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HomeMy WebLinkAboutMinutes - 20050616APPROVED 09120/2005 MINUTES ORANGE COUNTY BOARD OF COMMISSIONERS BUDGET WORK SESSION June 16, 2005 7:30 p.m. The Orange County Board of Commissioners met for a budget work session on Thursday, June 16, 2005 at 7:30 p.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, Steve H. Halkiotis, and Barry Jacobs COUNTY COMMISSIONERS ABSENT: COUNTY ATTORNEY PRESENT: Geoffrey Gledhill and S. Sean Borhanian COUNTY STAFF PRESENT: County Manager John M. Link, Jr., Assistant County Managers Gwen Harvey and Rod Visser, 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. 1. Chair Review of Schedule and Topics 2. Continuation of Discussion of 2005-06 Budget Issues a. Organizational Initiatives Sanitation Division Transfer from Public Works Department to Solid Waste Department Commissioner Halkiotis asked John Link about the budgetary consideration for transferring the Sanitation Division from the Public Works Department to the Solid Waste Department. John Link said that the cast was initially $300,000 but it has been reduced. Budget Director Donna Dean said that it is now $121,000. Rod Visser said that a portion of the cost would be incurred by the Sanitation Division regardless of whether they remain in Public Works. Commissioner Halkiotis asked what happened between the original estimate and the $121,000. Donna Dean distributed a handout explaining the cost. John Link said that some big cuts were made in operations and capital. Solid Waste Director Gayle Wilson said that in capital they reduced equipment casts of about $30,000. They also eliminated the replacement of 30 dumpsters for convenience centers. In operations, they reduced landfill fees to the bare minimum. In Miscellaneous Contract Services, they removed signage for all of the sites and fence repairs. They also made a contribution to the $100,000 fund for energy conservation measures. In other wards, this was their share of absorbing the cast of trying to reduce energy. John Link said that he cut all budgets by about 10°Io. Commissioner Jacobs said that the Building and Grounds budget has $400,000 in it for electricity. He asked if this was cumulative for all of the departments. Public Works Director Wilbert McAdoo said that this is only for the buildings that Public Works is responsible for. It does not include the landfill operations. Commissioner Jacobs asked what would be saved if this transfer were deferred for one year. Gayle Wilson said approximately $45,000-$50,000 would be saved. However, most of the costs would still be incurred if the transfer were delayed to a year from now. John Link said that some intangible costs would be incurred because employees need to know what is happening, since they have been hearing about this for months. He urged the Board to make the transition now. Commissioner Halkiotis said that he has been doing budgets for 18 years and this is the first year that he recalls cuts being made internally before the Board decides the budget. He does not understand this. Rod Visser said that the change from $300,000 to what is reflected here is part of the normal internal departmental review with the Manager. The Board asked the staff to look at possible reductions. Commissioner Halkiotis said that the perception that was put clearly in his mind was that if they were going to make this transition, it would cost $300,000. John Link said he will take responsibility for this reduction because at the May 5`" work session, when he saw that the price was for this was going to be $300,000, he asked the staff to trim it back as much as possible. Commissioner Gordon suggested that after the budget session is over, there should be discussion about changes in the budget process since it is compressed into a small timeframe. The process leads to some stress. Maybe the County Commissioners could offer same suggestions for changes in the process. Chair Carey said that they have changed the process before and it can be changed again. Commissioner Jacobs suggested having a budget sub-committee. This group could work with staff and start earlier in the year on the budget process. Commissioner Jacobs said that when the Board asked for the one cent step up from zero increase, and John Link had told them that 3 cents could not be cut, Commissioner Jacobs said that the process that they just went through shows that money could be cut out of operating. One of the challenges is to be creative about the County's entire operating budget. He thinks they need to have the same kind of rigor in the whole budget and not just one item. He feels like the County Commissioners are always reacting and he would like more options to look at reductions in the operating budget. Jahn Link said that the Board asked for his best thinking, which he gave. He welcomes the Board to look at areas in the budget where cuts can be made in operations. Chair Carey said that he remembers years ago when they adopted goals in March, and those goals drove the budget. The process now provides no guidance to the Manager. Commissioner Jacobs made reference to the line items where Temporary went from $1,100 last year to $8,000 this year. Also, in a lot of the departments, Medicare went from $0 to thousands of dollars from last year. Donna Dean said that Medicare has previously been budgeted as part of the Social Security line item. This is the first year it has been broken out. Commissioner Jacobs asked about the $29,000 in temporary services for Infarmation Technology. Donna Dean made reference to the $8,000 for Temporary Personnel and said that the budget stayed the same, but the expenditures were less last year. Information Technology Director Todd Janes said that the temporary line item is for a position for the help desk. Commissioner Jacabs asked about equipment repair. Todd Jones said that the bulk of the equipment repairs are maintenance fees in software. The biggest part of the increase is MUNIS. Commissioner Foushee asked about the temporary person and if this is seasonal or incidental and if this person was secured from an employment agency. Todd Jones said that it was not seasonal or incidental and not secured from an employment agency. Commissioner Foushee said that she has concerns about employing a temporary employee in a position for 40 hours without benefits. 2. BOCC Communications Infrastructure This information was on the lavender sheet. Commissioner Halkiatis said that Tadd Jones makes a strong case far going with IBM. He said that he asked CHCCS Assistant Superintendent Steve Scroggs about his laptop, which has a huge hard drive and works very well. This laptop costs $1,300 and it is a Hewlett Packard, and he understands that they are getting more machine for their money. He withdrew all of his arguments about IBM and he will willingly accept it, but he thinks that money could have been saved with a different line. Commissioner Jacabs asked Rad Visser about Bob Segal reporting back to the County and Rod Visser said that he wrote to them. Ken Chavious said that he was going to report at the schoolwork session, but something came up and he could not attend. Presumably, he is supposed to report back before the budget deliberations. Commissioner Jacobs said that this item is not on their June 23rd agenda, and they talked about, subsequent to getting these laptops, that there needs to be a comprehensive discussion about the systems that are being used. He would question supporting companies that use slave labor ar minimum wage labor. Commissioner Gordon suggested that, while this is important, perhaps it did not need to be done now. She would like to try out the various options first and she would like to defer this to next fiscal year, and maybe before the end of the calendar year. Rad Visser suggested that if the Board wants to adapt this as the package Infarmation Technology has presented, then staff could work individually with the County Commissioners at a time that is convenient far them. A motion was made by Commissioner Jacabs, seconded Commissioner Foushee to accept Infarmation Technology's proposal. VOTE: UNANIMOUS b. Outside Agency Funding OPC Supplemental Funding Request John Link said that this is soon to become the OPC-LME operation. This request is for interim funding that would be needed for a smooth transition far the mental health programs in the process of divestiture. The information is on a bright pink sheet. He said that Judy Truitt and her staff have given the best estimate as to when additional County funding may be needed for the transition of moving from the OPC to the LME structure over the next 3-4 months. Judy Truitt said that as they have been doing the planning for mental health reform, they have been designing timelines to successfully transition the programs into the private provider community. For example, the outpatient clinics should be moved out by the end of the calendar year. All of the timelines established are flexible and dependent on haw successful the transition is going to be. Club Nova will be transitioning in early fall {September}. The ACT Team, the assertive treatment teams for individuals with severe and persistent mental illness, they are looking at an earlier date of transition early in the next fiscal year. KidScope and the Learning Center will be transitioning right before the school year starts in August or early September. The Cross Disabilities Services will also be transitioned. She said that, with the supplemental request, there is a lot of concern about the programs' viability once they leave the OPC system and how they will be able to sustain the service system. The request for supplemental funding is to assist in the transition and to make sure the programs are stable. Commissioner Gordon asked for the Manager's recommendation on this item Judy Truitt said that on the green sheet it adds up to $464,855. They will be using the $180,305 from the County that they already receive for transition costs, which leaves a total of $284,550. Commissioner Halkiotis thanked Judy Truitt for what she has been doing. He said that there was an interesting story on NPR about a 25-year old mentally ill person that had been released from a state facility and placed in a nursing home for the elderly, where he killed a nine-year old. He hopes this is not what mental health reform is going to be in North Carolina. He asked if there were any assurances that there would be any State money and Chair Carey said no, other than the programs that the State provides. It is possible that there might be some transitional money, but there is no guarantee. Commissioner Halkiotis said that he fully supports all of these programs, but this is very tragic because it has caused a lot of anxiety and concern. Commissioner Jacobs said that issues were raised by people from Kidscope about retirement eligibility. He asked what was decided about this. Chair Carey said that they have talked about this in previous OPC Board meetings, and the decision to make the cut-off was based on costs. He wants to address the concerns of the employees, but there is no way to address them without increasing the costs. Judy Truitt said that they are struggling with this and the OPC Board has asked them to research. The research has indicated that across the state, the bridge for retirement purposes in almost all other areas is one year. Commissioner Jacobs suggested that this be put in writing for the Board of County Commissioners. Chair Carey said that he would like to suggest putting the $1 million in reserve. Commissioner Jacobs asked for an estimate of what it would cost to pick up more people on the retirement, and if mare money came available, then it could be used for this. Representative Insko is working on a bill for mental health. Commissioner Gordan said that she is supportive and sympathetic with all of the transitions. She would like to know if there is any money in the House budget. Commissioner Jacobs suggested that the Chair write a letter to Representative I nsko thanking her for supporting Orange County during this process. John Link reminded the Board about the transition of the aid to dependent children program and though there were some problems, they have been worked through. He thinks it is a good idea to look at how the County is providing services and if there is some better way to get the services provided. For example, the outpatient clinics are the most expensive. He thinks the LME Board should report back to the three Boards of County Commissioners about how there may be other ways to provide these kinds of services that might be more functional and efficient. Judy Truitt agreed and said that this is an opportunity to refashion themselves into an efficient, effective, and financially viable operation. 2. Follow-up on earlier BOCC questions including discussions with outside agencies or fire districts as the Board requests. This information was an the yellow sheet. There was additional information on the dark green sheet. Previously Unfunded Agencies Commissioner Halkiotis made reference to the dark green sheet and asked if Chapel Hill, Carrboro, or Hillsborough has definitely made a contribution to the Orange County Partnership to End Homelessness. Assistant County Manager Gwen Harvey said yes, according to their percentages, the towns have made good on their commitment to this. Chapel Hill is the only outstanding budget. Commissioner Jacobs said that one of these entities came to ask for money - A Helping Hand -and he is more sympathetic to them since they actually came to the Board. Commissioner Foushee said that she would support that. Commissioner Gordon agreed. Chair Carey said that he is familiar with A Helping Hand, and this organization mobilizes volunteers very well. Commissioner Jacobs asked if Hillsborough put money into its budget for the Joint Strategic Growth Plan. Tom Altieri said that Hillsborough put in $58,000. Commissioner Jacobs asked the Manager to find out if Hillsborough expects the County to match this amount. Non-departmental Increases Commissioner Halkiotis asked about the Communities in Schools {CIS) with an increase of $10,000 and if there is a list of all agencies and Donna Dean said that she is still working with the school system an getting this list. Commissioner Halkiatis asked Donna Dean to fax the County Commissioners a list provided to the school system of the programs and the amount of money the programs are getting. Commissioner Halkiatis said that this increase is for middle schools currently without CIS programs, but the speaker from CIS at the public hearing said that they were now serving all middle schools. He asked for clarification on this. Commissioner Halkiotis made reference to OCIM and an increase of $5,000 for 1,250 additional meals for Meals on Wheels. He served an the planning committee far the Southern Senior Center, and he learned that the kitchen would be used by Meals on Wheels to produce the meals. He would like to know exactly how many meals are being provided in Orange County by Meals on Wheels. This is a significant contribution and he would like additional information. Commissioner Halkiotis made reference to JCPC and said that all of their items total $150,000. He supports this, but he wonders if they are approaching the day where the administrative office of the court is going to be funded by counties. Donna Dean said that those funds are pass through State funds. The State is also providing the increases. Commissioner Halkiotis said that it appears that the Manager was recommending these increases. These increases should be earmarked as State increases. Commissioner Jacobs asked about the Orange-Alamance Water System Consultant and if this is directly related to the development of the sewer system or if it was beyond that. There was no one in attendance that could answer this question. Commissioner Jacobs asked if there was any agreement with Orange-Alamance Water System about the study that is going to be done. Before he is willing to commit funds to serve the Orange-Alamance Water System, he would like to know that they are amenable to being partners with Orange County. John Link said that he remembered talking to Planning Director Craig Benedict and that this recommendation came out of the Small Area Task Force. He will clarify this. Chair Carey asked about tuition reimbursements and John Link said that this is for courses that the staff takes. Chair Carey asked if there is a commitment for employees stay with the County after their training. John Link said that most of the courses are not four-year college courses. Personnel Director Elaine Holmes said that these courses are typically at a community college and the reimbursement is up to $600 in a fiscal year. Commissioner Jacobs asked about Fire Safety and Protection. This is attachment 4, page 4, a request far $25,000 far a consultant. EMS Director Jack Ball said that they did not submit this, but the Board of County Commissioners had asked far it. Commissioner Jacobs said that if it is directly related to fire, then they should contact the Department of Insurance that deals with fire fighting issues to come and serve as a consultant, because it would be free. He also heard that the State offers up to $20,000 in grants to individual fire departments, and none of the Orange County fire departments have applied. Commissioner Jacobs made reference to the Governor's Crime Commission and asked why the County was contributing to this. It was answered by the Budget staff that these were JCPC pass through State funds and not County funds. Commissioner Jacobs asked that all items that are not funded by the County be indicated as such. Commissioner Jacobs asked about the Affordable Housing Reserve and what this covers. Housing and Community Development Director Tara Fikes said that this fund was initially capitalized in 2000-2001 at $250,000. There have been additions to the fund each year. The fund currently covers the Urgent Repair Program, Impact Fee Reimbursement, and the match requirement for the Home Investment Partnership Program. There is approximately $100,000 remaining in the fund. Donna Dean said that the Public Works staff prepared the pink sheets and they looked at expenditures from April of last year to March of this year and they compared it with the square footage. In that past year, they spent a little less than $700,000, which includes electricity, fuel, and water. John Link said that the animal shelter is extremely expensive to operate. He said that the issue of energy needs to be part of the discussion when designing the County's animal shelter. Wilbert McAdoo said that they are doing assessments now of this facility to see if there can be savings. The shelter has older equipment and there is high water usage to clean kennels an a daily basis. Commissioner Halkiotis said that he was the one that asked for this information. He said that in order to have a conservation ethic, you have to know what you are working with. He did some calculations and they are running high costs per square foot, excluding the animal shelter. The County's energy costs are about $1.78 per square foot, which is way beyond the industry average in the country. He asked if there was a written plan for the conservation ethic and who would be in charge of it. Wilbert McAdoo said that they are working on the plan now. One of the things that drives the industry costs is heating and air conditioning. They are looking to replace some of the equipment with more energy efficient equipment. Commissioner Halkiotis suggested that Public Works would need professional help to assess this situation of high-energy casts. He would like to bring in an objective third party to tell the employees what has to be done. There also must be a watch dog to make sure things are being done to conserve energy. He said that he has experience in this area and the County can save $200,000 easily. Fire Districts (page S- 76 in budget notebook) Commissioner Jacobs said that, in his opinion, this process has been on cruise control. He said that since 1999-2000, four of the departments have doubled their budget. He does not feel that he has a handle an what is going on. He would like to create a venue far discussion of these issues such as getting the rating down for the fire districts and getting the fire departments involved in the planning process, etc. He asked if there was such a thing as district commissioners that the County Commissioners appoint. Rod Visser said that there is a provision in state law far this arrangement. Years ago the County tried to do that, but the only one that is close to this is the South Orange Fire District. The Clerk's office tried to recruit for this, but there was no interest. Chair Carey suggested looking at this as part of the strategic plan. John Link said that he believes that there should be a continuum of scrutiny of working with the fire departments. He said that the Board of County Commissioners has a right to ask for more reports than it is asking for now. Commissioner Halkiotis said that he attended the Efland Fire Department celebration, where they celebrated getting the highest insurance rating at a class 7. He said that they had some very aggressive individuals that pushed this program, and it was not money but personal initiative. Commissioner Halkiotis said that when they had that work session about the study with the fire districts and the rescue squads, he recalls that this was supposed to be in the EMS budget. He took this to mean that the EMS budget would sustain this study by an independent group. John Link said that the budget had already been printed at that paint. Commissioner Halkiotis said that the County could very nicely look at fire district needs, successes, future goals, and haw rescue squads fit into all of that with equipment purchases and develop a strategic plan for fire and rescue services. Chair Carey would like to know what the process would be first. Commissioner Jacobs suggested adding a tiny bit to each fire district and applying the money to a study. Commissioner Foushee made reference to grant funds and said that the County Commissioners could help the fire district find these grant funds. Rod Visser said that Emergency Management Specialist Eric Griffin has been working on homeland grant funds. c. Begin Deliberations of Budget Decision Points (e.g. per pupil allocation, employee pay and benefits, fire and school district tax rates, etc) Commissioner Jacobs asked about tags for vehicles that go to solid waste convenience centers. Rod Visser said that they have had this in place since 1993, and there is still a process where new residents get the tags. The solid waste convenience centers update the tags. Commissioner Halkiotis said that he has had his tag for ten years and he has never had a sticker for the year offered to him. He said that the convenience center operators have their hands full, and they do not have time to stand at the gate and check for the tags. He said that there should be signage that people must show proof of residency to use the facility. Wilbert McAdoo said that this is already on the signs. Commissioner Halkiotis has not seen this an the signs. Commissioner Jacobs suggested having tags for use of parks, especially Southern Park. He would like to be more proactive about this issue with the use of parks and solid waste convenience centers. Chair Carey said that this is more comprehensive and intergovernmental than it seems. John Link said that they have talked before about a bar coding process for County citizens to have amulti-use effect. He thinks it is a great idea and it should be pursued aggressively. He will work with staff to get it done. Commissioner Jacobs asked Ken Chavious about being fully compensated from partners with Shearon Harris Nuclear Power Plant. Ken Chavious said that he would bring that information back. Commissioner Gordon asked about the partners with the Greene Tract and the Solid Waste Enterprise Fund. Chair Carey said that the trigger has not occurred yet that requires reimbursement. Rod Visser said no, it has not, and he and Dave Stancil have been following up on this. Commissioner Jacobs said that, under the Board of County Commissioners, there is a half- funded position. Going back to the proposed strategic communications plan that is posted an the Intranet, he would propose looking at upgrading the communications with citizens. He said that there is no outreach in the rural part of grange County. He thinks there is a tremendous opportunity to look at where the holes are in the County Commissioners' ability to communicate to citizens and use the money already set aside for this purpose. Commissioner Gordon and Chair Carey agreed. Commissioner Gordan said that she would work with Commissioner Jacobs to get the strategic plan back into operation. With no further items to discuss, the meeting was adjourned at 9:45. Moses Carey, Jr., Chair Donna S. Baker Clerk to the Board