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HomeMy WebLinkAboutMinutes 06-14-2011 APPROVED 9/8/2011 MINUTES ORANGE COUNTY BOARD OF COMMISSIONERS BUDGET WORK SESSION June 14, 2011 The Orange County Board of Commissioners met for a Budget Work Session on Tuesday, June 14, 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) Closed Session Additions: A motion was made by Commissioner Hemminger, seconded by Commissioner Yuhasz to add the following two closed session items to the agenda: "To consult with an attorney employed or retained by the public body in order to preserve the attorney client privilege between the attorney and the public body, which privilege is hereby acknowledged," NCGS 143-318.11(a)(3); and "To establish, or to instruct the public body's staff or negotiating agents concerning the position to be taken by or on behalf of the public body in negotiating (i) the price and other material terms of a contract or proposed contract for the acquisition of real property by purchase, option, exchange, or lease, NCGS 143-318.11(a)(5)." VOTE: UNANIMOUS 1. Accept and Approve the Five Year Capital Investment Plan and Adopt the Capital Project Budqet of$2,857,000 for the FY2011-12 County Capital Projects Fund Commissioner Gordon clarified that this will be accepted in principle only and this will be adopted at the regular meeting on June 21St Michael Talbert said that this is the Capital Investment Plan and the Board has looked at it three times at prior meetings. The plan on April 7th has decreased by $30,000. This is related to affordable housing. There are two replacement pages — pages 1 and 53. The Five- Year Capital Improvement Plan right now is $122,014,077. This is a reduction of $921,000 from the last version due to State funding and an anticipated State-approved budget. The pay-as-you-go capitals reflect the schools for the current year. The lottery proceeds have also been updated. The main item that affects the current year budget is the capital projects that appear during the first year. He made reference to Attachment 1. The current year capital from the County Capital Projects Fund is $2,857,000. He went through the various projects as shown below: Funding Sources Recommended Funding FY 2011- 12 Information Technology $500,000 Affordable Housing $170,000 Register of Deeds Automation $150,000 Roofing Projects $55,000 HVAC Geothermal-Link Government Services $618,000 Center Southwest Branch Library $650,000 Southern Human Services Center $280,000 112 N. Churton — Building Improvements $152,000 129 King Street— Building Improvements $145,000 Lake Orange Capital Maintenance $112,000 New Hope Preserve/Hollow Rock Access Area $25,000 Total Projects $2,857,000 Funding Sources Recommended Funding FY 2011- 12 Transfer from General Fund $181,106 Transfer from County Capital Projects $278,325 Transfer from County Capital Reserve $284,894 County Capital Fund Balance $137,500 Register of Deeds Fees $150,000 Available Project Balances $444,675 Debt Financing County Capital $1,368,000 Contribution from Durham and Chapel $12,500 Hill Total Funding Sources $2,857,000 Michael Talbert said that the action this evening is to accept and approve the Five-Year Capital Improvement Plan, which will be the final action on June 21St Commissioner Jacobs said that the two previous times the County Commissioners talked about the Northern Human Services Center; they talked about having a public process first before the disposition of the building, and now they are talking about doing it in reverse. Frank Clifton said that the funds are there until the Board of County Commissioners gives staff direction. Parts of the building may or may not be salvageable. He said that the funding has to be budgeted no matter what the Board decides. He said that it might be more astute to take the money they are using now to operate this facility and put it into a new building. He does not want to leave the building abandoned for too long. Commissioner McKee echoed Commissioner Jacobs' comments and said that eventually the facility may have to come down, but before then, they need to engage the community. Commissioner Hemminger said that she agreed with engaging the public but she cannot see budgeting a full year of funding that can be used for other things. The County cannot run this building the way it is running now. Commissioner Yuhasz agreed about engaging the public and going into it with the statement that the Board is inclined to deconstruct this building and wants the public's input. He suggested setting aside the money in a future year to deconstruct. Frank Clifton said that the analysis has been done on this building and to bring it up to code would cost about $2-3 million. He wants to be careful to not entice the public to believe that this facility can be something that it cannot. Commissioner Yuhasz made reference to the 112 N. Churton St. improvements and said that he understands that the $152,000 is being set aside for the purpose of developing this building into an economic development incubator space. He does not think that this is the best building or the best way to spend this $152,000. He would like to revise the restrictions put on this building and sell it on the open market. He wants to investigate how to make this a marketable building and not put this money aside yet. Commissioner Gordon agreed with Commissioner Yuhasz about making the building marketable. Commissioner Jacobs agreed with Commissioner Yuhasz about selling the building. The Board agreed to remove this item from the CIP (112 N. Churton Street improvements). Commissioner Gordon pointed out that the Solid Waste Enterprise Fund refers to Congressman Bill Price and it should be David Price. A motion was made by Commissioner Hemminger, seconded by Commissioner McKee to give notice to the public about the future deconstruction of the Northern Human Services Center and to give notice to the tenant that this is a one-year notice; and to engage the community in meetings about this as soon as the Commissioners return from summer break. Frank Clifton said that staff would try to establish a format to hold community meetings on this issue. VOTE: UNANIMOUS 112 N Churton Street Property: A motion was made by Commissioner Yuhasz, seconded by Commissioner Foushee to remove this item regarding improvements from consideration. VOTE: UNANIMOUS 2. FY 2011-12 Annual Operation Budqet Decision Items Frank Clifton said that at the last meeting Commissioner McKee asked about coming up with something for employee compensation such as a one-time bonus. The current fiscal year has a savings of $2 million because of vacancies that have been kept unfilled. He did not budget anything for a bonus in the next fiscal year. If the Board decides to do anything, then the action should be in this fiscal year rather than next fiscal year because the savings exist in this fiscal year. The estimate is $600,000 total. Commissioner Foushee asked how it would affect this year's fund balance if this is done and Frank Clifton said that the amount going over to the fund balance would be reduced. Commissioner Foushee said that she is comfortable with this, but she wants to be clear that it will not affect what will be recommended for next year's budget. Frank Clifton said that last year the Board had asked that this item be brought back during this budget session. Commissioner McKee said that the employees are the most valuable asset and they have gone three years without a pay increase. He would like to add this in this year's budget. His idea was a one-time payment of $500 per employee. Commissioner Jacobs asked how this comes out to $600,000 with 800 employees at $500 apiece. Frank Clifton said that FICA contributions have to be made as well as the retirement benefit. He said that he would not recommend this for next year also because there are so many unknowns. Based on the fact that the savings were achieved by the employees and the employees filled the gap, he thinks that there should be a bonus this year. Commissioner Foushee said that this is the important message, that the County has lessened the workforce and the employees have tried to provide the same level of services. Chair Pelissier, Commissioner Hemminger, and Commissioner Gordon agreed. A motion was made by Commissioner McKee, seconded by Commissioner Foushee to direct the Manager to proceed with giving employees a onetime $500 bonus and to bring this back for Board approval on June 21St VOTE: UNANIMOUS Frank Clifton said that June 24th is the last payday of the fiscal year, so he suggested adding this into the paycheck with some kind of notation that this is a one-time payment. The Board agreed. Chair Pelissier suggested sending a letter on behalf of the Board of County Commissioners thanking the employees and noticing the bonus. Human Resources will draft this letter. Frank Clifton said that for the 2011-12 Operating Budget, $500,000 has been set aside for various appropriations and changes to the budget. The green sheet is the summary of the library modifications from the last discussion. Clarence Grier went through the Budget Adoption Decision Points, as shown below: Orange County, NC FY 2011-12 Budget Adoption Decision Points June 14, 2011 Decision Point 1 Mark Up/Mark Down Items for the County's FY 2011-12 Annual Operating Budget and Outside Agencies Decision Point 2 County Fee Schedule Decisions Decision Point 3 Funding for Chapel Hill-Carrboro City Schools and Orange County Schools - Current Expense (Per Pupil) Funding - Recurring Capital - Long-Range capital - Fair Funding Decision Point 4 Tax Rate Decisions - Ad Valorem Tax Rate - Chapel Hill-Carrboro City School Special District Tax Rate - Fire District Tax Rates Revenues Increase Decrease Additional Revenue associated with new $18,635 Custodial position budgeted in DSS Appropriated Fund Balance $468,221 Reduce Loan Proceeds for Mobile Library ($252,500) Total Revenue Changes $486,856 ($252,500) Net Change $234,356 Expenditures Increase Decrease Economic Development Small Loan Program $75,000 Purchase four (4) AED's - 1st year of a 3 year program $16,000 New Custodial position (1.0 FTE) budgeted in DSS $37,270 Reinstate funds for Emergency Assistance in DSS $50,000 Budget a reserve amount for a new PIO position $30,000 Increase funding for Chapel Hill-Carrboro Meals on Wheels $500 Increase funding for Charles House Association $4,500 Increase funding for Family Violence Prevention Center of OC $2,600 Increase funding for Freedom House Recovery Center $2,000 Increase funding for Planned Parenthood of NC $10,000 Additional funding to Chapel Hill Library to reach 21% level of Library Operations ($30,000 currently budgeted) $62,986 Reserve to provide alternative services $10,000 (internet access) to rural areas in OC Remove Mobile Library and IT Capital set-up costs ($266,500) Drug Treatment Court $67,000 Child Care Subsidy $100,000 Smart Start Dental $33,000 Total Expenditure Changes $500,856 ($266,500) Net Change $234,356 Remaining Fund Balance Amount to Appropriate $0 Total expenditure change to budget would be $231, 155 and available fund balance- $287,000 Commissioner Hemminger asked about increasing the amount to Chapel Hill for the library and Frank Clifton said that the increase would be roughly $94,000. It is not shown yet. He said that he heard the Board say at the last meeting that it would set aside the $250,000 along with the $94,000 pending some kind of agreement with the Town of Chapel Hill. The money would not be dispersed until there is an agreement that both parties have signed. Chair Pelissier said that she did talk with Mayor Kleinschmidt and she wants to share this conversation when the Board discusses the library. The Board agreed to discuss the library now. Clarence Grier said that the additional amount for Chapel Hill would total $92,900, of which $30,000 is already reserved. The additional amount that would have to be added would be $62,900. Chair Pelissier said that Chapel Hill did not make a definitive decision about charging fees to Orange County residents to use the Chapel Hill library. There is a proposal to start charging fees if the amount that the County is offering is considered insufficient. The fees would not be charged until August 15th because many children are already in the book club for the summer. Chapel Hill would not suffer a loss of revenues if they did not accept the $250,000 because the Friends of the Library have agreed to hold them harmless for about $200,000 for one year and they expect to get at least $50,000 in revenues from fees. She said that the most important thing is that the draft agreement that was drawn up by members of the Board of County Commissioners and the Chapel Hill Town Council is not acceptable to the Chapel Hill Town Council. They are looking for funds of about $1 million and they do not want any conditions attached regarding interoperability and no Memorandum of Understanding. She said that it was unclear if the additional $92,000 would satisfy the Town of Chapel Hill. Commissioner Foushee suggested that the Board, through the Chair, send an official letter indicating that the additional amount would be added to the $250,000 and that conditions will be attached — including interoperability and a Memorandum of Understanding that would give the County some representation in the decision-making process for the Chapel Hill Library. Chair Pelissier said that Mayor Kleinschmidt said that if this does not work out this year, they could discuss this the following year. Commissioner Yuhasz agreed with Commissioner Foushee to go ahead with the offer with conditions attached. The County needs to be able to exercise control over how the Orange County money is spent. Commissioner Jacobs suggested having something at the June 21St meeting as a resolution, since Chapel Hill does not meet until June 27th. He said that the County's offer is consistent and fair with what it has said over the past year when the elected officials' library work group met. Chair Pelissier said that she agreed that with the officials involved with this work group concurred but Mayor Kleinschmidt said that the majority of the Chapel Hill Town Council did not like the proposal. Commissioner Hemminger said that it is important to put in the resolution that this would be year one and step one of an ever-increasing amount. She thinks that the County should pay through August 15th with the new rate versus the $250,000 rate to show the intention to move forward. Commissioner Gordon said that the County should budget the additional $93,000 and the reason the council did not like the proposal is that they were looking at 2014. The dissatisfaction had to do with the end point. She said that 40% of the entire population of Orange County lives in the Town of Chapel Hill. She thinks that this is a really good deal. She suggested adding the $93,000 and then next year considering an MOU and increasing the funding. She said that this should not be tied to an MOU right now, but linked to coming to an agreement later. Chair Pelissier said that Mayor Kleinschmidt said that whatever monies Orange County budgets for Chapel Hill, the Town Council does not want it linked to an agreement or conditions. Commissioner McKee said that he does support the increase to $93,000 and he thinks this should be linked to the agreement. If the Town rejects it, then he thinks the money should be used as a placeholder for the Southwest branch. Commissioner Yuhasz said that the Town of Chapel Hill residents are paying $550,000 to support "their" library, the Orange County library that happens to be in Hillsborough. He thinks that this point needs to be made. Commissioner Jacobs said that he thinks it is very unfortunate that the governmental entities are unbundling their efforts to collaborate together. He said that they need to start thinking about working together. Chair Pelissier said that if Chapel Hill does not accept the monies from the County and starts charging fees, then Orange County should use some of the monies set aside to help pay the library fees for the citizens who would suddenly be charged for using the Chapel Hill Library. She does not want to see the citizens have to pay a fee. Frank Clifton said that the librarian in Orange County could assist any Orange County resident who wants to file for financial assistance for a library card. Commissioner Foushee suggested letting staff bring back a proposal since the County has until August 15tn Chair Pelissier suggested putting a placeholder on the monies and then deciding later about where to allocate the money. Lucinda Munger went over the green sheet, as shown below: FY 2011-12 Library Service Alternatives: To better serve our customers including rural Orange from our current locations, we propose these options for expanded and enhanced services. Main $60,000 Expand hours at Main by reinstating the 4 hours on Sunday year round to 60 hours per week. Currently, the library is not open on Sundays from the end of May thru September 1St. This would add approximately 1.7 FTEs. $7,000 To address customer demand in particular families that work, expand and enhance programming for all ages. Adult, YA and Children's, including Saturday and evening offerings. $7,000 Add 15 additional Kindles, complete with a small collection. We currently have 27 customers on a waiting list for our 5 Kindles. The Friends of the Library donated funds for the original 5 Kindles implemented on June 1, 2011. $12,000 Restore partial funding cut from Materials Budget in FY 10-11 for Books, Books on CD, and A/V. $21,000 Based on customer demand, add Databases such as: ■ Overdrive (NC Digital Library) — downloadable ebooks/audio for personal computers, or other remote locations (could be used on Kindles) ■ Business Plans Handbook— collection of actual business plans compiled by entrepreneurs seeking funding for small businesses throughout North America ■ Foundation Center— geared to grant seekers who are affiliated with non- profit entities. It is not set up to assist individuals seeking grant funding for personal projects ■ Genreflecting — helps users pick out what to read next based upon books they have enjoyed reading in the past. Carrboro $21,500 Reinstate hours to the Cybrary. Currently the hours are 9-3 Monday — Friday. Expand hours to Monday — Friday 9-4 and 10-2 on Saturday. This branch would operate 40 hours per week including the reinstated Saturday hours. $128,500 Total Additional Operational Funding Summary Library Operations: Current Library Schedules Expanded hours/services Main: Mon-Thurs 10-8pm Mon-Thurs 10-8pm Fri 10-6pm Fri 10-6pm Sat 9-5pm Sat 9-5pm Sunday (Sept. 1St— end of May) 1-5pm Sun 1-5pm year round Carrboro Branches McDouqle: Mon-Thurs 3:30-8pm Mon-Thurs 3:30-8pm Sat 10-2pm Sat 10-2pm Sunday 1-5pm Sunday 1-5pm Cvbrary: Mon-Fri 9-3pm Mon-Fri 9-4pm Closed Sat & Sunday Sat 10-2pm Sunday— closed Proposed FY 11-12 Operational Budget without capital (mobile book unit) Not including the contributions to Chapel Hill, Mebane and Hyconeechee Main $1,459,697 Carrboro Branches 173,572 Total Library Operations $1,633,269 Based on Library Operational Budget— Chapel Hill Contribution Base Yr. (FY10-11) OCPL $1,414,000 18% $250,000 Yr. One (FY11-12) OCPL $1,633,269 21% $342,986 Commissioner Hemminger asked if the $21,000 would be recurring costs except the Kindles and Lucinda Munger said yes. The Kindles still have to be bought by collection. Commissioner Hemminger said that she thinks it is important to extend the library hours and she is supportive of everything on the list. Commissioner McKee said that the library should be open on Sundays. Commissioner Jacobs thanked Lucinda Munger for coming up with a viable way to spend the funding. He asked if there is another item that is better than a Kindle and to investigate other devices for e-readers. He said that he would like to fund at least $10-20,000 for the Library Director to investigate wireless options for the rural areas, such as putting in wireless for the Efland center, or to use Pathways, etc. Commissioner Yuhasz agreed with the alternate ways to provide library services to rural Orange County. Other suggested changes: • Commissioner McKee — HYAA was not being funded but a fund was being provided to provide scholarships. He suggested adding $5,000 to HYAA for adding a girls' softball league, which is saving Orange County money. • Commissioner Jacobs — DEAPR — 35-hour position that was proposed for the seasonal position with benefits. Clarence Grier said that it was a seasonal position and it is not 35 hours. It is 28 hours over the season. • Commissioner Jacobs — suggested amount for Small Business Loan fund as $100,000 • Commissioner Yuhasz said that in 2002, N.0 created the drug treatment court, but now the legislature does not want to fund drug treatment court. He would like to see this program funded through Orange County for at least the next year. He has some preliminary figures, and the cost for a year would be about $67,000. He would like to put in $67,000 with the instruction to the Manager to try to work out an appropriate contract basis for this drug treatment court to continue. There are grant funds available of $150,000. • Chair Pelissier said that child care subsidies have been cut a lot these past few years, she suggested adding an additional $100,000 for child care subsidies, which would be a total of $150,000. • Commissioner Jacobs said that he would like to address one of the programs of Smart Start that the State is going to cut. He would like to address the dental program. This would be $32,945. Commissioner Foushee said that three years ago there was no waiting list for childcare and now the waiting list is at 500. The total for the changes to the recommended budget is now $569,141. Motions: A motion was made by Commissioner Jacobs, seconded by Commissioner Hemminger to fund the EDC Small Loan Program in the amount of $75,000. VOTE: UNANIMOUS A motion was made by Chair Pelissier seconded by Commissioner Yuhasz to approve the purchase of four AED's (first of a three-year program) in the amount of $16,000. VOTE: UNANIMOUS A motion was made by Commissioner Foushee, seconded by Commissioner Hemminger to fund the New custodial position (1 FTE) budgeted for in DSS in the amount of $37,270 (which will be reimbursed from DSS for half of the amount- $18,635). VOTE: UNANIMOUS A motion was made by Commissioner Foushee, seconded by Commissioner Hemminger for reinstate Emergency Assistance funding in DSS in the amount of $50,000. VOTE: UNANIMOUS A motion was made by Commissioner Hemminger, seconded by Commissioner Foushee to fund a reserve account for a new PIO position for 6 months in the amount of $40,000. VOTE: UNANIMOUS A motion was made by Commissioner Jacobs, seconded by Commissioner Yuhasz to fund the Chapel Hill-Carrboro Meals on Wheels in the amount of $500. VOTE: UNANIMOUS A motion was made by Commissioner Hemminger, seconded by Commissioner Jacobs to fund Charles House Association in the amount of $4,500. VOTE: UNANIMOUS A motion was made by Commissioner Hemminger to fund Childcare Services Association in the amount of $18,285— NO SECOND. A motion was made by Commissioner Gordon, seconded by Commissioner McKee to fund Childcare in the amount of $10,000. Commissioner Hemminger said that she would rather spend the money on directly giving subsidies and Social Services has been working on a plan. Commissioner Yuhasz agreed with Commissioner Hemminger. Chair Pelissier agreed and added that serving on the Orange County Partnership for Young Children and she is aware that they no longer have some of the subsidy money. VOTE: Ayes, 2 (Commissioner Gordon and Commissioner McKee); Nays, 5 MOTION FAILED A motion was made by Commissioner Hemminger, seconded by Commissioner Yuhasz to fund Family Violence Prevention Center of Orange County in the amount of $2,600. VOTE:UNANIMOUS A motion was made by Commissioner Hemminger, seconded by Commissioner Jacobs to fund Freedom House in the amount of $2,000. VOTE:UNANIMOUS A motion was made by Commissioner Hemmiger, seconded by Commissioner Jacobs to fund Planned Parenthood of NC in the amount of $10,000. VOTE: UNANIMOUS A motion was made by Commissioner Hemminger, seconded by Commissioner Jacobs to fund the Library $62,986. VOTE: UNANIMOUS Regarding alternative for internet access of $20,000, Frank Clifton said that he has had meetings with the School of Government about doing a strategic plan for Information Technology. A motion was made by Commissioner McKee to remove the $20,000 until the strategic plan comes back. NO SECOND Commissioner Jacobs said that he is ambivalent. A motion was made by Commissioner McKee, seconded by Commissioner Jacobs to allocate $10,000 for alternative internet access. VOTE: UNANIMOUS A motion was made by Commissioner McKee, seconded by Commissioner Jacobs to fund HYAA at $5,000. Commissioner Hemminger said that she is opposed to this because there are many other athletic associations. She does not like picking just one that gets funding from the County. She likes the scholarship fund. Commissioner McKee said that the scholarship pool is good but the HYAA has picked up the entire softball league of Orange County. Dave Stancil said that the softball and baseball programs are revenue neutral. Commissioner McKee said that the fact that the HYAA has picked up the girls' league entitles them to County support. VOTE: Ayes, 2 (Commissioner Jacobs and Commissioner McKee); Nays, 5 A motion was made by Commissioner Hemminger to add this amount to the HYAA scholarship fund — NO SECOND. A motion was made by Commissioner Yuhasz, seconded by Commissioner Hemminger to fund the Drug Treatment Court in the amount of $67,000. VOTE: UNANIMOUS A motion was made by Commissioner Hemminger, seconded by Commissioner Jacobs to fund Child Care subsidies at $100,000. VOTE: UNANIMOUS A motion was made by Commissioner Jacobs, seconded by Commissioner McKee to fund the Smart Start Dental at $33,000. VOTE: Ayes, 4; Nays, 3 (Commissioner Foushee, Chair Pelissier, and Commissioner Hemminger) The total is now at $510,000 of additions to the budget. Commissioner Hemminger suggested reducing the reserve amount for the Public Information Officer by $10,000. Commissioner Jacobs said that $500,000 is not a magic number, but is just a proposal presented by Management. Commissioner Foushee agreed with Commissioner Jacobs in principle and said that the PIO position is just a placeholder. A motion was made by Commissioner Foushee, seconded by Commissioner Hemminger to reduce the PIO funding by $10,000. VOTE: Ayes, 6; No, 1 (Commissioner Jacobs) Chair Pelissier asked if there were any changes to the fee schedule besides solid waste. A motion was made by Commissioner Hemminger, seconded by Commissioner Yuhasz to accept all of the fee schedule changes other than Solid Waste. VOTE: UNANIMOUS Solid Waste: Frank Clifton said that part of the fee schedule this year is a proposal to expand the hours at the Solid Waste Convenience Centers and this includes a fee schedule. Chair Pelissier asked Solid Waste Director Gayle Wilson to clarify the suggested new annual fee, which includes the shift away from the general fund as well as funding capital improvements to the SWCC. Gayle Wilson said that the fee is recommended as the first step in the shift for a change from funding SWCCs through the general fund to a partially self-supporting situation. The fee is going to fund both the expansion in hours and the improvements at the first SWCC proposed, which is Walnut Grove. If the Board chooses not to implement a fee but only wishes to expand hours or continue with the SWCC improvements, then funding would have to come from the general fund. Commissioner McKee said that he would like to have all SWCC's open for a %2 day on Sundays. Commissioner Gordon asked about increasing hours more and deferring the capital improvements. Frank Clifton said that this would delay the capital project, but it would affect the closing of the landfill. He does not want to do all of the SWCCs at the same time when the landfill is being closed. Commissioner Gordon asked how much debt service would be saved and Gayle Wilson said $99,000 for the first year. Commissioner Gordon asked what could be done with the $99,000 for increased hours. Gayle Wilson said that it depends on the day and the center. All of the Sunday hours could be run with this amount. Commissioner Yuhasz said that this has been discussed before and the SWAB looked at the issue and came to the conclusion that the improvements need to be made. He is opposed to the delay of the proposed implementation of the improvements plans. He thinks that user fees should be imposed. Commissioner Hemminger said that only using the fee for the increased hours would not be sustainable. She agreed with having Sunday hours. She is not interested in increasing the fee any further. She does not think the hours can be increased past the Sunday hours without having to increase the fee beyond what it will be now. Commissioner Jacobs said that once the County sets certain standards, the public embraces them. He thinks that having convenience centers that do increase recycling and are user-friendly are important. He thinks that moving to a 4-R fee will be fine with the public. Chair Pelissier concurred with Commissioner Hemminger, Commissioner Yuhasz, and Commissioner Jacobs. She said that this is an area where there is not equitable funding. Commissioner Yuhasz said that he would support possibly shifting hours to provide for more Sunday operating hours. Gayle Wilson said that Sunday for Walnut Grove and Eubanks is already included in the Manager's Recommendation. The two days for Bradshaw Quarry totals about $20,000. The adding of Sundays at the three other sites would cost about $73,250. Cutting one day at Bradshaw would not get close to the amount of opening all of them on Sundays. Commissioner Hemminger said that she was talking about flipping one of the days at Bradshaw to Sunday. Gayle Wilson said that this would come out a lot closer. Commissioner McKee said that he is open to moving the other additional day at Bradshaw Quarry to High Rock for Sunday hours. Discussion ensued on which SWCCs would be open on Sundays. Commissioner McKee said that it is more important to have Ferguson open on Sundays, without increasing the number of hours. Frank Clifton said that the staff could move the hours around and bring back a schedule using existing hours that has all of the SWCCs open on Sunday. Commissioner Jacobs said that he hoped the hours were uniform. Also, if hours will be taken from Eubanks and Walnut Grove, and Walnut Grove is getting improvements, then hours should not be taken from Walnut Grove. Commissioner Yuhasz agreed with Commissioner Jacobs and suggested that if they want to have Sunday hours at each of the centers, then they should shift the hours around at the individual SWCCs rather than shift hours from one center to another center. Commissioner Gordon agreed. A motion was made by Commissioner Hemminger, seconded by Commissioner Yuhasz to approve proposed fee rate increases for solid waste. VOTE: UNANIMOUS A motion was made by Commissioner Hemminger, seconded by Commissioner McKee to ask staff to come back with a plan to open SWCCs on half-day Sundays in a workable financial model; including that the hours will be shifted only within each center and will be standardized. VOTE: UNANIMOUS A motion was made by Commissioner Yuhasz, seconded by Commissioner Jacobs to adopt the Solid Waste CIP as recommended. VOTE: UNANIMOUS Fundinq for Chapel Hill Carrboro City Schools and Oranqe County Schools Clarence Grier said that the total funding for schools is $83.5 million, which is 47.1% of the General Fund Budget. The target is 48.1%. Adding in the non-mandated services of school health nurses, social workers, and school resource officers would take the funding to 48.1%. One additional item is $662,196 for reserving fund balance for the savings of debt service. This would provide the same amount of funding that was provided last fiscal year. Because of the shift in students, the same amount of money does increase slightly the per- pupil allocation. Commissioner Hemminger said that the $600,000 issue is very complicated. Frank Clifton said that he understands the confusion, but this is the only way that makes sense. Commissioner Yuhasz agreed that this has been confusing and in school collaboration meetings they have discussed alternative ways to define what the schools should expect and they will continue to have those discussions. Commissioner Jacobs asked if the Board was going to respond to the OCS letter and Chair Pelissier said that it is on the agenda for the 21St. Commissioner Jacobs flagged that one of the issues that is raised in the letter and has been raised by him before is the issue of capital equity. It is separate from per-pupil and it is not really expressed. It is not an equitable distribution of resources. He thinks that this is an issue that has been raised before and it is an equity issue. Commissioner Gordon said to go with the per-pupil allocation because it is understandable and is an even split. She asked for the amount that the '/4-cent sales tax would generate. Michael Talbert said that the '/4-cent sales tax is estimated to raise $2.5 million, which would be about $1,250,000 for both school systems. Commissioner Hemminger said that she would like to see the per-pupil allocation next week. A motion was made by Commissioner Foushee, seconded by Commissioner Jacobs to approve the funding for the Chapel Hill-Carrboro City Schools and Orange County Schools. VOTE: UNANIMOUS Tax Rate Decisions i. Ad Valorem Tax- 85.8 cents per hundred dollar valuation A motion was made by Commissioner Hemming, seconded by Commissioner Foushee to keep the ad valorem tax at the same rate. VOTE: UNANIMOUS ii. Chapel Hill Carrboro City Schools Special District Tax A motion was made by Commissioner Foushee, seconded by Commissioner McKee to keep the Chapel Hill-Carrboro City Schools Special District Tax at 18.84 cents per hundred dollar valuation. VOTE: UNANIMOUS iii. Fire District Tax Rates A motion was made by Commissioner McKee, seconded by Commissioner Yuhasz to approve the Fire District rates as requested. Commissioner Hemminger said that she would prefer to vote on these one by one. One of the departments requesting an increase has one of the highest taxes in the County. Commissioner McKee said that he wants to stay with his original motion. Commissioner Yuhasz said that he seconded this because all of the districts need it, but he too is concerned about New Hope's increase in the tax rate, and they need to find a more equitable way to fund fire departments. Commissioner McKee said that the issue on the insurance rating is a very difficult process and involves purchases of equipment and accessories in order to qualify. He recognizes the disparity, but he thinks that the departments have different demands. Commissioner Jacobs said that he respects Commissioner Hemminger's concerns. He said that the differences in rates are also differences in philosophy. He wants to create a framework where departments that have lesser resources to have better or safer service. VOTE: Ayes, 5; Nays, 2 (Commissioner Foushee and Commissioner Hemminger) 3. Break (to allow Financial Services Director to formulate Draft Resolution of Intent to Adopt FY 2011-12 Budqet) A motion was made by Commissioner Hemminger, seconded by Commissioner Yuhasz to go into closed session at 9:50 p.m. to: "To consult with an attorney employed or retained by the public body in order to preserve the attorney client privilege between the attorney and the public body, which privilege is hereby acknowledged," NCGS 143-318.11(a)(3); and "To establish, or to instruct the public body's staff or negotiating agents concerning the position to be taken by or on behalf of the public body in negotiating (i) the price and other material terms of a contract or proposed contract for the acquisition of real property by purchase, option, exchange, or lease, NCGS 143-318.11(a)(5)." VOTE: UNANIMOUS RECONVENE INTO REGULAR SESSION A motion was made by Commissioner Foushee, seconded by Commissioner Jacobs to reconvene into regular session at 10:00 p.m. VOTE: UNANIMOUS 4. Resolution of Intent to Adopt FY 2011-12 Annual Operatinq Budqet Approval of Resolution of Intent to Adopt FY 2011-12 Annual Operatinq Budqet at the Board of County Commissioners Reqular Meetinq on June 21, 2011 Resolution of Intent to Adopt the 2011-12 Orange County Budget The items outlined below summarize decisions that the Board acted upon June 14, 2011 in approving the FY2011-12 Orange County Annual Operating Budget. WHEREAS, the Orange County Board of Commissioners has considered the Orange County 2011-12 Manager's Recommended Budget; and WHEREAS, the Commissioners have agreed on certain modifications to the Manager's Recommended Budget as presented in the 2011-12 County Manager's Recommended Budget on May 17, 2011; NOW THEREFORE BE IT RESOLVED, that the Orange County Board of Commissioners expresses its intent to adopt the 2011-12 Orange County Budget Ordinance on Tuesday, June 21, 2011, based on the following stipulations: 1)Property Tax Rates a)The ad valorem property tax rate shall be set at 85.8 cents per$100 of assessed valuation. b)The Chapel Hill-Carrboro City Schools District Tax shall be set at 18.84 cents per$100 of assessed valuation. c)The Fire District tax rates shall be set at the following rates (all rates are based on cents per $100 of assessed valuation): •Cedar Grove 7.36 •Chapel Hill 7.50 •Damascus 5.00 • Efland 4.66 • Eno 5.99 •Little River 4.06 •New Hope 8.95 •Orange Grove 4.08 •Orange Rural 5.61 •South Orange 7.85 •Southern Triangle 5.00 • White Cross 7.00 2) County Employee Pay and Benefits Plan Provide a County employee pay and benefits plan that includes: a.No cost of living increase or in-range salary increase. b.Funding to address an employee health insurance increase up to 15.0%, effective January 1, 2012. c.lncreasing the Living Wage to $10.81 an hour. d.lmplementing recommendations of the County's FY 2010-11 internal Classification and Pay studies, which totals $60,000. e.Extending the six-month hiring freeze and the voluntary furlough program. f.Continuing the $27.50 per pay period County contribution to non-law enforcement employees' 401(k) accounts. g.lncreasing the County's contribution to the Local Governmental Employees' Retirement System (LGERS) for all permanent employees. 3) Modifications to County Manager's FY 2011-12 Recommended Annual Operating Budget The following modifications to the County Manager's Recommended Budget are made: 4) Changes in Funding to Improve Service Delivery (Increase in FTE Approved) 5) General Fund Appropriations for Local School Districts The following FY 2011-12 General Fund Appropriations for Chapel Hill Carrboro City Schools and Orange County Schools are approved: a) Current Expense appropriation for local school districts totals $59,375,382 and equates to a per pupil allocation of $3,102. 1)The Current Expense appropriation to the Chapel Hill Carrboro City Schools is $36,305,808. 2)The Current Expense appropriation to the Orange County Schools is $23,069,574. b) Recurring Capital appropriation for local school districts totals $3,000,000 1)The Recurring Capital appropriation to the Chapel Hill Carrboro City Schools totals $ 1,834,500. 2)The Recurring Capital appropriation to the Orange County Schools totals $1,165,500. c) Long Range (Pay-As-You-Go) Capital appropriation for local school districts totals $2,628,969. 1)The Long-Range (Pay-As-You-Go) Capital appropriation to the Chapel Hill Carrboro City Schools totals $1,607,615. 2)The Long-Range (Pay-As-You-Go) Capital appropriation to the Orange County Schools totals $1,021,354. d)School Related Debt Service for local school districts totals $17,519,486. e)Fair Funding appropriation for local school districts totals $988,000. This appropriation is to be split 50/50 between Chapel Hill Carrboro City Schools and Orange County Schools. f)Additional County funding for local school districts totals $1,806,116. (1)School Health Nurses —Total appropriation of $634,332 with $433,875 allocated for Chapel Hill Carrboro City Schools and $200,457 allocated for Orange County Schools. (2)School Social Workers —Total appropriation of $642,374 allocated in the Department of Social Services to provide School Social Workers to Orange County Schools. (3)School Resource Officers —Total appropriation of $529,410 allocated in the Sheriff's Department to provide School Resource Officers to Orange County Schools. 6) County Fee Schedule To adopt the County Fee Schedule to include changes included in the FY 2011-12 Manager's Recommended Annual Operating Budget. A motion was made by Commissioner Hemminger seconded by Commissioner Yuhasz to approve the Resolution of Intent to adopt the FY 2011-12 Orange County Budget. VOTE: UNANIMOUS A motion was made by Commissioner Jacobs seconded by Commissioner Yuhasz to adjourn the meeting at 10:19 PM. VOTE: UNANIMOUS Bernadette Pelissier, Chair Donna S. Baker, CMC Clerk to the Board