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HomeMy WebLinkAboutORD-2004-008 - Budget Amendment #9tIlA -- ", /) 4P, ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: March 4, 2004 Action Agenda Item No. SUBJECT: Budget Amendment #9 DEPARTMENT: Budget PUBLIC HEARING: (Y /N) No ATTACHMENT (S): Attachment 1. Budget as Amended Spreadsheet Attachment 2. High School #3 School Capital Project Ordinance Attachment 3. November 20, 2002 Letter Regarding High School #3 from Barry Jacobs to Valerie Foushee INFORMATION CONTACT: Donna Dean 245 -2151 TELEPHONE NUMBERS: Hillsborough 732 -8181 Chapel Hill 968 -4501 Durham 688 -7331 Mebane 336 - 227 -2031 PURPOSE: To approve budget ordinance and school capital project amendments for fiscal year 2003 -04. BACKGROUND: Arts Commission The Dreams -of- Flight creative writing project is an officially endorsed program of the First in Flight Centennial Commission and is administered by The North Carolina Arts Council. The North Carolina Arts Council awarded the Orange County Arts Commission a grant in the amount of $2,750 for this project; these funds are included in the approved budget for FY 2003 -2004. The Orange County Arts Commission raised a total of $3,500 from the following sources: Orange County School System ($500), New Hope Elementary School PTSA ($1,000), Chapel Hill - Carrboro City Schools ($1,000), Smith Middle School PTSA ($1,000), to be used as the County's local match for the Dreams -of- Flight creative writing project in New Hope Elementary School (4t' graders) and Smith Middle School (8th graders). The funds are designated for artist fees (playwright) and to purchase flight - related resources for schools' media centers: This amendment provides for the receipt of $3,500 in matching funds for the North Carolina Arts Council grant. (See Attachment 1, column #1) 2 Department on Aging 2. The Community Based Services division within the Department on Aging has received notification of additional revenues in the following two areas: • Home and Community Care Block Grant additional funds totaling $30,100 • State Senior Center General Purpose funds totaling $17,421 for the Central Orange, Chapel Hill, and Northside Senior Centers. Also, the division exceeded budgeted revenues during the first six months of the fiscal year in Community Based Services fees, and based on collection trends, an additional $20,000 in fees is anticipated by the end of this fiscal year. These additional funds totaling $67,521 will be used to support senior center operations and to purchase much - needed equipment and supplies for the three senior centers. This budget amendment provides for the receipt of these additional funds. (See Attachment 1, column #2) 3. The Eldercare division within the Department on Aging has received notification of additional National Family Caregiver Support grant funds totaling $26,172 for this fiscal year. These funds will be used to expand existing services and to launch a dementia education project for local medical care providers. No County matching funds are required for the receipt of these funds. Also, the Department has received private donations totaling $3,000 to be used for the frail and elderly for items not provided for under existing grant and local funds. An example would be paying the installation fee for a personal safety (lifeline) system. This budget amendment provides for the receipt of these additional funds. (See Attachment 1, column #3) Chapel Hill - Carrboro City Schools High School #3 4. In November 2000, the Board of Commissioners approved a Policy on Planning and Funding School Capital Projects. That policy identifies two levels of school construction projects — Level 1 and Level 2. Level 1 projects are those projects that have a relatively small scope of work and can be accomplished using a single prime contractor, in house staff or entail purchasing equipment and vehicles. Level 2 projects are major projects that require several phases to complete. For these projects, the Commissioners approve project funding in four phases: • Concept/Pre- Planning Phase — includes preliminary programming and design work that would result in conceptual drawings and preliminary cost estimates • Planning Phases — includes siting the facility, construction of infrastructure, and preparation of construction documents in preparation for the bidding process • Design and Construction Phases — includes final design, facility construction and purchase of equipment, furnishings, technology and one time start up costs • Final Accounting Phase — provides a reconciliation of actual project expenditures with approved budget Planning for a third high school located in the Chapel Hill - Carrboro City Schools district is currently underway. Funding for land purchase and base construction related to the new school totals $27.8 million with the prospects for an additional $2.2 million to be added to the project budget if CHCCS includes various "smart growth" construction initiatives acceptable to the BOCC. On June 26, 2003, the Board of County Commissioners approved a capital project ordinance in the amount of $2,770,075 to cover the costs associated with the land purchase ($2,535,700) and a portion of the professional fees ($234,375). The district recently entered into a contract to purchase two tracts of land for the school and is pursuing "eminent domain" to acquire the third parcel needed for the school site. While waiting for the land transactions to be completed, CHCCS has moved forward with preliminary design and site work for the new high school. At this time, the CHCCS Board of Education is requesting that the BOCC approve an additional appropriation of $868,625 in School Construction Impact Fees to cover the cost of design work along with other survey and site work. The following chart provides details regarding the request from CHCCS: In accordance with the BOCC Policy on Planning and Funding School Capital Projects, the Chapel Hill - Carrboro City Schools plans to present the preliminary design to the Commissioners later this winter after the Board of Education has approved it. Commissioner Brown is the BOCC appointed representative to work directly with the Board of Education on this project. In accordance with the attached letter dated November 20, 2002 from BOCC Chair Barry Jacobs addressed to CHCCS Chair Valerie Foushee, the CHCCS Board of Education is requesting that the BOCC appropriate $491,823 in School Construction Impact Fees to cover the cost of the purchase and placement of eight mobile classrooms. Four of the units are located at Chapel Hill High and four at East Chapel Hill High. Of the total units placed, CHCCS purchased seven from GE Modular at a per unit cost of $41,935 for a total of $293,545. With regard to the eighth unit, the district is using a mobile classroom provided by NC State University Solar Center as part of a test of energy efficient units. The district did not have to purchase the unit but did have to cover the cost of site preparation and installation. The chart below offers details related to the purchase and installation of the mobile units: Amount I Vendor Schematic design $218,000 Mosley Architects Design Development $270,000 Mosley Architects Construction Documents - $270,000 50% of total Mosley Architects Site Engineering $150,000 CLH Design Property Surveys $95,000 CLH Design Sub - surface Analysis $50,000 Froehling & Robertson Technology Consultant $50,000 to be determined Total Professional Services Contracts to Date $1,103,000 Less amount approved by BOCC on June 26, 2003 $234,375 Additional ro essiona Services Requested by CHCCS for High School #3 $868,625 In accordance with the BOCC Policy on Planning and Funding School Capital Projects, the Chapel Hill - Carrboro City Schools plans to present the preliminary design to the Commissioners later this winter after the Board of Education has approved it. Commissioner Brown is the BOCC appointed representative to work directly with the Board of Education on this project. In accordance with the attached letter dated November 20, 2002 from BOCC Chair Barry Jacobs addressed to CHCCS Chair Valerie Foushee, the CHCCS Board of Education is requesting that the BOCC appropriate $491,823 in School Construction Impact Fees to cover the cost of the purchase and placement of eight mobile classrooms. Four of the units are located at Chapel Hill High and four at East Chapel Hill High. Of the total units placed, CHCCS purchased seven from GE Modular at a per unit cost of $41,935 for a total of $293,545. With regard to the eighth unit, the district is using a mobile classroom provided by NC State University Solar Center as part of a test of energy efficient units. The district did not have to purchase the unit but did have to cover the cost of site preparation and installation. The chart below offers details related to the purchase and installation of the mobile units: 4 The attached CHCCS High School #3 Capital Project Ordinance (See Attachment 2) appropriates a total of $1,360,448 in School Construction Impact Fees for the purposes outlined in the preceding section. Governing & Management - School Collaboration Facilitation 5. The County contracted with the Dispute Settlement Center (DSC) for an amount not to exceed $2,000 to facilitate a round of discussions to promote greater collaboration involving the Chairs of the BOCC and both school boards, the County Manager, and the two school superintendents. These discussions have been completed, and have led to a scheduled second round of facilitated discussions between the two school boards to pursue the most promising opportunities for further collaborative efforts. The cost for this second round, not to exceed $3,000, will be shared equally by the three governing boards. This budget amendment will establish a $5,000 appropriation for facilitated school collaboration discussions, recognize revenue of $1,000 from each of the two school boards, and approve an allocation of $3,000 from Commissioners' Contingency to cover the, County's share of the cost for the DSC contracts (see Attachment 1, Column #5). FINANCIAL IMPACT: Financial impacts are included in the background information above. RECOMMENDATION (S): The Manager recommends that the Board of County Commissioners approve the attached budget ordinance and school capital project ordinance amendments. Total Vendor Purchase of Modular Units (7 units @ $41,935 ) $2931-545 GE Modular Site Preparation for 8 units (including bathroom facilities, rock removal for foundations, utility connections, etc.) $154,815 Patriot Building Company Fire Alarm Systems $22,734 Professional Fees $20,729 Kim Anderson, Architect o a $491,823 The attached CHCCS High School #3 Capital Project Ordinance (See Attachment 2) appropriates a total of $1,360,448 in School Construction Impact Fees for the purposes outlined in the preceding section. Governing & Management - School Collaboration Facilitation 5. The County contracted with the Dispute Settlement Center (DSC) for an amount not to exceed $2,000 to facilitate a round of discussions to promote greater collaboration involving the Chairs of the BOCC and both school boards, the County Manager, and the two school superintendents. These discussions have been completed, and have led to a scheduled second round of facilitated discussions between the two school boards to pursue the most promising opportunities for further collaborative efforts. The cost for this second round, not to exceed $3,000, will be shared equally by the three governing boards. This budget amendment will establish a $5,000 appropriation for facilitated school collaboration discussions, recognize revenue of $1,000 from each of the two school boards, and approve an allocation of $3,000 from Commissioners' Contingency to cover the, County's share of the cost for the DSC contracts (see Attachment 1, Column #5). FINANCIAL IMPACT: Financial impacts are included in the background information above. RECOMMENDATION (S): The Manager recommends that the Board of County Commissioners approve the attached budget ordinance and school capital project ordinance amendments. Attachment 1. Orange County Proposed 2003 -04 Budget Amendment The 2003 -04 Orange County Budget Ordinance is amended as follows: #3 Receipt of additional #4 An appropriation of #1 Receipt of donations #2 Receipt of additional National Family Caregiver $1,360,448 from School #5 An appropriation of raised locally by the Arts Home and Community Support grant funds to Construction Impact Fees $3,000 from Commission to match a Care Block Grant funds, start a dementia for CHCCS High School Commissioners Original Budget Budget As Amended grant awarded by the State Senior Center education project, as well #3 to cover the cost of Contingency and receipt Budget g 9 Through BOA #8 North Carolina Arts General Purpose funds, as receipt of private design and site work, and of $2,000 from Chapel Hill As Amended d Council for a Dreams -of- and additional Community donations to be used for for the purchase of Carrboro City Schools Through BOA Flight creative writing Based Services fees to the frail and elderly for mobile classrooms (See and Orange County project in the school support senior center Items not provided under CHCCS High School #3 Schools for School systems. operations in the County. existing grant and local Capital Project Consultant work funds. Ordinance) General Fund Revenue Property Taxes $ 83,514,625 $ 83,514,625 $ $ $ $ $ Sales Taxes $ 19,208,523 $ 19,208,523 $ $ $ $ $ $ 83,514,625 License and Permits $ 1,348,385 $ 1,348,385 $ - ; $ $ $ 19,208,523 Intergovernmental $ 12,438,352 $ 13,225,855 $ , , $ $ S 2,000 ; 1,348,385 $ 13,305,048 Charges for Service $ 6,662,444 $ 6,663,953 $ $ 20,000 ,2 ; ; $ Investment Earnings 609,000 609,000 ; 8683,953 , Miscellaneous $ 708,514 $ 762,877 $ 3,000 609,000 ; Transfers from Other Funds $ 2,383,571 $ 2,383,571 765,877 Fund Balance $ 2,099,108 $ 3,314,355 $ 2,383,671 Tots General Fund Revenues $ 128,972,522 $ 131,031,144 $ 3,500 $ 67,521 $ 29,172 $ 3,314,355 S ; 2,000 $ 131,133,337 Expenditures Governing & Management $ 5,827,659 $ 6,032,576 ; $ $ $ General Services $ 10,774,,680 $ , , $ $ $ 2,000 S 6,034,67 6 Community & Environment $ 3,093,584 $ 3,355,907 $ 3,500 $ $ 1,902,855 Human Services , , , s 67,521 $ 29,172 $ i $ 3,359,407 Public Safe $ 12,562,508 $ 13,077,255 $ S $ $ 30,692,234 Culture 8 Recreation $ 2,237,506 $ 2,365,095 $ $ $ $ ; 13,077,255 Education $ BD,785,972 ; 60,765,972 $ $ 2,365,085 Transfers Out $ 3,922,444 $ 3,935,944 63,935,944 $ To(al General Fund Approprlatlon $ 128,972,522 $ 131,031,144 $ 3,500 $ 67,521 $ 29,172 S $ $ D$ $ $ 2,000 $ 131,133,337 s ; $ o Note, ft t ssd� Contagvxy pom- ( ;3,000) Is an offsetthg entry sdtNn the Nan - DglerbMtsl setnon of this NrxUon, and UM retests no bolrom Ilse charge High School #3 Chapel Hill- Carrboro City Schools Capital Project Ordinance V Be it ordained by the Orange County Board of County Commissioners that pursuant to Section 13.2 of Chapter 159 of the General Statutes of North Carolina, the following capital project is hereby adopted. Section 1. The project authorized provides funds for the Chapel Hill- Carrboro City Schools to acquire property for and begin planning for the design, construction, and equipping of a new high school facility. Anticipated revenues for the project consist of 2001 voter approved bond funds, school construction impact fees, and a private placement loan. Section 2. The officers of the County are hereby directed to proceed with the project within the budget contained herein. Section 3. The following revenue is anticipated to complete this project: Section 4. The following amount is appropriated for this project: Through.FY 2002 -03 FY 2003 -04 Through 2003 -04 Sales Tax $0 $0 School onstruction h-npact Fees $0 $4,130,523 $4,130,523 Public School Building Funds $0 $0 $0 2001 Bonds $0 $1,103,000 $0 Other $0 491,823 $0 Total Fundin $0 1 $4,130,523 1 $4,130,523 Section 4. The following amount is appropriated for this project: Section 5. Pursuant to paragraph 5 of Orange County's "Policy on Planning and Funding School Capital Projects ", the Board of Commissioners will appoint one Commissioner representative (Commissioner Margaret Brown) and one or two staff representatives to partner with school representatives as project plans develop. Through FY 2002 -03 FY 2003 -04 Through FY 2003 -04 Construction $0 $0 Site Acquisition $0 $2,535,700 $2,535,700 Site Devel $0 $0 $0 Fees $0 $1,103,000 $1,103,000 Mobile Classrooms $0 491,823 $491,823 Tecbnolo & $0 $0 C,onst action Contingm $0 1 $0 One -Time Start Lip Costs $01 1 $0 Total Costs $0 $4,130,523 1 $4,130,523 Section 5. Pursuant to paragraph 5 of Orange County's "Policy on Planning and Funding School Capital Projects ", the Board of Commissioners will appoint one Commissioner representative (Commissioner Margaret Brown) and one or two staff representatives to partner with school representatives as project plans develop. Section 6. The effective date of this ordinance is the effective date of an interlocal agreement governing this project between the Chapel Hill - Carrboro Board of Education and the Orange County Board of Commissioners. The ordinance will remain in effect from its effective date through June 30, 2007. Adopted this 4th day of March, 2004. 0 November 20, 2002 Ms. Valerie Foushee, Chair Chapel Hill - Carrboro Board of Education Lincoln Center, Merritt Mill Road Chapel Hill, NC 27516 Dear Ms. Foushee: I write on behalf of the Orange County Board of Commissioners in response to correspondence we received in late October from the Board of Education on the subject of new school facilities. As you well recognize through repeated public acknowledgements by your Board members, the County Commissioners remain firmly committed to meeting the operational and capital needs of both school systems and their students. That commitment is well- documented through Orange County's long- standing ranking at the top of the list of county per pupil appropriations, and through capital improvements funding of several hundred million dollars since we undertook the 1988 bond referendum. A recent audit of County finances indicates that 50 percent of our budget is devoted to education. We appreciate the collaborative spirit with which we and the two school boards have worked in recent years. As I said at a recent meeting, although we do not always communicate perfectly, the commitment to communicate remains strong. In that regard, we believe it is important for the BOCC to lay out in this letter certain considerations and constraints that will affect what can and what cannot realistically be achieved in pursuing the direction established in your Board's resolution of October 17, 2002. Our observations are founded in our unanimous and collective judgment that the best way to sustain the community's support for education is to continue to demonstrate proactive planning in a fiscally prudent manner. It is our intention to maintain our commitment to excellent schools while balancing those needs with the numerous other County obligations to provide high quality human services, public safety, and other vital County services. The County has achieved an enviably strong financial position and top -level bond ratings through sound fiscal management and creation of and adherence to a rational debt management policy. This has occurred while demonstrating a willingness to raise revenue necessary to carry out a well - conceived long -range capital investment plan for essential school and County facilities. Within that context, this letter will touch upon the numbered paragraphs in your resolution. 1. The BOCC anticipates recommendations coming from the High School Planning Task Force by the end of the calendar year on the scope of the proposed third high school in the Chapel Hill - Carrboro system. Based on our construction standards and identified funding in the CIP, $27.8 million is the total expected to be available for additional high school space through the 2007 -08 planning period for the issuance of bonds and alternative financing. This total will need to accommodate any site acquisition, construction, or ancillary expenditures (e.g. mobile classrooms) for high school space that are not covered by CHCCS pay - as- you -go capital funding. We acknowledge the extremely tight timeframe involved in a proposed opening of a third high school for the 2005 -06 academic year, and that such a target will be difficult if not impossible to achieve. 2. We recognize that CHCCS did not submit a formal request that the Chapel Hill Urban Services Boundary be moved. Therefore we decided not to take a formal position on such a request at our November 6 meeting. We did attempt to communicate the pitfalls of such an action and the delays that would result. We also commended the issue of water /sewer and urban service boundaries to the School Facilities Task Force for incorporation into school construction /siting standards. 3. We do not anticipate that there will be additional capital funds available to deal with a potential Lincoln Center remodeling /expansion before 2007 -08. However, assuming the construction of a new 1000 student high school in CHCCS before then, there should be time for our two boards to consider possible timing and sources of additional capital funds beyond that point. 4. The BOCC will work with the school board to develop plans for a new central office facility consistent with the procedures laid out in the November 2000 "Policy on Planning and Funding School Capital Projects ". 5. The BOCC agrees that the reallocation of 2001 bond funds from Elementary #10 to High School #3 requires the commitment of the BOCC to approve alternative financing for Elementary #10 in a manner that allows for timely construction of that facility at the Old 86 /Eubanks Road site. That timing will be determined based on the working of student projection models that will be updated and monitored annually through the SAPFO process. In the interest of keeping faith with voters who understood that the November 2001 bond referendum included funding for two new elementary schools, any formal action to reallocate 2001 bond proceeds to High School #3 should come after a public hearing is conducted on the matter. Possible sources to pay the debt service on Elementary #10 include impact fees, CHCCS PAYG funds, CHCCS district tax proceeds,. Countywide ad valorem tax proceeds, or some combination of these mechanisms. County Commissioners must be fully engaged in any discussions that may ensue about class size reduction (whether generated locally or at the State level), as we will bear the financial responsibility for the capital facility implications that would be forthcoming from any such reductions. 10 6. The school board's direction to proceed with the acquisition of up to 15 mobile classrooms should be carried out with the recognition that it must be accomplished within the constraint of the $27.8 million available for high school space, or from other CHCCS pay -as- you -go funding. 7. Funding for a fifth middle school is not included in the County's 10 year CIP. The possible need for such a facility should prove an appropriate test for the jointly adopted Schools Adequate Public Facilities system and the associated student projection methodologies. 8. The BOCC concurs with the school board that the community will be well served by plans to pursue three distinct school facilities at the CHATPEC site. 9. We look forward to.working with CHCCS on the identification of possible additional school sites, and pledge the assistance of the County's GIS system to expand our mutual capabilities to identify and analyze the pool of potentially available and suitable sites. On behalf of the BOCC, we welcome the opportunity to work with your board in planning and providing timely and highly functional school facilities to serve our students and the wider community for many decades to come. Sincerely, Barry Jacobs, Chair �d told, when he was being dismissed from UNC Hospital, that it was a suitable placement for him to go to the homeless shelter. Commissioner Brown said that she would like to address these issues. Chair Jacobs said that there is a letter from Ellen Perry (copy) that will be entered into the record and to get a response from Assistant County Manager Gwen Harvey. Tara Fikes said that they did close the waiting list in October 2001 because the list had 1,037 persons on it and there was very little turnover. They felt that it was not fair to continue to receive applications when there was such a long waiting list. The wait was sometimes 3 -4 years or longer. She said that they have applied for more vouchers but there has been very little growth in the section 8 program because it depends on federal funding. There are approximately 494 families on the waiting list today. Commissioner Brown said that at the NACo conference in Washington last week, she went to sessions on mental health and affordable housing and she brought up housing for the mentally ill but was told that this Administration is not favoring any increase in vouchers or money for affordable housing. Tara Fikes said that after seeing the proposed fiscal year 2005 budget she is concerned about maintaining the program as it is. Commissioner Brown said that their affordable housing bond has been used very well to make housing available to the disabled, such as Club Nova. Commissioner Carey asked about the last time that the County applied for new vouchers and Tara Fikes said 1999. Commissioner Carey asked if there was a formula for when to apply again. Tara Fikes said that they just watch for a Notice of Funding Availability. She said that last year there was an opportunity to apply for vouchers for the disabled, but now they require an extensive amount of support services to come from a local non - profit. Chair Jacobs asked about the waiting list and Club Nova units. He asked if the waiting list could be opened to people who might have mental handicaps. Tara Fikes said that those units were for people with disabilities. She said that if there were no disabled persons on the waiting list, then it would have to be reopened. Chair Jacobs asked Tara Fikes to check the waiting list for disabled people so that it can be advertised that there are openings. Susie Aragona, a Club Nova staff member, asked if they submit written feedback by the April 15th deadline, if it will be incorporated into the plan. She wants more details about the process of public feedback. Tara Fikes said all comments submitted would be put in the annual plan and submitted to HUD. The staff will come back after April 15th with all comments as well as the timeline of opening the waiting list. 8. Items for Decision -- Consent Agenda A motion was made by Commissioner Gordon, seconded by Commissioner Carey to approve those items on the consent agenda as stated below: a. Minutes The Board approved minutes from November 5, 2003, November 18, 2003 and January 31, 2004. b. Appointments — None c. Housing Rehabilitation Contract Award The Board awarded one housing rehabilitation contract for the HOME Program Housing Rehabilitation Program at 420 Northside Dr., Chapel Hill for $22,375 to Silver Fox Enterprises. d. Budget Amendment #9 The Board approved budget ordinance and school capital project amendments for fiscal year 2003 -04 for Arts Commission, Department on Aging, Chapel Hill - Carrboro City Schools High School #3, and Governing and Management — School Collaboration Facilitation.