HomeMy WebLinkAboutAgenda - 06-15-2010 - 4a 1
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: June 15, 2010
Action Agenda
Item No. 4-a
SUBJECT: MINUTES
DEPARTMENT: PUBLIC HEARING: (Y/N) No
ATTACHMENT(S): INFORMATION CONTACT:
Donna Baker, 245-2130
Minutes
PURPOSE: To correct and/or approve the minutes as submitted by the Clerk to the Board as
listed below:
May 18, 2010 BOCC Regular Meeting
May 27, 2010 BOCC Budget Work Session
BACKGROUND: In accordance with 153A-42 of the General Statutes, the Governing Board
has the legal duty to approve all minutes that are entered into the official journal of the Board's
proceedings.
FINANCIAL IMPACT: NONE
RECOMMENDATION(S): The Manager recommends the Board approve minutes as
presented or as amended.
1
1 DRAFT
2
3 MINUTES
4 ORANGE COUNTY BOARD OF COMMISSIONERS
5 REGULAR MEETING
6 May 18, 2010
� 7:00 p.m.
8
9
10 The Orange County Board of Commissioners met in regular session on Tuesday, May 18,
11 2010 at 7:00 p.m. at the Southern Human Services Center in Chapel Hill, NC.
12
13 COUNTY COMMISSIONERS PRESENT: Chair Valerie P. Foushee, and Commissioners
14 Alice M. Gordon, Barry Jacobs, Pam Hemminger, Mike Nelson, Bernadette Pelissier and Steve
15 Yuhasz
16 COUNTY COMMISSIONERS ABSENT:
17 COUNTY ATTORNEYS PRESENT: John Roberts
18 COUNTY STAFF PRESENT: County Manager Frank Clifton, Assistant County Managers
19 Willie Best and Gwen Harvey, and Clerk to the Board Donna S. Baker (All other staff members
20 will be identified appropriately below)
21 '
22 NOTE: ALL DOCUMENTS REFERRED TO IN THESE MINUTES ARE IN THE PERMANENT
23 AGENDA FILE IN THE CLERK'S OFFICE.
24
25 1. Additions or Chanqes to the Aqenda
26 The Board added a closed session item:
27
28 "Pursuant to G.S. § 143-318.11(a)(3) "to consult with an attorney retained by the Board in order
29 to preserve the attorney-client privilege between the attorney and the Board."
30
31 A motion was made by Commissioner Hemminger, seconded by Commissioner Gordon
32 to approve adding this closed session.
33 VOTE: UNANIMOUS
34
35 The Chair asked that the Board pull item 4-f from the consent agenda.
36
37 A motion was made by Commissioner Jacobs, seconded by Commissioner Hemminger
38 to pull item 4-f on the consent agenda, General Enpineerinq and Environmental Manaqement
39 Services Contract.
40
41 VOTE: UNANIMOUS
42
43 PUBLIC CHARGE
44
45 The Chair dispensed with the reading of the public charge.
46
47 2. Public Comments
48 a. Matters not on the Printed Apenda
49 AI Hartkopf, Chair of the Hillsborough Board of Adjustment, said that there have been
50 concerns about the parking issue with the justice facilities. He said that there are statements
2
1 that the Board of County Commissioners have approved the plans brought before the Board of
2 Adjustment. He said that he does not believe that and before this is spun out of control, as an
3 elected body, he asked that the Hillsborough Board of Adjustment and the Board of County
4 Commissioners try to become of one mind and that these discussions are done in open
5 session.
6
7 b. Matters on the Printed Apenda
8 (These matters were considered when the Board addressed that item on the agenda
9 below.)
10
11 3. Proclamations/ Resolutions/Special Presentations
12 a. Presentation of the Southern Gerontoloaical Societv's 2010 Best Practices
13 in Aqina Award to Oranae Countv
14 The Board received the Southern Gerontological Society's 2010 Best Practices in Aging
15 Award from Dr. Janice Wassel, President of the Southern Gerontological Society.
16 Department on Aging Director Jerry Passmore introduced Dr. Janice Wassel. He said
17 that Dr. Wassel is also an active member of the Orange County Advisory Board on Aging and
18 her expertise has been tremendous.
19 Dr. Janice Wassel said that Orange County is an amazing county and one of the first
20 counties to develop and formalize a Master Aging Plan. Nationally, Orange County has been a
21 model for other counties and states. She presented Orange County with this award. This
22 society is a network of the south's best gerontology doctors. She said that Orange County and
23 the Department on Aging, together with UNC faculty, have built excellent bridges. She read the
24 list of individuals receiving this award:
25 Kate Barrett— Department on Aging Transition Administrator
26 Jan Gerard— Licensed Clinical Social Worker
27 Vibeke Tally— Department on Aging Occupational Therapist
28 Dr. Rachel Rasteed — Physician at UNC's School of Medicine
29 Jenna Birkhart— Pharmacist from UNC's School of Pharmacy
30 Janice Tyler— Department on Aging Senior Center Administrator
31 Myra Austin — Department on Aging Wellness Coordinator
32 Dr. Carol Giuliani — Physical Therapist, Director of UNC Human Movement and Science
33
34 Commissioner Nelson arrived at 7:09 PM.
35
36 Dr. Wassel said that she has served on the Advisory Board on Aging for years and she
37 is concerned that this advisory board may not be able to continue to serve in its current function
38 if it does not remain an independent board, separate from the senior centers. She said that
39 demographically the board is diverse racially, age-wise, professionally, and with regard to
40 education.
41
42 b. Distinquished Budqet Presentation Award
43 The Board considered recognizing the budget staff of the Orange County Financial
44 Services Department for earning the Government Finance Officers' Association Distinguished
45 Budget Presentation Award for the 2009-10 fiscal year budget document.
46 Financial Services Director Clarence Grier said that the County has received this award
47 for many years and he is accepting it on the behalf of the Budget department. He recognized
48 Paul Laughton, Tonya Walton, and Allison Chambers.
49 The Board recognized the Orange County Finance Department for earning the
50 Distinguished Budget Presentation Award.
3
1 Clarence Grier recognized Donna Coffey, as this was her last budget cycle with Orange
2 County.
3
4 c. Presentation of Manaper's Recommended Fiscal Year 2010-11 Annual
5 Operatinq Budqet
6 The Board received the Manager's Recommended FY 2010-11 Annual Operating
7 Budget.
8 Frank Clifton said that the County Commissioners recognized beginning last fiscal year
9 the hurdles that they would be facing this year. The Board's direction to him was the desire to
10 bring back a balanced budget with no tax increase. He said that there are only two
11 departments that will not have fewer employees than last year—Child Support Services and
12 EMS, which are adding needed staff to improve response time. He said that the County relies
13 heavily on property taxes for its revenue. He said that over the last few years, the County has
14 drawn down its fund balances, but this is not a good practice in the long term. He has tried to
15 move the fund balance to about 10-12%. He said that if there is not more economic
16 development, the County will rely more heavily on the property tax.
17 Clarence Grier and Michael Talbert made the PowerPoint presentation.
18
19 County Manager's Recommended 2010-11 Annual Operating Budget
20 Presentation I
21 Southern Human Services Center, Chapel Hill
22 Orange County, NC
23 May 18, 2010
24
25 Recommended General Fund Budget
26 ❑Totals $174.9 million
27 ■Decrease of$2.7 million from original current year budget of$177.6 million.
28 Represents an $8.9 million decrease from the current year amended budget.
29
30 ■Represents 1.5 percent decrease from previous year original budget.
31 ❑Budget decreases means everyone—schools, non-profit agencies, and county
32 departments - receive less money next year than they received this year
33
34 Guiding Principles
35 ■Meets Board directives
36 ❑Balances County's operating budget without a property tax rate increase
37 ❑Fund local school districts at 48.1% of the County's General Fund
38
39 Proposed Ad Valorem Tax Rate Effective July 1, 2010
40 ❑Recommended tax rate of 85.8 cents per$100 of assessed valuation
41 ■This is the rate that produces $132 million in property tax revenues for FY2010-11
42 ■Overall Property valuation increased 1.1%
43 ❑One cent on property tax estimated to generate $1,521,612
44
45 Sales Tax Revenues
46 ❑Recommended Sales Tax Revenues of$14.4 million is 14.3% less than the $16.8 million
47 budgeted in 2009-10
48 ■Actual sales tax revenues are down over 30% since the peak of$22.5 million in fiscal
49 2007-08
50 ■The Medicaid - Sales Tax swap will limit future growth of Sales Tax Revenues
4
1
2 Medicaid -Sales Tax Swap Formula
3 Fisca12009-2010
4
5 County Estimated Revenues $15.7 million
6 Less Cities Hold Harmless $2.0 million
7 County Revenues $13.7 million
8
9 County's Hold Harmless $3.2 million
10 Plus Cities Hold Harmless $2.0 million
11 County Lost Revenues $5.2 million
12 Less Estimated Medicaid $5.0 million
13 Hold Harmless Threshold $ .2 million
14
15 Medicaid -Sales Tax Swap Formula �I
16 Hold Harmless Threshold $ .2 million
' 17 Plus $.5 million Guaranteed by state$ .5 million
18 Estimated County Hold Harmless $ .7 million
19
20 Total Sales Tax Revenues $14.4 million
21 (13.7 million + $.7 million)
22
23 Sales Tax before Medicaid Swap $15.7 million
24 Net Hold Harmless Revenue Loss $ 1.3 million
25
26 Medicaid - Sales Tax Swap Summary
27 Estimated Medicaid
28 Now paid by the State $5 million
29
30 Sales Tax Revenues lost
31 Due to Medicaid Swap $1.3 million
32
33 County Benefit of Medicaid Swap $ 3.7 million
34
35 Sales Tax Revenues Summary
36 ❑2010-2011 Sales Tax Revenues estimated to grow by 2%
37 ❑2010-2011 Medicaid Expense estimated to grow by 8-10%
38 ❑The County will continue to benefit from the Medicaid - Sales Tax swap but future growth of
39 Sales Tax Revenues will be limited.
40
41 Proposed Chapel Hill Carrboro City Schools District Tax Rate Effective July 1, 2010
42 ❑Recommended tax rate of 18.84 cents per$100 of assessed valuation
43 ■Represents no increase in the property tax rate for the District
44 ❑Recommended tax rate will generate $18.6 million
45 ■In addition to funds district will receive from Countywide property taxes
46 ❑One cent on district tax estimated to generate $987,247
47
48 Recommended Funding for Chapel Hill Carrboro City and Orange County Schools
49 ❑Total General Fund appropriation totals $84.1 million
5
1 ■These funds will fund day-to-day operations, repayment of school related debt, and
2 capital
3 �Appropriation equals 48.1 percent of total General Fund
4 ■Reflects $1.3 million decrease from current year General Fund appropriation
5 ■Equates to $3,096 per student for each of the 19,177 students in both districts for day-
6 to-day operating funds
7 ■In addition, Chapel Hill Carrboro City Schools will receive additional $18.6 million from
8 special district tax
9
10 Additional Funding for Local Schools
11 ❑In addition to the $84.1 million for operations, debt and capital, recommended budget
12 allocates $1.8 million to fund non-mandated safety net initiatives for both school districts. Some
13 of these initiatives are:
14 ■School Health Nurses - $610,729, a decrease of 7,003
15 ■School Resource Officers and Social Workers for- $531,255, an increase of$31,000.
16 ■School Social Workers - $642,374, the same funding as the current year
17
18
19 Funded County Initiatives
20 oMajor Changes in Services
21 .General Government
22 .Realignment and reassignment of employees with the County Manager Office
23 .Elimination of County switchboard operation (relocation of staf�
24 .Ending the custodial contract with Orange Enterprises
25 .Cuts in utilities '
26 .Reduced resources for in-house spay and neutering services provided by Animal
27 Services
28 .Reduction in use of temporary personnel across departments
29
30 .General Services
31 .Reduced information technology purchases
32 .Sanitation moved to Solid Waste
33 .Reduction of temporary personnel across departments
34 .Reduction in the number of available early voting sites from four to two.
35
36 .Community and Environment
37 .Art Commission has been moved to the Visitors Bureau for funding purposes.
38 .Reduction of temporary personnel across departments
39
40 .Human Services
41 .Discontinuing the Cooperative Extension Breast Feeding Program ( Relocation of staffl
42 .Reduction of temporary personnel across departments
43
44 .Public Safety
45 .Increased personnel and reassignment of existing personnel.
46 .Add one new Emergency Medical Service (EMS) vehicle to decrease emergency
47 response time.
48 .Reduction of temporary personnel in the ES department
49 Examples of Recommended Changes in County Services
6
1 ■Merged services for recreation and parks
2
3 ■Culture and Recreation
4 ■Reduced and merged library hours for the McDougle and Cybrary branches in Carrboro.
5 ■Reduction of temporary personnel
6 ■Close Cedar Grove Branch Library
7
8 ■Non Profit Organizations
9 ■Reduce funding provided to non-profit organizations from $1,043,742 for FY2009-10 to
10 $848,600.
11
12 ■Long Range/Pay-as-you Go County Capital
13 ■Long range/pay-as-you go county capital will be reduced to $300,000 from $2.6 million in
14 FY2009-10. This represents a decrease of$2.3 million.
15
16 FY2010-11 Budget Impacts
17
18 Where the Money Goes
19 Additional Funding Options
20 ❑Article 46 %4 Sales Tax
21 ❑Appropriated Fund Balance, if necessary
22
23 Public Hearings and Work Sessions (All Meetings Begin at 7:00 p.m.) '
24 Document Availability
25 ❑Clerk to Board of Commissioners
26 ❑County Financial Services Office
27 ❑Orange County Library
28 ❑Chapel Hill Public Library
29 ❑Carrboro/McDougle Branch Library
30 ❑Cybrary, Carrboro
31 ❑Cedar Grove Branch Library
32 ❑Orange County Website
33 ■www.co.orange.nc.us
34
35
36 Clarence Grier said that this was one of the most difficult things he had to do and the
37 departments did a great job in helping to cut the budget the way they did.
38 Frank Clifton said that the key to the reduction in education is not in the classrooms but
39 in capital. He said that he does recommend funding Durham Tech at 100% of its current
40 budget because this goes to maintenance of the building only. In looking at outside agencies,
41 he said that he looked at ones that were duplication of services, etc. He suggested that the
42 County might want to look at the '/4-cent sales tax because the land transfer tax has failed and
43 continues to fail in other counties. He suggested having a referendum phrased so that the
44 public would know clearly what the money was being directed toward. It would only produce
45 $500,000 in this year's budget because it would take about three or four months after it was
46 implemented before the County received funds. He thinks that it would probably be two to three
47 years before true results were seen. As of 2008, Orange County ranked #2 in the State in per
48 capita income. In that same year, Orange County ranked #77 out of 100 counties in sales tax
49 collections per capita. This means that the people that live in Orange County are shopping
�
1 elsewhere. He thinks that this needs to be a priority— increasing the sales tax by increasing
2 economic development.
3 Frank Clifton said that he did move the Arts function to be funded under tourism
4 because it is a steady source of revenue and it is tied to overnight stays. There is a close
5 relationship between the Arts function, economic development, and tourism in Orange County.
6 Also, the tourism function has two taxes—the Town of Chapel Hill and Orange County. The
7 County dedicates 100% of tourism revenues to the tourism function and the Town of Chapel Hill
8 designates 15% of its coflections. Theoretically, Orange County could move 85% of those
9 revenues out of tourism and into some other County function. He would like to continue to have
10 dialogue with the Town of Chapel Hill about how it might participate at a higher level toward the
11 promotion of tourism within Chapel Hill and Orange County. Also, there was a reserve fund set
12 up a while ago in the tourism budget in the amount of about $200,000, so it has been moved
13 back to Economic Development for small business loans.
14 Frank Clifton made reference to ways of further reducing the budget and said that
15 roughly 50% goes to education and that leaves 50% for County functions. Of that 50%,
16 probably 25% of the 50% would be federal or state dollars being passed through to supplement
17 services delivered under federal and state guidelines. The remainder of it is property tax, sales
18 tax, and fees for service. He said that they have wiped out County budgets this year and there
19 is no capital except for minor things. He said that there are only four new employees and they
20 are for EMS. There was also some restructuring done in EMS and he eliminated six middle
21 management positions. These are now paramedic slots. �
22 Frank Clifton said that there are no salary or cost-of-living increases. There will be an
23 increase in health insurance of about $200,000. Retiree insurance is going to increase by
24 $250,000 and there was a mandated increase in retirement benefits. The living wage has been
25 maintained at $10.12/hour.
26 Frank Clifton said that this was one of the most difficult budget cycles that he has had
27 to deal with. He said that Orange County does more for its residents than any local government
28 that he has been associated with. It is very difficult to balance the budget without affecting
29 people in a dramatic way.
30
31 Commissioner Jacobs asked if the 48.1% for schools included the $1.8 million for non-
32 mandated safety net and Frank Ctifton said no. He said that the Board has had a chart every
33 year. He would like to request this chart to have total County effort toward school funding that
34 includes capital debt and per-pupil compared to other counties in North Carolina.
35 Commissioner Jacobs said that when the Board had the retreat about advisory boards,
36 it talked about hearing from advisory boards before any decisions were made about the
37 dissolution or changing of boards and commissions. He said that he is fully supportive of the
38 concept of the Arts Commission moving under the Visitor's Bureau, but he thinks that those
39 respective boards should discuss this before the budget is adopted on June 15tn
40 Frank Clifton said that he made no assumptions that these boards would not continue
41 to meet as they have. There is no reduction in funding, but it is just an assignment of that cost
42 to tourism dollars.
43
44 PUBLIC COMMENT:
45 Kristin Miller spoke on the importance of the Orange County Health Department. She
46 said that she was raised by a single mother with limited income. If they needed health care,
47 they went to the Health Department and she continues to go there even as an adult. There are
48 many hard working residents like her and she cannot imagine what they would have done
49 without this state-supported option.
8
1 AI Hartkopf said that he was advised by the management of Lowes Foods at
2 Hillsborough Commons that the lease was not going to be renewed in October. He said that he
3 understands that there is a lease with an option to buy surrounding the DSS facility at
4 Hillsborough Commons. He said that the property tax here would be lost if this tenant leaves as
5 well as the sales tax revenue.
6
7 Frank Clifton said that the County got notice last week that Lowes was not going to
8 renew its lease. The owner of the building contacted the County to see if they wanted to have
9 discussions about this site and there have been no discussions yet. There was a work session
10 several months ago and the proposed purchase price is not something that he can recommend
11 from a financial standpoint for the County and it exceeds the reasonable boundaries. He said
12 that the County also does not want to be in a position of kicking out active businesses.
13
14
15 4. Consent Aqenda
16 A motion was made by Commissioner Hemminger, seconded by Commissioner
17 Pelissier to approve those items on the consent agenda as stated below:
18
19 a. Minutes
20 The Board approved the minutes from April 13, 20, and 27, 2010 as submitted by the Clerk to
21 the Board. !,
22 b. Appointments— None
23 c. Motor Vehicle Propertv Tax Release/Refunds
24 The Board adopted a refund resolution, which is incorporated by reference, related to 26
25 requests for motor vehicle property tax releases or refunds.
26 d. Home and Communitv Care Block Grant for Older Adults Fundinq Plan for FY2010-11
27 The Board approved the recommended Home and Community Care Block Grant for Older
28 Adults Funding Plan for FY 2010-11 in the amount of$481,880 and authorized the Chair to
29 sign.
30 e. Renewal of Food and Orqanic Waste Collection and Compostinq Contract
31 This item was removed and placed at the end of the consent agenda for separate
32 consideration.
33 f. General Enqineerinq and Environmental Manaqement Services Contract
34 The Board was to consider approving a three-year agreement for general engineering and
35 environmental services with HDR Engineering, Inc. of the Carolinas for professional
36 engineering services for the Solid Waste Management Department and authorized the Chair to
37 sign.
38 THIS ITEM WAS REMOVED
39 g_ Contract Befinreen US Housinp and Urban Development and Oranae Countv•
40 Economic Development Irtitiative Grant for the Piedmont Food �Apricultural
41 Processinq Center
42 The Board approved a contract with US Housing and Urban Development (HUD) accepting a
43 $237,500 Economic Development Initiative grant for the Piedmont Food and Agricultural
44 Processing Center subject to County Attorney review and authorized the Chair to sign.
45 h. Grant Submittals to 1) US Department of Apriculture Rural Development -
46 Communitv Facilities Grant Proqram and 21 NC Specialtv Crops Proaram for the
47 Piedmont Food and Aaricultural Processina Center
48 The Board authorized staff to submit 1) a $250,000 grant proposal to the US Department of
49 Agriculture, Rural Development—Community Facilities grant program and 2) a $100,000 grant
9
1 proposal to the NC Specialty Crops Program for the Piedmont Food and Agricultural Processing
2 Center.
3 i. Business Plan for the Piedmont Food and Aaricultural Processinp Center
4 The Board received the business plan for the Piedmont Food &Agricultural Processing Center
5 and authorized the staff to continue with the establishment of the Piedmont Food &Agricultural
6 Processing Center.
7 i Fiscal Year 2009-10 Budaet Amendment#10
8 The Board approved budget, grant and capital project ordinance amendments for Fiscal Year
9 2009-10 for Department of Environment, Agriculture, Parks and Recreation; Economic
10 Development; Department on Aging; Economic Development (Value-Added Processing Center
11 Capital Project Ordinance); Board of Elections; and Emergency Services Department.
12 k. Appropriation of General Fund Balance to Fund Existina Countv Capital Proiects
13 The Board approved the appropriation of$1,739,270 in General Fund Balance to provide
14 funding for 11 County Capital Projects which have a shortfall.
15 1. Appropriations of Solid Waste Fund Balance for the Lands Leaacv Proiect
16 The Board approved appropriating $50,000 from the Solid Waste Fund Balance to provide
17 funding for the Lands Legacy Project.
18 m. The Establishment of a Countv Capital Reserve Fund
19 The Board established a County Capital Reserve Fund for future County Capital needs by
20 approving the attached resolution.
21
22 RESOLUTION
23 ESTABLISHMENT OF THE COUNTY CAPITAL RESERVE FUND
24
25 WHEREAS, there is a need in Orange County, North Carolina to accumulate funds for future
26 County Capital needs;
27
28 NOW, THEREFORE, BE IT RESOLVED BY THE ORANGE COUNTY BOARD OF
29 COMMISSIONERS THAT:
30
31 Section 1. The Governing Board hereby creates a Capital Reserve Fund for the purpose of
32 funding future County capital needs.
33
34 Section 2. The fund will remain operational until such time as it is no longer needed.
35
36 Section 3. The County Capital Reserve Fund will be funded by:
37 - Pay as you go funds (i.e. property tax, sales tax)
38 - General Obligation Bonds
39 - Alternative Financing
40 - Other revenue sources the Board of Commissioners chooses to dedicate
41
42 Section 4. The Board of County Commissioners may designate funds to be reserved for a
43 specific future project that will be tracked individually, until the funds are appropriated for a
44 s ecific ca ital ro'ect in th
p e Count Ca ital Pr �
p p J y p o�ects Fund.
45
46 Section 5. This resolution shall become effective upon adoption.
47
48 n. Close Completed Countv Caqital Proiects
49 The Board approved the closing of 26 completed County Capital Projects.
10
1 0. Amendment to the Oranae Countv Personnel Ordinance Article IV Section 14 0 ',
2 Familv Leave to Add Provisions for Familv Medical Leave Act of 1993 �
3 The Board approved the amendment to Article IV, Section 14.0 of the Orange County
4 Personnel Ordinance, to be effective upon signature of the administrative Rules and
5 Re ulations b the Count M n
g y a a er to add rovisions relatin to the Famil and M i
Y 9 � P 9 y ed cal Leave
6 Act of 1993.
7 � Resolution — Medical Waste Incinerator Reaulatorv Standards
8 The Board approved a resolution calling for the North Carolina Environmental management
9 Commission to adopt State rules on early implementation of new federal emissions standards
10 for medical waste incinerators and approved the conveyance to the North Carolina
11 Environmental Management Commission prior to the May 25th public hearing.
12
13 RESOLUTION
14
15 REQUESTING THE ADOPTION OF STATE RULES REQUIRING
16 EARLY IMPLEMENTATION OF FEDERAL STANDARDS FOR
17 HOSPITAL, MEDICAL AND INFECTIOUS WASTE INCINERATORS
18
19
20 WHEREAS, on October 6, 2009, the United States Environmental Protection Agency
21 ("USEPA") adopted Federal regulations in 40 CFR 60 Subpart Ce, entitled "Emission Guidelines
22 and Compliance Times for Hospital/Medical/Infectious Waste Incinerators" for existing medical
23 waste incinerators ("New Federal Standards"); and
24
25 WHEREAS, the New Federal Standards establish lower emission rates and additional operating
26 conditions than existing State and prior Federal regulation; and
27 .
28 WHEREAS, the New Federal Standards require states to promulgate new state rules that will
29 require existing medical waste incinerators to comply with the New Federal Standards no later
30 than October 6, 2014, and to obtain USEPA approval of the new state rules within two years
31 after October 6, 2009; and
32
33 WHEREAS, a public hearing is scheduled for May 25, 2010 for the "Title V" permit renewal for a
34 medical waste incinerator in Haw River in adjoining Alamance County owned by Stericycle,
35 Incorporated; and
36
37 WHEREAS, the timing of this permit renewal is such that renewal will occur prior to
38 implementation of the new USEPA rules by the North Carolina Environmental Management
39 Commission; and
40
41 WHEREAS, Stericycle's annual waste incineration at its facility was reported as over 26 million
42 pounds last year, with the potential for prevailing westerly winds to carry emissions into Orange
43 County from this location, and
44
45 WHEREAS, public concerns regarding medical waste incineration have been recently
46 expressed by other local governments, specifically Mecklenburg County, the nearby Towns of
47 Matthews and Stallings, and members of the public and environmental groups; and
48
49 WHEREAS, the USEPA's action effectively provided notice that emission rates and other
50 requirements would change; and
11
1
2 WHEREAS, a three year advance notice period for compliance would be consistent with
3 USEPA's approach in regulating existing affected sources under the Maximum Available
4 Control Technology (MACT) program; and
5
6 WHEREAS, since the North Carolina Division of Air Quality has already initiated the rulemaking
7 process to incorporate the New Federal Standards into the North Carolina rules, it would be
8 more efficient for the State to adopt a statewide rule as required by USEPA and pursue
9 statewide implementation of the New Federal Standards;
10
11 THEREFORE, BE IT RESOLVED
12
13 That the Orange County Board of Commissioners respectfully requests that the North Carolina
14 Environmental Management Commission adopt State rules implementing the October 6, 2009
15 Federal guidelines (40 CFE 60 Subpart Ce Emission Guidelines and Compliance Times for
� 16 Hospital/Medical/Infectious Waste Incinerators), with an effective compliance date for existing
17 medical waste incinerators of no later than October 6, 2012 to include new operating conditions,
18 completing modifications, beginning operations and demonstrating compliance by stack test by
19 that date.
20
21 This, the 18th day of May, 2010. ,
22 '
23 VOTE ON CONSENT AGENDA: UNANIMOUS
24
25 5. Items Removed From Consent Aqenda
26
27 e. Renewal of Food and Orqanic Waste Collection and Compostina Contract
28 The Board considered renewing the contract that enables the County Solid Waste
29 Management Department to provide collection and composting services for separated food
30 waste, organic material and animal bedding to commercial and institutional establishments
31 throughout the County, including for UNC-Chapel Hill and authorizing the Chair to sign.
32 Commissioner Jacobs said that the last time this contract was renewed, he had some
33 issues with it, and he still has some questions about it. There are two glaring absences in food
34 waste collection. He asked about the schools and if they contract their food waste disposal
35 separately.
36 Solid Waste Director Gayle Wilson said that the County schools are not on the food
37 waste program. It was on it at one time, but it is not on it at the present time.
38 Commissioner Jacobs said that it looks like there is no food waste collected north of
39 Chapel Hill and Carrboro. Gayle Wilson said that Weaver Street Market in Hillsborough is
40 collected. Commissioner Jacobs made reference to Attachment A and said that Hillsborough
41 was not included in the list. Gayle Wilson said that this is the original agreement. He did not
42 include an updated list of current establishments.
43 Commissioner Jacobs said that he would like a renewed effort made to include the
44 school systems before signing this contract. He would like to see the additional waste
45 generated and if this would have a positive impact on the cost. He would also like to see an
46 updated list.
47 Commissioner Jacobs asked that this item be tabled.
48 Gayle Wilson said that he would get the list of establishments currently served right
49 away and he will initiate discussion with the schools. He said that staff has had on and off
12
1 discussions with the schools and have implemented pilot programs, with no success. There
2 have been quality control issues.
3 Jamezetta Bedford from CHCCS said that the school board signed a new contract that
4 begins July 1 St. As of January, they have created a Sustainability Committee, so the timing of
5 this is good.
6 Frank Clifton suggested approving the contract and having staff bring back the
7 information because this is a sole-source vendor and the contract expires on June 30tn
8 A motion was made by Commissioner Hemminger, seconded by Commissioner Gordon
9 to approve the renewal of the service contract with Judy D. Brooks Contractor, to collect and
10 compost food waste and authorize the Chair to sign the renewal; with the stipulation that the
11 County Commissioners receive an updated list of establishments before June 30th, and that
12 conversations are initiated before June 30th with the school systems.
13 Commissioner Jacobs said that if there is an increase in the waste, then a lower fee
14 might be negotiated.
15 Frank Clifton said that he understands the objection, but this is not a service he would
16 like to disrupt.
17 Commissioner Yuhasz said that he agreed with Commissioner Jacobs in principle but it
18 will be difficult to negotiate something with the schools to ensure that they will be on board by
19 the time that this contract begins. He said that the contract is subject to renegotiation at the
20 end of the first year.
21 VOTE: 6-1 (Commissioner Jacobs)
22
23 Commissioner Jacobs said that he would still like to initiate a conversation with the
24 vendor and the schools to see if it would have a positive impact on the rates in future years of
25 the contract.
26 ,
27 6. Public Hearinas-NONE
28
29 7. Res�ular Apenda
30 a. Oranqe-Alamance Boundarv Line Adiustment Process Includina Petition
31 Criteria and 2010 Local Bill
32 The Board considered reviewing an Orange-Alamance boundary line adjustment
33 process including petition criteria and 2010 local bill.
34 Planning Director Craig Benedict said that last night there was a meeting of the
35 Alamance County Commissioners and he attended this meeting. At the meeting, the Board of
36 County Commissioners approved a local bill, similar to Orange County's local bill.
37
38 Orange—Alamance
39 Boundary Line
40
41 BACKGROUND
42 MULTI-DEPARTMENT INVOLVEMENT
43
44 •2008 —2009
45 ■Issue Resurfaced
46 ■NCGS Assistance
47 ■Community Meetings
48
49 •November 2009—Joint Meeting of BOCC's
50 •January 2010— Manager's Memorandum of Understanding
13
1 •April 2010—Joint Staff Meeting
2 •May 17, 2010—Alamance Approved
3 Joint County 2010 Local Bill
4
5 HYBRID SOLUTION
6 •Part Option 1
7 ■NCGS Straight Line
8 •Part Option 2
9 ■Boundary Line Adjustment in
10 Criteria Defined Areas
11
12 April 2010 Joint Staff Meeting Agenda
13 •Petition Criteria
14 ■Criteria lssues
15 •Flowchart and Timelines
16 •Future BOCC Presentations
17 •2010 and 2011 Local Bills
18 •Petition Criteria
19 ■House and lot within 150' of NCGS
20 ■Lot less than 1.8 acres
21 ■Lot greater than 1.8 acres, move line 50'
22 ■Unique Natural Features
23
24 2010 Local Bill
25 •Acknowledge NCGS work as a basis.
26 •Explain the process by which petition determinations are made by both BOCC December 15,
27 2010.
28 •Exchange of legal documentation in voting, taxes, etc. in an orderly 2011 schedule.
29 •Discovery Waiver
30 •Stay of Boundary Disputes
31 •Petitions Possible 106+/-
32 ■54+/-taxed in OC could stay in OC
33 ■52+/- taxed in AC could stay in AC
34 •Collington Farms Area Issue
35 •Air Photo Examples
36
37
38 •Next Steps
39 ■Finalize Criteria
40 ■Send Joint Letters to Public
41 ■Petition Hearings in Fall
42
43 County Attorney John Roberts went over the local bill issue. He said that Alamance
44 County approved this bill last night. He made reference to Attachment 4, page 10, which has
45 historical information. Section 4 is the beginning of the substantive information and deals with
46 taxation. He made reference to Section 4, which had some grammatical corrections. He
47 deleted the word "in" in the last sentence. Also, in Section 4(e) he changed "immediately after
14
1 July 1" to "effective July 1." Also, on page 13, subsection `h', the very last sentence should
2 have "3(c)(5)". In Sections 5 and 6, these are the portions of the bill that affect education. This
3 allows students who currently go to Orange County Schools to remain in Orange County
4 Schoots, as well as their siblings. If a student goes to Alamance County Schools, they and their
5 siblings will have the option to remain in Alamance County Schools. None of the students will
6 have to pay the county tuition.
7 Section 7 allows Alamance County and Orange County to establish an administrative
8 review process on the petitions that residents file. The petitions have to be completed by
9 December 15'n
10 Also, in Section 9, the first sentence, it should say, "Section 7" and not "Section 6 and
11 7."
12 John Roberts said that by no later than May 15, 2011 the General Assembly should
13 have a 2011 local bill that formally ratifies the line.
14
15 Commissioner Yuhasz made reference to Section 3(b), where it talks about public
16 records related to properties. He said that it would be wise to put a notice provision in there so
17 that when properties are shifted from one jurisdiction to another, that some kind of notice be
18 filed in the appropriate Register of Deeds office so that people can find where the properties
19 belong. He made reference to Section 4(g) and the areas affected by the resurvey, etc. and
20 said that if a piece of property moves from one county to another, it will vote for local offices in
21 one county at one precinct, and this statement suggests that they would have to go to another
22 precinct in a different county.
23 John Roberts said that this was vetted by both Election Directors in Orange County and
24 Alamance County. There are representatives who serve across county lines, and this does not
25 say that the voters have to go to another precinct. He will discuss this with the Alamance
26 County Attorney.
27 Craig Benedict said that there is a precinct line changing process that may be a result
28 of this and this would come afterwards.
29 Commissioner Yuhasz made reference to 6 and 7, "the small lot subdivision shall not
30 be divided on a lot by lot basis." He asked if the subdivision is horizontal, then one part of the
31 subdivision could be in one jurisdiction and the other in the other jurisdiction. He does not want
32 to preclude this.
33 Craig Benedict said that in the Mill Creek subdivision, the line meanders through the
34 whole subdivision.
35 Commissioner Yuhasz said that he is not happy with the idea of petitions. He said that
36 where it is fairly obvious that a subdivision should be in one jurisdiction or another, he does not
37 want to require residents to petition.
38 Frank Clifton said that part of the issue with the petition process is recognition that
39 there is a cost associated with the boundary change because of a survey.
40 Commissioner Pelissier asked about the average cost of a plat done for an appeal.
41 She made reference to the expectations that were set out in the past and she asked what type
42 of communications there will be going forward with the citizens.
43 Craig Benedict said that the version that was agreed upon at the November gtn
44 meeting, this hybrid solution should cover 96% of the deviation. There are about 3-4 lots on N.
45 Oakland that it does not cover. It also does not include situations where a development has
46 been approved and is unrecorded. This is something that is yet to be figured out. The
47 developers will be asked to move the plat lines where applicable. The letters that will go out will
48 explain any deviation from the Option 2, Version 3 in November.
49 Frank Clifton said that the cost of the platting could be reduced if groups do it together.
15
1 Commissioner Hemminger said that she has a lot of questions surrounding Section 6
2 about the schools piece. She asked about the transportation piece and Craig Benedict said
3 that both Superintendents are going to formulate the agreement. The agreement is not part of
4 this.
5 Commissioner Hemminger said that the way this is worded, it says that any child that is
6 currently in Orange County and the lot ends up in Alamance County, then they can stay in
7 Orange County Schools, regardless of whether they move to another house that is in Alamance
8 County. That is the way this is worded. Frank Clifton said that it would be the house that is
9 currently occupied. If the student moves into Alamance County to another house, then they
10 would no longer be able to go to Orange County Schools.
11 Commissioner Hemminger wants to make sure that the school systems are involved in
12 these conversations.
13 Frank Clifton said that once the agreement is reached, the Superintendents will get
14 together and deal with these issues.
15 Commissioner Gordon made reference to the financial impact for Orange County. She
16 asked what type of situation would lead to one of the counties having to pay a portion not paid
17 for by the property owners. Craig Benedict said that this would only be a small portion, like
18 $1,000.
19 Commissioner Gordon asked what representations would be made to the people with
20 these petitions. Frank Clifton said that there is a very public process for this.
21 Commissioner Jacobs made reference to the petition criteria and askec! why the City of
22 Mebane does not have petition criteria.
23 Frank Clifton said that Mebane is in support of the issue and it will be involved in this
24 process. This is an agreement between the two counties at this time. i
25
26 PUBLIC COMMENT:
27 tn Anne Robbins said that the County Commissioners will not have to worry about the N.
28 9 Street residents, because they want to stay in Alamance County and they are willing to pay
29 for the surveys. She said that there are three people on N. 9th Street that are paying Orange
30 County taxes. The rest of them have been paying taxes in Alamance County. She said that
31 she has given the Board three different petitions from this community. She read a letter about
32 this. She asked the County Commissioners to please leave this area in Alamance County and
33 not change it to Orange County because they cannot afford to pay Orange County taxes.
34 Lorena Talley said that she is the only one on 9�' Street that is not in Alamance County
35 and she has been living in Mebane for 45 years, but pays Orange County taxes. She asked
36 that her house be put in Alamance County.
37 A motion was made by Commissioner Hemminger, seconded by Commissioner Nelson
38 to approve the Administration's recommendations, with minor changes as suggested by John
39 Roberts, to approve the petition criteria; approve the process timelines; and approve the 2010
40 Local Bill regarding the Orange-Alamance boundary line.
41 Commissioner Yuhasz asked that John Roberts address his earlier concerns, but he
42 will still vote in favor of this.
43 Commissioner Jacobs thanked the staff from both counties for all of the work they did
44 on this.
45 VOTE: UNANIMOUS
46
47 8. Reports
48 a. Heritaqe Center Work Group Report
49 The Board received the final report from the 2009 Heritage Center Work Group and
50 considered ne� steps.
16
1 Barbara Baker, the Heritage Center Work Group Facilitator, recognized the members of
2 this work group and the consultant, Barbara Taylor. She said that they are encouraging the
3 Board to consider exploring the development of an additional heritage resource and authorize
4 the Orange County Public Library to work with the North Carolina Heritage Center project to
5 begin that process. The suggestion is that the Rebecca Wall money could be used as possible
6 seed money or matching money for grants. She asked that the County Commissioners support
7 the Historical Foundation of Hillsborough to take over the Heritage Center. She also asked the I
8 County Commissioners to authorize County management to partner with the Town of I
9 Hillsborough to find some expanded space for the Orange County History Museum, because
10 this agency could take on the Heritage Center.
11 Frank Clifton said that this committee recognizes that it has completed its work and the
12 committee can be sunset.
13 The County Commissioners thanked the work group for all of this work.
14 A motion was made by Commissioner Nelson, seconded by Commissioner Hemminger
15 to approve the recommendations:
16 1. Explore the development of a digital heritage resource, as indicated in the
17 abstract, as an initial step toward providing access to Countywide historical
18 documents, artifacts, and archives;
19 2. Authorize the funds from the Rebecca B. Wall bequest to be allocated as
20 $5,000 for seed money for initial projects and $20,000 be used as matches
21 for grants over the next 4 years;
22 3. Authorize County management to continue its efforts with the Town of
23 Hillsborough and the Foundation to achieve expanded programming space
24 and allow for the development of heritage center services for both residents
25 and visitors to the County; and
26 4. Approve the sunsetting of the Heritage Center Work Group, having
27 completed its original charge from the Board of Commissioners on June 30,
28 2010.
29 VOTE: UNANIMOUS
30
31 b. Recommendations from the Economic Development Commission on
32 Economic Develoament
33 The Board received recommendations from the Economic Development Commission on
34 economic development as outlined in the Commission's six-year implementation strategy and
35 FY 2010-11 budget request.
36 Kathleen Ferguson, Chair of the Economic Development Commission, made a
37 PowerPoint presentation.
38
39 Investinq in Our Future
40 Strategic Recommendations: Places, Tools, and Knowledge
41
42 Orange County Economic Development Commission
43 Estimated Financial Impact: Fiscal Years 2010/2011 —2015/2016
44 Budget Request: Fiscal Year 2010/2011
45
46 During the great recession of 2008 and 2009, our region has received $3.1 Billion in private
47 investment - $1.9 billion received last year alone. UNC received more than $1.4 billion R&D
48 funding - $716 million last year alone. Home to almost 7% of the region's residents, Orange
49 County's share of this economic investment was negligible—0$ and negative net jobs in 2009.
50 Had Orange County's share equalied its population percentage, we would have received over
17
1 $134 million. This lost potential, when contrasted with the County's widening
2 residential/commercial tax gap has not surprisingly raised the issue of economic development
3 to the forefront. Orange County is home to numerous CEOs, COOs, CFOs, and other
4 executives. It is time to become home to their businesses also. The question the Economic
5 Development Commission has spent the past year addressing is: what steps should Orange
6 County take to reverse the county's revenue and jobs slide and engage with investors and
7 decision-makers who are clearly willing and able to invest in the region. Having spent a year of
8 fact-finding and exploring needs expressed by the decision-makers themselves, the EDC has
9 identified a critical path towards increasing Orange County's options for attracting and retaining
10 healthy, growing businesses.
11
12 Estimated Financial Impact: Fiscal Years 2010/2011 —2015/2016
13 $2.3 million plus developing the UDO $ plus NC Department of Commerce Certified Site status
14 for Buckhorn EDD + 100% water, wastewater, and other infrastructure to Eno EDD
15
16 Budget Request: Fiscal Year 2010/2011
17 $525,000 in new spending - $500,000 for cap/recap of tools, $25,000 to continue investment in
18 research.
19
20 Context
21 - Investing in Revenue-Producing Assets Allows County to invest in programs valued by
22 its citizens
23 o Economic Development is the only tool available to local governments that are
24 capable of increasing revenues, jobs, and wealth
25 - Invest in County Revenue-Producing Assets First
26 o Revenue-Producing capital
27 o Ongoing revenue stream
28 - Focus on Low-Hanging Fruit First
29 o Local Entrepreneurs and Established Businesses
30 o Businesses of Current and Incoming Residents
31 o Established Industry Clusters
32 - Eliminate Silos and Barriers
33 o Open up to regional best practices
34 o Actives responsiveness to investor needs
35
36 Our recommendations follow some tried and true maxims which are good for households,
37 businesses, and government, alike: Failing to plan is planning to fail; you can't help others
38 unless your own well-being is taken care of first; it takes resources to grow resources; educate
39 yourself by interacting with experts— reinventing the wheel is never effective, and base
40 decisions on current data, best practices. The proposed investment in the places, tools, and
41 knowledge proposed tonight and found in our recommendations and white paper is how the
42 EDC has expressed these basic principles in relation to economic development interests.
43
44 Economic Development
45 Critical Path Elements
46 Places —Tools— Knowledge
47
48 Like the mobius triangle, the three elements-Places, Tools, and Knowledge, inextreicably
49 comprise the critical path necessary for economic development to take root and prosper. The
50 more prolonged and shallower the implementation, the longer it will be before Orange County
18
1 can increase revenues from the commercial tax base and the longer before the county can set
2 itself on a healthy fiscal course.
3
4 Before ANY economic development can occur, there must be a place for it to occur and the
5 space must meet the needs of investor funding the business' growth or expansion. With there
6 being a greater supply of sites and facilities than businesses demand, shovel-ready sites are
7 seen as a given, with certified sites becoming the norm, more and more. Therefore, the sooner
8 Orange County converts the unimproved land in the EDDs to certified sites, the sooner it will be
9 transformed into a revenue-producing asset.
10
11 The needs of individual businesses starting up, expanding, and coming into the area vary
12 widely. To engage investors funding these start-ups, expansions, and relocations, local
13 governments must have the tools and flexibility to retain and recruit. Again, there are more
14 locations than sites and from a business point of view, economic development is a buyer's
15 market, especially in our region.
16
17 Third, our region is home to some of the most innovative, progressive businesses and leaders
18 in the world. The State of North Carolina, the Research Triangle Regional Partnership, and
19 local universities offer a wealth of data, analysis, best practice, lessons learned, expert, and
20 creative knowledge—and the resources to take them from idea to implementation.
21 Accordingly, we recommend that the county systematically and regularly engage with this
22 readily available knowledge and expertise.
23 '
24 The next few slides address specific actions Orange County should take to accelerate
25 this critical path towards prosperity and economic health.
26
27 Places:
28 Shovel-and Business-Ready
29 •Available, Pre-Designated Land
30 —3 Economic Development Districts Totaling 2,450 Acres along the I-85 Corridor
31
32 •Core Recommendation
33 —Commit the county to bringing water and wastewater infrastructure to the Buckhorn
34 and Eno EDDs
35 —Within a timeframe that establishes confidence with developers, investors and
36 business owners
37
38 PLACES — Proximity to air and interstate transportation, proximity to a skilled work force,
39 proximity to university R&D centers, proximity to residential and cultural amenities are highly
40 prized assets that Orange County shares with our contiguous and regional counties, making
41 Orange County one of many possible locations for a business to start, grow, or locate to.
42 Moreover, Orange County is surrounded by an abundance of shovel-ready and certified sites
43 located outside of our borders, for Orange County's EDDs to be seen on part with available
44 sites in Alamance, Chatham, Durham, and Wake counties, Orange County must invest in
45 bringing water and wastewater infrastructure to the Buckhorn and Eno Economic Development
46 Districts (EDDs) within a timeframe that establishes confidence with developers investors and
47 business owners. The county cannot continue to expect developers to invest in basic
48 infrastructure when there are so many shovel-ready sites availabte with attractive proximities
49 and 90 days or fewer permitting processes.
50
19
1 Tools:
2 Time, Expense Reduction, Predictability
3
4 •Time and Predictability
5
6 •Capitalize a $250,000 business recruitment and retention fund
7
8 •Re-capitalize the small business loan fund with 250 000
9
10 •Identify dedicated fundina source for recurrina annual investments in the local economic
11 development tool kit.
12
13 •Adopt a Unified Development Ordinance
14 •Within a timeframe that establishes confidence with developers, investors, and
15 business owners
16 •results in less time from application to permit approval in a time-frame that is
17 comparable with neighboring jurisdictions
18
19 Unfortunately, it takes more effort and resources to overcome a negative reputation than to
20 build up an unknown or neutral reputation. After years of charting our own course counter to
21 industry standards, Orange County's unwanted, but not undeserved, business-unfriendly
22 reputation is formidable BUT it can be overcome with decisive, speedy, highly-visible, direct
23 investment into the three things that any business requires, regardless of industry, size, or
24 scale requirements. These three things are time, reduced expenses, and predictability. The
25 tools that can deliver these and which are under the control of local governments are clear:
26 consistent regulations facilitating streamlined permitting and fund allocation, small business
27 loan funds, recruitment and retention funds for established businesses, and a long-term reliable
28 funding source dedicated to endowing these finro funds on an annuat basis.
29
30 Knowledge:
31 Current Data, Expert Analysis, Best Practices
32 •Increase collaboration and engagement with the Research Trianple Reqional Partnership
33
34 •Invest in value-adding economic development-related research performed by UNC, NC
35 State, Duke, NC Biotechnology Center
36
37 •Enter into a one-year research contract with economic devefopment specialists at UNC-Chapel
38 Hill in 2010, with annual follow-on data acquisition, analvsis and stratepic planninp
39 research contracts each year through FY 2016
40
41 One of Orange County's least-recognized assets is being in the heart of a region that is in the
42 planet's top 3, 5, and 10 in 11 major industry clusters and even more sub-clusters. Another
43 under-utilized asset is our proximity to RTRP, RTP, and UNC; organizations comprised of some
44 of the world's most successful, innovative, and cutting edge leaders whose expertise is based
45 on data, analysis, and experience. Whereas the state of North Carolina and many of its
46 counties have taken advantage of RTRP's, RTP's, and UNC's world-class economic
47 development expertise, Orange County has not. As a result, policy makers have not had
48 consistent and thorough access to key data and metrics nor have we utilized benchmarks to
49 monitor results or studied best practices to inform our policies. None of this data collection or
20
1 analyses can occur without funding. Moreover, without ongoing engagement by Orange
2 County policy-makers with RTRP, RTP, and UNC experts, there is no basis for two-way
3 information sharing.
4
5 Expected Results
6 •Increase# UNC Spin-Offs locating in OC
7 •Increase#of 10-100 Employee Businesses (Re)Locating in OC
8 •Increase Private Sector Job Creation
9 •Increase Non-Residential Tax Collections (Gross and Percent of Total)
10 •Data-Driven Performance
11
12 Local universities have spun off numerous companies and industries. Examples include SAS
13 and Quintiles, products of NC State and UNC, respectively, both of which were started by
14 university professors spawned global billion dollar industries. Each year, UNC's Carolina
15 Entrepreneurial Initiative serves as the springboard for a variety of viable businesses. The most
16 recent crop includes 25 showcased in the CEI's 6th annual business plan competition held in
17 March. Representing customers and markets across the globe, the focus of these
18 entrepreneurs spans beyond Orange County's borders, yet all also represent opportunities for
19 Orange County to court and support as long-term local businesses.
20
21 Even as start-ups and entrepreneurs abound, even more established business opportunities
22 are within Orange County's grasp—if their needs are met. Whereas start-ups offer long-term
23 potential, established business offer immediate opportunities on a larger scale, many of which
24 employ 10+, 20+, even 100+ people and offer benefits beyond the reach of young or lifestyle
25 businesses. Speaking with any realtor will invotve numerous examples of CEOs, CFOs, COOs, �'
26 CIOs, and other executives who have relocated here and who continue to choose Orange
27 County for their personal residences while also choosing other counties as the location for their
28 business. Investing in applicant-friendly, streamlined ermittin , infrastructure and tools
. P 9 ,
29 tailored to entrepreneurs and established businesses, and locating in Orange County will begin
30 to qualify as a sensible business decision.
31
32 The EDC contends that a thorough grounding in economic analysis and other data-driven
33 considerations will be required to gain the results desired in terms of business start-ups,
34 retention, expansion, and recruitments. As with any endeavor, the quality of a decision is only
35 as good as the data and analysis informing and supporting it. Moreover, Orange County will
36 achieve only what it measures, which is why ongoing metrics and benchmarking is critical. We
37 therefore see the research prong of these recommendations as being critical to the overall
38 success of this endeavor to launch a multi-year investment in economic development on behalf
39 of Orange County.
40
41 IF NEEDED:
42 Examples of industry-standard metrics include:
43 - Number of qualified inquiries
44 - Increased hit rate (number of wins gained from total number of inquiries)
45 - Increased strike rate (value of wins from estimated total value represented by inquiries)
46 - #of local university start-ups established in Orange County and verified to have
47 remained in Orange County over time
48 - #of existing local businesses who expand and remain in Orange County over time
49 - # of relocating businesses choosing Orange County whose
50 managers/executives/employees have chosen Orange County as home
21
1 - Annual measure of residential/non-residential tax ration
2 - Total value of private capital invested in Orange County
3 - Total number of private sectorjobs created
4 - Number of private sector jobs by Orange County socio-economic strata
5
6
7 Investment Commitment
8 FY 2010—2011 Economic Development Department
9 The EDC shares the goal of increasing the County's non-residential tax base. As such, we
10 unshakably believe that the County must commit to investing in economic development not as a
11 single year but as an ongoing permanent investment. To assist the BOCC in implementing
12 specific, measurable, attainable, and realistic actions in a timely manner, the EDC is
13 requesting line item budget allocations in the upcoming year's budget. In addition, we have
14 provided a six-year estimate to help the BOCC and County Manager anticipate and ptan for the
15 general investment levels that will be required moving forward.
16
17 FY 10-11 Budget:
18 Economic Development Department
19 •$500,000 request for economic development tools over and above last year's funding of$0 in
20 this category.
21 •$25,000 request for economic development research over and above last year's funding of 0$
22 in this category.
23 '
24 Over the past 12 months, Orange County's $75,000 small business fund was sufficient to '�
25 support two local businesses: Santosa, a local commercial cleaning service company and PhD,
26 I
a ocal recreational flying disc company that the Economic Development Department was able
27 to leverage into international recognition by MSNBC. However, the funds are fully allocated,
28 with numerous local businesses eager to participate whenever additional funding becomes
29 available. Based on this history as well as the experience of small business funds available in
30 Durham and Chatham counties, we recommend Orange County's small business fund be
31 recapitalized. However, Orange County also needs a retention and recruitment fund designed
32 to meet the needs of established local businesses who are expanding or incoming businesses
33 who want to locate here and who likely will end up employing county residents or whose
34 managers/executives will call Orange County home. Equally important, these funds must be
35 administered with flexibility without lengthy, complex, or onerous procedures. Lastly, quality
36 research capable of supporting cluster, R&D, gap, or revenue stream analyses requires both
37 faculty and student involvement. Unlike this past year's student papers, which was pro bono
38 and involved limited scope and time investment, cluster/R&D/gap/and funding stream analysis
39 substantive research effort is provided only on a fee basis ranging from $25,000 to $250,000 or
40 more.
41
42 The total financial impact of this investment is <0.04% of the total county budget for FY 2010-
43 2011.
44
45 Although Streamlined Permitting and the UDO are under the auspices of the Planning
46 Department, the EDC views it as a critical path requirement for economic development, thus we
47 recommend that the county invest staffing and resources necessary to achieve these in a
48 timeframe that inspires confidence and trust among investors, site selection decision-makers,
49 and the development community. Secondly, while extending full water/wastewater
50 infrastructure into Buckhorn and Eno EDDs and satisfying all criteria required for NC
22
1 Department of Commerce Site Certification are critical path elements, much of this investment
2 also will be under the auspices of the Planning Department. Although the EDC's extended
3 budget estimates the general magnitude of the investment required, to many unknowns exist to
4 set expectations for a firm figure.
5
6 FY 10-11 thru FY15-16
7 Estimated Economic Development Department
8 Places
9 •Estimate for Buckhorn EDD ($4,400,0000)
10 •Eno EDD Engineering and Build-Out (TBD)
11 •NC Department of Commerce Site Certification (TBD)
12
13 Tools
14 - Business retention, recruitment, and loan funds ($2,000,000)
15 - Completion/implementation of County Unified Development Ordinance (TBD)
16 �
17 Knowledge '
18 - RTRP Dues, Intra-County Collaboration Events, Focused Research, and Strategic
19 Planning 300 000
20
21 Total = $6.7 million + Eno EDD + UDO
22
23 We anticipate that the engineering, build-out, and NC DOC site certification will require 36-48
24 months at best, assuming no delays for Buckhorn EDD alone. Given the state of negotiations
25 with Durham, we anticipate that it will require up to 72 months for engineering, build-out, and
26 NC DOC site certification for Eno EDD. Thus the EDC addressed a six-year timeframe for our
27 strategic recommendations and within which to estimate the "order of magnitude" of the
28 required investment in a comprehensive set of Economic Development activities.
29
30 With Orange County being one of the top 10 start-up centers in the country, we anticipate that
31 there will be strong demand by talented entrepreneurs for small business loans the county can
32 provide, especially since the credit squeeze is expected to impact entrepreneurs for the coming
33 years. Similarly, with RTP continuing to be a magnet for incoming executives and businesses,
34 and with the competition for those businesses expected to increase, we anticipate that Orange
35 County will need more— not fewer—options for reducing time and expenses required by
36 established businesses to expand or locate in Orange County.
37
38 Our estimates for research and analysis funding is based on current cost estimates provided by
39 UNC research faculty, combined with actual expenditures invested by Chatham and other
40 neighboring counties for the cluster/R&D/gap/funding stream analyses and strategic planning.
41
42 In summary, based on current information available, we estimate that Orange County will need
43 to invest roughly $11 million over six years, with about 80% supporting water/wastewater build-
44 out, approximately 20% supporting a basic economic development tool kit, and less than 5% for
45 data acquisition and analysis. Note that with respect to infrastructure financing, there are
46 both matching funds and alternative public-private financing mechanisms, such as Tax
47 Increment Financing, that can substantially reduce Orange County's share of the total
48 investment in water and wastewater infrastructure. Although the estimates stated here are
49 not exact, they point to the order of magnitude of the funding required to transform the virtually
23
1 empty EDD land into revenue-producing assets. Failing to do so will cause Orange County to
2 continue to be bypassed by private investors for surrounding counties for years if not decades.
3
4 Conclusion
5 Business Tip From the Amish
6 "[Businesses] will tell you what they want and how to sell it, if you listen. You "listen" in different
7 ways: by scrutinizing sales statistics, by reading news and industry publications, and by old-
8 fashioned asking. You may have to put aside your ego."
9
10
11 Borrowed from Erik Wesner, Success Made Simple, An lnside Look at Why Amish Businesses
12 Thrive
13
14 For the better part of the year, the EDC has reached out to business, asked what they need
15 and want, and has listened. And indeed, each time business leaders speak, they tell us clearly
16 what they want and how Orange County can offer the solutions to these needs. We have
17 sought out and evaluated the statistics: the total market (3.1 B+) Orange County's share (0), the
18 produce that business is in the market for: shovel- and business-ready space as well as tools
19 that reduce time, expense, and unpredictability. We have strived to do so without ego, seeking
20 data and best practices used by those recognized worldwide as leaders and to those who have
21 achieved results. The produce of this effort is the critical path summarized in this presentation.
22
23 As a parting consideration, we realize it will be unprecedented for the Commissioners to �i
24 endorse—and fund —these recommendations and that it will be tempting to stick to business as
25 usual with respect to the county's economic development policies. At the same time, it is the
26 EDC's responsibility to advise the Board of the tikely outcomes of its choices from the
27 perspective of those who have the means, ability, and opportunity to invest their resources in
28 the county.
29
30 We understand that sticking with what's known is sometimes more comfortable than making
31 changes—even when we know that the known will not help us achieve our objectives. Yet, it is
32 in these times that change is most needed. Failing to endorse and fund these
33 recommendations will strongly signal businesses and citizens alike that Orange County remains
34 welcoming to residents who are business owners and executives while maintaining barriers to
35 private investment in commercial enterprise.
36
37 Without BOCC funding of these recommendations, Orange County's economic development
38 policies will continue to perpetuate the status quo, and Orange County witl continue to rank
39 lowest or near lowest in private commercial investment and job creation, rank highest or near
40 highest in residential taxes and will continue to rank high in the gap between the standards of
41 living between the wealthiest and poorest of its resident families within the entire 13-county
42 RTRP region for the foreseeable future. We do not believe these outcomes are in keeping with
43 Orange County values or long-term fiscal health. This year is a year of hard choices. There
44 are no easy solutions. And, there is no way to avoid pain. We believe by endorsing and
45 funding these recommendations the County will set itself up to being substantially increasing its
46 revenue and therefore its program funding and service delivery capacity for years to come.
47
48 Thank you.
49
50
24
1
2 Remarks delivered to Board of County Commissioners from
3 Anita Badrock, former Economic Development Commission Board Chair
4 32 year resident of Orange County, NC
5 May 18, 2010 at BOCC meeting and presentation on Economic Development
6
7 Chairman Foushee and Members of the Board of County Commissioners,
8
9 Thank you so much for allowing us as members of the Economic Development Commission to
10 come before you this evening and put a lot of data and information in front of you explaining
11 what we believe it's going to take to have a successful long term economic development
12 program. I know you have lots of information in your packet which you will review and carefully
13 consider. This report was researched and prepared entirely by the volunteers of the Economic
14 Development Commission, without the use of any staff resources or time. This is important for
15 you t o know for two reasons—first, a group of busy volunteer citizens thought this was
16 important enough to spend hundreds of hours working on it, and the second is that I hope you
17 will find it important enough to direct your staff to continue and expand on this work.
18
19 I wanted to speak to you because over my 30 years of residency here I've worn a lot of hats
20 that have given me more than a cursory understanding of our community. Here are some of
21 the vantage points from which I have gleaned my education about our county: ---as a mother,
22 an active volunteer in the school system, as a public health nutritionist working in the local WIC
23 program, a multi-unit small business owner, a volunteer and board member for more than a
24 dozen social service agencies, a leader in the local Chamber of Commerce, a leader of the
25 EDC, a UNC volunteer, and as a recruiter who for 10 years worked with local businesses and
26 nonprofits to find employees and also worked with local residents to find jobs closer to home.
27 Currently I work for Community Home Trust, an affordable housing home ownership program
28 that is selling more homes than probably just about anyone in the county right now, because,
29 despite the recession, homes on the local private market are still too expensive for our clients to
30 buy with the incomes they earn in our county.
31
32 So, I feel pretty confident in making these statements:
33
34 • Diversifying and expanding our economic development is the one big thing that Orange
35 County can do to help the all the people that I've met in the roles I've had in this community.
36 '
37 • Investing in our own economic health is the key to improving our ability to fund our social, '�
38 environmental, and educational initiatives. �
39
40 • Investing in our own economic security is the only way to provide a funding legacy that
41 doesn't balance the budget on the backs of our homeowners, some of whom struggle to pay
42 a tax bill that has risen at a much higher rate than their incomes for a long time.
43
44 You've heard a lot of big numbers, long timelines, and complex statistics. Those are important
45 in making good, data driven decisions about how to invest limited resources for best effect. But
46 the most compelling information data about the need for paying attention to and investing in
47 economic development has already been presented tonight, and that was your county budget.
48 That message was loud and clear---iYs time to pay attention to and do something to secure our
49 county's long term economic health.
50
25
1 It's clear that now is the time for our county to re-invest some of its resources in itself---to
2 improve its own long term economic well being. We are asking you, as the stewards of our
3 county,
4
5 • To fund improvements in the infrastructure of our existing raw assets–the Economic
6 Development Districts --to improve their desirability in the marketplace;
7
8 • To provide resources to retain existing businesses and recruit complementary ones, and
9
10 • To fund research that will allow us to make strategic, targeted decisions.
11
12 These are things that businesses do every day to ensure their long term economic vitality and
13 survival, and implementing these same strategies will achieve the same goals for our county.
14
15 I'd like to close by telling you a personal story that I think illustrates in a very simple way what I
16 am talking about. I recently sold a home I owned. I first listed it "as is" for what had been the
17 appraised value only a year earlier. Much to my surprise and amazement, nobody bought it.
18 My realtor said, "Honey the market is telling you something. This house isn't as valuable to
19 possible buyers as you think it is. Now do you want to sell it or not? "
20
21 So I lowered the price---still "as is." Still no takers. The realtor said: well, obviously "as is" is
22 not "as buyers want" in this market, even at a cheaper price. So, do you want my advice on
23 how to sell this house?
24
25 Well, obviously I did, so I had to take the next step, which meant putting some cash on the
26 table. That was tough to swallow. I didn't have a lot of cash, and it was very hard for me to put
27 some of it into improving a house that had no buyers and had already cost me a lot in carrying
28 costs. However, I pulled together about 20,000 to fix the house up; doing those things that
29 potential buyers who had seen the house had said should be done if they were going to buy it.
30 The 20K wound up helping the house sell for 40K more than the lowered "as is" price.
31
32 Now somebody could have bought the house "as is," spent 20K and saved themselves 20K.
33 ThaYs what I would have done if I had been buying, it is certainly what I would consider most
34 logical, but I wasn't buying the house; I was trying to sell it. So I had to listen to the buyers,
35 not to myself, and do what they suggested it would take to get them to buy the house.
36
37 What the buyers for this product wanted was something that was already fixed up, and they
38 were willing to spend more money to save themselves time and hassle and walk into a
39 predictable, turnkey situation. And it worked for me too---I made 20K more than I expected
40 because I put some of my own money in up front. But I first had to take the risk, and I didn't do
41 that until I had been unsuccessful doing it my way.
42
43 I think it's clear that Orange County has tried over the past years to conduct economic
44 development "our way." We see the results, which haven't been very good by all the statistical
45 measures comparing us to our neighbors—an increasing reliance on residential property taxes
46 and missed opportunities to fully participate in the robust growth of the Research Triangle Park.
47
48 But that was yesterday. This is today. Today we have the opportunity to learn from the past, �
49 but move forward into the future. Today we have 2450 acres of contiguous undeveloped land
50 in the Economic Development Districts. We have a diverse labor force that spans the skills
26
1 spectrum. Our proximity to major transportation and distribution corridors and resources has
2 only become more valuable as similar properties around us are developed and removed from
3 available inventory. It's the right time to do something different---if we're serious about "selling
4 this house." The next step is going to involve spending some money.
5
6 This plan is a clear and basic approach that leverages our current assets and makes smart '
7 investments to strengthen our long term economic health. I encourage the county to insert the
8 EDC's three new proposed line items into the budget that funds this and future year's economic
9 development efforts.
10
11 Sincerely,
12 Anita Badrock
13 Anita Badrock
14 Former Chair, Economic Development Commission
15 32 year Orange County resident
16
17
18
19 Commissioner Yuhasz thanked the EDC for all of the work they put into this report. He
20 said that he was glad the Manager has recommended funding the small business loan again.
21 He would like to find funds to apply to recruitment and retention.
22 Commissioner Pelissier thanked the EDC and the UNC students as well for this report.
23 She fully endorsed having a work session with the EDC in the near future. She said that the
24 retail sales issue is something she would like to have more discussion about and this is one
25 area that they need to flush out more.
26 Kathleen Ferguson said that the EDC is also very conscious that Alamance County has
27 put a lot of resources into the retail market and this does impact the overall size of the market
28 for Orange County.
29
30 PUBLIC COMMENT:
31 Margaret Cannell, Executive Director of Hillsborough/Orange County Chamber of
32 Commerce, said that they are very interested in economic growth, which has been stagnant for
33 the past several years. She said that the Chamber of Commerce is in support of the EDC
34 recommendations.
35 Bonnie Hauser said that she would love to see the County invest some money in
36 economic development. She asked if all the EDDs were the same and how Orange County
37 would differentiate their assets from other community's assets. It is unclear to her how the
38 UDO clarifies the impediments to permitting in Orange County. She asked about the role of the
39 County versus the developer and how developers could be attracted before making huge
40 investments. She asked if there were alternatives for different kinds of investment models.
41
42 Commissioner Gordon thanked the EDC for all of their work and said that she would like
43 more time to study the information.
44 Chair Foushee said that the Manager's recommendation is to have a work session on
45 this item. The Board agreed.
46
47 b. Automatic External Defibrillator(AED) Report
48 The Board received a report regarding the current status of Automatic External
49 Defibrillators installed in County facilities and considered recommending the devetopment of a
50 policy and plan to upgrade current and future installations.
27
1 Emergency Services Director Frank Montes de Oca summarized the information in the
2 abstract. To maximize the impact of the limited funding for the program, initial efforts wilf be
3 focused on publicly accessed facilities such as the Whitted Building, Hillsborough Commons, '
4 libraries, and other County buildings where significant public use occurs. Fully funding the
5 recommended group of AEDs to adequately cover facilities would cost approximately $60,000.
6 It could be phased in over three years, if needed.
7 A motion was made by Commissioner Hemminger, seconded by Commissioner Jacobs
8 to approve items 1 and 3 in the Manager's Recommendation:
9 - Upgrade all current AEDs more than 6 years old or not functioning properly to current
10 specifications (cost $12,000);
11 - Review an Orange County AED ordinance to be presented at the August 17, 2010
12 regular BOCC meeting.
13 VOTE: UNANIMOUS
14
15 Commissioner Hemminger said that she went to a presentation at a school board
16 meeting of a national company that gives special prices for school systems to buy defibrillators.
17 The goal is to have one at each school.
18
19 Item 2
20 A motion was made by Commissioner Hemminger, seconded by Commissioner
21 Yuhasz to phase in item 2 over a three-year period, which is to purchase AEDs to cover all
22 remaining/new facilities within three years.
23 VOTE: UNANIMOUS
24
25 9. Countv Manaaer's Report
26 Frank Clifton said that the 2010 Orange County Complete Count Committee has
27 completed its work and has now been sunset. The national participation rate was 72%. The
28 statewide average was 74%, which is up from 66% in 2000. For Orange County, the
29 participation rate was 78%, which is up from 70% in 2000. Only seven counties scored higher
30 in participation in Orange County, with 80% being the highest rate.
31
32 10. Countv Attornev's Report
33 John Roberts said that the deadline for filing the information for the Orange/Alamance
34 County line is tomorrow. He will be contacting everyone involved tomorrow about the changes.
35
36 11. Appointments-NONE
37
38 12. Board Comments
39 Commissioner Nelson— none
40 Commissioner Gordon distributed a map of the NC 54/I-40 Corridor Study Area as part
41 of her report on what happened at the most recent TAC meeting. She made reference to the
42 map and highlighted the light rail construction. She said that the NC 54 Corridor Study is so
43 important because $347 million of the expenditure in the county transit plan is in this corridor.
44 She will keep the County Commissioners up to date on this study.
45 Commissioner Hemminger— none
46 Commissioner Pelissier said that there was a school collaboration meeting today and
47 the OCS suggested having a joint letter from both school systems and the Board of County
48 Commissioners to the General Assembly asking them to increase funding for K-12. She asked
49 the Board to approve sending this letter.
28
1 Chair Foushee said that the County Commissioners could sign onto the letter of the
2 other school boards. All agreed.
3 Commissioner Jacobs said that there was a tour of the Bingham Animal research
4 center. There was a good opportunity to ask questions and walk the property. He said that it
5 seemed evident that the people put in charge of the facility are not the ones that have made
6 some of the unfortunate decisions that had adversely affected the environment or had resulted
7 in bad planning. He was encouraged that there was a different consciousness and intent to do
8 things right, follow state and local rules, work with the neighbors, and try and minimize the
9 impacts on neighbors.
10 Commissioner Jacobs said that he found out this week at a meeting of the Sportsplex
11 Advisory Committee that last year some veterans groups requested that the Sportsplex
12 consider a discount for veterans. The Sportsplex has now adopted a 30% discount for any
13 veteran and this has not been publicized. He asked that this be publicized.
14 Commissioner Yuhasz thanked the Manager for bringing a budget with no tax increase.
15 Chair Foushee said that she heard at the Social Services Board meeting yesterday that
16 the subsidized employment program has placed 24 individuals, 15 of which are Work First
17 individuals and 9 of those are people that are 200% of the poverty level.
18
19 13. Information Items
20
21 • Orange WeIINet Project Update
22 • Environmental Responsibility Goal
23 • May 6, 2010 BOCC Meeting Follow-up Actions List
24
25 14. Closed Session
26 A motion was made by Commissioner Pelissier, seconded by Commissioner Jacobs to
27 go into closed session at 10:28 p.m. for the purpose of:
28
29 "Pursuant to G.S. § 143-318.11(a)(3) "to consult with an attomey retained by the Board in order
30 to preserve the attorney-client privilege between the attorney and the Board."
31
32 VOTE: UNANIMOUS
33
34 RECONVENE INTO OPEN SESSION
35
36 A motion was made by Commissioner Gordon, seconded by Commissioner Yuhasz to
37 reconvene into open session at 11:00 p.m.
38 VOTE: UNANIMOUS
39
40 15. Adiournment
41 A motion was made by Commissioner Gordon, seconded by Commissioner Jacobs to
42 adjourn the meeting at 11:00 p.m.
43 VOTE: UNANIMOUS
44
45 Valerie Foushee, Chair
46
47 Donna S. Baker, CMC
48 Clerk to the Board
1
1 DRAFT
2
3 MINUTES
4 ORANGE COUNTY BOARD OF COMMISSIONERS
5 BUDGET WORK SESSION
6 May 27, 2010
� 7:00 p.m.
8
9
10 The Orange County Board of Commissioners met for a budget work session on Thursday,
11 May 27, 2010 at 7:00 p.m. at the Southern Human Services Center in Chapel Hill, N.C.
12
13 COUNTY COMMISSIONERS PRESENT: Chair Valerie P. Foushee, and Commissioners Alice
14 Gordon, Pam Hemminger, Barry Jacobs, Mike Nelson, Bernadette Pelissier, and Steve Yuhasz
15 COUNTY COMMISSIONERS ABSENT:
16 COUNTY ATTORNEYS PRESENT:
17 COUNTY STAFF PRESENT: County Manager Frank Clifton and Clerk to the Board Donna S.
18 Baker(All other staff members will be identified appropriately below).
19
20
21 1. Durham Technical Community College
22 Orange County Schools
23 Chapel Hill Carrboro City Schools
24
25 • Durham Tech
26
27 Dr. Bill Ingram, President of Durham Technical Community College, thanked the County
28 Commissioners and said that they appreciate the support in the past. He said that the budget
29 for DTCC this year in Orange County reflects no increase. He discussed some of the programs
30 that are offered at the Orange County Durham Tech campus. The campus just celebrated its
31 second anniversary and it continues to have steady growth. This campus has served about
32 10,000 students in the past two years. In the coming year, there will be some significant new
33 activity at this campus. He said that the newest credit program at Durham Tech will be housed
34 at the Orange County Campus. This program will be Sustainable Technologies. This program
35 will prepare students to install, repair, and monitor solar energy panels and also provide training
36 in conducting energy audits. Last week, Durham Tech received a $250,000 grant from Duke
37 Energy to provide equipment for this program.
38 There will also be programs offered at the Orange County campus that prepare students
39 for work in Health Technologies. Beginning in the fall, there will be a certificate program in
40 Workplace Spanish Interpretation for Healthcare Professionals. There will also be a sign
41 language program for individuals working in health care. There have been discussions with
42 UNC Hospital about short-term and long-term needs as it develops a new facility in this
43 community. The University Transfer program has also grown a lot.
44 Dr. Ingram introduced Carlo Robustelli, who is the new Director for the Orange County
45 Campus.
46 He thanked the County Commissioners for their support.
47
48
49
50
2
1 • Orange County Schools
2
3 Superintendent Patrick Rhodes said that the school board would like the County
4 Commissioners to support the County Manager's Recommended budget, which is to maintain
5 the same per-pupil allocation as last year.
6 Commissioner Jacobs asked about the letter regarding lottery proceeds. Patrick
7 Rhodes said that he signed a letter requesting that lottery proceeds not be held for a year, but
8 be distributed.
9 Frank Clifton said that the County Commissioners will be recommending after the
10 budget is adopted to allow the schools to spend the lottery proceeds as they become available.
11
12
13 • Chapel Hill Carrboro City Schools
14 Michael Kelley, Chair of the CHCCS Board, summarized the handout, shown below:
15
16 TO: Orange County Board of Commissioners
17 Orange County Manager
18
19 FROM: Michael Kelley, Board Chair
20 Neil G. Pedersen, Superintendent
21 �
22 RE: Budget Work Session on May 27th
23
24 DATE: May 27, 2010
25
26 Since we already had an opportunity to present our budget request to the County
27 Commissioners at the Joint Meeting on April 27th, we would like to take this opportunity to
28 respond to the County Manager's recommended budget.
29
30 Local Operating Budget
31 Although the Manager did not support the $62 increase in the per-pupil appropriation that our
32 School Board requested, we are relatively pleased that his recommendation maintains the per-
33 pupil appropriation and applies it to the 279 additional students expected in the two school
34 districts next year. This will leave a shortfall in our local operating budget request of$732,840
35 that is attributable primarily to rate increases for the employer's share of retirement system
36 contributions and health insurance. We believe that it's reasonable to expect us to make
37 budget reductions of this magnitude in light of the County's financial challenges.
38
39 State Budget
40 Unfortunately, we are faced with reductions not only at the local level but at the state level as
41 well. Under the Governor's recommendation, we stand to lose $2 million from our anticipated
42 state appropriation. Under the Senate proposal, we would lose approximately $1.1 million. We
43 are still analyzing the House's budget proposal, but at first glance it appears to be very similar
44 to the Senate's budget except that it diverts some excess lottery revenues.
45
46 Reduction in Pay as you go funding
47 At its meeting on May 20�', the School Board did express concern that, under the Manager's
48 recommendation, the operating budget was being supported by a major reduction in our Capital
49 Pay-as-you-go budget. This has two negative implications. One concern is that this is a one-
50 year fix that uses capital funds to support the operating budget. Presumably, this is not an
3
1 approach that will be used every year; therefore, at some point there will need to be a
2 "correction" when the County will need to identify additional funding to support the current
3 operating budget. Perhaps, this is a risk that is worth taking at this time with the hope that
4 revenues will rebound as the economy recovers in future years, but we should acknowledge
5 that this may be more of a delaying tactic than a solution. Most economists are predicting that
6 this will be a very slow recovery and that it will take several more years for our state and local
7 revenues to match those that were generated before the recession began.
8
9 The second concern is the impact this will have on our capital budget. The Manager's
10 recommendation reduces our capital budget by approximately $1.1 million. This results in our
11 being able to fund from the pay-as-you-go budget only our technology projects ($1.5 million),
12 many of which are multi-year commitments, and rental of facilities ($100,000). This projection
13 is based on the assumption that we will enter into a three-year lease-purchase agreement for
14 $450,000 worth of computers, which will reduce our upfront costs next year by $300,000.
15 Altogether, this loss of funding would result in approximately $800,000 worth of CIP school
16 construction projects being delayed.
17
18 Greater Flexibility on Budgeting of Lottery Revenues
19 We had budgeted $1.3 million in lottery revenues for the balance of our 2010-2011 Board
20 approved CIP. The shortfall in the Manager's pay-as-you-go recommendation could be made
21 up by a relaxation of the County's�policy to budget lottery funds a fully year in arrears. It is '
22 estimated that by the end of the 4t quarter (June 30, 2010) we will have accumulated $1.7 �I
23 million in lottery revenues. If we were allowed to expend all of these funds and revenues from
24 the first two quarters of the 2010-11 fiscal year once they have been received, we could
25 complete all of the projects that we had included in our 2010-11 CIP. Basically, we're asking
26 thaf the Commissioners revise their policy to allow for the budgeting and expenditure of lottery
27 funds once they are received.
28
29 We should point out that even though we may be able to fund all of the projects in our CIP for
30 2010-11, these projects come nowhere close to meeting all of our capital needs. Each year we
31 schedule the highest priority projects for completion, but the bulk of the projects are delayed to
32 future years or are labeled as "unfunded." In recent years we are falling farther and farther
33 behind in the maintenance of our facilities and in staying on schedule to construct new schools.
34 The number of square feet in our facilities and number of acres on our sites have grown
35 considerably while the projected revenues available for the CIP steadily decreases, in large part
36 due to the decline in sales tax and the elimination of the state's Public School Building Fund.
37
38 Quali�ed School Construction Bonds
39 We will be applying for Qualified School Construction Bonds (QSCB) to finance the McDougle
40 Elementary and Middle School roof replacement project. The budget for this project is $3
41 million. Only $85,000 is budgeted in 2010-11 for investigatory and design work. Consequently,
42 receipt of the QSCB will have a minimal effect in 2010-11 but will help us to balance our CIP
43 projects during the next three years by spreading the cost out over 12-15 years. The first
44 payment would not be due until 2011-12, which the County Manager has indicated will be
45 acceptable in terms of the County's debt limit. While our initial application focuses on the
46 McDougle roof, we anticipate another allocation being made to us similar to last year. We
47 would apply for other CIP roofing and paving projects in the second round of applications. With
48 both applications, we intend to apply for approximately $5 million in QSCBs for this year. We
49 will need the signature of the Chair of the County Commissioners on our application,
4
1 acknowledging that she is aware of the application. If we are successful, we will need to return
2 to the Commissioners to seek approval for the sale of the bonds and a project ordinance.
3
4 Elementary No. 11
5 We would not want this QSCB to negatively impact our ability to construct Elementary#11.
6 With the Commissioners not having yet taken any actions to provide funding for the school's
7 construction, Elementary 11's opening date has been delayed by at least three years. It would
8 be helpful if the County staff could clarify when the County will be in a position to construct
9 Elementary 11. This depends upon freeing up additional debt capacity and identifying funds to
10 finance the construction of the school. We understand that the Commissioners will revisit the
11 status of Etementary 11 next fall.
12
13 Summary of CIP Concerns
14 In summary, with the cooperation of the County Manager and Commissioners, we believe that
15 we can address the capital projects that are currently included in our CIP for 2010-11. This will
16 allow us to meet some of the most urgent health and safety capital needs, but it will continue to
17 delay other much-needed capital projects. In the long run, we are extremely concerned that the
18 County will continue to fall farther and farther behind on providing funding that will allow us to
19 address the maintenance and construction needs of the school district. The 30% decrease in
20 sales tax receipts over the last three years does not bode well for a healthy revenue stream to
21 support the CIP.
22
23
24 Frank Clifton said that in both school systems, they did talk about the qualified school
25 construction bonds. If the funds are received and if the Board of County Commissioners '
26 authorizes it, there would not be any debt incurred this year. '
27 Commissioner Hemminger asked the school systems to help support the '/4-cent sales
28
tax if the B
oard of Count Co
mmissioners decided to move
Y forward with this option.
29
30
31 2. Fee Schedule
32 Frank Clifton said that the Board of County Commissioners asked to review fees every
33 year.
34 Paul Laughton made reference to Appendix B, page 39 of the budget document, and
35 said that any change would be highlighted. He went through all of the changes. The footnotes
36 that explain the reasoning behind the increases are on page 66. There are changes in the
37 Department on Aging, Library, ERCD, Parks and Recreation, Efland Sewer, Animal Services,
38 Environmental Health, Personal Health, and Solid Waste.
39 Commissioner Jacobs made reference to the Department on Aging, page 39, Senior
40 Program Classes, and why they are only trying to recover a small percentage of the
41 administrative costs. Paul Laughton said that the range is going from 10% to 25%. There was
42 no one from the Department on Aging present, and staff will bring an answer at another time.
43 Frank Clifton said that this is for programs that have private instructor taught classes.
44 Commissioner Hemminger asked if there was ever a consideration to look at any of the
45 fees that are over 10 years old that have not changed, such as photocopying fees that go back
46 to the 1980's.
47 Paul Laughton said that they can footnote those and in the past they looked specifically
48 at program and services fees instead of the type of fees she is mentioning.
49 Frank Clifton said that some of that relates to how much it actually costs to do those
50 things.
5
1 Commissioner Hemminger requested that the staff look at any fees that are 10 years old
2 or over. She also suggested adding a "last reviewed" date if the fees have already been
3 reviewed. Commissioner Gordon supported this.
4 Commissioner Jacobs pointed out that the gun permit fees were last approved in 1982.
5 He agreed with adding a "last reviewed" column.
6 Frank Clifton said that a column could also be added to show how many times a fee is
7 implemented.
8 Commissioner Pelissier agreed with the previous comments and thanked the staff for
9 preparing this schedule. She said that, instead of making a footnote that a fee has been
10 reviewed, it might be more useful to have a footnote as to why something has not been raised
11 because some fees are related to costs and some are administrative fees.
12 Frank Clifton said that staff looked at cost recovery in all fees. The goal was to focus on
13 things where there were a lot of costs involved.
14 Commissioner Jacobs asked clarifying questions about the Efland Sewer fees.
15 Planning Director Craig Benedict said that the goal is to standardize the language between
16 Hillsborough, Mebane, and OWASA.
17 Commissioner Jacobs made reference to page 65 and the non-schedule pickup and
18 asked which was correct, and Solid Waste Director Gayle Witson said that $35 to $40 is
19 correct. The $35 to $50 is incorrect.
20 Commissioner Hemminger asked about the public use of facilities and Frank Clifton said
21 that staff would come back with this information. The staff is looking at the usage now and also
22 researching what others entities are doing.
23
24 3. County Departments
25 Paul Laughton said that he and Michael Talbert will go by the list and hit the highlights of
26 the budget drivers for each department.
27 '
28 • Register of Deeds -Section 30
29 Paul Laughton said that the total expenditures have been reduced by $102,000 and they
30 have eliminated two vacant Deputy Register of Deeds Lead Worker positions. The department
31 also reduced non-permanent personnel and generated some savings of about $6,500 from
32 reclassifying a Deputy Register of Deeds Lead Worker to a Deputy Register of Deeds II
33 position. Also, on page 30-1, the revenues are projected to increase by $150,000.
34 Frank Clifton pointed out that there will be a new Register of Deeds this year as the
35 current one will be retiring.
36 Commissioner Yuhasz said that all new documents are scanned and put online going
37 forward, but the older documents are not being done. He suggested that there should be some
38 back-scanning for at least four years back.
39 Commissioner Jacobs said that page 30-2 says that this is the goal for this fiscal year.
40 Paul Laughton said that there are some non-permanent temp funds to help with the
41 back-scanning.
42 Commissioner Jacobs suggested that if the revenue in the Register of Deeds
43 department is exceeded, then the excess could go toward back-scanning.
44 Commissioner Pelissier said that the e-recording of documents would save a
45 tremendous amount of time. She asked if this is a common practice.
46 Joyce Pearson said that some counties do this, but not many. She said that in the
47 beginning, it would take more staff time.
48
49
50
6
1 • Department on Aging
2 Michael Talbert said that this department is going through changes with the upcoming
3 retirement of Jerry Passmore. The budget is just short of$1.5 million, which is a reduction of
4 $150,000. There are some service delivery changes, reduction in administration and operating
5 expenses, elimination of evening and weekend senior center hours, reduction in postage for
6 The Senior Times, reduction for Elder Care, and discontinuing of the telephone reassurance
7 program.
8 Frank Clifton said that the evening hour issue has been addressed by both Friends'
9 groups, who have raised their own funds to keep the evening hours. Also, transportation has
10 been separated out and this will now fall under Planning.
11 Kathie Kearns from the Department on Aging was available to answer questions.
12 Commissioner Jacobs made reference to page 3-5 and the Farmer's Market Outreach
13 Program and asked if this included multiple farmers' markets and it was answered that it is.
14 Commissioner Jacobs asked more clarifying questions, which were answered by Kathie
15 Kearns.
16 Commissioner Jacobs made reference to page 3-12 and the Facility Use Policy. He
17 said that this has been promised the Board of County Commissioners for about two years and
18 he would like to get this policy. If this policy would cover the costs, then it should definitely be
19 done.
20
21 • Animal Services -Section 4
22 Paul Laughton reviewed the changes in services. There will be a reduction in the overall
23 budget of$113,000 this year. This includes the elimination of a vacant Administrative Assistant
24 I position. There are also reductions in the in-house sterilization, non-pertinent and seasonal
25 staffing, vet services, healthcare supplies, animal supplies, and medical supplies. The
26 revenues are increasing by approximately$120,000 as a result of the animal tax, pet
27 registration, and the sterilization fee.
28 Commissioner Jacobs made reference to page 4-4 and the placement rate. He
29 congratulated the department on this increase. �
30 Commissioner Jacobs made reference to page 4-6 and suggested looking into an '
31 amnesty program to get more people into the program.
32 Commissioner Jacobs made reference to page 4-7 and asked about the protocols for
33 wildlife and dead deer responses.
34 Animal Services Director Bob Marotto said that they restrict services to health and safety
35 of animals and they refer other calls to wildlife organizations, pest control companies, or wildlife
36 rehabilitators. With respect to deceased animals, the Animal Services Department does not
37 remove them, but refers to the Department of Transportation or Public Works.
38 Commissioner Jacobs said that a citizen called him to complain that the County was
39 doing away with the low-cost rabies clinics and it was answered that the fee has been increased
40 and the program still exists.
41 Bob Marotto said that the department will now be doing sterilization in-house.
42
43 • Child Support Enforcement—Section 8
44 Paul Laughton reviewed the changes in services. There is an increase of about
45 $38,000 in this department. This department is being budgeted at 100% salaries. That,
46 combined with the retirement rate going up from 4.89% to 6.43%, has an impact on the budget.
47 There were some reductions in non-permanent personnel and several operational line items.
48 There is also an increase in revenue because of a revised indirect cost allocation plan.
�
1 Frank Clifton said that this department is now in rental space and staff is looking at a
2 place in an office building as an option to relocate. The lease runs out in December. Getting
3 rid of the lease would reduce expenses about $55,000.
4
5 • Cooperative Extension —Section 9
6 Interim Cooperative Extension Director Joey Knight said that this budget has a decrease
7 of about $63,000. This budget proposes elimination of the breastfeeding program, which
8 includes the Community Health Aide position, which will be reassigned to a similarly skilled
9 vacant position within the County. The impact on salary and benefits is a reduction of about
10 $42,000. Also, as of January 1, 2011, all positions within Cooperative Extension will become
11 State employees and will be budgeted as a contract personnel line item.
12 Joey Knight said that the breastfeeding program definitely needs to be taken over by the
13 Health Department or another agency because the employee that is there now has trained
14 about 250 Hispanic mothers per year in breastfeeding.
15 Discussion ensued about the arrangement of County/State employment.
16 Commissioner Jacobs said that the County Commissioners received an email from
17 someone at Piedmont Health Services explaining why the breastfeeding program is
18 irreplaceable. There was also an email from Alice Pettit, who used to be in Cooperative
19 Extension, saying the same thing. Before he is ready to eliminate this, he would like to let the
20 Health Director see those emails and have her address whether this service is going to be
21 replaced.
22 Commissioner Jacobs said that he would like to see the actual dollar amounts that are
23 cut for a service throughout the budget, specifically.
24
25 • Economic Development (Section 14-1), Visitors Bureau, and the Arts
26 Commission (Section 36)
27 Michael Talbert said that the Economic Development arm is seeing a reduction in the
28 budget of$131,000. This is coming from reduction of general operating expenses, reduction in
29 membership dues and subscriptions, reduction in advertising efforts, and reductions in
30 communications to corporations. The largest part of the reduction is the transfer of the Arts
31 Commission from Economic Development to the Visitor's Bureau.
32 In the Visitor's Bureau, there are some significant changes with delivery of service. The
33 budget is being reduced with decreases in mailings and an increased use of electronic
34 communications, generat operating reductions such as reduced subscriptions, and a reduction
35 in a local art grant contribution. The Arts Commission is seeing reductions of about $149,000
36 from reduced mailings, reductions in advertising and promotions, and reduction in convention
37 and trade shows. There will be one new position for the Arts Commission for about $80,286.
38 The operating capital is not funded and the occupancy tax is expected to bring in about
39 $840,000. The budgeted allocation from the Town of Chapel Hill is $150,000.
40 Commissioner Jacobs asked if a letter was ever sent to Chapel Hill about the occupancy
41 tax and Clerk to the Board Donna Baker said that it was mailed yesterday and the copies are in
42 the various packets this week.
43 Commissioner Jacobs made reference to page 36-2 and the last section, which says,
44 "expand sales departmenY', but the sales position was eliminated last month. He asked how
45 the sales department would be expanded.
46 Economic Development Director Brad Broadwell said that he does not know if this
47 should be altered in the notes. His understanding was that the sales person was being taken
48 away and the outside sales source in Washington D. C. was also being taken out of the budget.
49 He does not know anything about outside sales except what is happening with the staff.
8
1 Commissioner Jacobs made reference to page 36-3 and the hits on the OCAC website.
2 He asked why it had decreased so much in 2009-2010. Brad Broadwell said that this is
3 because of lack of travel due to the economy.
4 Commissioner Jacobs said that the Manager had mentioned moving $200,000+ out of
5 the fund balance, but it is not in the budget document. He would like to track this and discuss it.
6 He would like to leave the Arts whole even if it is going to be moved.
7 Frank Clifton said that they did move the total function of the Arts, but the State grant
8 money is not being shown. Commissioner Jacobs asked about the local matches and Frank
9 Clifton said that they would be in the Tourism Fund.
10 Commissioner Jacobs said that they County Commissioners have heard a lot from the
11 arts community and this is a good move. He suggested that it might be a good idea to have
12 some kind of stated relationship between the Visitor's Bureau and the Arts Commission. There
13 needs to be some surety that goes along with this change.
14 Frank Clifton said that he moved the Arts Commission because of a funding function
15 and a supervisory function. He said that the Board of County Commissioners set up the
16 advisory boards and agreements. As far as he is concerned, the Arts Commission and the
17 Tourism Board can both function as they already do.
18 Commissioner Jacobs said that if there is `x' money going from the reserve of the
19 Visitor's Bureau to Economic Development, he would like some recommendation from the
20 Economic Development Director as to how this would be applied to Economic Development.
21 Brad Broadwell said that he would provide this to the County Commissioners.
22 Commissioner Yuhasz said that the County is in need of increasing economic
23 development and they need to see how they can fund this department more rather than cutting
24 services.
25
26 • Department of Environment, Agriculture, Parks and Recreation (DEAPR)
27 Michael Talbert said that these three divisions have a total budget of about $2.5 million.
28 There are also a number of cuts. The funding for the Triangle Land Conservancy has been
29 eliminated. There has been a reduction in personnel, mainly temporary, reduced travel and
30 training, reduced hardcopies and mailings, reduced use of staff vehicles, and reduced operating
31 expenses such as subscriptions and computer needs. In Soil and Water, there are similar
32 reductions for travel, conferences, and training; operating expenses; and educational materials.
33 In the service delivery for the Parks and Recreation division, there are similar eliminations, but it
34 also includes two positions—a Park Conservation Technician I and an Administrative Assistant
35 II. With the staff reductions, they are also decreasing the level of park maintenance. There are
36 also reductions in operating expenses and travel in those areas. Regarding capital projects, the
37 total reductions are proposed to be $800,000 for this department.
38 Commissioner Jacobs made reference to page 17-8 and Environmental Education. He
39 asked why the Eno River Association and the schools were not listed here, because they both
40 do environmental education.
41 Dave Stancil said that there is a series of internal working teams and this is referencing
42 the fact that there is a working team that is trying to consolidate so that there is no duplication.
43 Commissioner Jacobs made reference to page 17-10, and the last item of Fiscal Year
44 Objectives, and said that the Manager is proposing cutting funding for the Hillsborough Youth
45 Athletic Association by more than half. He said that an organization like this depends on
46 corporate sponsorships to keep it afloat. Now it is proposed that the County go into competition
47 with HYAA to try and get sponsorships. He said that this sounds like the County is trying to
48 make it more difficult for a non-profit that provides recreation to survive.
9
1 Frank Clifton said that staff is working with those agencies to foster partnerships and on
2 the contribution side for HYAA, they looked at all core and safety net functions, and athletics is
3 not a core or safety net function.
4 Lori Taft said that team sponsorship is not a new initiative, but it has been done in the
5 past.
6 Commissioner Hemminger said that she disagrees with giving money to one individual
7 sport, and this group has had issues with being inclusive of all children. HYAA offers
8 scholarships, but cannot prove that it has given any. She said that if the County is not willing to
9 do it for all recreation activities (soccer, lacrosse, basketball, etc), she has a problem doing it for
10 this one group.
11 Chair Foushee said that she has raised that same sentiment for three years running.
12 Commissioner Hemminger asked about the opening of Fairview Park at the same time
13 as reducing park maintenance.
14 Dave Stancil said that they have been talking about that and are making plans to make
15 this work.
16 Lori Taft said that she has been looking at all services and is trying to cut in all areas
17 (less mowing, less fertilizing, etc.). She anticipates being able to open Fairview Park with little
18 additional trouble. The plan is to have a contribution from the Town of Hillsborough. The plan
19 is to have the park open by the first of September.
20 Frank Clifton said that he hopes the Board of County Commissioners understands that if
21 they are cutting the budget, then they will be cutting services.
22 Commissioner Pelissier made reference to page 17-8, Outcome Measures, and said
23 that she was surprised that the estimates for this fiscal year are higher for participants. She
24 asked how this was being accomplished.
25 Lori Taft said that they have increased maximum enrollment in individual classes, which
26 ends up being mostly profit. The other factor is that there are more waiting lists and these are
27 inexpensive activities.
28
29 • Health —Section 20
30 Paul Laughton reviewed the service changes. The total expenditures are increasing
31 approximately $40,000, but cuts have been made. The salaries are budgeting at 100% and the '
32 retirement rate increase is about $250,000 in increases. There was an elimination of a vacant
33 Social Worker II position, two non-mandated Community Social Services Tech positions
34 (reassigned to mandated functions), another Community Social Services Tech position (also
35 eliminates the maternal outreach program). Also, eight FTE positions were reassigned from
36 Central Division to Personal Health Division. In Environmental Health, there will be two
37 positions held vacant for six months. There were also operating expenses reductions.
38 On page 20-11, revenues are decreasing about $140,000 due to a 4.5% in the dental
39 reimbursement rates and loss of revenue because of the eliminated positions.
40 Commissioner Jacobs asked Health Director Rosemary Summers to respond to the
41 Manager's email questions and she said that she would send those responses in writing.
42 Commissioner Jacobs made reference to page 20-8 and said that the County
43 Commissioners heard from a Board of Health member about the gross inadequacies in
44 restaurant inspections and Rosemary Summers said that this year there was a vacancy in the
45 department for an entire year. They are just now starting the recruitment process for this. How
46 the rate comes up depends on how quickly the position can be hired.
47 Commissioner Jacobs made reference to page 20-11 and asked why the septic tank
48 manufacturer yard inspection was going from $100 to $200. Rosemary Summers said that the
49 program was started about five years ago to make septic installations on-site more efficient.
50 When the septic tank is put in, the in-ground stress testing does not have to be done before the
10
1 hole is closed because of this. This saves the contractors time in the ground and also saves
2 repeat visits out to the site. The septic yards pay the County for a staff member coming out to
3 certify.
4 Commissioner Jacobs said that he thought that the County had decided in the past to
5 provide primary care over and beyond what was required of them. He asked how much of the
6 primary care that is being provided is optional. Rosemary Summers said that all of the primary
7 care is optional. They provide primary care only to women and children and do not provide it to
8 all adults. The clients must be registered health department patients already.
9 Commissioner Hemminger asked about the delaying of the replacement of the dental
10 clinic. Rosemary Summers said that this is not included in this budget. The department is
11 using the cost settlement funds to pay for the renovation of the space. Also, the department is
12 not buying any new equipment. Also, this past year they got a lot of funds for H1 N1 from the
13 federal government. This money was used to replace some dental equipment. She said that
14 she would rather cut equipment than people.
15 Commissioner Pelissier asked about the service impact on pregnant women and
16 newborns and Rosemary Summers said that they will be receiving fewer services. The
17 reductions in the maternal care coordination and outreach program are a direct result of
18 reductions in Medicaid reimbursement. This means that all of the social workers that take care
19 of at-risk pregnant women have larger case loads and make fewer home visits. The prenatal
20 clients have doubled at both clinics. This is not a primary care service, but it is a regular health
21 department clinical service. The WIC program is the only federal program that has received
22 increases in the allotment to serve women and children. Piedmont Health operates this
23 program in all of their counties. Piedmont Health has free space at the Whitted Center to see
24 those patients. Piedmont also provides breastfeeding support.
25 Commissioner Jacobs asked about the funding for the school health nurses and
26 Rosemary Summers said that the goal was to have a school nurse in every school in Orange
27 County. She gave a brief history of this process. The Health Department's responsibility is to
28 coordinate the school nursing function. They all report to the school system, all of the funding
29 goes to the school systems, and there is a collaborative retationship, but there is no funding in
30 the Health Department for school health. The Community Health Services Supervisor works
31 with both systems to develop the school health policies and the Medical Director provides
32 oversight for both programs. This arrangement has worked out well.
33
34 • Library Services—Section 24 '
35 Frank Clifton said that there are two sections -the Library budget and contributions to ��
36 other libraries.
37 The total budget is just under$1.4 million. The budget has been reduced by about
38 $266,000. The biggest contribution is to the Chapel Hill Library of$249,000 (same as last
39 year). The Cedar Grove branch will be closed beginning August 1 st, transferring materials,
40 computers, and staff to the main library branch. The Cybrary in Carrboro will be eliminating one
41 position and reducing operating hours from 44 to 20 per week. This will be done in coordination
42 with the McDougle branch so that Monday-Friday there will be services in Carrboro at two
43 different locations. Regarding the Carrboro branch, there is a reduction in non-permanent
44 personnel, a reduction in the materials purchased, and reductions in administrative support.
45 Regarding the main branch, there is a reduction of$166,000. There are reductions in non-
46 permanent personnel, reductions in materials purchased, reduction in support for staff (travel,
47 training, printing, and mileage), and reduction in maintenance and repairs.
48 Commissioner Nelson said that there are charts in here with data about circulation but
49 nothing about Cedar Grove.
11
1 Library Services Director Lucinda Munger said that it is in the green handout and
2 includes a history of usage since its inception.
3 Frank Clifton said that one of the issues of the Cedar Grove library is one of security
4 since two people are needed there at one time.
5 Commissioner Nelson said that they worked very hard to get library services in the rural
6 areas, but in closing this branch, it means that libraries will most likely not come back to the
7 rural areas in the future. He said that there were conversations about co-locating libraries with
8 the schools at one time. He suggested restarting these conversations.
9 Lucinda Munger said that this was a very painful decision for her to close this branch.
10 She plans to explore other ways to serve these areas.
11 Commissioner Jacobs said that he thinks Pathways Elementary is designed similar to
12 the way they use McDougle for a library. This is a little closer to the northern part of the County
13 than the main branch library. It is designed so that people can get into the library when the
14 school is closed. He said that there are stores in the rural areas that could be used as
15 electronic libraries in order to keep a presence in these communities.
16 Commissioner Jacobs made reference to the two Carrboro libraries and said that there
17 are disproportionate cuts between these and the main library. Lucinda Munger said that the
18 budgets are structured very differently. The main library had to take the largest hit because she
19 zeroed in on operations.
20
21 • Orange Public Transportation (OPT) -Section 27
22 Michael Talbert said OPT is in the process of being transferred over to Planning and
23 Inspections. OPT services are more popular and the usage is up a little bit. About 60% of the
24 budget still comes from state and federal money. The budget is being reduced by $81,653. All
25 of this is in personnel services. An Administrative II position is being eliminated (April 2010).
26 There is a recommendation of the elimination of a vacant OPT Driver position. There was an
27 agreement to keep the retiring director's position vacant for the next six months.
28 Frank Clifton said that there was discussion about contracting for transit services with
29 Chapel Hill Transit or Triangle Transit. He said that the availability for the $10 tag fee is out
30 there and this would generate about $1 million a year.
31 Commissioner Gordon reminded the Board that when they were given the financial '
32 model for the county transit plan, it included the '/2-cent sales tax and this $10 vehicle
33 registration fee. It is important to have a transit plan before the Board enacts the fee.
34 Commissioner Jacobs said that the Board has not agreed to the $10 tag fee. Frank
35 Clifton said that it is the Board's option to enact the fee at any time.
36 Jerry Passmore said that July 1 St will be the transfer of this department. He said that it is
37 logical to go to the Ptanning Department. He said that the operation will not change, but the
38 reporting function will be under the Planning Department.
39
40 • Planning and Inspections—Section 29 -(including Efland Sewer)
41 Michael Talbert said that there are changes in service delivery with a reduction of
42 $185,750. A couple of Planner II positions are being eliminated (April 2010). There is also
43 elimination of a vacant Code Compliance Officer. This department has been under constant
44 reorganization and reclassification. Most of the reductions are personnel related.
45
46 • Solid Waste (Section 33)
47 Michael Talbert said that Solid Waste has an Enterprise Fund that is self-supporting.
48 There are several changes. Sanitation is being moved out of the General Fund and back to
49 Solid Waste. There is a recommendation of limiting funding for capital operations (new transfer
12
1 station) and other capital equipment that was proposed by the department. Some fees and
2 services are being reatlocated. The total reduction of the budget is $1.1 million.
3 Frank Clifton said that staff is intensely looking at the landfill program and the process
4 since the County will most likely be transferring its waste to Durham County.
5 Commissioner Jacobs said that there were some questions about the 3R fee and how it
6 is applied. He asked if this could be defined for the Board in writing.
7
g • Board of County Commissioners
9 Commissioner Hemminger asked about the Clerk's funds for continued education for
10 certification and if it was in the budget and Donna Baker said yes.
11
12 • County Manager(Section 11)
13 The total expenditure is decreasing by about $70,000, which includes reassignment of
14 two Administrative Assistants to the Manager positions and a Civil Rights Specialist position to
15 other County departments. There are also reductions in departmental supplies and in personal
16 mileage and operations.
17 Commissioner Jacobs asked about cutting travel and Frank Clifton did not answer that
18 question.
19 Frank Clifton said that there will be minimal staffing and there will be times when calls
20 will be forwarded elsewhere.
21
22 • Financial Services (Section 18)
23 There is an expenditure decrease of around $3,000. There will be a six-month hiring
24 delay of the Financial Services Coordinator position that will become vacant June 30t" and the
25 current vacant position of the Budget and Management Analyst position.
26
27 With no further items to discuss, a motion was made by Commissioner Hemminger,
28 seconded by Commissioner Jacobs to adjourn the meeting at 10:18 p.m.
29 VOTE: UNANIMOUS ,
30
31 Valerie Foushee, Chair
32
33 Donna S. Baker, CMC
34 Clerk to the Board