SUMMARY MINUTES OF A WORK SESSION

OF THE CHAPEL HILL TOWN COUNCIL

WEDNESDAY, FEBRUARY 26, 2003 AT 4:00 P.M.

Mayor Kevin Foy called the meeting to order at 4:00 p.m.

Council members present were Flicka Bateman, Pat Evans, Ed Harrison, Mark Kleinschmidt, Jim Ward, and Edith Wiggins.

Council Member Dorothy Verkerk was absent, excused.

Council Member Bill Strom arrived at 7:09 p.m.

Staff members present were Town Manager Cal Horton, Assistant Town Managers Sonna Loewenthal and Florentine Miller, Assistant to the Manager Bill Stockard, Police Chief Gregg Jarvies, Fire Chief Dan Jones, Information Technology Director Bob Avery, Planning Director Roger Waldon, Finance Director Jim Baker, Deputy Fire Chief Robert Bosworth, Police Major Tony Oakley, Human Resources Director Pam Eastwood, Assistant Finance Director Kay Johnson, and Acting Town Clerk Sandy Cook.

Item 1 - Police Department

Police Chief Gregg Jarvies praised the members of his Department for the outstanding work they had done this year.  He told Council members that Department employees had truly appreciated the recent pay raise, noting that 95% of them had come to work the day after the ice storm.

Chief Jarvies predicted that revenues would be slightly higher than shown this year because of a couple of grants the Department should receive during the next four or five months.  He said that they would continue to aggressively pursue grants, particularly in the areas of technology and homeland security.  Chief Jarvies pointed out that the School System would provide funding for the five school resource officers and that the Department had begun the process of transferring responsibility for the $30,000 school crossing guard program to the School System as well.  Chief Jarvies projected a 0% increase in his operations budget, adding that the Department would continue to improve services through ingenuity and creativity.  

Chief Jarvies reported that major crimes (homicide, rape, larceny, robbery, and break-ins) had decreased by 22% from last year, reflecting about 400 fewer crimes.  He reported success for the Business Watch program, which he said probably was a significant factor in the 51% reduction in commercial break-ins this year.  Chief Jarvies said the Police Department averages about 18 hours of Downtown foot coverage during the week and 14 hours per day on weekends.  

Chief Jarvies noted that the security monitor program was being revamped.  The Department had been considering contracting some of those services out to security firms, he said.  He reported that traffic enforcement initiatives had remained relatively constant.  When staffing levels go back to normal, Chief Jarvies said, traffic enforcement will be one of the first initiatives to get attention.  He explained that the Department would continue to concentrate on high speed and high-risk areas, such as the business district, residential areas, and school zones.

Chief Jarvies stated that the Department was making much progress in the Northside and Pine Knolls neighborhoods.  He noted that the Council had granted the Department $44,000 last year for this objective and he had spent about two-thirds of that to create a community organizer position, currently being held by Northside resident Delores Bailey.  In the two months that Ms. Bailey has been on the job, Chief Jarvies said, she has set up community forums, met with Downtown businesses and merchants, and studied programs in other cities to see what would work for Chapel Hill.  He described Ms. Bailey as "a ball of fire" and said the Department was excited about having such a great liaison.

Chief Jarvies explained that the Department was in the midst of designing a major recruitment and hiring program.  He said they would be advertising much more aggressively and broadly than in the past.  Chief Jarvies discussed a Department website that will allow people to apply for positions online.  He pointed out that filling vacancies would let the Department enhance its foot patrols, training, and traffic control initiatives.  Chief Jarvies noted that the Department would be turning back about $340,000 in lapsed salaries this year.  He asked Council members to help raise Chapel Hill's officers' salaries to the same level as other agencies in the market.

Chief Jarvies reported that the Department's technical capabilities continue to expand.  Police can now map incidents and crime trends using the new Geographic Information System software, he said.  Chief Jarvies explained that this enables them to work backward to trace threats and crimes.  The Department had also been able to use grant money to purchase five more laptops and modems for its police cars, he said.  

Chief Jarvies explained that the Town Manager had asked each department to consider the impact of a 5% cut on their budget.  A 5% cut would equal about $424,000 for the Police Department, he said, and would mean eliminating all non-mandated expenses.  Even then, Chief Jarvies said, they would still have to cut more than $200,000.  These cuts would mean eliminating the Human Services Unit as well as police positions, and would affect Project Turnaround, he said.  Chief Jarvies noted that he would have to cut personnel because the Police Department does not have a capital budget. 

Mayor Foy asked Chief Jarvies to comment on scheduled and unscheduled work on the Police building.  Chief Jarvies replied that the two major projects were to replace the generator, which is in the current Capital Improvements Program (CIP), and to redesign open space into office space, which will be covered by remaining bond funds.  The Department also hopes to renovate the floor and walls in the public lobby, he said, and to separate the entranceway between visitors and others.  Chief Jarvies added that the Department was still working on funding issues to see if they can afford to renovate the lobby.  In addition, he said, they will be adding an automatic swipe card system that will secure the entrances.  Chief Jarvies explained that they hope to have the design work, purchasing, and renovation done by late summer or early fall.

Council Member Wiggins thanked Chief Jarvies for all the good work the Department had done for the Town.  She described the statistics on overall reduced crime as really impressive and asked if the statistics for Northside and Pine Knolls were similar.  Chief Jarvies replied that he thought they were but offered to bring that information back, with specifics. 

Council Member Wiggins inquired about recruitment and retention programs.  Chief Jarvies recommended giving police officers more of a sense of ownership toward their cars.  He also discussed recruiting bonuses, and incentives for those who are bilingual. 

Council Member Wiggins asked what would make the salaries comparable to surrounding agencies.  Chief Jarvies explained that such information would be specified in Human Resources Director Pam Eastwood's presentation later in the week. 

Town Manager Cal Horton also pointed out that the staff would bring a report on pay for all Town operations along with the budget.

Council Member Wiggins requested information on where the officers who had left over the past two years had gone.  She also requested a comparison of their Chapel Hill salaries with those at their new positions.  Chief Jarvies agreed to provide that information.

Council Member Strom praised Chief Jarvies for heading a Department that is proactive and serves the community in such a wonderful way.  He asked, though, why the Department was striving to fill ten vacant positions if crime was down.  Chief Jarvies noted the amount of extra effort required for keeping those numbers down when the Department is short-handed.  He pointed out that this extra effort is somewhat hidden from the Council.  Chief Jarvies mentioned having to shift responsibilities and move officers around.  He said they had been unable to implement some programs and have had supervisors covering two platoons instead of one.  Chief Jarvies stated that being understaffed keeps the Department from having the flexibility it needs in training and stakeouts.  He pointed out that crime rates are affected by a number of factors, and said that crime might get worse next year if the economy does.  

Council Member Strom asked why the ratio of police officers to population was dramatically lower in Cary than in Chapel Hill.  Chief Jarvies replied that Cary does not have as much crime, and their traffic division and community service unit are twice the size of Chapel Hill's.  He pointed out that the types of crimes influence the number of people a police department needs and how much time those individuals must spend on a particular incident.

Town Manager Cal Horton remarked that Cary does not have the concentration of bars and restaurants and clubs that Chapel Hill has.  Most of that community has been recently built, he said, and the homes are large with modern security systems.

Council Member Strom inquired about using the unspent funds.  Mr. Horton explained that the Town budgets for $800,000 in savings each year.  That $340,000 will help the Town reach that level, he said, particularly because Public Works probably will not have remaining funds this year due to the storms. 

Mayor pro tem Evans asked if the Department had looked into letting each police officer have a car rather than sharing them.  Chief Jarvies replied that they were studying this and should have an answer within 30 days.  He said the Council will have that information before making its budget decisions. 

Mayor pro tem Evans asked whether Homeland Security funds would be allocations or grants.  If they are grants, she asked, will applications address the fact that Chapel Hill is a University town.  Chief Jarvies replied that most of those funds would be funneled through NC Emergency Management.  Orange County, the Police and Fire Departments, and the Campus Police have applied jointly for a grant that, if approved, would allow the region to communicate through updated technology, he said.  Chief Jarvies explained that regions with developed plans will be more likely to receive the money when it comes down through the State.

Mr. Horton pointed out that the Town was involved in two key efforts.  One, called SORT (Special Operations and Rescue Team), consists of a 25-member team from Raleigh, Cary and Durham that would rescue people and help restore services following an explosion, he explained.  Mr. Horton added that this same group of partners—plus Durham, Wake and Orange Counties—will also lead a General Emergency Response Program.  He said the area was establishing a group of committees to work on a strategy for obtaining the most Homeland Security funding possible.  Mr. Horton said these committees would also set up an inventory of local resources for improving communications system to allow intercommunications among the emergency response agencies.

Mr. Horton explained that Raleigh had received the original funding for security service enhancement.  By working with them in a consortium, he said, the Town had significantly improved its opportunities to benefit from funding, training, and readiness to respond.  Mr. Horton noted that he was the chairman of that group, and that it was his responsibility to find funding.  He would be asking the Council for a little more money to continue some of the staffing that the Triangle J Council of Governments had provided thus far, he said.  Mr. Horton added that he was encouraged by the excellent cooperation of all governmental units, but he expressed concern about cities not getting the share of funding they need.  By working together as a region, he said, everyone will be much better served. 

Mayor pro tem Evans inquired about the effect of having universities located in Raleigh, Durham and Chapel Hill.  Mr. Horton replied that universities were not recognized in the law in the same way that municipal service providers are since they are typically focused on a much smaller area. 

Mayor pro tem Evans asked if vehicle/license checks were conducted locally or by the State.  Chief Jarvies replied that some are done locally, but the larger ones, particularly at entranceways, are done in conjunction with the Department of Motor Vehicles (DMV) and sometimes with other local agencies. 

Council Member Harrison asked Chief Jarvies if he thought the Town could live with any of the Manager's seven recommended reductions, such as animal control.  Chief Jarvies said that animal control would top his list of expendable services if he had to prioritize.  He added that the Department was looking at how those services would be replaced if they did not renew the contract in July. 

Council Member Harrison determined that contracting with a security firm might not provide cost savings and would not free up sworn officers.

Council Member Bateman asked how many at-risk youth the Department hired last summer.  Chief Jarvies replied it was six to eight.  Council Member Bateman praised that effort.  She then inquired about the Security Resource Officers, which the Town no longer funds, and asked why the Town was not applying for the "Cops In Schools" grant.  Chief Jarvies replied that the Department would have to provide a 25-30% match and that this is a terminal grant. 

Council Member Bateman challenged Chief Jarvies to come back next year and report that he had filled some of the vacant positions with African-American and Latino officers. 

Mayor Foy inquired about the likelihood of filling all ten vacant positions in the next fiscal year.  Chief Jarvies replied that he and his staff were committed to filling all of them. 

Council Member Wiggins expressed concern about retention, adding that she did not blame officers for leaving to obtain better salaries.  She asked when a report would come before the Council and the community about the plan for Homeland Security.  Mr. Horton replied that the staff had already made two reports but would have much more to report by the fall.  He added that there were no secrets with this work—there was nothing the group was doing that it was not reporting.  Mr. Horton explained that they were organizing and pooling resources so that they can work together to obtain the kind of training and special facilities the area will need.  He added that he would bring the matter before the public as part of his regular business to the Council.

Council Member Ward asked about feedback from people who leave the police force.  He wondered if salary was the only problem.  Chief Jarvies replied that during exit interviews officers mention salary and not being able to take the car home.  A couple of officers left to join the private sector, Chief Jarvies said, and some did not want to work shifts.  He explained that those who had left for other police departments had all received higher salaries than they had been making in Chapel Hill.

Council Member Wiggins asked for an explanation of the car issue, noting that officers do not use them for private purposes.  Chief Jarvies explained that being able to take the car home reduces wear and tear on the officer's private vehicle.  

Mayor pro tem Evans asked if any Town police officers had been called for military service.  Chief Jarvies replied that the one active reservist had not yet been called. 

Mr. Horton added that the Town was finishing a survey this week of how many people were likely to be called.  He said that it looked like it could be four or five at this point.

Item 2 - Fire Department

Mr. Horton described Fire Chief Dan Jones as a leader not only in the Triangle but also in the State.   He said Chief Jones had helped to build consortiums to work together to improve security preparations in the community.   Mr. Horton also pointed out that Chief Jones had created "The I-40 Fire Chiefs," a group which has become a key workhorse in the Triangle area on emergency preparations. 

Chief Jones provided the Council with a revised briefing paper, noting that there were a couple of errors in his previous submission.  He said the Fire Department's services had expanded significantly over the past five years and had become much more diversified.  Chief Jones pointed out that the Town Manager had shifted much of the responsibility for disaster preparation and coordination to the Fire Department.

The Department's public education programs were consistently in demand, Chief Jones said, adding that the Department tries constantly to change and improve programs and to offer new elements.  He noted that the Department had become Chapel Hill's first response for environmental hazards.  Since the 9/11tragedy, Chief Jones said, they had been heavily involved in domestic preparedness.  This includes a variety of functions, he explained, from developing plans to working on grants and future team coordination.  Chief Jones reported that they were developing an Urban Search and Rescue (USAR) team for the Triangle area and hoped to have it operating by the end of this year.  He pointed out that it typically takes two to three days to get federal help following a disaster.  Chief Jones said that USAR will be able to sustain operations and perform emergency functions within the first 48-72 hours.

Chief Jones reminded Council members that the Fire Department does not produce revenues, but they are becoming more active in pursuing grants and had received grants from the Fire Act Program.  He said the Fire Department was awaiting guidelines for this year's Fire Act Program grant, which has been more than doubled to $750 million.  Chief Jones said that the Federal Emergency Management Association (FEMA) had been impressed by the Town's grant application and had encouraged the Department to "shoot for the moon."  He noted that most of those are matching grants, so the Department will come back to the Council for a match if they have any success, he said. 

Chief Jones noted a $14,600 difference in the requested operating/capital accounts.  He explained that this was an adjustment that the Department had failed to make in its briefing to the Council.  Chief Jones said that they had met the Manager's request for a 0% increase in the operating budget, noting that they had struggled in the area of rising utility and supply costs.  He stated that the Department had reduced capital spending in order to stay within those guidelines.  They had added some line items to deal with the USAR team, Chief Jones said, because there will be some ongoing costs for replacing and maintaining equipment.  He reported that the Department was negotiating a Memo of Understanding with Raleigh and the other partners.  This will be brought before all four Councils to formalize the partnership and determine how to share ongoing costs, Chief Jones said.  He expressed support for Raleigh Police Chief Fowler's suggestion to break the budget down on a per capita basis. 

Chief Jones explained that a comment about annexation costs was missing from the revised budget because those are calculated each year as separate items.  He expressed pride over the USAR group, noting that personnel were being trained and equipment was beginning to arrive.  Chief Jones stated that joint training was going well.  He mentioned that Durham had been lagging behind, but expressed hope that this would be worked out through the Memo of Understanding.   Chief Jones pointed out that this venture had opened doors to other areas, such as joint training and purchasing ventures.  He predicted that having shared resources and procedures in place will make disaster response and mutual aid go smoother.

Chief Jones reported that the Department's Safety Education and Community Outreach programs continue to be in demand.  He noted that requests had come from towns outside the jurisdiction who want to bring children to Chapel Hill Fire Department tours.  Chief Jones emphasized the need for a full-time training officer to improve competencies, skill base, knowledge base, and the record keeping that goes along with all of that.  He described that as the Department's number one need. 

Chief Jones outlined the need for 18 more operational personnel to put on existing units.  He said that this could be done over five years and that he had recommended hiring three this year.  Chief Jones told Council members that the Department was significantly understaffed in relation to population.  He said that the Manager had challenged him to come back with documentation to strengthen his argument for 18 more employees.  Chief Jones pointed out that there are no national standards and that the amount of staffing is a local decision based on risk assessment. 

Chief Jones stated that he had not been able to get a couple of equipment additions into the budget.  He recommended investing in heart defibrillators for community meeting centers.  Chief Jones also advised adding a sixth thermal imaging camera for the remaining unit.  Regarding the Manager's challenge of a 5% reduction, which would be about $266,000, he said that he would have to reduce staffing by six positions and take squad #33 out of service.  Chief Jones noted that the Fire Department's budget is 85% personnel costs.

Chief Jones defined the Department's strengths as its dedicated personnel who put out the extra effort during difficult times.  He thanked the Council for rewarding the employees with pay increases last fall.  The Department's weakness, he said, was its tendency to overextend.  Chief Jones expressed excitement about the regional opportunities available, such as the Metropolitan Fire Chiefs' Coalition.  He stressed that sharing information and combining resources provides significant potential.  Chief Jones said that the group might become a subcommittee of the Municipal League and this offers more potential for mutual support than the traditional Fire Chiefs Association.

Chief Jones pointed out that this was his 29^th year in the Fire Service.  He thanked Mr. Horton, the Town Council, and the community at large for giving him the opportunity to lead "the best group of emergency service professionals I've ever been with in my career."  Chief Jones described those professionals as talented, bright and aggressive.

Council Member Bateman, referring to a letter she received from a mother concerned about recent fires in clubs, asked Chief Jones to bring back a report on the Town's surveillance of local clubs.  She said that the general public would be interested in such a report.  Chief Jones replied that he, Chief Jarvies, Building Director Lance Norris, and Carrboro's Fire Chief Rodney Murray were planning to meet and put together a seminar, along with the Chamber of Commerce, on safety, regulatory, liability and risk issues for bars and clubs.  He explained that they would invite all of the owners and managers in Town to come and review issues to try and prevent such tragedies from happening in Chapel Hill. 

Council Member Bateman praised that effort, but asked for answers to basic questions, such as: What are specific safety regulations that clubs must follow?  How often are clubs inspected?  And, are inspection reports available to the public?  Council Member Bateman asked Chief Jones to report back on those issues through either a press conference or through the Council.  Chief Jones agreed to do so.

Council Member Wiggins pointed out that none of the items on the "Priority A Department Equipment Add List" were terribly expensive.  She wondered if a civic organization might be willing to support the canine unit.  Mr. Horton noted that all of the dogs had been purchased with private funding. 

Council Member Wiggins remarked that the "Add List" gives citizens an excellent opportunity to make contributions to the Town.  Chief Jones replied that the Department had received some inquiries from groups wanting to make contributions, but it does not happen very often.  He remarked that it probably happens more in smaller communities where the fire department is not supported by taxes. 

Council Member Wiggins wondered about reaching out to the community for this, noting that these would not be high sums for some civic organizations.  Mr. Horton expressed reluctance, since fundraising can be perceived as coercion.  He had discouraged the Department from reaching out, he said, but had encouraged them to be receptive to any contacts.  Mr. Horton noted that the Council had discussed naming opportunities in Parks and Recreation facilities.  He said the Town would also find a way to give credit on donations to the Fire Department, if the Council so desires.

Council Member Ward asked if the $850,000 was the University’s contribution to the State Fire Protection Fund.  Mr. Horton explained that those funds come from the State Fire Protection Fund, which is an appropriation from the General Assembly created from two sources.  One source is levying premiums against all of the participants of the State Fire Protection Fund, Mr. Horton said.  The other source might be some direct assessment of the University, he said, but also stated that he was not certain about the University source.  Mr. Horton explained that the entire fund was subject to cancellation by an act of the General Assembly. 

Council Member Ward described the figure as pretty static, but Mr. Horton pointed out that it had been $300,000 for 17 years and had been raised a few years ago.  Mr. Horton cautioned against directing too much attention to this fund because the State might make it one of those that it withholds.  Council Member Ward agreed that it was appropriate to worry about that but advised against becoming immobilized by that concern.  Mr. Horton replied that the Town was not immobilized and had made repeated requests to the University for assistance in seeking more funding and they had indicated that they would cooperate.

Council Member Strom asked if there had been any follow-up or correspondence from the University in that regard.  Mr. Horton did not recall any. 

Council Member Strom, noting that about 17% of the budget was coming from that source, asked what percentage of the calls for service were.  Chief Jones replied that the University's service demand on the Town fluctuates from year to year, from between 26% to 30%.  Council Member Strom noted that a request to raise that had come with the University’s request for approval of an additional seven million square feet on campus.  Chief Jones explained that the formula originally used had never had a true relationship to the amount of property covered or protection provided.  He pointed out that the State had withheld this money in the early 90’s and had threatened to cancel it.  Mayor Foy clarified that the Town was obligated to provide the service whether the State provides funding or not. 

Council Member Strom verified that the Town had expanded its first responder service to the UNC campus. 

Chief Jones explained that UNC has its own group for code enforcement.  They do consult with the Town regarding hazards, safety issues, and development, he said. 

Mayor pro tem Evans, noting that UNC Hospitals had grown dramatically, wondered about approaching them separately.  Chief Jones said that he was always open to new ideas, but that the Department had talked with the Hospital in the past and the Hospital had chosen to wait and see what the University does. 

Council Member Bateman, pointing out that Mayor pro tem Evans had previously been successful in her approach to the Hospital, recommended that she try it again.  Mayor pro tem Evans agreed to do so.  Mr. Horton pointed out that it was just about time to replace the fire truck at a cost of $50,000.  He commented that the truck would take people in jeopardy out of a building several stories tall.    

Council Member Ward asked if public use defibrillators are still important when the Hospital is only a few minutes away.  Chief Jones replied that there is a 5-20% increase in survival rates when defibrillation is done within the first three to four minutes. 

Council Member Wiggins thanked Chief Jones for his leadership in getting sprinkler systems into sorority and fraternity houses and Granville Towers.

Item 3 - Information Technology Department

Mr. Horton pointed out that the Information Technology Department's service load had grown incredibly.  He reminded Council members that they had wanted to make sure that the Town had better technology to respond to the public and to perform more efficiently.  Mr. Horton said that technology was beginning to have the desired effect of reducing demand and taking some of the load off staff. 

Information Technology Director Bob Avery noted that the Information Technology Unit was still in its first year.  Its mission, he said, was to provide technology resources for effective and efficient operation of the Town's programs and services.  Mr. Avery listed four key services: network services, computer systems, database services, and user support.  He projected operating and capital costs for next year to be about the same as the current year, adding that there would be a slight growth in personnel costs.  Mr. Avery listed services that were going well as network services, computer system procurement, database services, and user support.   The key service that could be improved, he said, was software licensing costs. 

Mayor Foy determined that licensing was a biannual cost, according to the model that the State has adopted.  The Department will have to pay $90,000 for a two-year licensing fee next year, Mr. Avery said, which is the same $45,000 each year that the Town has been spending.  But, the $90,000 will need to be paid up front, he said, so that is an unanticipated expense.  Mayor Foy determined this would be a two-year licensing program that the State has adopted.  He commented that the Town does not know what the renewal cost will be since it is not yet published. 

Mr. Avery explained that the Department has the tools, but not the time, to turn the GIS mapping database into a web-based format for the web.  He noted that he was asking in his budget for an additional person to do web development for GIS-related purposes and to assist in web publishing.  

Mr. Avery displayed slides of what other municipalities had done.  He explained how one can use technology to look at an aerial photo of a particular property along with an overlay of its coordinates and a database. 

Council Member Strom asked how this would differ from the County's website.  Mr. Avery replied that he was not sure whether the County could superimpose an ortho layer on the geographic grid. 

Council Member Ward said that the County could do so and asked if there were things that the County could not do that the Town might want to do.  Mr. Avery commented that there is a time lag when you go over the Internet, and that some of this could be pulled up by the staff and dealt with internally.  

Mr. Avery discussed how the workflow and electronic document management capabilities need improving, especially after the new Town Operations Center is in place.  He discussed possible enhancements that would allow employees and citizens access to information online and perhaps eventually to make online payments.  Mr. Avery noted that this would enhance interaction between citizens and staff.  He added that Computer Maintenance Support needs improving and that a part- or full-time staff person for PC support would relieve those who are having to devote time to this.  Mayor Foy determined that this would primarily be hardware support and that Information Technology Department members had been troubleshooting in other departments every day.

Council Member Ward determined that the Department also trains Town employees in how to use software programs.  He inquired about whether the University might help with that training.  Mr. Avery replied that the Department had used a number of commercial centers for training, but that the University's offerings and timing had not fit in with the staff’s short-range needs. 

Regarding the 5% reduction request, Mr. Avery said that the Department might cut back on a couple of the six planned servers that it would otherwise purchase as part of the normal upgrade program.  They might also defer upgrades of selected software, he said.  Mr. Avery noted that one can never know the true cost of not partaking in something that might have helped.

Council Member Kleinschmidt clarified that delaying implementation of online web access services means deferring implementation of an upgrade or change to a program to a following year. 

In response to a question from Mayor Foy, Mr. Avery said that the Information Technology Department supports 298 desktops and laptops and 41 servers. 

Council Member Harrison clarified that the two figures given represented the estimated cost for each of the proposed new junior employees.  He then commented that the use of fiberoptic lines, when funded, would help the community's overall capacity. 

Council Member Ward inquired about the Information Technology Department's association with mobile units at the Police Department.  Mr. Avery explained that those laptops had been purchased under a grant and were almost due for rotation and replacement.  He said the 298 desktops and laptops include some that were past warranty. 

Council Member Ward asked about the effectiveness of the three-year rotation.  Mr. Avery replied that it had worked well and that most of replacement programs were geared for three-year support.  Those that drag out for the fourth year have a higher failure rate, he said. 

Mayor pro tem Evans asked what the Town does with old computers.  Mr. Avery replied that they sometimes scavenge parts and sometimes continue to use them.  When they are beyond use the Town puts them up for auction, he said, but it does not receive much money for those. 

Item 4 - Planning Department

Planning Director Roger Waldon reminded Council members that the Department has two general areas of operation:  Current Development (including permits, applications, the Land Use Management Ordinance (LUMO) and staffing to about ten boards and commissions); and Long Range Planning (including community development, block grants and housing programs, transportation planning, the Capital Improvements Program, annexation, and a variety of special studies that the Council commissions).  He noted that the Department had many accomplishments over the past 12 months and he applauded the Council for being aggressive on planning issues.  Mr. Waldon noted that other communities often call Chapel Hill for advice on how to do things that the Department and Council had initiated.  He expressed pride in the LUMO and in the Downtown Visualization Model.  

Mr. Waldon pointed out that about 92% of the Department's costs were for personnel.  These are divided almost equally between the two areas of operation, he said.  Mr. Waldon explained that application fees were the Department’s main source of revenue and that this is a volatile revenue stream.  He pointed out that Town fees are higher than other communities but that revenue is lower than expected this year because there are more small applications than big applications.  Mr. Waldon projected that this would change next year because there will be new applications coming in that will have fees associated with them.

Mr. Waldon said the new LUMO is taking up a lot of Planning Department resources.  That, combined with the Council's recent action to adopt a set of goals, he said, was causing concern about how everything will be achieved.  As a result of the LUMO, Mr. Waldon explained, there had been more meetings with citizens and developers than ever before.  Builders and contractors had begun coming into the Planning Department for advice on every project and permit, and some staff members had been working overtime without compensation, he said.   Mr. Waldon described this as a mismatch of resources and objectives, pointing out that the Council had taken on eight new initiatives compared to the one, two or three of the past.  He asked for Council members' help in making decisions about the relationship between resources and the Council's goals and timetables.  Mr. Waldon pointed out that he had not asked for an increase in staff funding.  He asked the Council to consider changing that as they go forward with budget deliberations.

Council Member Strom asked Mr. Waldon if he had thought about changing application fees.  Mr. Waldon replied that doing so would be fairly accomplishable with big projects but very difficult with small ones.  He gave the Creekside development and the Marriott Residence Inn as examples of recent small projects that had taken much work and time.  Mr. Waldon remarked that there was no defensible way to set fees high enough to recapture such costs.

Mayor Foy noted that staff-intensive projects will continue into the future.  It would not be feasible to recover these costs through fees, he said, but perhaps they could be recaptured through inflationary or other minor adjustments. 

Mr. Horton said the staff had collected data and would be coming back with recommendations.  He agreed that an entirely different clientele group was coming into the Planning Department, such as those who merely want to add a deck or a room.  Before enactment of the LUMO, these people would have gone to the Building Inspections Department, Mr. Horton said. 

Mr. Horton pointed out that it would take time for everyone to learn what the new LUMO means, how it works, and what the norm will be.  He said it will be difficult to judge how to fairly assess costs, particularly for smaller projects, and that he would be looking at the data and recommending adjustments.  Mr. Horton added, though, that adjustments probably would be modest.  He said that he will likely recommend working through this for a year before making reasoned recommendations to the Council.

Council Member Harrison commented that the Town would never regret the amount of resources it put into making the community aware of the development process.  He clarified that the Planning Department intended to fill the vacant long range position and asked if that was different from the LUMO staff person indicated in the report.  Mr. Waldon replied that the report assumes that the long range position will be filled.  He said he is asking for an additional LUMO position in current development.

Council Member Bateman asked if Mr. Horton's comments about uncertainty applied to the LUMO position as well.  Mr. Horton replied that perhaps some things could be done on a contract basis to free staff to better respond to LUMO challenges. 

Council Member Bateman wondered if the Council should reexamine its goals and reduce the number of items on their priority list.

Council Member Ward agreed that addressing some of the strains on the Planning Department by reassessing the Council’s expectations might help the Town through this first year of dealing with a new tool.  Mr. Waldon replied that the mismatch between resources and demands could be addressed in either of two ways. 

Council Member Bateman asked whether the staff or the Council should identify projects to pull. 

Mayor pro tem Evans reminded Council members that she had warned them about costs.  It would be difficult for the staff to come back and tell the Council that some of their priorities were off base, she said, but they could bring back information about which ones cost the most. 

Council Member Wiggins pointed out that the Manager and staff had a good sense of the Council's intentions as well as staff needs.  She expressed confidence in their ability to bring back a recommendation of which projects could be delayed and how to proceed.  Mr. Horton replied that that staff was excited about the Council’s goals and the way the Council had set them.  He said they are the best set of goals that a Council has adopted in his ten years as Manager, explaining that the goals tie into the community's Comprehensive Plan. 

Mr. Horton stated that the staff knows they will have to come back with recommendations for adjustment, which might include deferring a project to a specific time because it is not as important as some others are.  In other cases, he said, they might recommend finding a partner to help pay or using a contractor to help get the work done.  Mr. Horton said the staff had not taken the Council's recommended goals as a mandate that they have to adhere precisely to schedules.  He asked Council members for an opportunity to see how much the staff can accomplish, adding that they have never hesitated to say when they cannot get something done without relief. 

Council Member Kleinschmidt pointed out that the Council had witnessed the Manager in the past asking for more time or resources to get a project done.  This would be more productive, he said, than reprioritizing things that they had purposely discussed without consideration to cost because they represent guiding principles for the future.  Council Member Kleinschmidt thanked the staff for clarifying how the LUMO was affecting resources.  He noted that the Town was not experiencing difficulties because of the LUMO, though, but because of the great learning curve that it presents.  Council Member Kleinschmidt predicted that everyone will become more efficient at implementing it over time.

Council Member Strom praised Mr. Horton for striking the correct tone and perspective.  He described the LUMO, the Planning Department's budget, and the Information Technology Department's goals as presenting a terrific opportunity for the Town to figure out how to work more efficiently and to achieve interdepartmental and citizen access to workflow and information.  Council Member Strom noted that the Town had gone a tremendous distance on technology issues and this would be a way to integrate Town goals into Town departments.  He expressed appreciation to Mr. Horton for providing terrific leadership in this situation.

Council Member Bateman commented on the disconnect between Mr. Horton feeling challenged and Mr. Waldon feeling worried.  She continued to express a willingness to adjust if doing so will save a position and keep the excellent Planning Department staff from burning out. 

Mr. Waldon said that he was, in fact, excited and hoped that Mr. Horton was also worried. 

Council Member Ward said that he had understood Mr. Horton as offering to fine tune the Council's goals so that the Planning Department staff could be less worried. 

Item 5 - Finance Department

Finance Director Jim Baker stated that the Finance Department's primary mission was to provide financial oversight and direction to help the Town make the best possible use of its assets.  He read the brief services description listed in the report, adding that these had not changed over the past year even though the Department's work load had increased in several areas.  Mr. Baker noted that the Department had no revenues to offset its costs.  His requested base budget was up from the current base budget by a total of 5.2%, he said, adding that this is mostly due to operating costs in three mainline items.  These items are tax collection, banking services and fees, and annual maintenance support charges.

Mr. Baker listed the key services that were going well:

· Budget preparation and meeting all financial reporting requirements in a timely manner.

· Purchasing and contract oversight, including development of procurement card system.

· Borrowing and debt management (lease-purchase agreements and issuance of bonds).

He noted that the Department had been delayed in implementation of the procurement card system.  Mr. Baker identified a need for an additional accounting position to address an increasing workload and new financial reporting requirements effective this year.  He pointed out that the impending retirement of the current Purchasing and Contracts Manager provides an opportunity for possible changes in that position.  It also presents a potential for restructuring and reallocating resources that could help cover the cost of an additional accounting position, he said.  Mr. Baker noted that a 5% reduction in his budget would be about $42,000.  This could not be accomplished without some reduction in personnel, he said.  Mr. Baker explained that reducing the Purchasing and Contracts Manager position to half-time would be one possibility, or eliminating a part-time office assistant position would be another.

Council Member Wiggins inquired about how much of the increase in work related to billing and collecting was due to the rental licensing program.  Assistant Finance Director Kay Johnson replied that the program had involved a lot of extra work by accounting people. 

Mayor Foy inquired about computerizing this.  Ms. Johnson replied that the current computer program was adequate but that incorrect and conflicting information had resulted in time-consuming efforts to have people identified correctly.  She said Mr. Avery had spoken about another computer module within the municipal program that would tie in with what they already have.  This would help track the more practical side not related specifically to billing, Ms. Johnson said, adding that they need both pieces.

Council Member Strom asked if this would settle down after the program is underway and not be as labor-intensive in the long run.  Ms. Johnson replied that this piece probably would settle down, but the sheer volume of the increased number of different types of fees and transactions that need to be coordinated with departments and other programs had increased astronomically.

Council Member Strom noted that the rental licensing fee had been set in a fashion that the Council hoped would make the program revenue neutral.  Mr. Horton replied that he was not sure the Town could recover all of its expenses in the first year, especially given the extra time added to Finance Department responsibilities.  But, he said, he had no questions about covering all the direct costs that are measured in the inspections operation, and perhaps the additional cost that occurred in Finance. 

Mr. Horton mentioned that he had received notice from the Government Finance Officers' Association that the Town's newly formatted budget had received the Distinguished Budget Presentation Award.  He said this is a credit to Kay Johnson, Jeanne Erwin, and Jeanne Tate, who had devoted much extra time to that.  Mr. Horton pointed out that they had created a much more useful document, especially for citizens. 

The meeting adjourned at 7:07 p.m.