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HomeMy WebLinkAboutMinutes - 20050122APPROVED 02!15!2005 MINUTES ORANGE COUNTY BOARD OF COMMISSIONERS ANNUAL PLANNING RETREAT SOUTHERN HUMAN SERVICES CENTER JANUARY 22, 2005 9:00 a.m. The Orange County Board of Commissioners met for its annual Board retreat an Saturday, January 22, 2005 at 9:00 a.m. at the Southern Human Services Center in Chapel Hill, North Carolina. COUNTY COMMISSIONERS PRESENT: Chair Moses Carey, Jr. and Commissioners Valerie P. Foushee, Alice M. Gordon, Stephen H. Halkiotis and Barry Jacobs COUNTY ATTORNEY PRESENT: Geoffrey Gledhill and S. Sean Borhanian COUNTY STAFF PRESENT: County Manager John M. Link, Jr., Assistant County Managers Rod Visser and Gwen Harvey and Clerk to the Board Donna S. Baker {all other staff members will be identified appropriately below) FACILITATORS: Betsy Polk and Karen Archia STAFF IN ATTENDANCE: Pam Janes, Ken Chaviaus, Elaine Holmes, Greg Wilder, Donna Dean, Craig Benedict, Lori Taft, Nancy Colton, Rosemary Summers, Jerry Passmore, Todd Jones, Dianne Reid, David Stancil, Tara Fikes, AI Terry, Jack Ball, Todd Jones, Milan Pham, Gayle Wilson NOTE: ALL DOCUMENTS REFERRED TO IN THESE MINUTES ARE IN THE PERMANENT AGENDA FILE IN THE CLERK'S OFFICE. ALL RECORDINGS OF THE MEETING WILL BE KEPT FOR 5 YEARS. NOTE: The Board afCommissioners will be discussing the topics listed below in an effort to establish a frametivork and set in motion a process for problem-solving, planning and decision- makrng. The Board will not be voting or attempting to reach a conclu,sian an any .specific matter at this meeting. BREAKFAST GATHERING AT 8:30 A.M OPENING COMMENTS: Chair Carey introduced Betsy Polk and Karen Archia from the Dispute Settlement Center as the facilitators, and thanked them for coming. The meeting began at 9:15. INTRODUCTIONSIROLE OF FACILITATOR: Betsy Polk said that their role is to keep the Board moving and on topic. Karen Archia went over the ground rules: • Begin and end on time • One speaker at a time • Stick to task and topic • Listen attentively • Share the floor • It's okay to disagree -just do so respectfully Commissioner Gordon asked that there be a final ground rule that if there is frozen precipitation that they will adjourn, and Commissioner Halkiotis agreed. All agreed to follow the ground rules. GENERAL COMMENTSIOBSERVATIONS: Commissioner Jacobs would like for them to think about having some priorities. He thinks the Board is very ambitious and tries to please everyone. He does not want other things that come up during the year to knock them away from addressing priority issues. Chair Carey agreed and said that it would be good to communicate with the public that if the Board cannot address issues when they come up, they will be addressed at some point. Chair Carey said that he sent an email to the County Commissioners about the process far Board of County Commissioners' boards and commissions that he remembers. He said that the Board could agree to deal with this item when they get to it. 1. FISCAL OUTLOOK -ANNUAL STAFF PRESENTATION Budget Director Donna Dean made a PowerPoint presentation. Fiscal Update Orange County, North Carolina January 22. 2005 Discussion Points ^ Overview ^ Update on 2004-05 Budget ^ Preview of 2005-06 Budget (including Revaluation update) ^ Glancing into the Future ^ What lies ahead for the next five years? Across the Nation Due to state and federal funding cuts and implementation of unfunded mandates, local governments have had to become "creative" in funding services . They have become dependent on one-time budget "fixes" such as borrowing from unspent capital projects, freezing and delaying hiring, using fund balance and temporarily increasing taxes . Mast have tapped all of their non-recurring funding sources To that end, analysts predict that the majority of State and local governments will face a budget gap as they begin planning for fiscal year 2005-06 State's Preliminary Budget Outlook ^ Revenue projections far State total around $15.8 billion . Assumes "sunsetting" of $500 million in temporary tax hikes enacted by the General Assembly in 2002 ^ Projected expenditures total at least $17 billion Estimated shortfall between revenues and expenditures is $1.2 billion ^ All estimates are subject to change as State fiscal analysts continue to refine their numbers ^ What does the $17 billion expenditure total include? ^ Continuation Items . Restoration of one-time expenditure cuts . Student enrollment increases . Medicaid growth . Debt Service increase related to 2000 statewide bonds . Expansion Items . 2°~ salary increases for State employees . Health insurance increase . Increased funding to universities and community colleges . Public school ABC bonuses ^ What does the $17 billion expenditure total not include? ^ School construction needs . Funding to comply with Leandro ruling ^ Community college equipment and faculty salary increases . Additional Medicaid . Mental health reform ^ New prison space ^ Hurricane relief ^ Relatively few revenues left that the State can withhold or take from local governments ^ Possibility that there could be additional funding cuts or "unfunded mandates" passed our way ^ Outstanding budget decisions for General Assembly and Governor . Let the temporary sales and income taxes expire this year or extend them? . Implement state tax on cigarettes? . Authorize sales tax on services? . Lottery? Orange County Revenue Update and Outlook Property Taxes Remain Largest Single Source of Revenue ~'~ Property Tax Facts ^ Total projected valuation far current fiscal year approximately $10.2 billion . Includes real and personal property, motor vehicles and utilities . Real property comprises about 86°~ of the total ($8.8 billion) ^ One cent anticipated to generate $1,011,210 ^ Historically, average annual valuation increases . 4.5% in non-revaluation years . 24°k in revaluation years Assessed Valuation c2) Current Year Property Tax Collections ^ Real Property Revenue Collections ^ Current year budget of $81.1 million . To date, about 95% of budgeted real property taxes have been collected . $3.9 million left to collect . Point of comparison -this time last year had attained almost exactly same percentage of collections at this point; by year end, total collections were 99.8% of budget . $75.2 million collected out of $75.3 million budget ^ Motor Vehicle Revenue Collections . Current year budget of about $7 million . Over the last few years, this has become less and less predictable due to staggered renewals and sluggish economy . To date, about 52% collected to date . Point of comparison -about 5°l0 lower than last year at this same time . June 30, 2004 year end collections were 92.1 °~ of budget . $6.4 million collected out of $6.9 million budget Revaluation Update At this point, real property valuation after revaluation is in the neighborhood of $10.6 billion . This amount is for real property only and does not include other components such as motor vehicles, personal property and utilities Reflects about a 20 percent increase over currently budgeted real property valuation . As point of comparison, the valuation projection (pre-revaluation) used in the current year's budget for real property was $8.8 billion ^ Anticipated "revenue neutral" tax rate in the neighborhood of 80 to 81 cents per $100 valuation . Current fiscal year approved tax rate = 88 cents per $100 valuation . One cent anticipated to generate a little mare than $1.1 million for fiscal year 2005-06 . One cent in fiscal year 2004-05 anticipated to generate about $1 million Property Tax Rates ~'~ Sales Tax Facts ^ About 15% of total budgeted General Fund revenues in current fiscal year . Articles 39 {"One Cent"} and 44 {"Third Half Cent"} fund County's annual operating budget . Article 44 is "newest" sales tax revenue for local governments . Authorized by General Assembly in 2002 to replace reimbursements that State took away from local governments during fiscal year 2001-02 . No sunset provision . By Board policy, Articles 40 & 42 ("First and Second Half Cents") dedicated to County and School capital projects Sales Tax Outlook ^ Economic slowdown and sluggish sales since 9111 have resulted in less robust growth than that experienced in mid-1990's ^ Current budget of $20 million . Collections to date are about $450,000 less than same time frame last fiscal year . Important to note that this does not include "holiday sales" . Payment received January 15 about one-half of previous three months Applications far public assistance continue to increase particularly in the area of food stamps Medicaid expenditures at the end of December are 23% higher than they were last year at this time . $326,000 more spent this year than last year at the same time . Current year budget = $3.6 million; $1.7 million spent through end of December . Compared to $1.4 million expended at same point last year . Expect to spend at least 100% of budget this year compared to only 96% spent at 6130104 Short Term Funding Initiatives Affecting Sustainability School Funding Facts ^ Twentieth day student membership this fiscal year totals 17,762 {including budgeted charter school students) . CHCCS - 10,721 students . OCS - 6,670 students . Budgeted Charters for both districts - 371 ^ Average annual increase in non-charter membership for current and previous fiscal year is 355 students 20tH Day Student Membership Bath Districts ~'} School Funding Facts School Funding Outlook County Operational Budget Outlaak Medicaid . Anticipate between 10 and 12% increase next year . Between $360,000 and $450,000 Rising fuel and utility casts . Unsure of budgetary impact at this point Debt service related to 2001 voter approved bands and alternative financing plan Based on October 25, 2004 BOCC endorsed debt issuance schedule, anticipate approximately $2.1 million increase next year Employee Retention Rebuild Fund Balance County Facilities Maintenance/Care Fiscal Year 2005-06 Budget Building Blocks Longer-Term School and County Initiatives Affecting Sustainability Longer Term School Funding Initiatives ^ Increasing student membership in both districts ^ Funding equity ^ Start-up and ongoing cast of three new schools ^ Need for additional student capacity and renovation of older facilities ^ New facilities scheduled to open . 12 new County facilities that will impact operational budgets ^ New County Initiatives CountylSchool Capital Funding Bond IssuelProcess Goal for 2005/2006 Chair Carey said that he plans to respond to the letter from CHCCS. Commissioner Gordon said that the Board should discuss the issues raised in the CHCCS letter. She is wondering how the target would play out in projects placed in the CIP. She made reference to the charts on page 12 with student projections and asked that the figures be updated to include the K-3 class size reductions. She said that no one seems to have a rationale far the 60/40 target and that there needs to be aproject-by-project analysis. Chair Carey said that the Board would answer the questions. He said that the adoption of the target was an important message that should be clarified with the public. He said that there are many County capital projects that have been delayed over the years and now they need to be addressed. Chair Carey would like to look at other figures an school projections, such as a combined set of projections, showing the same information if there was one school system in the County. Commissioner Halkiotis said, with all due respect to Commissioner Gordon, that the Board did vote 4-1 on this target. He made reference to the letter from CHCCS and the first paint. He said that Ms. Stuckey is speaking as Chair of the school board and they spoke as County Commissioners. These are two separate functions and two separate perspectives. He said that if the County Commissioners ever failed to meet the needs of either school system, he would quit. He does not want to get bogged down on the issues and he can agree to disagree. He said that if there is a sudden jump in enrollment, the County Commissioners have always jumped in and helped out. He thinks there should be an ultimate response to the letter. Chair Carey said that he said about the same thing to the school board members at the collaboration meeting that Commissioner Halkiotis just said. He said that the County Commissioners have never failed to respond to the needs of students when they occur and they will not do it now. Commissioner Jacobs agreed with Commissioner Halkiotis that it is a target and not a cap. He clarified with John Link that the Board asked for a full analysis to come back at an early work session in March or April. The Board solicited comment and suggestions from the two school systems, and this is their response. He suggested asking the two school boards to give the Board some priority order to their CIPs. Commissioner Foushee acknowledged all of the comments, but she thinks it is incumbent upon this Board to at least inform the public in a way that they understand what the County Commissioners' priorities are in terms of capital expenditures. She thinks, in the absence of an approved CIP for the entire County, that no one is certain of what the Board's priorities are. Commissioner Gordon clarified the projections that she had asked for. In addition to the elementary school projections already produced, she would like elementary school projections that show K-3 class size reductions. She said that Chair Carey asked for the projections showing that the two school systems were combined. She said that this raises the whole question of should the schools be located where the students live, or if there would be some sort of bussing. She said that if the County is going to build schools where the students live, then all of the new schools within the next ten years are in the CHCCS system. She thinks the Board needs to have a conversation about its philosophy on building schools. Chair Carey said that the County Commissioners would have those discussions when they get the projections. He said that it is the Board's responsibility to use the taxpayer's dollars efficiently. Discussion ensued about the timing of talking about a proposed future bond issue. Ken Chavious distributed information about the last bond process and the procedural steps required by the Local Government Commission. same of the nomenclature lined up. They have also commented on the significance on these resources. She said that they would not provide a document that says that the two districts should merge or not, but they will compare the educational resources available to the children in the districts. She said that a report should be ready by the February 15t" meeting. Commissioner Halkiotis said that he has been impressed with the work of Dr. Grumet and her team, as well as both school systems. He thinks that one of the mast interesting things in the process is to see what other resources are available to children in bath school systems. He thinks it will be enlightening. Commissioner Jacobs said that he enjoyed his one meeting with the school collaboration group. He suggested having a dinner meeting or having a separate meeting for this report. Commissioner Halkiotis agreed. Chair Carey asked if some of the questions that were raised have more to do with the decisions that each school board might need to address, or decisions that the Board of County Commissioners might need to make. Dr. Grumet said that even though the two entities have specific functions, they do cooperate in the creation and funding of a single process. She said that they would focus primarily on programs, on the needs of different subgroups in the districts, and on the kinds and numbers of personnel available to address those needs. Commissioner Gordon made reference to the comment about the differences between schools in the same district. She said that in 1991, she was on the capital needs task farce and she went to every single Schaal in both districts. What struck her was that the big difference was not a difference between the two school districts. The big difference was between the older schools and the newer schools within the two districts. She asked if Dr. Grumet was looking at the setting in which the children were being taught. Dr. Grumet said that they did not look at this with tremendous focus. B. School SystemlCounty Financial Efficiency Report and Recommendations Bob Segal went through his letter of January 14th, which is Attachment 2b. Chapel Hill-Carrboro City Schools: Telecommunications expenses -the expenses for CHCCS are still on the table and are being evaluated. Sales tax -CHCCS has amended the first return and asked for another $100,000 back. They are working on 2002-2003 and making progress. Cash Management -They hope to have this cash management system implemented 100°lo by the end of February. Natural Gas -This has been implemented effective January 1St Orange County Schools: Universal Service Fundle-rate -This has been progressing nicely. Cash Management -They have implemented part of this recommendation. Orange County Government: They are in a holding pattern at this time. Collaborative Efforts: Banking -They are beginning to draw information together from all three organizations. For example, all three entities use the same banks. One of the objectives is to get all three entities up to the highest grade of interest. Vendor Analysis -They are beginning to group vendors by type. They are looking for economies of scale. They have found 34 vendors for vehicles, 24 book vendors, 19 computer- type vendors, and 12 copier vendors. He pointed out that the two school systems pay almost exactly the same to the copier companies, but one system has 113 more students than the other. He said that it was a slow process, but there has been some implementation. Commissioner Halkiotis made reference to page 3 of his letter, and that Orange County government had not signed an agreement with Mr. Segal yet. He asked why this has not been signed. Rod Visser said that the Commissioners indicated that there was another type of analysis that does not fit very well within the standardized contract that the Segal firm uses. They have been struggling with how to compensate the firm for these kinds of analyses. Commissioner Halkiotis said that he thinks the Board made a philosophical commitment to both school systems when they put themselves under the same microscope with Segal. He thinks this sends the wrong message. If he were a school board member, he would be upset about this. He feels the County has been kept out of the analysis. He wants to finalize the agreement as quickly as passible. Chair Carey asked Bob Segal about the agreement. Bob Segal said that he submitted a modified agreement, but it has not yet been approved. He said that he thinks they have found an operational efficiency and submitted a proposed letter agreement to cover this one paint, but Ken Chavious pointed out some flaws. They have identified some efficiencies and they are working on an agreement that is mutually satisfactory. He said that it would be nice to have the same standard agreement that the other two parties have signed. Commissioner Jacobs suggested putting the basic agreement on the agenda for Monday night. The part that deals with the mare complicated comparison could be addressed separately. He agrees that there should be an agreement as soon as passible. Chair Carey agreed and said that the basic agreement should be approved. Bob Segal said that Ken Chavious has passed along vendor and invoice information, so he can start with the collaborative part. At 10:55, the Board took afive-minute break. C. School Collaboration Work Group (Possible Recharging to include addressing outstanding substantive policy issues such as the Process and Authority far Making School System Capacity Decisions in a Timely Manner and making recommendations to elected bodies) Chair Carey said that he has been going to these meetings this year. He pointed out the minutes from several of the meetings. He asked staff to refresh the Board's memory of the charge and the activities. He said that at the last meeting, the group did a summary of accomplishments to date and they are encouraging. He realizes that the collaboration processes were, in part, developed as an alternative to merger. He raised the question of whether the group should be recharged to focus on some more substantive issues, and they reminded him that they have already been focusing on substantive issues. The two school boards have been working together and have generated a list of substantive issues. He said that if they recharge, then all three groups need to decide. Commissioner Halkiotis said that he is impressed with what is going on. He said that last week he and Chair Carey met with Durham Technical Community College representatives and Dr. Phail Wynn announced that in September 2005, the Middle College would be getting underway with 50 students from Chapel Hill-Carrbaro City Schools, 50 from Orange County Schools, and 100 from Durham Public Schools. He thinks this is a significant piece and shows the two school systems working together in a significant manner. He endorsed keeping the work group going. Commissioner Gordon wants a formal report before prioritizing what the Board wants this group to work an; the report should came before any recharging of the group might take place. The group can still identify issues that it would like to work on. New Initiatives D. School System Funding Equity Gaal for Orange County Chair Carey said that the County Commissioners should pursue this goal of achieving funding equity between the two school systems. He has heard from the public that they want this also. He would like to do it this year. Commissioner Foushee supports this and thinks that it is paramount to determine what "equity" means. She would like to get the reports back from the studies that have already been commissioned. She wants to understand what resources are necessary before talking about the definition of equity. Commissioner Gordon said that it is very important to try and achieve funding equity. She also thinks it is important to figure out what equity means. She still supports the general approach that she presented an December 9, 2003. She said that the basic premise of the comments from the public was that the majority wanted the County Commissioners to address the funding difference between the two districts. She would support looking at a method, and she would resubmit the approach that she used last year. She would like to see it addressed this budget year if possible. Commissioner Halkiotis endorsed everything that was said. Commissioner Jacobs would like to have someone pull up the old Board of County Commissioners' goal about school equity from ten years ago. He said the fact that the old goal exists makes a historical statement. He thinks the Board is in agreement. E. PlanninglDesignation and Coordination of School Sites Chair Carey said that this is in response to Commissioner Jacobs' suggestions over the last six to eight months. Planning Director Craig Benedict said that this is a process that is an offshoot of planning for schools, and goes back to a memo from Commissioner Jacobs of March 3, 2003, to bring in all parties to put together a process far school siting. He painted out the eight steps to better school siting, Attachment 2E. There needs to be some more work through a School Construction Standards group to talk about school siting. Commissioner Gordan asked which schools are remaining to be sited. She thought that all of the schools had been sited, at least within the next ten years. Craig Benedict said that this has to do with land banking for ten plus years. The opportunities for schools necessary in the CHCCS are waning. In the OCS, there are limited areas for water and sewer extensions. Even though there is a large area, the opportunities may be limited. The intent is to think as far in the future as possible, within ten years and beyond. Commissioner Halkiotis made reference to "walkability"and pedestrianlbike-friendly. He said that when you apply this to the real world of being a concerned parent and children walking or bicycling to school, it enters a totally different world from the planning world. He thinks there is a disconnect between the planners and the practicality of parents with regard to child safety. These issues need to be seen through the eyes of a parent. Commissioner Jacobs said that he would like a timeframe for a recommendation. His original proposal was to look at this for another bond issue - to purchase school sites now while they are less expensive. In order to do this, they need to look at the school construction standards. Chair Carey agreed with Commissioner Halkiotis and said that they might be able to test the assumptions with Twin Creeks. Craig Benedict said that there would be a report probably in February. can do. He said that some of the steps that the staff plans on taking would cost some money up front. Craig Benedict said that the courts have given them the ability to act, knowing that the property owner has been in contempt of the court order. There is a multi-step process that the County can carry out, based on the court order. This week they have met with three different contractors that could help in taking the cars from the site. He would like to hire a firm that would take the cars and take care of them completely. There could be some net revenue from the cars back to the County to help defer some of the costs of building the fence and removing the garbage that the firm may not take. The plan is to remove vehicles that are clearly outside of the fenced areas. They will hire a surveyor to define the lines and flag this and remove the fencing that does not meet the court order requirements. They will also be rebuilding the fence on US 70, which is supposed to be eight feet high. There are some areas on Slaughter Road that do meet the court order. The new fencing that will be needed is estimated at 2,000 linear feet. If there is no net revenue from the cars, the attorney believes that they can enter the property and have an auction an vehicles that are in his legitimate junkyard area, and have an execution sale of same of his personal property to recoup costs to the County. He said that the firms are willing to assist the County if the junk cars recur and in any other places in the County where junk cars need to be removed. Commissioner Halkiotis asked if the entire fence would be replaced and Craig Benedict said yes. Some of the old fencing may be able to be used elsewhere. Commissioner Halkiotis said that if this were accomplished, it would be a historical marker. This has been going on for years. He thinks that a group needs to be set up to look at creative, alternative means of getting rid of this mess. He does not think this is creative. He thinks that Mr. King will find a way to get around this, because he has been doing it for over 20 years. Commissioner Jacobs asked about the property on Dimmocks Mill Road and if this was included and Craig Benedict said yes, that the contractors could take abandoned motor graders because they are all metal. Abandoned mobile homes are a different issue because of the materials in them. County Attorney Geof Gledhill said that the original court order required Hoyle King to fence the Durham property, but subsequent to that, the Planning Department determined that he was using the fence as cover for putting a junkyard in an area that he was not permitted. The subsequent court order told him to take the fence back. When the County finishes the phase of the project that involves construction of the fence and surveying the property, the bill will be submitted to Hoyle King. If the bill were not paid, the property would then begin to be sold until the judgment is satisfied. The Board agreed to authorize staff to pursue the steps as outlined. E. Process for Creating a Social Justice Gaal for Orange County John Link said that Milan Pham has provided cone-page history on the status of this goal. Commissioner Gordon asked if this would be in report form and Milan Pham said yes and that it would also be a goal. Commissioner Jacobs suggested that she include the Economic Development Commission with the other boards. F. Process for Creating an Environmental Responsibility Goal for Orange County Environment and Resource Conservation Director Dave Stancil said that the Commission for the Environment was asked to develop this goal. In the spring of last year, the Commission for the Environment began looking at it and realized that a lot of it went beyond their scope. They spent most of the spring identifying stakeholders and planning how to proceed. They scheduled a meeting and invited representatives from every identified help with prioritization. The TSB would fit into it as a subset. Another consideration is how the area transit agencies in Chapel Hill-Carrboro and the University tie in to the OPT system. This proposed committee might help in taking a more comprehensive look at the transportation needs. Commissioner Gordon said that what happened before is that the Board of County Commissioners decided to defer creating additional advisory boards. She would like to see a proposal for the charge and membership, etc., for this group. She said that the question is whether there should be a separate group or a composite representation of existing boards that are relevant to come together and discuss this. Craig Benedict said that there needs to be another process to bring in the representatives from Economic Development, Commission for the Environment, Planning Board, and municipalities. Commissioner Jacobs said that this is long overdue to have a separate advisory board to deal with transportation issues. There are a huge number of issues that need to be addressed. He thinks there should be a freestanding group that can be comprised bath of representatives from three ar four existing advisory boards that deal with transportation issues and citizens that are interested. He would also like to see a proposed charge and membership. The Board agreed that the staff would bring back a proposed charge and membership of this group. The Planning Department will take the lead. I. Small Business Taskforce for Orange County John Link said that Economic Development Director Dianne Reid will take the lead in pulling the group together, and Commissioner Halkiotis will work with this group. Commissioner Gordon asked if this could be brought back to a regular agenda. Jahr Link said that they would meet again and then come back to the Board of County Commissioners with a proposal. J. Landfill Methane Gas Taskforce far Orange County Chair Carey said that Commissioner Halkiotis suggested this. Commissioner Halkiotis said that Solid Waste Manager Gayle Wilson's memo of January 20th highlights the background on this. He would be delighted to help out. He suggested reaching out to Hillsborough, Chapel Hill, and Carrboro. He said that a couple of Chapel Hill Town Board members are really interested in this project. 6. ISSUES RAISED BY COUNTY BOARDS AND COMMITTEES Chair Carey said that the Board asked the boards and committees to put forth a report on achievements, challenges, and priorities for the next year. This is included as information so that the County Commissioners can read it and ask any questions. He suggested inviting any of the boards and commissions to a future meeting if there are specific questions. Adult Care Hame Community Advisory Committee: Commissioner Jacobs would like to see a report on a visit. Also, regarding the issue of finding funding for the Access Dental Unit, maybe this could be brought to a higher level of public interest. Agricultural Preservation Board: Commissioner Jacobs made reference to page two and that they want the Board of County Commissioners to consider possible incentives to voluntary agricultural districts. If a legislative package is going to be put together, it has to happen as soon as possible. Someone needs to communicate that to the Agricultural Preservation Board. On the next page, there is a letter criticizing the County Commissioners because they allowed a 10-acre lot subdivision by Pathways. He said that this could be corrected by a short letter saying that it is not within the Board's purview. He is interested in what the thinking is from the Ag Board an the effects of the 10-acre lot exempt subdivision. It was brought up at the legislative goals that the Attorney provided guidance about the pros and cons and that the County Commissioners cannot regulate subdivisions with all lots greater than 10 acres and no public road. If this is having an adverse impact as perceived by the Ag Board, then it could be discussed with the legislators. Commission for the Environment: Commissioner Gordon pointed out that the Environment Summit would be held on Saturday, April 23rd, at the Carrboro Century Center from 9:00 a.m. - 12:00 p.m. Historic Preservation Commission: Commissioner Jacobs made reference to the third page and the comment about the rehabilitation code, "consider County adoption of the North Carolina Rehabilitation Code." He does not know what that is and why the Board would not adopt it. He also asked about the Orange County designated historical landmark sign. Someone was supposed to make this sign. Commissioner Halkiotis suggested just buying the sign. Hyconeechee Regional Library Board of Trustees: Commissioner Jacobs said that if there could not be a bond this year, then the Board needs to address the siting of a library in the central part of the County. There has not been a decision about whether it would go with the community college or somewhere else. He does not want to lose the momentum. Commissioner Halkiotis agreed and suggested making this part of the agenda for the meeting with Hillsborough in February, as well as recreation and parks issues. He said that when he visited the Durham Tech satellite campus last week, he learned that the current library is not even 1,000 square feet. He thinks that they rely on the resources to come from the main campus in Durham. He does not think it is very important to Durham Tech like it is to Orange County. Commissioner Jacobs would like to make a conscious decision to site the library somewhere. Planning Board: Commissioner Gordon asked if they were operating by committees anymore. Craig Benedict said that the Ordinance Review Subcommittee does convene if there is an ordinance on topic. Also, there was a Rural Character and Farmland Protection Wark Group. An interim report was presented to the Planning Board and they are still considering the recommendations. He said that the Planning Board would like the Board to know that the goals far next year are not prioritized in this document, and they would like to work through the spring to develop a priority list. Commissioner Jacobs suggested that the quarterly public hearing meetings would be a good time to meet with the Planning Board, since the members are already in attendance. Jahn Link said that there are no public hearing items for the next quarterly public hearing, and he suggested that it could be a time to meet with Planning Board members. Transportation Services Board: Commissioner Gordon said that they are working with TTA to put a route from Chapel Hill to Hillsborough to take over the OPT route, and OPT could potentially have a route from Hillsborough to Durham to replace the one that was deleted by TTA. Commissioner Jacobs: Economic Development Commission Durham-Chapel Hill-Orange Work Group Commission for the Environment Triangle J Council of Governments Human Relations Commission Agricultural Preservation Board Advisory Board on Aging Affordable Housing Advisory Board (alternate) Agricultural Center Work Group Central Orange Senior Center Design Committee {alternate) Efland/Mebane Small Area Plan Task Force Fairview Park Master Plan Task Force Housing Bond Program -Project Review and Selection Committee International Council far Local Environmental Initiatives (alternate} Intergovernmental Parks Work Group {alternate} Justice Facilities Exterior Planning Committee Northern Human Services Center Community Park Advisory Group Project Planning Committee (Chapel Hill/Orange County PPC} Rural Planning Organization -Transportation Advisory Committee Solid Waste Advisory Board Commissioner Foushee: Affordable Housing Advisory Board Social Services Board Human Services Advisory Commission Commission for Women Communities in Schools Fairview Park Master Plan Task Farce {alternate} Home Program Review Committee Housing Band Program -Project Review and Selection Committee Information Technology Advisory Committee Orange Community Housing and Land Trust Board of Directors Workforce Development Board -Regional Partnership Commissioner Halkiotis: Orange County Partnership for Young Children Fire Chiefs' Association of Orange County Durham Technical Community College Satellite Campus Advisory Committee for Programming Needs Assessment Agricultural Center Work Group (alternate) Alcoholic Beverage Control Board Cable TV Advisory Committee Central Orange Senior Center Design Committee Fairview Park Master Plan Task Force International Council for Local Environmental Initiatives Justice Facilities Interior Planning Committee Million Solar Roofs Initiatives NACo Voting Delegate Northern Human Services Center Community Park Advisory Group Project Planning Committee (Chapel Hill/Orange County PPC) {alternate) Have requested additional information from NC Department of Revenue . Will update Board once information is received and analyzed by Budget Staff Overview of Other Major Funding Sources ^ Investment Earnings -current budget of $460,000 . Based on information from fiscal analysts, anticipate some increase in interest rates aver next 18 to 24 months ^ Fees, Licenses, Permits . Current budget of $8.5 million . Includes $1.8 million in Register of Deeds fees and about $2.1 million in Sheriff fees . Remainder of fees consist mainly of Planning, Inspections, Health fees . All are expected to remain constant next fiscal year Overall Funding Sources ^ Preliminary revenue estimates for fiscal year 2005-06 are conservative with 2°~ to 3% projected overall increase Fund Balance Facts ^ Largest influx of cash to local governments comes between November and January of each year when the majority of property taxes are paid . In other words, we have reached our "peak" with regard to collections for the current fiscal year ^ Fund balance serves as "cash safety net" and enables entities to: . "Pay the bills" during slower revenue collection periods and . Meet unforeseen needs should they arise ^ Local Government Commission (LGC) strongly recommends that agencies maintain at least 8°/n of prior year expenditures in available fund balance to meet current obligations and prevent unit from experiencing cash flow difficulties ^ County's current fund balance level is 9.59% of actual expenditures {$129.2 million) . About $12.5 million Available Fund Balance County Trend Compared to Statewide Average (1) Orange County Expenditure Update and Outlook 2004-05 Budget by Component Original Budget 7ofa/ed $736.4 Million Expenditure Reductions and Savings To-Date ^ With adoption of 2004-05 County budget, Board directed staff to identify $400,000 in expenditure reductions to off-set additional decrease of .4 cent in the recommended tax rate . Savings realized to date . Lower than anticipated health insurance renewal rates - in the neighborhood of $300,000 . Lower than anticipated debt service -around $85,000 . Hiring delays of vacant positions -between $550,000 and $600,000 Current Year Expenditures ^ Overall, expenditures for all departments are in-line with where we should be at mid-year ^ Closely Watching Public Assistance . Examples include Parks and Recreation, Public Safety, Information Technology/E- government, Mental Health Transition Debt service for currently programmed debt . Projected increase around $5.1 million over next 5 years What Is Meant By Sustainability? ^ Ability to . Financially sustain existing critical services to citizens as new initiatives are considered . Retain stable, qualified, competent, flexible work force . Carefully correlate operating and capital expenditures for all initiatives or projects . Put infrastructure in place to meet citizen expectations for service delivery . Balance resources for all major functions such as education, public safety and human services ^ All in context of County's organizational mission, legal responsibilities and available resources Donna Dean explained that the sales tax payment they received last week was about half of what the previous three months had been. She called the State, who told her that it was due to refunds made to agencies. Chair Carey signed a letter requesting information from the Department of Revenue, and there will be an update once this information is received. Commissioner Halkiotis asked for an explanation of "refund to agencies." Donna Dean said that they are tax-exempt agencies that pay sales tax and then the State refunds the sales tax. School systems are an example. Commissioner Halkiotis asked for a figure and Donna Dean said that last month they received $1.5 million and this month it was a little less than $800,000. Finance Director Ken Chavious said that the County's awn sales tax refund this year was $250,000. Commissioner Halkiotis is concerned that it has taken a letter from the Chair to get clarification. Donna Dean said that it is a statutory requirement to send a letter if additional information is requested. Continuation of presentation. Commissioner Jacobs asked Chair Carey if there was any discussion at the County Commissioners' association meeting about the possibility of a statewide school construction bond. Chair Carey said that it was discussed, and the board of the association decided that it would work with the school board association. It was not one of the three top priorities for counties, but it is important. He said that the Medicaid issue was more important, because there are ten counties where Medicaid is costing more than education. Donna Dean said that the budget association has had some discussions and there seems to be support for the statewide bond issue, but the state does not have any money to pay the debt service on it. The rationale on the lottery was that it would be a way to pay the debt service. Chair Carey confirmed with Donna Dean that the figures assume that the '/-cent sales tax is going away. Even if it is not sunset, there will still be a shortfall. John Link said that there was no presentation on Capital Investment Planning, Implementation of CountylSchool Capital Funding Target, and the bond issue potential. Under tab 1 of the notebook, there is a resolution that the Board adopted related to the capital investment target of 60140. Also included is the letter from the Chapel Hill-Carrboro City Schools regarding the target. Capital Investment Planning Implementation of CountyiSchool Capital Funding Target Jahn Link said that when they come back with a staff analysis of these issues, particularly the mix of revenues when they prioritize the projects, they will speak to each of the major funding sources of the subset of activity as the Board looks at the target of 60140. He said that there are factors that the Board has to consider that all together create a structure for how to ultimately reach the priorities to fund. He thinks that putting the priorities in place is essential before proceeding. Commissioner Jacobs said that the scheduled CIP work session is not until March 22nd, so it would be difficult to follow the timetable that was followed before. John Link said that even if there is a band referendum this year, nothing could be done with it until the next two years anyway. He believes that Elementary #10 can still be addressed. Commissioner Halkiotis agreed with Commissioner Gordon that in looking out the next ten years, the Orange County school system does not need any new buildings, but the Chapel Hill-Carrbaro City school system will probably need something. The bond will be a hard sell far some people in the OCS district, and he thinks the County should be proactive and get a small group of elected officials right now with both school boards, the Manager, and the staff to have some preliminary discussions. Chair Carey agreed with Commissioner Halkiotis, but said that regardless of what is done, there has to be priority lists from bath school systems and the County far the next ten years. Also, even if a school bond is passed this year, the County could not sell the bonds until two years from this fall because of the debt policies. It might take some time far all entities to establish the priority lists. There is also a tremendous public education effort that has to happen. He thinks there is not enough time to do it this year, based on what he is hearing. Commissioner Jacobs said that instead of putting together a group to talk about the schools' priorities, he suggested using the school collaboration group and then coming together at the joint meeting in April. Commissioner Gordan made reference to CHCCS Elementary School #10 and said that it was supposed to be funded in the last bond, and they were proceeding on the assumption that it would be funded from alternative financing. John Link said that he misspoke, and elementary school #10 would be funded with alternative financing, as Commissioner Gordan stated. Jahn Link said that this reinforces that the Board needs to be more aggressive in examining haw to spend the $12.8 million set aside for Elementary #10. There are additional needs for Middle School #3 and High School #3, and also for the senior centers and the animal shelter. The real question is when the County does need a bond referendum and for what purpose. 2. SCHOOLS Updates A. Educational Excellence Study Report and Recommendations Dr. Madeline Grumet said that they are close to completion of the report. She said that they were funded with $25,000 in July to do the work, and they have been careful to work closely with the Educational Excellence Task Force, which is composed of the two school superintendents, Commissioners Jacobs and Halkiotis, John Link, and Rod Visser. Bill Friday was able to attend the first two meetings. The first thing that they did as a group was to negotiate the kinds of questions that they might examine. They did not want to stress the schools, but they felt that it was important to speak to each school principal in the two districts. They had an intuition, which turned out to be correct, that in many cases the differences among schools within a district were more significant than the differences between the two districts. She said that the two school districts were excellent. They spent a lot of time looking at the school report card data and the achievement data. She said that they are struggling to get Rod Visser gave some history of the collaboration work group. He said that it is amazing what has been accomplished over the last year with collaboration initiatives. Same examples include middle college, shared college fairs, discussions about changing the structure of middle school athletic programs, discussions about after school programs, discussions about block scheduling and learning from each other, etc. Chair Carey pointed out that Commissioner Jacobs was a big part of the process in the past year. Commissioner Jacobs said that it has not been easy, but it has been productive. He thanked John Link and Rod Visser and said that John Link has been goad at articulating the County's position. He said that they have been talking about moving ahead with other issues and have even considered having a facilitator. He said that they have talked about feeling equal and not putting on a County Commissioners' show. He has no problem giving the group some of the substantive issues. Chair Carey said that they did discuss the utility of continuing to have a facilitator and concluded that it was good. Commissioner Gordon said that she would like to see the group make a formal report to the Board of County Commissioners with a list of the accomplishments and next steps. She would like for the Board of County Commissioners to bring some clarity to the process and adapt a formal charge, and then prioritize what to send to this group and what to discuss as County Commissioners. This could be done in time for the joint work session with the school boards in April. Chair Carey said that the group did discuss the sharing of information with all three boards. This would be done before the joint meeting with the school boards. Commissioner Halkiotis said that another possible area for collaboration is a construction manager. A few years ago there was a study about construction management, and there was no resolution. He met with Purchasing and Central Services Director Pam Janes about what a construction management position could do far Orange County government and the proposals coming online within the next few years. He coupled this with what they learned at the Durham Tech meeting last week, that Dr. Phail Wynn has already hired his own construction management person for Durham Tech projects. He said that this is another opportunity for the two school systems and the County to hire one person to be the eyes and ears for the citizens of the County on construction projects. The costs would be split. There would also be potential savings in construction oversight work of architects. This person could also look at indoor air quality issues and other facility based issues. Commissioner Jacobs suggested adding this position to the County's budget, whether or not the school systems want to work with the County. John Link suggested that the funding of this position be a part of the project budgets themselves. He pointed out page 2 of attachment 2C2, the follow up to the minutes of the last meeting an January 20th. He said that the Board needs to begin working on same things such as #4, a new paradigm for School Resource Officers and #5, after school programming. Also, the Board should discuss school construction standards. He has encouraged the two school boards to make SRO's a budget item in June. He does not understand haw it has morphed into a contract relationship. It is a law enforcement function to take care of our citizens while they are at school. Also, the County now provides funding for after school programming only through one venue, which is the Communities in Schools contract. This collaboration group looked at certain functions that may need to be outside of the per pupil funding. Chair Carey said that these discussions might require other jurisdictions to get involved. He said that the group talked about having the SRO issue being discussed at the next joint meeting with the school boards. Chair Carey said that he has heard that the County Commissioners want the group to be recharged to address some of the substantive issues. 3. COUNTY (The BOCC will need to prioritize discussion of the items below during the retreat meeting. Some may be selected for future work sessions. Others may simply be acknowledged as they appear in written form without discussion.) A. County Space Planning Committee Commissioner Halkiotis and Commissioner Jacobs are working with Pam Jones, John Link, and others and will bring forth a report in the near future. There have only been two meetings. There should be a report in the next six weeks. B. County Human Rights and Relations Department Future Rolellnitiatives Commissioner Gordan said that this is an the agenda for January 24t". It will be discussed at that time. C. Mental Health Reform/Selection of New Area Director Chair Carey said that this is moving forward. Commissioner Brown was the representative an the board, and a new Commissioner needs to be appointed. The representatives from Person County have asked that he (Commissioner Carey} be appointed to this board. John Link said that the next meeting of the Joint OPC Mental Health Board and the new Lead Management Board would be January 25t". At that meeting, they will address some employee retention issues. There will be a report by Personnel Director Elaine Holmes on this process for selecting the person that will be, between now and the end of June, the OPC Mental Health Director. The same person will become the LME Program Director on July 15t. The appointment of two County Commissioner representatives to this group is extremely important. Chair Carey pointed out that the Interim Director, Judy Truitt, was in attendance. Commissioner Halkiotis said that this is so very important and that Chair Carey needs to be at the meeting on Tuesday night. Chair Carey said that he might not be able to be there. Judy Truitt thanked the Board of County Commissioners and said that the collaborative efforts between Orange, Person, and Chatham Counties will go down in the books as one of the greatest efforts undertaken. It is remarkable that within the last calendar year, the three counties were able to develop, negotiate, and adopt interlocal agreements. Also, work has been initiated on adoption of bylaws for the new management structure, and should be adopted in January. Commissioner Halkiatis suggested asking the People's Channel to look at how to put up some position openings like this as well as boards and commissions as part of their telecast procedures. 4. LUNCH At 12:05pm ,there was a lunch break. The meeting resumed at 12:45 p.m. 5. County Updates and New Initiatives Continued D. Abatement of Junk Car Nuisance Process (ala: Hoyle King} John Link said that Craig Benedict would provide an update. He made reference to the memorandum from the attorneys making sure that what the County says it is going to do that it stakeholder in County departments, advisory boards, or agencies. This was held on November 1$t" and 29 people attended. The staff will provide a report of this stakeholders meeting. G. Recreation and Parks Strategic Plan (also scheduled for February $, 2005 work session) John Link said that Commissioner Jacobs and Commissioner Halkiotis are working with this group. Recreation and Parks Director Lori Taft said that she hopes to present the report to the Board on February 8t". She said that the basis of the report is each park project with a timeline. The projects fluctuate in time. She said that it was a sliding scale of needs and expectations. They are investigating the possibility of contracting out some services that would otherwise require full-time staff. They have also discussed a conceptual idea of what might be included in the proposed Blackwood Farm Park, or New Hope Park. There is no timeline ar funding in place for it, but it is part of the report as an idea. There is a passibility of a County nursery to grow landscaping stock to supply County projects. They also hope to bring forward a position that was delayed from June until January. Commissioner Halkiotis said that he is not sure that the County can afford the ultimate plan. He thinks it is ambitious, but he would hate for it to be unrealistic. He would like to look at ways to do it in a "Bob Segal" fashion. Commissioner Gordan said that she was not clear on the future use of Blackwood Farm and she was surprised that this group was talking about that site. She would like other groups brought in to discuss it. Commissioner Jacobs said that staff brought up the ideas and the two Commissioners did not talk about this. It was just the department's conception. Chair Carey asked if the Board would discuss the future role of the Recreation and Parks Advisory Committee on February 8t". He would like to discuss this. Someone has resigned and this person had concerns. Commissioner Halkiotis said that this is a tough issue. The Board needs to understand the perception of boards and commissions. Commissioner Halkiotis commented that the Little River Park has been unbelievably successful. He has encouraged the staff to take pictures and get counts of the people that are coming. There are issues with parking. He thinks the people are sending a clear message and they want to go to the park. Commissioner Jacobs said that they have also asked for a survey to see where people are coming from and they need to expedite the conversation about caretakers. Commissioner Jacobs made reference to the revised charge far RPAC and said that right now all of the conceptual planning for parks is with ERCD, and it is more than they can handle. The two departments might want to talk about altering the system to make some parts more recreation driven and others more driven toward ERCD. John Link said that he, Commissioner Jacobs, and Donna Baker met with the chairs of the boards and commissions at the orientation meeting. It is an ongoing challenge to define the roles of boards and commissions. New Initiatives H. Creation of a Unified Transportation Advisory Committee Craig Benedict said that this was brought up last spring. Presently, there is a Transportation Services Board that addresses human services needs of Orange Public Transportation. The emphasis is how to tie in transportation needs in general to a municipal, to a county, to asub-region MPO level, to a regional TTA level. There have been recommendations from various boards to form a Unified Transportation Advisory Committee to 7. BOCC MATTERS A. Commissioner Assignments to County Boards And Commissions Commissioner Halkiotis said that no one should serve on a group that they are not interested in serving on. He suggested that if someone feels strongly about a board and commission they want to stay on, then they should stay on it. He feels strongly about staying with the Partnership for Young Children. He also has enjoyed serving on the task force for the Senior Center Design for Southern Orange. He is also interested in serving an something far the central and northern orange senior center. He has always had trouble getting to the meetings of Communities in Schools because of the meeting hours. He is also interested in methane gas and innovative and creative recycling efforts. He is not interested in transportation. Chair Carey agreed and said that someone should not be assigned to a group that they are not interested in. Commissioner Gordon said that her previous proposal opened it up so that people could serve and also allowed people to stay on boards where there was an on-going relationship. She is Vice Chair of the Durham-Chapel Hill- Carrboro Transportation Advisory Committee and Vice Chair of the Triangle Transit Authority Board of Trustees. She would at least like to stay with these boards. Commissioner Gordon suggested that Commissioner Foushee keep Commissioner Brown's list and then go round robin where everyone chooses, if that is the Board's pleasure. Her proposal is that everyone keep the boards and commissions they are really interested in. However, after the three, lots could be drawn for the boards and commissions one at a time. Commissioner Foushee agreed with everything that was said. She is willing to become a part of Commissioner Brown's boards. She is interested in Communities in Schools. Commissioner Halkiotis said that he thinks Chair Carey would be good for the OPC Area Board. Commissioner Halkiotis said that he does not want to draw straws on something that he does not want to be a part of. Chair Carey explained that the lot was for the order in which the County Commissioners would pick which ones they want to serve. He suggested starting with two that each Commissioner wishes to serve on. The County Commissioners picked two boards and commissions that they wanted to keep and then drew lots on the order of picking the third choice, and so forth, of the boards and commissions an which they wanted to serve. All choices are listed below. Commissioner Gordon: Durham-Chapel Hill-Carrboro Transportation Advisory Committee TTA Board of Trustees Intergovernmental Parks Work Group Project Planning Committee (Chapel Hill/Orange County PPC} Recreation and Parks Advisory Council CHTPEC Master Plan Wark Group Justice Facilities Exterior Planning Committee NACo Voting Delegate Chatham -Orange Work Group Durham-Chapel Hill -Orange Work Group (alternate} Southern Orange Senior Center {New) -Design Committee Transportation Services Board Triangle J Council of Governments (alternate) Solid Waste Advisory Board Southern Orange Senior Center (New) -Design Committee Chair Carey: OPC Area Board OrangeJChatham Justice Partnership Board Board of Health Chapel HiIIJOrange County Visitor's Bureau Durham Technical Community College Satellite Campus Advisory Committee for Programming Needs Assessment Animal Services Advisory Board Chapel Hill Public Art Selection Committee Durham -Chapel Hill - Carrbaro Transportation Advisory Committee (alternate) HillsboroughJOrange County Chamber of Commerce {change to liaison) Justice Facilities Interior Planning Committee Joint Orange Chatham Community Action Agency OPC LME Advisory Board Research Triangle Regional Partnership Triangle Transit Authority -Special tax Board Upper Neuse River Basin Association Commissioner Gordon also chose the Department of Transportation Committee but then Commissioner Halkiotis said that this was just an informal group. Commissioner Halkiotis asked for the list of sunset groups. B. IT Service Support for BOCC members Todd Jones said that at the Board's request, he put together a list of technologies and different options for consideration. Chair Carey said that he had some of these people at his house installing some things and they did a goad job. Commissioner Jacobs said that he put this on the agenda. He had a meeting in October about issues with technology. He is bothered that Commissioner Halkiotis does not feel that he can trust his email. All of the County Commissioners have different capabilities as individuals and with equipment. He thinks they should look at newer technology. He suggested having some kind of wellness program with regard to viruses. He would like something more cohesive. He suggested that the person on the IT committee from the Board could work with staff, or possibly the Chair and Vice-Chair. Commissioner Halkiotis said that he does not have time to separate garbage emails from legitimate ones. He is tired of being infected. He would be delighted to have some kind of instant text messaging or far people to just call him. He suggested having Todd Jones bring some examples of the new technology. Chair Carey suggested putting together a list of what the County Commissioners currently have and how to develop a standard package. 8. MATTERS RAISED AT RETREAT, NOT PREVIOUSLY SUBMITTED None 9. RETREAT PROCESS EVALUATIONICOMMENTS Betsy Polk went over the follow up matters: Setting priorities and communicating priorities to the public; in future meetings, allowing more time for discussion of the educational excellence study and perhaps holding a separate meeting to discuss this; an agreement with the County regarding the financial efficiency report will be included on Monday's agenda; a construction oversight manager for Orange County Schools, Chapel Hill-Carrboro City Schools, and County projects; look at applications for citizen positions with The People's Channel; discuss the library siting and parks services at future meetings; make the conscious decision about the library site; and renew updated committees list. 10. GO HOME AND COLLAPSE The meeting was adjourned at 3:05 p.m. Moses Carey, Jr., Chair Donna S. Baker Clerk to the Board