HomeMy WebLinkAboutMinutes 06-09-2011 APPROVED 9/8/2011
MINUTES
ORANGE COUNTY BOARD OF COMMISSIONERS
BUDGET WORK SESSION
June 9, 2011
The Orange County Board of Commissioners met for a Budget Work Session on Tuesday,
June 9, 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 County Manager Gwen
Harvey, Interim Assistant County Manager Michael Talbert and Clerk to the Board Donna S.
Baker (All other staff inembers will be identified appropriately below)
1. FY2011-12 Fire Districts' Tax Rates
Frank Clifton introduced Paul Laughton, Budget Analyst that worked closely with the
fire districts this budget season. Four departments have requested a fire tax increase. He
made reference to Attachment 1 and the shaded tax rates, which were the four that have
requested an increase. These are New Hope, Orange Grove, Orange Rural, and White Cross.
New Hope:
Will Bernard, Board of Directors President, said that this increase would generate an
additional $110,000 for the district. The request is in response to a $200,000 deficiency and
this is due to about a $50,000 loss of annexation funding. The second component of about
$51,000 is an increase in operating expenses, which includes a $30,000 increase in total
personnel costs. He said that the fire department made a commitment to fund two full-time
paid staff at the station 24/7, 365 days a year. A large portion of the increase is due to
overtime payments.
Commissioner Hemminger asked if the other districts are keeping full time staff around
the clock. She said that Orange County has one of the higher tax rates.
Fire Chief Mike Tapp said that there is a combination of staffing throughout the County.
Some departments are volunteer departments and some departments are a combination of
paid staff and volunteers.
Commissioner Hemminger asked what would happen if they did not get the increase.
Mike Tapp said that they would have to cut back on operational costs, which would be very
difficult because of inflation of fuel and vehicle maintenance. He said that he is hesitant about
reducing the work force because there are only two people at the station during the day for 24
hours, supplemented by the volunteers.
Commissioner Yuhasz asked how much of an impact covering I-40 had on this
department. Mike Tapp said that interstate calls are usually 1-3 hours and this puts a strain on
the department.
Commissioner Yuhasz said that generally the volunteer fire departments have an
annual meeting with the residents. He asked what New Hope does to publicize these
meetings to the public.
Mike Tapp said that they advertise in the newspaper, place it on a message board in
front of the station, and send emails.
Will Bernard said that each year they have a Christmas tree sale and an annual
breakfast to invite their constituents into their facility and to interact with them.
Commissioner Gordon asked about the size of the area New Hope served before
Chapel Hill and Carrboro annexed, and if they did not have to serve those areas, if there would
be any reductions in costs.
Mike Tapp said that for Chapel Hill, these are areas behind Chapel Hill Station #4 and
Weaver Dairy Road Extension. Carrboro's annexations are in the Homestead Road and
Rogers Road area. Historically, this has been a low-volume call area.
Will Bernard said that even though they have lost area and may continue to lose
additional area, there are certain costs that are not response based. The fire district will still
have to maintain the current vehicle fleet.
Commissioner Jacobs asked about the protection classification grade. Mike Tapp said
that it is Protection Class 9-e. A letter has been submitted to the North Carolina Department of
Insurance requesting that the grade of the district improve one insurance grade. He hopes to
lower the rating to at least an 8 or a 7. This could save money for homeowners in their home
insurance. He said that it is important that a rate increase be offset by a decrease in
insurance.
Chair Pelissier agreed about the grading issue and the decrease in insurance.
Orange Grove:
President of the Board of Directors Bill Waddell and Fire Chief Tommy Holmes were
present. This is on page 20-4.
Paul Laughton said that this district is asking for a %2-cent increase going from 3.58
cents to 4.08 cents per hundred dollar valuation. This increase would generate approximately
$37,000. He said that on the attachment it lists how much one cent generates for each of the
districts and also fund balances.
Bill Waddell explained the requested increase. This district needs a new roof on the
fire station and also additional radios. There is already a new roof on the station because it
was beginning to leak, so they took out a loan. This increase is to pay back the loan. He said
that this is not a one-year request because they have deferred a turnout gear program and
they will be resuming this with the increase. Also, more radios will need to be purchased.
There has also been an increase in the worker's compensation insurance and this is doubling.
He said that they have not sent the letter to the Department of Insurance for ISO, but they are
working on this now.
He said that there was a claim made several weeks ago that there might be a decrease
in administrative costs because of Orange County Emergency Services. He said that this is
not true, or is unlikely. He said that this could be discussed in September at the proposed
meeting. He said that these are his own comments and are not held by all fire district
presidents. He said that Orange Grove Fire District has a diverse membership and the
cooperation with other fire departments has increased over the years. He said that the current
state of emergency services is that they are hostile to volunteer organizations. He pointed to
restrictions placed upon South Orange Rescue Squad, which, in his view, will cause the
ultimate destruction of that organization. He quoted the Director of Emergency Services as
saying, "we only like volunteers who work for us." He said that the administrative practices of
Emergency Services are not quite in line with what they do at Orange Grove. It is his belief,
based on conversations with staff that the two ambulances that have to be replaced because
of accidents were brought about by people who were either untrained or over-worked.
He said that there is excessive turnover at Emergency Services. He said that any
organization that exceeds 50% turnover in one year has to have problems. Because of the
turnover, there is excessive overtime, which drives up costs. He said that the resignation of
the Fire Marshal was due to conflict between the individuals and this position has not been
filled. This makes the firefighters'job more dangerous.
He made reference to the 800 MHz radios and said that these do not do the full job and
they have to keep their old radios. He said that the volunteers cannot talk on these new radios
because the system does not work properly. He asked the County Commissioners to please
get this fixed.
Commissioner Jacobs asked about the ISO rating and Bill Waddell said that it was a 9-
e and he hopes to get it down to a 7.
Commissioner Yuhasz asked what the district does in the way of outreach to their
constituents. Bill Waddell said that they have different outreach programs throughout the year
and they advertise in papers, a message board in front of the station, and flyers. They have
talked about using County resources for email, but those opportunities have not become
available yet.
Commissioner Yuhasz said that the County needs to provide resources to all
departments to assist them in their outreach.
Tommy Holmes said that he attends a lot of homeowners' association meetings, when
he is requested to attend, and he meets a lot of people.
Commissioner Jacobs suggested putting notices of quasi-governmental meetings on
the County website.
Orange Rural:
This information is also on page 20-4. Those present were Fire Chief Jeff Cabe,
President Jeff Roberts, and Vice-President Matt Heinz.
Paul Laughton said that there was a one-cent tax increase that was approved for this
district for 2010-11 only for the construction of fire station #3. In discussing the budget, the
Board of Directors mentioned that they were having a difficult time going back to the 5.36
cents. The district has requested a '/4-cent increase to go to 5.61 cents for 2011-12. The
district also requested an amount from the available fund balance of $60,000. This is included
in the Manager's Recommended Budget.
Jeff Cabe said that they saw a double increase in their worker's comp this year and the
health insurance premiums also increased. The diesel fuel expenditures also increased.
Based on all of this, there was a shortfall in the budget. The ISO rating is class 6. He said that
there is a salary adjustment in their budget. Last year they phased in a $2,000 increase and
this year they are doing the same. Market studies have shown that this department is $7,000
in pay for its employees. He said that it takes a lot to train a firefighter, EMT and paramedic.
The district has been short staffed since January because of vacancies created by people
leaving to go to higher paying departments. This is the reason for the salary increases.
Commissioner Yuhasz asked what kind of public outreach Orange Rural provides to
their constituents. Jeff Cabe said that all of the board members are citizens of the district and
they talk with residents to try and drum up interest. The typical annual meeting brings in about
60-70 people.
White Cross:
The Board of Directors President is Tony Blake, the Fire Chief is Jerry Lloyd, and the
Assistant Fire Chief is Phillip Nasseri. This information is on page 20-5 of the budget
document. The district is asking for a one-cent tax increase from 6 cents to 7 cents. This will
generate approximately $37,000 for the district.
Chief Jerry Lloyd said that the reason for the increase is to provide the funding for a
6,000-square foot addition and a 2,800 square-foot renovation to the existing station. He said
that the building was built in 1986 and has never had any renovations. The existing facility is
unable to house all of the trucks, has no storage areas, and the training room capacity is
inadequate to hold all of the members. The new addition will allow all trucks to be housed in
one building; it will have storage areas for equipment, and will provide a clean air room. This
will bring the building up to code for ADA and provide offices, a radio room, and a training
room. He gave the history of the strategic plan adopted in 2002 by the district. The ISO rating
is 7. An architect firm has been hired to oversee any building additions with a cost of
$600,000, with a possible start time of fall 2011. If they can proceed now with this building
project, they are estimating a possible 35-40% savings or cost avoidance because of
decreasing building costs.
Commissioner Gordon asked if the addition has anything to do with expanding beyond
the current district. Chief Lloyd said that they are not actively seeking Damascus fire district
but he has heard the discussion about the possibility of having all of the County fire districts
protected by an Orange County Fire Department. He said that they have two small areas that
are beyond the six miles, which is a critical area for homeowners' insurance. There are two
slivers of property that are along the eastern district, which borders Carrboro and Damascus
Fire District. The long-range plan is to build a second station on the eastern side. This station
would be more than adequate to cover Damascus Fire District for a good portion of its six
miles. If the County is interested in that, then they will discuss it.
Commissioner Jacobs asked about the status of conversations with UNC as far as
paying more for fire protection. Chief Lloyd said that UNC has some buildings in the district
that have no increase of compensation. This year, there was a letter that said that UNC would
increase the compensation to Chapel Hill and all of the rest of the fire departments in the state
would not receive an increase, and White Cross would get a 10% decrease.
Commissioner Jacobs asked for a copy of this letter.
Tony Blake said that the USDA has some very favorable loan money now to build fire
departments. Taking advantage of that low interest would be a savings in the long run for the
taxpayers.
Commissioner McKee said that, having experience with Caldwell Fire Department and
paid staff versus volunteers, this accounts for a great deal of the disparity between the costs at
these volunteer fire departments. He said that it does cost more to run with paid staff versus
volunteer staff.
Commissioner Jacobs made reference to the comment from Bill Waddell about there
being no fire marshal and said that at the May 26th meeting, the Manager told the Board that
the Emergency Services Director is the Fire Marshal now.
2. Pay and Benefits Presentation
Frank Clifton said that there are no pay increases proposed for County employees
except for the fact that there are a few positions that are below the living wage and those will
be increased. The County living wage is determined to be $10.81 an hour. The 401(k) has
been maintained for this year and there is a %2-percent increase in the State retirement system
for local government employees. The significant issue for the County is the health insurance
costs, which are increasing significantly.
Interim Human Resources Director Katherine Cathey introduced Benefits Manager
Diane Shepherd, Tracy McCarty with Mark III, the benefits consultant, and Employment
Manager Jewel Ray. She made a PowerPoint presentation.
Pay and Benefits
BOCC Budget Work Session
June 9, 2011
Work Session Purpose
- Consider and provide direction on employee pay and benefits for FY 2011-12
- Key components of the recommended employee pay and benefits plan include:
o No increases in base salary (continue at FY 2008-09 levels).
o Funding for up to a 15% health insurance increase.
o Increasing the Living Wage to $10.81 per hour.
o Implementing recommendations of the FY 2010-11 internal classification and
pay study.
o Extending the hiring freeze and voluntary furlough program.
o Continuing the $27.50 per pay period County supplemental retirement
contribution for general employees.
o Increasing the mandated County contribution to the LGERS.
Past Actions: FY 2010-11 Pay and Benefits Plan
- No cost of living increase or in-range salary increase.
- Funded up to 7% health insurance increase.
- Maintained the Living Wage at $10.12 an hour.
- Implemented recommendations of the FY 2009-10 internal classification and pay study.
- Implemented a 6-month hiring freeze (previously 12-months) and eliminated positions.
- Extended the voluntary furlough program.
- Extended the suspension of the County contribution to non-law enforcement
employees' 401(k) accounts (reinstated January 1, 2011).
Cost of Living Increase and
In-range Salary Increases
- The County's cost for employee and retiree health insurance and retirement system
contributions will increase substantially in FY 2011-12.
- Personnel services comprise the largest percentage (nearly 50%) of the County's
operational expenditures.
- No salary increase recommended for FY 2011-12.
Employee and Retiree Health Insurance
- Potential 18% to 30% premium increase, effective January 1, 2012 to retain the same
level of coverage.
- Recommended funding for up to a 15% increase.
- Must consider changes in the plan design (co-pay, deductible, or co-insurance) or
increasing the premium cost for employees to better manage escalating health care
expenses and stay within budget.
- Actual plan designs, premium structure and total cost will be determined in September
2011 through the annual renewal process.
Orange County Living Wage
- Recommend first increase in the Living Wage since 2007 from $10.12 to $10.81.
- Affects about 120 temporary employees.
- Consistent with BOCC policy.
- Necessary to keep pace with continuing increases in the Federal poverty guidelines.
- Increase based on cost of living data from Orange, Durham, Wake and Alamance
counties.
- 2010 Orange County Region Cost of Living index is 100.6% (.6% above the national
average).
Annual Classification and Pay Study
- In 2009 the County began reviewing one third of the County's classifications annually.
- FY 2009-10 was the first classification study
o The review included 96 classifications, affecting 236 employees, from the
following occupational groupings:
■ Clerical, Administrative, and Related
■ Labor, Trades, Labor Supervision and Related
■ Parks, Recreation, Leisure Services, Library and Related
- FY 2010-11 the County conducted the second annual classification review.
o The review included 102 classifications, affecting 309 employees, from the
following occupational groupings:
■ Finance, Data Processing, Tax and Related
■ Planning, Inspections, Economic Development and Related
■ Public Safety and Related
- Expected Outcomes from an annual classification review include
o Reinforcement of existing position classification
o Recommendation for changing classification
■ Reclassification
■ Classification Title Change
■ Adding and Deleting classifications from the County classification system
- Recommendations include:
o Funding of $60,000 for position reclassifications
o Approval of the updated Orange County Classification and Pay Plan
Six-Month Hiring Freeze
- Recommend extending the six-month hiring freeze that was implemented in FY 2010-
11.
- Total savings from the hiring freeze is projected to be more than $1.5 million.
- Places additional demands on the existing County employees.
Voluntary Furlough
- Recommend extending the voluntary furlough program that was initially implemented in
FY 2009-10.
- Anticipate cost savings of $30,000 in FY 2011-12.
- Requests for a voluntary furlough must be approved by an employee's Department
Director.
County Contribution to Retirement Benefits
- The General Assembly increased the employer contributions to the LGERS, effective
July 2010 and again July 2011.
- The employee contribution remains the same at 6%.
- Effective January 1, 2011, the County reinstated the $27.50 per pay period ($715
annually) 401(k) contribution for general employees and provided a choice of three
supplemental retirement plans.
- For each law enforcement officer, the County makes the 5% of salary 401(k) plan
contribution required by State law.
Summary
- Focus is on retaining a talented workforce that is committed to serving the residents of
Orange County.
- Employees are very concerned about pay and health insurance.
- Preserving employee pay and benefits continues to be a priority.
- Employees understand the fiscal situation and have been cooperative and supportive
through three difficult years.
Tracy McCarty from Mark III made a PowerPoint presentation.
Medical Plan PerFormance And Projections
Medical Plan Renewal — Overview and Results
- The NCACC did not charge the County the required rates (underfunded).
- The Orange County medical plan has performed poorly.
- The plan was sent to out for bid.
- Current plan initial proposals came back with 27% - 31% increases.
- Two firm fully insured quotes came back from both Cigna and United Healthcare.
- BCBS quote was non-competitive: illustrative only. Claims data through September
required for final rates.
Plan Considerations
- Current plan running over 100% of the amount of premium paid.
- Plans costs will continue to escalate in the next year without changes.
Medical Plan Renewal — In Summary
- Plan modifications mitigate the 2012 increase and build in stability for 2013.
- Plan changes are within the FY 2011-12 budgeted amount.
- Employee education is required because all employees will be affected by the change
in insurance carrier and/or plan design.
Tracy McCarty went through the quotes from the firms. She said that before the
renewal was received, they were projecting about a 33% increase on the current plan. There
were some recommendations on a PPO, high-deductible, HSA plan that should bring the
increase to around 6-7%. However, CIGNA, which manages the plan for the NCACC, came in
at about 27-28% on the current plan with no changes. If the alternate plans are put in, CIGNA
came in at a 10% increase.
United Healthcare reduced the current plan even more and came down to about an
18% increase over the current plan if the plans were left exactly the way they were. If the
alternate plans were offered, the increase is only 4.5%.
Blue Cross Blue Shield offered a PPO option only with a 31% increase. These rates
are not even firm. The PPO and HSA combination is a 15-16% increase.
If the current contribution strategy is in place, paying the same percentage, the average
cost is $851.75 per month per employee, which includes dependents. This is the CIGNA
alternate plans. The United Healthcare plan is $810.46 per month per employee.
These plan changes will require a tremendous amount of education with the
employees, especially for the HSA component. Mark III offers education on this process.
Frank Clifton said that this is for information only right now.
Commissioner Gordon said that she would like some written information on the HSA
(Health Savings Account).
Commissioner Jacobs said that he would like to renew his request to survey the
employees about having a 401(k) contribution versus health benefits.
Commissioner McKee said that there was a proposal for a one-time payment to
employees in December 2010. He asked if this rationale was no longer valid as far as a one-
time payment.
Frank Clifton said that it is an option of the Board of County Commissioners. He said
that each employee is going to have a different opinion on the 401(k) versus health benefit
issues. There was discussion with employees about a bonus and it is still available during this
budget process.
3. Outside Aqencies: Recommended Allocations FY2011-12
Assistant County Manager Gwen Harvey said that she is representing the outside
agencies and she thanked all of the staff and agencies that made the process a success.
She reviewed the process.
BACKGROUND:
County Management recommendations for Outside Agency Funding begins on page 29-1
in the Proposed Operating Budget Document
In December 2010 the BOCC, after extensive review in a fall work session, adopted a set of
guiding principles to guide County Management in evaluating and proposing recommended
funding allocations in subsequent budget years. These guidelines reflected BOCC community
partnership interests along with continuing concerns for strong performance, non-duplicative
efforts, collaborative pursuits, and safety net considerations.
The BOCC policy guidelines are provided in Attachment 1 to this agenda abstract.
To facilitate coordinated and objective review of the Outside Agency applications, application
evaluation was assigned according to affiliated County Department management team and its
advisory board/commission. Each used the approved Outside Agency Evaluation Scorecard
to determine the raw score and provide additional narrative to support their findings and
conclusions (not funding amount) to Financial Services and County Management.
Team assignments are provided in Attachment 2 to this agenda abstract. A diverse team of
non-management County employees was organized and reviewed applications that did not
naturally align with any particular County Department and entailed general community services
to Orange County residents. Their findings and conclusions (not funding amount) was also
shared with Financial Services and County Management.
The Proposed Annual Operating Budget Document also includes the following attachment:
- Historical funding by Orange County, additional financial support coordinated
through individual Orange County Department operating budgets, and In-Kind
Contributions provided to an Outside Agency by Orange County in lieu of direct
payment
- Outside Agency Revenue analysis: Various means of financial support per
Agency
- Outside Agency Descriptions and Recommended Allocation
FY 2011-12 is the second fiscal year in a row in which contributions for Outside Agencies was
recommended at substantially reduced amounts. Outside Agencies are informed each
December at the Organizational and Orientation meeting prior to application submission of
BOCC — established policies, guidelines, and perspectives, particularly an overall funding
amount not to exceed the funding amount of the previous fiscal year.
Outside Agencies are notified of the County Management recommended allocations as soon
as the Proposed Budget document is released to the BOCC and general public. Agencies
recommended for a significant variance are especially contacted to assure their knowledge
and welcome their participation at one of the budget public hearings.
Notable chanqes/trade-offs contained within County Manaqement recommendations
impactinq relations between Outside Aqencies and partner County Departments are
detailed below:
Senior Care of Orange County Inc. (SC of Orange County, Inc.):
The Department on Aging recommended budget contains approximately $25,000 in new funds
to cover all congregate meal expenses associated with both senior centers and the adult day
health center. Previously, SC of Orange County, Inc. contracted through the Department on
Aging for senior meals and then reimbursed the Department. This method allows the
Department to gain efficiencies and manage overall costs through the approved vendor. The
annual Home Community Care Block Grant generally covers, with senior donations, the cost of
congregate meals, but as vendor costs increase and with the end of federal stimulus dollars,
closer coordination and control for senior meals will be even more important.
The Social Services Department recommended budget contains approximately $22,500 in new
funds to provide senior and family choice and flexibility in the "purchase" of adult day care
services and related support under both the social and health models. In coordination with
Aging, Social Services can better control and direct County dollars through "purchase"
agreements with either SC of Orange County, Inc. (central/northern Orange) or the Charles
House (southern Orange), including any opportunities for family participation in cost for
service.
Hillsborough Youth Athletic Association (HYAA):
The Social Services Department recommended budget contains approximately $10,000 in new
funds to allow youth/parent/guardian to select any athletic and recreational programs within
Orange County for youth participation, including HYAA. Eligible youth will receive a County
scholarship or subsidy accordingly. Priority will be given to youth in foster homes or with
mothers in Work First. This provides choice and flexibility based upon need, without direct
financial support directly any one agency or organization within the County.
Orange County Congregations in Mission (OCIM) — Hillsborough:
An increase of $5,000 above their FY 2010-11 approved allocation is recommended to provide
supplemental support for home delivered meals and food pantry to frail seniors, the disabled,
and families with food insecurity brought on by budgetary emergencies. OCIM has a history of
being a strong collaborator and ally with Social Services in extending and supplementing relief
to individuals and families in need.
Inter Faith Council (IFC) — Chapel Hill:
An increase of $5,000 above their FY 2010-11 approved allocation is recommended
specifically to supplement IFC in insuring and/or increasing transitional housing at Home Start
to client referrals from the Social Services Department. IFC administers Home Start, a
program for women and families seeking refuge from homelessness including domestic
violence and abuse.
Joint Orange and Chatham County Community Action Agency (JOCCA) — Pittsboro
The recommended allocation for JOCCA steps down an additional $20,000 from FY 2010-11
to continue to decrease Orange County general fund support for agency administrative costs
versus direct services to Orange County residents.
FINANCIAL IMPACT:
The BOCC appropriated over$900,000 in financial assistance to Outside Agencies in FY
2010-11. The proposed funding for FY 2011-12 totals $779,000, a decrease of $123,000.
The BOCC as part of its budget deliberations determines the final total amount to be provided
to Outside Agencies and the specific funding by Agency. Approved Agency allocations are
administered through an annual performance agreement and allotments distributed by the
County on a reimbursement basis through the fiscal year.
Commissioner McKee made reference to the HYAA and asked if there was any
discussion about the use of County-owned fields and Frank Clifton said that there are
discussions about other arrangements for field use. The staff is working on a cooperative
agreement, similar to the one with the YMCA.
Dave Stancil said that he has been meeting with HYAA to talk about these issues.
Commissioner McKee said that he hoped the County would work with the HYAA to let
them use the County's fields, since the leagues are being integrated with HYAA's.
Commissioner Jacobs said that there is institutional resistance to not work with outside
agencies and he wants the Board to overcome this. He said that the County tends to make it
difficult for some organizations to work with it.
Commissioner Jacobs said that he would like to give Freedom House its full request,
which is only a $2,000 increase. He would also like to give Planned Parenthood its full
request, which is under vicious attack. He would also like to fully fund the Family Violence
Prevention Center.
Commissioner Jacobs said that he would like to leave Charles House at the same level
as last year. He also asked why the County would not want to put $500 to Meals on Wheels
because it is a great program. He asked if there would be a significant notice given to the child
care center that the Northern Human Services Center will be closing.
Frank Clifton said that there are a lot of day care facilities in the County and this is the
only day care that Orange County provides everything for. This puts other daycares at a
disadvantage. The building is a load on County government.
Chair Pelissier said that the Board had discussed this about the notice and they all
agreed.
Commissioner Gordon said that she wanted to flag the Child Care Services Association
and keep them at their current level of $18,000.
Commissioner Yuhasz said that he supported those agencies that Commissioner
Jacobs recommended. The County Commissioners need to make a decision about the
Northern Human Services Center property and give notice to this facility as soon as possible.
Chair Pelissier asked if there were any Manager's recommendations that were in
conflict with advisory boards.
Assistant County Manager Gwen Harvey said that only one stands out in her mind and
that was the ArtsCenter. There is some instability in the organization and the application was
very late. It was not clear what the ArtsCenter wants to pursue in the application. The
employee committee did not see a basis and could not make a recommendation. The
Manager's recommendation was to sustain the $3,000.
4. SportsPlex
Financial Services Director Clarence Grier said that the recommendation for this fiscal
year is $3.2 million. There would be $600,000 transferred from the General Fund for debt
service for the building. He explained the services that the Sportsplex provides. The
budgeted revenues for this year are 5.9% more than last fiscal year. He introduced General
Manager John Stock.
Commissioner Gordon asked about the abstract for this item because what the County
Commissioners had was the actual budget.
Clarence Grier said that the Sportsplex is considered a department of the County. The
budget is on page 34-14.
Frank Clifton said that they did reorganize the Sportsplex advisory group. Dave Stancil
is overseeing this function.
Commissioner Jacobs asked if there was a continued increase in use of the Sportsplex
and the discount for County staff and veterans.
John Stock said that he has not seen additional veterans take advantage of this, but the
number for employees has remained stable.
Commissioner Jacobs asked if they advertised for veterans and John Stock said that
they advertised through the senior center. He said that he might do a separate article in the
newsletter to create more awareness.
Commissioner Jacobs said that there is someone at Social Services who is tasked with
working with veterans and she could have this information available also.
Commissioner Hemminger asked how much longer there was debt service on this facility
and Clarence Grier said ten more years.
Commissioner Gordon asked for a breakdown on how many people that utilize the
Sportsplex are citizens of Orange County.
John Stock said that it is in excess of 90%.
5. Discussion of County Department's FY2011-12 Budqet Requests
Paul Laughton said that the three main things impacting the Personnel Services section
of the budget include increase in health insurance of 7% (effective January 1St through
December 31 St), retirement increase of 6.96%, and the 401(k) that was put in again starting
January 1St. These three areas impact the General Fund about $1.2 million.
• Tax Administration- Paul Laughton reviewed the highlights on page 36-1.
The total budget is $2.3 million, which is an increase of $115,000 for next year. The
budget includes funding a new position, Business Personal Property Appraiser effective July
1St. There is some revenue recovery expected.
There is a reduction in overtime of about $15,000. There is an increase in Personnel
Services.
There is also an increase of $15,000 in contract services in the Revaluation Fund for
appraiser contractors. The County transfer to the Revaluation Fund has increased $100,000
for next year.
Commissioner Yuhasz said that last year the County contracted for some business
property listings. He asked how this works with the business personal property.
Tax Administrator Jenks Crayton said that the outsourcing of these business personal
abstracts was necessitated by a lack of staff to do it in house. Once the new appraiser is on
staff and fully trained, the contract will be dropped.
Commissioner Yuhasz asked if the PIMS system was fully implemented now.
Jenks Crayton said that software conversions are difficult and there were three systems
transitioning at the same time.
Clarence Grier said that more money might have to be put into Contract Services as
they move through the revaluation process.
• Register of Deeds
Paul Laughton said that this was on page 31-1. Total expenditures are about
$870,000, which is a decrease of $38,000. The non-permanent personnel were eliminated for
a savings of $12,000.
Register of Deeds Deborah Brooks thanked the Board and staff for their support.
• Animal Services (including Fee Schedule change requests)
Paul Laughton said that this was on page 4-1 and also Appendix B for fee changes.
Total expenditures are $1.6 million, which is an increase of $60,000. There is a reduction in
overtime of $2,700 based on the trend of reduction to on-call services.
Revenues are increasing $10,000. The department is requesting a fund balance
appropriation of about $8,000 to cover animal kind and litter control expenses.
Animal Services Director Bob Marotto said that the staff did a tremendous job last year
considering the budget. He thinks that quality services have been sustained. He recognized
the staff.
Commissioner Jacobs asked about the inoperable reclaimed water system and asked if
this has been a problem since the building opened. Bob Marotto said that it was successful
until the fall of 2010. There was some corrosion of copper piping, so the reclaimed water was
discontinued. Since then, they have been working on solving this problem.
• Asset Management Services (including Fee Schedule change request)
Paul Laughton said that this is on page 5-1. The expenditures total $6.4 million, which
is a decrease of $90,000. He said that the Purchasing agent of the department has been
moved to Financial Services, so the budget will be reflected in that way. There is also a
reduction of an Office Assistant II position in the Administrative division. The person will be
assigned to another vacant position in the County. The operation costs include a reduction of
$350,000 in worker's compensation and an increase in operations for unemployment benefits
of $25,000.
Asset Management Director Pam Jones said that with the worker's compensation, they
are on a high deductible plan. She said that she has requested a new custodial position and
last year they did away with the Orange Enterprise personnel. The staff is starting to show
some fraying.
Commissioner Jacobs asked about 112 North Churton Street. He said that it would
help to invite Preservation North Carolina to come to Hillsborough and work out something for
this building. It seems that there are misconceptions.
Pam Jones said that there is some room for interior space to be taken away from that
contract.
• Cooperative Extension
Paul Laughton said that this is on page 10-1. Total expenditures are about $390,000,
which is a decrease of $23,000. Effective January 1St of this year, all positions became State
employees and are now budgeted as contract personnel per the agreement with the State.
The County will continue to pay the same percentage share of personnel costs. The increase
in operations is due to the Breeze Farm being moved to operations.
Carl Maytac said that he wanted to address the transition from the County to State
employees. He wants to make sure the Board and the public realizes that this in no way
diminishes the commitment of Cooperative Extension to serve the County in every way
possible.
• DEAPR-Department of Environment, Agriculture, Parks and Recreation (including
Fee Schedule change requests)
Michael Talbert made reference to the green handout and the changes in the page
regarding fee schedules to add to the budget book.
The budget is $2.8 million, which is a decrease of $67,860 from last year. The Fairview
Park has been recently opened as well as the Jones Creek Greenway.
DEAPR Director Dave Stancil recognized his staff. He said that Durham County was
recommending a reduction in funding to Little River Park in the amount of $8,000 and
historically, Orange County would do the same. This will not be certain until Durham County
adopts its budget in June.
Commissioner Foushee asked about the request for a pickup truck for$13,000 and if
this was a replacement. Dave Stancil said that a number of vehicles need to be replaced.
There are other possibilities besides the $13,000, so he is trying some other alternatives.
Commissioner McKee asked about matching the reduction and the effect on Little River
Park.
Dave Stancil said that the caretaker responsibilities would be increased and there may
be a reduction of one weekday at the park.
Discussion ensued about the seasonal staff for this park.
Commissioner Jacobs said that he could not support someone working 35 hours a
week for 12 months and not getting any benefits.
Commissioner Jacobs asked for a cost differentiation for the seasonal person with 35
hours and 40 hours with benefits.
Commissioner Foushee said that she does not want to go down this road of hiring
people for 12 months at only 35 hours per week.
Dave Stancil said that the intent was to make it more efficient how they did athletics
seasonal assignments.
• Housing, Human Rights and Community Development
Paul Laughton said that this was on page 22-1. This budget is flat compared to FY
2010-11. This is fully funded with HUD funds, except for some of Tara Fikes' salary for her
role in some non-Section 8 housing activities. The HOME program total expenditure budget is
$785,000, which is a reduction of $110,000 in comparison to FY 2010-11. This is itemized on
page 22-7. This has an Orange County match of $56,000. The Homelessness Partnership
program has a budget of $7,000 with an Orange County match of $27,300.
The total general fund contribution to affordable housing programs totals $315,434.
This is shown on page 37-1 in the Transfers of Funds section.
• Human Resources
Paul Laughton introduced Katherine Cathey, Interim Human Resources Director. The
budget for the coming year is $691,000, which is an increase of $8,480 or 1.23%. Much of this
is related to the personnel items discussed earlier such as the retirement and 401(k).
Commissioner McKee made reference to employee relations and asked if there has
been an increase in comments in exit interviews about dissatisfaction over the pay scale.
Katherine Cathey said that she has seen a lot of increase in these types of comments
during the exit interviews and more employees are leaving for higher paying jobs.
Chair Pelissier asked if these comments were related to the public sector or private
sector and Katherine Cathey said that she has seen both.
• Library Services (including Fee Schedule change requests and Mobile Library
presentation)
Michael Talbert said that the budget this year is $2.1 million, which is a substantial
increase from the past of $753,000. One of the large components of this is the mobile book
service, which involves the purchase of capital equipment of $65,000 and additional operating
funds to make it work. Also, non-departmental items have been added back to the Library
budget. These involve $250,000 for the contribution to the Chapel Hill Library; $18,097 for the
Hyconeechee Regional Library; and $700 to the Mebane Library.
Library Director Lucinda Munger made a PowerPoint presentation.
Mobile Library
To address Rural Library Services in Orange County
Snapshot of Main Library and Cybrary Use by Rural Residents (table)
Rural Options presented in September 2010 Worksession
- Agenda Item Abstract: http://www.co.oranqe.nc.us/OCCLERKS/1009142.pdf
o Library Kiosks
o Mobile Library Services
- BOCC Meeting Minutes for further information:
http://server3.co.oranc�e.nc.us:8088/weblink7/DocView.aspx?id=20309
Mobile Services
- Public Internet connection
- Borrowing of Books, DVDs, Books on CD Magazines
Snapshot of Mobile Unit
- Step-Van Style Book Mobile 20 — 30 feet in length
- Approximately 4 public computers
- Book capacity is approximately 2000 volumes
- Budget includes a metal carport for storage at the county Public Works site
- Scheduled to make two 2 hour stops 4 afternoons each week and alternating
Saturdays, with one day for vehicle maintenance and material updates
Standard Mobile Service Criteria
Based on ALA 2008 Mobile Services
http://www.abos-outreach.orq/2008BookmobileGuidelines.pdf
- Stop provides ample room to maneuver and park the bookmobile on a level, solid
parking area
- Stop provides maximum accessibility and safety for customers and staff; and sufficient
parking area for patrons
- Provides service to population centers that exist a significant distance from the Main
Library, at least 15 minutes
- Mobile Library schedule to be adapted to respond to usage of service including
circulation, door count, reference questions, and other library services
- Stop preference is given to visible locations that are community centers and / or provide
other community services
- Available Restroom for bookmobile staff and public use
Collaboration
- Met with and collaborated on service connectivity and locations with the following
departments:
o IT
o Planning
o EMS
Possible Mobile Sites
- Community Centers
o Efland Cheeks Community Center
o Schley Community Center
o Cedar Grove Ruritan Club
- Fire Stations
o Caldwell Fire Station
o White Cross Fire Station
- Parks
o Cedar Grove Park
Density Map:Attachment 1
Connectivity Test
- Library staff performed field tests using 4 laptops and mobile hotspot from Sprint and
Verizon
o Conducted tests using the Sprint hotspot on 5/5 and 5/6
o Conducted tests using the Verizon hotspot on 5/25 and 5/26
- At each site, we timed the ability of the computer to completely load and/or begin
playing:
o The county homepage (co.orange.nc.us)
o A county job posting in PDF format
o An archived BOCC meeting video from May 3, 2011
- Testing consisted of completing all three steps on each laptop in succession. When
laptop 4 was tested all previous laptops were still connected and attempting to run the
Granicus video.
Connectivity Results
- Main Library wireless was used as a benchmark for test sites because it is designed to
handle a large number of users effectively
- At certain sites, utilizing the mobile hotspot from both providers yielded:
o Limited and inconsistent connectivity
o Limited ability to stream video
o Compromised connection with the addition of more than one computer
- Verizon hotspot yielded results comparable to the Main Library wireless at 3 of 7 test
sites
- Attachments 2 & 3 provide data of testing
Connectivity Alternatives based on Collaborative Discussions with IT and Planning
- Alternative 1: Create Broadband Wireless Hotpots
o Establish business-class broadband connections and wireless routers at select
sites throughout rural Orange for$7,200 annually for 6 sites
o Requires existing coverage by service providers and cooperative agreement
with facility owners which may include rental fees
Connectivity Alternatives based on Collaborative Discussions with IT and Planning
- Alternative 2: Encourage Expansion of Private Sector Cellular Service
o Relies on private providers siting towers in rural Orange
o Extent of impact will depend on the location of new towers
o Additional information presented by Planning at May 17, 2011 BOCC meeting:
http://www.co.oranqe.nc.us/OCCLERKS/1105177b.pdf
Connectivity Alternatives based on Collaborative Discussions with IT and Planning
- Alternative 3: Expand County Network through Point-to-Point Wireless
o Cooperative agreements with the NC Highway patrol, Town of Hillsborough,
Hillsborough Historic Commission and other bodies must be established
o Requires $100K IT capital and $10K in annual IT maintenance per tower, and a
minimum of 12 months to implement
o Dovetails with expressed need for improved public safety communications
Mobile Service Recap
- Capital investment for Mobile unit of $266,500
- Limited services and availability
- Consistent connectivity concerns
- Annual investment $128,700
- Additional mobile library photographs & Connectivity detail from testing :
http://www.co.oranqe.nc.us/library/mobilelibrary.as�
Commissioner Yuhasz asked about the annual circulation at the old Cedar Grove
branch and Lucinda Munger said less than 1,000.
Commissioner Gordon asked about the expected number of patrons for the mobile
library.
Lucinda Munger said that this is a service that has not been tried in Orange County and
the rural areas; you cannot count on a high circulation or a high patron usage.
Commissioner Gordon said that the upgrades to internet service were not included and
computer usage is an important asset that the public wants.
Lucinda Munger said that the alternatives are not included in the budget for the mobile
service. However, using air cards for each of the computers was included.
Commissioner Gordon asked if any resident surveys had been done and Lucinda
Munger said no.
Commissioner McKee said that his concerns are with the costs and the connectivity
problems. He said that with the budget constraints, he does not believe this is something that
he could support putting the County's money in at this point.
Commissioner Hemminger agreed. She said that she would like to put more money to
the Chapel Hill library. She would like to aim for something permanent in the future. She does
not see this as viable planning for the future.
Commissioner Foushee agreed with Commissioner McKee and Commissioner
Hemminger.
Commissioner Jacobs said that he is not totally willing to give up on the idea of trying to
do things such as bringing laptops to the Efland Community Center. He said that a stationary
facility is better than a bookmobile. He also agreed with Commissioner Hemminger about
taking the money for the Chapel Hill Library and setting it aside subject to the ratification of a
memorandum of understanding with the Town of Chapel Hill that is mutually satisfactory. If
there is no agreement, then no money should be given.
Commissioner Yuhasz agreed with fully funding the proposal to the Chapel Hill Library.
He suggested setting aside some of the money to increase the funding of the main library
through increased hours, etc.
Commissioner Gordon said that she listened to the Chapel Hill Town Council discussion
on this and she thinks that there has been a lack of communication between Orange County
and Chapel Hill. She said the amounts that the Town Council was given did not match what
the County was going to offer. She suggested offering an additional $93,000 as shown on the
proposed interlocal agreement and asking for a meeting to discuss this.
Chair Pelissier said that the request from Chapel Hill was for a dollar amount on the
proposed interlocal agreement and she understood that Chapel Hill did not like the proposal
that was submitted.
Frank Clifton said that the numbers came from the budget at the time. The goal was to
raise the County's percentage at the main library at the same time it was being raised in
Chapel Hill. He said that the mobile library service would be a costly process for a small
number of people. He thinks that there is an opportunity to partner with the Town of Chapel
Hill, but partnering involves coming together and agreeing and not dictating.
Commissioner Jacobs said that the County should set aside the money subject to the
approval of the interlocal agreement because there are some important points to achieve, such
as interoperability. He asked about the State's per capita average.
Lucinda Munger said that the State average is a little over$21 and it has decreased
over the past few years. The current Manager's Recommended Budget would bring the per
capita to $35.98.
Commissioner Jacobs asked if the numbers include the cuts that the legislature is
making against library services and Lucinda Munger said no. The proposed cut is 13% at this
time.
Commissioner Gordon read what is in the proposed interlocal agreement. She said
that she thinks that there is a failure to communicate.
Commissioner Foushee said she knows what happened during the negotiations and it
was directly related to what the County spent in operational costs for the main library.
Frank Clifton said that whatever dollar amount the Board chooses for Chapel Hill does
not have to be tied to a percentage. He does not think that the intent is to disagree, but the
entities were concerned with other matters.
Commissioner McKee said that Commissioner Jacobs' suggestion is good because it
has always made more sense to him to fund the Chapel Hill Library to a greater extent rather
than building another library.
Chair Pelissier asked the Board what monies would be set aside.
Commissioner McKee said that his understanding is the $250,000 and Commissioner
Jacobs said that it would also include 18% of the central Orange County library funding.
Commissioner Gordon said that $250,000 is too little and the funding should be
increased unilaterally, in the amount indicated in the proposed interlocal agreement. The
interlocal agreement could be negotiated next year. Otherwise, Chapel Hill might implement a
fee for Orange County residents that do not live in Chapel Hill. She suggested raising the
allocation another$93,000.
Commissioner Yuhasz said that no amount of money the County puts out there means
anything if the Town does not accept it. He suggested making a proposal for the Town. He
thinks that the proposal should be the amount of money that would have been provided given
the proposal made as the Board of County Commissioners understands it.
Frank Clifton suggested that the Board can discuss this further on June 14tn
Commissioner Foushee agreed with Commissioner Yuhasz and said that staff should
take this and bring it back to the Board as something to consider.
Commissioner Hemminger suggested that the Chair take this to the leadership of
Chapel Hill. `
Chair Pelissier said that she would call Mayor Kleinschmidt tomorrow.
• Social Services
Paul Laughton said that this budget is on page 33-1. The total expenditure budget is
about $18.3 million. This is a decrease overall of about $160,000. This includes moving two
social workers from the Department on Aging into Social Services. This is approximately
$110,000. The State estimate for childcare subsidy reflects a significant decrease in funds,
approximately $375,000 for next year. This decrease is on top of the decrease this year of
$650,000. The State has also reduced the percentage of funds that can be used for social
workers and administrative staff from 5% down to 4%. The department is having a difficult
time serving the priority childcare cases and has a waiting list of over 550 families. For this
reason, the budget includes $50,000 to be spent on childcare instead of emergency
assistance. The department will implement an employment and training program for food and
nutrition service recipients beginning October 1St. Existing staff will be used for this. Also, in
capital outlay, there is $20,000 to replace outdated laptops and desktops.
Nancy Coston said that the childcare crisis continues and Smart Start is being seriously
affected. The crisis in the childcare subsidy program is affecting all of the other programs.
Commissioner Jacobs said that he hoped the County could find the $50,000 to address
the emergency funding and childcare.
Chair Pelissier agreed with Commissioner Jacobs.
• Board of County Commissioners
Paul Laughton said that this budget went up very little from an operational point of
view. There is $6,000 in benefits related to health, retirement, and 401(k). This is on page 6-
1. There is $1,700 in operational expense, for a total increase of $7,700. There is a
significant increase of over$80,000 for removing items that were in non-departmental back
into the County Commissioners' budget. This is the contingency fund of $37,000; meeting
support for supplies of $4,100; and cable-casting of $40,000.
Clerk to the Board Donna Baker said that cable-casting was brought up during her
evaluation and the Board asked her to bring this back during the budget process. She had
asked if the Board wanted to do any additional meetings and she has some preliminary figures
on this. These additional meetings would include four quarterly public hearings and two
budget public hearings. The four quarterly public hearings would be $1,550 each, which would
total $6,220. The two budget public hearings would be $2,055 each. This would be a total of
$8,300.
Commissioner Yuhasz said that it is a disservice to the public if public hearings are not
cable-cast.
Frank Clifton said that another element of cable-casting those meetings is that there
would be an eternal record on Granicus.
Commissioner McKee said that the $8,000 would be better spent in Social Services.
Commissioner Jacobs said that they also talked in the Clerk's evaluation about
strategic communications. He would like to raise the issue because communication sometimes
overlaps in the Manager's Office and the Clerk's Office. He suggested having a Public
Information Officer starting in January. He said that the County Commissioners constantly
note that communication to the public is inadequate. He wants to write up a job description
and advertise.
Commissioner Foushee cautioned the Board against going against the recurring
expense until it is known whether the County can continue to fund the position. She
suggested putting in a placeholder and saving the money until the position can be sustained.
She agrees with the Public Information Officer, but she wants to be able to cover the recurring
expense.
Frank Clifton said that he agreed with a PIO, but money has always been the issue. He
gave David Hunt credit because he fills that role to an extent.
• County Manager's Office
Michael Talbert said that there is the '/4-cent sales tax on the referendum in November.
In the non-departmental budget, there is $50,000 set aside for that educational process. The
County Manager's budget this year is $712,316, which is a 1.8% increase over last year. Most
of that is in salary and benefits with a small amount in operations. In the last two years, the
FTEs in the Manager's Office have gone from 10 to 5.
• Financial Services
Clarence Grier said that the budget this year will be $1,051,660. The increase is
$179,567 and is due to two positions that were budgeted this current fiscal year for half a year
and now they are being budgeted for a full year. There is one staff vacancy.
A motion was made by Commissioner Hemminger, seconded by Commissioner
Foushee to adjourn the meeting at 11:16 p.m.
VOTE: UNANIMOUS
Bernadette Pelissier, Chair
Donna S. Baker, CMC
Clerk to the Board