SUMMARY MINUTES OF A WORK SESSION

OF THE CHAPEL HILL TOWN COUNCIL

WEDNESDAY, JUNE 13, 2001, AT 4:30 P.M.

 

Mayor Rosemary Waldorf called the meeting to order at 4:00 p.m.

 

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

 

Staff members present were Town Manager Cal Horton, Assistant Town Managers Sonna Loewenthal and Florentine Miller, Town Attorney Ralph Karpinos, Assistant to the Manager Bill Stockard, Finance Director Jim Baker, Human Resources Director Pat Thomas, Fire Chief Dan Jones, Police Chief Gregg Jarvies, Transportation Director Mary Lou Kuschatka, Parks and Recreation Director Kathryn Spatz, Library Director Kathy Thompson, and Town Clerk Joyce Smith.

 

Item 1 - Human Resources Issues

 

Mayor Waldorf urged Council members to come to an agreement today so that the remaining issues could be placed on the June 25^th agenda for adoption.  Mr. Horton pointed out that the Council had been given a revised working budget that showed additional possibilities and the effects on the tax rate.  He explained that the staff had added the following information: 

 

·        There might be additional transit assistance from the State, which would increase revenues in the Transportation Fund by $88,000 (.22 cents in the tax rate);

·        There had been a request from Carrboro that Chapel Hill consider funding a share of the "F" bus route extension, which would cost the Town about $20,000 (.05 cents on the tax rate);

·        The Town had received notice from Orange County that the landfill tipping fee will be increased $3.00, which will cost $25,000 (.06 cents on the tax rate); 

·        The staff had deleted funding for the construction management position from the Capital Improvements Program, which saved $65,000 (.2 cents on the tax rate). 

 

Mr. Horton noted that if all of those changes were endorsed by the Council and added to those that they had considered earlier, it would result in a net change on the proposed tax rate that would be 2.5 cents lower, resulting in a tax rate change of 2.7 cents.

 

Regarding the "F" route, Council Member Evans noted that the transportation agreement states that the participant who requests additional service pays for it.  She asked if Carrboro's request meant that this agreement has been changed.  Mr. Horton replied that the Council could decide whether or not to agree to Carrboro's request.  Council Member Evans asked if Carrboro could be expected to reciprocate.  Mr. Horton replied that he had suggested that there might be an occasion in the future when Chapel Hill would ask for the same kind of treatment.

 

Council Member Evans said that she had read that the Robertson Scholars Program was going to pick up the cost of transit between Duke and Carolina.  Mayor Waldorf explained that that would be for new, additional transit.  Mr. Horton agreed.

 

Council Member Wiggins inquired about the construction management position.  Mr. Horton explained that the Town Council had challenged the staff to find a way to perform that function without additional funding in the budget, and they intend to do that.

 

Recommended Pay Increases

 

Human Resources Director Pat Thomas explained that although none of the other local government boards had finalized their budgets, they had all recommended reducing the average pay increase.  She said that Carrboro had recommended a reduction from about 7% to about 5.5%, Durham had recommended a reduction from 7% to 6%, and Chapel Hill was recommending 5.57%.  Ms. Thomas, referring to the chart showing the effect of recommended pay increases for employees at various points in the Pay Plan, noted that all employees have the same percentage because the same policies apply to all.

 

Council Member Bateman asked what part of the "exceeds expectations" category is so high that it yields the average merit increase of 4.5%.  Ms. Thomas replied that all employees would get 4.5%, even if every one of them were rated outstanding.  For this sample, she said, the staff had picked numbers that might work based on the average ratings.  Council Member Bateman asked if employees were rated in relation to each other or against the standard.  Ms. Thomas replied that it was against the standard.

 

Mayor pro tem Pavão advised Council members to accept the Manager's recommendation, noting that the plan had been working and that the turnover rate had been reduced.  He argued that any changes the Town made now would have to be made up in the long run. 

 

Council Member Evans agreed with Mayor pro tem Pavão.  She inquired about the cost of the consultant.  Ms. Thomas replied that the consultants' fees had been about $30,000 the first year and $50,000 last year.  Council Member Evans then commented that it would be unfair to change the Pay Plan each year since employees had specifically wanted to know what their expectations could be.

 

Council Member Kevin Foy said that he did not want to dismantle the work the Council had done to implement the Pay Plan, but noted that there was flexibility within the plan itself.  He pointed out that he was the one who had requested Option Six under Item 1b, recommending an average of 4.5% for employees below the job rate and 3.78% for employees above the job rate.  Council Member Foy said that this did not seem destructive of the Pay Plan and could be a compromise that puts reasonable increases in place.  Ms. Thomas pointed out that Council Member Foy was referring to the fifth priority on the second page of the report on Option Six.

 

Council Member Bateman commented that not totally funding what the Manager had recommended did not mean that the Council did not value the Town's employees.  She expressed support for Option Six, noting that the Town Council had a responsibility to taxpayers as well.

 

Council Member Ward agreed that the budget should "reflect the fiscal landscape of the day," and expressed support for priority five of Option Six.  He noted that this would not dismantle the Pay Plan, but would cut it back somewhat to reflect the Town's difficult financial situation.

 

Mayor Waldorf stated that a reasonable suggestion would be to take option three and add the Manager's suggestion to delay implementation of the adjustment for one month.  She noted that doing this would save about $220,000. 

 

Council Member Wiggins said that she supported the Manager's recommendation because it would draw high-quality employees.  She added, though, that she was willing to look at the suggestion to go with option three with a one-month delay in implementation.

 

Mr. Horton commented that the Town would be better off to take some delay and preserve as much as possible of the basic recommendation.  He added that he would endorse the compromise position that Mayor Waldorf and Council Member Wiggins had described if the Council feels it must cut costs in this area.  Mr. Horton also noted that the Council could instruct the staff as to how much it wanted to save and the staff would arrange the implementation to accomplish that.  He said that delaying pay increased one month would save about $80,000. 

 

Council Member Wiggins asked what kind of delay would be necessary to reach the savings of $272,200 that would be achieved in priority five of Option Six.  Mr. Horton replied that they would probably reduce the pay range slightly, maybe 1/4 of a percentage point, and then move the implementation back towards December.

 

Mayor Waldorf noted that Council Members Bateman, Foy and Ward support option six, Mayor pro tem Pavão and Council Member Evans support the Manager's recommendation, and that she and Council Member Wiggins had suggested a compromise position.

 

Mayor pro tem Pavão agreed to go with option three.

 

Mayor Waldorf said that the Council had reached an impasse and would not get the necessary five votes to pass this budget.  She suggested moving on to the other items and taking the issue up again after Council Member Brown arrives.

 

Item 2 - Parks and Recreation Issues

 

Parks and Recreation Director Kathryn Spatz explained that the two papers before the Council were responses to their specific questions regarding citizens with disabilities.  She explained that Orange County runs an impressive Special Olympics program, but pointed out that the position for Special Populations programming was vacant.  When staffed, she said, this program had run about two field trips a month for special populations.  Ms. Spatz said that Carrboro had a person responsible for all Special Populations programming and that a portion of that person's time goes toward programming for people with disabilities.

 

Council Member Bateman recommended that the Town fund the Special Populations Coordinator position.  She described situations where individuals with special needs would benefit by such Town services.  Mayor Waldorf asked Council Member Bateman if she was advocating for making the part-time position a full-time one so that the person could address other needs as well.  Council Member Bateman replied that it should be a 37-1/2 hour a week position.

 

Mayor Waldorf asked how much the position would cost.  Ms. Spatz replied that with benefits it would be $40,200, including training and supplies.  Council Member Bateman asked how much would be left over from the summer camp allocation.  Ms. Spatz replied that she was not certain but it probably would be in excess of $8,000.

 

Council Member Ward asked Ms. Spatz what she thought about the idea of hiring a full-time person.  She replied that there should not be an expectation that the Department would then "hit the ground running" and offer many new programs within the first few months, but that they would be able to do much more than they are doing.  Council Member Ward said that he fully endorsed Council Member Bateman's suggestion to make this a full-time position.  He added that this population had been underserved for too long.

 

Mayor pro tem Pavão agreed that the position should be filled and that it had been overlooked for too long.

 

Council Member Wiggins also agreed, but asked if there was any support on the Council for asking the Manager to reallocate funds from a lower priority program rather than increasing taxes.  She suggested that the Manger look Town-wide for resources to fund this position.

 

Mayor Waldorf commented that she was not willing to commit to that principle without hearing first from the staff.  Council Member Wiggins said that she had worked in organizations where policy makers had determined priorities and had directed the staff to carry them out without first asking the staff for their opinion.  She argued that reallocation according to priorities was a well-used and acceptable management practice.  Mayor Waldorf commented that this might mean laying off some other Town employee.  Council Member Wiggins responded that it did not necessarily mean that, but means that people have to work hard with the resources they have.

 

Council Member Foy agreed with Council Member Wiggins's suggestion, as long as it meant that the position would definitely be funded.  Council Member Wiggins replied that she was in favor of adding the position even if it meant adding to the budget, but that she was trying to point out that the Town does not have to add to the budget in order to fund the position.

 

Council Member Evans asked if this would mean laying someone off to hire someone else.  Council Member Wiggins replied that laying someone off was not the only option and that there usually is an opportunity to do otherwise.   She added that many department heads cope with reallocation without ever laying people off. 

 

COUNCIL MEMBER FOY MOVED THAT THE TOWN FUND THE PARKS AND RECREATION DEPARTMENT'S SPECIAL POPULATIONS POSITION AND THAT THE MANAGER FINDS RESOURCES TO FUND IT THROUGH REALLOCATION OF OTHER SOURCES.

Mayor Waldorf clarified that this would be Town-wide and not just within the Parks and Recreation Department.

 

MAYOR PRO TEM PAVÃO, AFTER VERIFYING THAT THE POSITION WOULD BE FUNDED ONE WAY OR THE OTHER, SECONDED THE MOTION.  THE MOTION WAS ADOPTED UNANIMOUSLY (7-0).

 

Mr. Horton commented that it is easier to search for resources than to find an open position that can be eliminated.  He said that he respected the Council's duty to set priorities and that the staff would always try to find a way to meet those priorities.  Mr. Horton agreed that this makes good business sense and that it was not disruptive to operate in this way.   

   

Item 3 - Other Issues

 

3.a - Parking Services Options for 2001-2002.

 

Mr. Horton explained that the Council had asked the staff to determine whether the Town's policies were generally consistent with UNC policies regarding parking fines.  He pointed out that the way the staff thinks about fines is a little broader than what may have been envisioned by the Council member who brought up the issue.

 

Council Member Evans stated that she had inquired about this last year when she was curious about ways in which the Town might bring in new revenue.

 

Mayor Waldorf commented that she receives more letters from citizens who do not like the fines they were assessed and the vigilance with which they were ticketed than on any other issue.

 

Council Member Foy ascertained that number six (counterfeit/altering permit) and number seven (obtaining permit through unlawful means) were not frequent violations and had, in fact, hardly ever happened.

 

Council Member Bateman asked how much revenue fines currently generated.  Finance Director Jim Baker replied that the Town was budgeting $320,000 for parking tickets themselves and $75,000 for fines.

 

Council Member Evans expressed the hope that there would not be the same high hourly rate on the new parking meters on the west end of Town.  Mr. Horton replied that the staff would not ordinarily recommend anything other than uniform rates throughout the business district, but could lower those rates if the Council directed that.   Council Member Evans urged Council members to keep an eye on that area.  She also encouraged the staff to add Graham Street to the list.

 

Mayor Waldorf asked the staff if there was anything that they would advise the Council to do in terms of the budget.  Referring to the agenda materials, Transportation Director Mary Lou Kuschatka noted that numbers two and three were permits that the Town currently does not issue. She said that implementing number three would add efficiency by allowing contractors to park without having to bag the meter.

 

Council Member Ward said that he supported recommendations one through six, and was also in favor of changing the Town's fines to reflect the University's fines where the Town's were lower.  Council Member Bateman agreed.

 

Mayor Waldorf asked for the staff's opinion.  Ms. Kuschatka replied that the Town probably had been undercharging for storage of towed vehicles.  Mr. Horton stated that Council Member Ward's recommendation made sense.

 

Council Member Foy expressed support for that recommendation as well.

 

Council Member Evans said that she did not want to do anything that would unilaterally hurt the Downtown business district, pointing out that one does not get ticketed when shopping at New Hope Commons.  She agreed, though, with the suggestion to make the Town's meter charges match the University's.

 

Mayor Waldorf ascertained that nothing in the package suggested that the fine for being at an expired meter would go up.  She expressed support for Council Member Ward's proposal.

 

Mr. Horton said that the staff was looking into adjusting rates to discourage students from parking Downtown rather than using the bus.  He said that the staff would bring those recommendations to the Council in the fall.

 

Noting that Downtown businesses want turnover, Council Member Ward said that the Town does monitor cars that are parked all day on Franklin Street.  Mr. Horton explained that stimulating turnover at the parking deck was the more difficult problem.  

 

3.b - Carrboro Request Regarding "F" Route.

 

Mr. Horton noted that the "F" route is one that primarily serves Carrboro, and the staff would not ordinarily present this item for the Council's consideration.   He explained that the rule was that if one of the bus system participants, that is, Carrboro and the University, requests additional service the Town would provide that with the understanding that the requestor would pay the full cost for the first year.  If the service then meets ordinary operating standards, Mr. Horton explained, it could be continued with all partners sharing the cost.  If it does not meet those standards, he said, then it can be continued with the requesting partner continuing to pay the full cost.

 

Council Member Foy explained that a member of the Carrboro Board of Aldermen had commented that it seemed fair to them for Chapel Hill to help pay for the "F" route since it serves Chapel Hill as well.  He asked the staff to explain the facts.  Ms. Kuschatka replied that the extension would go from the Colony Woods section of Chapel Hill through the University and on to Carrboro and McDougle Middle School.  Council Member Evans inquired about ridership.  Ms. Kuschatka said that it was a substantial and healthy route. 

 

Council Member Ward asked if a route that serves all partners equally was unique.  Ms. Kuschatka replied that this was the only route that served all three.  Noting that the University had agreed to help fund the "F" route if Carrboro would, in turn, share the cost of the "S" route, Council Member Ward asked for more information about the "S" route.  Ms. Kuschatka replied that the agreement involved expanding service to the park and ride lots until 8:00 p.m.  She said that the University was giving Carrboro the option of paying 16% of the "S" route in return for the University paying 39% of the "F" route.  This would mean that Carrboro would pay $29,000 rather than $45,000, Ms. Kuschatka explained.

 

Council Member Bateman said that this seemed like a reasonable request given that the "F" route serves all three entities equally.  Council Members Evans and Ward agreed.

 

Mayor Waldorf agreed to support it, but with an acknowledgement that the Council was not exactly following its own rules.  Mr. Horton suggested that the Council authorize Mayor Waldorf to reply to Mayor Nelson's letter with a statement that the Council is willing to do this because of the special circumstances but does not want it to reflect any change in the fundamental policy.  Council members agreed.

 

Council Member Ward suggested that the letter also say that Chapel Hill might initiate a route that would serve Carrboro equally and give them an opportunity to return the favor.  Council members agreed to that as well. 

 

Ms. Kuschatka added that there would be meetings in the fall to discuss how to pay for transit services in the future.  Mr. Horton noted that Ms. Kuschatka was undertaking a project to revise the organization of staffing for route service.  He pointed out that this was a difficult job, and noted that service will be more efficient and economical when it is completed.

 

3.c - Technology Committee Budget Recommendations.

 

Mr. Horton recommended continuing to pursue the basic strategy that the staff had recommended earlier in the year.  He also recommended taking advantage of opportunities to move ahead during the course of this year, including planning for space, getting employees into the organization, and preparing for the organization change.

 

Council Member Foy asked if these were additional recommendations that went beyond those already included in the budget.  Mr. Horton replied that the recommendation was that the Town continue with the basic plan, which had been put forward, and that the staff continue to make progress on the recommendations of the Technology Committee.  Mr. Horton stated that he was not asking for any more money at this point, but might do so in the course of the year if the revenue picture improves.

 

Council Member Ward asked if there might be a format for the new technology organization other than a new department.  Mr. Horton explained that they were merely taking existing resources and having those report to the Manager, with a person in charge, just like other departments.  He added that the organization would grow regardless of what it is called because it is becoming one of the most important communications functions in the Town's system.  Mr. Horton predicted that it would increase in size until it starts to decentralize back out into operations again.  He pointed out, though, that there would always be a nucleus of people to make it operate.

 

Council Member Ward stated that the technology organization would become easier for him to support over the years if there is justification in terms of efficiency and productivity.  Mr. Horton replied that the staff would become better at measuring and reporting those improvements as time goes on.  He noted the increasing use of email and the Town's website.

 

Council Member Foy noted that it would be difficult for the staff to demonstrate efficiency since improved technology enables the Town to avoid mistakes, which is something that cannot be easily measured.

 

3.d - Report on Potential Use of Community Development Funds.

 

Mayor Waldorf commented Club Nova's application for Community Development funding was not a budget issue for the Council.  Mr. Horton stated that the Council had already indicated that it would make a grant to Club Nova.  Mayor Waldorf asked if the Council had also recommended a grant to El Centro.

 

Council Member Bateman stated that El Centro was receiving a grant from Human Services funds.

 

Continuation of Discussion Regarding Recommended Pay Increases

 

Mayor Waldorf, noting that Council Member Brown had not yet arrived, suggested trying to come to agreement on this issue.   Mr. Horton pointed out that there had not been a gathering of employees at the Council's public meetings and forums, noting he believed that this was the employee’s way of thanking the Council for establishing the Pay System and indicated their trust that the key elements would be kept in tact.  Mr. Horton stressed that their absence did not indicate the employees lacked interest but reflected their confidence in the system. 

 

Ms. Thomas remarked that if Option Six were implemented the Town would be giving the least amount of increase of any local government in the area.  She urged the Town Council to do as much as they can to keep the system competitive.

 

Council Member Bateman noted that not all jurisdictions had yet acted.

 

Mayor Waldorf again recommended Option Three with a one-month deferral, which she estimated would save about $220,000.  Mr. Horton said that the savings would be slightly less than that.

 

Mayor pro tem Pavão agreed "reluctantly" to that proposal. 

 

Council Member Bateman clarified that this would give the staff an average of 4.9% increase, rather than 5.57%.

 

Council Member Evans expressed support for the Manager's recommendation, but said that she would go along with Option Three as a compromise if others would compromise as well.

 

Council Member Foy expressed opposition to delaying funding into the next year.  He said that he supported Option Four.  Council Member Ward agreed with that, adding that he preferred not to delay the increases.

 

Mayor Waldorf summarized that three Council members supported Option Three, with one-month delay, and two Council members wanted Option Four.

 

Council Member Bateman stated that she could not support a raise of more than four percent in the context of the Town's financial situation.

 

Mayor Waldorf pointed out that the Council had not reached consensus.  Council Member Foy suggested asking the two absent Council members (Brown and Strom) what their positions were and determine if there were five votes for one of the options.

 

Council Member Wiggins said that she would rather not see a five-to-four vote.  She suggested that the Council keep working until they come up with something that they can all support and defend.

 

Mayor Waldorf, pointing out that six were in agreement on a dollar amount by which to reduce the Manager's recommendation, suggested that the Council let the Manager and Personnel Director decide how to reduce it.  Council Member Wiggins agreed, adding that those staff members have a better feel for how such decisions affect day-to-day operations.

 

Council Member Foy pointed out that the Manager had already said he would delay it a month.  Mr. Horton replied that this was correct, adding that Ms. Thomas had agreed with that.   He repeated that, of the two options, the staff would recommend Option Three with a month's delay because this would come closer to keeping the Pay Plan in tact.

 

Council Member Foy said that this would mean burying it in next year's budget.  Mr. Horton agreed that each year the Town pays for a portion of the prior year.  He noted that this is unlikely to change unless inflation stops.

 

Council members could not reach agreement, and Mayor Waldorf agreed to contact Council Members Brown and Strom to obtain their input.

 

Mayor Waldorf inquired about the status of the tax rate.  Mr. Baker replied that the Council had not made any changes that affected it, so it would be a 2.7-cent increase, which included the $220,000 pay reduction.

 

The meeting adjourned at 6:01 p.m.