Mainstream and Specialized Programming for Disabilities, and Computer Upgrades.  She referred to a list of programs that the Department plans to target for next year, and pointed out that one goal was, “more time for facility rentals.”

Council Member Bateman, noting that the YMCA was also opening a teen center, asked how much duplication there might be between the two centers.   Ms. Spatz replied that teens tend to move in groups and so it is important to have as many places available to them as possible.  She said that the YMCA’s mission was not particularly inclusive and did not serve an entire population.  Council Member Bateman noted that the YMCA had said there would be no fee charged when they received funding from the Town. 

Council Member Bateman asked if the Department had had better luck with school facilities being open for recreational purposes.  Ms. Spatz replied that it had.

Council Member Strom suggested that the Town begin thinking about using impact fees to offset the cost of some facilities at Parks and Recreation.  He suggested looking at alternatives during this budget cycle for implementing those fees.

Council Member Foy agreed that there should be some way to finance the increased Parks and Recreation activities.  He asked what the Town would have to do to begin using impact fees.  Mr. Horton explained that the staff had been collecting information about that and could bring it back to the Council.  Council Member Foy asked where the funds generated by such a fee would go, into the Parks and Recreation budget, the General Fund, of some other fund.

Council Member Foy noted that we could have an impact fee, for example, that we would apply to the library.  Mr. Karpinos stated that was correct, adding that the Town could not impose an impact fee if a developer already is making Parks and Recreation improvements to his application, such as pool, greenways, a trail or a clubhouse.  Mr. Karpinos added that you cannot require anybody to provide more than the impact that their development is having, if the impact is addressed by the amenities they are providing,

Council Member Brown asked if the Town could charge fees to a development over which the Town has jurisdiction but which is not yet annexed.  Mr. Karpinos stated no.

Council Member Bateman announced that the School Board had requested that the gym at the new elementary school near Erwin Road be community size.

Mayor pro tem Pavão asked if the Department on Aging had been involved with the Senior Citizen Programs at the Hargraves Center.  Ms. Spatz replied that it had.  Mayor pro tem Pavao clarified that Ms. Spatz was requesting someone to deal with teens exclusively under the new organization that she was recommending.

Council Member Strom noted that his request was to also look at payments in lieu, along with the fee structures, to see if the Town could improve its payment structure.

Council Member Ward asked what was ahead in terms of maintenance of community facilities.  Ms. Spatz replied that the pool shell would have to be replaced soon at both sites, and the bathhouse at Hargraves needed repairs.  She explained that she was presenting only the operating budget.

Council Member Foy asked what the Council would see on the Master Plan.  Ms. Spatz replied that she hoped the contract would be signed with the consultant and that they could get started on the master plan by mid-March.  She said that it would include specific recommended target goals, community values, and a sense of where the Town should be headed.

Council Member Foy asked whether or not Parks and Recreation had any specific interaction with the Public Arts Commission.   Ms. Spatz replied that they have interaction in conjunction with Apple Chill and other activities.

Council Member Bateman asked Council members which advisory group would be the major advocate for open space, commenting that that issue seemed to be falling through the cracks.  Mr. Horton replied that as a matter of history the Council had been the principal advocate for open space.

Council Member Strom expressed hope that there would be an action plan where the Council would take the lead in looking for open space and other land purchase opportunities.

Library Department

Library Director Kathy Thompson read the mission statement:

·        To provide a collection and services that reflects the interests and demands of the community.

·        To be a center of reliable and current general information.

·        To assist the individual’s pursuit of self-education, research, and creative use of leisure time.

She reviewed the library’s key services:

·        A General Collection, including adult and children’s books, large print materials, audiovisuals, magazines and newspapers, microfilm/electronic format.

·        Reference Services, including Internet stations and on-line databases.

·        Children’s programs.

Ms. Thompson took the Council through an exercise in how to use the new reference database, and demonstrated how they could use it in their work.  She noted that the Library intends to institute a Story Hour for children in public housing.  She said it also plans to reach out to the Hispanic Community.

Ms. Thompson referred to a handout that compared the Chapel Hill Public Library with other libraries.  She noted that Chapel Hill exceeds the State average in every area.  Ms. Thompson stated that the $419,100 requested for 2000-2001does not include a grant that the Library hopes to receive this year.  She then listed key Library Department financial issues:

·        An eight-percent increase for library page personnel, from $5.77 to $6,25 ($2,350 per year), to allow the Library to compete for new hires in a competitive market.

·        Replacement of a six-yea- old microfilm reader/printer ($7,140).

·        A three-percent increase ($7,230) of the materials budget, paid with Orange County’s 1999-2000 increased support of $10,700.

Ms. Thompson proposed adding 7.5 support staff hours to an existing part-time permanent position to handle duties currently performed by the Public Services librarian.  She said that this would cost $6,400 per year.

Council Member Foy expressed support for increasing the pages, noting that $500 was the full cost.  He asked if there was a way to measure use of library services by adults versus children.  Ms. Thompson replied that the library had tracked just about every aspect of its services and that this figure had been compiled in relation to both State and national statistics.

Council Member Wiggins commended the Library Department for its high ratings.

Finance Department

Finance Director Jim Baker said that the Department’s primary mission was to provide financial and technological oversight and direction to help the Town to make the best possible use of its assets.  He outlined the key services provided by the Department:

·        Provide support for the budget process including an accurate and informative budget document.

·        Oversee Town purchasing and contracts.

·        Monitor the Town’s fiscal position and provide for appropriate investments and borrowings.

·        Efficiently provide accurate and informative financial records.

·        Provide the structure, equipment, software, and support for staff, citizens and other interested parties to use Town information efficiently within a secure environment.

Regarding the final service, Mr. Baker pointed out that the Town had received the Certificate for Excellence in Financial Reporting each year for a number of years.

Mr. Baker stated that the Finance Department had accomplished staying within the budget guidelines this year.  He noted the slight increase in the Personnel request, and explained that it was due to the full-time computer analyst’s position being funded for only nine months last year.  He noted that a slight increase in the Operations Budget would be offset by a slight decrease in the Capital Budget.  Mr. Baker listed the key services that were going well:

·        Budget preparation and administration

·        Purchasing and contracts oversight

·        Cash, investment, and borrowing oversight.

·        Provision of accurate and informative financial records.

·        Centralized acquisition of desktop computers and servers.

Computer Systems Specialist Bob Avery explained that the Town network involved about 250 computers and about 20 servers, which require extra attention to keep up.  He said that these servers provide services for the database systems and for communications, such as E-mail and web services.  Mr. Avery noted that the Town had about 650 employees on a full- and part-time basis and that more than 400 of them have active E-mail accounts.  He explained that the General Fund maintains the majority of the 240 desktops. 

Mr. Avery characterized most of the expenses as maintenance and upgrades.  He said that the budget included Capital purchases for servers so that they could upgrade some of the aging ones to be more in tune with what is needed to support the software systems they are putting in place.  Mr. Avery explained that the Town had tried to purchase software through the State licensing program, so that they could keep it current and gain some advantage in cost.  He said that the Town would bring all of its desktop systems up to a common standard over the next two years.  Mr. Avery noted that costs for general supplies and training would rise because of the many changes and upgrades in hardware and software.

Mr. Avery then listed the key services that could be improved:

·        Computer support services to staff.

·        Network connection capacity for remote department sites.

·        Workflow capabilities of the network.

·        Information available to citizens via the Town’s web site.

Council Member Evans asked if the Department had tracked the percentage of income earned on the Town’s idle money.  Mr. Baker replied that the Town was earning 6¼% based on an agreement with First Citizens Bank that it pays the Town a State fund CD rate, which is higher than alternative investments.  Council Member Evans asked how much idle money the Town had.  Mr. Baker replied that in January it was about $21 million, but that it depends on the time of year.  Mr. Baker added that over the course of a year it earns a little more than half a million dollars in interest for all the funds and all the cash that the Town has. 

Council Member Foy noted that GTE was providing alternatives to the ISDN line.  Mr. Avery explained that the Town was also looking at something called SDSL, from Blue Star Communications, which is a high-speed, cost-effective option to the ISDN.  He said that they are looking at a service called Frame Relay, which Bell South offers.

Council Member Strom recommended revisiting the privilege license system and determining what the possibilities are for revenue if the Town goes to a revenue-based privilege license system.  He suggested that the Department think about how the rental privilege license structure, which was presented at a work session on licensing, might apply in Chapel Hill.

Council Members Wiggins and Evans asked for clarification on what the privilege license system would be and to whom it would apply.  Mr. Baker replied that it was basically a “quirky law,” noting that the Council had adopted an ordinance that allows the Town to collect a privilege license on all businesses subject to the constraints of the State statutes.  He explained that State statutes prescribe a maximum fee that can be collected by cities and towns for most businesses.  Mr. Baker said that the Town had about 1,604 businesses that it collects a privilege license from, about two-thirds of which fall within schedule B, where the maximum fee applies.  He stated that those fees range from $10 to about $100.

Mr. Baker explained that there is a provision in the State statute that allows the Town to implement a fee based on gross receipts.  He said that the fee must be limited to something within the schedule B category, adding that the other one-third fall into a miscellaneous category and that the Town charges them a $10 fee.   Mr. Baker added that dividing the Town’s revenue by the number of business in Town shows that the fees average $20 to $30.  Mr. Horton remarked that there may be ”an opportunity to do some harvesting here,” and Council Member Strom replied that he hoped it would be “a bumper crop.”

Council Member Brown asked how much it costs to bill them and if the Town recovers costs.  Mr. Baker estimated that the Revenue Collector spends about 10-15% of her time doing this.  He added that it is easier now than it was before computers. 

Mr. Horton stated that he had answered a question incorrectly during a previous meeting.  He had said that he would bring information about annexation on March 20, which is correct.  He pointed out, though, that he now understands that he had been asked when the staff would bring additional information about the annexation of Southern Village, specifically.  Mr. Horton said that the staff would try and bring that information by the end of March or the first part of April.

The meeting was adjourned at 5:07 p.m.