HomeMy WebLinkAboutMinutes 05-26-2011 APPROVED 8/23/2011
MINUTES
ORANGE COUNTY BOARD OF COMMISSIONERS
BUDGET WORK SESSION
May 26, 2011
The Orange County Board of Commissioners met for a Budget Work Session on
Thursday, May 26, 2011 at 7:00 p.m. at the Southern Human Services Center in Chapel Hill,
N.C.
COUNTY COMMISSIONERS PRESENT: Chair Bernadette Pelissier and Commissioners
Valerie Foushee, Alice M. Gordon, Barry Jacobs, Pam Hemminger, Earl McKee and Steve
Yuhasz
COUNTY COMMISSIONERS ABSENT:
COUNTY ATTORNEY PRESENT: John Roberts
COUNTY STAFF PRESENT: County Manager Frank Clifton, Assistant Manager Gwen Harvey,
Interim Assistant Manager Michael Talbert and Clerk to the Board Donna S. Baker (All other
staff inembers will be identified appropriately below)
1. Durham Technical Community Colleqe
Dr. Bill Ingram, President of Durham Technical Community College, thanked the County
Commissioners for this opportunity. He said that he is here with Robert Kinney, with Finance
and Administrative Services and Ed Moore, the Retiring Vice President. He gave some
information about Carlo Robustelli, Director of Orange County Operations for DTCC. He said
that he included the year in review and he would like to come back and discuss with the
County Commissioners at a later date to discuss the summary in more detail. He said that
about 16% of Durham Tech's credit student enrollment resides in Orange County. The budget
request is the same as last year for the Orange County campus - $537,521. They have
requested an increase of $48,000 in capital funds to upgrade the classrooms for technology at
the Skills Development Center in Chapel Hill. He said that they are delighted to be Orange
County's community college.
Commissioner Jacobs asked about technology at the Skills Development Center and
asked if Orange County should get funding through the '/4-cent sales tax for technology in
capital needs for retro-fitting older facilities for education in Orange County.
Dr. Ingram said yes and he is prepared to work with staff on these issues.
Chapel Hill Carrboro City Schools
Superintendent Neil Pedersen and CHCCS Board Chair Jamezetta Bedford made a
PowerPoint presentation.
Board of Education's 2011-2012 Budget Request
Board Recommended Budget
- CHCCS requested the same County appropriation as in 2010-2011, or$36,594,720.
- The request increases per-pupil funding by $31 from $3,096 to $3,127 as a result of a
lower enrollment projection (11,718) than in 2010-2011 (11,834).
Manager's Recommended Budget
- The Manager's Recommended Budget would provide a per-pupil allocation of $3,102
($6 increase)
- The Manager's Recommended Budget leaves a shortfall of $298,218 from the Board's
Budget Request.
- The Manager's Recommended Budget allocates only 47.1% of the County's budget to
school districts. The targeted 48.1% would provide schools with an additional
$1,772,963, or an additional $92.62 per student.
Funds available from debt service reductions
$620,954 previously used for County debt service for school projects is now available for
reallocation by the Board of County Commissioners.
What difference does $298,218 make?
- Five teachers can be employed to continue World Language in the early grades
- Eight teacher assistants or secretaries retain their positions
Local Fund Balance (table)
Possible Reductions in the CHCCS Allotment based on House Budget (table)
Possible Reductions in the CHCCS Allotment based on Senate Budget (table)
Impact of More at Four reductions
- Potential loss of nearly $300,000
- Loss of Pre-K classes
- Fewer students served
- Loss of support staff that provide support for disadvantaged families
- Overall reduction in program quality
Future concerns:
CIP Funding History(table)
- Technology funding is in jeopardy
- The third year that staff inembers have not received salary increases...yet insurance
and other expenses continue to go up
Elementary #11
- SAPFO projects need for additional elementary school in 2013-14
- Deconstruction needs to begin in Fall 2011 ($500,000 is insufficient)
- Requesting a $20,563,117 funding authorization to complete the project
Conclusion:
- We request full funding of our budget request
- We request funding to complete the deconstruction of the Northside facility
(approximately $1 million) and a funding commitment for the balance of the project
- In the future, we need more capital funding to support our investment in current
facilities and to provide 21St Century technology to our students
Commissioner Gordon said that CHCCS has done a good job explaining what the
$298,000 and why it is important. She asked why they needed the extra funding next year.
Neil Pedersen said that they have plenty of new expenses such as retirements,
phasing out of federal funds, etc. and these were covered through the continuation budget.
Their expenses are greater next year than the funds they received this year so they would like
to have the same funding as last year. He said that they have suggested eliminating one
secretarial position per school, an average of two teacher assistants per school, and reducing
seven or eight core classroom teacher positions. This would include a reduction in the
offerings of world language in the elementary school.
Commissioner Gordon asked what the Board would plan to do with the funding from
the '/4-cent sales tax if it passes and Neil Pedersen said that the priority would be on retrofitting
the older schools and funding technology.
Jamezetta Bedford said that the 10-year CIP has some older bathrooms that will be
renovated.
Frank Clifton said that this is Neil Pedersen's last budget session since he will be
retiring and expressed thanks to him for his service in Orange County.
Chair Pelissier said that the Board of County Commissioners appreciated all he has
done for education in Orange County.
Oranqe County Schools
Superintendent Patrick Rhodes and Vice Chair ponna Coffey made this presentation.
Superintendent Rhodes said that the OCS Board approved budget was $23,043,528 or
$3,096 per student. This is the same request they have provided for the last three years. He
said that as presented, the House and Senate budgets will put them at 20% less than the
2007-08 levels for operating funds. In terms of position loss from the State level, it could mean
as many as 50 teaching positions. They have appropriated 41% of the fund balance ($1.4
million) and have made another$1.2 million in operational reductions, mainly at the district
level. He pointed out that for the past three years, they have reduced local recurring costs by
just at $3 million and have improved the achievement rates at nearly every level. He said that,
to maintain this progress, he will likely come to the Board of County Commissioners next year
for an increase in per pupil allocations. He said that they appreciated the leadership of the
Board of County Commissioners and the commitment to education.
Commissioner Gordon asked when the OCS Board would consider what it would do
with the '/4-cent sales tax and Superintendent Rhodes said that this will be addressed during
the June meeting.
Superintendent Rhodes said that it will be a challenge for everyone moving forward,
and he sent a letter to the Board of County Commissioners requesting consideration of some
funding options.
Chair Pelissier said that they will probably start reviewing this letter in the school
collaboration work group.
Commissioner Jacobs made reference to the letter and said that he does sympathize
with some of the concerns that were raised about funding equity in regard to capital. He hopes
that this is part of the discussion with the collaboration group. He said that there used to be a
lot of discussion about equitable funding.
Chair Pelissier appreciated the comment about making strides in student achievement
despite the budget cuts.
Frank Clifton said that education is the largest portion of the County's budget and the
County cannot sustain the levels they are at now without an increase in revenues. He said
that next year will be an even more difficult year.
Commissioner Jacobs said that it would be at least informative for staff to come back
with bond information to pay for Elementary School #11. He said that this Board has been
committed to not raising property taxes, and if they are making large capital investments, it
might be worth it to talk about issuing bonds. He said that if they approve a bond, the
taxpayers will be committed to paying for the projects in the bond.
Commissioner Gordon said that she would not support a bond for Elementary School
#11 because the County has worked hard under the SAPFO to plan for future schools and is
already committed to building Elementary School #11.
Frank Clifton asked if the bond issue would only be within the district.
Commissioner Jacobs said that he is just asking staff to look into other capital projects
that may be included and this may be too late for Elementary School #11.
2. County Departments
Financial Services Director Clarence Grier said that the budget analysts will go through
each department and provide an overview.
Budget Analyst Michael Talbert said that they will go through the budgets briefly then
each department head is available to answer questions. A couple of ground rules —there is
pressure on the health insurance costs, increases in retirement required from the State, and
401 k contributions that are funded for an entire year as opposed to half a year. Every
department that has employees, that is impacted in budget line item. Secondly, there are
departments that have requested technology and are using the Technology Project and
Capital Project funding. There has been considerable discussion about where that money
gets spent.
Sheriff— paqe 32-1
This budget is an increase of $270,000, which is a 2.4% increase. The Sheriff has 138
FTEs and represents about 15.8% of the total employees. Most of the costs are driven by the
cost of benefits and there are some additional costs from the jail operations. There are some
capital expenditures this year—four road-control vehicles and one transport vehicle for the jail;
and $90,000 to replace kitchen equipment for the jail kitchen. The other change this year is
that the County jail is broken out as a separate operation from the Sheriff. There are 36.5
FTEs that are dedicated to the jail. The operating budget total is $3.8 million. The capacity of
the jail is 129 prisoners and there is a contract with the federal government to house 75
prisoners. This number varies daily. The reimbursement from the federal government is $1.8
million a year for housing the prisoners.
Sheriff Pendergrass said that he appreciated meeting with the County Commissioners.
He said that, in separating the budget out, there has been an increase somewhat in their
request and one they hope to be considered is that the cost pool for the inmates is $60,000
and they wanted to go to $80,000. This contract provides medical service for all inmates and
this is a good staff.
Michael Talbert said that the Sheriff is the benefactor of some of the technology dollars
that will come through the technology project for the replacement of 20 laptops with a cost of
$26,000.
Commissioner McKee asked if four vehicles would be enough and Sheriff Pendergrass
said yes.
Commissioner Foushee asked if there were matching funds with the technology.
Michael Talbert said that the laptops were originally partially-funded by grant money, but there
are no matching funds to replace them.
Commissioner Foushee asked what would happen if the State gives the County the
responsibility of housing misdemeanants for six months instead of 90 days and how that would
work in providing capacity.
Sheriff Pendergrass said that if this happens, they will have to start shifting the number
of prisoners.
Commissioner Foushee asked about the time period for the contract with the federal
government. Sheriff Pendergrass said that there is two years left on the contract. He can
reduce the number of prisoners.
Commissioner Jacobs said that last year the Sheriff asked for 12 vehicles and asked if
he was getting close to what he had asked for last year.
Commissioner Jacobs asked if the Sheriff was comfortable with the planning of a jail
expansion or some other alternative for space.
Frank Clifton said that he and the Sheriff have been working closely on this and
evaluating options. One of the critical issues is that expanding in downtown Hillsborough is
probably not an option. They have been meeting with a firm that is giving some options and
prices.
Sheriff Pendergrass invited the County Commissioners to come and visit the jail.
Aaina
Budget Analyst Paul Laughton made reference to page 3-1 and gave an overview of
the budget. He introduced Janice Tyler.
The total expenditures are about $1.4 million, which is an increase in $20,000. This
includes a transfer of 0.25 FTE of the Aging Director and 0.25 FTE of the Senior Citizen
Program Administrator position. This also includes a full year of funding for an Aging Director.
This is an increase of $26,000. The budget also includes some losses of positions. Two
social workers have been transferred to the Department of Social Services. This was an
impact of about $110,000 of deductions. The increase in operations is $50,000 and this is
additional funding of $55,000 in contract service line items for the senior lunch program at both
senior centers. Page 3-5 shows the number of ineals served.
Chair Pelissier made reference to page 3-2 and offsetting revenues and the statement
"generate 50% of the department's budget from non-County sources." She asked if that was a
stable percentage. Kathie Kearns said that this was in FY 2010-11. This fiscal year it is
slightly less.
Commissioner Jacobs said that the eldercare program line has decreased by half since
2009-10. He asked if this was reflected in the change in staffing and Janice Tyler said yes, the
position is going to DSS.
Commissioner Jacobs applauded Janice Tyler and DSS for this collaboration.
Child Support Enforcement
This is on page 9-1. The total expenditure is about $950,000, which is an increase of
$40,000. The capital outlay of $20,000 is related to the purchase of furnishings (work stations,
desk chairs, and tables related to the move to the west campus). The department has also
requested an additional $13,000 related to scanning equipment to be shared by the 12 staff
members and software. These would be purchased with the current available funds from the
IT Capital.
Frank Clifton said that this building is rented and it has been purchased by a group that
is bringing a business to Hillsborough. The plan is to move the operation to the basement of
the office building where additional space was planned. The lease ends in November 2012.
County Attorney
This is on page 11-1. Michael Talbert said that this budget went up $6,000 to
$461,000. Operational cost changes are $500 and there is no major change in this budget.
John Roberts said that this amount is approximately $74,000 less than the County
spent on comparable legal services in FY 2009. The difference has been approximately the
same, even including outside consulting. He does not anticipate any significant operations
increases ever.
Commissioner Jacobs requested that the document list the 2010-11 outcomes.
Frank Clifton said that the Attorney has advised that it is possible for the Attorney's
Office to provide the legal services for the child support division. The overall savings to the
County for this would be about $20,000.
Economic Development and Visitors Bureau with Arts Commission
Michael Talbert said that this is split into two areas — Economic Development and the
Visitor's Bureau. This is on page 16-1. The total ED budget is $377,000, which is $20,000
more than the current budget. The increases are made up of additional funds for benefits and
increases in several line items to provide better service to the customers. There is a push to
do more business on the internet.
Economic Development Director Gary Shope said that the County has actually
established some very solid momentum in economic development. He has been expanding
the website and working on some site analysis with one of the EDDs. There is a lot more
interest in Orange County right now. He said that they have loaned about as much money as
they can in the Small Business Loan Fund. Part of the '/4-cent sales tax will add to this budget
so they can do more loans out of this fund.
Commissioner Jacobs said that Gary Shope has done a tremendous job of being an
ambassador in Orange County for economic development. He asked about the marriage of
the Arts Commission and the Visitor's Bureau. Gary Shope said that in economic
development, they regard everything as jobs and potentially generating tax base. As the
Visitor's Bureau competes in a global market, it gets much more difficult when it has to
compete with Raleigh. He introduced Laurie Paocielli from the Arts Commission.
Laurie Paocielli said that the merge with the Arts Commission has been completely
positive. They have been able to work together while maintaining separateness and capitalize
on opportunities because they are together. As an example, the artists in Orange County have
long asked for a comprehensive online arts calendar. This will be introduced in July. She
sees future opportunity and growth between the two departments.
Commissioner Jacobs said that there is no mention of staffing or the Economic
Development Board and this conversation seems to have been lost. He said that two
members of that previous board are in limbo and have not heard anything from Orange
County. He hopes that this would be reflected in the objectives. Gary Shope said that he
agreed and this should be in the objectives. He will provide something in writing about this.
Discussion ensued on the small business loan fund.
Commissioner Yuhasz asked how much money would be advisable to carry the loan
fund through until the '/4-cent sales tax starts coming in. Gary Shope said that he would have
to look at the past loans that have been made.
Frank Clifton said that the last couple of years have been very active and they have
used $200,000 last year. The goal is eventually repayment of the loans and the interest
earned will create a fund to make the loans. There is $72,000 left.
Commissioner Yuhasz asked if they could find another$50-100,000 to put into the loan
fund in this budget year to make sure and sustain the effort.
Gary Shope said that the goal is for this to be a revolving loan fund.
Commissioner Yuhasz said that he would like to flag this for further conversation
regarding adding some money to the loan fund.
The Board agreed to keep this program afloat.
Visitor's Bureau
This was on page 38-1. The budget for the district bureau now includes the Arts
Commission. The budget is $1,078,000. This is an increase of $102,000 from last year's
budget. It is still $165,000 below the budget of FY 2008-09. The Town of Chapel Hill is
increasing its contribution to this fund from $150,000 to $200,000. The hotel industry has
recovered from the recession, it seems.
Laurie Paolicelli said that she is seeing a recovery in the tourism industry. She said
that they are very much concerned with the development that is already here such as the
hotels, attractions, and events. They have become the go-to for getting the word out about the
community assets. Orange County hosts about two million visitors a year. There is some
competition with Durham, Wake, and Alamance Counties. She anticipates an 11% increase in
revenues this year.
Commissioner Jacobs asked for an update on the occupancy taxes that Carrboro and
Hillsborough are seeking and if there is any role for the elected officials of this Board to speak
to the elected officials on the other boards about participating in the Visitor's Bureau.
Frank Clifton said that, historically, the Town of Chapel Hill and Orange County have
had a hotel/motel tax of 3%. Orange County has historically contributed 100% of that revenue
to fund the tourism operation. The legislation says that each entity has to contribute at least
15% of the revenues to promotion of tourism activities. The Towns of Chapel Hill and
Hillsborough have not contributed their total share. Carrboro had a bill passed several years
ago and now Hillsborough is getting a similar bill that requires the creation of a separate
appointed board to oversee this money, which is to be spent entirely on tourism.
Commissioner Jacobs asked if the bills had been passed yet and Laurie Paolicelli said
no, but they are very collaborative with the economic nodes in each of the towns.
Commissioner Yuhasz asked about the 100% expenditure of the funds the County
receives and said that there have been some issues in the past with having adequate funding
for restaurant inspections. He asked if there was some opportunity to take some portion of the
money received to use for some other activities that would directly enhance the attractiveness
of Orange County to visitors.
Elections
This was on page 7-1. The expenditure budget is approximately $690,000. The
increase is $230,000 for this year, which is due to budgeting for three elections in 2011-12
versus only one election in 2010-11.
Commissioner Jacobs said that the there is a national campaign to reduce the
opportunities to vote in early voting. He asked if there was any data about who votes early in
Orange County. He asked if there would be any cost savings by reducing early voting or if it
would cost more.
Tracy Reams said that there is a daily log of how many voters, so she could provide
this information. Traditionally, the turnout is lower for early voting. Regarding the costs, she
does not think it would save the County much if early voting were reduced.
Emerqency Services (includinq Fee Schedule chanqe requests)
This was on page 18-1 and pages 59-61 (fee schedules). The total expenditure budget
is approximately $7.9 million, which is an increase of $1.2 million. This is the first department
with new positions recommended. This is on page 2-19.
The first positions are four telecommunicators —two effective July 1St and the other two
January 1St. This is a salary/benefit impact of $136,000 for 2011-12. For 2012-13, the impact
will be $181,000. Also included in this are six new EMT positions at hiring intervals of one
position every other month starting July 1St, with the last EMT hired May 1, 2012. This is an
impact of $146,000 for 2011-12 and $250,000 for 2012-13. These positions are part of a pilot
program that the EMS Director is looking at and was started at Durham Tech. It is kind of a
paramedic academy initiative where, upon successful completion of the academy, the EMTs
will be promoted to paramedic status and will have a two-year commitment to Orange County.
The salaries would be promoted up to paramedic status after two years. To fund that, the
County had set aside $24,000 in a contract personnel line item.
This also includes full year funding of four paramedic positions. This is an impact of
$110,000. The budget also includes (page 18-1) capital outlay for replacing two ambulances
at a total cost of $531,600, which includes the outfitting of the units. There is also $50,000 in
capital items. The budget for next year also includes $19,000 for additional training.
The revenues are increasing approximately $150,000. The fund balance appropriation
is allowed through the E911 Board, where 50% of the fund balance can be used for any public
safety need.
EMS Director Frank Montes de Oca spoke further about the Paramedic Academy.
They are also working with partners such as UNC to place one of the units in a building on the
UNC campus. About 90% of this will be paid by UNC. The only cost for the County will be
internet access and some small utilities. This will allow one of the units to be moved to the
central part of Chapel Hill, where 60-80% of the calls come from.
Frank Montes de Oca thanked the Board for adding the four new telecommunicators.
This is a great need.
Frank Clifton said that the call center the County runs is also the dispatch station for all
local fire departments as well as the police departments.
Commissioner Gordon asked about the report that explained the response times that
were so high. She said that this was a very high-profile report. She said that it would be
helpful if this data were put together in the same vein as the high-profile report to show that
Orange County is responding.
Commissioner McKee asked if they would be able to salvage the EMS unit that
wrecked recently. Frank Montes de Oca said that the newer unit that was wrecked was
purchased because it is a top of the line unit, but it is cheaper to operate. This unit will be
replaced.
Commissioner McKee asked about the stationing of the new units on the UNC campus
and asked if an additional unit would be shifted north since that is where the longer response
times originate. Frank Montes de Oca agreed and said that all of the service delivery is south
of US 70. As more units are added, one of the focuses is to look at plugging these units into
the north.
Commissioner Yuhasz said that Commissioner Jacobs had mentioned before the role
of elected officials in an emergency and he would appreciate being included in any training
operations so that he knows what is expected of him and other County Commissioners.
Commissioner Yuhasz said that Frank Montes de Oca mentioned the significant
weather events of late and he noted that there is a request for two weather monitors. He
asked how important these were in keeping track of the weather emergencies.
Frank Montes de Oca said that last year they spent $60,000 in hooking up NCDOT
traffic cameras. With regard to weather radar, he would like to have a backup system to The
Weather Channel.
Regarding training for the elected officials, there is training available off-site.
Commissioner Yuhasz said that he is concerned about not including the funding for the
ADA program, which was requested fairly recently. He wonders what needs to be done to get
this money back into the budget.
Commissioner Jacobs agreed with Commissioner Yuhasz and said that this was an
important advance.
Commissioner Jacobs also said that he does not know how well they are educating the
public on emergencies and how to respond or where to go. He wants to know what the Board
of County Commissioners' role is. He would like to see the emergency plan before the
summer break.
Frank Montes de Oca said that the County does manage some of the notification
systems. An example is the Silver Alert, and they can send emails and text messages. They
are also using social media. He said that the not so good answer is that the County has not
had the staff to address these shortcomings.
Commissioner Jacobs said that the fire chiefs had expressed a concern that there is
not a Fire Marshall.
Frank Montes de Oca said that he has taken on the responsibilities of the Fire Marshall
and he needs to get some information out to make sure that the fire departments know what
this means. It does not change the way the inspections and investigations are done. This also
saves $80,000 a year.
Commissioner Jacobs said that one of the fire departments that was mentioned for
stationing a vehicle is one of the ones that asked for a tax increase and it was not
recommended. He said that being more positive in how the County approaches fire
departments would be a good idea.
Commissioner Jacobs made reference to the data and said that he wants to get away
from average response times. He is pleased about moving forward, but the data now is still
murky. He would like to see "mean" times and times by the area of the County. He also asked
for Frank Montes de Oca's response to the recent EMS study/report.
Commissioner Gordon underscored the emphasis about getting the information out to
the County Commissioners and the public about what they need to do in case of an
emergency before the summer break. She said that there are other issues besides weather
events such as a nuclear event.
Health (includinq Fee Schedule chanqe requests)
This is on page 21-1. Paul Laughton made reference to page 68 and Appendix B.
Total expenditures for the department are $7.1 million, which is an increase of $100,000. This
number is a little misleading because there are 90 FTEs and just the health insurance increase
and retirement and 401 k increase makes up the entire increase. There is a decrease in
operations (page 21-1) for the department. Most of this is due to the savings of building rent at
the Carr Mill Mall for the relocation of the dental clinic to the Whitted Building. The department
also requested $63,000 in capital outlay funds for completion of the permits and to meet the
needs of the Environmental Health Division ($40,000); purchase of field tablets, printers, and
barcode scanners; and purchase of five laptops for social workers. These are items will be
funded by the General Fund, but through the IT Capital Project.
Dr. Rosemary Summers introduced Dr. Dorothy Solenti, who will be the Interim Health
Director starting June 1St. Dr. Solenti has been a health director with both Chatham and
Alamance Counties and comes to Orange County as a contract person from the Institute of
Public Health.
Rosemary Summers highlighted that the Health Department has a substantial staff and
coming in with the budget at this level was a monumental effort. She said that there were two
capital items that were not recommended to be funded by the Manager and those were the
vehicle requests —two vehicles for family home visiting and two trucks for Environmental
Health staff. The trucks are of particular concern because they are used by the wastewater
environmental health specialists.
She said that there is a lot they do not know about the budget and they are cautious
about what is going to happen because of what the legislature may adopt. The Tobacco Trust
is going away and this has an FTE associated with it. The Health Department has had this
grant for nearly eight years. This grant funds one coordinator who works with both school
systems to have clubs in every middle and high school in the County and they have the lowest
smoking rate amongst teens in the State. The other grant money that is at risk is the Smart
Start program and there are two full-time positions funded by the Smart Start grant. One of
those grants is for the Families in Focus intensive home visiting program, which provides
services for at-risk children and first-time mothers who are at risk for child abuse and neglect.
The other program that Smart Start funds is the Child Care Health Consultant Program, which
puts a nurse into child care centers and helps those child care centers ensure that the children
have appropriate medical plans in place and make sure that there is sanitation and proper
hand-washing and diapering, etc. There are also classes for parents.
Chair Pelissier thanked Rosemary Summers for changing the outcome measures to
actual outcomes as opposed to just number of visits.
Information Technoloqies
This is on page 24-1. Total expenditures are $2.1 million, which is an increase of
$160,000. The driving budget items are increases in personnel services, which is due to two
GIS positions that were transferred to the IT department and will be budgeted for 2011-12.
This was an increase of $151,000. There is a decrease in revenues is from the annual support
and maintenance costs from the municipalities. This is a decrease of $9,000.
Chief Information Officer Todd Jones said that this current fiscal year, they were able to
achieve all of their baseline responsibilities as well as add a lot of new functions to the website
and County operations. The biggest project was the final implementation of the tax system,
which included collections, assessment, and land records. They also consolidated GIS
Enterprise Services, which centralized the addressing function.
Commissioner Jacobs said that he did not see in the outcomes a strategic technology
plan. Todd Jones said that he and the County Manager have been talking about a process to
take another approach to this and engage the County Commissioners in this process.
Frank Clifton said that he would try and set up a meeting with staff and the School of
Government next week and then bring this as a topic for the next fiscal year.
Commissioner Gordon said that she is glad that they are working on a strategic plan,
but she hopes that they come up with something specific for the County Commissioners to
discuss.
Planninq and Inspections and Oranqe Public Transportation with Efland Sewer
(includinq Fee Schedule chanqe requests)
This is on page 30-1. In this department, there have been three individuals that have
been moved out to other departments — one in Planned Review, one in Erosion Control, and
one in GIS that went to IT. Overall, the total budget for Planning and Inspections is $2.449
million, which is a decrease of about $51,000. There has also been a decrease in revenues,
which is a function of the economy. The revenues are also down about $50,000. The County
cost is an additional $3,618. Operational costs have also been added such as UDO Phase 2,
the Transit Study, and the Orange-Alamance County Boundary Line. There are also
numerous fees that are associated with Planning and Inspections that have been updated this
year that do not have a material impact on the bottom line of revenues.
In terms of the Efland sewer, there is a budget increase of about $15,000. Most of that
is operating budget in terms of increasing rates from the Town of Hillsborough.
Planning Director Craig Benedict said that the transit study has to do with park and ride
lots that could service rural Orange County or future commuter patterns.
Commissioner Jacobs asked if Alamance is also paying $25,000 for the OA Line
boundary and Craig Benedict said that he does not know yet. He will bring forward the cost
sharing information.
Commissioner Jacobs made reference to page 30-3 and Continued Administration of
JPA, SAPFO, and Planning Board for Quarterly Public Hearing Agendas. He said that the joint
planning hearings are like the appendix of the government and he hopes that someone will try
and make them either functional or get rid of them.
Commissioner Jacobs made reference to page 30-13 and Possible Coordination with
the Town of Hillsborough to Develop and Adopt a Joint Land Use Plan and asked why this is
"possible" and if it is not an intention to do it. Frank Clifton said that it is an issue of allocation
of time and staff.
OPT
Michael Talbert said that the budget is $745,000, which is an increase of $3,800. The
main reason for the increase is the health, retirement, and 401 k increases. No capital is
requested for the coming year. There is an increase in revenues of $19,295, which involve
increases in grants and a small operating increase. They are still discussing merging the
system with the Chapel Hill system.
Craig Benedict said that the OPT-CHT consolidation study will not conclude for another
12+ months, but they hope to have information that could be used in preparation of next year's
budget. The meetings are ongoing.
Solid Waste (includinq Fee Schedule chanqe requests)
Michael Talbert said that Solid Waste has gone through some significant changes and
he expects even more changes as they go forward with next year's budget. The Sanitation
Division has been moved from the General Fund and into the Solid Waste Enterprise Fund.
This still requires a $1.6 million contribution from the General Fund. This information is on
page 34-1. The big increases in the budget are $2.3 million in total increases. Some of the
budget drivers are capital expenses to replace aging equipment, money for the Rogers Road
community, and various other changes. He made reference to the sheet that shows the
Convenience Centers increase in hours.
Solid Waste Convenience Centers Expansion
Beginning October 1, 2011
Cc�nver�ience Genter Haurs
Tuesda Thursd� Saturd� New
Mc�nd�y' y Wed. y Friday y Sur��lay Haurs
7�m- ���� 7�m- ���� 7am- ��m- ��� 1 pm- ��
6prn ���� 6�m ����� 7am-6prn 6prn ��m ����� 6pm
Walnut Grove Church Road
New
Hrs Week�Y Hc�urs �pen Qpen , �1 C}per� C}per� 5 �6 '
,Annual Hc�urs ', 5�2 I , 26t� 832 ''
Annual '
(1) Costs ' $69,805
Cost/per '
(3) Haur $84
Eubanks Road
New
Hrs �����Weekly Hc�urs Qpen ���� Qpen �����, �1 C}per� ����� C}per� � ������6 '���
����,Annual H��rs '�, 5�2 '�, 26{� 832 '�
Annual
(1) Costs $39,995 '
CQStlper '�
(3) Haur $48
Bradshaw Quarry
Road
New
Hrs Weekly H�urs 11 Q�en , 1'i C1pen 22 '
,Annual Hc�urs , �72,, �72 , , 1144
Annual '
(2) Costs ' $50,178
Costfper '�
(3) Hour $44
$159,97 '
(4) ,Total ,Estirnated Annual', Cost, , 9,
7am- ' 7arn- ' 7am= 7am-
Landfill Hours 4pm ' 4pm ' 4pm 7am-4pm 4pm 7:30am-12prn
(1) Two employees assigned to this Site
(2) One employee assigned to this Site
(3) Costs per hour are estimated based on a combination of Full-time & Non-Permanent Employees.
(4) Total Annual Costs does not include capital improvements at Convenience Centers.
Commissioner McKee said that he is glad they are increasing hours on Sunday at two
sites. He suggested switching one of the open days to a Sunday for the Bradshaw Quarry
Road site. He would like to see all of the SWCCs open on Sundays.
Michael Talbert went through the highlights of the Solid Waste budget. To accomplish
the additional hours, there are two additional FTEs. One is a 0.75 and the other is a 0.50. In
addition, there are non-permanent hours that would be increased to make up the difference.
There will be no major increases in transportation costs.
Commissioner McKee said that the great majority of the citizens in Orange County look
at solid waste and the convenience centers as a core service. He thinks that they have come
to expect a limited amount of services for their taxes, but they expect these core services. If
the centers are going to be called convenience centers, they really should be convenient for
the citizens.
Commissioner Jacobs said that it was brought up at one of the budget public hearings
that the public did consider this a core service and that it should be a part of the General Fund.
Frank Clifton said that the bottom line is that there has to be a revenue source. In this
case, there is a two-fold purpose. One is to cover the additional cost of keeping the units open
longer and the second one is to begin to develop more efficient units.
Commissioner Yuhasz said that the fee was a recommendation of the Solid Waste
Work Group and is a good alternative to pay-as-you-throw.
Commissioner Jacobs said that a citizen asked him about energy efficient light bulbs
and the fact that citizens have to dispose of them at the Eubanks site only. He asked if the
SWCC will be able to provide this same service.
Solid Waste Director Gayle Wilson said that there are some space constraints at some
of the centers. He said that Walnut Grove is the first of the convenience centers that are being
proposed to be modernized.
Commissioner Jacobs said that since the federal government is mandating these bulbs,
then maybe there should be something in the interim so that people have a place to put them
until one of the convenience centers is modernized.
Commissioner Jacobs said that several County Commissioners were at the Eno Haven
dedication and he was shocked that a 70+unit apartment complex in Orange County would
have no component for recycling built into it. He asked if there were standards for this.
Gayle Wilson said that he has a staff inember who is involved in developmental review
in all of the jurisdictions and part of the review process is to make sure that storage for
recyclables is provided.
Commissioner Jacobs asked about the fund balance and it was answered $13 million.
Commissioner Gordon asked about the cost of modernizing Walnut Grove and Gayle
Wilson said $850,000.
Commissioner McKee asked about the closure date of the landfill and the
improvements at the Walnut Grove SWCC. He has questioned this expenditure before and he
continues to question it along the lines of the County Commissioners have not set a definitive
date for the closure of the landfill. He would prefer to see the improvements pushed back a
year because of the operating expense and debt service and it would allow time to decide if
the improvements make sense in relation to when the landfill is closed.
Gayle Wilson said that unless the landfill closes in the next couple of years, they are on
a site modernization trajectory where all of the sites would be improved about the time the
landfill closed if they did one per year. They will have to be careful to not cross the line and
make the sites transfer stations, or there will be State regulations that come into play as well
as additional costs. He said that the best case scenario for landfill closure is 4-5 years. This
would allow each site to be improved each year and all of the money would not have to be
borrowed at one time.
Gayle Wilson said that when the landfill closes, there will be an intense six-month
period of constructing the cap on the landfill and doing the closure project and much of the
attention will be put toward this project. He does not want to worry about the convenience
centers and how they are running at that time.
Commissioner Yuhasz said that, according to the chart, the difference between
Eubanks and Walnut Grove is the hauling costs. If the hauling costs are cut, then a significant
amount of money can be saved. He thinks that this is where the savings will come from with
the improvements.
Commissioner Jacobs said that he does not think the County Commissioners have yet
articulated well that the Eubanks Road convenience center may be improved. This means that
it may have more services and it will be bigger. He does not think that the people of that
community know that this is in the plan. He wants to make sure that it is articulated to the
people of the community that this is a community service and not a new service.
The following departments will be discussed on June gtn:
• Tax Administration
• Board of County Commissioners
• County Manager
• Financial Services
3. Resolution Exercisinq Oranqe County's Riqht to Increase the Mixed Solid Waste
Tippinq Fee to Mitiqate Adverse Environmental Conditions and Requestinq Oranqe
County's Partner Municipalities Endorse the Use of Revenues Generated by the
Increased Fees for Remediation Efforts in the Roqers Road Area
Frank Clifton said that the Board asked staff to bring forth a plan to address issues in
the Rogers Road area. The staff came back with a plan to establish a fund through adding a
surcharge to the tipping fee for the landfill. Back in December of 2009, the County made a
decision that it would not have a transfer station and this was communicated with the towns.
Then in early 2010, there was a meeting with various staff, town managers, and public works
staff and they discussed the future of solid waste in the County. Durham then indicated its
willingness to accept the trash. At the same time, the Rogers Road issue was discussed and
how to pay for remediation. Early in 2011, the County initiated a meeting with the town
managers and the letter about the Durham issue and a surcharge to fund the capital costs of
doing something for Rogers Road.
Commissioner Gordon made reference to pages 14-15 and the working group's
proposal. The towns seem to be referring to this in their resolutions.
John Roberts said that the towns are primarily referring to the last sentence, "final
determinations of the public benefits to be provided, sources of financing, and mechanisms for
providing the benefits, however, shall be made only by further agreement with all of the
parties." He thinks that this is what the towns are focused on. He encouraged the County
Commissioners to watch the meetings and listen to the comments. It seems that the
comments were most focused on the fact that they were not consulted before this decision
was made or put forward. Actually, the managers were consulted, but apparently, that
message never got through.
Frank Clifton said that the proposal he gave used $5 this year and then showed the fee
increase by as much as $2 a year after that. The reason for that is the costs on the
improvements is not yet known. He was trying to show that a revenue stream could be
produced at a certain level and that the people of Rogers Road had waited long enough for
the County to address these issues. He said that he did as he thought the Board directed him
to do.
Commissioner Hemminger left at 10:57 PM.
Commissioner McKee said that he read the resolution from the towns and in his view
the County Commissioners gave staff direction and they came back with a proposal and it was
discussed thoroughly. He said that adjusting the dollar amount of the tipping fee increase
would amount to back-pedaling. He said that to start wavering or adjusting any part of it at this
point is a bad idea.
A motion was made by Commissioner McKee, seconded by Commissioner Yuhasz to
approve a resolution exercising Orange County's right to increase the mixed solid waste
tipping fee to mitigate adverse environmental conditions and requesting Orange County's
partner municipalities endorse the use of revenues generated by the increased fees for
remediation efforts in the Rogers Road area; and direct the Clerk to the Board and Manager to
provide copies of the resolution to each Interlocal Agreement party in order to meet the 30-day
requirement in advance of the projected July 1, 2011 implementation date.
Commissioner Jacobs said that he is going to vote against this because he thinks they
could move $150,000 from the Fund Balance to make up the difference in the $2 and the $5 in
the tipping fee. He thinks that the County continues to erode the relationships with the
municipalities and everyone is blaming everyone else.
Commissioner Gordon said that she would like to figure out a way to come up with the
same funding but not raise the tipping fee the full $5, and to work with the towns.
Frank Clifton said that when the landfill closes, he is not sure of the obligations of the
town for remediation costs later on.
Commissioner Jacobs said that the better relationships the County has with the towns,
the more likely they are willing to be the County's partner.
Commissioner McKee said that Commissioner Jacobs' scenario is the same amount of
money, but it is not the same intent to him. This started with a very simple concept of a $5
increase on a tipping fee and he thinks they should go forward with that. He said that to start
deviating from the intent is to back away.
Chair Pelissier said that she would like to adopt this resolution. She suggested sending
a letter to the towns to come up with the same dollar amount. There has to be a 30-day notice
of the tipping fee increase.
Discussion ensued on how much tipping fee to propose.
John Roberts said that there is some disagreement here and one of the towns
indicated some interest in, if the County gives them some idea of what community benefits the
County is interested in, and then maybe they would go along with the $5.
Commissioner Yuhasz said that there is a list from the Rogers Road community.
Frank Clifton said that the money would be used first to provide for water and sewer
and clean up of environmental hazards.
Commissioner Gordon suggested some language that would allocate the first dollars to
go for the environmental cleanup and the second part would say, "pursuant to the agreement,
over the next year, the County would talk with the partners about what the money would then
be used for, etc."
Commissioner Jacobs said that he would be comfortable approving the motion,
specifying that the immediate targets would be water and sewer and addressing illegal
dumping that was not done by the owners of the property involved, and that the County invited
the municipalities to participate over the summer in these conversations that are going to come
back to the County Commissioners in the fall with suggestions about community benefits.
Chair Pelissier asked if it would be problematic to add this language about meeting with
the towns to discuss other community benefits. Her understanding is that they are raising the
tipping for things related to the landfill from the environmental perspective, which is something
they can do without the agreements of towns. This language gives a mixed message that the
monies are for other community benefits.
Commissioner Foushee said that this is so indicative of why the County has not done
anything to this point, because they spend all of this time rearranging and rewriting without
making a decision. She is prepared to call the question.
VOTE: Ayes, 6; No, 0 (Commissioner Hemminger had already left at this point)
RESOLUTION EXERCISING ORANGE COUNTY'S RIGHT TO INCREASE THE MIXED
SOLID WASTE TIPPING FEE TO MITIGATE ADVERSE ENVIRONMENTAL CONDITIONS
AND REQUESTING ORANGE COUNTY'S PARTNER MUNICIPALITIES ENDORSE THE USE
OF REVENUES GENERATED BY THE INCREASED FEES FOR REMEDIATION EFFORTS IN
THE ROGERS ROAD AREA
WHEREAS, the Towns of Carrboro, Chapel Hill, and Hillsborough (the "Partners") are Partners
with Orange County in managing solid waste through the Agreement for Solid Waste
Management (the "Agreement"); and
WHEREAS, Orange County and its partners have, for many years, received comment on and
studied issues involved in remediating adverse environmental conditions and other adverse
conditions that may exist in the Rogers Road Area near the Orange County Landfill (the
"Landfill"); and
WHEREAS, Orange County and its Partners have been presented, through the years, with
evidence purportedly linking the operations of the Landfill to adverse environmental conditions
and other adverse conditions in the Rogers Road Area; and
WHEREAS, in spite of Orange County and its Partners' best efforts, solutions to address
adverse environmental conditions and adverse harmful conditions in the Rogers Road Area
have failed to materialize to the extent necessary to properly address concerns and conditions
of importance to the Rogers Road Area residents; and
WHEREAS, Orange County and Chapel Hill and Carrboro residents who live in the Rogers
Road Area have endured, among other things, adverse environmental conditions, poor living
conditions, landfill related odor conditions, contaminated drinking wells and failing septic
systems for many years; and
WHEREAS, Section 4 of the Agreement authorizes Orange County to increase the Mixed Solid
Waste Tipping Fee upon thirty (30) days notice to its Partners so long as the increase does not
exceed ten percent (10%); and
WHEREAS, Section 4 of the Agreement reserves unto Orange County the absolute right to
adjust any and all rates and fees for the purpose of, among other things, paying "costs of
remediating any adverse environmental conditions at any time existing with respect to the
System"; and
WHEREAS, Section 7 of the Agreement authorizes Orange County and its Partners to finance
from system funds community benefits for the neighborhoods surrounding the Landfill;
NOW, THEREFORE, BE IT RESOLVED, that the Orange County Board of County
Commissioners hereby provides NOTICE to its Partners pursuant to Exhibit B of the
Agreement that it will, effective July 1, 2011 increase the Mixed Solid Waste Tipping Fee by
five dollars per ton of delivered solid waste to a total of $57 per ton for FY 2011-12.
BE IT FURTHER RESOLVED, that the Orange County Board of County Commissioners
hereby exercises its right to increase the Mixed Solid Waste Tipping Fee to pay for costs of
remediating adverse environmental conditions in the neighborhoods surrounding the Landfill
and requests its Partners endorse the use of this fee increase revenue, should sufficient funds
remain following the environmental remediation, to remediate limited non-environmental
conditions and or provide community benefits to the neighborhoods near the Landfill.
This the 26 day of May, 2011.
A motion was made by Commissioner Foushee, seconded by Commissioner Yuhasz to
adjourn the meeting at 11:21 p.m.
VOTE: UNANIMOUS
Bernadette Pelissier, Chair
Donna S. Baker, CMC
Clerk to the Board