Accountable

At a recent Town Council meeting, several members encouraged Chapel Hill voters to put the county commissioners candidates’ feet to the fire about the public library funding inequities.
It was great political theater, hearing Jim Ward and Laurin Easthom bob their heads and look at one another and do their “Uh huh! Yeah! It’s an election year for the county!” routine.

So when the first filings rolled in last week and commissioners Alice Gordon and Barry Jacobs filed, I was curious what their candidacy statements would be.

No surprise with Gordon as she said she would run on her environmental record as well as improving public transit in the region. Umm, did Gordon not get the memo about county spending? About how the folks in Hillsborough have overspent to the point where the county has reached its debt limit? And that Gordon voted in favor of all that ruinous spending, the same spending that keeps the county from paying its fair share of Chapel Hill library costs? Maybe Gordon should revise her platform and run on something a bit more pertinent to the average county resident, such as how the commissioners plan to return the county to solvency.

Jacobs in his filing statement at least acknowledged that the economic landscape is “unsettled” and that he is committed to government that is “cost-effective and customer-oriented.” Those sentiments are refreshing, given that a whole lot of county folks believe the Board of Commissioners is the last group that cares about its “customers.” Otherwise the board wouldn’t have spent tax dollars so extravagantly and then come back demanding more. The candidates should take to heart the tax revolt of last winter and heed what a whole bunch of those “customers” were saying. If I recall correctly, Jacobs pooh-poohed the protests in as good a Marie Antoinette imitation as he could project.

So, it’s time to put the incumbents on notice – business as usual just ain’t gonna cut it during these terrible budget times. Any serious commissioner candidate must be one who is concerned about county spending and willing to rein it in. And the serious candidate had better get a grip on not raising taxes and on being honest with taxpayers — even with the so-called “revenue neutral” revaluations of last year, my property tax went up 6 percent.

I plan to sit up front at as many campaign forums as possible and remind the incumbents about their disastrous spending history. I would encourage others in the county to do the same. The commissioners are accountable and, I suspect, need to be reminded of that.

–Don Evans

Knowing our options

Some council members looked confused at Monday night’s meeting when Council Member Matt Czajkowski asked Brian Litchfield, assistant transit director, about the cost of the forward contract to supply diesel fuel for town buses and service vehicles in the 2010-11 fiscal year. This was an item on the consent agenda that would have been approved by rote had Czajkowski not asked a prudent question: What is the cost of the option?

Buying a forward contract is kind of like buying insurance. The town pays a fee to a dealer that allows the town to buy a certain amount of fuel for a set price during the timeframe specified in the contract. The town is under no obligation to buy the fuel at that contract price, and certainly won’t if the spot market price (the price on the open market, which changes daily) is lower than the contract price. But, if the town doesn’t exercise the option, the town has lost the money it spent on the option fee that guarantees the price in the contract.

In buying a forward contract, the town is betting that the market price will rise significantly higher than the contract price. The dealer is betting the market price will drop. One side wins; the other loses. Czajkowski essentially asked, If we lose, how much do we lose? And if we win, how much do we have to win to make it worth the cost of the option?

Last year, the Transit Department bought two forward contracts, spending $1.866 million for 1.2 million gallons, which was $135,000 less than what was budgeted. (I’m awaiting a response from council members to learn whether that savings remained with the Transit Department to be spent at its discretion or how the town manager spent it.)

At Monday night’s meeting, the town manager wanted approval to buy more forward contracts for fuel, but he had not yet negotiated a price and thus did not know the cost of the option fee. He was essentially asking council for a blank check. That’s no way to balance a budget.

Because of Czajkowski’s probing, Litchfield agreed to send an e-mail to council before any forward contract is signed, letting them know the negotiated price per gallon and the cost of the option. Council members can weigh in on whether that seems like a good deal before the town involves itself in yet another contractual obligation.

Speaking of which, we’re still waiting to hear from the town manager, town attorney or mayor about what it would cost the town to walk away from the 140 West Franklin contract. We’re beginning to think that no one in town government had thought about it until we asked.

— Nancy Oates

Police investigation

The Chapel Hill police want to ask you a few questions. Beginning with: How are we doing?

In formulating a strategic plan to better serve the community, the Chapel Hill Police Department has hired a consultant to pull together a report that includes what town residents think of the job police are doing and how the police and community can work together better.

As part of the process, the CHPD is hosting four community conversations (aka focus groups) to gather input from residents. Participants in last night’s session at United Church of Chapel Hill had plenty to say.

As the economy tightens, more problems formerly handled by other agencies may be dumped on police. Almost all participants were unclear about making non-emergency calls to police. A separate number or procedure, a sort of 9-1-2 call, would help residents feel more comfortable letting police know of potential problems — a drunk couple arguing viciously at a bus stop; an elderly neighbor whose papers are piling up in the driveway — without tying up the 9-1-1 emergency lines.

Police may be under-trained in serving the special-needs community. Chapel Hill has a relatively high number of families with autistic children, in part because of UNC’s renowned TEACCH program. As those children mature, they have the bodies and strength of young adults but the emotional and cognitive development of much younger children. A tantrum by a small child is annoying; by a young adult it can be terrifying. Yet police must respond differently from other aggressive incidents.

To work proactively with UNC students, police might consider holding information sessions to let new students know expectations of being a good neighbor and consequences of rowdy off-campus parties, underage drinking and illegal drug use and the like.

A town resident used to host and maintain for free a Web site with a GIS map that showed where crimes took place and arrests were made. He no longer has time to do it, and some would like to see police take on that service.

Residents want police to be model citizens in uniform and off duty, to “be the badge” as it were.

Overall, participants were pleased with police presence in town, especially the downtown foot patrols.

Even if you can’t make either of the remaining two sessions, you can send your comments via e-mail to outreach@townofchapelhill.org. The final two meetings are Saturday, Feb. 13, 10 a.m.-noon at St. Thomas More Catholic Church, 920 Carmichael St., and Thursday, Feb. 18, 6-8 p.m. at Hargraves Community Center, 216 N. Roberson St.

Coffee and donuts are provided, of course.
— Nancy Oates

A source of extra revenue

On Monday night, the executive director of the Orange County Visitors Bureau, Laurie Paolicelli, gave the Town Council scads of information about how important tourism is for Chapel Hill, how the town has a lot of features that visitors look for when considering a destination, and how much money tourism generates for town businesses and taxes.

“Everything a tourist looks for, we have in Chapel Hill,” Paolicelli told the council.

Paolicelli said tourism brings $152 million a year into the county, with Chapel Hill by far generating the most interest and dollars. And the number-one request the bureau gets from prospective visitors is whether the town has a guided tour. Apparently, such a tour is high on the list of must-do things for visitors. And there are plenty of sights to see in Chapel Hill – enough to provide plenty of stops on a town tour loop. Paolicelli even showed a drawing of where such a town tour loop would go – basically it would start at University Mall, wend its way along Franklin Street with a stop at the town museum, turn around at Carrboro’s Weaver Street Market, then come back for stops at the Ackland, the Carolina Basketball Museum and the planetarium.

It would be an 11-mile trip, so driving, either by bus or car, would be essential.

Now, buses can be expensive. The estimate tossed out at the meeting was $50 an hour per bus. And for such a tour you’d want several buses operating sequentially, so that visitors could get off the bus to visit a site (and especially a business or two) for more than just a casual stop. Which means that a tour that uses some means other than buses to get the tourists through the loop would be a nice alternative.

And that brings us to a suggestion by Mayor Mark Kleinschmidt. He suggested that a system of self-guided stops could involve using cell phones to access tour information and presentations. Wait a minute – isn’t there a push to outlaw cell phone use while driving town streets? I wouldn’t want to see police issuing citations to drivers who were just dialing in to a historical presentation.

Then again, the town is going to need extra revenue to pay for that library renovation and those expensive parking spaces at 140 West Franklin. Great idea, Mr. Mayor!
–Don Evans

Turning down a bargain

Last week, The News & Observer sold its office space at 505 W. Franklin St. to Franklin Junto, a group of investors led by Top of the Hill’s Scott Maitland who will turn the space into a distillery. The N&O will pay rent to Maitland for a corner in the building where the dozen or so remaining N&O/Chapel Hill News employees will work.

The N&O sold the land and building for $2.15 million, about $800,000 below its tax value, considered the market value as of January 2009.

How did the N&O end up in such dire straits that it had to sell prime real estate in downtown Chapel Hill for nearly 30 percent off its market value? Its parent company, The McClatchy Co., took on too much debt a few years back when it bought the Knight-Ridder newspaper chain.

McClatchy financed $3.75 billion of the $4.5 billion purchase price. At the time, in 2006, McClatchy and its lenders evidently didn’t think the purchase was a bad idea. But time has shown otherwise. The economy spiraled downward, and McClatchy struggled to make its loan payments. The company sold off what newspapers and assets it could and slashed staff. The N&O has cut its staff, which once numbered just over 1,000, by half in the past 18 months.

Now, in a sour economy that some financial experts say has not reached bottom yet, Chapel Hill’s Town Council is considering issuing all the bonds it has available to it to finance some discretionary capital improvements, such as more than doubling the size of the library and fixing up the greenway. Because of the cost associated with issuing bonds, town manager Roger Stancil advised issuing them all at once, rather than one at a time as needed.

The town needs to have some funds in reserve in case 140 West Franklin is built, and I don’t see how the town can walk away from that contract unscathed. (I’m awaiting a reply to my e-mail to Stancil and town attorney Ralph Karpinos as to what nullifying the contract would cost the town.)

All of the people who spoke at Wednesday’s public hearing made solid cases for why the town should spend money on their particular projects. And if the economy were better, I’d feel better about the town taking on somewhat more debt to invest in those projects. But the economy is bleak right now, and we have made some spending decisions in the past that mean we may not be able to follow through on the projects voters approved a couple years ago. Even though the depressed cost of materials and labor right now would make capital improvements a bargain, they aren’t a bargain if the town has to refinance repeatedly because something unforeseen has stressed its resources to the breaking point.

As McClatchy learned, sometimes the prudent course is to say no to a bargain.
— Nancy Oates

Spending on people, not things

By any measure, town workers did a bang-up job preparing the town for last weekend’s snow storm and clearing roadways in the storm’s aftermath. They worked overtime and through the weekend to make sure life returns to normal for the rest of us. I was amazed at how quickly things got back to normal, because a half-foot of snow can really knock this Southern Part of Heaven on its collective butt.

At the Town Council meeting Wednesday night, several council members went out of their way to praise the town employees for the job they did. And that praise wasn’t coming just because there were several dozen burly firefighters and other town employees sitting in the audience. It was obviously genuine and heartfelt.

So when the talk turned to the budget, which was why we were all there in the first place, and whether there would be money to hand out a few raises and not cut into health care benefits, everyone was all ears.

Kay McDaniel, the chair of the Town of Chapel Hill Employee Forum, got to the core of the matter: Town employees worry that another tight budget year coupled with a lousy economy will mean cuts in health care benefits as well as no pay increases. She pointed out that salaries for town employees have not changed in two years while many town workers are taking on extra duties – some are doing the jobs that two or three people once did.

McDaniel’s points were echoed by several other speakers, who praised the town’s attractive work atmosphere while pointing out that it could all melt away like the weekend snow if someone doesn’t look out for the workers.

The question is: Will the town take care of its employees or double the size of the public library?

Expanding the library will take a big chunk out of town revenue. Town staff played their part in reducing town costs over the last few years. Now, it’s time for the council to acknowledge that effort and put the workers first. Instead of putting the town deeper in debt, the council should provide for its workers at this crucial time. Now more than ever town workers could use that little extra in their paychecks or not to have to sweat it to find a way to pay the extra cost of health care.

As council member Jim Ward put it, the council can choose to spend money on bond debt or on other things, i.e., staff raises and health care. I say put the people first.
–Don Evans

Our new home

We moved here because it’s where all the cool kids are.