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HomeMy WebLinkAboutMinutes - 20090922 APPROVED 10/20/2009 MINUTES Orange County Board of Commissioners Orange County Board Of Education Chapel Hill-Carrboro Board of Education WORK SESSION September 22, 2009 7:00 p.m. The Orange County Board of Commissioners met for a joint session with the Chapel Hill—Carrboro Board of Education and the Orange County Board of Education on Tuesday, September 22, 2009 at 7:00 p.m. at the Southern Human Services Center in Chapel Hill, North Carolina. COUNTY COMMISSIONERS PRESENT: Chair Valerie P. Foushee, and Commissioners Alice M. Gordon, Barry Jacobs, Pam Hemminger, Mike Nelson, Bernadette Pelissier, and Steve Yuhasz COUNTY COMMISSIONERS ABSENT: COUNTY ATTORNEYS PRESENT: John Roberts COUNTY STAFF PRESENT: Interim County Manager Frank Clifton, Assistant County Managers Willie Best and Gwen Harvey, and Clerk to the Board Donna S. Baker (All other staff members will be identified appropriately below) ORANGE COUNTY BOARD OF EDUCATION MEMBERS PRESENT: Chair Anne Medenbleck, Vice-Chair Tony McKnight, and Board members Eddie Eubanks, Debbie Piscitelli, Ted Triebel, and Susan Hallman. Superintendent Patrick Rhodes was also present. ORANGE COUNTY BOARD OF EDUCATION MEMBERS ABSENT: Steve Halkiotis CHAPEL HILL-CARRBORO CITY SCHOOL BOARD OF EDUCATION MEMBERS PRESENT: Chair Lisa Stuckey and Board Members Jamezetta Bedford, Mia Day Burroughs, Jean Hamilton, Gregory McElveen, and Superintendent Neil Pedersen was also present. CHAPEL HILL-CARRBORO CITY SCHOOL BOARD OF EDUCATION MEMBERS ABSENT: Vice Chair Mike Kelley and Annetta Streater The meeting was called to order at 7:07pm by Commissioner Foushee. A motion was made by Commissioner Nelson, seconded by Commissioner Hemminger to amend the agenda by adding an item, "Stimulus Funding for Homelessness Prevention and Rapid Re-Housing Program Award." VOTE: UNANIMOUS Homelessness Prevention and Rapid Re-Housing Program Award The Board considered accepting a Homelessness Prevention and Rapid Re- Housing Program award of$1 million, authorizing the execution of the associated State Contract and a sub-recipient contract with Housing for New Hope by the Chair of the Board of County Commissioners upon contract review and approval by the County Attorney's office. Frank Clifton said that the County has been awarded a $1 million grant for this program. Social Services Director Nancy Coston said that this is a provisional grant, which means that the information has to be worked out with the State and the contract must be signed by September 301h. This item will be discussed fully at the October 61h meeting. The Board needs to approve this for the Chair to sign the contract from the State to be returned on September 30th to the State. The funds are for three years and the two groups administering the funds will be Orange County and Housing for New Hope. She said that this was a collaborative effort. Commissioner Nelson thanked the staff and Chair for making sure the Board was polled about adding this item. A motion was made by Commissioner Nelson, seconded by Commissioner Hemminger to accept the Homelessness Prevention and Rapid Re-Housing Program award of$1 million from the State of North Carolina; and approve the execution of the associated State Contract and a Sub-recipient contract with Housing for New Hope by the Chair of the Board of commissioners upon contract review and approval by the County Attorney's Office. VOTE: UNANIMOUS OPENING COMMENTS: Introductions were made. Chair Foushee said that Steve Halkiotis would not be able to attend tonight's meeting because he is still recuperating from surgery. 1. Chapel HiII-Carrboro City Schools - Update of 2009-10 Budget Superintendent Neil Pedersen said that the first assumption was that CHCCS would not receive any more money from the County from last year, and the first set of reductions ($718,280 in Attachment 1-a) were to be made for no increase in County appropriations. The second set of reductions was made once the appropriation was received. This totals $1.9 million worth of reductions. The first set of reductions did not include personnel, and the second set of cuts involved the Central Office. Attachment 1-b includes the State reductions. The State made reductions of$3 million in non-instructional support. The State reduced this line item (custodians, clerical, and substitutes) and then gave stabilization funds for the same amount. The second biggest reduction is discretionary funds. There was a potential reduction in teacher assistants, but in the final budget, the position reductions did not appear for teachers and teacher assistants. He distributed a handout on class sizes. On the elementary level, grades K-3 are doing well and not exceeding 21 students. In 41h and 51h grades, the levels are the same as last year. In the middle school level, the allocation of teachers has changed and the numbers are looking good for class sizes. In the high school level, the numbers are up somewhat, and they did reduce some core offerings. Neil Pedersen said that no teachers were laid off or non-renewed for strictly budgetary reasons. There were 60 teachers that received non-renewal notices because of other opportunities. The school system hired approximately 90 new teachers for the school year. He made reference to the 20th day membership figures and said that right now CHCCS is 123 students below the State's projection. He made reference to the letter that was sent to Chair Foushee. There is an update on Elementary School #11. He said that there was a successful public hearing in Chapel Hill last night with the Town Council. There was no action taken, and CHCCS is proceeding with the planning for this school. He would like to request a future discussion with the Board of County Commissioners about its stance on the funding of Elementary School #11. Commissioner Gordon asked about the "other revenues." Superintendent Pedersen said that this is local revenue, tuition for preschool, fees, forfeitures, ABC funds, etc. Commissioner Gordon asked about the CIP and the Carrboro High School Arts Wing. She said that it looks like the appropriations add up to more than was needed, if you count the $1.9 million. Superintendent Pedersen said that they first were told they would get$1.9 million the first year and then again in 2010-11, for a total of 3.8 million. When there was money left over after the first round, then CHCCS reapplied and received a total of$4.1 million. The projection is $4.5 million. If there is money left over, then the money can be applied to other projects. Commissioner Gordon asked if any of these funds go to the Culbreth Science labs, which have been inadequate for years. Superintendent Pedersen said that the labs were on their list but he cannot give her a definitive answer as to when since it is in the 10-year CIP and it is not one of the upcoming projects, because McDougle Middle School also does not have an auditorium. Commissioner Gordon said she had long been concerned about older schools and would like to implement a systematic program to make older schools and newer schools "substantially equivalent" to each other. Since OCS was already putting a focus on middle schools, that would be a good place to start. She hoped that CHCCS would also focus on middle schools, including improving the science labs. Superintendent Pedersen said that it is not a matter of updating the Culbreth science labs because they are too small. The lab classrooms would have to be built; it would have to be new construction. Chair Foushee said that this would have to be considered in the context of the County's debt capacity. Commissioner Jacobs asked if there has been any effort for a joint purchase of science supplies between the two school districts and Commissioner Hemminger said that it was too hard to coordinate, so each school district did it on their own. Lisa Stuckey said that they would look into this and get back to the Board of County Commissioners. Commissioner Jacobs said that Frank Clifton had identified several areas of cost saving measures between the two districts and the County. Commissioner Gordon asked about the timeline to talk about Elementary School #11 and Chair Foushee said that it should be added to one of the Board of County Commissioners' agendas. Lisa Stuckey said that they discussed in the school collaboration meeting about adding this to a future agenda. Lisa Stuckey expressed appreciation for the spring budget process and the clear signals that were sent by the Board of County Commissioners. 2. Orange County Schools - Update of 2009-10 Budget Anne Medenblek said that since she has been on this board, OCS has not come to ask for any new schools and they do not see a need for any being built in the next 4-5 years. The dire needs are in the older schools - four are over 50 years old and there is major work that needs to be done on these schools. She thanked the County Commissioners for their past help with the OCS capital needs. Superintendent Patrick Rhodes thanked the County Commissioners for their support because it greatly dampened the impact of the State reductions on the school system and the classrooms. He said that there is a revised version of the handout. He made reference to page 6 and the State reductions. The reductions equate to 52 positions (30 custodians, 22 office staff, and some substitute positions). He made reference to page 8, Attachment 2-d. The total State reduction was 11.9%. This attachment shows the stabilization offsets that were used. The net reduction in State funding after the Federal stabilization funds was $1.68 million, or about 4.2% reductions. He said that OCS is planning on a $1.9 million reduction in funding going forward, and this will be another year of difficult decisions. He feels confident that the classroom instruction and classroom teaching core has been protected. As a result of stabilization and reductions, OCS has 25 fewer positions in the district than it had last year at this time. This is a combination of teachers, teaching assistants, assistant principals, office professionals, etc. Superintendent Rhodes said that he appreciates the Board of County Commissioners' funding for capital projects. Funding has been received for the auditorium at Stanford Middle School. It is a freestanding facility. Qualified School Construction Bond funding was received of$1.55 million. The design is already drawn out, which will greatly cut costs. He is anticipating $1.5 million for this facility for next year through the same sources. This facility could be an excellent resource for the community theater. Regarding enrollments, there has been a spike. This is detailed in Attachment 2- c. The projection was 7,007 and the 20-day membership number is 7,097. Commissioner Hemminger pointed out that Cameron Park seems to be over capacity and other elementary schools are way under capacity. Superintendent Rhodes said that this is very possible. Overall, there is excess capacity. Commissioner Jacobs said that he has not received any minutes from the school collaboration meeting and Chair Foushee said that she will insure that the minutes go out to all. Commissioner Jacobs said that he would like to talk about equity in building schools in the districts. 3. County Update on Outcome of 2008-09 fiscal year and Impacts Paul Laughton made reference to page 9, which is Attachment 3-a. This shows the revenue picture of FY 2008-09. He went through this table. The County received 97.6% of its budgeted revenue. The shortfall was about$4.4 million. He made reference to page 10, Attachment 3-b, and pointed out that there is a downward trend in non-property tax revenues. Frank Clifton made reference to the property tax revenues and said that it does not have to do with growth, but it is a reflection of the Board's tax policies. PRELIMINARY 2008-09 GENERAL FUND EXPENDITURES ACTUAL PCT BUDGET EXPENDITURE REMAINING USED S Governing & Management $ 9,977,081 9,351,651 625,430 93.7% General Services 14,135,140' 12,456,508 1,678,632 88.1% Human Services 39,760,968 35,796,408 3,964,560 90.0% Culture & Recreation 3,807,215 3,453,425 353,790 90.7% Community & Environment 4,378,256 4,049,184 329,073 92.5% Public Safety 17,295,960 16,797,602 498,357 97.1% Education 64,722,715' 64,722,715 0 100.0% Transfers 11,939,141 11,939,090 51 100.0% Debt Service County 6,469,412 6,345,808 123,604 98.1% Debt Service Schools 19,760,051 19,668,121 91,930 99.5% TOTAL GENERAL FUND $192,245,938 184,580,512 7,665,427 96.0% ESTIMATED CHANGE IN FUND BALANCE Revenue $192,245,938 178,261,503 (13,984,435) 92.7% Expenditures 192,245,938 184,580,512 7,665,427 96.0% Decrease in Fund Balance $ - (6,319,009) (6,319,009) Total Fund Balance 6/30/08 36,454,369 Total Fund Balance 6/30/09 $ 30,135,360 Reserve for Encumbrance * (1,200,000) Reserve for State Statute * (9,600,000) Reserve for Inventory * (180,000) 2008 Available Fund Balance $ 19,155,360 25,803,324 Available Fund Balance as 010 of Expenditures 10.4% 15.1% Appropriated in Original 2,000,000 Budget Undesignated Fund Balance $ 19,155,360 23,803,324 Undesignated Fund Balance as a% of 10.4% 13.9% Expenditures * ( The reserves are very preliminary estimates) Frank Clifton said that it is too early to project any firm numbers for next year's revenue, but Article 44 will go away entirely next year. He said that it is good that both school districts got stimulus funding, which is interest free, but it has to be paid back. Chair Foushee made reference to#4 on page 11, "Loss of Reimbursement for Housing Misdemeanor Prisoners," and asked if the County budgeted for the number of federal prisoners. Frank Clifton said that there is an estimate, but he does not know what it is based on. He does not think the maximum has been reached. 4. Overview of Schools Adequate Public Facilities Ordinance Planning Director Craig Benedict said that this is a quick refresher on the SAPFO because many board members were not on the respective boards in 1999 when SAPFO was thought of and in 2003 when it was adopted. Schools Adequate Public Facilities Ordinance (Schools APFO) Adopted July 2003 DEFINITION AND PURPOSE: OAn Ordinance of the county and towns Olnter-local memorandum of understanding with both school districts OMaximum extent practical, approval of new residential development OSynchronized with the availability of capacity APPLICABILITY: Two overlay districts were created; one for each school district Appropriate school board of education (BOE) and town and county participants COLLABORATIVE PROCESS TO IMPLEMENT SCHOOLS APFO: Over three years of monthly meetings Various partners Associated attorneys Choreographed through the Schools and Land Use Councils By the County Planning Department ELEMENTS OF THE ORDINANCE: Topic Standard Level of Service Elementary Schools 105% of Capacity Middle Schools 107% of Capacity High Schools 110% of Capacity ELEMENTS OF THE ORDINANCE Topic Standard Building Capacity 2003 NC Dept Public Instruction and updates Capital Investment 10-year Program Plan ELEMENTS OF THE ORDINANCE: Topic Standard Student Growth Rate Average 5 Different Projection Methods Student Generation Rate 2001 TISHLER STUDY ADMINISTRATIVE IMPLEMENTATION: oA Certificate of Adequate Public Schools (CAPS) computer program oTrack existing membership and capacity oTest for and log new development impacts against capacity levels oLocal governments approve feasibility oBOE staff confirms adequate capacity oCAPS certificate given to local government for final approval UNIQUE AND INTERIM CONDITION: Olnitialization: one school level in each school district was over the rated level of service OBoth schools programmed in the CIP OCAPS system starts OSuspended the adequacy tests until the new schools came on line FOUR ELEMENTS OF A SAPFO PROGRAM - Comprehensive Plan (public facilities planning) - Capital Improvement Program and Budget (finance) - Adequate Public Facilities Ordinance (regulation) - CAPS Management System (administrative) SIMPLE PROCESS oNovember 15— receive actual numbers oBOCC accepts new numbers and restarts annual CAPS program oPlanners, Schools Technical Advisory Committee (PSTAC) develops report including new student projections (December, January) oUsed in budget process (December— March) oReport distributed to parties for comment and adopted by BOCC in Spring Craig Benedict said that there has not been a need in Orange County to defer development because of the SAPFO, but it has been very close. Commissioner Nelson asked about the process of having to defer development and Craig Benedict went through this. On November 151h, the school districts will provide actual student membership. If at that time, the actual numbers exceed the level of service capacity numbers in the annual reports, there will be no capacity for developments to come forward for approval. Commissioner Gordon asked about the effect on building capacity of the State changing the class size. Craig Benedict said that the State changed it a few years ago, and these numbers were not instantly put in the SAPFO. When the numbers were put into effect, it absorbed a lot of the capacity that was created by a new school. Superintendent Pedersen said that this year the original State budget had class size increasing, but the Governor's approved budget did not raise class sizes, but it mandated that class sizes in K-3 remain the same. Lisa Stuckey asked Craig Benedict about development projects in the pipeline and Craig Benedict said that there are not any large ones in either school district. There is more redevelopment in Chapel Hill. There is still some debate about mixed-use and purely residential development and when the SAPFO applies. Debbie Piscitelli asked about the growth rate in each school district over the last six years and also the County's growth rate in the last six years. Craig Benedict showed a chart that tracks the growth rates. The growth in OCS has been less than 1%. The information is being tracked very specifically. Commissioner Gordon said that in an economic downturn, this will be the first serious test of SAPFO and the cooperative agreement between the County, the Towns, and the school districts. She thinks that it is important to maintain the SAPFO. She said that Orange County is the envy of other school districts because of this agreement. Commissioner Jacobs agreed with Commissioner Gordon and said that he would like to see some more analysis of the unintended consequences. He thinks that one of the unintended consequences is that Orange County has some the highest property taxes in the State. It also stops development, stops school impact fees, and affects the County's revenue. He thinks it is a more complicated issue than the stakeholders have come to terms with. Commissioner Gordon said that she is pleased that the SAPFO spoke to the building of new schools, but she is also concerned about the older schools. Ted Triebel agreed with Commissioner Jacobs that there should be some type of capital fair funding, which would be some type of formula between new construction and the cost of maintaining old schools. He suggested having an ad hoc committee look at this. Commissioner Nelson agreed about creating some type of formula. Lisa Stuckey said that if a group like this forms, then there should be a bus tour of schools in both school districts. Commissioner Jacobs suggested that the school collaboration group initiate an approach to this idea. 5. ADJOURN FOR CLOSED SESSION A motion was made by Commissioner Hemminger, seconded by Commissioner Jacobs to adjourn into closed session: to consider the qualifications, competence, performance, character, fitness, conditions of appointment, or conditions of initial employment of an individual public officer or employee or prospective public officer or employee"NCGS § 143-318.11(a)(6)"; and to "to consult with an Attorney retained by the Board in order to preserve the attorney-client privilege between the attorney and the Board,"NCGS§ 143-318.11(a)(3). VOTE: UNANIMOUS Valerie Foushee, Chair Donna S. Baker, CMC Clerk to the Board