HomeMy WebLinkAboutMinutes - 20091020 APPROVED 11/17/2009
MINUTES
ORANGE COUNTY BOARD OF COMMISSIONERS
REGULAR MEETING
October 20, 2009
7:00 p.m.
The Orange County Board of Commissioners met in regular session on Tuesday,
October 20, 2009 at 7:00 p.m. at the Southern Human Services Center in Chapel Hill, NC.
COUNTY COMMISSIONERS PRESENT: Chair Valerie P. Foushee, and Commissioners
Alice M. Gordon, Pam Hemminger, Mike Nelson, Bernadette Pelissier, and Steve Yuhasz
COUNTY COMMISSIONERS ABSENT: Barry Jacobs
COUNTY ATTORNEYS PRESENT: John Roberts
COUNTY STAFF PRESENT: County Manager Frank Clifton, Assistant County Managers
Willie Best and Gwen Harvey, and Deputy Clerk to the Board David Hunt (All other staff
members will be identified appropriately below)
NOTE: ALL DOCUMENTS REFERRED TO IN THESE MINUTES ARE IN THE PERMANENT
AGENDA FILE IN THE CLERK'S OFFICE.
1. Additions or Changes to the Agenda
Chair Foushee went through the items at the County Commissioners' places:
- Letter from the Cultural Center Committee
- Revision of item 4-o - Change in BOCC Regular Meeting Schedule for 2009
(location for joint meeting with Alamance County) (pink sheet)
- A reference sheet for item 10-a (Rogers Road Sewer Planning Group — New
Appointments) based on an email from Carrboro Mayor Chilton (lavender sheet)
- Water level report (aqua sheet)
PUBLIC CHARGE
The Chair dispensed with the reading of the public charge.
2. Public Comments
a. Matters not on the Printed Agenda
Tinka Jordy spoke on behalf of the Cultural Center Committee. She read a prepared
statement.
"Since 2005, we have worked to implement a vision for the creation of an Orange
County Cultural Center. In April, 2008, we presented you with detailed ideas and
documentation regarding our proposed creation of such a center. Tonight, because of the
eminent vacancy of the Whitted Building, we present to you a document that further details the
potential economic benefit of arts and culture for our county.
There is a wealth of cultural capital in our community. There are more than 1,400
artists listed in the Orange County Arts Commission's database. We have many nationally
recognized artists including painters, photographers, filmmakers, pots, writers, and more. Our
county is home to individuals and organizations that make valuable efforts to protect and
archive our cultural history for the benefit of all our citizens.
There is a perennial need for space and venue for the expression of the arts and
humanities. Performance, rehearsal space, gallery, and studio space is difficult to secure in
Orange County, as are office, meeting, and teaching facilities. Locating multiple entities, with
a shared focus on art, culture, history, and heritage, in one physical location; would encourage
a dynamic exchange of inspiration, ideas, and work, as well as an opportunity share resources.
Appreciation of cultural assets has a significant economic impact on Orange
County. According to the Orange County Visitor's Bureau, spending by domestic U. S.
travelers totaled $152 million in Orange County during 2008. That equals a 3.2 percent
increase over 2007. More than 1,700 jobs in Orange County were directly attributable to travel
and tourism last year, an increase from 2007. Travel generated a 29.9 million dollar payroll in
the county. Arts and historical attractions bring these visitors and help to express what is
unique to our area. A vibrant cultural center would serve as yet another magnet for visitors.
The work of our Cultural Center Committee toward the creation of this public space
continues in earnest. Our countywide coalition supports using the Whitted Building for this
much needed Cultural Center. The Whitted building, located in the historic district, was
formerly the site of Hillsborough High School. It has for years already been a "cultural center"
by most people's definition. Throughout its history as a high school, and later as the public
library and many other public uses, the Whitted Building has been a place of gathering and
uniting cultural and creative inspiration.
Tonight we seek your consensus that the cultural needs of the citizens of our County,
when combined with the "people's history" of this building as a valuable and public space,
warrants special attention with regard to the assignment of its future use.
We respectfully request that the Board of Commissioners appoint a task force to
objectively investigate the potential for the Whitted Building —for its highest and best use, for
the benefit of all citizens of Orange County. Thank you very much."
Ms. Jordy also presented a document detailing the benefits of a Cultural Center in
Orange County, which is incorporated by reference.
b. Matters on the Printed Agenda
(These matters were considered when the Board addressed that item on the agenda
below.)
3. Proclamations/ Resolutions/ Special Presentations-NONE
4. Consent Agenda
A motion was made by Commissioner Yuhasz, seconded by Commissioner Hemminger
to approve those items on the consent agenda as stated below:
a. Minutes
The Board approved the minutes from September 15 and 22, 2009 as submitted by the Clerk
to the Board.
b. Appointments — None
c. Motor Vehicle Property Tax Release/Refunds
The Board adopted a refund resolution, which is incorporated by reference, related to 73
requests for motor vehicle property tax releases or refunds in accordance with NCGS.
d. Grant Application to North Carolina Association of County Commissioners for
Wellness Program
The Board authorized submission of the County's wellness grant application to the North
Carolina Association of County Commissioners Risk Management Pool for Employee Wellness
Program funding; accepted any funds awarded; and established a grant project ordinance to
monitor expenditures per the grantor's request.
e. Receipt of Funds for H1 N1 Influenza Response Phase I and II and Approval of Fees
for Providing H1 N1 Vaccinations
The Board accepted funds in the amount of $80,000 for H1 N1 Influenza Response Phase I
and II; approved the corresponding budget amendment; and approved the immunization
administration and counseling fees for third party payers.
f. Resolution Providing for Active Service in the Retirement System During a Furlough
Period
The Board adopted "A Resolution to Elect to Provide Furloughed Employees Who Are
Members of the Local Governmental Employees Retirement System Undiminished Retirement
Benefits"; and authorized the Chair to sign the resolution.
N.C. Forest Service Contract for FY 2009-10
The Board received the information about the Forest Service activities, approved the annual
agreement between Orange County and the N. C. Department of Environment and Natural
Resources for FY 2009-10, and authorized the Chair to sign the agreement.
h. Addendum to Existing Inter-local Agreement for Tax Collections
The Board approved the recommended Addendum and authorized the Chair to sign the
Addendum; directed the Manager to forward the Addendum to the corresponding jurisdictions
for approval and signatures; and directed the Financial Services Director to establish a reserve
account to be held for future enhancements and payment required for law-change
requirements over and above the yearly maintenance cost for participation with the software
vendors.
i. Professional Services Agreement— Marketing by Jennings & Company for the
Visitors Bureau
The Board approved a professional services agreement for marketing communications
management with Jennings & Company for the Visitors Bureau, authorized the Chair to sign;
and directed that the funds be encumbered in the 2009-2010 Visitors Bureau budget.
L Contract Award for Architectural Services, Piedmont Food and Agricultural
Processing Center
The Board approved the Architectural Professional Services Contract with Corley Redfoot Zack
for the Piedmont Food an Agricultural Processing Center project and authorized the Chair to
sign.
k. Grant Submittal to the Rural Advancement Fund International USA Tobacco
Communities Reinvestment Fund for the PLANT @ Breeze Farm Enterprise Incubator
at the WC Breeze Family Farm Extension & Research Center
The Board authorized staff to submit a $30,000 grant proposal to the Rural Advancement
Fund International USA Tobacco Communities Reinvestment Fund for the PLANT @ Breeze
Farm Enterprise Incubator at the WC Breeze Family Farm Extension & Research Center.
I. Creation of Additional Staff Attorney Position for the County Attorney's Office
The Board approved a new, full-time Staff Attorney position effective January 4, 2010;
appropriated $119,664 from fund balance to offset estimated new position costs ($41,693) and
unbudgeted legal contract costs ($77,971) in FY 2009-10; amended the County Attorney's
Office's FY 2009-10 budget to include personnel and operating expenses for the new Staff
Attorney position and the unbudgeted legal contract costs; and authorized a budget
amendment for the necessary expenditures.
m. Adoption of Bond Order Authorizing General Obligation Refunding Bonds in the
Maximum Amount of$27,000,000 to Refund Public Improvement Bonds Issued in
2001 and 2003 and Approval of Resolution Regarding Publication of Bond Order
The Board adopted the Bond Order for the issuance of General Obligation Refunding Bonds in
the maximum amount of $27,000,000to refund Public Improvement Bonds issued in 2001 and
2003; and adopted the Resolution Regarding Publication of Bond Order.
n. Fiscal Year 2009-10 Budget Amendment #3
The Board approved budget, grant and capital project ordinance amendments for fiscal year
2009-10 for Animal Services, Housing and Community Development, Register of Deeds,
Health Department, Sheriff Department, Department of Social Services, Department on Aging,
Legal Services, County Capital Project Ordinances, and Solid Waste — Bradshaw Quarry
Convenience Center.
o. Change in BOCC Regular Meeting Schedule for 2009
The Board amended its regular meeting calendar for 2009 by adding a Board of County
Commissioners'joint meeting with Alamance County on Monday, November 9, 2009 at 7:00
p.m. The meeting will be held at Alamance Community College in the Auditorium, Room 301
in the main building, 1247 Jimmie Kerr Road, Graham. The college is located at the Haw River
Exit, #150.
• Acceptance of Funds for Work First Subsidized Employment
This item was removed and placed at the end of the consent agenda for separate
consideration.
• Contracting with Property Information Management System Software Vendors,
Project Managers, and Transitional Contract Assistance
The Board
1) authorized the County Attorney to develop/finalize the appropriate documents and
contracts for implementing the Property Information Management System (PIMS)
software including:
o Two contracts for the software vendors (Patriot Systems and IIS)
o One for the licensing agency for the Billing and Collections component
(NCACC) and
o Two for the project management consulting firms (Barry Strock Consulting
Associates and Visser Project Management Associates);
2) Authorized the Chair to sign all documents and contracts as developed by the
County Attorney;
3) Authorized the County Manager to approve and sign contracts for transitional
assistance with contract or temporary employees not to exceed $250,000;
4) Authorized the County Manager to approve and sign contracts for additional
customizations to the software not to exceed $300,000; and
5) Authorized the County Manager to approve and sign future contracts for PIMS
related hardware purchases not to exceed $75,000.
r. Approval of BOCC Retreat Agenda
The Board approved the proposed Board retreat process for November 14, 2009 full day
retreat.
VOTE ON CONSENT AGENDA: UNANIMOUS
ITEMS REMOVED FROM CONSENT AGENDA:
Acceptance of Funds for Work first Subsidized Employment
The Board considered accepting federal funds to support short term employment for
Work First recipients and approving use of temporary positions for the employees.
Chair Foushee said that at yesterday's Social Services Board meeting she learned that
the Board may want to revise this item. She asked Social Services Director Nancy Coston to
speak on this.
Nancy Coston said that she has received notification that Orange County will be
receiving this money, but she also found out that the request could be amended for additional
funds. She wants to make sure that whatever the Board accepts tonight would allow for
accepting additional funds and to allow her to work with private employers.
Frank Clifton said to amend the Manager's recommendation to authorize the
Department of Social Services to receive additional funds as they become available and to
work with the private sector to grant employment opportunities.
A motion was made by Commissioner Nelson, seconded by Commissioner Hemminger
to authorize the acceptance of funds from the North Carolina Division of Social Services and
authorize the Director of Social Services to utilize up to twenty temporary positions for
employment through September 30, 2010; and authorize the Department of Social Services to
receive additional funds as they become available and to work with the private sector to grant
employment opportunities.
VOTE: UNANIMOUS
5. Public Hearings
a. Utility Extension Fund Request
The Board considered approving disbursement of the requested utility extension
reimbursement for utility improvements in support of an entrepreneurial aquaculture facility in
Cedar Grove and authorizing the Chair to sign the agreement.
Dottie Schmitt with the Economic Development Commission summarized this item.
BACKGROUND: As provided in the Attachment A of Attachment 1 (page 5) the Utility
Extension Fund (Fund) Procedures that were established in 1993 were designed to encourage
economic development in Orange County by funding a portion of utility improvements
necessary for commercial development. The Fund procedures require a maximum 5-year
payback in increased property taxes and must meet the following criteria:
1. Project must have proper zoning;
2. Project must improve job opportunities for Orange County residents;
3. Project must provide jobs with wage scales in compliance with Orange County
standards; and
4. Project must have a positive fiscal impact upon Orange County government.
The current Fund applicant, Taylor Fish Farm, is a state-of-the-art aquaculture facility located
in the Cedar Grove Township of Orange County. The farm is housed in a "barn" slightly
smaller than a football field where Tilapia is raised from fingerling through average harvest
size. The custom-designed facility utilizes an indoor recirculating water system and an
anabolic digestive system designed with the support of NC State aquaculture extension
agency. The production facility has been sized to produce approximately 250,000 lbs of
Tilapia on an annual basis. Potential expansion plans include harvesting the liquid and solid
by-products of the aquaculture process as a natural source of plant food and development of a
hydroponics greenhouse with nutrients supplied by the aquaculture waste products.
Construction of the facility required installation of two wells and a septic system and installation
of three phase electric power source along Lonesome Road to the facility. The availability of
three phase power may encourage additional commercial endeavors in the immediate area.
An assessment of the value of the improvements was conducted August 2009. The value is
estimated at $193,762 for 2010. An assessed value of $97,502 for 2009 reflects partial
completion. At peak production, gross annual receipts are anticipated to be approximately
$500,000.
The Taylor Fish Farm meets the stated requirements provided in the `Utility Extension Fund
Procedures' (Orange County, December 21, 1993) for receipt of reimbursement from the Fund
as follows:
1. The Project must have the proper zoning at the proposed site: The property is currently
zoned AR (Agricultural Residential) which allows for a bona fide farm operation.
2. The project must improve job opportunities available to Orange County citizens,
especially for women and minorities: The construction plans for the aquaculture facility
originally proposed were revised to focus on the residents of Orange County (see
Attachment B of Attachment 1 - July 15, 2009 article from The Herald-Sun). Taylor
Fish Farm currently employs three permanent full time workers and one part time
worker. An estimated five seasonal workers will be employed during the harvesting
cycle which will occur every six weeks.
3. The project must provide jobs with wage scales in compliance with Orange County
standards: The current living wage in Orange County is $10.12 per hour. All current
employees of Taylor Fish Farm receive wages in excess of the current living wage.
4. The project must have a positive fiscal impact upon Orange County government: The
revised property tax assessment completed in August 2009 documents that the project
improvements have increased the property value form $5,916 to $193,762, resulting in
a projected net increase in property taxes of approximately $9,447 over five years of
full scale operation. A fiscal impact analysis is included as Attachment C of
Attachment 1.
Disbursement of the requested $9,447 from the Utility Extension Fund for this project was
unanimously approved by the Economic Development Commission at its September 10, 2009
meeting. The information packet (provided as Attachment 1) includes a background of the
Fund.
A draft of the resolution approving the agreement between the County and Taylor Fish Farm is
provided as Attachment 2. A draft of Exhibit A - Utility Extension Fund Agreement is provided
as Attachment 3. A Notice of Public Hearing as required by NC Statute 158-7.1(c) is
provided as Attachment 4.
FINANCIAL IMPACT: The project will result in an expenditure of $9,447 from the Utility
Extension Fund.
RECOMMENDATION(S): The Manager recommends that the Board, subject to all Fund
requirements being met:
• Receive public comments regarding the agreement between Orange County and
Taylor Fish Farm;
• Close Public Hearing;
• Deliberate as necessary;
• Approve the Resolution and Agreement with Taylor Fish Farm and approve
disbursement of the requested funds from the Utility Extension Fund; and
• Authorize the Chair to sign the Resolution and Utility Fund Extension Agreement on
behalf of the Board.
Frank Clifton asked Mr. Taylor to tell about the fish farm and aquaculture.
Mr. Taylor represents Taylor's Fish Farm. He said that this is a state of the art facility
and he is doing this in conjunction with N.C. State. He said that he uses only labor from the
surrounding area in Cedar Grove. He said that they are six weeks from completion of this
project. At this time, the business brings in about 23,000 fish every 6 weeks. They take small
tilapia and raise them to sell to a live market. The fish are sold live. The current value of the
property is $866,000. He said that this project is increasing the tax base of the community and
keeping friends and family working together.
Commissioner Hemminger asked if this project was very water-intensive. Mr. Taylor
said that they re-circulate the water through a system.
Commissioner Yuhasz asked how the Utility Extension Fund is replenished.
Dottie Schmitt said that the difference in payback is computed off the increase in
property taxes from the first five years of operation.
A motion was made by Commissioner Nelson, seconded by Commissioner
Hemminger to close the public hearing.
VOTE: UNANIMOUS
A motion was made by Commissioner Nelson, seconded by Commissioner
Hemminger to approve the Resolution and Agreement with Taylor Fish Farm and approve
disbursement of the requested funds from the Utility Extension Fund; and authorize the Chair
to sign the Resolution and Utility Fund Extension Agreement on behalf of the Board.
VOTE: UNANIMOUS
6. Regular Agenda
a. Heritage Center Work Group Interim Report
The Board considered receiving an initial report of the 2009 Heritage Center Work
Group, discussing the findings outlined in the report, and authorizing the Work Group to
proceed with the next steps.
Barbara Baker, Facilitator of the Work Group, made this report.
BACKGROUND: On June 16, 2009, the Board of County Commissioners approved the
composition and charge of a Heritage Center Work Group to respond to recommendations
from past task forces. Based on the work of three library task forces (2000, 2004 and 2007)
and a subgroup of the 2000 effort (an archival task force), the 2009 Work Group members
were charged with providing the BOCC with a clear snapshot of the financial and operational
requirements needed to support the needs and expectations of such a facility. Specifically, the
group was asked to do research and make recommendations related to the scope,
organization, financing, administration, collection development, and public/ private support for
a proposed Heritage Center.
The members of the Heritage Center Work Group are:
• Lucinda Munger, Director, Orange County Libraries
• Elizabeth Read, Executive Director, Alliance for Historic Hillsborough
• Darcie Beecroft Martin, Executive Director, Orange County Historical Museum
• Katharine Paulhamus, Executive Director, Burwell School
• Richard Ellington, Representative, Durham — Orange Genealogical Society
• Tina Moon, Staff to the Orange County Historic Preservation Commission
• Traci Davenport, Director, Chapel Hill Museum
• Ernest Dollar, Director, Preservation Society of Chapel Hill
• Laurie Paolicelli, Executive Director, Chapel Hill / Orange County Visitors Bureau
• Nicole Ard, Assistant Town Manager, Town of Hillsborough
• Carl Baumann, Volunteer, Service Corps of Retired Executives (SCORE)
• Carl Allen, Business Owner, Allen Financial Services
• Tamia Buckingham, Business Owner, Buckingham Business Services
• Danny Lloyd, Hillsborough City Executive, Cardinal State Bank
• Barbara Baker, Facilitator of the Work Group, Retired from DTCC
The Work Group's preliminary report with 1) a memorandum with further background, 2) a
worksheet on the anticipated scope of the Heritage Center, and 3) a memorandum on funding
for a consultant is included as Attachment #1. Key conclusions and recommendations are as
follows:
• Orange County's historic legacy should be preserved for future generations. These
irreplaceable historic resources currently housed at the various historical organizations
in Hillsborough, at the Public Library and elsewhere throughout the County are at risk of
deterioration and are inaccessible to the public for research. The County needs an
archival facility for proper storage and to provide public access to these collections.
• A public-private venture, where the County partners with a 501(c)3 non-profit status will
likely offer the most optimal funding option for such a facility. The Historical Foundation
of Orange County and Hillsborough (an independent organization which is also under
the umbrella of the Alliance for Historic Hillsborough) may be able to serve as the non-
profit partner under a negotiated arrangement.
• The Work Group recommends contracting with an expert consultant to "flesh-out" its
feasibility study with the details needed to pursue grant funding and to provide the
County with CIP and related budget information to bring this project into fruition. The
Chapel Hill — Orange County Visitor's Bureau has identified and it Board authorized
$5,000 which could be used for this purpose.
• The County may have a suitable building in its existing surplus stock that could be
retrofitted for an archival facility at a much lower cost than new construction should the
BOCC ultimately choose to fund development of a proposed Heritage Center.
FINANCIAL IMPACT: The Chapel Hill — Orange County Visitor's Bureau has identified $5,000
in its existing budget which could be used for hiring a consultant to prepare a more detailed
plan for a Heritage Center/ Public Archive facility.
RECOMMENDATION(S): The Manager recommends that the Board accept the initial findings
in the 2009 Heritage Center Work Group Report and authorize the Work Group to proceed
with the following next steps:
1. Hire a consultant from funds provided by the Chapel Hill — Orange County Visitors
Bureau to prepare a more detailed plan and do research including:
a. Surveying and making a recommendation on available facilities;
b. Analyzing collections in the County to determine what items would be
appropriate to be housed in the Heritage Center collection;
c. Analyzing and listing needed equipment;
d. Analyzing staffing needs;
e. Developing a proposed budget; and
f. Identifying potential private and public funding sources.
2. Assess the interest, intentions and requirements of the Board of Directors and
administrative staff of the Historical Foundation of Hillsborough and Orange County
about adding Heritage Center functions to its current offerings; and
3. Charge the 2009 Heritage Center Work Group to report on the findings of the
consultant and make further recommendations before May 2010.
Commissioner Pelissier said that this is the 41h time that a work group has looked at this
issue and asked if this is the first time a consultant was proposed. Barbara Baker said that
she does not think that a consultant has been hired to talk about the archival issues. There
was a consultant to talk about library issues, but not specifically the archival and sensitive
materials issues.
Commissioner Nelson said that he served on two of the four committees, and this issue
of the Heritage Center, while this was discussed, it was done only briefly.
Commissioner Gordon said that the County needs a comprehensive approach to a
library and/or museum. She made reference to the financial models and how a model would
compare to the way the ArtsCenter is funded and how it works. She said that a non-profit
could take the lead. She asked for elaboration on the public/private partnership.
Barbara Baker said that the work group came to a point in the discussions where they
realized that they did not have the expertise or the knowledge to deal with the details. The
thinking was that if there was public/private partnership, that the private agency or the non-
profit could take the lead in getting grant funding.
Commissioner Gordon asked that the various models include what has been successful
in Orange County.
Frank Clifton said that this is the second group that has mentioned surplus County
properties and he is not aware of much free space, because the county has a space issue. He
suggested that before the Board makes any decisions about properties that it will look at
County needs first.
Commissioner Nelson said that people have convinced him that there is a need for this
type of facility and that this might have some economic development potential. He said that he
does not see any private entities that have offered to put money on the table for this venture.
He said that if this public/private partnership is done, it needs to be done through a 501(c)3
and he is afraid that this will end up being funded by the public factor. He said that he is not
inclined to support spending $5,000 for a consultant.
Barbara Baker said that it is too early in the process to get any commitments yet from
the private sector.
Commissioner Nelson said that he would feel more comfortable with this if the $5,000
were split between the private and public partners.
Laurie Paocelli, Director of the Orange County Visitor's Bureau, said that the Bureau
got involved with this project about six months ago when the news started to appear that there
may not be room in the new library for the genealogical archives. She said that the Bureau
often works with product development in the various towns of the County. Each year, they set
aside about $10,000 to really study and look at the efficacy of bringing in projects like this that
will cost a lot. She said that the Bureau might be able to help the County by overseeing the
$5,000 investment and using a researcher that they use to see if this would really bring visitors
to town and other concerns.
Commissioner Nelson said that his concern is the relationship and if the funds will
actually pan out.
PUBLIC COMMENT:
Timia Buckingham said that she is a member of the work group and a business partner
on this group. She said that she has the same concerns as Commissioner Nelson. She said
that she wants to find an existing 501(c)3 to overcome the obstacles of starting from scratch.
Frank Clifton said that the study effort is a worthwhile endeavor at this time because of
the professional insight.
A motion was made by Commissioner Nelson, seconded by Commissioner Hemminger
to authorize the Work Group to proceed with the next steps as shown above, asking the task
force to take into account the questions raised by the County Commissioners.
VOTE: UNANIMOUS
b. Approval of Contract to Purchase Real Property from the Draper-Savage
Memorial Foundation (Historic Moorefields)
The Board considered authorizing Orange County's purchase of approximately 13
acres of land from the Draper-Savage Memorial Trust (Historic Moorefields) for an important
addition to the planned Seven Mile Creek Preserve and authorizing the Chair to sign, subject
to final review by staff and County Attorney.
Dave Stancil said that the Seven Mile Creek Nature Preserve has been a high priority
for the Lands Legacy program for a long time. This preserve also adjoins Historic Moorefields,
which was built circa 1785 and was the home Supreme Court Justice Alfred Moore. The
Draper-Savage Memorial Foundation is currently the owner of this property.
Land Conservation Manager Rich Shaw made the PowerPoint presentation, including
maps. For the past few years, ERCD has pursued acquiring the Historic Moorefields property.
The entire tract is 84 acres, and the County is pursuing 13 acres. There is County land directly
adjacent to this property on the west side.
The Friends of Moorefields has agreed to sell the County this property for the
appraised value of $143,000. The purchase contract has been signed by the Friends of
Moorefields. The closing costs are anticipated to total $6-8,000, which brings the total to
approximately $151,000. Funds would be paid from existing or reimbursable funds from the
County's 2001 Parks and Open Space bond (Lands Legacy). Approximately $2.8 million
remains from the 2001 bond total.
The recommendations are:
1. Approve the purchase of approximately 13 acres of land located north of
Moorefields Road from the Draper-Savage Memorial Foundation.
2. Authorize the Chair to sign the contract on behalf of the County, subject to final
review by staff and County Attorney;
3. Exempt this project from the surveyor selection process as provided in the N. C.
General Statute 143, Article 3D;
4. Authorize the hiring of a surveyor to complete a boundary survey and plat of the
property for recording in conjunction with the transaction in an amount not to
exceed $6,000, and authorize the Manager to sign the contract; and
5. Instruct the County Attorney and staffs from ERCD and Finance to schedule and
complete a closing on the property expected to occur on or about December 31,
2009.
Commissioner Gordon said that she would like to, by consensus, add to number one
the specific amount of the purchase of $143,000. The Board agreed.
Commissioner Pelissier asked about the parking area and if it is forested right now. It
was answered that it is forested, and it would have to be cleared. There is no plan for a large
parking area.
A motion was made by Commissioner Hemminger, seconded by Commissioner Nelson
to approve the recommendation as shown above, with the change to number one as stated by
Commissioner Gordon.
VOTE: UNANIMOUS
c. Efland-Buckhorn-Mebane Corridor Water and Sewer Status Report
The Board considered an overview and status of various sewer and water projects in
the Efland-Buckhorn-Mebane Corridor and approving pursuit of North Carolina State Revolving
Loan Funds to complete and complement Environmental Protection Agency Special
Appropriations grant for Central Efland and North Buckhorn sewer improvements.
Craig Benedict summarized this item and showed the areas on a map.
BACKGROUND: There are multiple projects in this corridor. Some of the projects already
exist and some proposed. In order to create a good background document and since many of
these various projects are inter-related, a complete summary list is included as Attachment 1.
However, the focus of this agenda item and discussion will be linked to the:
Central Efland and North Buckhorn EPA SPAP grant sewer project.
The EPA SPAP grants will be part of the Central Efland (Project 6) and Northern Buckhorn
(Project 5). $900,000 (2003) and $500,000 (2005) were appropriated by Congress and
through Congressman David Price's office. Since this project (2 areas) is in North Carolina,
the Environmental Protection Agency (EPA) has delegated certain review (environmental and
construction plans) oversight to the North Carolina Department of Environment and Natural
Resources (DENR), Water Quality Section.
The environmental review has been in process with DENR since May 2008 based on a
Preliminary Engineering Report (PER) prepared by the County's engineering consultant
Coulter, Jewell & Thames (CJT). EPA cannot officially award the grant until this environmental
review is complete.
Planning Director Craig Benedict and Assistant County Kevin Lindley have met directly with
EPA officials in Region 4 in Atlanta and DENR representatives in Raleigh over the last three
weeks to bring this phase of the process to fruition.
DENR reports that its review and letter of recommendation to the EPA is scheduled within 10
days. The review notes an environmental Categorical Exclusion (CE), which should allow the
project to move more expeditiously at the next stage (i.e. EPA grant award and then back to
DENR for construction plans and specs permit review). This construction plan review has
been concurrent with the environmental review.
In the meeting on September 29, 2009 with DENR officials, Assistant County Manager Willie
Best, Craig Benedict and Kevin Lindley offered the likelihood of state revolving loan fund
(SRF) monies to complete both projects not covered by the EPA grant.
As noted in the March 2008 BOCC abstract from County Engineer Paul Thames (now retired),
additional monies would be necessary to complete the projects beyond the EPA grant and
County allocated funds. The EPA grant is a 55% match and the SRF can be used for the local
match. SRF fund repayment is not until the projects are complete, which will allow for a better
horizon for debt capacity. The projects are scheduled for completion in late 2012. As a
reminder, Central Efland sewer systems will be pumped to the Town of Hillsborough per an
existing agreement and North Buckhorn sewer systems flow to the City of Mebane.
County monies can be used for easement acquisition, engineering fees and an upgrade to the
existing McGowan Creek Sewage Lift Station (part of the existing Central Efland sewer
system) which was not included in the CJT engineering design work for Central Efland sewer
extensions. EPA grant monies were suggested by EPA to be focused on construction
activities.
Buckhorn EDD— Mebane Coordination
This information relates to the continued utility planning with the City of Mebane consistent with
the March 1, 2004 Orange County/City of Mebane Utility Service Area Agreement.
Specifically, the agreement includes the City of Mebane's agreement for utility extension by
private/public entities into an approximate 1,000-acre EDD area. However, there were not
specific allocations reserved for that area that would help Orange County obtain certified
business site status by the State. In addition, utility design planning has not been completed
to illustrate how an orderly plan of development could occur and/or how an anchor
development such as Buckhorn Village could support the utility master plan for the larger
Buckhorn EDD.
To this end, Orange County, City of Mebane, Buckhorn Road Associates and its engineering
consultants (Summit Engineers) embarked on a conceptual investigation to find out;
a. what needs to be done,
b. in what sequence
c. for what design costs, and
d. eventual construction cost.
See Attachment 3 which shows preliminary ideas.
As this information is refined, this topic will come back to the BOCC for discussion. The
apportionment of funds to complete certain phases will be the subject of upcoming
conversations. Utility work of this nature would likely be handled by a developer's agreement
(DA) recently authorized by 2005 state legislation and/or interlocal agreements.
EPA grants from Congressional appropriations in 2003 and 2005 amount to $1.4 million.
Three percent (3%) of that amount is released to DENR to assist in the administration of the
grant. The grant is yet to be secured pending the full funding program for the entire project.
Tonight's agenda item, if approved, will act as the complement to the EPA 55% grant match in
the form of a commitment to pursue NC State Revolving Loan Funds (SRF). These funds in
the amount of approximately $3.5 million can act as a local match. Debt capacity schedules
previously provided by staff with the Capital Investment Plan have anticipated the issuance of
$1.9 million in additional Alternative Financing for this project.
The Efland Sewer Project in the County Capital Project fund has approximately $900,000
remaining for Central Efland sewer improvements. In addition, the County has spent over
$400,000 on the design (with CJT) of sewer facilities and Gravelly Hill Middle School water
system in the Efland-Buckhorn area. These monies would not be sufficient to create a 45%
match nor would they be sufficient to complete the total project of $4.7 million. The County
would need to pursue other funding sources as noted by former County Engineer Paul
Thames in the March 2008 presentation to the BOCC.
The $900,000 will be necessary to conduct and/or purchase/negotiate easements,
encroachment agreements and acquisitions of land for a sewage lift station if necessary. In
addition, this County money will be suggested to be used for an upgrade to the primary Efland
sewer system lift station at McGowan Creek which is 20 years old. Design for this upgrade
has not been agreed upon nor authorized nor is suggested to be part of the EPA SPAP/SRF
project. The peer engineering review suggested in this abstract recommendation will assist in
developing strategies for the lift station upgrade.
Attachment 4 is a spreadsheet that illustrates construction costs and how costs were required
to be shown in the project's Preliminary Engineering Report (PER). As a related note,
conversations with EPA and DENR officials suggested that grant monies be focused on
construction line items and not design and procedural support (i.e. easements, acquisitions,
etc.).
FINANCIAL IMPACT: State Revolving Fund loans are not due until project completion which
is anticipated in late 2012 or 2013. The existing loan interest rate is presently 2.5% and the
maximum term of the loan is 20 years. The payment would be approximately $235,000 a year
based on repayment over 20 years with level debt service payments. Debt service capacity is
anticipated to be in a better position in these ensuing years. The debt service payments on the
loan would be approximately $70,000 greater than the debt service projected in the debt
capacity schedules for the additional $1.9 million in Alternative Financing.
RECOMMENDATION(S): The Manager recommends the Board:
1. Authorize the Manager to apply for NC SRF to complete:
a. Central Efland Sewer
b. North Buckhorn Sewer
In the amount of $3.5 million;
2. Authorize the County Attorney and Planning Department to pursue acquisition of
easements and/or right-of-way encroachment for Central Efland and North Buckhorn;
and
3. Authorize the Planning Department to hire a peer review engineering firm not to exceed
$10,000 for the Central Efland and North Buckhorn projects to examine all alternatives
and design standards for these projects.
Commissioner Gordon asked about the match and Frank Clifton said that the EPA
grant and local dollars will only pick up part of the project. He said that the recommendation is
to get a loan from the State Revolving Loan Fund. He feels that a peer review is needed for
this project.
Commissioner Gordon said that her understanding is that they have laid out what they
need to do in Attachment 1 and the cost is in Attachment 4, which is about $5.6 million. She
said that this cost crept up on us and she does not see where the County has the money to do
this project because there are obligations for the CIP and there is more on the horizon.
Frank Clifton said that the County made a commitment 20 years ago to put in this
sewer and there is a chance to get an EPA grant and to borrow money from the revolving state
fund. The County has already spent $400,000 on engineering.
Commissioner Gordon asked again where the money would come from. Frank Clifton
said that it would come from users of the system as the system is expanded and as there is
some economic development. He said that the price of the system would not get any cheaper
five years from now.
Craig Benedict said that when this came to public hearing in May 2008, the County
Commissioners authorized $2.5 million in the Long-Range Capital Improvement Program for
this.
Frank Clifton said that the existing pump station could fail at any time and it is 20 years
old. If this fails, then there will be a big problem. He said that the County is not in the utility
business, but yet it is, and it has not managed its end of the system very well.
Commissioner Yuhasz said that in 1988 the County promised the residents a sewer
system and the then the sewer rates were increased in 2009. There have been consistent
pledges all along and it will cost more than was originally thought because it is 20 years later.
He said that this is the backbone of the economic development district and it is an investment.
He asked about the peer review and if this would require changes in the engineering plans and
how it might affect the timing. Frank Clifton said that he could not answer this accurately.
Commissioner Nelson said that the County ends up in these situations a lot with trying
to fix problems that occur. This is why there is no money for new things when the county
approves the budget. He wants to get out of the cycle of spending a little money here and a
little money there outside of the budget process.
Commissioner Hemminger is concerned about when the decision comes back as to
when this system goes to Mebane or Hillsborough. Frank Clifton said that staff is mindful of
this and it will be part of the discussions. The staff is now concentrating on the engineering
and cost aspects.
Commissioner Hemminger said that she is strongly supportive of doing this in the
EDDs, because nothing is going to happen until there is a sewer utility.
Commissioner Pelissier said that she is also concerned about the financial situation,
but she knows that the County absolutely has to do this because of the promises made.
PUBLIC COMMENT:
Rev. Robert Campbell that the Rogers-Eubanks neighborhood has a 37-year promise
for water and sewer utility. He said that he did not hear anyone say anything about the
possibility of contamination in the Buckhorn area. He asked if the funds that are being used in
this area could also be used in the Rogers-Eubanks neighborhood. He asked that this be
referred to staff.
Chair Foushee said that she does support the Manager's recommendation and this is a
commitment the County needs to meet.
A motion was made by Commissioner Yuhasz, seconded by Commissioner Hemminger
to:
1. Authorize the Manager to apply for NC SRF to complete:
a. Central Efland Sewer
b. North Buckhorn Sewer
In the amount of $3.5 million;
2. Authorize the County Attorney and Planning Department to pursue acquisition of
easements and/or right-of-way encroachment for Central Efland and North Buckhorn;
and
3. Authorize the Planning Department to hire a peer review engineering firm not to exceed
$10,000 for the Central Efland and North Buckhorn projects to examine all alternatives
and design standards for these projects.
VOTE: UNANIMOUS
d. Combination and Reorganization of Assessor and Collector Departments
The Board considered the plan for reorganizing and combining the Tax Assessor and
Revenue Collections Department to allow for a smooth and efficient transition, increase
collaborative efficiencies between the multi-levels of functionality within the two current
departments, and continue working to maintain the same levels of quality service currently
provided to the public.
Orange County Revenue Tax Collections Director Jo Roberson summarized this
information.
BACKGROUND: In light of the planned retirement of Tax Assessor John Smith effective
December 31, 2009, the following plan has been developed to meet a goal established by the
Board of County Commissioners. That goal, the proposed reorganization of the two existing
Departments known as Tax Assessor and Revenue Collections into one Department to be
known as Tax Administration, is outlined below. The transition to reorganization will be a fairly
smooth process as staff has worked for over the year promoting within the two departments
the need for cohesion with a clear vision of eventual consolidation.
The vision of the Tax Administration Department will be to continuously provide fair and
equitable administration of all laws governing the assessment and collection in the Ad-Valorem
taxation process.
• Staff has developed an Organizational Chart reflecting the combination of the two
departments into one. (See Attachment 1). The basic structure of the two departments
remains intact, while moving them into defined Divisions. Each Division will have a
Manager. The Manager of each Division will be responsible for the performance of
their area. The Tax Administrator will be responsible for ensuring that the overall
operation is pursued with high efficiency and is effectively serving the public while
meeting all legal responsibilities.
• Having one Department Director responsible for the overseeing all tax related functions
will provide a clear and consistent operational direction for the County and the public.
• The reorganization plan will involve the reclassification of some positions. Study of
responsibilities and duties is occurring for potential changes to be proposed at a later
date. The reorganization has also identified the need for two additional positions.
With the added responsibilities of assessment and reclassification of the Revenue
Director to Tax Administrator, the need for an additional Deputy Tax Collector is
evident. Additionally, the workflow of the PIN/Land Records Division indicates the need
for an additional GIS Mapper I.
• Staff has developed a timeline for reorganization outlining the events related to
reorganization and the impending projects as a guide for a smooth transition.
• As the reorganization process moves forward developing the ideal structure and
workflow, there will be a thorough review of the knowledge, skills and abilities of the
current workforce within the organization. This reorganization process has identified
existing skill gaps the department will face, and efforts have already begun to address
these gaps. Additionally the process has brought forward different approaches to
accomplish functions without additional or present staff replacement.
• One key element is contracting with EMS Management and Consultants in an endeavor
to improve the claims process delivery to the public while allowing County staff to work
with clients toward the collection of accounts that have reached a delinquency status.
(This element is further discussed in another agenda item for this meeting.)
• Another key element is the utilization of the firm Tax Management Associates to
administer the Business Personal Property program. The current staff member
responsible for this area will be retiring effect December 31, 2009. By utilizing this
avenue it is believed the current Business Appraiser position can be realigned to reflect
a stronger utilization of the position. The current position of Appraisal Technician will
assume the role of liaison and in-house business personal property coordinator. This
position will require review after a responsible period of time for possible
reclassification.
• The ultimate goal of the Tax Administration department will be to continue to enhance
the cross-training of employees on a broader skill base. This will in-turn provide greater
flexibility during peak periods and ultimately provide an even higher level of customer
service capability for the public.
FINANCIAL IMPACT: By encompassing the Tax Management Associates and the EMS
Management & Consultants contracts in conjunction with the reorganization of the two
departments, the initial cost savings is projected to be $45,000 annually. However, these
savings do not encompass the personnel cost of two additional staff positions or the potential
reclassification of existing positions entailed in the reorganization plan. These costs will take
place over two (2) fiscal timeframes.
RECOMMENDATION(S): The Manager recommends that the Board:
• Approve the consolidation of the two current offices into one department to be known
as Tax Administration effective with the retirement of the current Tax Assessor,
effective December 31, 2009;
• Authorize staff with Manager approval to continue forward with the study for
reclassification of positions;
• Authorize staff to proceed with the advertisement and hiring of one additional deputy
tax collector; and
• Agree to consider the establishment of a new GIS Mapper I position at the completion
of the Property Information Mapping System (PIMS) Project.
Commissioner Pelissier said that she liked the organizational chart and she had
questions about the proposed two new positions. She asked about the GIS position and if this
was because of the amount of work increasing and not because of the reorganization. Jo
Roberson said that this is because of the workload only and not because of the combining of
the two departments. She said that she is asking to hire the GIS Mapper further down the road
as they develop the PIMS process.
Commissioner Pelissier asked about the other additional position and Jo Roberson said
that with this reorganization, the Tax Collector is becoming the Tax Administrator, giving them
a dual title and dual responsibility. She currently works in collections as a collector and she is
not just a department head. When she is taken out of the mix, she has to be replaced.
Without this position, she fears that there might be a loss of revenue.
Frank Clifton said that these are fairly technical positions, and the staff is trying to look
out into the future.
Commissioner Gordon said that there have been a lot of retirements and
reorganizations and there are other departments that may also need additional positions. She
does not like adding positions in the middle of the year. However, she is not opposed to the
reorganization and noted that Orange County has had one of the highest collection rates in the
State and she wants to commend Jo Roberson for this. She also thanked John Smith for his
years of service to the County.
Commissioner Yuhasz pointed out that this would be replacing an excellent tax
assessor with a tax collector and would not really be an increase, per se.
A motion was made by Commissioner Yuhasz, seconded by Commissioner Hemminger
to:
• Approve the consolidation of the two current offices into one department to be known
as Tax Administration effective with the retirement of the current Tax Assessor,
effective December 31, 2009;
• Authorize staff with Manager approval to continue forward with the study for
reclassification of positions;
• Authorize staff to proceed with the advertisement and hiring of one additional deputy
tax collector; and
• Agree to consider the establishment of a new GIS Mapper I position at the completion
of the Property Information Mapping System (PIMS) Project.
VOTE: Ayes, 5; No, 1 (Commissioner Gordon, because the reorganization adds a new
position)
e. Outsourcing of Business Personal Property Listing Function
The Board considered approving reorganizing and combining the Tax Assessor and
Revenue Collections Department to allow for a smooth and efficient transition, increase
collaborative efficiencies between the multi-levels of functionality within the two current
departments, and continue working to maintain the same levels of quality service currently
provided to the public.
Jo Roberson said that one of the Tax Assessors is retiring, so she and John Smith
have followed a pilot program that has been overseen by the N. C. Department of Revenue in
Durham County. This has been successful, and has allowed Durham County to move forward
in reallocating some staff out of the business department. She and Mr. Smith decided that,
with the retirement of Ms. Jones, that this could be outsourced with a one-year pilot project.
The company would be asked to take the existing business listings as they come in, key the
data, clean up the data fields, and compare the existing listings with the business returns
received.
BACKGROUND: On September 15, 2009 the Board of County Commissioners directed staff
to develop and present to the Board a more specific reorganization plan which allows for the
merging of the Tax Assessor's Office and the Revenue Department. One aspect of the
reorganization requires that plans be instituted that will allow taxation and excellent public
service to continue after the retirement of key staff and with a countywide hiring freeze
mandated. Staff has developed a reorganization plan that will allow for not only the
continuance of taxation and excellent public service but will potentially enhance operations
while allowing for coinciding budget cuts as well.
Over the past year, Durham County, Tax Management Associates (TMA) and the North
Carolina Department of Revenue have worked together to develop a viable outsourcing of
business personal property listing, managing, and billing that conforms to North Carolina
General Statutes. With the impending retirement of the County's only business personal
property appraiser effective January 1, 2010, staff would recommend the Board consider
pursuing a contract for a one-year pilot program with Tax Management Associates.
This one-year recommended pilot process will allow staff to thoroughly evaluate the overall
value to the County. This recommendation is based on the belief that outsourcing will not only
provide cost savings to the County but will also produce significant enhancements in the
implementation and administration of the business personal property taxation program. With
the TMA team (consisting of 45 special project team members) at Orange County's disposal,
much more can be accomplished than one Orange County Business Personal Property
Appraiser could achieve. With an entire team involved, Orange County will be able to more
thoroughly insure the accurate and complete listing of businesses and to also realize
enhancements in areas such as statistical and benchmarking analysis that will locate
questionable listings and will find businesses that have in the previous year listed but who
have not made current listings. There will be the resources and the software to create
management reports that will identify specific listings for special review and audit. There will
also be time and the business structure to utilize extensive Internet search capabilities and
some field canvassing to locate and discover unlisted businesses. Increased manpower
means more responsiveness to the needs and issues of taxpayers, better communication and
increased educational efforts as well as the availability of greater taxation knowledge and legal
expertise. Business personal property staff will also be freed up to concentrate on the
discovery, education, and taxation of unlisted businesses.
Tax Office staff has worked with Financial Services Department staff to determine a cost
analysis and recommendation for pursuance of this course of action. By entering into a
contract with Tax Management Associates, the County could freeze the existing Business
Personal Property Appraiser position. On a twelve-month basis, the freeze would equate to a
salary and benefits savings of $80,000, some of which would fund the pilot program. The
outsourcing effort will cost, per the attached contract, $13-$15 per business listing. The cost
for the pilot period of one year is projected to be $60,000. The cost of promoting a staff
member to oversee coordination efforts between the County and TMA is projected to be
$10,000, for a total cost of $70,000. (The cost of maintaining the system that currently exists
by hiring an experienced business personal property appraiser plus using a second employee,
with half of that position's time allotted to business would have a cost of approximately
$85,000 annually.) This equates to an initial County cost savings of $15,000, but is expected
to be only the beginning of the potential County benefits.
For example, between the end of Fiscal Year 2004-2005 and the end of Fiscal Year 2008-
2009, the statistical report shows the personal property tax base has increased significantly.
Much of this increase is likely due to annually recurring business personal property discoveries
made through the enhanced auditing program. Using the current County tax rate, this growth
represents a significant increase in tax revenues annually. Since discovered business
personal property is annually recurring, there is an additive effect that is enhanced with each
additional discovery and with every new tax year. This growth is projected to expand with the
implementation of the outsourcing project.
The bottom line is that with every business personal property program enhancement there is
the excellent potential for increased listings, discoveries, and educational opportunities that will
generate significant and annually growing monetary returns to the County. It is therefore the
recommendation that this program should be pursued on a pilot basis for one year since the
program has the potential to result in streamlined business personal property taxation
processes with many revenue related benefits. More importantly staff believes this should be
pursued since it also enhances educational opportunities and services to the public. This pilot
program with Tax Management Associates will allow staff to thoroughly evaluate the benefits
to the County of outsourcing while also cutting County budgetary expenditures, initially in the
short term (immediate budget) and potentially long term.
FINANCIAL IMPACT: Cost savings to be realized from the reorganization and reallocation of
job duties as it relates directly to business personal property listing should equate to no less
than $15,000 for this fiscal year. There is also the great potential for increasing and additive
annual returns in County revenues.
RECOMMENDATION(S): The Manager recommends that the Board:
• Approve a one-year pilot project contract with Tax Management Associates and
authorize the Chair to sign the contract subject to final review and approval by staff and
the County Attorney;
• Direct the Manager and staff to move forward with Tax Management Associates to
provide the business personal property process.
A motion was made by Commissioner Nelson, seconded by Commissioner Hemminger to:
• Approve a one-year pilot project contract with Tax Management Associates and
authorize the Chair to sign the contract subject to final review and approval by staff and
the County Attorney;
• Direct the Manager and staff to move forward with Tax Management Associates to
provide the business personal property process.
VOTE: UNANIMOUS
f. Billing Services Agreement-Ambulance Service
The Board considered directing staff to pursue the outsourcing of the initial billing and
claims processing for EMS Ambulance Service transports by entering into a one-year Billing
Services Agreement with EMS Management and Consultants, Inc., and authorizing the Chair
to sign subject to final review and approval by staff and the County Attorney.
Jo Roberson summarized this item.
BACKGROUND: Since 1996, the Revenue Department has handled the billing and collection
of EMS Ambulance Service transports. Prior to that time, there was no formal or uniform
process in place for EMS billing. Since the outset of Revenue handling the billing, there has
been one staff member (1.0 FTE) dedicated full-time to the process. Over the years, the
department has improved its processes and procedures in order to handle the continuous
growth in the number of transports while maintaining just one full-time dedicated staff member.
Current files reflect that beginning with record keeping in Fiscal Year 1998-99, there were
5,001 billable transports. These transports totaled $1.4 million in actual levy. As of the close
of Fiscal Year 2008-09 there were 6,757 billable transports totaling in excess of $3.1 million in
actual levy. This represents a 35% increase in billable transports, and a 121% increase in
actual levy dollars over this ten year period. With the additional Property Information
Management System (PIMS) Project now beginning and with the reorganization of the Tax
Assessor and Revenue Departments into one department, the time is right to approach claims
management and redirect internal staff endeavors to collections.
Staff has been very successful in claims processing, handling appeals on behalf of the public,
and collecting accounts otherwise not paid. However, over the past two years billable
transports have increased from 6,064 in Fiscal Year 2006-07 to 6,757 in Fiscal Year 2008-09,
and staff has struggled to maintain the workload. The continued growth of transports, the
increased complexity of claims processing, and the steps for appeals has grown into a
process that has demanded the continuous attention of no less than the equivalent of one and
three-quarter full time employees (1.75 FTEs). The total annual cost to manage this operation
in-house is estimated at $124,570, which represents direct personnel costs, administrative
overhead costs, and operational costs. (See detailed table below.) This has not taken into
consideration any active collection endeavors. That process has been dealt with separately by
the use of a Deputy Collector. The increased demand has placed an excessive burden on all
staff within the Revenue office.
During Summer 2009, staff issued a Request for Proposal (RFP) through the Asset
Management and Purchasing Department for the outsourcing of the claims management and
billing for Ambulance Service transports. After ensuring all applicable requirements were
followed, staff recommends EMS Management and Consultants, Inc. as the vendor of choice.
It is worth noting that this company is not a licensed collection agency but is a claims
management company specializing in EMS Ambulance Service Billing only.
EMS Management and Consultants, Inc. have been in business since 1996 and its reputation
precedes it in the ambulance service billing arena. EMS Management and Consultants, Inc.
currently handle the ambulance billing for 40-plus counties within the State of North Carolina.
(See Attachment 2) Additionally, the company has a number of private ambulance service
clients within the State and has an extensive process in place with dedicated staff to research
front end eligibility and verification of patient information. All claims initially filed are paid on an
85% success rate. There is also an extensive appeal and research process for the public.
The company's process is currently allowing an ultimate return of payment of 97% for
Medicare, 94% for Medicaid, and 79% for commercial insurance claims filed on behalf of
existing clients.
Staff recommends outsourcing the initial invoicing and insurance claim process which will free
up the equivalent of .75 FTE to redirect the work on delinquent collections. This will result in
an anticipated additional $150,000 in annual revenue collections. The current full-time staff
member (1.0 FTE) will work as the liaison between Orange County Emergency Services and
the vendor. This staff member will also work with clients who do not have insurance to
establish ways by which restitution may be attained.
EMS Management and Consultants, Inc. have been fully vetted concerning the expectations,
policies and procedures currently in place through the Revenue Department. The company is
aware of the EMS Assistance Program availability and agrees that anyone qualifying for this
program will be immediately directed to Orange County staff for individual handling with no
cost to the County.
Estimated annual costs to outsource this operation is $195,240, which represents direct
personnel costs, administrative overhead costs, operational costs, and contract costs. With
the anticipated additional annual revenue of $150,000 in delinquent collections, the net County
costs for this operation is estimated at $45,240. (See detailed table below):
Comparison of In-House vs. Outsourcing of EMS Billing and Collections Costs on an
Annual Basis
In-House Outsourcing
Personnel Costs (including indirect/ $103,398 $ 68,340
administrative overhead)
Operational Costs $21,172 $ 5,400
Contract Costs (1) $ 0 $121,500
Total Costs $124,570 $195,240
Additional Revenue Collections ($0) ($150,000)
Anticipated (2)
Total Net County Costs $124,570 $ 45,240
(1) The annual contract cost of $121,500 represents 6.75% of net collections currently
budgeted at $1,800,000 for FY 2009-10.
(2) The additional annual revenue collections anticipated of $150,000 represents
additional delinquent collections staff estimates it will collect due to freeing up current
staff to work on those collections which would otherwise remain unpaid.
Staff recommends the Board approve a one year trial contract with EMS Management &
Consultants, Inc., beginning January 1, 2010, for the initial billing and insurance filing. During
the year, Revenue Department staff with closely monitor the success of collections as well as
any impacts on customer service.
FINANCIAL IMPACT: The annual contract cost with EMS Management and Consultants, Inc.
of $121,500 is based on a charge rate of 6.75% of net collections, currently budgeted at
$1,800,000 for Fiscal Year 2009-10. By outsourcing this billing and collections operation, staff
estimates that the annual net County costs for this operation will decrease from $124,570 to
$45,240. Due to current staff being redirected to work on delinquent collections instead of
billings and collections, the total net savings to the County that the department will realize from
outsourcing is estimated at approximately $30,000 annually. This is based on the contract
cost of $121,500 and the anticipated additional revenue of $150,000 from delinquent
collections.
RECOMMENDATION(S): The Manager recommends that the Board:
• Approve the one-year contract with EMS Management & Consultant, Inc. and authorize
the Chair to sign after final review and approval by staff and the County Attorney; and
• Amend the Fiscal Year 2009-10 budget to receive an anticipated additional $75,000
from delinquent collections for the six-month period of January-June 2010.
Commissioner Hemminger asked when this would come back to the Board on the
success of this and Jo Roberson said that it would be part of the budget process.
A motion was made by Commissioner Hemminger, seconded by Commissioner Nelson
to:
• Approve the one-year contract with EMS Management & Consultant, Inc. and authorize
the Chair to sign after final review and approval by staff and the County Attorney; and
• Amend the Fiscal Year 2009-10 budget to receive an anticipated additional $75,000
from delinquent collections for the six-month period of January-June 2010.
VOTE: UNANIMOUS
Jo Roberson reported that last year she asked for money and promised to improve
collections of delinquent accounts by outsourcing foreclosures. She said that in one year, the
department has spent $8,000 and has collected $81,854. This is in addition to the $100,000
that has been brought to the County in-house. This has more than paid for itself.
Revision to Personnel Ordinance Article Ill, Section 11.0 Drug and Alcohol
Testing Policy
The Board considered revising Article III, Section 11.0 of the Orange County Personnel
Ordinance and providing for Administrative Rules and Regulations for Drug and Alcohol
Testing Program.
Human Resources Director Michael McGinnis introduced Jewell Ray, the newest
Human Resources Manager. She is involved in administrating the drug policy. He said that
recently, the Federal Transit Administration completed its audit and it was determined that the
current plan was deficient in some areas and needed to be updated to the Department of
Transportation standards by November 1st. These changes deal with specimen validity testing
when there has been a positive test and a return to work or a negative dilute test. There have
only been two cases in the last seven years when this was necessary.
A motion was made by Commissioner Hemminger, seconded by Commissioner Nelson
to approve revising Article III, Section 11.0 of the Orange County Personnel Ordinance and to
provide for Administrative Rules and Regulations for Drug and Alcohol Testing Program.
VOTE: UNANIMOUS
7. Reports-NONE
8. Board Comments
Commissioner Gordon reported on the most recent meeting of the DCHC-MPO
Transportation Advisory Committee. She said that the Federal Highway Administration
rescinded almost $9 billion in unobligated contract authority. There was about $250 million
taken from North Carolina. The DCHC MPO is losing about $7 million in STP-DA funds.
These are direct allocation monies, and this was a hard hit. North Carolina is also losing
Congestion Mitigation Air Quality funds and MPO planning money. The TAC is trying to get
Congressman Price to do something about this to help.
Commissioner Gordon made reference to the Metropolitan Planning Boundary
expansion. The Chatham County Commissioners met on this and decided that they did not
want the boundary expanded until the new census. The TAC is requesting feedback from
Orange County on expanding the DCHC Metropolitan Planning Boundary in western Orange
County along the 1-85/1-40 corridor. Also, the Burlington MPO has expanded into Orange
County.
Commissioner Hemminger asked if there was a timeline on the report of the Solid
Waste broad plan (i.e., convenience centers, recycling, task force report). Frank Clifton said
that the solid waste work group is looking at this information.
Commissioner Yuhasz said that the solid waste work group did have a meeting today
about the issues of handling solid waste in the rural areas. There was general agreement to
continue to look at different ways of approaching a rural curbside pickup program. There is
another meeting on November 17th and they hope to have a report back to the County
Commissioners in December.
Frank Clifton said that there would be more detail during the budget process.
Commissioner Hemminger said that the Intergovernmental Parks Work Group had a
discussion on the Mountains to Sea Trail and an alternate route was suggested for the densely
populated area of Chapel Hill/Carrboro to the Eno River State Park. The recommendations will
be made back to the County Commissioners. The next meeting will be about interconnecting
all greenway systems in the County.
Commissioner Yuhasz made reference to the pink sheet and said that there is a
meeting scheduled with the Alamance County Commissioners on November 9th regarding the
Orange/Alamance County line. The meeting will be held at Alamance Community College in
the auditorium (room 301) at 7:00 p.m.
Commissioner Nelson — none.
Commissioner Pelissier said that at last week's Triangle Area Regional Planning
Organization there were two projects to submit for Orange County and one was the widening
of Buckhorn Road. This was voted to be moved up on the list.
Commissioner Pelissier made reference to some issues that have been brought up
continually. She said that something that would help her is to have a rolling calendar for
reference documents.
Commissioner Nelson said that the list of Board priorities from last year's retreat was
supposed to be on a rolling calendar.
Commissioner Pelissier said that she was just talking about the major issues.
Commissioner Gordon supported this suggestion of having major issues on a longer-
term rolling calendar, and asked if there was a Board consensus.
The Board agreed by consensus to have staff work on this.
Frank Clifton agreed that he would work on something like this.
Chair Foushee said that the Town of Hillsborough is exploring how to proceed with a
Wayfinding project. The Town will be looking to the County to partner, particularly when
buildings and common areas are shared. She gave the proposed plan to the Clerk so that the
County Commissioners could review it at their leisure.
Chair Foushee said that Senator Kinnaird called her to talk about a plan in the
legislature to revise the tax structure, particularly as it relates to sales taxes. This will not be a
good impact on the County's tax revenues. Senator Kinnaird suggested that someone from
the State office come and present this item to the Board at a work session.
Chair Foushee said that enrollment for the Orange County Campus of Durham
Technical Community College for curriculum programs is up 70%. Enrollment for continuing
education programs is up 27%.
Chair Foushee showed a flyer for the CASA dedication for the Pritchard project. This
will be on Monday, October 26th at 11:30 and the County Commissioners are invited.
9. County Manager's Report
Frank Clifton said that the Board of County Commissioners established retirement
incentives and they are looking at about $370,000 in savings. He said that the Human
Resources Department is very involved in which positions need to be consolidated, etc.
because of the retirements.
He said that he is very appreciative of being named County Manager.
10. Appointments
a. Rogers Road Sewer Planning Group — New Appointments
The Board considered making appointments to the Rogers Road Sewer Planning
Group.
A motion was made by Chair Foushee, seconded by Commissioner Pelissier to appoint
Commissioner Yuhasz to the Rogers Road Sewer Planning Group.
VOTE: UNANIMOUS
Chair Foushee said that the Board of County Commissioners was also tasked to
appoint a community representative to this group.
PUBLIC COMMENT:
Rev. Robert Campbell said that he thinks the group will be the Rogers Road Sewer
and Water Planning Group. He said that the recommendation was for the water line to be
completed also. Regarding a community representative, David Caldwell has volunteered to be
the representative.
Chair Foushee volunteered to be the alternate.
A motion was made by Commissioner Hemminger, seconded by Commissioner
Gordon to appoint Chair Foushee as the alternate to the Rogers Road Sewer Planning Group.
VOTE: UNANIMOUS
A motion was made by Chair Foushee, seconded by Commissioner Nelson to appoint
David Caldwell as the community representative to the Rogers Road Sewer Planning Group.
VOTE: UNANIMOUS
Rev. Campbell said that he needs 15 minutes to do a PowerPoint about the
community collaboration partner research that was done in the community. Chair Foushee
said that the Clerk will disseminate this information and they may come for 3 minutes to make
their presentation.
Commissioner Nelson suggested setting a community meeting and inviting the Board
of County Commissioners to attend.
11. Information Items
• Status Report on Orange County Small Business Loan Program
• October 6, 2009 BOCC Meeting Follow-up Actions List
12. Closed Session-NONE
13. Adjournment
A motion was made by Commissioner Gordon, seconded by Commissioner Hemminger
to adjourn the meeting at 9:44 PM.
VOTE: UNANIMOUS
Valerie Foushee, Chair
Donna S. Baker, CMC
Clerk to the Board