HomeMy WebLinkAboutMinutes - 20050331 - 1
APPROVED 5/3/2005
MINUTES
ORANGE COUNTY BOARD OF COMMISSIONERS
March 31, 2005
7:30 p.m.
The Orange County Board of Commissioners met for a closed session/work session on
Thursday, March 31, 2005 at 5:30 p.m at the Government Services Center in Hillsborough,
North Carolina.
COUNTY COMMISSIONERS PRESENT: Chair Moses Carey, Jr., and Commissioners
Valerie P. Foushee, Alice Gordon, Stephen Halkiotis and Barry Jacobs
COUNTY ATTORNEYS PRESENT: Geoffrey Gledhill and S. Sean Borhanian
COUNTY STAFF PRESENT: County Manager John M. Link, Jr., and Clerk to the Board
Donna S. Baker (All other staff members will be identified appropriately below).
NOTE: ALL DOCUMENTS REFERRED TO IN THESE MINUTES ARE IN THE
PERMANENT AGENDA FILE IN THE CLERK'S OFFICE.
(5:30-6:00) Dinner
1. Closed Session
Chair Carey opened the meeting by asking everyone to bow their heads in a moment of
silence for Rene' Campbell, who was the Director of the Chapel Hill/Orange County Visitor's
Bureau and who passed away this week.
A motion was made by Commissioner Halkiotis, seconded by Commissioner Jacobs to go into
closed session for the purpose of:
a) "To discuss the County's position and to instruct the County Manager and County
Attorney on the negotiating position regarding the terms of a contract to purchase real
property owned by Duke University and located on Erwin Road for the purposes of
Parks and Recreation/Open Space," NCGS § 143-318.11(a)(5).
b) "To discuss the County's position and to instruct the County Manager and County
Attorney on the negotiating position regarding the terms of a contract to purchase real
property," NCGS § 143-318.11(a)(5).
VOTE: UNANIMOUS
A motion was made by Commissioner Halkiotis, seconded by Commissioner Jacobs, to adjourn
back into regular session at 7:41 p.m.
VOTE: UNANIMOUS
Chair Carey went through the handouts with changes. The yellow sheet is a revised
membership list for the Hillsborough Board of Adjustment. The lavender sheet is attendance
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records for the Orange County Planning Board. The orange packet is information regarding
boards and commissions from the Orange County Democratic Women and their interest in
seeing more women appointed to boards and commissions.
Chair Carey announced that in the closed session, the Board decided to participate as a
partner in the acquisition of the property included in the Erwin Trace proposal in order to preserve
the New Hope Corridor. The staff is currently drafting the specific language to be released to the
media and the other partners at the end of their meeting.
2. Appointments
a) Equalization and Review Board - New Appointments
Commissioner Gordon nominated Pamela Davis and Janet Sparks.
Commissioner Jacobs nominated William Crowther.
A motion was made by Commissioner Gordon, seconded by Commissioner Foushee to
appoint Pamela Davis, Janet Sparks, and William Crowther with terms ending August 30, 2005.
VOTE: UNANIMOUS
A motion was made by Commissioner Jacobs, seconded by Commissioner Halkiotis to
appoint William Crowther as Chair of the Equalization and Review Board.
VOTE: UNANIMOUS
A motion was made by Commissioner Gordon, seconded by Commissioner Jacobs to
appoint the following as alternates to the Equalization and Review Board:
Term Ending
Margaret Brown Equalization and Review Board 8/30/2005
Lee F. Butzin Equalization and Review Board 8/30/2005
Thomas H. Heffner Equalization and Review Board 8/30/2005
John Timothy Kepley-Equalization and Review Board 8/30/2005
Jerry L. Kruter Equalization and Review Board 8/30/2005
Reginald Morgan Equalization and Review Board 8/30/2005
Paul Snow Equalization and Review Board 8/30/2005
Claire G. Williams Equalization and Review Board 8/30/2005
VOTE: UNANIMOUS
b) Orange County Recreation and Parks Advisory Council - New Appointments
Commissioner Gordon explained that since Deborah Judd, Position 6, lives in Cheeks
Township, the RPAC suggested that her label be changed to Cheeks Township instead of At-
Large. Position 12 will be At-Large.
Commissioner Gordon nominated Annie Lux to the At-Large vacancy, Position 7, with a
term ending March 31, 2008; and suggested changing the label of Deborah Judd from At-Large
to Cheeks Township.
Commissioner Jacobs nominated Patricia Schmidt to the At-large vacancy, Position 12
(vacated by Ms. Judd) with a term ending March 31, 2007. Commissioner Foushee seconded
both of the motions.
VOTE: UNANIMOUS
c) Orange County Planning Board - Four Reappointments
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A motion was made by Commissioner Foushee, seconded by Commissioner Jacobs to re-
appoint the following to the Orange County Planning Board:
Name Expiration Date
Craufurd D. Goodwin 3/31/2008
Timothy Webb 3/31/2008
Sandra Johnson Quinn 3/31/2008
Renee Price 3/31/2008
VOTE: UNANIMOUS
d) Chapel Hill Planning Board - One New Appointment
A motion was made by Commissioner Gordon, seconded by Commissioner Jacobs to
appoint James Stroud with a term ending June 30, 2008.
Chair Carey said that Mr. Stroud made a request that he would prefer to be removed from
the Chapel Hill Board of Adjustment, to which he was appointed on March 24, 2005, and he
would prefer to serve on the Chapel Hill Planning Board.
VOTE: UNANIMOUS
e) Hillsborough Board of Adjustment—One New Appointment
A motion was made by Commissioner Jacobs, seconded by Commissioner Halkiotis to
appoint Tommy Sikes to the Hillsborough Board of Adjustment.
VOTE: UNANMOUS
3. Change in BOCC Regular Meeting Schedule
The Board considered one change to the County Commissioners' regular meeting calendar
for the year 2005.
A motion was made by Commissioner Gordon, seconded by Commissioner Halkiotis to
approve amending the BOCC regular meeting calendar by adding a closed session on
Wednesday, April 20, 2005 at 5:30 pm at the Government Services Center, 200 South Cameron
Street, Hillsborough, North Carolina, for the County Attorney's annual evaluation (prior to the 7:30
p.m. Work Session at the Government Services Center).
VOTE: UNANIMOUS
4. Application for Grant from the Federal Farm and Ranch Land Protection Program for
Agricultural Conservation Easements
The Board considered authorizing staff to submit a grant application to the US Department
of Agriculture's Farm and Ranch Land Protection Program for the purchase of farmland
preservation conservation easements in Orange County, in an amount to be determined, not to
exceed $800,000.
A motion was made by Commissioner Gordon, seconded by Commissioner Foushee to
approve authorizing the County Manager to submit a grant application to the Federal Farm and
Ranch Land Protection Program in an amount to be defined but not to exceed $800,000 prior to
the April 4th deadline, with County matching funds to come from alternative financing for
conservation easements.
VOTE: UNANIMOUS
5. County Space Study Report
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The Board received and discussed a report on the Orange County Space Needs Update.
John Link said that in 2000, Commissioners Brown and Gordon and the staff looked at the
space needs for County functions through the year 2010 and produced a report with a plan for
meeting county space needs. The Board decided to update this plan since it has been five years.
Commissioner Jacobs and Commissioner Halkiotis have worked with the staff in the last few
months on this update of the projections for space needs through 2020.
Purchasing and Central Services Director Pam Jones made the PowerPoint
presentation.
Purpose
• Update 2000 report to get accurate picture of current departmental space needs
• Create a fundable road map for developing adequate space through 2020;
• ID areas of additional study or those that fall outside of the study period
Assumptions/Principies
• Co-location
• Consolidation
• Ownership
• Reassignment of space to Courts function
• Green Building Practices
• Cost Estimates
New Functional Groups
• Parks/Open Space
❑ Recreation and Parks
❑ ERCD
❑ Arts Commission*
• Agriculture Services
❑ Cooperative Extension
❑ Soil and Water
• Animal Services
❑ Animal Services Director
❑ Animal Control
❑ Animal Shelter
Assumptions/Principles
• Co-location
• Consolidation
• Ownership
Assumptions
■ Existing sites of our major facilities are at development capacity
❑ No expansion at Government Services Center
❑ No or minimal expansion at Whitted Center
❑ No expansion at Planning &Ag Building
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■ Need to add new real estate for relocated county campus
Consolidation to New Campus
■ Study proposes development of a new campus at a site yet to be identified
❑Hillsborough area
❑Sufficient acreage to locate facilities proposed in Study
Proposed New Buildings on New County Campus
• Land Related Departments
• Library
■ 9-1-1- Center
■ Administrative Building
Assumptions/Principles
• Co-location
• Consolidation
• Ownership
Rent History
■ 2000
❑Nine leases
❑$487,891 annual cost
■ 2005
❑Five leases
❑$349,724 annual cost
■ Estimated at$200,579 after senior centers are completed
Leased facilities:
• Moody Building—Carrboro
•All Court offices
•Leased part of facility to Intensive Probation
• Galleria
❑Lease payments will cease upon completion of new senior center.
• Meadowlands
❑Lease payments will cease upon completion of the Central Orange Senior Center
• Carr Mill Mall
❑Dental Clinic and Public Defender
• Child Support Enforcement offices, Hillsborough
• Various solid waste convenience center sites
Assumptions
■ Downtown County offices will be systematically vacated to accommodate the Court system
growth throughout the study period.
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Space Reallocation to Court Svstem
• Courthouse expansion limited to Phase I
• Longer-term court support needs to be met through reallocation of downtown County offices
• Potential sequence of reallocation:
•Sheriff's Office
•Government Services Center Annex
•Potentially, Court Street Annex
•Eventually Government Services Center
Assumptions
• In general, priorities remained intact, with exceptions cited as discussion progresses
• New facilities would employ green building standards
Criteria for Tier Placement
• Overcrowded facility
• Growth, with no recent new space
• Improved service/collaboration
• Reduced rental costs
• Long-standing need
Conditions in Current Space
• Insufficient space for staff
• Inadequate storage space
• Lack of meeting space
• Inadequate Parking
❑ Paving lots would maximize parking
❑ Paving lots would minimize safety hazards for clients
Phases of Development
• Construction of Tier I projects begin by 2010
❑ 1A" begun within 2 %2 years of facilities plan approval
❑ 1 B" project begun mid 2008-2010
• Construction of Tier II projects begin by 2015
❑ "A"=2011-mid 2013; "B"=mid 2013--2015
• Construction of Tier III projects begin by 2020
❑ "A"=2016-mid 2018; "B"=mid 2018--2020
Cost Estimates
• Provided to indicate magnitude of project
• Based on known circumstances with recent construction in area
• Projects within two years of development commencement may need professional cost
estimator to gauge current conditions
Building Configurations
■ Considered functional groups
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• Departmental Projections
• Meeting Room Needs
• Circulation Factor
■ = Projected Building Size
Departmental Projections
■ Calculations based on room usage:
❑ General:
120-144 s.f.
• Intermediate (supervisor/workroom):
180-225 s.f.
• Large (department head/workroom):
225-300 s.f.
Meeting Rooms
■ Based on 25 s.f. per person capacity
■ Storage for tables, chairs and meeting supplies included
Circulation Factor
■ "Circulation factor" of 30% added to departmental square footage to accommodate:
•Hallways
•Restrooms
❑Mechanical/Electrical rooms
❑Other shared public spaces (lobby for e.g.)
Land Services Building
(Report page 58)
• Tier 1A
• Location:
New Campus
• Est. Size: 56,000 s.f.
• Est. Cost: $11 mil ($195-200 per s.f.)
• Departments:
• Planning/Inspections
• Health Dept.— Environ. Health
❑ Economic Development
❑ County Engineer
❑ Tax Assessor
❑ Revenue Office
• Register of Deeds
• Land Records
Agriculture Services Building
■ After Land Services Building is completed, existing Planning and Ag Building would
house Agriculture Services Departments:
•Cooperative Extension
•Soil and Water
•Non-County Tenants:
■ USDA Rural Development
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■ Farm Service Agency
Animal Services Building
(Report pane 59)
• Tier 1A
• Location: To be determined
• Est. size: 25,000 s.f.
• Est. Cost: $5 million
• Departments:
❑Animal Services
❑Animal Shelter
❑ Animal Control
Solid Waste Operations Center
(Report page 59)
• Tier 1 A
Location: Eubanks Road on Landfill property
Est. size: 6,000 s.f.
Est. cost: $1 million
• Solid Waste Administration
• Recycling
• *Sanitation
(Concept plan heard on April 12th by the Board of County Commissioners)
Library
(report page 60)
• Tier 1 B
• Location:
New County Campus
• Est. size: 55,000 s.f
(includes 10,000 s.f. for Heritage Center)
• Est. cost: $11 million
• Location of Main Library
• Cybrary/branch left on Whitted campus
Southern Human Services Center(Report page 61)
• Tier 2A
• Location: Homestead Road, Chapel Hill
• Est. size: 17,000 s.f. (addition to existing building)
• Est. cost:
$3.2 million
• Expands space for current occupants:
❑ Social Services
• Health Department—Personal Health clinic
• Housing and Community Dev.
• Child Support Enforcement
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Dental Clinic at SHSC
(Report page 61)
• Tier 2A
• Location: Homestead Road, Chapel Hill
• Est. size: 8,000 s.f.
• Est. cost:
$1.8 million
• Relocate from leased space at Carr Mill Mall
• Current lease cost for space occupied by dental clinic is approx. $55,000/yr. (lease for entire
space, including Public Defender is $105,000)
• SHSC Master Plan
(Report Page 62)
Parks/Open Space Building
(Report page 63)
• Tier 2A
• Location: Blackwood Farm (per strategic plan)
• Est. size: 9,400 s.f.
• Est. cost: TBD
• Departments:
❑ Recreation and Parks
❑ Environment Resource Conservation Dept.
❑ Arts Commission
Parks/Open Space Interim Steps
• Orange Enterprises Building to be upfit to create sufficient office space to accommodate
ERCD and Recreation administrative staff.
• Parks Operations base to be relocated to this facility from leased space one block over.
• Project could be ready to occupy close to the August 1, 2005 lease expiration of the
current parks operations base location.
• Space vacated by ERCD at the Planning &Ag Building would be reallocated to high
need areas.
Pictures of interim Park/Open Space
Emergency Management/
9-1-1 Center(Report page 64)
• Tier 2B
• Location:
New County Campus
• Est. size: 16,000 s.f.
• Est. cost:
$3.2 million
• EM Divisions:
❑ Administration
❑ Fire Marshal
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❑ Emergency Medical
❑ Communications
Emergency Management pictures
Emergency Management Interim Steps
• Primary space constraints in communications division.
• Recommend relocating the administrative staff of Emergency Management and the EOC
function to a building being considered for acquisition by the County.
• Allows entire basement area to be occupied by communications
• Allows entire upper floor to be occupied by Emergency Medical personnel.
Information Systems: Interim Step
■ IS could be re-located, along with Emergency Management Administration and EOC to
building proposed for acquisition by County
■ Provides adequate office space for 2010
■ Provides opportunity for shared EOC/Training room
Public Works Administration and OPT (Report page 64)
• Tier 2B
• Location: Public Works site
• Est. size: 7,000 s.f. (expansion to existing PW admin bldg)
• Est. cost: $989,000
• Departments:
❑ Public Works
❑ OPT
Motor Pool Expansion
(report page 64)
• Tier 2B
• Location:
Public Works site
• Est. size: 5,000 s.f.
(addition to existing)
• Est. cost: $750,000
Whitted Human Services Center
(Report page 65)
• Tier 3A
• Location: 300 W. Tryon, Hillsborough
• Est. size: 9,600 s.f.
• Est. cost: $1.9 million
(does not include renovation of Library space)
• Departments:
❑ Health Department
. Personal Health clinic
. Dental Clinic
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. Administration
❑ Social Services
❑ Housing and Community Dev.
❑ Cybrary/branch Library
Recommendations for Whitted Bldg.
• Upfit space to be vacated by Library for reallocation to Health and DSS
• Construct connector between Building A and B that would serve as new entrance and
provide operational benefits
Administration Building
(Report page 66)
• Tier 3B
• Location:
New County Campus
• Est. size: 35,000 s.f.
• Est. cost:
$7.2 million
■ Departments:
• County Manager
• County Commissioners
• Finance
• Budget
• Personnel
• Purchasing & Central Services
• Elections
• Human Rights and Relations
Administration Interim Steps
• After Land Services department relocate to new campus:
❑ County Manager and County Commissioner offices expand at GSC
• Relocate to GSC:
❑ Finance
❑ Budget
❑ Personnel
• GSC-Annex reallocated to Court system
• Board of Elections could move to GSC IF sufficient space is available at time of move.
• IF Elections moves, then Court Street Annex could be reallocated for Court system use
Not Included in Study
• Chapel Hill Court facilities
■ Assessment of needs recommended as separate study
• Jail and Courthouse
■ Recommend Detention Facility Assessment to follow after Chapel Hill study
• Non-departmental Agencies
■ Continue to address as needed
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Recommended Next Steps
• Endorse the space study in principle and advise staff of any changes that should be made
to the study, with particular attention to the recommended projects and the respective
timeframes
• Direct staff to include a placeholder in the 2005-2015 CIP for FY 2005-2006 for debt
service related to land acquisition of a new County campus
• Direct staff to include a placeholder in the 2005-2015 CIP for FY 2005-2006 planning
money to develop a master plan of a new County campus.
On-Going Efforts
• Systematically update an approved space study per BOCC decisions about projects
❑ Library Task Force Report
❑ Parks Strategic Plan
• CIP process to include expanded review of projects within two year development window
• Current space group reviews County acquisitions, including parks for potential uses
Commissioner Jacobs thanked Commissioner Gordon for her work on the previous
County Space Needs report and also Pam Jones. He made reference to the Solid Waste
Operations building. There has been some discussion about where to store deconstruction
materials and whether it would be associated with the Solid Waste facility. He said that this
should be acknowledged somewhere. He said that it could be incorporated into the green
building because deconstruction involves a reuse of materials.
John Link said that the staff spoke about this today with the Solid Waste staff and their
CIP. He expects that they will be talking about how deconstruction material is folded into the
overall plans.
Commissioner Jacobs said to mention the downtown library branch in Carrboro because
it was part of the adopted library plan.
Commissioner Halkiotis commended Pam Jones for her work. He said that there is a
challenge in all of this to make sure that this update is not put on a shelf. He made reference to
the employees' luncheon he attended and said that there are not as many vacancies in
telecommunicator positions this year. This is part of the space need component because EMS
is growing. He said that everything the County has constructed from the County's perspective
has been frugal and limited. In the last 18 years, the County has not gone over$15 million for
new construction for County buildings. The County will have to face issues of the animal
shelter, the EMS center, the courthouse, and the jail.
Commissioner Gordon pointed out that this is a continuation of a previous study. She
commended Commissioners Halkiotis and Jacobs for following up.
Commissioner Gordon flagged some items for future information and/or comments:
• Planning department, Environmental Health, and Emergency Management are top
priority needs
• Recognition that the County does not have enough land to accommodate needs
• She would like more information about the County campus with the square feet and
acreage needed, along with other parameters for siting the campus
• Timing for the three critical departments. She said that Emergency Management does
not have to be located on the new campus. She asked if it could be moved up to a
higher tier. She would like to see a one-page description with the costs.
• Planning department— relief is not coming soon enough
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• Functions—the functions listed on page 5 of the report may need to be changed. In the
previous County Space Needs Report, Land Services included more departments. She
likes the idea of consolidation, but she is troubled about Recreation and Parks
administration and ERCD going to the Blackwood Farm. She thought this was only a
park, not a place for county office buildings. She thinks these should be with the County
campus.
• Valley Forge—she asked why is the storage not going to be put there. She does not
believe this is an appropriate place for ERCD and other offices.
Pam Jones said that the other option is better for storage. She said that they had
envisioned taking part of the money from the parks operation base and storage facilities and do
a major upfit of the Valley Forge building so that it would be more of a professional building.
Pam Jones said that she talked with Dave Stancil, who said that he was aligned closely
with Land Services and Agricultural Services, but spent more hours with the Parks function.
Commissioner Gordon indicated that Dave Stancil spent less than half of his time with Parks
and Recreation.
Pam Jones said that the Recreation and Parks strategic plan is still a draft and when
they flesh that out it may be decided to put them with Land Services.
Commissioner Gordon said that ERCD might be better served by staying at the
Planning and Ag building until it comes time for it to go to the final destination. She would like
to see an effort for Planning and Environmental Health to get their new facilities sooner.
Pam Jones said that Planning is in Tier 1A, which means that construction should start
between 2005-mid 2008.
Commissioner Jacobs said that the County Commissioners should make a point to
adopt the things that need to be adopted soon (i.e., the Space Needs Study, the green building
standards, the Southern Human Services Center master plan). Regarding what is built when, it
will have to be fit into the CIP and then the debt capacity.
Commissioner Jacobs made reference to the issue with ERCD and suggested that Dave
Stancil put in writing what he thinks about it. He said that the short-term solution would provide
960 square feet of expansion for Planning and the long-term goal would be to bring the
functions back to the same place.
Commissioner Foushee agreed with Commissioner Jacobs on adopting parts of the plan
that are ready and move forward. She pointed out some of the offices that are not so visible as
far as needs, such as the Board of Elections and Economic Development and asked about
short term plans that could be made. Board of Elections especially has some storage issues.
Pam Jones said that this harkens back to the previous space study. When the
courthouse is finished, the Economic Development Department is scheduled to go down to the
Hillsborough Savings Bank. Board of Elections would take over the entire floor of the King
Street Annex.
Commissioner Halkiotis would like to take action to adopt this study. He encouraged the
staff to look at the facilities when it is raining and to take some pictures. He was at the Valley
Forge facility last week when it was raining and there was standing water. The County
Commissioners need to take a field trip to look at the facilities to see what uses will fit specific
properties.
Commissioner Halkiotis said the master plan for the Southern Human Services Center
should be decided by the Commissioners. Rich Shaw proclaimed the back portion of property
at the Southern Human Services Center as natural and sacred land. He thinks that the Board
of County Commissioners should make those decisions, which means the master plan in
tonight's packet is not correct.
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Pam Jones said that she thought that the Board already had the discussion about this
portion of land, and apologized for the changes.
John Link said that when the County Commissioners looked at the footprint for the
Senior Center at the Southern Human Services Center, there were areas identified as natural
areas but the Board did not make a decision that this portion would be off limits.
Commissioner Gordon said that she never remembers taking any of the building sites
off the Southern Human Services master plan. She agreed that it should be a decision of the
Board of County Commissioners.
Commissioner Gordon would like to put a higher priority on the justice facilities in Chapel
Hill. She also thinks the staff should be given a chance to make their viewpoints known before
the space plan becomes operational. Pam Jones said that department heads have seen this.
John Link said that to do the two to three major functions is $20 million. Many of these
County facilities are not what would be put on a bond referendum. There will have to be a pay-
as-you-go function or some kind of bank financing.
A motion was made by Commissioner Jacobs, seconded by Commissioner Foushee to
approve endorsing the space study in principle, with flags (below) which are to be discussed
further, and to advise staff of any changes to be made to the study; to direct staff to include a
placeholder in the 2005-15 CIP for FY 2005-06 for debt service related to land acquisition of a
new County campus; and to direct staff to include a placeholder in the 2005-2015 CIP for FY
2005-06 planning money to develop a master plan of a new County campus.
Flags: Functions (on page 5 of the Space Needs Update) may need to be changed
- Blackwood Farm uses
- Adoption of a master plan for the Homestead Road property
- Parameters for new County campus
- Valley Forge building and the question of appropriate uses for the facility
- Justice facilities in southern end of the County
- Matrix of costs and descriptions
- Emergency Management
- Location of the ERCD offices
VOTE: UNANIMOUS
6. Options for Implementing Capital Funding Policy Revisions Including 60-40
School/County Funding Target
The Board considered alternatives for potential changes to the existing Orange County
capital funding policy that will guide the development of County and Schools' Ten-Year Capital
Investment Plans for 2005-15.
John Link said that the Board has discussed the viability of allocating more resources for
repair and maintenance of existing County facilities as well as developing additional County
facilities. During November, the Board adopted a target for dividing capital funding where the
school systems would receive 60% of the capital funding and County facilities would be
addressed by the other 40%. Budget Director Donna Dean has tried to come up with rational
alternatives. There are four options.
There are two major points that have been discussed recently. One is looking at the
possibility of having the County incur the remaining debt for Cedar Ridge High School, relieving
the Orange County system of that responsibility. The other point is to look at how the County
functions would actually receive 40%. In order to make this work with existing revenue sources, it
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would have to include the involvement of recurring capital funding, now earmarked totally for the
school systems, which is about three cents.
Option four would be to remove the debt of Cedar Ridge from the Orange County
system as well as having the County reach its 40% share of existing revenue sources. He said
that, at a very minimum, the County Commissioners need to adopt a policy similar to the debt
policy that says that there will be a threshold, and within the threshold there should be a subset of
funding that addresses recurring capital needs.
Commissioner Gordon asked what was changed from the original sheets. She said that
she is pretty familiar with these kinds of spreadsheets, but did not think the sheets were clear.
Also they were produced with a small type font.
Donna Dean said that the only thing that was changed from the original
spreadsheets is the numbers for the current funding policy. None of the options changed.
Donna Dean explained the spreadsheets, which are incorporated by reference. She
explained the calculations of the current policy and each option as shown below in the
PowerPoint presentation.
Options for Implementing Capital Funding Policy Revisions
Including 60/40 School/County Funding Target
Directions from Commissioners
• Simplify current capital funding policy
• Provide additional resources for
• Repair, maintenance and upkeep of existing County facilities
• Additional County space and facilities
• Funding target of 60 percent of capital expenditures for school projects and 40 percent for
county projects
Examples of Staff Considerations in Developing Funding Options
• Which funding sources to include in formula (e.g. dedicated sales tax, general obligation
bonds, third party financing, etc.)
• Which funding sources not to include in formula (e.g. school construction impact fees, public
school building capital funds, etc.)
• Whether to include long-range capital only or incorporate recurring capital also
• Whether to remove Cedar Ridge High School debt from Orange County Schools side of the
formula and include it in overall debt formula for schools and county or not
Overlying Assumptions
• Conservative estimates for sales tax growth
. 1 percent annual growth for first 4 years of plan (fiscal years 2005-06 through 2008-09)
. 2 percent annual growth for next 6 years (fiscal years 2009-10 through 2014-15)
• Debt service projections include currently programmed debt only (based on BOCC endorsed
October 25, 2004 Debt Issuance Schedule)
. Allows for redistribution of$12.8 million from CHCCS Elementary#10 to other school and
county projects expected to need additional funding in the next one to three years
. Examples include OCS Middle School #3, CHCCS High School #3, Senior Centers
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• Additional $12.8 million needed for CHCCS Elementary#10 (projected opening fiscal
year 2009-10 per most recent SAPFO membership projections) not included in debt
service projections
" To be factored into updated Debt Issuance Schedule to be presented in May
• Timing of additional debt (for example items identified in the 2005 County Space Needs
Update)will also be considered in the updated Issuance Schedule
Current Policv
■ Ten-Year Funding Totals $151.9 million
• Total School Funding - $107.8 million (71%)
. Orange County Schools - $43 million (28%)
. Chapel Hill Carrboro City Schools —$64.8 million (43%)
• Orange County- $44.1 million (29%)
Option 1
■ Ten-Year Funding Totals $175 million
• Total School Funding - $115 million (66%)
• Orange County Schools - $46 million (26%)
• Chapel Hill Carrboro City Schools—$69 million (39%)
• Orange County- $60 million (34%)
■ Cedar Ridge Debt remains with OCS
■ 3 cents dedicated to school recurring capital remains with schools and one cent dedicated to
county projects remains with county
Option 2
Ten-Year Funding Totals $162.8 million
. Total School Funding - $106.5 million (65%)
. Orange County Schools - $41 million (25%)
. Chapel Hill Carrboro City Schools —$65.5 million (40%)
. Orange County- $56.3 million (35%)
Cedar Ridge Debt removed from OCS
. 3 cents dedicated to school recurring capital remains with schools and one cent dedicated to
county projects remains with county
Option 3
■ Ten-Year Funding Totals $174.9 million
• Total School Funding - $106.1 million (61%)
. Orange County Schools - $42.6 million (25%)
. Chapel Hill Carrboro City Schools—$63.5 million (36%)
• Orange County- $68.8 million (39%)
Cedar Ridge Debt remains with OCS
3 cents dedicated to school recurring capital added to one cent dedicated to county projects
(for a total of 4 cents dedicated to recurring capital) and split 60/40 between schools and
county
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Option 4
■ Ten-Year Funding Totals $162.7 million
• Total School Funding - $97.6 million (60%)
• Orange County Schools - $37.6 million (23%)
• Chapel Hill Carrboro City Schools—$60 million (37%)
• Orange County- $65.1 million (40%)
Cedar Ridge Debt removed from OCS
3 cents dedicated to school recurring capital added to one cent dedicated to county projects
(for a total of 4 cents dedicated to recurring capital) and split 60/40 between schools and
county
Comparison of Major Capital Funding Policy Components (incorporated by reference)
Commissioner Jacobs suggested having a narrative to go with the charts to make it
easier to understand.
Commissioner Gordon made reference to the three cents and said that you would need
to know how many buildings there are and the square footage in order to know how much to
allocate for recurring capital for both the county and the schools. Donna Dean said that this
information would be in the schools' CIP.
Commissioner Gordon said that the problem with Cedar Ridge is that there is not
enough money for renovations. The answer could be changing the debt service formula, or
something else could also be done.
John Link said that there is an overarching issue for the Board to address. If the staff is
to pursue the 60/40-appropriation policy, the money has to come from existing funds. The
County does not have the ability to issue any additional debt, based on the policy, for two years.
He is recommending that the Board take into account all of the issues and think about how to
make the 60/40 happen with existing revenues and how to go about addressing major new
building needs for both the County and the school systems, which items will pass on a bond, and
which items will not. The voters in Orange County have supported the schools since 1988.
Some of the items that the County has to address will have to be addressed by pay-as-you-go
funding or something other than bonds.
Commissioner Halkiotis said that, based on the work session last week, he was shocked
that the County does not have a steady stream of recurring capital to address County buildings.
He thinks it is unwise that the County has not set aside a specific pot of money for its own
buildings.
Chair Carey said that the County's policy related to capital funding is so convoluted and
it needs to be clarified and cleaned up.
Commissioner Gordon asked about the assumptions that were used. She asked Donna
Dean to indicate the assumptions to the questions on the sheet. She asked that these options
come back at a regular meeting.
Commissioner Foushee asked for clarification on John Link's comment about putting
"everything on the table." Chair Carey said that he meant all funding streams. Commissioner
Foushee thinks that the opportunity should be with most of the funding streams, with the
exception of school impact fees and public school capital funding. She thinks those streams
should be dedicated to school purposes. Chair Carey said that they are dedicated by law.
John Link said that he did not mean those streams that are dedicated by law or
ordinance. These cannot be changed.
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Donna Dean said that these four options keep those two funding streams with school
debt.
7. School Capital Funding Priorities
The Board received reports from the two school systems outlining their anticipated ten-
year capital funding priorities.
Rod Visser said that this is for information only. This is part of a process for developing
the 2005-15 CIPs. This is just a list of priority projects with or without dollar amounts.
Commissioner Gordon asked if they could have the dollar amounts. Rod Visser said
this will be part of the CIP process. It was answered that there are no numbers at this point.
Commissioner Gordon would like to have the numbers.
Commissioner Halkiotis pointed out that there is not a school building in the County with
a gravel parking lot for visitors and staff like there is at the Whitted Building.
8. Potential Amendment to Orange County Volunteer Resolution
The Board was to consider a potential amendment to the Orange County Volunteer
Resolution.
DEFERRED
A motion was made by Commissioner Halkiotis, seconded by Commissioner Gordon to
adjourn the meeting at 10:12 p.m.
VOTE: UNANMOUS
Moses Carey, Jr., Chair
Donna S. Baker
Clerk to the Board