SUMMARY MINUTES OF A BUDGET PUBLIC HEARING

OF THE CHAPEL HILL TOWN COUNCIL

WEDNESDAY. MAY 10, 2006 AT 7:00 P.M.

 

 

Mayor pro tem Bill Strom called the meeting to order at 7:00 p.m.

 

Council members present were Laurin Easthom, Sally Greene, Ed Harrison, Mark Kleinschmidt, Bill Thorpe, and Jim Ward.

 

Mayor Kevin Foy and Council Member Cam Hill were absent, excused.

 

Staff members present were Deputy Town Manager Florentine Miller, Assistant Town Manager Bruce Heflin, Town Attorney Ralph Karpinos, Town Information Officer Catherine Lazorko, Planning Director J. B. Culpepper, Public Works Director Bill Letteri, Human Resources Director Pam Eastwood, Finance Director Kay Johnson, Fire Chief Dan Jones, Library Director Kathy Thompson, Housing Director Tina Vaughn, Principle Transportation Planner David Bonk, Assistant Human Resources Director Anissa Graham-Davis, Assistant Town Clerk Amy Harvey, and Town Clerk Sabrina Oliver.

 

Mayor pro tem Strom noted that the Council had three budget work sessions scheduled for May 17, June  7 and June 14, as well as an additional hearing on June 19. He said they anticipated adopting the budget on June 26.

 

Item 1 – Public Hearing on the Manager’s Recommended 2006-2007 Annual

Budget, Capital Improvements Program, 2006-2007 Downtown

Service District Tax, 2006-2007 Transportation Grant Funds

 

Town Manager Cal Horton said the sum of the recommendation was that the Council continue the present tax rate of 52.2 cents in total, with a General Fund tax rate of 47.4 cents and a Transportation tax rate of 4.8 cents.  He stated they were also recommending an adjustment of the boundaries of the Downtown Service District as well as an adjustment in the Downtown Service District tax rate.

 

Mayor pro tem Strom noted that the Council had received requests from two groups to make presentations that were longer than normally allowed.  He noted that both were Town employee groups who had made prearrangements for the longer presentation.  Mayor pro tem Strom noted that the Visitors Center had additional information to present and had also been given permission for a slightly long presentation time.  Other than that, he said, speakers would be limited to three minutes to present their comments.

 

Eleanor Howe, Chair of the Transportation Board, said she wanted to highlight three priority issues of the Transportation Board.  First, she said, was the issue of shelters, which she said they had received many complaints about.  Ms. Howe described complaints related to shelters that were leaky, dirty, no trash bins or trash bins not being emptied, and poor lighting.  She said the Board recommended providing good, clean amenities to their customers, including installing trash bins where needed, regular trash pick-up, and installing lighting around shelters.  Ms. Howe asked that the Council give special consideration to solar lighting.

 

Ms. Howe said the next issue was providing new shelters. She said the Board recommended installing new shelters, with trash receptacles and lighting where possible, at the top five boarding stops that were without shelters, and that were not in Carrboro or on the UNC campus.  Ms. Howe suggested working through the Transit Partners Committee to urge Carrboro and UNC to do the same.

 

Ms. Howe said her last issue was the recommendation of the Board to investigate the feasibility of a downtown shuttle service from North Greensboro Street in Carrboro to Henderson Street in Chapel Hill, traveling eastbound on Franklin Street and westbound on Rosemary Street.  She noted that a shuttle with 15-minute headways could help alleviate the parking shortage due to construction on Lot 5 and offer an alternative to automobiles for short trips in the downtown area.

 

Ade MacGregor, a member of the Transportation Board, said in addition to those priorities outlined by Ms. Howe, the Board was also recommending improved service on the CL line to make the schedule more compatible for University and UNC Hospitals employees, and to the HS line by expanding it to include service along Weaver Dairy Road Extension, without midday service for at least the first year.

 

Gary Barnes, a member of the Transportation Board, spoke about the importance of providing time point schedules at every bus stop on the system.  He said a time point schedule would alert patrons of which bus was coming and its expected arrival and departure times.  Mr. Barnes said it was an inexpensive amenity that could improve ridership.


Mr. Barnes proposed a study of existing routes and schedules with an eye toward improving efficiency and responsiveness and thereby expanding service on nights and weekends to unserved areas, such as Weaver Dairy Road from East Chapel Hill High School to Eastgate Shopping Center.  He suggested there were professionals who could assist with such a study.

 

Felicia Mebane, Secretary of the Chapel Hill Library Foundation Board, requested on behalf of the Foundation that the $87,000 that had previously been earmarked for the recently cancelled Apple Chill Street Fair be earmarked in the 2006-2007 budget for additional books for the Public Library.  She argued that the Town Library was the busiest in the State and materials must meet future demands, and that the $87,000 should be used for another cultural resource, one that was free of charge and available to all, namely the Library.  Ms. Mebane stated that $87,000 could buy 3,000 additional books for the Library.

 

Martha Brunstein, Recording Secretary for the Friends of the Chapel Hill Public Library, echoed Ms. Mebane’s request on behalf of the Friends to fund additional books for the library using funds previously budgeted for Apple Chill.  She noted the Friends were made up of 578 citizens who were willing to pay annual dues to help support the Library’s needs.

 

Ms. Brunstein said she had read the Town’s Master Plan for the Library, but there was one area the Town had not been able to support financially, and that was the growth of the collection.  She said the growth of the collection was as important as the growth of the physical structure now being planned.  Ms. Brunstein said that $87,000 would purchase 3,000 of the 9,300 books currently needed.  She said, what a great opportunity to move funds already budgeted for something with a similarly cultural, educational and artistic outreach for the very people who would feel the loss of Apple Chill the most.

 

Ms. Brunstein said instead of a one-day event, the Council had the opportunity to touch 1,000 lives every day, which was a conservative estimate of the daily visitors to the Library.  She assured the Council that those books would not sit on the shelves, noting fully 40 percent of them would be in circulation on any given day.  Ms. Brunstein urged the Council to use the Apple Chill funds to purchase books for the Library.

 

Bob Schreiner, Chair of the Library Board of Trustees, noted the Board had recommended that a children’s/teen librarian be included in the budget for the coming year, and it was their understanding that was now in the proposed budget.  He said their second recommendation was for an additional book processor, which had not been included in the proposed budget.  Mr. Schreiner said the current book processor processed approximately 6,500 books per year, which were too many for one person to prepare or mend.

 

Mr. Schreiner suggested that the $87,000 previously budgeted for Apple Chill be used to purchase more books, but a portion could also be used to fund a temporary book processor to get new books on the shelves.

 

Mr. Schreiner stated the Board’s last recommendation was for the swift completion of the building expansion to 75,000 square feet by following the Council’s adopted Master Plan, with completion no later than 2010.

 

Dennis Ricardo Zoriana, Director of SURGE, a local non-profit, stated that a community bike-loan project would be established in Chapel Hill, Carrboro, and UNC, with the goal or providing a reliable alternative source of transportation to the community.

 

Heather deBethizy, an intern for SURGE, explained how the program would work.  She noted that they would start with 30 bikes, with plans to expand to more than 100.  Ms. deBethizy requested that the Town provide $15,000 of the start-up budget.

 

Chris Richmond, also with SURGE, explained how they salvaged bikes and repaired them for reuse.  He said all the bikes would be at least three-speed, would be painted Carolina blue, and would have fenders, bolted-on wheels, baskets, lights, and other amenities.  Mr. Richmond said helmets and locks would also be provided, as well as monthly maintenance for each bike.

 

Jon Wilner, Executive Director of the ArtsCenter, said he had previously requested $5,000 in support of a grant from the NC Arts Council to hire an architect to begin work on plans for the new ArtsCenter.  After careful consideration, he said, he had withdrawn his request to the NC Arts Council and was therefore withdrawing his request for $5,000 from the Town as well. Mr. Wilner asked that the Council continue to support the ArtsCenter at the previous level of funding.  He explained new programming and initiatives planned for the ArtsCenter to provide education on AIDS and HIV.

 

Al Lilley, Vice-Chair of the Board of the ArtsCenter, requested that the Council continue to provide financial support to the ArtsCenter as in past years.  He noted the diverse programming of the ArtsCenter that benefited many, including Chapel Hill residents.  Mr. Lilley noted it was important that they launch a capital campaign, and the success of that campaign was dependent on their ability to maintain sound financial footing.  He stated that the Town had provided funding for the ArtsCenter for the past 10 years, and it was their hope that it would continue.

 

Karen Patillo, an employee of the Public Works Department and representing the Town of Chapel Hill Employee Forum, focused on key issues that affect employees:

Ms. Patillo stated that the employees acknowledged that the Town provided a workplace with outstanding benefits for which they were appreciative.  She said the Employee Forum respectfully requested that the Council adopt a 3.78 percent merit step increase for employees for the coming year, to be implemented no later than October 1, 2006.  Ms. Patillo said the Forum believed that to grant a pay increase of less than 3.78 percent would contribute to the impact and lessen the Town’s compatibility with the surrounding labor market.

 

Laurie Paolicelli, director of the Chapel Hill-Orange County Visitor Bureau, provided information on Chapel Hill’s viable tourism industry. She stated the Visitor Bureau had undertaken the first ever tourism research study to objectively determine that viability.  Ms. Paolicelli noted that tourism was a $13 billion industry for the State, with $120 million generated in Chapel Hill with 2.5 million visitors each year.

 

Ms. Paolicelli provided information on who was visiting and who was not, why they were visiting, and how to attract more visitors.  She said their findings indicated that 49 percent of those visitors had personal connections to the University, mostly parents, alumni, and sports fans.  Ms. Paolicelli said the other 51 percent visited Chapel Hill for its family ties, and special events related to high school sports, weddings, reunions, fraternal, social and cultural events.

 

Ms. Paolicelli said it was no surprise that the leading starting points of most visitors was North Carolina and Virginia.  She said that the third leading market was from Georgia, whose visitors said they came here because of the safety, greenery, pathways and walkways, and the food.  Ms. Paolicelli said food related not just to restaurants, but to the organic elements as well.  She stated that 63 percent of those visitors stated they wanted to visit again.  Ms. Paolicelli said they had found through the study that Chapel Hill had a very high level of awareness from those visitors as well as a positive connection.  She said that indicated that we had a tourism industry that was healthy and was an economic indicator for future growth.

 

Ms. Paolicelli proposed that because of these positive indicators, that the Visitor Bureau and the Town had become aggressive in promoting tourism.  She said they had developed a five-point strategy that recognized that 63 percent of visitors wanted to return, but needed to be asked to come back.  Ms. Paolicelli said those visitors were being asked to return by Myrtle Beach, Atlanta, Wrightsville Beach, and Charlotte, all places that were getting clever and strategic in their marketing.  She said they plan to do the same.

 

Ms. Paolicelli said they had discovered through research that many visitors get their information on-line, so they were in partnership with Expedia and major other on-line marketing tools.  She stated they were producing a “How to Explore Chapel Hill and Orange County” guide that would provide suggestions from morning to night and provide 24 itineraries.

 

Ms. Paolicelli stated that $700,000 was generated each year in occupancy tax, of which approximately 10 percent was contributed to the Visitor Bureau.  She said in order to assist them in reaching their goals, they were requesting that the Town increase its contribution by five percent.  Ms. Paolicelli said the Bureau was asking that the Town contribute 15 percent to their marketing efforts so that they could win tourism and increase the healthy economy that was rightfully the Town’s.  She ended her presentation with a short video of how they see the Town of Chapel Hill, including its greenery, friendliness, and all it had to offer.

 

Council Member Thorpe asked Ms. Paolicelli how many staff members the Bureau had.  Ms. Paolicelli stated there were five others, including a Sales Director, a Public Relations Director, and a Site Coordinator.

 

Delores Bailey, representing Affordable Rentals, Inc., Crystallist Foundation, Orange County Housing and Land Trust, Habitat for Humanity, and EmPOWERment, Inc., thanked the Council for recommending support of their Property Management position.

 

Karen DeHart, Director of Development for the North Carolina High School Athletic Association (NCHSAA), provided the Council with information regarding the past year’s programs, noting that a four-day event had brought in over 25,000 visitors with an estimated economic impact of approximately $500,000, and an annual overall impact of about $1.7 million.

 

Ms. DeHart requested continued funding of the NCHSAA in the amount of $30,000 for future years, including 2006-2007.  She said without that continued funding, they would be forced to look elsewhere, such as Raleigh or Winston-Salem, to hold these events.  Ms. DeHart said for this small investment, it made a great impact on the economy as well as on the citizens of Chapel Hill.

 

Stanley Norwood, Transportation Department employee and speaking on behalf of UE Local 150, proposed a pay increase for all Town employees of at least seven percent, which he said they thought would be fair and equitable particularly for those employees who earned less than $40,000 annually.  He provided information regarding how it was nearly impossible to reach the maximum within a pay grade because of the small amounts of increases.  Mr. Norwood suggested the Town should control its spending and be wiser with the budget, which would provide savings to fund the seven percent increase requested.  He noted he did not believe employees were ungrateful for the 3.78 percent received during the past year, but in no way did it cover the increased cost of living and fuel costs.

 

Adam Smith, a Public Works employee, said he lived in a small house of less than 2,000 square feet on less than a half acre of land, with a mortgage of $1,363 per month.  He said his taxes for that small house, which was older than he was, were over $2,000 annually.  Mr. Smith said he made $700 a week before taxes, and after taxes he netted just $400.00 per week.  He asked the Council to do the math and decide if he could afford to pay the mortgage on his small house.

 

Mr. Smith said if not for his wife’s income, they would be living in a house trailer out in Orange County, or in a rental house in Durham.  But, he said, he was being responsible by owning a home and serving his community, which he had done for more than 40 years.

 

Mr. Smith stated that the Town did not pay him for the “extra” that he provided.  He noted that he was the Town’s playground inspector, because no one else was certified to do it.  Mr. Smith said he had condemned six playgrounds in the Town, five of which belonged to the Town.  He said most had been torn down and rebuilt, but he had performed the inspections on his own time while caring for his two-and-a-half year-old son.  Mr. Smith said when he walked his dog, he checked for illegally parked vehicles at Homestead Park as well as alerting the Police when problems arose with teenagers or others.  He noted that last year he had provided the Council with a list of the hundreds of plants he had been able to get at no cost to the Town and that had amounted to thousands of dollars in savings.  The Town did not pay for any of these extra services, Mr. Smith said.

 

Mr. Smith said this year he had again been able to acquire free plants, which he had planted on his own time during the weekends.  He said that many employees do similar tasks at no cost to the Town.  Mr. Smith noted the number of overtime hours put in by employees who never noted it on a timesheet, because it was their way of giving back to their Town, even if they did not live in Town.

 

Mr. Smith said he was a certified arborist, had a National Playground Institute Safety Certificate, was a certified landscape technician, had a CDL driver’s license, and had multiple pesticide licenses.  He said he was not a “jack of all trades,” but a master of all his trades, just as many other Town employees were.  Mr. Smith said the Town’s benefit package attracted good workers and kept qualified and family-oriented employees.  But, he said, if the Council cut those benefits then they would lose those employees.

 

Mr. Smith said he had received job offers elsewhere for more salary, but had refused because Chapel Hill was his community.  He said Town employees were not servants and were not slaves.  Mr. Smith said all they were asking the Council to do was to look at what they do and the benefits the Town received from that work, and to treat them accordingly.  He said it was his responsibility to put a human face to the employees asking for a fair wage for superior work.  Mr. Smith also said that few were doing the work of many, and priorities needed to be set so that tasks could be completed.

 

David Sasser, a Chapel Hill Firefighter and a member of the Executive Board of the Chapel Hill Firefighters Association, said they supported the increased staffing and budget proposed by the Fire Chief and the Town Manager.  He said these increases would allow them to do their jobs more safely and to also provide education to the community regarding fire safety.  Mr. Sasser said they were in support of the recommendation to provide special increases to drivers and captains, and also the recommendations made by the Employee Forum.

 

COUNCIL MEMBER HARRISON MOVED, SECONDED BY COUNCIL MEMBER KLEINSCHMIDT, TO RECEIVE AND REFER ALL COMMENTS TO THE MANAGER.  THE MOTION WAS ADOPTED UNANIMOUSLY (7-0).

 

The meeting was adjourned at 8:18 p.m.