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HomeMy WebLinkAboutMinutes - 19961015 r 1 APPROVED 12/2/96 MINUTES ORANGE COUNTY BOARD OF COMMISSIONERS REGULAR METING OCTOBER 15, 1996 The Orange County Board of Commissioners met in regular session on Tuesday, October 15, 1996 at 7:30 p.m. in the OWASA Community Meeting Room in Carrboro, North Carolina. COUNTY COMMISSIONERS PRESENT: Vice-Chair Stephen H. Halkiotis and Commissioners William L. Crowther, Alice M. Gordon and Don Willhoit. COUNTY COMMISSIONER ABSENT: Chair Moses Carey, Jr. COUNTY ATTORNEY PRESENT: Geoffrey Gledhill COUNTY STAFF PRESENT: County Manager John M. Link, Jr., Assistant County Manager Rod Visser and Albert Kittrell and Clerk to the Board Beverly A. Blythe (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. ALL RECORDING TAPES OF THE MEETING WILL BE KEPT FOR FIVE (5)YEARS. 1. ADDITIONS OR CHANGES TO THE AGENDA One item was added to#13 - Closed Session to consult with the County Attorney pursuant to North Carolina General Statute Section 143-318-11(a)(5). This item was placed on the agenda immediately after item seven along with the other Closed Session item listed under#13 below. 2. AUDIENCE COMMENTS a. Matters on the Printed Agenda Vice-Chair Stephen H. Halkiotis said that citizens who would like to speak to an item on the printed agenda will be recognized at the appropriate time. b. Matters not on the Printed Agenda - NONE PUBLIC CHARGE Vice-Chair Halkiotis dispensed with the reading of the public charge. 3. BOARD COMMENTS: Vice-Chair Halkiotis made reference to a letter from Hillsborough Town Commissioner Catherine Martin in which she expressed appreciation for the County Commissioners' letters and cards during her recent recovery from an automobile accident. 4. COUNTY MANAGER'S REPORT- NONE 5. RESOLUTIONS/PROCLAMATIONS A. RESOLUTION AUTHORIZING LGC APPLICATION FOR ELEMENTARY SCHOOL INSTALLMENT FINANCING AND ESTABLISHMENT OF PUBLIC HEARING DATE John Link asked that the Board consider the adoption of a resolution authorizing staff to file an application with the Local Government Commission (LGC) seeking approval for installment purchase financing for a new elementary school in the Chapel Hill-Carrboro School District, and to set a date for a 2 public hearing on financing proposals. The funding required for this project is approximately $14 million. Staff is proposing that the County split the financing in order to remain bank qualified (issuing less than $10 million in debt in a calendar year) for both 1996 and 1997. The County would borrow$5 million before the end of this calendar year and the other$9 million in calendar year 1997. General Statutes require that the Local Government Commission approve all financing arrangements of this nature. A motion was made by Commissioner Gordon, seconded by Commissioner Willhoit to approve the resolution as stated below and to authorize the Finance Director to execute all documents and procedural steps required in the LGC application process, and to establish the public hearing for 7:30 PM on Tuesday, November 19 at the OWASA Operations Center, and authorize the Clerk to advertise the public hearing. ORANGE COUNTY BOARD OF COMMISSIONERS A RESOLUTION AUTHORIZING THE FILING OF AN APPLICATION FOR APPROVAL OF A FINANCING AGREEMENT AUTHORIZED BY NORTH CAROLINA GENERAL STATUTE 160A-20 WHEREAS, the County of Orange, North Carolina desires to construct a new elementary school in the Chapel Hi1UCarrboro City Schools district to address overcrowding at the elementary school level within the district; and WHEREAS, the County of Orange desires to finance the Project largely by the use of an installment contract authorized under North Carolina General Statute 160A, Article 3, Section 20; and WHEREAS, findings of fact by this governing body must be presented to enable the NC Local Government Commission to make its findings of fact set forth in North Carolina General Statute 159, Article 8, Section 151 prior to approval of the proposed contract: NOW THEREFORE, BE IT RESOLVED that the Board of Commissioners of Orange County, North Carolina, meeting in regular session on the 15th day of October, 1996, make the following findings of fact: 1. The proposed contract is necessary or expedient because the elementary student population in the Chapel Hill-Carrboro City Schools is currently over the capacity of the district's existing elementary school buildings and no practical or timely alternative to the construction of permanent additional elementary school space is available. The student population in the district has increased rapidly in recent years and is projected by the North Carolina Department of Public Instruction to continue growing substantially for the foreseeable future. 2. The proposed contract is preferable to a bond issue for the same purpose because: a. availability of the new elementary school is urgently needed in time for the 1999-2000 school year and the contracting method is the most expeditious method of raising cash quickly to meet the planning, design, and construction timetable for a 1999-2000 school opening; b. the cost of the elementary school, estimated at$14 million, cannot be prudently raised from currently available appropriations, unappropriated fund balances, or non-voted bonds; c. the North Carolina General Assembly adopted legislation during the 1994 Session intended specifically to permit Orange County to pursue installment financing for an elementary school project that has since been successfully constructed and opened, and any future projects that might become necessary. 3. The cost of financing under the proposed contract could be greater than the cost of issuing general obligation bonds. However, this method of financing will increase the alternatives available to Orange County to obtain the most cost effective, timely, and flexible means possible of funding this necessary project. Given Orange County's excellent credit standing, and its past success in obtaining installment financing for the previous elementary school project that compared favorably with rates on other available financing mechanisms, any difference in the comparable costs between bond financing and installment purchase financing will be reasonable. • S 3 4. The sums to fall due under the contract are adequate and not excessive for the proposed purpose because funding of the debt service thus created is already planned in Orange County's long-term Capital Improvement Plan. 5. The County of Orange's debt management procedures and policies are good because the County's existing and planned debt falls well within North Carolina's legal debt limitations for local governments; furthermore, Orange County's excellent creditworthiness is well recognized by investors and well established by the principal municipal bond rating agencies with bond ratings of Aal (Moody's) and AA+ (Standard & Poor's). 6. There will be no increase in ad valorem property taxes necessary to meet the sums to fall due under the proposed contract. Payments due under the proposed contract will be financed by school impact fees accrued and pay-as-you-go sales tax revenues. 7. The County of Orange is not in default in any of its debt service obligations. 8. The Attorney for the County of Orange has rendered an opinion that the proposed Project is authorized by law and is a purpose for which public funds may be expended pursuant to the Constitution and laws of North Carolina. NOW, THEREFORE, BE IT FURTHER RESOLVED that the Finance Officer is hereby authorized to act on behalf of the County of Orange in filing an application with the North Carolina Local Government Commission for approval of this Project and the proposed financing contract and other actions not inconsistent with this resolution. This resolution is effective upon its adoption this 15th day of October, 1996. VOTE: UNANIMOUS B. RESOLUTION AUTHORIZING REQUEST FOR PROPOSALS FOR BOND COUNSEL A motion was made by Commissioner Gordon, seconded by Commissioner Willhoit to adopt the resolution as stated below which authorizes the County staff and the County Attorney to solicit proposals for a new County bond counsel. ORANGE COUNTY BOARD OF COMMISSIONERS A RESOLUTION AUTHORIZING REQUEST FOR PROPOSALS FOR BOND COUNSEL WHEREAS, Orange County will require the legal services of bond counsel to review documentation relating to the County's planned private placement financing of the new Southern Village Elementary School, and WHEREAS, Mr. Gundars Aperans is leaving employment with Brown &Wood, having rendered excellent legal representation over the years while serving in the capacity of Orange County's bond counsel, and WHEREAS, it is impractical for Mr. Aperans to serve as bond counsel for the Southern Village Elementary School project financing due to the timing of the need for those services, and WHEREAS, there are a number of law firms in the State of North Carolina likely to be capable of, and interested in, providing representation to Orange County as bond counsel, NOW, THEREFORE BE IT RESOLVED, THAT the Orange County Board of Commissioners do hereby authorize the County Manager, County staff and County Attorney to prepare and distribute a Request for Proposals to various law firms in the State of North Carolina to ascertain their qualifications for, and interest in, providing representation to the County as bond counsel for the Southern Village Elementary School project financing, and BE IT FURTHER RESOLVED THAT the County Manager is directed to present a recommendation on selection of County bond counsel consistent with the timetable necessary to facilitate the Southern Village Elementary project financing according to the approved Capital Improvements Plan. VOTE: UNANIMOUS 4 C. RESOLUTION OF SUPPORT-STATE SCHOOL BOND A motion was made by Commissioner Gordon, seconded by Commissioner Willhoit to adopt the resolution as stated below which indicates support by the Orange County Board of Commissioners for passage of the November 1996 Statewide School Bond. ORANGE COUNTY BOARD OF COMMISSIONERS A RESOLUTION OF SUPPORT FOR PASSAGE OF THE NOVEMBER 1996 STATEWIDE SCHOOL BOND WHEREAS, the Orange County Schools and Chapel Hill-Carrboro City Schools Capital Improvements Plan reflect the need for substantial financial investment in the construction of new school space, and WHEREAS, successful implementation of an Orange County funding plan for these school capital needs depends heavily on passage of the November 1996 Statewide school bond that would provide approximately$17 million in school capital funding to the two school systems in Orange County. NOW, THEREFORE, BE IT RESOLVED THAT the Orange County Board of Commissioners and the NCACC does hereby express its support for passage of the Statewide School Bond during the November 5, 1996 election, and BE IT FURTHER RESOLVED THAT the Board of Commissioners encourages the governing boards of the Towns of Carrboro, Chapel Hill, and Hillsborough to express their official support for passage of the school bond by adopting similar resolutions prior to the election. VOTE: UNANIMOUS 6. SPECIAL PRESENTATIONS- NONE 7. PUBLIC HEARINGS A. MPC PACKAGING CORP. DEBT RESTRUCTURING TAX EQUITY FAIRNESS RESPONSIBILITY ACT TE( FRA) A public hearing was held on the proposed debt restructuring of the Orange County Industrial Facilities and Pollution Control Financing Authority industrial revenue bonds which debt restructuring will permit the repayment of the bonds over a longer period of time. No citizen comments were made. A motion was made by Commissioner Willhoit, seconded by Commissioner Crowther to close the public hearing. VOTE: UNANIMOUS A motion was made by Commissioner Willhoit, seconded by Commissioner Crowther to approve the resolution as stated below which approves the debt restructuring in principle. RESOLUTION OF THE ORANGE COUNTY INDUSTRIAL FACILITIES AND POLLUTION CONTROL FINANCING AUTHORITY AUTHORIZING THE AMENDMENTS TO DOCUMENTS FOR $5,200,000 INDUSTRIAL DEVELOPMENT REVENUE BONDS (MEBANE PACKAGING CORPORATION PROJECT) SERIES 1990 WHEREAS, The Orange County Industrial Facilities and Pollution Control Financing Authority (the "Authority") is a political subdivision and body corporate and politic of the state of North Carolina duly created pursuant to the provisions of Article V, Section 9 of the Constitution of North Carolina and Chapter 159C of the General Statutes of North Carolina, as amended (the "Act"); and WHEREAS, the Authority issued and sold its Industrial Development Revenue Bonds (Mebane Packaging Corporation Project) Series 1990 in the aggregate principal amount of$5,200,000 (the "Bonds"), pursuant to 5 and in accordance with a Trust Indenture (the "Original Indenture"), dated as of September 1, 1990 between the Authority and Branch Banking and Trust Company (the "Trustee"). WHEREAS, pursuant to the Original Indenture, the Authority and Mebane Packaging Corporation, now known as MPC Packaging Corporation, a North Carolina corporation (the "Company") entered into a Loan Agreement dated as of September 1, 1990 pursuant to which the Authority made a loan of the proceeds of the Bonds to the Company (the "Original Loan Agreement'). WHEREAS, the Company has requested that the Trustee and the Authority amend the Original Indenture pursuant to the First Supplemental Trust Indenture dated as of October 17, 1996 by and between the Trustee and the Authority (the "Supplemental Indenture" and together with the Original Indenture, the "Indenture"). WHEREAS, the amendments effectuated by the Supplemental Indenture would extend the maturity date on the Bonds from October 1, 2001 until January 1, 2006 and would revise the schedule of required repayments of principal with respect to the Bonds. As a result, a revised form of Bonds will need to be issued and a new Form 8038 will need to be filed with the Internal Revenue Service with respect to the Bonds. WHEREAS, the Company has also requested that the Issuer execute an amendment to Loan Agreement (the "Loan Amendment' and together with the Original Loan Agreement the "Loan Agreement") to reflect the amendment set forth in the Supplemental Indenture. WHEREAS, the Company has determined to remove The Bank of New York as Remarketing Agent under the Indenture and to appoint First Union National Bank of North Carolina ("First Union") as successor Remarketing Agent. The Indenture requires that the Authority approve the appointment of a successor Remarketing Agent. The Company has requested that the Authority so approve. WHEREAS, a draft of a Supplement to Private Placement Memorandum ("Supplemental Placement Memorandum") has been prepared to describe, among other things, the transactions effectuated by the Supplemental Indenture and the appointment of First Union as successor Remarketing Agent. The Company has requested that the authority approve the Supplemental Placement Memorandum. WHEREAS, drafts of the Supplemental Indenture (including the revised form of Bond attached as Exhibit A thereto), the Loan Amendment(including the Amended and Restated Note attached as Exhibit A thereto), and the Supplemental Placement Memorandum have been provided to the Authority. NOW, THEREFORE, BE IT RESOLVED BY THE AUTHORITY IN MEETING DULY ASSEMBLED: Section 1. Authorization of the Amendments. The Supplemental Indenture, the Loan Amendment and the Supplemental Placement Memorandum are hereby approved and the Secretary be and is hereby authorized to execute and deliver each such document under the seal of the Authority for and on behalf of the Authority, in substantially the form previously provided to the Authority, with such completions, changes, insertions and modifications as shall be approved by the Secretary, the execution thereof by the Secretary to be conclusive evidence of such approval. The Supplemental Placement Memorandum is hereby authorized to be distributed in connection with the resale of the Bonds. Section 2. Revised Form of Bonds. The revised form of Bonds, substantially in the form submitted at this meeting, are hereby approved; and the Chairman or Vice-Chairman is hereby authorized and directed to execute (by means of manual or facsimile signature) and deliver, and the Secretary or Assistant Secretary is hereby Authorized and directed to attest (by means of manual or facsimile signature), the Bonds substantially in such form with such necessary and appropriate variations, omissions and insertions as may be approved by the Chairman. The Bonds shall be executed and delivered in accordance with the terms and conditions of the Indenture and this resolution. The Bonds shall bear the manual or facsimile signature of the Chairman or Vice-Chairman, the seal of the Authority shall be affixed, imprinted, lithographed or reproduced thereon and shall be attested by the manual or facsimile signature of the Secretary. The Bonds shall bear interest at a rate per annum (subject to adjustment and limitations) determined as set forth in the Indenture. Section 3. Form 8038. The Chairman, Vice-Chairman or Secretary is hereby authorized and directed to prepare, execute and file with the appropriate office of the Internal Revenue Service the information 6 required to be provided pursuant to Section 149 (e) of the Internal Revenue Code, which information shall be provided on Internal Revenue Service Form 8038 or any successor form provided by the Internal Revenue Service. Section 4. Approval of First Union as Remarketing Agent The removal by the Borrower of The Bank of New York as Remarketing Agent and the appointment by the borrower of First Union as successor Remarketing Agent is hereby approved. Section 5. Absence of Chairman. The Chairman, or in his absence the Vice-Chairman, is hereby designated the authorized Authority's Representative for the purpose of acting on behalf of the Authority pursuant to the Loan Agreement and the Indenture. Section 6. Further Action. The Chairman, Vice-Chairman or Secretary is hereby authorized and directed to take any and all action, and to execute and deliver any and all agreements, documents and instruments necessary or advisable to cant' out any of the foregoing resolutions, the execution and delivery of any such agreements, documents and instruments or the taking of any such actions to be conclusive evidence of the approval by such persons, or any of them, of the terms thereof. Section 7. Provisions in Conflict Repealed. All prior orders, resolutions or proceedings in conflict with the provisions of this resolution shall be, and the same are hereby repealed, rescinded and set aside, but only to the extent of such conflict. This resolution shall become effective immediately upon the adoption thereof. VOTE: UNANIMOUS ADDED ITEM Closed Session A motion was made by Commissioner Willhoit, seconded by Commissioner Crowther to go into closed session to consult with the County Attorney pursuant to North Carolina General Statute Section 143- 318-11(a)(5) and pursuant to NC General Statute Section 143-318.11(a)(3) in the matters of Nello Teer v. Orange County et al. VOTE: UNANIMOUS A motion was made by Commissioner Willhoit, seconded by Commissioner Crowther to reconvene into regular session of the Board. VOTE: UNANIMOUS The Board agreed to add to the regular agenda decision items as "Item E" "Consideration of the wording on the Chapel Hill/Carrboro City School Referendum Ballot' 8. ITEMS FOR DECISION -CONSENT AGENDA A motion was made by Commissioner Crowther, seconded by Commissioner Willhoit to approve those items on the Consent Agenda as stated below: A. APPOINTMENTS The Board approved the following appointments: Nursing Home Community Advisory Committee - the Board appointed Carl Belcher and Rebecca Soltys for terms ending October 15, 1997. North Carolina Piedmont Resource Conservation & Development-the Board appointed Ted Abernathy for a term ending December 31, 1998. B. MINUTES The Board approved the minutes as presented for May 1, June 3, June 18, June 19 and August 26, 1996. 7 C. ADOPTION OF SCHEDULE OF VALUES FOR 1997 REVALUATION The Board approved the final schedule of values, standards and rules and directed the Assessor to observe all statutory requirements related to public notice about the schedule of values. D. PROPERTY TAX REFUNDS The Board approved the following requests for property tax refunds: Grandstaff, John D., Account#198858 for$119.70 Rundell, Margaret D., Account#57849 for$111.84 Music of the World Ltd Inc., Account#162266 for$347.59 Helen G. Torian, Account#73999 for$330.40 E. PERSONNEL ORDINANCE REVISION -HEALTH INSURANCE The Board approved updates to the Orange County Personnel Ordinance, Article IV, Section 7.0, Health Insurance with a change in the effective date to January 1, 1997. F. CLASSIFICATION PLAN AMENDMENT- BUDGET AND MANAGEMENT ANALYST The Board amended the Orange County Classification and Pay Plan by: Establishing the new class of Budget and Management Analyst I at Salary Grade 67 and Changing the title of the Budget and Management Analyst(Salary Grade 69) class to Budget and Management Analyst II (Salary Grade 69) G. HOUSING REHABILITATION CONTRACT AWARD The Board approved awarding a housing rehabilitation contract to R & G Construction Company for exterior repairs at the Elliott Woods Apartments in Chapel Hill in the amount of$13,200. H. IMPACT FEE REIMBURSEMENT_HABITAT FOR HUMANITY The Board approved the impact fee reimbursement request from Habitat for Humanity in the amount of$15,000. I. REQUEST FOR INCREASE IN HOURS FOR PERMANENT PART-TIME CARE MANAGEMENT POSITION The Board approved an increase in the hours of the permanent part-time Care Manager position from 20 to 24 hours per week. The additional hours are needed to administer the expanded in-home aide service agreement with Monarch Health Care Providers. J. FACILITATION CONTRACT_SHAPING ORANGE COUNTY'S FUTURE The Board approved a contract with the Orange County Dispute Settlement Center for facilitation services to the Shaping Orange County's Future Task Force and authorized the Purchasing Director to execute the appropriate paperwork. K. ZONING ATLAS AMENDMENT -Z-4-96 CHARLES WHEREAS, . DAVIS AND JAMES L. DAVIS The Board approved a Zoning Atlas amendment in Hillsborough Township as requested by Charles W. Davis and James L. Davis with the deletion of lots 1, 2, 4 and 5 in Section A and Lot 1 in Section B. The property is located on the east side of Old North Carolina 86 and is bounded by Cates Creek and the Town of Hillsborough Zoning Jurisdiction to the northwest and the 1-40/NC86 Economic Development District to the south. L. BUDGET AMENDMENT#5 The Board approved the budget Ordinance amendments and grant and capital project ordinances as stated below: GENERAL FUND Source - Intergovern mental $ 98,052 Appropriation - Human Services 98,052 8 (to budget for additional State daycare funds for DSS) SMART START GRANT PROJECT ORDINANCE The following revenue is anticipated to be available to complete this project: Intergovernmental - (DSS) 1994-95 $ 259,953 Intergovemmental - (DSS) 1995-96 347,780 Intergovernmental - (DSS) 1996-97 393,327 Intergovernmental - (Health) 1993-94 43,777 Intergovernmental - (Health) 1994-95 56,711 Intergovernmental - (Health) 1995-96 51,219 Intergovernmental - (Health) 1996-97 51,199 Intergovernmental - (Library) 1993-94 10,721 Intergovernmental - (Cooperative Extension) - 1994-95 6,000 Intergovernmental - (Cooperative Extension) - 1995-96 17,880 Intergovernmental - (Cooperative Extension) - 1996-97 17,522 Total Revenue $1,333,208 The following prior years' grant funds have lapsed: Intergovernmental (DSS) - 1993-94 $ 77,119 Intergovernmental (DSS) - 1994-95 259,953 Intergovernmental (Health) 1993-94 43,777 Intergovernmental ( Health) 1994-95 56,711 Intergovernmental (Library) - 1993-94 10,721 Intergovernmental (Cooperative Extension) - 1994-95 6,000 Intergovernmental (Cooperative Extension) - 1995-96 $ 17,880 Total $ 472,161 The following amounts remain appropriated for this project: Human Services - DSS $ 741,107 Human Services - Health 102,418 Human Services - Cooperative Extension $ 17,522 Total Appropriation $ 861,047 (The project authorized is the Smart Start Program as awarded to the Orange County Departments of Social Services, Health, Library and Cooperative Extension by the State of North Carolina and the Orange County Partnership for young Children.) EFLAND ESTATES COMMUNITY DEVELOPMENT BLOCK GRANT PROJECT ORDINANCE Intergovernmental $ 145,750 Human Services- Efland Estates (11) 145,750 (The project authorized is the Community Development Block Grant which will provide funds for infrastructure (water, sewer, roadways) in Phase 11 of the Efland Estates subdivision) GENERAL FUND Source - Intergovernmental $ 4,092 - Charges for Services 1,000 -Appropriated Fund Balance 206,470 Appropriation - Community Maintenance 7,000 - General Administration 4,500 - Community Planning 18,357 - Human Services 22,000 - Public Safety 31,075 - Public Works 17,610 - Contributions to Outside Agencies 18,750 9 - Miscellaneous (Appropriations) 76,270 Transfers to Other Funds 16,000 (To budget prior year expenditure cant'forwards) EQUIPMENT AND VEHICLES PROJECT CAPITAL PROJECT ORDINANCE The following revenue is anticipated to complete this ro"ect: Transfer from County Capital Reserve Fund (1992-93) $ 295,300 Transfer from General Fund (1993-94) 391,615 Transfer from General Fund (1994-95) 465,229 Transfer from General Fund (1995-96) 294,415 Transfer from EMS Base 2 Project (1995-96) 10,000 Transfer from General Fund (1996-97) 497,964 Total Transfers from Other Funds $1,954,523 Intergovernmental (1992-93) $ 32,935 Intergovernmental (1993-94) 4,688 Intergovernmental (1994-95) 131,129 Intergovernmental (1995-96) 123,750 Intergovernmental (1996-97) 88,595 Total Intergovernmental $ 381,097 County Capital Fund Balance (1994-95) 10,000 Total Revenue $2,345,620 A portion of the funds available for this rp oiect have been expended. The following amendment is anticipated to close these amounts: Transfer from County Capital Reserve (1992-93) $ 239,583 Transfer from County Capital Reserve (1993-94) 348,384 Transfer from County Capital Reserve (1994-95) 351,954 Intergovernmental (1992-93) 32,935 Intergovernmental (1993-94) 4,688 Intergovernmental (1994-95) 91,530 Total $1,069,074 The following amount remains appropriated for this rp oiect: Equipment and Vehicles $1,276,546 (The project authorized will provide for purchase of County-owned vehicles and major equipment. The project will be financed with proceeds from the County's portion of the one half cent sales taxes, appropriated fund balance from the County Capital Projects Fund, and grant funds from the North Carolina Department of Transportation.) M. ORANGE COUNTY INDUSTRIAL FACILITIES AND POLLUTION CONTROL FINANCING AUTHORITY The Board received the filing of the September 25, 1996 proceedings of the Authority and oaths of offices of the Authority members sworn in on that date and enters the proceedings into the minutes of this meeting by reference. VOTE ON THE CONSENT AGENDA: UNANIMOUS 9. ITEMS FOR DECISION -REGULAR AGENDA A. LONG RANGE SCHOOL CAPITAL FUNDING OPTIONS John Link presented for Board discussion revisions to the funding option identified as Option 5A as presented to the County Commissioners on September 17, 1996. He noted that these changes in 10 the plan mean that policies for the way money is allocated to the two school systems will need to be changed. If the Board approves Option 5A with the changes as outlined in this agenda abstract (now referred to as Option 513), he will bring back those policy changes for Board approval. With reference to the Board's concern about using the one cent that is earmarked for a capital reserve account for County projects beginning in 1998-99, Commissioner Halkiotis said that his main concern is that some of the County programs will be shortchanged. He will not support an increase in the general fund property tax rate of one cent to replace these funds. He thanked Budget Director Sally Kost for her creativity on this plan and asked that additional work be done to provide adequate funds for other programs in the County. In answer to a question from Commissioner Gordon, Sally Kost said that the $1 million for County projects will come from the $40 million bond funds. John Link said that since June they have been working from the expenditure side as a given and tried to match the revenues with the expenditures. From here forward, they will use a needs task force to look at the needs which will determine the expenditures. Also, the County projects need to be specified with timetables and estimated cost. They also need to look at what the high school task force did several years ago and what the intent was for future high schools. Commissioner Halkiotis said that when talking about this much money, there was a sentiment that East Chapel Hill High would be sized to handle any excess student population from the northern end of the County. It is important to know which areas people are moving into so that planning can be done accordingly. Commissioner Crowther clarified that Chapel Hill -Carrboro City Schools start with zero money and at the end they have a fund balance of$4.4 million. Commissioner Willhoit expressed concern that the one cent reserve for land acquisition is not maintained in the plan. He feels this should be factored into the long-range plan and should be used jointly for recreation and schools. He feels that pressure should be placed on those responsible to identify land for future schools. He indicated that he is not opposed over the long term to using proceeds from the 1 cent tax for other purposes, but that the proceeds for years up to 1998 should be available to take advantage of land acquisition opportunities. Commissioner Gordon made reference to the infrastructure impact statement and asked that Commissioner Halkiotis join her in moving this project forward. John Link asked the Board's direction on using the capital reserve account to acquire land where school and recreation can be jointly located so that could be factored into the equation. He also asked for the go ahead to pursue policy statements for plan 5B. He noted that the Needs Assessment Committee will focus on those issues that relate directly to the referendum and then focus on pay-as-you-go items. A motion was made by Commissioner Willhoit, seconded by Commissioner Crowther to adopt the capital policy as defined in Option 5A presented at the September 17 Board of Commissioners meeting with the changes outlined in the abstract dated October 15 with consideration given to how the $1 million can be covered without an increase in the property tax rate. VOTE: UNANIMOUS B. COMMUNITY SCHOOL FOR PEOPLE UNDER SIX FUNDING REQUEST John Link presented for the Board's consideration of approval a request for funding from the Community School for People Under Six. On April 1, 1996, the Board approved a request from the Community School to construct a 2,150 square feet building addition to the Northside Multipurpose Center located on Caldwell Street in Chapel Hill. Since April, the cost of the expansion project has increased beyond the Community School's budget. The additional cost is the result of parking lot improvements required by the Town of Chapel Hill . John Link talked with Cal Horton who indicated that the Chapel Hill Town Council will consider an allocation for this project at their meeting tomorrow evening. John Link noted that these are permanent improvements that will add to the value of the property owned by the County. Anna Mercer-Mclean, Director of the Community School for People Under Six, said that it will cost an additional $20,300 for the construction work and services required to comply with the Town of Chapel Hill 's conditions of approval for the Zoning Compliance Permit. 11 A motion was made by Commissioner Willhoit, seconded by Commissioner Halkiotis to authorize an appropriation of$15,000 from the Commissioners' contingency to fund the facility improvements at the Community School for People Under Six and encourage the Town of Chapel Hill to pay the remaining amount of$5,300. County appropriations to the Community School will be dispersed after parking improvements have been completed. VOTE: UNANIMOUS C. ARTS COMMISSION POSITION Economic Development Director Ted Abernathy presented for the Board's consideration the information which is in the agenda abstract. Betty Cloutier and Carolyn Leith of the Arts Commission spoke in support of this request to create a new permanent part time, time limited position. A motion was made by Commissioner Crowther, seconded by Commissioner Gordon to approve (1) Establishing the new permanent part time (20 hour or.5 full time equivalent) Information Specialist as a time limited position for up to one year from the date filled, (2) changing the organization alignment of the Arts Commission from Recreation and Parks to Economic Development, and (3) amending the Orange County Classification and Pay Plan to change the title of the current class of Information and Referral Specialist at salary grade 65 to Information Specialist at salary grade 65. VOTE: UNANIMOUS D. ANNUAL TRANSPORTATION IMPROVEMENT PROGRAMS (SIP A TIP) Planner Gene Bell presented for Board approval the Draft Orange County Transportation Priority List. This list will be used by the N.C. Department of Transportation and the Durham-Chapel Hill- Carrboro Metropolitan Planning Organization in the development of the 1998-2004 state and Metropolitan Transportation Improvement Programs. A motion was made by Commissioner Gordon, seconded by Commissioner Crowther to endorse the Orange County Transportation Priority List and authorize the Vice-Chair to sign it and the cover letter to Dr. Gorman Gilbert. VOTE: UNANIMOUS For the record, Commissioners Crowther, Halkiotis and Willhoit indicated they oppose the improvements to Elizabeth Brady Road being proposed by the Town of Hillsborough which will reroute traffic around Hillsborough. It was decided to add a statement to the letter to indicate this opposition. John Link said that he will be contacting DOT for their procedure on improving bridges and will let the Board know what he finds out. E. TO CONSIDER THE Chapel Hill/Carrboro School system CITY SCHOOL REFERENDUM BALLOT County Attorney Geoffrey Gledhill explained that the wording for the ballot was approved on September 3, 1996 and is so noted in the minutes of that meeting. On Friday, October 11, 1996 a section of the ballot language was called into question. That section stated that if the current special district tax rate were expanded it would be at a rate "not to exceed the current rate of thirty five cents ($.35) per one hundred dollars ($100) of property valuation." It is contended by the person or persons calling it into question that as written, the ballot language will mislead the voters to believe that the current tax paid by Orange County taxpayers is $.35 per one hundred dollars of valuation whereas it is actually$.19 per one hundred dollars of valuation. The maximum authorized tax which can be levied is $.35 per one hundred dollars of valuation. Geoffrey Gledhill does not think the ballot language as approved will confuse voters. However, in order to clearly and unambiguously tell the voters that this referendum will not affect the current authorized maximum tax rate of$ .35 per hundred dollars of valuation, he recommends that the ballot for the November 5, 1996 referendum be rewritten. 12 A motion was made by Commissioner Willhoit, seconded by Commissioner Halkiotis to reword the language on the referendum on Use of Proceeds of Chapel Hill-Carrboro School Administrative Unit Special Tax to read as follows: "Expanding the use of the present Chapel Hill -Carrboro School District special tax levied and collected on all of the taxable property within the Chapel Hill -Carrboro School District at a rate not to exceed the current authorized maximum rate of thirty-five cents ($ .35) per one hundred dollars ($100) of property valuation used to supplement the local current expense fund of the Chapel Hill-Carrboro School Administrative Unit, to permit the use of the special tax to supplement the local current expense fund and the capital outlay fund of the Chapel Hill-Carrboro School Administrative Unit and thereby operate schools of a higher standard." VOTE: UNANIMOUS 10. REPORTS - NONE 11. APPOINTMENTS- NONE 12. MINUTES- NONE 13. CLOSED SESSION -To consult with the County Attorney pursuant to NC General Statute Section 143-318.11(a)(3) in the matters of Nello Teer v. Orange County et al. - HELD ABOVE 14. ADJOURNMENT With no further items for the Board to consider, Vice-Chair Halkiotis adjourned the meeting. The next regular meeting will be held on November 4, 1996 at 7:30 p.m. at the Northern Center, Cedar Grove, North Carolina. Moses Carey, Jr., Chair Beverly A. Blythe, Clerk