HomeMy WebLinkAboutMinutes 09-05-2013 APPROVED 10/15/2013
MINUTES
BOARD OF COMMISSIONERS
REGULAR MEETING
September 5, 2013
7:00 p.m.
The Orange County Board of Commissioners met in regular session on Thursday, September 5,
2013 at 7:00 p.m. at the DSS offices, in Hillsborough, N.C.
COUNTY COMMISSIONERS PRESENT: Chair Jacobs and Commissioners Mark Dorosin, Alice M.
Gordon, Barry Jacobs, Earl McKee, Bernadette Pelissier, Renee Price
COUNTY COMMISSIONERS ABSENT: Penny Rich
COUNTY ATTORNEYS PRESENT: John Roberts
COUNTY STAFF PRESENT: County Manager Frank Clifton, Assistant County Managers Michael Talbert,
Clarence Grier, Cheryl Young and Clerk to the Board Donna 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. Additions or Changes to the Agenda
The Chair reviewed the items at the County Commissioners' places:
- Pink sheet— Item 4b — Resolution Commending the Northern Orange Education Task Force, Its
Founders and the Sankofa Award Recipients —revisions
- Addition to the agenda — Item 4c— Economic Development Project Morinaga
A motion was made by Commissioner McKee, seconded by Commissioner Pelissier to add this
item to the agenda.
VOTE: UNANIMOUS
- Addition to the agenda — Item 5u — BOCC Meeting Calendar changes
A motion was made by Commissioner Dorosin, seconded by Commissioner McKee to add this item to the
agenda.
VOTE: UNANIMOUS
- White sheets — Item 6b — Cell towers
- Yellow sheet— Item 7b — MPO voting changes
- Handout from OUTBoard Rural Road Safety Guidelines
2. Public Comments
a. Matters not on the Printed Agenda
Don O'Leary said while the Commissioners have been on break the Obama regime has been busy
with Syria and the gas situation. He said the pictures on the news were photo ops, and the kids were fine.
He said there were samples of hair taken that showed this was only from drinking chloride. He said it is
time to re-consider the County's association with ICLEI and agenda 21. He said ICLEI wants want to re-
farm America and give it back to the Indians. He asked the Board to please reconsider its association with
ICLEI.
Madison McCann represents the American Cancer Society and came to promote Relay for Life.
She gave some history on the event, which started in 2001 and has raised over 1.5 million dollars. She
asked the Board for suggestions for possible sites and volunteers. She noted that $5.9 million was given
to UNC through grants from the American Cancer Society. She mentioned research studies being funded
by Relay for Life and expressed her desire to keep this event going.
b. Matters on the Printed Agenda
3. Petitions by Board Members
Commissioner Pelissier asked staff to review the policy regarding the type of vehicles allowed at
Solid Waste Convenience Centers (SWCC). She said a citizen contacted her with questions about a
prohibited vehicle that weighs more than a ton, yet has dimensions similar to an SUV or van. She noted
that many of the restrictions and rules were put in place before such heavy vehicles were commonly used.
Commissioner McKee concurred with the need to evaluate these policies.
Chair Jacobs said Michael Talbert confirmed today that staff is going to do a report about this, as
well as other SWCC's issues.
Chair Jacobs asked about the Efland downtown plan. He thought the plan was to be brought back
in 6 months with an update from staff, and he questioned when the Board would see this again.
4. Proclamations/ Resolutions/ Special Presentations
a. Proclamation Recognizing UNC Women's Lacrosse 2013 NCAA Championship
The Board considered a proclamation recognizing the UNC Women's Lacrosse Team for winning
the 2013 NCAA Division I Women's Lacrosse National Championship and authorized the Chair to sign.
Coach Levy gave brief history about lacrosse and the UNC Team.
Commissioner Dorosin read the proclamation:
ORANGE COUNTY BOARD OF COMMISSIONERS
PROCLAMATION OF RECOGNITION ON
UNC WOMEN'S LACROSSE TEAM WINNING THE
2013 NCAA LACROSSE NATIONAL CHAMPIONSHIP
WHEREAS, on May 26, 2013, the University of North Carolina women's lacrosse team captured the NCAA
Division I Women's Lacrosse National Championship; and,
WHEREAS, under the guidance of Head Coach Jenny Levy, the UNC women's lacrosse team earned its
first NCAA National Championship title; and,
WHEREAS, the Tar Heels completed the season in the longest NCAA women's lacrosse championship
game in the history of the tournament, going into triple overtime; and,
WHEREAS, the UNC women's lacrosse team finished the year with a 18-3 record; and,
WHEREAS, Coach Levy continues to emphasize the importance of education for her college athletes
when the team, in the spring of 2012, posted the best academic semester in its recorded
history with a team GPA of 3.227; and,
WHEREAS, through hard work, dedication, teamwork, and commitment, the Tar Heels have brought honor
upon themselves, the University of North Carolina, Orange County and the State of North
Carolina;
NOW, THEREFORE, be it proclaimed that the Orange County Board of Commissioners expresses its
sincere appreciation and respect for the University of North Carolina women's lacrosse team,
for the Tar Heels' outstanding achievement, and for their inspiration to youth across the
nation through their dedication, teamwork, and athletic prowess.
This, the fifth day of September 2013.
A motion was made by Commissioner Price, seconded by Commissioner McKee to approve a
proclamation recognizing the UNC Women's Lacrosse Team for winning the 2013 NCAA Division I
Women's Lacrosse National Championship and authorize the Chair to sign.
VOTE: UNANIMOUS
b. Resolution Commending the Northern Orange Education Task Force, Its Founders and the
Sankofa Award Recipients
The Board considered a resolution commending the Northern Orange Education Task Force, its
founders and the Sankofa Award recipients and authorized the Chair to sign.
Mr. Keith Cook and representatives from the Northern Orange Education Task Force were present,
and gave information on the history and significance of the name. A Sankofa is an African bird that bends
his head backwards while flying. This posture is necessary to help fetch and bring someone along.
Task force members, Kenneth Woods, Lawrence Saunders, Anna Kenyon, and Denita Thompson
were introduced.
Mr. Cook thanked Commissioner Price for coming to the ceremony and he noted that this is a labor
of love. He said he has attended many graduation ceremonies over the years and saw a minimal number
of minorities represented, which led to the creation of this group. He said it created its own criteria of a
minimum 3.0 grade point average requirement to be recognized. He said 125-200 students are
recognized every year. He thanked the Board for their support.
Commissioner Price read the resolution:
ORANGE COUNTY BOARD OF COMMISSIONERS
RESOLUTION COMMENDING THE NORTHERN ORANGE EDUCATION TASK FORCE, ITS FOUNDERS
AND THE SANKOFA AWARD RECIPIENTS
Whereas, in 2007, concerned members of the Orange County community convened and established the
Northern Orange Education Task Force, inclusive of the Sankofa Award Committee, under the guidance of
Mr. Keith Cook and in partnership with Orange County Schools; and
Whereas, the mission of the Northern Orange Education Task Force is "to collaborate with Orange County
Schools, parents, families and the Northern Orange community in promoting a sound basic education for
all Orange County Schools students in a healthy, safe and supportive environment while addressing the
needs of minority students"; and
Whereas, the vision of the Northern Orange Education Task Force is "to serve as an advocate for
Northern Orange parents and actively involve the community as a catalyst for change in building
understanding and support for all students," and "to ensure accountability and equity in a healthy, safe and
supportive environment"; and
Whereas, since 2008, a total of 1,356 students have satisfied the requirement to receive the Sankofa
Award, having achieved and maintained a 3.0 or higher grade average throughout the school year; and
Whereas, the 6th Annual Minority Student Academic Achievement Awards Program was held in June
2013, whereupon 253 high school students were honored with Sankofa Awards;
NOW, THEREFORE, BE IT RESOLVED that the Orange County Board of County Commissioners, on
behalf of the Orange County community, commends the members of the Northern Orange Education Task
Force, Mr. Keith Cook and Orange County Schools for their commitment to closing the academic
achievement gap among minority students, and to promoting self confidence within minority students; and
THEREFORE BE IT FURTHER RESOLVED, that the Orange County Board of County Commissioners, on
behalf of the Orange County community, congratulates these young women and men who worked
diligently and received the Sankofa Award over the past six years, and looks forward to continued
excellence in achievement among all Orange County students.
This, the 5th day of September 2013.
A motion was made by Commissioner McKee, seconded by Commissioner Pelissier to approve a
resolution commending the Northern Orange Education Task Force, its founders and the Sankofa Award
recipients and authorize the Chair to sign.
VOTE: UNANIMOUS
*ADDITION TO THE AGENDA:
c. Economic Development Project— Morinaga —Japanese Confectionary Company
Frank Clifton said this is a significant achievement for Orange County. He provided a green print
out of the top ten taxpayers in Orange County in 2011. He noted that the top two are privately owned, and
he said this new company will be number three.
He noted that there is a planned second phase for the company. He said this is only 20 acres out
of 700 acres that have been re-zoned for commercial development in the Buckhorn EDD. He said the
company has the potential to produce $100 million in asset valuation in Orange County.
Steve Brantley introduced Ellen Tai from his department and noted that she came from Department
of Commerce and speaks fluent Mandarin Chinese. He recognized Yvonne Scarlett from his office, as
well as staff from the planning department.
He presented the following PowerPoint slides and information:
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MORINAGA & CO., LTD. MORINIAGA
Summary of Project Rainbow's 2012 -2013 Recruitment to Orange County
Presentation to the Orange County Board of County Commissioners
September 5, 2013
Purpose:
• Summarize Orange County's successful recruitment of the world-class Japanese confectionary &
candy maker, Morinaga & Co., Ltd., and its' USA subsidiary Morinaga America, Inc., which has
selected a light manufacturing site in the Buckhorn Economic Development District for the firm's
first American manufacturing operation.
• Review the company's plans to produce their "Hi-Chew" candy product, invest $48 million in a
new, construct a state-of-the-art 120,000 sq. ft. clean USDA-spec manufacturing facility, and create
90 - 120 new career opportunities with competitive salaries, health and retirement benefits for our
residents.
• Describe the extensive efforts made by Orange County, the City of Mebane, the State of North
Carolina, and other key players, following 11 separate visits by the company and its consultant to
Orange County over the previous 19 months, and how we eventually won "Project Rainbow"
throughout a highly competitive, multi-state site selection process.
• Outline the specific site location, the required infrastructure to the property, the financial obligations
and funding resources to fully develop the site, and local and state incentives.
• Note the transformative effect our Morinaga success story now offers to illustrate Orange County's
efforts to diversify our local economy and tax base, to create more and better jobs for our
residents. Show how the Board of County Commissioners' commitment to preparing our Economic
Development Zones with utilities, zoning, incentives, and thoughtful use of the quarter cent sales
tax for economic development, has proven to be a winning formula for the long term. And,
highlight the public's commitment to economic development via its favorable vote on the quarter
cent sales tax.
Company Description:
• Morinaga & Co., which was founded 114 years ago in 1899 in Tokyo, Japan, is a major
international confectionary & candy maker. With $1.75 billion in global sales revenue comprised of
53% in chocolates, caramel & biscuits, 19% in ice cream & frozen foodstuffs, 16% in health
products, and 12% in cocoa/cake mix foodstuffs, the firm is Asia's equivalent to a Hershey's, Mars
or Nestle.
• In Japan, which is the world's #2 overall largest candy and confectionary market (behind the USA),
the Company has over 40 different product lines, where it holds the #1 Japanese domestic market-
share for candy. Morinaga ranks similar to Kellogg Company in terms of retail sales.
• Among Japan's top 3 competing confectionary makers, Morinaga ranks #1 for candy & caramel
products, #2 for biscuits, and #3 for chocolate products. The chewy fruit flavored snack that holds
the #1 spot within Japan, and which the company will produce here in Orange County, is called
"HI-CHEW".
• Morinaga is aggressively marketing HI-CHEW across the United States and has successful store
displays at Target, COSTCO, 7 Eleven, and Kroger, and is found locally at the Streets at
SouthPoint Mall ("It's Sugar", "World Market").
• Additional product lines include frozen desserts (19%), foodstuffs (10%), and the internationally-
renowned Weider-brand health care products such as energy drinks, nutritional vitamin/mineral
supplements & protein bars, & collagen-based beauty products (16% of sales).
• Morinaga America, Inc., led by Mr. Masao Hoshino, was established in Los Angeles in 2008 for the
purpose of introducing the company's various product lines, starting with HI-CHEW.
• Overseas partners include serving as the trademark distributor, licensee or supplier for world-class
confectionary companies such as Disney Japan, SUNKIST Growers, PEZ, Perfetti van Melle (Italy),
Storck (Germany), Dare Foods (Canada) and Barry Callebaut AG (Switzerland).
• Management's corporate philanthropy strives to be a "company that improves the lives of children
worldwide". The firm partners with international NGOs in developing nations, and places a special
emphasis promoting healthy nutrition, and funding for school facilities and educational supplies,
especially among West African countries.
• First Japanese corporation to be affiliated with the World Cocoa Foundation (WCF), which was
established with the objective to foster a sustainable cocoa industry, and prevent the use of child
labor in developing nations. This is achieved through the environmental protection of regions where
major global chocolate corporations cultivate cocoa, and through economic and social
development. Technical guidance and training support is provided to cocoa farmers through
various programs that protect the natural and social environment.
Chronology of Events:
Project Rainbow made a total of 11 site selection visits to Orange County, over the previous 19 months, as
follows:
• February 1, 2012 N.C. Department of Commerce first contacted Orange County regarding an
unidentified site search for "Project Rainbow".
• April 5 — 6, 2012 First visit to see sites in NC & Orange County by Morinaga America & the
firm's Portland, OR-based site selection consultant, InSpec Group.
• May 18, 2012 Morinaga America & consultant returned to see NC and Orange County sites.
• July 11 — 16, 2012 Morinaga America & consultant returned to Orange County.
• August 22, 2012 Consultant returned to Orange County. No other NC sites were visited.
• August 27, 2012 BOCC first met in closed session to discuss a potential incentive.
• January 11, 2013 Morinaga & Co.'s senior staff from Japan, Managing Director Toru Arai &
Senior Managing Director Osamu Noda, travelled from Tokyo to see the
Orange County (and Atlanta) sites, and met with Governor McCrory & N. C.
Dept. of Commerce Secretary Decker.
• January 24, 2013 BOCC received a second closed session briefing on the project.
January 31, 2013 Orange County was notified it had emerged as one of 2 finalist locations,
along with a competing site near Atlanta.
• March 19 —21, 2013 Morinaga America's President from Los Angeles, Masao Hoshino, visited &
met with BOCC in closed session; Orange County's proposed incentive was
discussed and tentatively approved.
• April 14 — 15, 2013 Consultant returned.
• June 11, 2013 Consultant returned.
• July 1, 2013 Mr. Toru Arai, who first visited Orange County in January 2013, was
promoted
to President of Morinaga & Co., Ltd. in Japan.
• July 10 — 12, 2013 Chairman Gota Morinaga visited to review our site and meet with the
Governor.
• July 20, 2013 Morinaga & consultant returned to view additional acreage.
• August 30, 2013 Morinaga & consultant returned to observe the site survey.
• September 3, 2013 Official public announcement of Morinaga's decision to select Orange
County.
• September 17, 2013 Next scheduled consultant visit to discuss site infrastructure development.
Competition & Initial Site Search:
In early 2012, Morinaga and site selection consultant InSpec Group began a multi-state site search to
identify a "Hi-Chew" manufacturing location. Competition for this project included the following
communities:
• Portland, OR
• Ontario, Canada
• Philadelphia, PA
• Richmond, VA
• Atlanta, GA
• North Carolina (18 total sites in 12 counties)
Morinaga's Planned Investment in Orange County:
On September 3, 2013 the company announced its' decision to invest in Orange County, as follows:
• Capital Investment: $48 million
• Employment: 90 - 120 jobs
• Average Salary: $37,969
• Annual Payroll, w/ benefits: $3.4 million
• Facility Size & Type: 120,000 sq. ft.
• Type of Operation: Production of fruit flavored candy snack "Hi-Chew"
• Site Size: 21.00 acres (Buckhorn Economic Development District)
Although the Company has not committed to making any additional investment at this time, we anticipate a
plant expansion of equal size may eventually occur, since the property is large enough to accommodate
an idential "Phase Two" expansion. Company comments also support this long-term growth plan.
Site Location in the Buckhorn Economic Development District:
• The 21.00 acre tract is part of the "W. H. Wilson Family Investment Group LLC" property, PIN #
9824459890. Located adjacent to Ben Wilson Road, south of and facing Interstate 1-40/1-85, and
near the Orange/Alamance county line in the City of Mebane. Site is part of a cleared 57-acre field
facing the highway, and opposite the Armacell facility and Tanger Mall.
• Site is located within the County's "Buckhorn Economic Development District" and was rezoned by
the BOCC in 2012 to 0/1 (Office/Institutional) to promote business recruitment. Site is currently
undeveloped without infrastructure. The owner is in the process of applying to the City of Mebane
to have this property annexed and rezoned.
• The utility infrastructure and road access improvements required to the make Orange County's site
competitive to attract Project Rainbow will also make adjacent properties in the Buckhorn Economic
Development District more developable, attractive and competitive to appeal to future business
prospects.
• In comparison, Project Rainbow's other finalist location, near Atlanta, offered the company a lower-
priced and established business park with all required infrastructure and tenants already in place,
thereby giving the company a greater comfort level as it evaluated advantages (incentives,
business costs, logistics, etc.) between that location and Orange County's largely undeveloped
site.
Site Location in the Buckhorn Economic Development District:
• The N. C. Department of Commerce has pre-qualified Project Rainbow and Orange County as
eligible co-applicants to receive a grant up to $750,000 from the State of North Carolina's
"Community Development Block Grant" (CDBG) industrial program. This State grant will
reimburse the County for 75% of the required water& sewer extension costs, and the
preliminary engineering for the access road to the site, with Orange County providing a
required 25% local match for the remaining cost. The estimated total cost to extend water
and sewer to the site, and design the road improvement may be approximately $700,000, but
the County's portion will be only 25% of that amount with the CDBG's reimbursement
assistance.
• One of the criteria specific to the CDBG program is that among the total number of jobs Morinaga
commits to create in the first 3 years, at least 60% of those 90 — 120 total jobs must directly relate
to persons who are qualified as coming from low or moderate incomes, prior to coming to work for
the company. This population is typically a County resident who is either unemployed or
underemployed, and who has an income level at, or below 80% of the County's median income.
This is the same criteria as used by the County's affordable housing department to qualify low and
moderate income residents for Section 8 housing vouchers. Morinaga's projected average salary
of$37,969 will meet this requirement.
• The cost to extend a 12" water line a distance of 3,700 linear feet to the site is estimated at
$375,000 and the cost to extend a 10" sewer line a distance of 1,500 linear feet to the site is
estimated at $200,000. Estimated design and construction time is 12 months. Also, the cost to
design the 2,500 foot access road, (which NCDOT has agreed to build), may cost at least
$100,000. In addition to the State's CDBG funding to reimburse Orange County for 75% of total
utility and road improvements to the site, the County's "Article 46" '/4 cent sales tax proceeds are
also available, if needed.
• PSNC Energy will need to extend a natural gas line from the existing 4' line along Ben Wilson
Road to the site. The cost for this line extension will be paid entirely by PSNC Energy, and at no
cost to Orange County or the company.
• Duke Energy will deliver all electrical power to the property, to include installing transformers and
underground power lines at the site, and at no cost to Orange County or the company.
• N. C. Department of Transportation has committed to extend the existing Ben Wilson service
road adjacent along the highway and up to Morinaga's site. The $500,000 cost to build the 2,500
foot access road will be fully paid by the State of North Carolina and NCDOT. There is no
cost to Orange County or the company. NCDOT has verbally committed to funding the access
road from a combination of several State resources. Estimated design and construction time is 12
months.
• In future years, NCDOT anticipates a further extension of this new service road eastward toward
Mattress Factory Road, which could favorably influence the State's "Transportation Improvement
Plan" (TIP) prioritization to eventually make Mattress Factory Road a full interchange. This needed
interchange would serve to improve traffic flow for existing and future truck and employee vehicles
throughout the Buckhorn Economic Development District.
Local & State Financial Incentives:
• The Orange County Board of County Commissioners first met in closed session on August 27,
2012 and discussed the recommended "performance-based" grant to encourage the company's
eventual selection of Orange County.
• The BOCC met a second time in closed session on January 24, 2013 to discuss the project, and
met a third time on March 19, 2013 (during the visit and presentation by Morinaga America's
President Masao Hoshino) and voted to tentatively approve the proposed County incentive offer.
• The Orange County performance-based incentive is calculated as follows: up to 75% of the
taxable value of the project's $48.0 million capital investment, for as long as 5 years. This
recommended grant will make possible a competitive Orange County incentive of
approximately $308,000 annually for 5 years, or, approximately $1.5 million total. The
County's performance grant would include a "claw-back" provision in the contract with the company
to ensure that the firm's annual target for capital investment and jobs creation is first verified before
any County incentive would be provided over the initial 5-year term. The Company will also be
required to provide health insurance for its employees during the incentive period, just as required
by the State's incentive grant. This information was outlined in the County's commitment letter,
dated March 19, 2013 from Orange County Manager Frank Clifton. Orange County will eventually
hold a public hearing for the proposed incentive to Morinaga.
• The City of Mebane, which will annex and rezone the proposed site at the landowner's request,
has tentatively approved a supplemental local incentive package to the company (specific $
amount to be determined) of the project's $48 million capital investment. The City of Mebane will
hold a public hearing for the proposed incentive to Morinaga.
• The State of North Carolina has offered the company a $264,000 grant from the "One N. C.
Fund" discretionary grant program. Refer to the attached commitment letter, dated January 4,
2013 from the North Carolina Department of Commerce's Deputy Secretary Dale Carroll. Also,
NCDOT has committed to provide approximately $500,000 to build a 2,500 foot road access
improvement by extending the current Ben Wilson service road parallel to the interstate up to the
Company's 21-acre site. Technical training for new employees, valued at $150,000 or higher, will
be provided by the Hillsborough campus of the N. C. Community College System's Durham
Technical Community College.
• And finally, pre-screening of job applicants will be provided by the State's Employment
Security Commission office in Chapel Hill office, to help identify Orange County residents who
wish to gain employment with this company.
Summary of State & Local Financial Incentives:
State of North Carolina
• "One NC Fund" Grant $264,000
• Durham Technical Comm. College training $150,000
• NCDOT Extension of Ben Wilson Road $500,000
$914,000
• Community Development Block Grant $ to be determined
(75% reimbursement of Orange County's total initial cost to extend water and sewer to site)
Orange County
• Performance Grant $1,500,000
($308,000 annually X 5 years)
• Community Development Block Grant $ to be determined
(25% co-pay of Orange County's total initial cost to extend water and sewer to site, & road design)
City of Mebane
• Performance Grant $ to be determined
Recommendation to the BOCC:
The Board of County Commissioners will schedule the public hearing, at a later date, for consideration of
the County-sponsored incentive for Morinaga. All incentives from the County will come from the County
property tax revenues that Morinaga generates after it is in operation, supplemented by proceeds from the
'/4 cent sales tax.
Partners in the Successful Recruitment Process:
Key Participants
• State of North Carolina
(Governor McCrory & Secretary of Commerce Sharon Decker)
• North Carolina Department of Commerce
(Business/Industry Development Division & Commerce Finance Division)
• Orange County
(Board of County Commissioners, Manager's Office, Economic Development,
Planning & Inspections, Visitor's Bureau, Public Affairs)
• City of Mebane
(Mayor & City Manager's office)
• Durham Technical Community College
(Hillsborough campus)
• North Carolina Community Colleges System
• North Carolina Department of Transportation
• InSpec Group
(Site selection consultant from Portland, OR)
Other Participants
• University of North Carolina at Chapel Hill
(Chancellor's Office; Office for Innovation & Entrepreneurship)
• Progress Duke Energy
• PSNC Energy
• Research Triangle Regional Partnership
• Land owner
Chronology of Morinaga & Co., Ltd.:
1899: Taichiro Morinaga returns from San Francisco and establishes a candy and confectionery company
with partner Hanzaburo Matsuzaki, becoming the first to introduce Western-style snacks to Japan.
1914: After years of research, Morinaga launches a caramel candy, Hi-Chew, designed to appeal to the
Japanese market.
1917: Morinaga establishes a dairy operation in Japan.
1918: Morinaga becomes the first company to market chocolate bars in Japan.
1920: The Company begins production of powdered baby formula.
1925: The Company installs machinery and begins mass production of candies and confectionery.
1949: The dairy operation is spun off as a separate company, Morinaga Dairy Industries.
1956: Morinaga begins production of ice cream.
1964: The Company has a new hit product with the launch of Hi-Crown Chocolate.
1983: The Company launches a nutritional foods division and begins a product development and
marketing agreement with Weider, of the United States.
1995: The highly popular Weider in Jelly product line is launched.
2000: The Company launches a new corporate "power brand" strategy focusing on core brands and
product lines.
2004: A new manufacturing facility is completed in Shanghai in order to supply the market in China.
Company History:
Established in 1899 by Taichiro Morinaga, who had a pioneer spirit and the dream of"offering nutritious
and good-tasting confectionery to Japanese children,"Morinaga & Co. Ltd. was the first Western-style
confectionery manufacturer in Japan. During the past 114 years, Morinaga has carried out its corporate
operations guided by the vision, "We Offer Good Health with Delight & Taste."
One of Japan's leading candy and confectionery manufacturers, Morinaga & Co. Ltd. is also credited with
introducing Western-style treats to Japan at the dawn of the 20th century. After more than 114 years,
Morinaga has remained at the top of the Japanese candy industry, producing a strong line of candies,
chocolates, frozen desserts and snacks, and nutritional products. Entering the new century, Morinaga has
developed a new "power brand" strategy emphasizing its core product lines, which include Milk Cocoa,
Hotcake Mix, Amazake drinks, frozen desserts, and Weider in Jelly, a line of drinkable, gelatin-like drinks
marketed under license from the United States' Weider Nutrition International Inc.
The company also produces a number of other licensed candy products, including Pez and Werther's
Original. Morinaga operates five manufacturing facilities in the Tokyo region; the company also has a
manufacturing subsidiary in Taiwan and built a new plant in Shanghai, China. The company also operates
sales subsidiaries in Europe and North America, and sells its products in more than 26 countries. Listed on
the Tokyo Stock Exchange, Morinaga is led by Gota Morinaga, grandson of the company's founder.
Born in Kyushu, in the north of Japan, in 1863, founder Taichiro Morinaga went to work for his uncle, a
potter, in exchange for room and board after his father's death when Morinaga was just seven. Morinaga,
who had no formal education, became the bookkeeper of the pottery business, and then, at the age of 18,
was sent to Tokyo as the company's sales representative. Morinaga later went to work for a wholesale
company, rising to become manager of a branch office in Yokohama. Yet, after extending too much credit
to customers, the office went into debt. In order to repay his employer, Morinaga decided to try his luck in
California.
Taichiro Morinaga moved to San Francisco in 1887 and opened a hardware store, trading in high-quality,
high-priced goods--in a working class neighborhood. The business, which suffered equally from the
pervasive anti-Oriental sentiment of the era, soon failed and forced Morinaga to look elsewhere for a
livelihood.
Yet Morinaga's stay in the United States led him to an important discovery: candy. Japan had remained
closed to outside influences for more than 250 years, finally opening its borders to foreigners only in the
late 19th century. If the country's elite class had access to sweets--typically based on boiled beans--the
majority of the population had limited access to confectionery products, and sugar consumption in general
remained low. Milk and milk products were also absent from the Japanese diet. The opening of the
country's borders stimulated interest in all things foreign, and the country's growing foreign population
encouraged the import of Western-style confectionery and candy.
Taichiro Morinaga recognized that the growing foreign influence in Japan, and the country's readiness to
adopt attributes of Western culture, would inevitably extend to the country's eating habits. Morinaga
became determined to learn the art of candy making, in order to introduce new confectionery products to
the Japanese market. Despite the anti-Asian prejudice, Morinaga found a job as a janitor at a candy
factory, and there learned how to make candy.
By the end of the century, Morinaga was ready to return to Japan and start his own candy company.
Before leaving, Morinaga performed his own bit of market research, questioning members of San
Francisco's Japanese community and other Japanese visitors to the city on their candy preferences.
Morinaga discovered that the sweet most preferred by the people he questioned was marshmallows, at
the time also known as "angel food." The fluffy, egg white-and-sugar-based candy also resembled existing
Japanese confections, making it a natural first product.
Morinaga founded his business with partner Hanzaburo Matsuzaki in 1899, opening a small shop in the
Akasaka neighborhood of Tokyo. The business, called Morinaga Western Candy Confectionery,
developed quickly as the country eagerly greeted the new candy type. Morinaga himself acted as
salesman, pushing a cart from which he sold marshmallows, and other Western-styled cakes and candies.
Among these were caramels. This product represented even more of a novelty in Japan in that it
contained butter--at a time when dairy products still had not penetrated the Japanese diet. Morinaga's
caramel sales were at first limited to his foreign customers, as the Japanese shied away from the strange
product. In addition, the country's climate made it difficult to produce--and to eat--caramel, which tended to
melt and become too sticky to hold in the heat and humidity.
Morinaga set out to develop a new caramel recipe for the Japanese market, and by 1914 had perfected a
recipe that both appealed to the Japanese palate and also offered a longer shelf life. The new product
debuted in 1914, and was packaged in a pocket-sized yellow box. Known as Hi-Chew, the product
became a company flagship and one of its core products into the next century. In the meantime, the
company's strong marshmallow sales inspired the adoption of a logo, an angel, in 1905--the angel logo
also fit in with Morinaga's work as a missionary. The company adopted the name Morinaga Confectionery
Inc. in 1912.
The success of Hi-Chew led Morinaga to seek its own source of dairy products, and in 1917 the company
set up a dairy operation, which became Morinaga Dairy Industries. A year later, the company launched a
new candy line, becoming the first to introduce the chocolate bar to Japan. Meanwhile, the company
began extending its dairy product line, launching its first powdered baby formula in 1920. That launch
marked the start of the company's involvement in the nutritional products category as well.
By the 1920s, Morinaga's sales had been growing steadily. To meet the rising demand, the company
installed its first production machinery--previously, production had been by hand--and launched mass
production in 1925. Over the next decades, the company continued to add to its production capacity,
opening four more plants, and adopting increasingly sophisticated, modernized production techniques. By
the 1980s, the company manufacturing operations had become fully automated.
In the meantime, the company continued developing new product lines. Among these were baby biscuits,
called Morinaga Manna, which the company began producing in 1930. In 1935, Hanzaburo Matsuzaki
became company president. The company took a leaf from its Western counterparts in the 1930s,
promoting holidays--such as Mother's Day starting in 1937--as a means of stimulating candy and
confectionery sales.
During World War II, Morinaga turned part of its resources toward the production of penicillin, saving a
good number of lives. Following the war, the company, now led by Taihei Morinaga, decided to split up its
operations, separating its dairy business into a separate company, which became known as Morinaga
Dairy Industries in 1949. That company then developed into one of Japan's major dairy groups. The two
companies nonetheless remained closely linked, sharing the angel logo and developing common products
and marketing campaigns.
The 1950s saw new expansion for the company. In 1954, its production capacity expanded with a new
band oven--the first to be brought into Japan. Two years later, Morinaga extended its dessert offerings
with the production of ice cream, which quickly developed into one of the company's key product lines.
Another strong seller for the company came in 1957, when it introduced its popular Hotcake Mix. That line
also became one of Morinaga's flagship brands.
Attempts to introduce Valentine's Day celebrations--and linking that holiday with chocolate--had been
made since the 1930s by various Japanese companies. At the beginning of the 1960s, however, Morinaga
at last succeeded, launching a "Chocolate for St. Valentine's Day" marketing campaign. The company had
other hit products during the decade, such as Hi-Crown Chocolate, launched in 1964, and a new soft, milk-
based caramel, Hi Soft, launched in 1969. At the beginning of the 1970s, the company added a new line
of Twiggy chocolates as well.
Morinaga's sales continued to rise during the 1980's, nearing the equivalent of$1 billion by the end of the
decade. The company by then had opened its fifth manufacturing facility and had continued to extend its
product range, launching, for example, its brand of Ottoto crackers. The company also had expanded
beyond candies and confectionery to some extent, adding production of alcoholic beverages. That
business, operated under the name of Fukutokucho, produced primarily sake and shochu.
Closer to the group's core was its drive into the health and nutritional foods market. The company's entry
into the sector began in the early 1980s, and a 1983 licensing agreement with the United States' Weider
Nutrition International to develop and market Weider-branded products for the Japanese market. The
company also entered the soft drinks market, launching a rice-based health drink, Amazake, which
became one of its key brands. Tofu represented another fast-growing nutritional product for the company,
and formed a strong part of the group's international growth. By the end of the 1980s, the company had
entered some 32 countries, backed by sales and marketing subsidiaries in the United States and The
Netherlands.
Morinaga's product development continued through the 1990s. Among the most successful company
products launched during the decade were its Sold Dazen chocolates, introduced in 1993. The following
year marked the debut of a new product line, developed under Morinaga's partnership with Weider. The
new snack, called Weider in Jelly, was the first in a range of drinkable, jelly-like snacks touted by the
company as nutritional foods. The Weider line, fully launched in 1995, was credited with creating an
entirely new product category. The first variations included Weider Energy In, which claimed to provide a
sustained, quick energy boost; and Weider Vitamin In, which claimed to provide a full spectrum of vitamins
provided by a balanced meal. Targeting a young male market, the Weider line grew steadily into the next
decade, and by 2002 represented nearly 20 percent of the company's total sales.
The sustained Japanese recession into the 2000s slowed the confectionery market as well. In response,
Morinaga, now led by Gota Morinaga, developed a new "Power Brand" strategy for the new century, with a
focus on a limited range of key brands. As part of that effort, the company sold off its liquor operation in
2000. The company then began stepping up development of new products, to be launched under its array
of"power" brands--including Milk Cocoa, Weider in Jelly, Hotcake Mix, and Amazake. Meanwhile, the
company continued to manufacture and market a number of products under license, such as the popular
Pez candies and, since 2002, European favorite Werther's Original.
The 100-year-old company also had begun to look beyond the Japanese market, which remained its chief
source of revenues. At the beginning of the 21 st century, Morinaga established a manufacturing subsidiary
in Taiwan, in an attempt to conquer a share of the island's market. Morinaga also targeted Hong Kong for
sales. Yet its main interest lay in the huge potential of the Chinese mainland, with its consumer market of
more than 1.3 billion people. The company launched construction of a manufacturing facility in Shanghai,
which became operational by the end of 2004.
Updated:
9/5/2013
Steve Brantley
Director, Orange County Economic Development
Frank Clifton said the property owner Ben Wilson has been involved since the beginning and has
been instrumental in this process. He noted that Ben Wilson is already looking at re-investing the profits
from the sale of this property in other properties to further the County's development efforts.
Chair Jacobs said the Board is honored and pleased that the Morinaga Company has decided to
site their company here. The Board of County Commissioners made a decision to move toward working
with corporations to create projects like this, including offering incentives. He recognized the various
partners and neighbors, including the partnerships with Mebane and Durham Tech, in this process.
He said Frank Clifton's expertise in economic development has been invaluable; and Steve
Brantley's knowledge of the Japanese corporate culture was also instrumental in this process. He said that
the company wants to come to Orange County because of the area's diversity.
Commissioner McKee congratulated all of the partners that worked on this process. He noted that
this was a very confidential process. He said much work is still left to be done to make this project a
success. He said this should not be viewed as a one-time success, but merely another step.
Commissioner Price echoed what the other Commissioners had said. She said this is something
new for Orange County, and it expands the diversity of the County.
Commissioner Pelissier said she had received comments from the public as to why the Board
would offer incentives to a company from Japan. She said this was done because this company will offer
good salaries and benefits to residents, and it furthers the County's economic development. She said
companies are looking for the type of quality of life that is offered in Orange County.
Commissioner Gordon congratulated everyone involved.
Commissioner Price asked when the public hearing will be held.
Frank Clifton said this will happen once all of the agreements are in final form, which will likely be in
late October.
Chair Jacobs said he has been asked about the timeframe for the groundbreaking. He asked if
there was a date for this.
Steve Brantley said this will happen after the public hearings in Orange County and Mebane, which
likely means late March of 2014. He said the building will likely take until May or June of 2015, due to the
complicated makeup of the facility. He expects the open house to be after July of 2015.
Frank Clifton said this company will most likely become a community partner.
5. Consent Agenda
• Removal of Any Items from Consent Agenda
Commissioner Gordon asked for removal of items 5q and 5s
Commissioner Price agreed with these two items.
• Approval of Remaining Consent Agenda
A motion was made by Commissioner McKee, seconded by Commissioner Pelissier to approve the
remaining items on the consent agenda.
VOTE: UNANIMOUS
• Discussion and Approval of the Items Removed from the Consent Agenda
q. FY 2013-14 Budget Amendment #1-D — Approval of Two (2.0 FTE) New Appraiser I Positions
within the Revaluation Fund
The Board considered approval of Budget Amendment#1-D by approving two (2.0 FTE) additional
Appraiser I positions within the Revaluation Fund as part of the cyclical North Carolina revaluation
process, and an appropriation from the Revaluation Fund's Unassigned Fund Balance to cover the FY
2013-14 costs.
Commissioner Gordon said her concerns have to do with the process. She feels the Board has
been very careful about adding positions outside of the budget process. She is concerned about adding
permanent full time positions outside of the budget process. She would prefer that these be time limited
positions for two years, which would give the board time to consider these positions in the context of the
budget process.
Dwane Brinson said this was part of his presentation back in May, in reference to the revaluation in
2017. He said this process simply swapping contract services for in-house full time employee positions.
He said this allows for greater quality control and accurate record keeping. He said the County is going
back to a 4 year revaluation cycle after 2017.
Commissioner Dorosin clarified that the Board voted to push back revaluation two years. He asked
if these two positions would have been needed if the Board had not pushed this back.
Dwane Brinson said no. He said the 2015 revaluation would have been a different revaluation and
the 2017 one will be better.
Commissioner Dorosin asked if the 2017 would be more comprehensive, and Dwane Brinson said
yes.
Commissioner Dorosin asked if these new staff members will begin working on this revaluation
right away.
Dwane Brinson said there have already been planning sessions to move forward. He said once
these positions are on board, assignments will be given, and revaluations will move forward. He said that
once these two new appraisers are on staff, every area and neighborhood in the County will have an
assigned appraiser.
Commissioner Gordon asked why this wasn't approved during the budget process.
Frank Clifton said staff developed the budget in January, and the final recommended budget came
in May. He said staff were doing survey work in the spring and found some significant errors. This was
late in the budget process and the situation was still unclear. He said staff needed to have on-site
verification of property structures and their sizes on an on-going basis moving forward. He noted that tax
refunds cannot be given for past years, but data can be corrected moving forward. He feels that
taxpayers deserve accurate analysis to ensure a proper baseline prior to the upcoming revaluation. He
said it was eventually determined that this process would require 2 more appraisers.
Commissioner Gordon said she is already convinced that the positions are needed; however she is
not convinced that the positions are needed beyond a limited time period of two years.
Frank Clifton said that if the positions are time limited, staff would probably come back and ask for
more time. He said this is because these positions will be needed going forward, as the appeal process
extends well beyond the evaluation. He said that these appraisers will be assigned to neighborhoods, and
maintaining this will prevent inaccurate or conflicting valuations within the same area.
Chair Jacobs verified that Dwane Brinson, as a senior staff member, was making an affirmative
statement that these positions are needed on a permanent, full time basis, even after the revaluations.
Dwane Brinson said yes.
A motion was made by Commissioner Dorosin, seconded by Commissioner McKee to approve the
Budget Amendment#1-D by approving two (2.0 FTE) additional Appraiser I positions within the
Revaluation Fund as part of the cyclical North Carolina revaluation process, and an appropriation from the
Revaluation Fund's Unassigned Fund Balance to cover the FY 2013-14 costs.
VOTE: UNANIMOUS
S. Consent to Chapel Hill to Proceed with Chapel Hill Extraterritorial Jurisdiction (ETJ)
Expansion Process
The Board considered consent of the request from the Town of Chapel Hill for the Town to begin
the process to expand its extraterritorial jurisdiction (ETJ).
Commissioner Gordon said she does not object to the expansion process per se, but she does feel
that this has a bearing on the historic Joint Planning Agreement (JPA). She feels that the Joint Planning
Agreement should be acknowledged, and there should be a process in which this expansion is related to
joint planning. She suggested that the letter be assembled with some language added to the third
paragraph to acknowledge the Joint Planning Agreement.
She feels these processes should operate in concert.
Commissioner Price said her concern is that some of these items on the consent agenda should
have more information and highlights to explain fully what the Board is being asked to consider and vote
on. She said this item is not really saying that Chapel Hill and the County are going to go forward, but the
Board is consenting to beginning the process.
Commissioner Dorosin said this comes out of the Rogers Road Task Force and the idea of the
County, Chapel Hill, and Carrboro jointly funding installation of water and sewer in this community. He
said Chapel Hill could not expend funds in an area that is not in the town limits or the town's ETJ. He said
that by allowing Chapel Hill to extend their ETJ, the town will be able to participate in funding the water
and sewer. He said this is moving forward with Chapel Hill. He noted that this consent is not necessary
but just a process by Chapel Hill to make sure all partners are on the same page. He said if the town votes
to expand the ETJ this will come back to the Board for an official vote on whether the County wishes to go
along with it. He said questions regarding the joint planning agreement will be answered during the
process. He believes the people who live in the neighborhood will not see changes on the ground.
John Roberts said the extension of the ETJ is a statutory process. He encouraged the Board to
send any questions regarding the Joint Planning Agreement after the actual extension of the ETJ. He said
amendments to the Joint Planning Agreement are complicated, and it will lengthen the process
significantly.
Frank Clifton said this is an unusual request. He noted that this letter does not bind the
Commissioners to action. He noted that the letter is drafted to encourage a spirit of cooperation and to
depict that the Board accepts that the town is moving forward.
Commissioner Gordon said she is just asking what will happen to the JPA now. She just wants the
knowledge. She read the following proposed sentence: "The BOCC expressed no objection to Chapel
Hill's ETJ expansion process but requested an explanation of the amendments to the existing Joint
Planning Agreement (JPA) that could be made to recognize this ETJ expansion, along with a process and
timeline for amending the JPA."
She said this will not hold anyone up, assuming that staff can do this analysis.
Commissioner Dorosin suggested this question be posed to County staff, rather than putting that
language in the letter and asking Chapel Hill staff to get that information. He said staff could get this
information between now and when the ETJ is approved and comes back to the board, assuming it is
approved. He noted that there is a minimum of 30 days notice for a public hearing, so there is plenty of
time.
Commissioner Gordon said the amendment to the letter could suggest that Orange County staff
provide the explanation.
Commissioner Dorosin questioned why this needs to be in the letter.
Commissioner Gordon said she is expressing an objection unless the JPA issue is addressed.
Chair Jacobs suggested a middle ground where the Board expresses to Chapel Hill that this is a
concern and then re-visits this as the process moves forward. He suggested the Board ask County staff to
bring forward information on the impact that this will have on the JPA. He noted that approval of this does
not commit Orange County to anything, but it does further a Board priority of advancing the partnership to
address the concerns of the Rogers Road Community. He said he understands Commissioner Gordon's
point, and the concerns can be voiced in the letter without any requests that may slow down the process.
Chair Jacobs offered the following new verbiage: "The BOCC expresses no objection to Chapel
Hill's ETJ expansion process, although it may request additional discussion of the effects on the Joint
Planning Agreement as the process moves forward."
Commissioner Pelissier seconded this suggestion.
Commissioner Dorosin said this is about the Rogers Road community. He said the task force has
done a great job in bringing the parties together and creating momentum. He encouraged the Board to be
conscious about the signals being sent forth about the County's commitment to the process. He noted
that there have been signals sent in past sessions that give question to the County's commitment. He said
he feels the Board is committed, but being a drag on the process hurts the Commissioner's credibility.
Chair Jacobs said he does not believe anyone disagrees with Commissioner Dorosin. He noted
that there was a lot of effort in the past to put the JPA together; however he does not want the Board to be
an impediment to this process either. He feels like there should be a passive assertion regarding changes
that affect the agreement.
Commissioner Gordon said that, even to serve a good purpose, the Board should not overlook
implications for the Joint Planning Agreement.
A motion was made by Chair Jacobs, seconded by Commissioner Pelissier to approve consent of
the request from the Town of Chapel Hill for the Town to begin the process to expand its extraterritorial
jurisdiction (ETJ), with the following addition of verbiage: "The BOCC expresses no objection to Chapel
Hill's ETJ expansion process, although it may request additional discussion of the effects on the Joint
Planning Agreement as the process moves forward."
VOTE: UNANIMOUS
a. Minutes
The Board approved the minutes from April 25, May 9, 21, 23, June 4 and 18, as submitted by the Clerk to
the Board.
b. Motor Vehicle Property Tax Releases/Refunds
The Board adopted a resolution, which is incorporated by reference, to release motor vehicle property tax
values for one hundred and thirty-two (132) taxpayers with a total of one hundred and forty (140) bills that
will result in a reduction of revenue in accordance with NCGS.
C. Property Tax Releases/Refunds
The Board adopted a resolution, which is incorporated by reference, to release property tax values for
seven (7) taxpayers with a total of eleven (11) bills that will result in a reduction of revenue in accordance
with North Carolina General Statute 105-381.
d. Applications for Property Tax Exemption/Exclusion
The Board approved eight (8) untimely applications for exemption/exclusion from ad valorem taxation for
seven (7) bills for the 2013 tax year and one (1) for the 2012 tax year.
e. Tax Collector's Annual Settlement for Fiscal Year 2012-13
The Board received the tax collector's annual settlement on current and delinquent taxes, approved by
resolution the accounting thereof, and authorized the Chair to sign and upon acceptance of the reports,
issue the Order to Collect for Fiscal Year 2013-2014.
f. Amendment to the Orange County Code of Ordinances, Chapter 28 Personnel, Article IV,
28-45 Tuition Refund Program and Educational Leave
The Board approved an amendment to the Orange County Code of Ordinances Chapter 28 Personnel,
Article VII, § 28-45 as provided in Attachment 1, which would remove the operational aspects of the
Tuition Refund Process from the County Ordinance to the Administrative Rules and Regulations
promulgated by the County Manager and increased the maximum refund amount for eligible employees
from $600 to the average in state semester tuition cost per fiscal year.
g. Fiscal Year 2013-14 Budget Amendment#1
The Board approved the budget and capital project ordinance amendments for fiscal year 2013-14.
h. Application for North Carolina Education Lottery Proceeds for Chapel Hill — Carrboro City
Schools (CHCCS) and Contingent Approval of Budget Amendment # 1-A Related to CHCCS
Capital Project Ordinances
The Board approved an application to the North Carolina Department of Public Instruction (NCDPI) to
release funds from the NC Education Lottery account related to FY 2013-14 debt service payments for
Chapel Hill — Carrboro City Schools, authorized the Chair to sign, and to approve Budget Amendment#1-
A (amended School Capital Project Ordinances), contingent on the State's approval of the application.
L Request to Extend Three Time-Limited Human Service Specialist Positions at Department of
Social Services (DSS)
The Board approved a request for the Department of Social Services (DSS) to extend three existing time-
limited positions through June 30, 2014 for continued use during the transition of the legacy automation
systems to the new NCFAST program.
j. Comprehensive Plan and Unified Development Ordinance (UDO) Amendment Outlines and
Schedules for Four Upcoming Items
The Board approved the process components and schedule for four upcoming government-initiated
Unified Development Ordinance (UDO)/Comprehensive Plan text amendments.
k. McGowan Creek Interceptor Project— Easement Negotiation
The Board approved authorizing County staff to accept and acquire the private easements required to
construct and maintain the McGowan Creek Interceptor Project by negotiation, purchase or condemnation,
if necessary, and authorized the Chair to sign.
I. Performance Agreement with Town of Chapel Hill and Visitors Bureau
The Board approved the 2013-2014 performance agreement between the Town of Chapel Hill and the
Visitors Bureau and authorized the Manager to sign.
M. Amendment to the Household Hazardous Waste Services Agreement
The Board approved an amendment to the existing Household Hazardous Waste (HHW) services
agreement to include the provision of services at the Walnut Grove Church Road Solid Waste
Convenience Center when it starts being open on Thursdays beginning on September 12, 2013 and
authorized the Chair to sign.
n. Authorization to Declare Solid Waste Management Items Surplus
The Board approved declaring various vehicles and equipment surplus.
o. FY 2013-14 Budget Amendment #1-113 — Acceptance of Grant Funds for a Caregiver Support
Program and Creation of a Time-Limited, Part-Time (0.80 FTE) Social Worker I Position within
the General Fund
The Board accepted NC Division of Aging and Adult Services (NCDAAS) grant funds; to utilize those funds
and Master Aging Plan funds to establish a time-limited, part-time bi-lingual Social Worker I position to
work with Mandarin-speaking older adults; and approved Budget Amendment#1-B.
P. FY 2013-14 Budget Amendment #1-C — Acceptance of NC Department of Transportation
Grant Funds and Creation of a Time-Limited, One FTE (1.0) Human Services Coordinator
Position within the General Fund
The Board accepted grant funds from the NC Department of Transportation (NCDOT) Public
Transportation Division to identify and collaborate with transportation providers to expand services for
seniors in Orange County; approved and authorized the Manager to sign the contract; approve Budget
Amendment#1-C; and establish a time-limited Human Services Coordinator position.
r. Emergency Management and Approve Budget Amendment #1-E by Accepting State Aid
Funds Related to Orange County Flooding
The Board approved Budget Amendment#1-E for Social Services (DSS) to accept state aid funds and
ratify the Memorandum of Understanding (MOU) with the North Carolina Department of Emergency
Management signed by the County Manager in response to flooding in Orange County on June 30, 2013.
S. Rogers Road Community Center Bid Award Authorization
The Board extended the Manager's authorization to award the construction bid and execute the
construction contract up to the Board authorized capital project amount of$650,000 for the Rogers Road
Community Center.
6. Public Hearings
a. Baldwin Zoning Atlas Amendment— Public Hearing Closure and Action
The Board received the Planning Board recommendation, closed the public hearing, and made a
decision on an owner-initiated Zoning Atlas Amendment to rezone a 3.36 acre parcel of property from
EDE-1 (Economic Development Eno Lower Intensity) to EDE-2 (Economic Development Eno Higher
Intensity) in accordance with the provisions of the Unified Development Ordinance (UDO).
Michael Harvey reviewed the maps of the parcel and said the Baldwins have indicated the EDE-2
zoning would be more acceptable, and staff has concurred. He referred to the abstract and concerns of
impact on properties to the south. He said there will be no impact to this area. He said the planning board
has voted unanimously that this is consistent with the comprehensive plan and should be approved.
A motion was made by Commissioner McKee seconded by Commissioner Pelissier to close the
public hearing.
VOTE: UNANIMOUS
A motion was made by Commissioner McKee, seconded by Commissioner Pelissier to adopt
a. Attachment 3 — Ordinance Amending the Zoning Atlas
b. Attachment 5 — Statement of Consistency authorizing the zoning atlas amendments as detailed herein.
VOTE: UNANIMOUS
b. Approval of Ground Lease Between Orange County and American Towers, LLC
The Board considered conducting a public hearing on a potential Ground Lease Agreement with
American Towers, LLC, for the purpose of constructing and maintaining a communications tower in
northern Orange County; considered approving a Ground Lease Agreement with American Towers, LLC,
for the purpose of constructing and maintaining a communications tower in northern Orange County; and
contingent on Board approval, authorized the Chair to execute all necessary documents to effectuate the
Lease upon final review of the County Attorney.
Jeff Thompson reviewed the purpose of the hearing. He reviewed the site locator in the packets.
He said this tower with cable is capable of carrying commercial equipment, as well as emergency services
assets simultaneously. He referenced materials regarding AT&T coverage, as well as balloon test
information. He said the lease contemplates a non exclusive easement which will not interfere with the
Walnut Grove Solid Waste Convenience Center (SWCC) operations. He said American Towers has
completed its site survey and is ready to continue the permit process, subject to this lease approval.
Michael Harvey said he is here to give some background on this project. He said the Orange
County Unified Development Ordinance (UDO) creates a hierarchy for desired cell tower locations. He
said the first in the hierarchy is County owned property. He referenced that telecommunications master
plan map and said this map serves as a marketing tool to allow County staff to solicit from private and
county owned properties that are in essential locations.
He said he is aware of some concerns about this process. He referred to a timeline and said any
tower location on County property is subject to administrative approval. He said balloon tests must be
conducted, as well as neighborhood information meetings. He said a balloon test was conducted for this
site on August 18th, and he was personally present. He said certified letters were sent to neighbors, along
with a newspaper article and signs, informing nearby residents of the balloon test; however there were no
residents present, other than those who stopped when they saw the balloon.
Michael Harvey said once this lease is finalized the applicant will be submitting the final site plan,
and Orange County planning staff will complete the remaining environmental review. He said, because of
the process of expanding the SWCC, there have already been several environmental studies on this
property, and there are not anticipated problems. He noted that ATT had previously looked at a property
south of this location, and there were some neighborhood concerns. The County property was then
offered, and it was determined that this property would be appropriate.
John Roberts gave a review of the lease. He said the property is 1000 square feet, and the lease
is for an initial 9 year term and will automatically renew for 6, 5 year terms. He said either party is able to
terminate the lease prior to the conclusion of the initial term. He said the monthly fee will be a base fee of
$1800 per month, with 3% annual increases. He said ATT will be the anchor tenant on the tower, and
there will be additional tenants in the future who will also pay a rental fee in the future. He said all of these
funds will go toward the Landfill Enterprise Fund, to assist in post closure costs and needs.
He said there is a proposed easement, but this is not final. He said the 60 foot easement shown
could be difficult and it may not be possible to have a full 60 feet.
Michael Harvey said, in this proposed lease, the applicant is responsible for obtaining all permits for
the due diligence phase.
Karen Kemerait is an attorney in Raleigh, representing American Tower and AT&T. She said AT&T
had initially planned to construct on another site that did have some issues, but it came to their attention
that there was Orange County property available. She said this was a win-win situation for AT&T and for
the County. She noted that the propagation maps show currently available coverage. She reviewed the
areas of low coverage, as well as connectivity of the proposed site with other sites.
Commissioner Price asked if the lease is 9 or 5 years.
John Roberts said there is a typo on this, but the lease is 9 years.
Commissioner Price said when she was on the planning board there were discussion about the
balloon tests being in the winter versus the summer because of the trees. She asked if this might be the
policy for future testing.
Michael Harvey said it is not practical and not part of UDO to do these once a year. He noted that
these must be done just prior to the public hearings.
Commissioner Dorosin referred to the photographs and the labels for view and simulated view. He
asked for an explanation of this.
Michael Harvey said the view shows the actual blimp itself, and the simulated picture shows a
rendering of the actual tower.
Commissioner Dorosin asked if these could be marked better in the future.
Michael Harvey said this will be done in future submittals.
Commissioner Dorosin clarified that the revenue will go to the Solid Waste Enterprise fund. He
noted that this is a restricted fund, as far as how the money can be used, and he asked why this money
can't be put in general fund.
John Roberts said this is because the Solid Waste Enterprise funds purchased the property. He
said if the County chose to reimburse Solid Waste Enterprise for the cost of the property, then the income
for the lease could go to general fund use.
Frank Clifton said the Solid Waste Enterprise funds appear to be insufficient long term for
maintaining a landfill, so the reserves offset the demand on the general fund. He said staff felt this was
the best choice at this time.
Commissioner Dorosin asked if the easement will be paved.
Frank Clifton said part of it is already paved, but the additional part will be gravel.
Frank Clifton said, in the past, tower applications were only accepted once a year. He said that in
an attempt to gain wireless service countywide, companies are now being encouraged to submit
applications when it is convenient for them.
Commissioner Price referred to the paragraph on abandonment and asked if it is typical for a
company to wait 12 months for maintenance on a site.
Michael Harvey said this is typical, but the UDO requires the posting of regular bonds in the event
that the County has to initiate repair due to issues.
John Roberts said the abandonment provision is only in the event that American Towers goes
bankrupt. He said the County has to give a timeframe for knowing that the property has been abandoned.
NO PUBLIC COMMENT
Chair Jacobs asked for clarification on the photo titles that mention "Phelps".
Michael Harvey said this was just the original name for the project.
Chair Jacobs said this process requires approval of the lease first and then the other boxes are
filled out and staff is responsible to make sure this happens.
Michael Harvey said the lease gives AT&T the authority to submit the application, and even with
the granting of the lease they are still required to go through the appropriate permitting process. If the
permit cannot be issued, the lease is null and void.
John Roberts said there would normally be land use implications, but this will come later after the
lease is approved.
Chair Jacobs referred to page 9, 5-c and asked if this is standard language.
Michael Harvey said yes, this is mandated by the ordinance.
A motion was made by Commissioner Pelissier seconded by Commissioner Price to close the public
hearing and:
1. Consider approving a Ground Lease Agreement with American Towers, LLC, for the purpose of
constructing and maintaining a communications tower in northern Orange County; and
2. Contingent on Board approval, authorize the Chair to execute all necessary documents to effectuate the
Lease upon final review of the County Attorney.
VOTE: UNANIMOUS
7. Regular Agenda
a. Employee Benefits Updates and Preliminary Recommendations Regarding Calendar Year
Benefits for 2014
The Board received information and provided feedback to staff on employee pay and benefits for
calendar year 2014.
Nicole Clark reviewed the following PowerPoint slides:
Health insurance update
2013 Plan Highlights/Bid Update/2014 Plan Year Recommendations
September 5, 2013
2013 Summary
• Second year with United Healthcare
• 2013 Plan design changes addressed concerns from 2012 Employee Survey
• No significant complaints
• Increased employee educational opportunities
• Request for Proposals for fully insured and self-funded for 2014
Health Insurance Enrollment Comparison
2012 2013
Traditional Plan 610 605
High Deductible Plan 187 197
Total Participation 797 802
Employee Health Savings Account 81 89
Waived Health Insurance 22 21
Optional Benefits
New Enrollment Comparison
2012 2013
Medical Flexible Spending Account 165 132
Dependent Flexible Spending Account 11 16
Community Eye Care 369 42
Accident Insurance 114 36
Critical Illness 79 23
Disability 97 18
Whole Life 55 18
Benefits Activities and Programs
• Flu Clinics
• Biometrics Screenings, Health Assessment, Coaching
• SportsPlex Membership
• Employee Appreciation and Wellness Lunch
• Smoking Cessation Opportunities
• Mini Grants
• Monthly Programs:
UHC Website Demonstration (January)
Know Your Numbers (February)
Health Care Cost Estimator (March)
National Nutrition Month (March)
Employee Appreciation and Wellness Lunch (May)
In Tune Stress Management Challenge (June)
Sun Safety Awareness (June)
Cubicle Crunch "Flash Mob" (June)
National Dance Day (July)
Proposed Timeline for Renewal and Open Enrollment Activities
th
• September 5 : Initial presentation of the health insurance renewal to the Commissioners
th
• September 17 : Commissioners' decision regarding renewal of health insurance
th th
• September 18 : Discuss September 17 meeting outcome with the Employee Relations
Consortium
rd
• September 23 : Mandatory mailing to all employees regarding health exchanges and open
enrollment
th th
• October 14 —25 : Open enrollment
th
• December 6 : 2014 benefits payroll deductions begin
Mark Browder presented the following slides:
Medical Plan Update
Bid Update and Recommendation
Experience
• With over 130 public sector customers and 30 years of experience, Mark III implements and
manages the programs for the long haul.
• We design the right solutions for your organization and your employees, which are best in
class.
Mark III Customers (table)
30 Counties
6 Cities/Towns
* Transitioned from fully-insured to self-funded
Medical Plan RFP Responses
Below is the list of payors that received the RFP:
• Aetna
• BCBSNC
• CIGNA
• First Carolina Care — Declined to Quote
• MedCost— Declined to Quote
• Municipal Insurance Trust— Self-funded Only
• United Healthcare
• WellPath — No Quote
• Of the quotes that we received, only UHC is firm
• The earliest that we will have firm quotes from the respondents is September 2013
2014 Fully Insured Quotes (table)
The increase represents a 6.35% increase or $641,000.
2014 Self-funded Renewal Estimate (table)
If the County transitions to a self-funded arrangement, no increase in funding is required.
2014 Self-funded Quotes (table)
Self Funding
Components of a Self-funded Contract
• Hire an administrator to pay claims
• Purchase insurance for large claims (Stop-loss Insurance)
• Hire a network ( doctors/medical specialists/hospitals)
Plus
• Claims
• Reserves
SELF FUNDING FORMULA:
Rates = Administrator + Claims + Stop Loss + Reserves
Pros of a Self-funded Contract
• Greater Plan Flexibility
• Pricing/premium structure established by the organization
• Overall lower costs over time
- Tax avoidance — State and Federal
• Ability to establish a reserve for the plan
• Easier framework to structure wellness strategies
Cons of a Self-funded Contract
• If claims come in higher than expected, the organization is responsible for funding the high claims
(Reserve is established for this purpose)
• Plan subgroups (ABC Board and Community Home Trust) are responsible for paying their own
claims
Pros of a Fully Insured Contract
Total cost is fixed
Cons of a Fully Insured Contract
• Plan Flexibility is reduced because of carrier filings with the State Department of Insurance
• Pricing is set by the Carrier
• Higher Cost over time
Tax— State and Federal
• Wellness strategies are harder to implement, because cost is in addition to premium paid
Recommendation:
• Transition to a self-funded contract with United Healthcare
- Includes increasing the County's Health Savings Account contribution from $103.10 to $118
per pay period
• The County will purchase stop-loss insurance to protect against catastrophic claims
• A self-funded plan will provide greater flexibility for wellness strategies
• Lower long term cost by avoiding Health Care Reform and State Premium taxes ($440,000)
Mark Browder, representative from Mark III, referring to the slide on Fully Insured Quotes, said the
quote from United Healthcare ended up costing 6.35%, or $641,000 more for the same benefits.
He said, based on analysis, he believes this is the right year to transition to a self-funded
arrangement. He reviewed the numbers provided on the 2014 Self Funded Quotes slide (#13).
He said that in the process of transitioning other clients from being fully insured to self funded, one
of the goals is to make sure that money is there to pay the bills and insure that future renewal is stable.
He said the analysis recommends the County keep the current funding level, as there will be claims
that have to be paid out in the future.
Mark Browder said, referring to slide 15 on Self Funding, the tax savings of self funding would be
about 4.5 percent.
Commissioner Gordon asked for the total cost figure for the stop loss insurance.
Mark Browder said this is on an individual basis and would equal around $800,000.
Commissioner Gordon asked how the health exchanges work.
Mark Browder said these will not have a direct effect on the county. He said this is for people who
do not have coverage; so County employees cannot join the exchange, but dependents will. He said
enrollment will start October 1, but there are no plan designs or costs established yet. He said the insurers
involved are BCBS, Wellpath, and First Carolina Care.
Commissioner Pelissier noted the statement regarding County risk if claims come in higher than
expected. She asked if this risk is only for regular claims and not for catastrophic claims. She asked if
any of these other counties who are self insured had to pay out more than was expected.
Mark Browder said the counties that he manages have had no risk thus far. Regarding the other
question, he said there is total plan cost and the maximum cost to the county for this is 5% of where things
are today. He said, for individual stop loss insurance, which is for individual claims, the limit is $100,000.
He said anything above that is the insurance company's responsibility.
Commissioner McKee said there are two sub groups that currently tag onto the insurance (ABC
and Community Home Trust). He asked if this will make those groups separately self-insured if the county
goes self-insured.
Frank Clifton said those groups would be responsible for their own costs now. He said if these
groups have a negative effect on the County plan, the cost will be the responsibility of those groups alone.
Commissioner McKee said his concern with Community Home Trust is that the County is effectively
cutting them loose.
Frank Clifton said the County agreement with Community Home Trust leaves them open to find a
better plan if possible, and this has always been the case.
Diane Shepherd said she talked with Community Home Trust and ABC Board, and both are aware
that they would be responsible for their claims as of January 1 sc
Frank Clifton said the County could explore options for these two entities.
Commissioner Dorosin asked, if the County were to go self-funded, what changes would be seen
from an employee perspective.
Mark Browder said this is completely invisible to the employees as this is just a funding change.
Commissioner Dorosin asked if the recommendation to have United Healthcare as the
administrator is based on the established relationship with this group.
Mark Browder said United Healthcare was the only firm quote, and staying with this group means
that there will be minimum changes because of the existing relationship.
Mark Browder said the benefits will be the same, but everyone will get new ID cards.
Chair Jacobs asked where there is more flexibility with the self-funding model.
Mark Browder said all insurers have to file plan designs and stay within those brackets. He said
that over the past several years, plan designs have been implemented that carriers weren't filed for, but
could administer. He said that plan designs will be able to be maneuvered around based on needs and
costs.
Frank Clifton noted that the self funded model allows employees to set up their own dependent
plan.
Commissioner Gordon referred to attachment 2, and asked about option 1 on page 19.
Diane Shepherd said this discussion has been about option 2 this evening. She said option 1 is a
self insured plan, but it maintains the health savings account contribution at the 2012-13 level. She said
the only difference is an increase in the County contribution to the Health Savings Account.
Commissioner Gordon asked about the reasoning for this.
Diane Shepherd said when the high deductable plan was implemented in 2012 the rate was the
same for individuals, regardless of their plan. In 2013, the cost of the high deductible plan was
significantly lower than the traditional plans. She said this year the savings can be passed on to the
employees for the high deductable plan.
Chair Jacobs noted that this item will be brought back on the 17th for a vote.
b. Durham-Chapel Hill-Carrboro Metropolitan Planning Organization Member Agencies
Memorandum of Understanding Revisions
The Board considered and provided input on draft revisions to the Memorandum of Understanding
(MOU) between the member agencies of the Durham-Chapel Hill-Carrboro Metropolitan Planning
Organization (DCHC MPO).
Tom Altieri introduced the Metropolitan Planning Organization (MPO) staff.
He said the purpose of this presentation is for the Board of County Commissioners to provide input.
He noted that there is a transmittal letter in the packet for the Board of County Commissioners to
review, and the revised MOU is also in their packet with staff's comments. He said the most significant
revisions are: the addition of Triangle Transit to the MPO member governments and inclusion as a voting
member; the addition of a weighted vote for Orange County; and the addition of a 3 d voting seat on the
MPO staff committee. He also noted that Orange County is paying its share of the cost sharing structure
and is included in the MOU.
Tom Altieri said any comments will be forward to the MPO.
Commissioner Gordon said this is a good change for the MPO, and some of it is required. She
said, in terms of the weighted voting, Orange County was the government with the largest population
which only had one vote, and now it is more equitable. She said she had recommended the change which
added an Orange County staff member.
She noted that the wording on page 14, at the beginning of the fourth paragraph, "Failure to pay
the approved share of costs..." does not indicate by whom the costs should be paid, and this wording
needs to be clarified.
She referenced page 12, number 10, and noted that the last few words of the first paragraph, "of
the transportation study," will need further description or clarification.
Commissioner Pelissier echoed Commissioner Gordon's comments.
Commissioner Pelissier said she is glad that other entities are being invited to participate. She said
Triangle Transit has always been there and will now be able to vote.
Commissioner McKee said he does not like the addition of an agency, as a voting member, that
has a vested interest in a specific outcome. He said this is a possible conflict of interest when Triangle
Transit's sole purpose is to provide public transportation. He said that is why he can't vote for this.
Commissioner Price agreed with Commissioner McKee. Her concern is that Triangle Transit
members are not elected officials.
Commissioner Pelissier said Commissioner McKee's comments are related to the light rail project,
and he was opposed to that process. She said Triangle Transit is more than light rail and it provides
regional bus transportation. She said much of the money that comes through the MPO involves Triangle
Transit.
Commissioner McKee said it is true that he is opposed to light rail, but it is also true that he has
advocated for increased bus service. He said he has advocated for the east west route down 70. He
understands the need for public transportation, and he has no problem with TTA or anyone else serving as
advisors to this group. He objects to parties with a vested interest serving as a voting member. He feels
the Board needs to be very clear that its interest is in protecting the interests of the citizens of Orange
County.
Commissioner Price said she is not opposed to light rail or buses, but she is concerned that an
agency has the same power as elected officials.
Commissioner Gordon said she appreciates MPO staff coming, and she asked Mark Ahrendsen to
speak to the policy on this matter. She read this policy and asked him to clarify.
Mark Ahrendsen said one of the main reasons for including Triangle Transit as a voting member is
because it is a federal requirement to provide a seat for the local transit authority on the MPO.
Commissioner McKee said the Board was asked to provide feedback, and he is providing feedback
that he is opposed to this, even if it is a requirement.
Commissioner Pelissier noted that the majority of the TTA board members are elected officials.
She said the only members that are not elected officials are from Wake County. She said all of the
Durham and Orange County members are elected officials.
c. Work Group and Charge for an Assessment of Jail Alternative Programs
The Board considered the creation of a work group and charge for the assessment of Jail
Alternative Programs.
Michael Talbert reviewed the following information:
Background:
In October, 2012, the NC Council of State authorized issuance of a 50 year land lease to Orange County
for approximately 6.8 acres for construction of a jail facility. The proposed new Jail is included in the
County's FY 2013-18 Capital Investment Plan (CIP) with an estimated total project cost of$30,250,000. A
consultant has been retained to evaluate the site and determine the best configuration of the potential site,
along with any constraints (environmental/regulatory for example) that might impact the development. Site
related planning costs have been included in the CIP at $250,000 for FY 2013-14. Construction cost
estimates from firms in the business of building detention facilities range from $80,000 to $120,000 per
bed. The new jail is intended to house a minimum of 250 prisoners and provide support spaces needed for
such a facility. Site design costs are planned for FY 2015-16, and Architectural/Engineering costs are
included in FY 2016-17, with construction costs in FY 2017-18.
The proposed new Jail project involves the review of jail alternative programs, individual program's
effectiveness and impact on the inmate population of the Orange County Jail. At the August 30, 2012
Board work session, District Court Judge Joseph M. Buckner presented an overview of Court Programs to
the Board. Attachment 1 is the Power Point presented by Judge Buckner that outlines Court Programs.
On May 14, 2013 the Board reviewed a proposal from Solutions for Local Government, Inc., to assess Jail
Alternative Programs in Orange County. Before planning for a new jail begins, a comprehensive
assessment of jail alternative programs needs to be completed. The Board indicated that the creation of a
work group to address alternatives to incarceration programs operating in Orange County and the impact
each program may have on inmate population could be a feasible solution. A work group could review
alternatives to incarceration programs operating in Orange County and provide recommendations to the
Board.
Possible composition of a Jail Alternatives Work Group:
County Commissioners 2
Senior Resident Superior Court Judge or Designee 1
Chief District Court Judge or Designee 1
District Attorney or Designee 1
Public Defender or Designee 1
Clerk of Court or Designee 1
Sheriff or Designee 1
Jail Administrator or Designee 1
Department of Social Services representative 1
Mental Health representative 1
Faith Community representative 1
Project to End Homelessness representative 1
Staff/Legal Support 1
Client- one or two
Add- municipal police chief
Add-parole/probation
Suggested Charge of the Jail Alternatives Work Group
The Charge for the Jail Alternatives Work Group is to investigate and make recommendations to the
Board of County Commissioners concerning alternatives to incarceration programs operating in Orange
County and review the impact each program may have on the inmate population of the Orange County
Jail. Including but not limited to the following programs:
Pretrial Release
Pretrial Diversion
Drug Court
Family Court
Adult Probation
1. Analysis of program history organization purpose and objectives
2. Collection and analysis of program data, statistics, participation, and outcomes.
3. Analysis of program impact on inmate population.
The Work Group is directed to submit a Report back to the Board of County Commissioners by March 31,
2014.
Commissioner Dorosin asked if the recommendation is that this workgroup have 15 people, or if
this is just a suggested list of people.
Michael Talbert said this basically represents those in the alternatives community that could play a
role or have input in the process.
Chair Jacobs said he suggested adding the client.
Commissioner Dorosin said he just wondered if Michael Talbert had an opinion on optimal size for
a group like this.
Michael Talbert said he does not feel there is an optimal size.
Commissioner McKee said this is not too many. He said he was involved in the Emergency
Services work group, and not everyone shows up at all meetings. He said it is important to have all
affected parties involved.
Commissioner Price agreed with the listing.
Commissioner Pelissier she wanted to suggest more stakeholders, to include a municipal police
chief or their representative, as well as someone from the drug treatment area. She noted that the Orange
County program is incomplete and she referred to attachment 2, page 5. She noted new program -
Outreach Court.
Commissioner Pelissier, referring to the charge, said she does not want to limit this to just Orange
County programs. She said the County should look across the state and see what other communities are
doing to reduce the jail population.
Chair Jacobs said he was going to suggest that. He was concerned with some of the references
on the bottom of page 6. He feels the program should not be limited.
Commissioner Price asked about next steps.
Frank Clifton said that if the Board agrees with the concept staff will move forward to draw up a
contract with the consultant, and agencies will be notified regarding involvement. He said the organization
process can then begin.
Commissioner Dorosin asked about the relationship of the consultant and this work group. He
asked if the consultant is going to work for the work group.
Michael Talbert said one option is for the work group to meet first to identify and confirm the
charge. He said this could then be brought back and a consultant can be recommended.
Frank Clifton said a consultant provides some uniformity.
Commissioner Dorosin said originally the consultant came to the Board with a contract. He said
the Board of County Commissioners did not approve that, but is creating this work group instead, along
with the consultant. He just wants to understand the vision for what this workgroup will be doing.
Frank Clifton said the hope is that this will work out like the Emergency Services Workgroup.
Commissioner McKee said what he would hope would happen is the same thing that happened
with the Emergency Services work group. He hopes this will be a process of delving into the options that
are the best fit for Orange County.
Commissioner Dorosin asked if a consultant was already selected by the Board before the
Emergency Services Workgroup got to work with them.
Commissioner McKee said the Board of Commissioners did not select the consultant.
Commissioner Price said she thought this group would be more like the Rogers Road Task Force
where the group invited others to participate. She said that invitations can be sent out based on the
charge.
Commissioner Pelissier agreed with Commissioner McKee. She said the consultant can provide
the information to a work group. She thinks the Board should go ahead with a consultant, and then set up
a work group. She noted that it would be impossible for the Board to sort through all of the suggestions.
Chair Jacobs envisioned similarly that the consultant would be staff to the work group. He said
this consultant would then come back to the Board periodically. He said the workgroup would review and
revise the charge and would then come back to the Board of County Commissioners; after this, the
consultant would be brought in to work for the work group. He said this would also provide a facilitator and
adjudicator who has no stake in the outcome.
Commissioner McKee said he knows the Board is not choosing a board member tonight, but he
would recommend Commissioner Pelissier to be one of the Commissioners to this committee.
Chair Jacobs said he would be interested on being on this group as well.
He asked if there were any other suggestions for changes to the list.
He reviewed previous suggestions to add Outreach Court on page 5, and perhaps something in the
charge regarding investigation of programs operating outside of Orange County.
Commissioner Gordon asked if Chair Jacobs wants the work group to tweak the membership or
charge.
Chair Jacobs said he does not feel the group should tweak the membership, but the group should
review the charge. He said the charge cannot be changed without Board approval.
Commissioner Gordon said she liked the way Emergency Services work group functioned. She
asked if the Emergency Services workgroup met before the contract was given to the consultant. .
Michael Talbert said the workgroup met once or twice before coming to the Board to ask to spend
that money. He said the Board reviewed the charge at that point. He said the charge was tweaked as
things went along.
Commissioner Gordon suggested the group meet once and look at the charge. She said this might
allow them to have some input before the contract is approved.
She said the steps would be to approve the group membership, then the charge. She said the
next step is to appoint the members and have the group convene, and then review the proposed
consultant's contract and revised charge, which will come back to the Board for approval.
Commissioner Pelissier said she would suggest someone from probation be added to the list of
representatives.
Commissioner Pelissier said she would like to be on this workgroup.
Commissioner Price suggested having two people that have been clients.
Don O'Leary suggested the Board check with Aries Cox probation department as a resource.
Chair Jacobs said the group may need to talk about who the post incarcerated member or client
should be.
Commissioner Price asked why three attorneys are needed in the group.
Commissioner McKee said there have been some active service representatives and some not so
active representatives on the Emergency Services work group.
Chair Jacobs reviewed the slight adjustment to charge, and the addition of probation, municipal
police chief, drug treatment representative and possibly one or two clients.
He noted that this is 18 so far with possible stipulation that the work group will consider who to
recommend for a client, as well as whether more than one is needed.
Frank Clifton suggested the Board should appoint one Board member to be a chair and one to be
vice chair when making appointments.
Commissioner Gordon clarified that there is no consultant at this point.
Commissioner Price asked about diversity.
Chair Jacobs said the Board has very little control over many of these and this will not be known
until the suggestions come back.
Commissioner Gordon said, once the names come back, citizen representatives can also be
appointed to balance things if needed.
Michael Talbert summarized that 18 participants will move forward with each organization asking
for a representative or designee. These will be brought back, along with the adjusted charge and the work
group will then be created and the first meeting scheduled.
Chair Jacobs suggested that the desire for diversity be communicated in this process.
8. Reports-NONE
9. County Manager's Report
Frank Clifton introduced Cheryl Young as a new Assistant County Manager.
10. County Attorney's Report NONE
11. Appointments
a. Research Triangle Regional Partnership Board —Appointment(s)
The Board considered making appointment(s) to the Research Triangle Regional Partnership
Board (RTRP).
A motion was made by Commissioner Price, seconded by Commissioner McKee to appoint
Margaret Cannell to this position:
(1)Position to complete the 1 remaining year of a 2-year term (6/30/2012-6/30/2014 —currently
vacant)- Hillsborough Chamber Executive Director Margaret Cannell
VOTE: UNANIMOUS
(2)Position to begin a new 2-year term -6/30/13 to 6/30/2015 —already appointed - Commissioner
Price
b. Community Home Trust Board of Directors —Appointment
The Board considered making a BOCC appointment to the Community Home Trust Board
Directors.
A motion was made by Commissioner McKee seconded by Commissioner Pelissier to appoint
Commissioner Rich to the Community Home Trust Board Directors.
VOTE: Ayes, 4; Nays, 2 (Commissioner Dorosin and Commissioner Price)
Commissioner Dorosin said since he had been the representative to this group, he suggested that
this Board needed more diversity and he nominated Commissioner Price; Commissioner Price seconded.
VOTE: Ayes, 2; Nays, 4 (Chair Jacobs, Commissioner Gordon, Commissioner Pelissier, Commissioner
McKee)
12. Board Comments
Commissioner Price attended the North Carolina Association of County Commissioners (NCACC)
annual conference, and as part of this there was a youth conference. She said this was primarily high
school students from Future Farmers of America and 4H. She said their representative did very well. She
noted that the students participate in a budget game used in the School of Government. She said this was
a good event and something the Board should support.
Commissioner Gordon — none
Commissioner Dorosin — none
Commissioner McKee said he attended the Burlington Graham MPO meeting and Orange County's
membership in this MPO was finally approved after many months. He said there was an issue over voting,
and one member had held up the approval. He said this will likely come before the Board next for
approval. Commissioner Pelissier asked the Board to consider volunteering for, or donating to Project
Connect on October 10th. She said this is sponsored by the Partnership to End Homelessness and is
supported 100 percent by donations.
Commissioner Pelissier said she and Chair Jacobs toured the new jail facilities in Guilford County
during the NCACC conference. She said it was good to see a new jail and she hopes the County will
confer with people who have recently built a jail, to see what can be learned.
Commissioner Pelissier said the Triangle Transit board unanimously voted to invest the $5 million
to complete the application for the light rail project. She said Triangle Transit hosted an interagency
meeting last week to give an update on the light rail. She said at their last Triangle Transit meeting people
expressed concerns from the New Hope Creek advisory committee, and this resulted in TTA looking at
new rail lines. She said that public feedback is working, and there will be more community sessions in
November. She said that people are concerned with federal and state monies, but a lot of communities
are looking at other ways to fund the project.
Chair Jacobs said the Eno Users Group met today and the Lake Orange Homeowners Association
was present. He said this seemed to be an amicable and productive meeting. He congratulated Ellie
Kinnaird and Lindy Pendergrass upon their retirement. He said that a resolution of appreciation will be
presented to Senator Kinnaird at a future meeting.
Chair Jacobs noted that there is a meeting at 6:30 next Tuesday at the Maple View Education
Center regarding the White Cross Fire Substation. He said that Mebane will hold a meeting at 6:00 that
same night regarding their master recreation plan. He noted that the official dedication of Northside will be
held at 10 am on the 21 st of September. He said there was an open house regarding the Eno Access
Management Plan preparatory to the public hearing next week.
Chair Jacobs said, as the Triangle JCOG representative, he participated in an exercise from the
group's last meeting on how to better serve and engage your colleagues. He asked the Board to share
their thoughts on how to be better served.
13. Information Items
• June 18, 2013 BOCC Meeting Follow-up Actions List
• Tax Collector's Report— Numerical Analysis
• BOCC Chair Letter Regarding Petitions from June 18, 2013 Regular Meeting
14. Closed Session -NONE
15. Adjournment
A motion was made by Commissioner Dorosin, seconded by Commissioner Price to adjourn the
meeting at 10:59.
VOTE: UNANIMOUS
Barry Jacobs, Chair
Donna S. Baker, CMC
Clerk to the Board
6. Public Hearinas 4 ,6
a. Baldwin Zoning Atlas Amendment— Public Hearing Closure and Action
The Board received the Planning Board recommendation, closed the public hearing, and made a
decision on an owner-initiated Zoning Atlas Amendment to rezone a 3.36 acre parcel of property from
EDE-1 (Economic Development Eno Lower Intensity) to EDE-2 (Economic Development Eno Higher
Intensity) in accordance with the provisions of the Unified Development Ordinance (UDO).
Michael Harvey reviewed the maps of the parcel and said the Baldwins have indicated the EDE-2
zoning would be more acceptable, and staff has concurred. He referred to the abstract and concerns of
impact on properties to the south. He said there will be no impact to this area. He said the planning board
has voted unanimously that this is consistent with the comprehensive plan and should be approved.
A motion was made by Commissioner McKee seconded by Commissioner Pelissier to close the
public hearing.
VOTE: UNANIMOUS
A motion was made by Commissioner McKee, seconded by Commissioner Pelissier to adopt
a. Attachment 3—Ordinance Amending the Zoning Atlas
b. Attachment 5—Statement of Consistency authorizing the zoning atlas amendments as detailed herein.
VOTE: UNANIMOUS
b. Approval of Ground Lease Between Orange County and American Towers, LLC
The Board considered conducting a public hearing on a potential Ground Lease Agreement with
American Towers, LLC, for the purpose of constructing and maintaining a communications tower in
northern Orange County; considered approving a Ground Lease Agreement with American Towers, LLC,
for the purpose of constructing and maintaining a communications tower in northern Orange County; and
contingent on Board approval, authorized the Chair to execute all necessary documents to effectuate the
Lease upon final review of the County Attorney.
Jeff Thompson reviewed the purpose of the hearing. He reviewed the site locator in the packets.
He said this tower with cable is capable of carrying commercial equipment, as well as emergency services
assets simultaneously. He referenced materials regarding AT&T coverage, as well as balloon test
information. He said the lease contemplates a non exclusive easement which will not interfere with the
Walnut Grove Solid Waste Convenience Center (SWCC) operations. He said American Towers has
completed its site survey and is ready to continue the permit process, subject to this lease approval.
Michael Harvey said he is here to give some background on this project. He said the Orange
County Unified Development Ordinance (UDO) creates a hierarchy for desired cell tower locations. He
said the first in the hierarchy is County owned property. He referenced that telecommunications master
plan map and said this map serves as a marketing tool to allow County staff to solicit from private and
county owned properties that are in essential locations.
He said he is aware of some concerns about this process. He referred to a timeline and said any
tower location on County property is subject to administrative approval. He said balloon tests must be
conducted, as well as neighborhood information meetings. He said a balloon test was conducted for this
site on August 18"', and he was personally present. He said certified letters were sent to neighbors, along
with a newspaper article and signs, informing nearby residents of the balloon test; however there were no
residents present, other than those who stopped when they saw the balloon.
Michael Harvey said once this lease is finalized the applicant will be submitting the final site plan,
and Orange County planning staff will complete the remaining environmental review. He said, because of
the process of expanding the SWCC, there have already been several environmental studies on this
property, and there are not anticipated problems. He noted that ATT had previously looked at a property
south of this location, and there were some neighborhood concerns. The County property was then
offered, and it was determined that this property would be appropriate.
John Roberts gave a review of the lease. He said the property is 1000 square feet, and the lease
is for an initial 9 year term and will automatically renew for 6, 5 year terms. He said either party is able to