HomeMy WebLinkAboutMinutes 05-11-2010 APPROVED 6/1/2010
MINUTES
ORANGE COUNTY BOARD OF COMMISSIONERS
BUDGET WORK SESSION
May 11, 2010
7:00 p.m.
The Orange County Board of Commissioners met for a budget work session on Tuesday,
May 11, 2010 at 7:00 p.m. at the Southern Human Services Center in Chapel Hill, N.C.
COUNTY COMMISSIONERS PRESENT: Chair Valerie P. Foushee, and Commissioners Alice
Gordon, Pam Hemminger, Barry Jacobs, Mike Nelson, Bernadette Pelissier, and Steve Yuhasz
COUNTY COMMISSIONERS ABSENT:
COUNTY ATTORNEYS PRESENT: John Roberts
COUNTY STAFF PRESENT: County Manager Frank Clifton and Clerk to the Board Donna S.
Baker (All other staff inembers will be identified appropriately below).
1. Schematic Desiqn Presentation, Link Center Phase 2 — Commissioners' Meetinq Room
Ken Redfoot of Corley Redfoot Zack, Inc. presented a PowerPoint regarding the second
phase of the Link Government Services Center Renovation in Hillsborough.
In March, 2010, County representatives went on a two-day tour of similar facilities in Cary,
Wake County, Durham County, City of Durham, Forsyth County, and Chapel Hill.
N.C. Pharmacy Board Hearing Room
- Primarily used for disciplinary hearings
- 7 years in service
- No dais
- All movable seating for approx. 100
- Functional desk area
- Separate overflow viewing room
Cary Town Council Chambers
- Primarily used for Council meetings, but also rented for community events
- Low dais (7" high)
- All fixed seating for approx. 300
- Very theatrical setting
- Dual presentation podiums, close proximity
- Private Board chambers adjacent
Wake County Board Chambers
- Primarily used for Board meetings
- Renovated from a former courtroom
- Moderate dais (12" high)
- All fixed seating for approx. 200
- Low ceilings/effective lighting for broadcast
- Central presentation podium
Durham City Council Chambers
- Primarily used for Council meetings, but also used by other City Boards
- Renovated from a former courtroom
- High dais (24" high)
- All fixed seating for approx. 200
- Electronic voting system
- Offset presentation podium
- Separate work session room
Durham County Board Chambers
- Primarily used for Board meetings, but also used for joint meetings
- No dais
- All fixed seating for approx. 180
- Very poor lighting
- Offset presentation podium
- Too much desk space per Commissioner
Forsyth County Board Chambers
- Exclusively used for Board meetings
- High dais (18" high)
- All movable seating for approx. 240
- Central presentation podium
- Desk space too deep
- Large suite of offices with several conference rooms adjacent
Ken Redfoot went through what has already been done at the Link Center. The upper level has
been completed.
Phase 2 includes the following:
- Permanent configuration for Board meetings with flexible meeting space adjacent
- 7" high Dais
- 34' x 94' in size
- Fixed seating for 100 and movable seating for 250, 350 total
- Offset presentation podium with close proximity to Board
- Functional desk area
- Commissioners' meeting room and work area adjacent
He asked the County Commissioners for feedback on presentation viewing. There were
different styles of presentation viewing for the facilities that were toured.
Presentation Viewing:
• Projection screens
• Flat screen LCDs
• Individual desk top monitors
TASK Proposed End By
Beginning Date Date
BOCC Action: Authorization to proceed with CD's and 5/11/10 5/11/10
Bidding Process
CRZ prepares documents suitable for bidding project and 5/12/10 6/15/10
submits documents for regulatory approval
Phase 2 Bid Process 6/15/10 7/15/10
Demolition Phase 7/1/10 7/31/10
BOCC Action: Phase 2 Bid Award 8/17/10 8/17/10
Phase II Construction (est. 6 month duration) 9/13/10 3/18/11
Commissioner Hemminger said that this floor plan does not have a middle aisle in the
fixed seating arrangement. She sees this being a major disturbance. She is also concerned
about the entryway into the room and being able to see into the room from the outside of the
lobby.
Commissioner Yuhasz asked about including a window into the wall to be able to see.
Frank Clifton said that there are columns are in this room and a central aisle would
cause reduced seating in the room.
Ken Redfoot said that they could study this.
Commissioner Jacobs seconded Commissioner Hemminger's concern about an aisle in
the middle of the seating. Ken Redfoot said that the seating for 14 people in a row is an
approved code seating length.
Commissioner Jacobs said that straight rows are not as advantageous as curved rows,
and he asked if they could do a schematic design of this type of seating.
David Taylor, CRZ, said that in Durham County the seating had 42-46" seatback to
seatback and this may be an option.
Commissioner Jacobs suggested trying to make it as commodious to residents as
possible.
Frank Clifton suggested staggering seating so that people are not sitting directly behind
someone else. This may accomplish some of the options that Commissioners were concerned
about.
Commissioner Pelissier said that one of her concerns is the disruption of people
coming and going, since the exit door is in the middle of the room as opposed to the back of
the room. She also does not like the flexible seating on the side of the room.
Frank Clifton said that this is dead space because it is an external wall. There could be
extra seats in there for crowds.
Deputy Clerk to the Board David Hunt said that work sessions could go into the flexible
area of the room.
Commissioner Yuhasz said that the flex space would be big enough for an Assembly of
Governments meeting. He asked about a divider between the flex space and the fixed
seating.
Ken Redfoot said that they opted to not show that divider here now, but they could look
at that. Frank Clifton said that if this is done, there may be fire exit issues.
Ken Redfoot said that he could study this further.
Commissioner Jacobs said that it could be a curtain and not a hard divider.
Commissioner Nelson asked about the desk itself and how high it would be. Ken
Redfoot said that the consensus was that the best arrangement was the N. C. Pharmacy
Board room because it is tabletop height.
Commissioner Nelson said that the Southern Human Services Center dais does not
feel right at all for Board of County Commissioners and their interaction with the public. He
asked about desktop functionality and what would be there.
Ken Redfoot said that he wants to make sure there are appropriate functions for the
Board of County Commissioners with data and electricity. The functionality would include
providing that and providing the appropriate width. He asked what kind of technology the
County Commissioners would like to have - microphones, presentation monitors, etc.
Commissioner Nelson said to design it flexibly enough so that as technology changes,
it would still be functional.
Commissioner Yuhasz suggested using the columns as much as possible for electricity
since the floor is concrete.
Commissioner Gordon said that she supports the comments that the other
Commissioners have made. She asked how the presentations would actually work because
this is a long narrow room with low ceilings with columns.
Ken Redfoot said that there are a number of options and he is working with a sound
and visual consultant.
Discussion ensued about the options for presentations in the room.
Frank Clifton said that monitors are the way to go with technology.
Commissioner Pelissier asked what people could see on monitors, especially with
maps, etc. She does not like the idea of monitors at each Commissioner's place because of
the fine features on a larger screen.
Commissioner Nelson asked about the materials that will be used in the space. He
said that he did not like the Cary space except for the rich panels behind the Board of County
Commissioners seating there, which made it warmer. He asked if any thought had been given
to these materials. He said that they should not be afraid of the use of color in the meeting
room.
Commissioner Jacobs said that he would like to see some cost options for seating
chairs for the public to make them as comfortable as possible. Also, he asked about
deconstruction of the room and Ken Redfoot said that there is not much to deconstruct except
some drywalls and reinforced concrete block walls.
Commissioner Jacobs said that when the County traded land with Hillsborough at
Fairview, the County convinced Hillsborough not to build a meeting room there and it agreed to
this. One of the reasons that there was agreement was because the County discussed
sharing meeting space at the Link Center with Hillsborough. He suggested running this
proposed meeting space by the Town as a courtesy, but not for approval.
Commissioner Gordon said that the Manager's recommendation says that if the Board
of County Commissioners desired to move forward on this project, then it costs $750,000. She
asked if the County has this money to proceed forward with this now. The alternative would be
the DSS meeting room. She said that the County has other priority issues such as Emergency
Services, and the Sheriff's office.
Frank Clifton said that they would do short-term financing on this project.
Commissioner Gordon said that this could push the County to its debt service ceiling.
Frank Clifton said that if you do the design work and go out to bids and you get good
bids, then that would be helpful. If the bids come out of line, the Board of County
Commissioners can then decide whether to move forward. He said that this project is on the
books now and a large space is sitting empty in the building now.
Commissioner Gordon said that there are hard decisions to be made during the budget
and she asked if the Board wanted to wait to send it out or do it now.
Frank Clifton said that they would not plan to move forward until after the budget is
completed anyway.
Commissioner Gordon said that the parking issues would also have to be resolved at
the Link Government Services Center and other County offices.
Frank Clifton said that this is mostly related to daytime parking.
Commissioner Yuhasz said that the ADA compliance and other regulatory approval
would still need to move forward and Frank Clifton said that some of it is pending this project
and use of this facility will change the access system. Commissioner Yuhasz said that this is a
reason to proceed with the design phase.
A motion was made by Commissioner Hemminger, seconded by Commissioner Gordon
to send this design back for revisions, bring it back to another work session, and get the
project ready to go.
Commissioner Jacobs said that as long as the Board is clear about moving forward with
the design and not moving forward with the decision and that it is in the context of the budget
and the spending capacity, then that would be an appropriate message.
Commissioner Yuhasz asked that when this comes back that there are more 3D
images.
Commissioner Yuhasz said that the public deserves to have a place where they know
meetings will meet regularly and be televised.
VOTE: UNANIMOUS
2. Appropriations to Fund Existinq County Capital Projects, the Establishment of a
County Capital Reserve Fund and Balance & Close County Capital Projects
Financial Services Director Clarence Grier said that this process has been going on for
many months. There are some solutions for the capital projects such as setting up a capital
projects reserve fund.
Michael Talbert said that there are five distinct actions for the County Commissioners
tonight:
1. Appropriate General Fund Balance to provide funding for County Capital Projects that
have a shortfall.
2. Appropriate Solid Waste Fund Balance to provide funding for Lands Legacy.
3. Establish a County Capital Reserve Fund for future County Capital needs.
4. Review and Close completed and active County Capital Projects.
5. Appropriate County Capital Fund Balance to provide:
a. Funding for four projects with a shortfall.
b. Funding for the County Capital Reserve Fund.
1. Appropriate General Fund Balance to provide funding for County Capital
Projects that have a shortfall.
Michael Talbert said the Board of County Commissioners was presented a two-year plan on
February 3, 2009 related to School and County Capital Projects. The plan was to fund a $5.9
million dollar shortfall from the General Fund. A total of $4.2 million dollars has been
appropriated from the General Fund, $3.5 million in Fiscal Year 2008/2009 and $.7 million in
Fiscal Year 2009/2010. The remaining $1.7 million has not yet been appropriated from the
General Fund.
In February 2009 staff analysis showed that the majority of the remaining shortfalls resulted
from differences between the pay-as-you—go funds budgeted for projects in the County Capital
Projects Fund and the funds actually transferred to the individual projects. Many of these
differences existed when the conversion to the MUNIS System occurred in 2003.
As an accounting reminder, the Board will recall that the General Fund only has annual
appropriations that when not expended at the end of each fiscal year, the remaining funds
lapse into Fund Balance. The County Capital Projects Fund is established by a project
ordinance and the funds only lapse when the project is complete and the project is closed.
Michael Talbert said that their current situation is that there are eleven County Capital projects
that have individual existing budgets that receive transfers from the General Fund. To
complete funding for these projects listed below, an appropriation of $1,739,270 from the
General Fund Balance is needed.
Project Amount
Justice Facility $267,094
Norther Human Services Center $83,022
Senior Center Central Orange $280,533
Animal Services Facility $65,197
EMS Relocation $60,959
Lands Legacy - Unallocated $325,452
Parkland & Recreation Facilities $27,563
Utility E�ension Development $9,450
Affordable Housing $250,000
Roofing Projects $100,000
Information Technology $270,000
Total Project Funding 1,739,270
Michael Talbert said that the appropriation of $1,739,270 from the General Fund has been
anticipated since 2008 when the BOCC was presented a two year plan to fund the shortfall an
will not have an impact in the current Fiscal Year.
He said that the Manager recommends for the Board to approve the appropriation of
$1,739,270 in General Fund Balance to provide funding for 11 County Capital Projects that
have a shortfall.
Commissioner Yuhasz said that this is an accounting transfer and it will reduce the
amount that the County has in the General Fund in order to zero out these capital projects.
Michael Talbert said yes.
Commissioner Hemminger said that she wished that they were not in this situation, but
she is glad to remedy this.
A motion was made by Commissioner Hemminger, seconded by Commissioner
Pelissier to approve the appropriation of $1,739,270 in General Fund Balance to provide funding
for 11 County Capital Projects that have a shortfall.
VOTE: UNANIMOUS
2. Appropriate Solid Waste Fund Balance to provide funding for Lands Legacy
BACKGROUND: Same as Action #1 above.
Michael Talbert said that the current situation is that On December 11, 2007 the BOCC
approved the purchase of 145 acres of land from Fred M. Kirby. Five acres of the total site
was for a solid waste convenience center. The final cost of the project was $1,548,013, with
$50,000 coming from the Solid Waste Fund. This $50,000 transfer was budgeted in Fiscal
Year 2007/2008, but the transfer was never completed to the Lands Legacy Project and the
funds lapsed into the Solid Waste Fund Balance. To complete funding for the Lands Legacy
Project, an appropriation of $50,000 from the Solid Waste Fund Balance needs to be
transferred to the Lands Legacy Project.
Michael Talbert said that the financial impact is the appropriation of $50,000 from the Solid
Waste Fund, while not planned for this fiscal year, will not have a significant impact on the
operation of the Solid Waste Fund.
Michael Talbert said that the Manager recommends the Board approve the appropriation of
$50,000 from Solid Waste Fund Balance to provide funding for Lands Legacy Project.
A motion was made by Commissioner Hemminger, seconded by Commissioner Nelson
to approve the appropriation of $50,000 from Solid Waste Fund Balance to provide funding for
Lands Legacy Project.
VOTE: UNANIMOUS
3. Establish a County Capital Reserve Fund for future County Capital needs
Michael Talbert said that the background information on this item is that on June 11, 2009 the
Board of County Commissioners approved the establishment of a Reserve Fund for the
proceeds from the sale of surplus property with 60% of the proceeds designated for the needs
of older schools and 40% for County needs.
As stated in North Carolina General Statute 159-18 Capital Reserve Funds; "A local
government may establish and maintain a capital reserve fund for any purposes for which it
may issue debt. A capital reserve fund shall be established by resolution or ordinance of the
governing board which shall state (i) the purpose for which the fund is created, (ii) the
approximate periods of time during which the moneys are to be accumulated for each purpose,
(iii) the approximate amounts to be accumulated for each purpose, and (iv) the sources from
which moneys for each purpose will be derived."
Michael Talbert said that the current situation is that the Board of County Commissioners
established a School Capital Reserve Fund many years ago. And this Capital Reserve Fund
has been used successfully for identifying and reserving funds for future School Capital
Projects.
Michael Talbert said that Orange County has several Capital Projects, in the County Capital
Fund, clearly established to serve as a reserve. These projects exist only to act as a reserve
for future projects and funds are not expended from the project, but rather transferred to other
projects when needed. These projects better fit the definition of a Capital Reserve Fund rather
than a Capital Project Fund. In a Capital Reserve Fund the funds can be identified and
reserved for specific purposes, and the BOCC can appropriate these funds for individual
projects approved by the Board.
Michael Talbert said that the establishment of a Capital Reserve Fund will allow the BOCC to
reserve funds for future County Capital Projects but will not have an immediate impact on the
County's financial condition.
Michael Talbert said the Manager's recommendation is for the Board to establish a County
Capital Reserve Fund by approving the attached resolution. The money can be labeled as it
goes in, but it does not get appropriated until the Board votes to do so.
Commissioner Nelson asked if this reserve fund was different or the same as the one
that the Board approved in June 2009 and Michael Talbert said that the one in June 2009 was
never established and it is one and the same.
Commissioner Nelson said that is not correct because the motion in June 2009 was to
set up a specific fund for particular designated projects — renovations at older schools and the
proposed southwest library.
Frank Clifton said that a motion was made at the June 11, 2009 meeting, but no
resolution was ever brought back. Commissioner Nelson said that he has asked for a
resolution at least three times and it has never come back. Frank Clifton said that the last time
Commissioner Nelson asked him about it, the County had not sold any property yet and there
was no resolution on file. The resolution is here now.
Commissioner Nelson said that this is not the same as the motion that was made on
June 11, 2009. He said that he wanted to tag the money for the reasons stated. Frank Clifton
said that the Board can change the motions of a previous board. The money can be tagged
so that there can be an accounting of the money. Some future Board can redirect the money
or put additional money with it.
Commissioner Nelson asked to bring this proposed resolution back rewritten and for it
to reflect the motion from June 2009.
Michael Talbert said that this capital reserve fund can be used for anything and it does
not specify.
Commissioner Nelson asked how the proposed resolution could be amended.
Frank Clifton said that there is already a designated school fund.
Commissioner Nelson said that the school part of the June 2009 motion was a fund set
up for renovations to older school facilities and libraries. Frank Clifton said that he could add a
section here for specific projects such as a one-time revenue source for a specific project. He
said that he wants to make sure that everyone understands that future Boards can change the
designation.
Commissioner Nelson said that the point is that the Board took action on June 11, 2009
and this needs to be reflected. Frank Clifton said that staff could work on wording and add
another section.
Commissioner Pelissier said that maybe it should be two different resolutions — one to
create the Capital Reserve Fund in general and a separate one to designate for certain
projects.
Clarence Grier said that once the Capital Reserve Fund is set up with the resolution,
then the fund balance of the capital reserve could be designated for specific purposes.
Frank Clifton said that the money is still committed from the motion in June 2009, but
the Board of County Commissioners did not have a fund set up yet.
Commissioner Gordon said that she did meet with Michael Talbert to have her
questions on this agenda item answered. She reinforced that the Board does need to take
specific action to do this. Her understanding of the action is that the resolution would be put
on the consent agenda since these types of actions are not taken in work sessions. She
assumes that all of these actions will come back to the consent agenda. Chair Foushee said
that this is correct.
Commissioner Gordon asked if it was preferable to have separate County and School
reserve funds. Michael Talbert said that most counties have two funds.
Commissioner Gordon said that she would recommend that the County Capital
Reserve Fund and the School Capital Reserve Fund come back to the Board. She also wants
to make sure that the School Capital Reserve Fund is not the same as the School Parks
Reserve Fund. It was answered that they are different.
Commissioner Yuhasz asked if the County Commissioners could take money from the
School Capital Reserve Fund and spend it for something else.
Frank Clifton said that any legal action of the Board can be reversed by another legal
action of the Board.
Commissioner Jacobs said that at this point the first action to take is to establish a
Capital Reserve Fund. He said that he would not like to see the motion from last year on the
consent agenda because he wants to discuss it and he has some concerns about it.
A motion was made by Commissioner Hemminger, seconded by Commissioner
Pelissier to establish a Capital Reserve Fund and have another resolution come back
regarding how to restrict funds and designate funds within both school systems and in the
Capital Reserve Fund.
Commissioner Gordon added a friendly amendment to say "County" Capital Reserve
Fund and Commissioner Hemminger said that it is just a Capital Reserve Fund.
Commissioner Gordon said that the resolution says "County Capital Reserve Fund,"
and she wants the motion to track with the resolution.
Frank Clifton said that staff will add a section in the resolution to say, "from time to time,
the Board will designate specific projects within the reserve fund, and those funds that are
allocated are obligated by the Board to be reserved for those projects and those projects only."
VOTE: UNANIMOUS
4. Review and Close completed and active County Capital Projects.
Michael Talbert said as of June 30, 2009, the Comprehensive Annual Financial Report for
Orange County had 84 active capital projects in the County Capital Project Fund. Over the
past eight years, few if any capital projects were closed even though many have been
completed for several years. The purpose of a Capital Project Ordinance is to fund the
acquisition or construction of a capital asset.
A Capital Asset is defined by Governmental Accounting, Auditing, and Financial Reporting
(GAAFR) as: land, improvements to land, easements, work of art, and historical treasures,
infrastructure and all other tangible or intangible assets that are used in the operations and
that have initial useful lives extending beyond a single reporting period.
As stated in North Carolina General Statute 159-13.2 (c) Project Ordinances, "A project
ordinance shall clearly identify the project and authorize its undertaking, identify the revenues
that will finance the project, and make the appropriations necessary to complete the project."
Michael Talbert said that Orange County has established two types of projects in the County
Capital Projects Fund. The first type of project has been established in whole or in part to
construct or acquire a capital asset. The second type of project has been established to act as
a reserve to fund other projects. Both types of projects have rarely been closed even after the
scope of the original project is complete.
He said that Attachment 2 lists twenty-six County Capital projects that are still active even
though they have either been substantially completed or never had any activity. Closing these
projects would provide $245,560 in capital resources that can be used for other capital
priorities.
Attachment 3 lists twelve active County Capital Projects with available balances, that have had
limited activity over the past few years and could be closed as of June 30, 2010. This action
would provide $737,868 in capital resources that can be used for other capital priorities.
Attachment 3 also lists three active projects that are not yet complete and will remain active for
their identified purposes. The available funds identified with these three projects of $825,000
were volunteered by the Department of Environment, Agriculture, Parks and Recreation
(DEAPR) to assist balancing the County's annual budget without further reductions in
programs.
Michael Talbert said the closing of 38 projects and transferring $825,000 from existing projects
to the Capital Projects Fund Balance will make $1,808,428 available for future County Capital
Needs.
He said the Manager's recommendation is for the Board to approve the closing of 38 projects
and the transfer of $825,000 from existing projects to the Capital Projects Fund Balance as
listed on Attachments 2 and 3.
ATTACHMENT 2
Capital Projects to be closed 2009-2010
Available Balances 4/16/10
Actual
Balance
Project Number Project Remaining
in Project
10003 Animal Shelter $ -
10032 Farmers Market $ -
10036 Carrboro Library $ -
10041 Efland Rescue Building $ 12,500.00
20004 Efland Cheeks Park $ -
20007 Greenways Development $ -
20009 Homestead Park/Aquatics $ 96,018.00
20012 Little River Natural Area $ 18,191.00
20013 McGowan Creek Preserve $ 1.00
20016 Other Park Projects $ -
20019 Seven Mile Creek Preserve $ 5,311.60
20020 Smith Middle School Park $ -
20021 Southern Park $ 43,004.46
20022 Sportsplex $ -
20025 Bolin Creek Greenway $ -
20031 Orange HS Tennis $ -
30001 Building Safety $ (0.35)
30020 Masonry Repairs $ -
30021 Painting of County Facilities $ -
30022 Assessments & Testing $ 28,200.00
30026 Elevator Repairs & Imp $ 8,635.00
30027 Fire Alarm System $ 30,000.00
30028 Flooring Replacement $ -
30030 Signage $ 3,700.00
30032 Waterproofing & Drainage $ -
30033 Emergency Communications $ -
$245,560.71
Attachment 3
Attachment 3
County Capital Projects
Active Projects With available balances
Available
Last
Project Last Budget Balance
Number Name Activity Amendment 4/15/2010
10010 Historic Courthouse 2/6/2009 FY 08/09 $ 58,787.52
10030 Dickson House None FY 08/09 $ 12,500.00
10033 Parks Operations 11/18/2008 FY 05/06 $ 181,700.00
Animal Ser
10044 Deconstruct 10/16/2009 FY 09/10 $ 7,000.00
20001 Cates Property 11/10/2009 FY 05/06 $ 22,063.91
20027 New Hope Creek Pres 6/16/2009 FY 09/10 $ 18,741.50
30013 Emergency Power 6/30/2007 FY 06/07 $ 81,014.02
Solid Waste Collection
30015 Ctrs 6/30/2008 FY 07/08 $ 111,301.40
30029 Parking Lot Repairs 6/30/2009 FY 06/07 $ 133,005.00
Capital Repairs
30024 Reserve 6/30/2008 FY 07/08 $ 58,445.16
30025 Facilities Art Reserve 1/26/2010 FY 09/10 $ 3,310.00
30036 Library Task Force FY 08/09 $ 50,000.00
Subtotal $ 737,868.51
Active Projects From ERCD &
Parks
20011 Lands Legacy $ 450,000
20003 Twin Creeks Park $ 300,000
20030 Central Recreation $ 75,000
Subtotal $ 825,000
Other Sources of Available Funds
19999 Unallocated Unbudgeted Sales Tax Revenue $ 285,733.30
19999 Unallocated Unbudgeted Interest Income $ 730,785.29
Subtotal $1,016,518.59
Commissioner Hemminger said that this is not a very transparent process. She thinks
that these funds that are not needed for projects right away should be put back into the
General Fund to get through this economic disaster. She thinks that this is too complicated for
citizens to understand.
Michael Talbert said that the County will have a lot of capital needs in the coming years
and this money can be reallocated over the next two to three years to help fund other projects
with a higher priority.
Commissioner Hemminger said that she is having a hard time with this.
Michael Talbert said that if this is put in the fund balance of the Capital Fund, the
County Commissioners can use it for anything they choose and it can be moved back to the
General Fund.
Commissioner Hemminger said that she wants to be more transparent with the public.
Frank Clifton said that he has never seen as many old projects left to sit in the
accounts. He said that he is trying to create some transparency. He does not know why the
auditors have not brought this issue to the County Commissioners' attention before. He said
that there is no way that it could have been missed as a confusing system.
Commissioner Gordon made reference to the County Capital Projects Fund and asked
if there was an amount in there in the beginning. Michael Talbert said that there is not money
in it because they never closed any projects out.
Commissioner Gordon said that she is inclined to go along with this as a way to clean
up the records. She accepts the argument that some money should be kept in a capital
reserve. She made reference to Twin Creeks Park and said that there was actually bond
funding of $300,000 designated for this. When the financial situation improves, she would like
to put the $300,000 back for Twin Creeks.
Commissioner Jacobs said that the Homestead Park Aquatics Center and Southern
Park are also bond projects. He said that, as the Board makes cuts, he would like to keep
track of where they take money from and where it goes. He said that he would like to have the
opportunity to visit what these activities are and why they were funded so that things can be
put into context. He said that whatever the Board does should be accompanied by this list so
that when the Board revisits the County Capital Reserve Fund, everyone understands where
the money was taken.
Frank Clifton said that this can be done through the minutes of the meeting in which the
action was taken. Then it will always be available for someone to research.
Commissioner Jacobs asked that someone put words to some of these projects so that
everyone knows what these projects mean.
Michael Talbert said that he would do this.
Commissioner Jacobs said to asterisk the ones that were bond projects.
Commissioner Nelson said that he is not as comfortable with this as others are. He
does not know what some of these projects are, so it is hard to say that he is comfortable
cutting them and moving the money somewhere else and he does not understand where the
somewhere else is yet. Regarding the second section, he has some of the same concerns
and he is not ready to approve these suggestions. For attachment 3, he asked if the item for
the Library Task Force funding was for the Southwest Orange Library, and he was told that it
was.
Frank Clifton said that one of the troubling aspects of what the County Commissioners
have done in the past is that the County is paying debt service and interest on bond funds that
are being held because there were not enough funds to complete a project. He thinks that it
would be better to take the bond funds and pay down the debt.
Commissioner Gordon said that, after hearing the discussion, she thinks the County
Commissioners need more information on what these projects are before she can recommend
this action. She thought that she could go with the staff recommendation as it is but she
realizes that after the further discussion, the Board needs more description on these bond
projects.
Commissioner Pelissier said that the County Commissioners need to see project
ordinances on each of these projects so that a determination can be made on which projects
to close out. She suggested a yearly report on all capital expenditures so that the Board can
keep track of what is happening with capital expenditures.
Commissioner Nelson said that he is less confused about bond money and paying off
the debt. He asked for a list of bond money from projects and Frank Clifton said that staff
would have to go back and determine this.
Michael Talbert said that there are project ordinances and they become part of the
minutes. He can research the project ordinances and find out when action was taken and
why. He said that a yearly work session would be outstanding. Regarding funding sources, he
said that it would be difficult to get this information. For example, Lands Legacy has three
different bond issues and there have been many transfers in and out of this project. It is very
complicated to keep up with. Regarding bond funds, he said that the County can reuse them
for debt service and they can be allocated for other bond projects or anything else that bond
money could be spent on.
Chair Foushee thanked all that were involved in bringing this forth to the Board. She
said that the comments made have indicated the frustration that the County Commissioners
have had over the course of several years with the information that has been brought forward.
She said that she is more comfortable with the information that she has received tonight than
she has been in the five and a half years of being a County Commissioner. It is clear that
more information is needed before approving this last item. She would hope that the
information brought forward can come as soon as possible so that everyone understands what
is happening.
Commissioner Hemminger said that there is no problem with attachment 2, but the
problem is in attachment 3 and that the County Commissioners needs more information on
those first 12 projects. She said that saying that there is $300,000 that can be spent on Twin
Creeks and then coming back and saying there is a shortfall of $900,000 is too confusing.
A motion was made by Commissioner Hemminger, seconded by Commissioner Nelson
to take Attachment 2, close out those projects and move the money to the County Capital
Projects Fund Balance and take the other sources of available funds and close them out and
move them to the Capital Projects Fund Balance, and get more information on the other
projects before moving forward.
Commissioner Yuhasz said that he needs a chart of the different funds.
Michael Talbert said that the Capital Reserve Fund is what the Board just discussed
setting up. This is money set aside for a future purpose. The County Capital Project Fund,
where all of these 84 projects reside, is a separate fund. When those projects are closed out,
it goes into that fund balance. That fund balance can then be used like the general fund
balance is used for other projects.
Commissioner Gordon said that on Attachment 2 the Board still needs some
descriptions on these projects first, especially for the bond projects.
Commissioner Jacobs said that there is $144,000 from two bond projects that have
available balances that are going to be closed — the Homestead Aquatic Center and Southern
Park. He said that just moving this money into a reserve will not help with using the bond
money. He suggested designating this toward debt or something.
Michael Talbert said that there is a shortfall list on the next motion.
Commissioner Gordon asked for the motion to be restated.
Commissioner Hemminger restated the motion:
Take Attachment 2, close out those projects and move the money into the Capital Fund
Balance and take the other sources of available funds and close them out and move them into
the Capital Fund Balance, and then wait to get the other two lists on Attachment 3 to have
more information before doing anything with those items.
VOTE: Ayes, 6; No, 1 (Commissioner Gordon)
Frank Clifton said that the intent is to put these on the next regular meeting consent
agenda so that there can be official action.
Commissioner Gordon said that she voted against this because she did not get clarity
about the bond funds that may be in Attachment 2.
Frank Clifton said that it will all be put in the fund balance and then the Board can
decide out of that.
Clarence Grier said that it would be rolled into the fund balance and then it could be re-
appropriated to capital projects within the fund balance.
Frank Clifton said that, from this point forward, when projects are finished, they will be
closed out.
5. Appropriate County Capital Fund Balance to provide:
a. Funding for four projects with a shortfall; and
b. Funding for the County Capital Reserve Fund
Commissioner Hemminger said that this is a non-issue but she has great reservations
about leaving money in Twin Creeks Park since that is not enough money to build a park. She
would rather pay off debt. She said that she would like to have a work session about the
future of these projects.
Michael Talbert said that the information brought back will include these projects.
Commissioner Yuhasz said that the Board just created $1.26 million of County Capital
Projects Fund Balance that will sit there until the Board decides what to do with it. He thinks
that this money should be used to take care of some of the items under#5.
There will be more discussion on this issue.
A motion was made by Commissioner Nelson, seconded by Commissioner Jacobs to
adjourn the meeting at 9:32 p.m.
VOTE: UNANIMOUS
Valerie Foushee, Chair
Donna S. Baker, CMC
Clerk to the Board