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HomeMy WebLinkAboutMinutes 06-10-2014 APPROVED 9/16/2014 MINUTES BOARD OF COMMISSIONERS BUDGET WORK SESSION June 10, 2014 7:00 p.m. The Orange County Board of Commissioners met for a Budget Work Session on Thursday, June 10, 2014 at 7:00 p.m. at the Link Government Services Center in Hillsborough, COUNTY COMMISSIONERS PRESENT: Chair Jacobs and Commissioners Mark Dorosin, Alice M. Gordon, Earl McKee, Bernadette Pelissier, Renee Price and Penny Rich COUNTY COMMISSIONERS ABSENT: COUNTY ATTORNEYS PRESENT: COUNTY STAFF PRESENT: Interim County Manager Michael Talbert, Assistant County Managers Cheryl Young and Clarence Grier and Clerk to the Board Donna Baker (All other staff inembers will be identified appropriately below) Chair Jacobs called the meeting to order at 7:01 p.m. He reviewed the following items at their places: - Memo - Summary from NCACC regarding the state house budget - Yellow sheet— Memo from Steve Brantley regarding partnership with the Research Triangle Regional Partnerships - White sheet— Funding information from Clarence Grier - Lavender sheet— Managers Miscellaneous Fund Appropriations - Green sheet - Jail capacity information - Peach Sheet— Information on Upgrades needed at the Southern Human Services Center - White sheet— Memo from Orange County Board of Education - White Sheet - Draft Agenda Abstract - Information Technology - Goldenrod sheet— Response from Gayle Wilson to solid waste question 1. Board of County Commissioners discussion: Additional budqet Initiatives, items and assertions Commissioner McKee said he would like to increase funding for the Meals on Wheels program, which is an outside agency. He considers this a critical program for providing meals, as well as a contact for isolated residents. Commissioner Rich said she feels it is too late in the game to discuss funding changes for larger initiatives. She would like to have this discussion earlier next year. Chair Jacobs said he is afraid that initiatives will be brought up on Thursday. He would like to do this much earlier in the spring, next year, prior to the manager's recommended budget. Michael Talbert said staff did take the Board's message from the retreat and used it to help form the proposed goals and funding. Commissioner Gordon arrived at 7:07 p.m. 2. FY2014-15 Fire District Tax Rates, Pq. 299 Paul Laughton said the Fire District section in their budget book goes from page 299 to page 304 of the budget binder. He noted the attachments for this item (#2) on the abstract, and he said Attachment A includes the requests from fire districts, as well as the current and requested tax rates. He noted that the fund balance amount is listed for each district, as of June 30, 2013. Paul Laughton said two districts, New Hope Fire and White Cross, are requesting tax increases. He said Attachment B provides a historical look at the fire district tax rates. Commissioner porosin arrived at 7:10 p.m. Paul Laughton said New Hope Fire District, outlined on page 302, has requested an increase of 50 cents, going from 9.45 cents to 9.95 cents per $100 assessed valuation. He said this increase will generate an additional $28,297 in revenue for the district. He noted that this additional money is needed to cover operational cost increases for professional services, increased personnel related expenses, needed maintenance for both fire stations, increased costs for vehicle maintenance, and the addition of money to capital reserves for future needs. Paul Laughton introduced New Hope Fire Department President Howard Pratt and Fire Chief Mike Tapp, to answer clarifying questions from the Board. Paul Laughton said much of the personnel increase is needed to right size the salaries for the fire captains. He said there are also equipment repairs that are past due. Chief Mike Tapp agreed with the needs mentioned above, and he said there was also a need to put money aside for benefit payout in the event of employee turnover. He said the district has also applied for a federal government Firefighter's Assistance Grant for $490,000 for a new truck. He said this is still in the consideration phase, and there are two trucks that need to be replaced. He said there are also facility repairs and renovations that need to be addressed at the stations. Commissioner Gordon asked if the needs at New Hope are just normal growth. Mike Tapp said this has more to do with the age factor than growth. He said the equipment is in good shape, but the cost of buying a fire truck is increasing, and it is time to start holding money so that it is available when the time comes to buy a truck. Commissioner porosin asked if the district is just asking for what is already in the manager's recommended budget. Mike Tapp said yes. Paul Laughton said White Cross Fire Department, shown on page 303 of the binder, is requesting an increase of 2.20 cents, going from 8.80 cents to 11.00 cents per $100 assessed valuation. He said this increase will generate an additional $81,371 in revenue for the district. He said this is necessary to add 2,080 hours of paid staff coverage; complete outfitting of a service company truck; increase advanced technical rescue training opportunities; cover increased costs of maintenance and replacement of equipment (radios, self-contained breathing apparatus, turnout gear, and fire hoses); cover the increase in costs for the main station renovation and expansion project; and to allow the rebuilding of their capital reserves. Paul Laughton introduced White Cross Fire Department President Tony Blake, and Chief Phillip Nassari, who answered clarifying questions from the Board. Tony Blake said this increase is primarily needed to take on the additional duties of the newly signed contract. He said there have also been problems with retention of volunteers, so paid staff is being increased. Phillip Nassari said the department is in a time of transition to modernize and increase equipment and techniques, and they have also added a station to increase the service area. He said this has depleted reserves, and the goal is to find a budget to sustain them forr the next 5 years without a requested increase. Tony Blake said this increase will bring their budget more in line with the other departments. There was a brief discussion of ISO ratings. Commissioner McKee asked if the Neville Road Fire Station addresses all of the homes. Tony Blake said yes, other than 32 in the western tip, which will be serviced by Orange Grove. Commissioner Gordon asked how they allocate paid staff versus volunteers. Phillip Nassari said paid staff typically works the Monday through Friday schedule. He said part time employees are used to fill full time positions. He said these employees also work elsewhere. He said this has been successful in lessening the burden of fringe benefits. He said if these two full time spots are approved, there are 5 or 6 part time people who will fill the hours. Commissioner Pelissier noted that there is a 5 year plan to add more staff, and she asked if that means there will be a tax increase request for additional staff. Phillip Nassari said he does not foresee them adding additional staff in the next 5 years unless there is a huge influx of calls. Commissioner Pelissier said in the future she would like to see all of the ISO ratings included in the narrative or chart. Paul Laughton said this was provided in the May 29th work session materials. Michael Talbert said this can be included in the budget book next year. Commissioner porosin asked if homeowners get a reduction in their homeowners insurance if their rating goes down. . Michael Talbert said yes, but it takes a while. He said the new station has to be in service, certified by the state fire Marshall's office, and then the area and the station have to be re-rated. Phillip Nassari said they have done district wide mailings with these notifications. Chair Jacobs asked if things are good with the payment in lieu with the UNC Animal Research Station. Phillip Nassari said they are being compensated the same. Chair Jacobs asked for the gap amount between what the research station would pay if they were a normal entity. Phillip Nassari said they are paying about one-tenth or one-eighth of what would be paid if they were a commercial property. Chair Jacobs said he notices that in 5 years their budget is almost doubled. Phillip Nassari said fleet size and staffing have been increased, and equipment has been modernized. He said a lot of this has been funded through grants, which has reduced the burden. He said this was all done to modernize techniques and standards. Commissioner Rich asked if all of the districts are applying for the same grants. Phillip Nassari said yes. Tony Blake said there is a provision that would allow multiple departments to apply for the same grant. Chair Jacobs said the subject of grants may be a good topic of conversation for their joint fire department meeting in the fall. 3. Outside Aqencies: Recommended Allocations FY2014-15, Pq. 369 Clarence Grier said the County received 52 applications, with requests totaling $1,497,252 this year, which was an increase of$438,152. He said 41 agencies were funded, totaling $1,074,100, a net increase of$15,000 above the current year's appropriation. Tonya Walton said this is a joint application process with the towns of Chapel Hill and Carrboro. She said the applications are available for two and half months and are due in January. She said there are several advisory boards that review these applications for about 6 or 7 weeks. She said these advisory boards are listed in Attachment A of the agenda abstract. She said these reviews are due at the end of March, at which time the manager's office looks at them in depth and makes funding recommendations based on the County Commissioners' viewpoint. She said the requests totaled $1.5 million, but the manager's recommendation was to fund $1,074,100, for 41 agencies. She referenced the spreadsheet on page 371 of the budget binder, which groups agencies that are currently funded as well as new or previously unfunded projects. She said the agenda abstract provides additional details about funding increases and decreases. She said the funding increases total $21,000 for 8 currently funded agencies and 2 new agencies. She said one agency is recommended for a reduction, due to implementation delays. Commissioner Rich asked if the delay and funding reduction for the Boys and Girls Club would hurt their chance to get back to their original budget amount in 2015-16. Michael Talbert said this should not impact the 2015-16 budget. Commissioner Price referred to page 370 and noted that there was no increase to Empowerment. She feels that everybody is worthy to get some funding, but some got increases and others did not. Chair Jacobs said if Commissioner Price feels strongly then she can propose to raise the amount. Commissioner Price proposed an increase of$2500 to Empowerment. Commissioner Gordon said the Board does not have to spend the entire $650,000. She said if the entire amount is not used, it could go to the schools. She said this is about 4/10 of a cent on the tax rate that is at the discretion of the Commissioners. She said she just wants to note they don't have to spend it all. Commissioner McKee said he would propose the Meals on Wheels program should increase by $6000 to get to their original request of$10,000. Chair Jacobs noted that the state has cut support for Meals on Wheels. Michael Talbert said a number of agencies are receiving funding cuts by the state and they can't replace all of the funding for all of these agencies. Chair Jacobs said he had the same proposal for the Compass Center, to increase funding by $5000. Commissioner Pelissier referred to Ligo Dojo Of Budo Karate, and said this program is geared toward youth who cannot be reached in other ways. She would like to support this program for a total of$2000. Commissioner Rich asked if it is possible to get an asterisk listing of those agencies that are going to face state funding cuts. Michael Talbert said a list can be compiled of what is known. Commissioner porosin proposed an additional $4000 in funding for the Rogers Eubanks Neighborhood Association. He said he understands wanting to fund the schools, but a lot of these human service agencies would not exist without some County funding. Commissioner Price agreed with Commissioner McKee on his request to increase funding for the Meals and Wheels program. Chair Jacobs asked Bob Marotto who takes care of injured wildlife in Orange County since the County stopped funding Piedmont Wildlife Center. Bob Marotto said two years ago $10,000 was shifted into the animal control operating budget for the purpose of entering into a performance based agreement with an area organization. He said this contract was continued with Piedmont Wildlife Center until it folded in December 2012. He said at that time, the County entered into an agreement with CLAWS. He said CLAWS provides rehabilitation of wildlife; allows for refer of clients for advice; and provides training to Animal Services staff. He said this has worked out well, and the funding is part of the Animal Services budget. Chair Jacobs said there was also a request from the Exchange Club, which is listed as previously funded. He said Nancy Coston suggested that if any money is directed to this, it could be given to Social Services, and then Social Services could contract with the Exchange Club. He said this would allow DSS to get the program that is most advantageous. He suggested $2000 be given to get this program started. He said if you count the HYAA contract, that would make three outside agencies that are being subcontracted, and he would like to see this listed. Tonya Walton said these are usually listed. Chair Jacobs noted that HYAA is not listed, and the County is supporting HYAA through Social Services. He would like these subcontracts noted. Commissioner Rich asked why the Alliance of Aids Service did not request money this year. Tonya Walton said she did contact them, but she has not gotten any response. Commissioner Rich said she would like to increase the funding to the Jackson Center by $1500, to bring it up to a total of$6000. Commissioner McKee said Voices Together is a program in Orange County schools that focuses on children with special needs and connects with them through music. He asked for an additional $1000 for this program. Commissioner Price said she would propose an increase of$2000 for Voices Together., . Chair Jacobs said he would like to give OCIM another $1000. 4. Employee Pay & Benefits, Pq. 443 Human Resources Director Brenda Bartholomew presented the following PowerPoint presentation: Pay and Benefits for Employees and Retirees Work Session Purpose � To consider and provide direction on pay and benefits for employees and retirees for FY 2014-15 Key Pay and Benefits Plan Recommendations � A COLA of 1.5% for permanent employees effective July 1, 2014 � Maintain an Employee Performance Award of$500 or $1,000 � Funding for a health insurance increase of 14.35% � Increase the living wage from a current rate of$10.97 per hour to $11.21 hour, effective July 1, 2014 � Continue the six-month hiring delay and the voluntary furlough program � Increase the 401(k) County matching contribution to $62.50 per pay period (previously $50.00), for a maximum annual County contribution of$1,500 (previously $1,200 annually) for all non-sworn law enforcement employees and continue the $27.50 contribution � Continue the mandated Law Enforcement Officer 401(k) contribution of 5% of salary � Conduct a feasibility study of establishing a County health clinic for employees Past Actions: FY 2013-14 Pay and Benefits Plan � A COLA of 2.0% for permanent employees � An Employee Performance Award of$500 or $1,000 � Funding for a health insurance increase of up to 8.0% � Maintain the living wage at $10.97 per hour � Extending the six-month hiring freeze and the voluntary furlough program � Continuing the $27.50 County contribution to non-law enforcement employees' supplemental retirement accounts, the mandated Law Enforcement Officer 401(k) contribution of 5.0% of salary � Implement a County supplemental retirement contribution match of up to $1,200 annually for all employees Position Classification and Pay Plans � The County Manager recommends: � A Cost of Living Increase (COLA) of 1.5% for all permanent employees hired on or before June 30, 2014, effective July 1, 2014 � An increase to the salary ranges by 1.5% � Continue with employee performance awards, $500 for proficient performance and $1,000 for exceptional performance, effective with permanent employees' annual performance review dates from July 1, 2014 to June 30, 2015 � Individual positions and classifications are reviewed as needed � County salary schedule is competitive with the market � Recruitment, retention and staff development and training County Contribution to Retirement Benefits The County Manager recommends: � Continuing the 5.0% contribution employer contribution to the Local Government Employees' Retirement System 401(k) program for sworn law enforcement officers � The 401(k) funds continue the County match of employees' contributions of up to $50.00 per pay period (for a maximum annual County contribution of$1,200) for all general (no-sworn law enforcement officer) employees, and provides an additional $325,000 in FY 2014-15 to increase the match to $62.50 per pay period (for a maximum annual County contribution of$1,500) for all general employees Employee and Retiree Health Insurance � A 14.35% premium increase, based on the recommendation made by Mark III, effective January 1, 2015 with the same level of coverage Orange County Living Wage � Increase the living wage from a current rate of$10.97 per hour to $11.21 hour, effective July 1, 2014 � Based on the Health and Human Services Poverty Guidelines for the region of Orange County the cost of living (wage per hour) � The recommended budget increase of$10,140 covers the non-permanent wages and FICA costs for affected general fund departments Six-Month Hiring Delay � Recommend extending the six-month hiring delay that was implemented in FY 2010-11 � Between July 1, 2013 and January 31, 2014, over $2.25 million was saved because of hiring delays � Total savings from the hiring delay is projected to be more than $2.0 million. Voluntary Furlough � Recommend extending the voluntary furlough program that was initially implemented in FY 2009-10 � Anticipate cost savings of$30,000 in FY 2014-15 Retiree Health Benefits � The County Manager recommends funding $1.8 million for general fund retiree health benefits � Retiree health care costs increase is due to the aging of the retiree population and the increase in health care costs � Encourage all retirees, especially pre-65 retirees to participate in preventative care, health assessments and health screenings to reduce claims and to realize better health among retirees Commissioner porosin asked if the increase in health premiums will be borne by the employees or the County. Brenda Bartholomew said individual County employees will be covered entirely by County contribution, but the employees will pay 48 percent of the cost for dependents. Commissioner porosin referred to the proposal to increase the living wage and asked how this does not affect any County employees. Brenda Bartholomew said it does not affect permanent employees because they currently earn $12.76 per hour; however 75 temporary employees will be affected. Commissioner porosin asked if there are any permanent positions that are paid less than the $12.76. Brenda Bartholomew said no. Commissioner porosin would like to know how much it would cost to make a minimum wage of$12.76 per hour for all employees. Michael Talbert said he could get those numbers. He said many of the 75 temporary employees are seasonal. Commissioner porosin said it would be useful to know if it is feasible to do this. Chair Jacobs said he would like to know who these 75 temporary employees are. Brenda Bartholomew gave him the following list of employment departments and the number of temporary employees: library (20), parks and recreation (30), Aging Department (14), and Emergency Services (9). Chair Jacobs said for future reference he would like to know why these are temporary employees versus permanent employees. He would also like to see what the housing living wage was for Orange County. He would like to see the County working toward the minimum permanent wage, not just the housing and living wage. He said this was done in the past for the Sheriff's Deputies, since they were required to live in Orange County. He would like to have a conversation about this in the future. Commissioner Gordon asked if the $1.8 million for general fund retiree health benefits is for current retirees. Michael Talbert said this is to fund current benefits for current retirees for next year. Commissioner Gordon asked where the OPEB is within this budget. Michael Talbert said it would be the unassigned fund balance as of June 20, 2014. . Commissioner Gordon asked for the estimate of the unassigned fund balances. Clarence Grier said this number was estimated to be $20.17 with the three years taken out. He said if you add the three back in it would be close to $38 million. Commissioner Gordon asked if the fund balance projections by different categories could be written up for June 12 Clarence Grier said this would be available by Thursday. Commissioner Price said when the discussion happens regarding the living wage, she feels that $11.21 is a minimum wage, not a living wage. She would like to see how this really works. She said in other places minimum and living wage is $15 per hour. She would like to add this in for future discussion. Chair Jacobs thanked Human resources for the $25,000 in funding toward the possibility of an in-house health clinic. Chair Jacobs said they are getting close to have enough information on self-insurance to move the health care decisions from the fall to the spring as part of the budget process Commissioner Rich referred to the Health Savings Account (HSA), and asked if the majority of people are taking advantage of that. Diane Shepherd said there has been an increase in the use of this health savings account option. 5. Discussion of County Department's FY2014-15 Budqet Requests • Register of Deeds, Pg. 398 Darryl Butts and Deborah Brooks said the total net increase for this department is $47,000, due to an expenditure increase of$9500 and a revenue decrease of$38,000. He said the revenue decrease is primarily due to a decrease in register of deeds fees, and marriage license fees. Deborah Brooks expressed appreciation to the Board and staff. Commissioner Gordon thanked Ms. Brooks for all of her years of service. Commissioner McKee asked if the credit card program had been implemented. Deborah Brooks said this has been up and running since April 2014. Commissioner Rich asked about the progress with digitized files and back scanning. Deborah Brooks said the back scanning is up and running, but staff is going back to make sure everything is correct before merging it. The Board thanked Deborah Brooks for her many years of service. • Sheriff, Pg. 401 Darryl Butts reviewed the following Sheriff's Office budget highlights: • The increase in Operations in FY 2014-15 is due to a $.03/mile increase in the Motor Pool surcharge (from $.05/mile to $.08/mile), and increases in Contract Services to cover the costs of in-car camera and server maintenance, and fingerprinting technology maintenance. • The FY 2014-15 Manager Recommended budget includes two (2) additional Deputy Sheriff I positions for transport operations. The number of involuntary commitments has increased over the past several years, and this requires two deputies for each transport, with most trips taking approximately 5-8 hours per patient. Transports are mandated by the State, which require taking patients from the location of the incident to the hospital, and then to a facility for treatment that is designated by the hospital. Note: During FY 2009-10, the Sheriff's Office voluntarily relinquished two vacant Deputy Sheriff positions to help cut costs during the economic recession. • The Capital Outlay of$101,858 in the 12-month Estimate for FY 2013-14 includes the purchase of three (3) patrol vehicles, one paid from the receipt of ABC Board funds, and the purchase of four (4) portable radios. • The increase in Revenue projected for FY 2014-15 includes additional revenue anticipated for out of county transports. Sheriff Lindy Pendergrass said these two positions are needed because the road deputies are being taken off of the road, and timed detention staff are having to be used for transport. He said there has been a 30 percent increase in these transports this year. Chair Jacobs thanked Sheriff Pendergrass for all he has done over the years for Orange County. Commissioner Gordon congratulated Sheriff Pendergrass on his many years of service and thanked him for what he has done for Orange County. She noted that he has been in office longer than she has. Commissioner McKee asked if they are covering all of the costs of maintaining the jail. Sheriff Lindy Pendergrass said the capacity is 130, and last year's daily average was 130. He said they are working each day to keep the count down. Chair Jacobs asked him how many misdemeanor prisoners are generated in County that are 91 to 180 days. John Selew said he does not have an exact answer, but it is a small number. He said most misdemeanors fall under the 91 day time frame. Chair Jacobs said since the state budgets make the County responsible for these, he hopes the local criminal justice system will adjust. Paul Laughton said staff just received notification that the vendor will no longer support or service the in-car cameras, and parts will not be available. He said the cost quotes to replace these 60 cameras is about $500,000. He said this will likely come to the Board in the fall, and the timeline would be to have the equipment in by October for installation in December. Sheriff Lindy Pendergrass said this will be a 5 year lease plan, with maintenance fees included. Paul Laughton said it would be a 59 month lease plan for a little over $100,000 per year. He said there are several different quotes to consider. • Aging, Pg. 43 Tonya Walton said the Department on Aging is comprised of the general fund and a grant project of the Senior Wellness Grant. She said there is a net County increase of$1300 in the grant project as a result of a COLA adjustment. She said there is a net increase of $55,000 in the general fund. She said half of this increase is due to COLA adjustments, and the remainder is due to RSVP program changes and Senior Center program improvements. She said the Senior Center program improvements total about $20,000. She noted that detailed breakdowns of these items can be found within the Aging section of the budget binder, beginning on page 43. Commissioner McKee thanked the department for providing services to the seniors throughout the County. Commissioner porosin referred to page 43, and he noted the 2013-14 estimate of $565,000 and the fact that the actual estimate for this year was about $100,000 higher. He said the request this year is back to the $565,000 and he asked for an explanation of this. Paul Laughton said this document does not show the revised budget, and the original budget does not show the amendments done throughout the year due to additional grants and fees. He said the revised budget is available in the line item detail, and this is more in line with the 12 month estimate. Commissioner porosin asked if staff expects the same thing to happen where there will be revisions that make the budget much higher. He said he uses the budget notebook, and he would like all of this information in one place. He suggested an additional column that lists the actual budget. Michael Talbert said Aging, more than any other department, gets more additional funds during the year through various sources. Commissioner porosin suggested that these could be added up and included in an additional line. Michael Talbert asked if Commissioner porosin would like another column that shows a summary of the amendments. Commissioner porosin said yes. Paul Laughton said the revised budget for the Department on Aging is $1.96 million. Commissioner Gordon said that after the budget is completed, the Board could ask for suggestions to improve the budget process the next year. • Animal Services, Pg. 53 (including Fee Schedule change requests, Pg. 498 and Non Departmental Items, Pg. 359) Darryl Butts said the Animal Services had a total County increase of$43,000 in 2014- 14, due to expenditure increase of$62,000 and a revenue increase of$19,000. He said there is a separate spay neuter fund within the department, and it has an expenditure and revenue decrease of$10,250. He referred to the 2013-14 12 month spay neuter fund estimate as $22,767 in County cost. He said this cost would be absorbed by the spay neuter fund balance, not the general fund. Darryl Butts reviewed the following highlights: Animal Services: Animal Shelter Division Budget Highlights • The FY2014-15 Manager Recommended Budget includes a new Veterinary Health Care Technician (total Personnel Services cost of$42,288) to address the chronic and challenging shelter staffing gaps; approval of this position would allow for a decrease in Temporary Personnel of$10,250 making the total County cost for the new position $32,038 • Inclusion of new fee (Sale of Cat Carriers) — cat carriers are an item that have been frequently requested by the public and provides a safe means of transport for cats adopted from Orange County Animal Services. There was some discussion of rabies cases and vaccination clinics. Chair Jacobs asked what percentage of animals in the County are unlicensed. Bob Marotto said this number is about 50 percent. Chair Jacobs urged the ASAB to discuss amnesty for residents that don't pay the fee, in order to encourage them to get the proper vaccinations. • DEAPR— Department of Environment, Agriculture, Parks & Recreation, Pg. 106 (including Fee Schedule change requests, Pg. 487 and Non-Departmental items, Pg. 346) Tonya Walton said the department has a net budget change of$126,000 and the key budget drivers are an increased demand for parks and recreation facilities. She said the overall positive is an increased revenue growth of about $30,000 this year in program, athletic and facility fees. She said new park openings make up $36,000 in expenses, and this includes the opening of Blackwood Farm Park on a limited basis. She reviewed some of the following budget highlights: Department of Environment, Agriculture, Parks and Recreation: Support and Administrative Services Budget Highlights • Proposed Fee Schedule Changes, effective July 1, 2014: ❑ Athletic Fields (Tournaments): New fee category to help offset additional expenditures in field lining and preparation, as well as on-site staff time during tournaments. Hourly rate. Prior Rate: $25 resident, $37.50 non-resident New Rate: $35 residents, $52.50 non-resident ❑ Special Event Vending: Technical amendment. This category was accidentally eliminated when the Tournament Vending Permit fee was modified in the FY 2013-14 Approved Budget. Daily rate. Rate: $15 per booth Department of Environment, Agriculture, Parks and Recreation: Recreation Budget Highlights • The Division will be working with one of its vendors to provide program scholarships for residents registering for classes in science, technology, engineering, arts, and mathematics ($3,500). This scholarship fund will support 80 low-income program participants, annually. • Revenue Increases: Increased FY 2014-15 revenues ($17,343) based on high program enrollment and facility registrations in FY 2013-14. • Increased Supply Needs: Additional funding for program (e.g. shirts, class materials) and concession supplies ($8,137). • Recurring Capital: FY 2014-15 Budget includes the replacement of the primary cooking unit, for the Soccer Center concession stand. Department of Environment, Agriculture, Parks and Recreation: Parks Budget Highlights • New Position Request: The FY 2014-15 Manager Recommended Budget includes a Parks Conservation Technician II (0.75 FTE), effective November 1, 2014 ($26,256). The FY 2013-14 Budget included seasonal staff funds to open Blackwood Farm Park, for 20 hours per week. However, demand for additional hours is expected and a permanent part-time position would meet that need. Reduced seasonal staff funds would offset a small portion of position costs ($1,207). • Park Operating and Recurring Capital Needs: The FY 2014-15 Budget includes increases in operating expenses ($41,918) to maintain expected standards of quality and fund increasing needs, and to replace older equipment (two lawnmowers totaling $49,735). In the past five years, the County has opened four new parks and the department has expanded its oversight of countywide grounds and landscape areas. This has been done without additional permanent staff and small increases in operating expenses. Blackwood Farm Park will open later this year, Department of Environment, Agriculture, Parks and Recreation (DEAPR): Soil and Water Budget Highlights • The three-year project will cost $97,500. The County will contribute a total of$40,000; CLG will contribute $27,500; and private grants, sponsorships and manuscript purchases will fund the remainder ($30,000). • The FY 2014-15 budget totals $25,000; the County will contribute $10,000 and CLG will contribute $15,000. The County's contribution is budgeted in the Transfers to Other Funds section, of the Recommended Budget. Tonya Walton reviewed the non-departmental items, beginning on 346. She noted that the Blackwood Farm Operations amount has been zeroed out. She said this project has now been incorporated into DEAPR. She said other parks projects have been included in a new future parks line item in the department budget. She noted the substantial $29,000 increase in the Upper Neuse River Basin Association dues. She said the Board had approved $10,000 of this increase during the current fiscal years for a best management practices nutrient credit development project. She said the remaining $18,000 is requested to fund a four year water quality monitoring project. Tonya Walton referred to the Culture and Recreation section beginning on page 362. She said there have been issues at the Senate level, related to the Forest Service, including a proposal for a tiered structure that requires residents to write a forest management plan. She said the fee ranges from $250 to $750, depending on the acreage of land. She said the County did 62 of these plans in 2013-14, so there could be substantial cost to residents if they are required to write them. Dave Stancil said Blackwood Farm Park is proposed for opening before the end of the calendar year. He said the operational items include the increased purchase of volunteer agricultural district signs, which is a new problem. He said operational costs, such as electricity, are also higher. Commissioner Price noted the tournament fee of$35 for residents, and asked how tournaments are defined as opposed to other activities. Dave Stancil said this would be determined by specific criteria, including the schedule of the event and the number of fields used. Commissioner Price said it needs to be communicated to local residents that parks are open to the community, and fees are only charged for renting facilities. Dave Stancil said signs and brochures can be created to communicate this. Commissioner McKee asked for more explanation regarding the Upper Neuse River basin and surface monitoring. He is concerned that the requirements are not achievable and may create problems for agriculture in Orange County. Dave Stancil said the Upper Neuse River Basin Association is aware that the Environmental Management Committee (EMC) has a small window to make a case for modification of the rules. He said 3-5 years of monitoring are required to make that case, and that is what the association is proposing with these funds. Commissioner McKee asked if there is anything else the County should do. Dave Stancil said the agricultural rules process is out of their purview, and it will run its own course. He said staff had considered the option of doing self monitoring, but this would not count, as the EMC will only consider regional data, which is why the association data is important. Commissioner McKee said he thinks it may be important for the County to collect its own data in case this is needed down the road. Commissioner Gordon asked about an earlier reference to partners who use facilities and do not pay. Dave Stancil said one example is that the YMCA runs a summer camp at the Efland Cheeks Community Center, and the operational costs for this are covered by the County. He said lighting expenses at ball fields are another example. Commissioner Gordon asked if HYAA pays. Dave Stancil said yes. He said there is usually a middle ground between actual cost and the fee that is paid. Commissioner Gordon suggested a future discussion about possible need for changes. Dave Stancil said there has been a proposal for creating a template to evaluate partnerships. Michael Talbert said this is the model that will be followed with RENA. He said RENA will levy fees for the services they provide, and the County will cover the operational costs for the facility. Chair Jacobs asked if the Sportsplex charges different rates for in-County and out of County users. Dave Stancil said he will check on this. Chair Jacobs noted that there is an agreement to sell sponsorships at the Eurosport Soccer Center. He asked if this is being marketed. Dave Stancil said this is marketed on a limited basis, but there is no active advertising. • Economic Development, Chapel Hill/Orange County Visitors Bureau and the Orange County Arts Commission, Pgs. 120 and 438 (including Non-Departmental items, Pgs. 348 and 362) Tonya Walton began on page 120, and said the Economic Development Division has a $32,000 increase due to COLA adjustment and the mid-year FTE addition referenced in the following highlights: Budget Highlights • 2014-15 Personnel: Cost includes 0.50 FTE increase for Economic Development Coordinator position ($23,468). The BOCC approved the position during its January 24, 2014 Regular Meeting. • Note: The Article 46 Quarter-Center Sales Tax has its own section within the budget document, which outlines tax-funded economic development initiatives. Tonya Walton said there are non-departmental changes as well. She referred to page 346, and said there is a recommended funding increase of$15,000 to the Friends of North Carolina. She referred to the Visitors Bureau, beginning on page 438, and said this division has a $248,000 increase in the Visitor's Bureau fund budget. She said there are no significant changes within the Arts Commission, and the increase in the Visitor's Bureau is due to the addition of a new sales manager position, as well as new marketing initiatives. She referred to a new revenue change listed on page 440. She said the Town of Chapel Hill will not be providing the requested additional $25,000 for 2014-15, so the bureau is requesting an increase of$25,000 in the fund balance appropriation. Tonya Walton said the capital request is for carpeting replacement and infrastructure improvements to the Visitor's Bureau center. Steve Brantley said the new Agricultural related position has been advertised by Human Resources, and the best 25 applicants are being reviewed for interviews with a newly formed team. Commissioner McKee asked if there was any indication as to why Chapel Hill did not fund the requested $25,000 increase. Laurie Paolicelli said the town is up to $175,000 in funding, and every year staff asks for more. She said the request was for $200,000, but the town now has them on a bonus system. She is confident that the requested number will be reached, but it is not in the front end of the contract. Laurie Paolicelli thanked the Board for their support. She said this has been a great year for Orange County, and all indications are that the tourism sector is strong. Commissioner Rich said there have been discussions on the Visitors Bureau board about the possibility of taking the $48,000 per year that is currently being used for rent, and using this for marketing. She said the goal is to take this money and use it to double and triple what is happening now. Anthony Carey, Chair of CHOCVB, said as a hotelier, he has seen ad campaigns do wonders. He said the Board sees this rent every month, and he wants to take that expense and put it into the marketing fund and return it. He said a study has shown that local residents do not know Chapel Hill and UNC. He urged the Board to allow the $48,000 to be put to use to bring in returns. Commissioner Rich said that a visitor spends an average of$35 for a day visit, but that number goes up to $225 if they stay overnight. She said advertising is the key, and this is money well spent. Commissioner Price asked where the $48,000 goes. Michael Talbert said the Board has had a policy over the years to recover indirect costs or overhead for those departments that have other funding sources. He said this request would be a policy decision for the Board to take. He said if the $48,000 was not charged, the Board would also have to approve the money for advertising use. Commissioner Price said this means the County charges the department rent that comes back to the general fund. She would be in favor of giving this money to the ad campaign. Clarence Grier said this is an indirect cost, and the rent was charged just to cover the cost of maintenance and upkeep of the building. Commissioner Gordon said this is a policy change because the policy is in place for other governments and departments. She said the Board would have to justify specifically why the change was made for the Visitors Bureau. She said there may be a way the Visitors Bureau is different. Commissioner Rich said the Visitors Bureau is an economic driver that brings millions of dollars of sales tax to the County. She said it is not right for a County department to be paying rent to the County. She said none of the County's property taxes go to support the Visitors Bureau. Commissioner Gordon said that perhaps the rationale could be that the Visitors Bureau is a County department, and that County departments should not have to pay rent. Chair Jacobs said he would like to see a list of the County departments that are paying direct and indirect costs. Clarence Grier said the total is $438,000 for all departments. Michael Talbert said it is only three departments, including: Emergency Services, Solid Waste and the Visitors Bureau. Chair Jacobs noted that the fund balance for the Visitors Bureau is not treated as separate from the County fund balance. Commissioner McKee said he agrees that an adjustment to the Visitors Bureau would not automatically extend to the other two departments. He is in favor of doing this. He encouraged the town partners to step up on this as well and give more. Commissioner Price said the Visitors Bureau is under the division of economic development, and they should not pay anyway. Commissioner Rich said the next step was to talk to Hillsborough, Carrboro, and Chapel Hill to ask for more support. Chair Jacobs asked what the County contributes to the Visitor's Bureau. Laurie Paolicelli said Orange County levies 3 percent occupancy tax and has given all of its occupancy tax to the Visitors Bureau. Commissioner Pelissier asked what percentage of the occupancy tax Chapel Hill contributes. Laurie Paolicelli said Chapel Hill contributes 18 percent. She said Carrboro and Hillsborough currently contribute zero, but they have recently established legislation to levy 3 percent, and she believes they will work with the Visitors Bureau in the future. Chair Jacobs said if the majority of the Board wants to waive rent, then it can be counted toward Orange County's contribution. Michael Talbert said the County contribution would not change, it would just be spent differently. He said there are two components to the indirect cost; one is an actual overhead plus the rent. He asked if the Board wants to eliminate half of this and charge 50 percent of what would be normal under the indirect cost plan. Chair Jacobs said that is all the Board was being asked to consider. Chair Jacobs said Economic Development has a small staff, and the Board sees all of the things they are working on. He said there is no one whose primary focus is business retention, and he would propose another position to address this issue. He said this would be somewhere in the range of$45,000 to $65,000. Steve Brantley agreed that the department has a small staff, and they continue to do the same tasks. He said it is a full time job to do something new, like business retention. Commissioner Rich asked if this proposal is for this budget season. Chair Jacobs said yes. Commissioner Rich and Commissioner Price expressed their support for this. Chair Jacobs said this should be added to the list for Thursday's meeting. Tonya Walton said this position with benefits would be about $78,000. Commissioner Price said the Research Triangle Regional Partnership (RTRP) is changing its bylaws, and dues are being increased from $20,000 to a per capita amount of $41,499 with no cap. She said there may be other options, and this may not provide enough bang for the buck. Steve Brantley said this is a calculated decision, based up review of what the organization has done for the County in the past. He said there was originally no choice in becoming a member; but in recent years the benefit has been marginal, and now dues are doubling with no increase in services. He feels the County can put their money to better use with a program at the Department of Commerce, and this can be done for a third of the price. He said this can be done for one year, and if it does not work they can go back to the RTRP. He referred to the yellow handout. Michael Talbert said he fully supports this, and he noted that all of their leads come from the Chamber of Commerce. Commissioner Price said most of the businesses that come through RTRP are going to Wake and Durham County. She said there are other counties that are contemplating this same decision. Chair Jacobs said he wholeheartedly supports this change. Commissioner Gordon asked what is currently in the budget. Steve Brantley said Friends of North Carolina is in the budget now for $15,000. • Emergency Services, Pg. 284 Darryl Butts said there are two funds at play with Emergency Services. He said the County general fund has a total increase of$525,000, and the E-911 emergency telephone fund has an increase of$301,000. He reviewed some of the following budget highlights: Administration Division (including Emergency Management) Budget Highlights • Consistent with the Emergency Services strategic plan, the FY14-15 Manager Recommended Budget includes full-year funding for a 1.0 FTE Emergency Management Planner. This position has a total personnel cost of$53,914 with additional one-time start-up costs of$4,342. • The FY14-15 Manager Recommended Budget includes a 0.5 FTE Public Health Preparedness Coordinator that was approved by the BOCC during FY13-14. This position is a 1.0 FTE that is shared between the Health Department and Emergency Services (each is responsible for 0.5 of personnel costs), this was previously a contract position that was shared with Person County but was converted into an Orange County employee. The total cost of the position within the Administration Division is $30,187; the other 50% of the position is allocated in Health (Personal Health Division). • The FY14-15 Manager Recommended Budget includes an increase of$48,000 in the Motor Pool account for Emergency Services; this increase is due to an increase in the motor vehicle surcharge from $.05/mile to $.08/mile. The Administration Division budgets the Motor Pool account for the entire Emergency Services Department. Emergency Services: Emergency Medical Services Division FY14-15 Manager Recommended Budget includes full-year funding for 4.0 FTE EMS Assistant Supervisors; these positions were budgeted for 6 months in FY13-14. • The FY14-15 Manager Recommended Budget includes an increase in the Overtime account of$40,000; this is primarily to cover scheduled/planned OT. • The FY14-15 Manager Recommended Budget includes an increase in the Educational Supplies account of$13,045; this increase will allow EMS to purchase additional training books/supplies and will allow the purchase of a "Mega Code Kelly Manikin" and a "Resusci Anne skill reporter", both of which will provide important training to EMS staff. • The FY14-15 Manager Recommended Budget includes $30,000 within the EMS Contract Services account to cover the cost of co-location stipends to Fire Departments that house EMS staff. • The FY14-15 Manager Recommended Budget includes $50,864 in Capital Outlay. These items include replacement of ambulance equipment (including backboards, KEDS, suction units, and Thomas packs), additional computer desktops for EMS stations, and furniture for EMS stations. • The FY14-15 Manager Recommended Budget includes an increase in both Emergency Medical Charges ($100,000 increase) and Special Events ($1,000) increase revenues; these increases are consistent with FY13-14 year-end projections that are expected to continue in FY14-15. Emergency Services: Fire Marshal Division Budget Highlights • The FY14-15 Manager Recommended Budget includes $25,803 for the Rescue Services account; this is a new account and will be allocated for awareness level water rescue services and training through the fire departments. • The FY14-15 Manager Recommended Budget includes $6,600 in Capital Outlay for the Fire Marshal Division; these funds will be used to purchase 3 portable scene light units to be used during fire investigations. Communications Division Budget Highlights • The FY14-15 Manager Recommended Budget includes full-year funding for 4.0 FTE Telecommunicators; these positions were budgeted for 6 months in FY13-14. • The FY14-15 Manager Recommended Budget includes an increase of$12,030 in Educational Supplies; these supplies will be used by the QA and Training Coordinator to increase retention through having better trained, and more prepared, employees. • The FY14-15 Manager Recommended Budget includes an increase of$21,740 in Contract Services; these additional funds will be used to fund the cost of the Intrado/Motorola NG9-1-1 project, Emergency Services has contacted the NC 9-1-1 board about the possibility of grant funds to help offset the costs of this project. Additionally, this increase will allow for the Communications Division to perform psychological evaluations of potential employees pre-hire. Jim Groves said the significant budget increase is centered around increasing customer satisfaction and reducing response time. He said there is also a focus on the ability to receive texts and videos through the NG 911 technology. He said the A-911 this will also allow for seamless sharing of information between counties. Commissioner Pelissier asked how many more positions need to be added. Jim Groves said there are still a few more positions on the telecommunications side, and after this year they should all be fully staffed. Chair Jacobs asked if the County is getting away from temporary staff and reducing turnover. Jim Groves said the department is working diligently to reduce turnover in telecommunications. He said the nature of the job will always mean some overtime. He said the turnover is usually just due to the stress of the job and the shifts required. Commissioner McKee hopes that co-location of the fire departments is reducing stress and increasing morale. Jim Groves said co-location is making significant progress with reducing response times. Commissioner Rich asked about the significant differences in several of the budget numbers. Darryl Butts said there are annual fees associated with the network infrastructure to make phone calls. He said this increase will always be there. He said some of the other costs are associated with the initial infrastructure involved with equipment purchase, and there are some grants being applied for to help with this. He said the department will need to spend down the fund balance in order to receive future grants, and this will be brought to the Board for approval in the future. Clarence Grier said the fund balance increased because $900,000 had to be given back when ambulances were mistakenly thought to be approved by the 911 Board. • Housing, Human Rights and Community Development, Pg. 317 (including Non- Departmental items, Pg. 355) Tonya Walton referred to page 325, and said the Department includes Human Rights and Relations Division within the general fund, the Urgent Repair Program, HOME, and Section 8 voucher homelessness partnership programs, which are located outside of the general fund. She said there were two key budget drivers within the Community Development fund. She outlined the highlights below. Budget Highlights • Federal Sequestration Impacts: On October 15, 2013, the BOCC restored federally sequestered HUD funds, totaling $141,110, through a General Fund Balance appropriation (Budget Amendment#2). The FY 2013-14 Commissioner Approved budget only included funding for federally-funded positions; no personnel changes occurred during that year's budget process. Tonya Walton said within the Human Rights and Relations division there was a grant specialist position eliminated, and this reduced the personnel budget by $81,000. She referred to a Human Services non departmental item on page 355, which outlines the impact fee reimbursements to non-profits meeting the established housing criteria. Michael Talbert said before Tara Fikes retired she presented a draft proposal for an affordable housing clearinghouse. He said that initiative is moving forward. He said this will come as an information item at the meeting on June 17th. He said future funding will likely be in the range of$50,000 to $75,000. Commissioner McKee asked about which year this future funding would occur. Michael Talbert said this would likely be in 2014-15. He said it needs to be presented to the partners and the towns first. He said this could be handled as a budget amendment. Commissioner porosin said he is concerned about the dwindling number of fair housing cases initiated. He said this is shown on page 322. He is suspicious that the County may not be doing a good enough job of letting people know about the fair housing enforcement capabilities available James Davis said there had been some turnover during that time, and less outreach was done. He said there are 7 or 8 cases being closed out this year, and the number has actually been increasing over the past two years. Chair Jacobs asked if James Davis felt like they were aggressively doing outreach to the community. James Davis said yes. Commissioner Price said when people are rejected for housing, they often don't report it. Commissioner porosin said they need to do a better job of getting this information out to the public. Commissioner porosin asked about the status of the permanent position. Michael Talbert said this was being left as is until the new manager is on board. • Information Technologies, Pg. 329 Chair Jacobs noted a white copy of the agenda abstract at the Commissioner's places in preparation for the June 17th meeting. Darryl Butts said the operating budget has a net increase of$394,000 for 2014-15. He said the two driving factors including 5 new FTE's approved as part of the IT strategic plan. He said the other increases were in contract services. Jim Northup said IT is in the process of hiring two of the six positions, and interviews are happening this week. He said service to Emergency Services has been increased, and IT is reaching out to other departments. He said full funding for all six positions is included in this year's budget. Jim Northup noted the salmon colored sheet that outlines the AV upgrades to the Southern Human Services Center, and he reviewed these upgrades. He said staff would like to take the existing budget, as well as another $50,000 from the Board reserve, to total $130,000 for making necessary repairs and bringing the room up to the same specifications as the Whitted Building. Paul Laughton said the IT Capital Project has put $50,000 into Board reserves for the past two years. He said only $18,000 of the $100,000 has been spent. He said this is where the $82,000 balance comes from, and the additional $50,000 would come from the approval of the CIP for next year's IT funding. He said the use of this would pretty much deplete the reserve for IT Capital. Jim Northup referred to the draft agenda item for June 17, regarding virtual desktop computers. He said a virtual desktop environment is a framework in which older, less powerful computers can connect to a more powerful server that can serve out more powerful desktops. He said this is the way the industry is going, and it saves on labor and stretches the hardware out longer. He said it also allows for home access. Commissioner Price asked if there will be traffic jams on the shared network. Jim Northup said extra bandwidth has been added and high traffic times have been prepared for. Commissioner McKee asked if information will be stored in house or in a cloud. Jim Northup said all storage will be in house. • Library Services, Pg. 332 (including Fee Schedule change request, Pg. 487 and Non-Departmental items, Pg. 362) Tonya Walton said the libraries experienced a $122,000 net county increase in 2014- 15. She said the main budget drivers are COLA adjustments and reclassifications. She reviewed the following budget drivers related to the strategic plan: Budget drivers: • New Position Request: The FY 2014-15 Manager Recommended Budget includes a Communication Specialist (1.0 FTE), effective January 1, 2015 ($25,861). Existing nonpermanent funds will partially offset position costs, which total $5,460. This position would oversee dissemination of department specific information to the public, promote and enhance the public image of the library within county government and work with local organizations and community groups. • Recurring Capital: The Main Library's budget includes funds for the replacement of 133 shelves ($15,295). The original shelves moved from the Library's old location, in the Whitted Building; the current shelf height is prohibitive to effective library operations and security measures. Tonya Walton said there are $32,600 in new initiatives in operations, ranging from electronic databases to volunteer programming. She said the current capital also includes $17,000 to replace frames attached to shelving to address security needs. She referred to the non-departmental item on page 362. She said this outlines contributions to the Mebane and Chapel Hill Library. She said the contributions to the Chapel Hill Public library totals $568,139 this year, which is 30 percent of the total Orange County library operations. Lucinda Munger said the Interlocal agreement with Chapel Hill listed a goal of reaching this 30 percent goal by 2015, so the Board has now exceeded that goal by getting to this number earlier. Commissioner Rich asked if a new interlocal agreement will be negotiated between Orange County and Chapel Hill. Lucinda Munger said yes. Michael Talbert said the original interlocal agreement was for 3 years. Chair Jacobs noted that part of this agreement was interoperability, and no progress has been made. Lucinda Munger said the last time the elected officials work group met was in December 2013. She reviewed some of these meeting outcomes, and said she can send a summary of that meeting to the Board of County Commissioners again. Lucinda Munger said the state library is actively working toward and funding for libraries to have one library card for the entire state. She said there is no downside to the sharing of materials between libraries. Commissioner McKee said if things don't move forward with regard to interoperability, he would propose reducing the contribution to the Chapel Hill Library next budget season. Commissioner porosin questioned why there is difficulty with this. Chair Jacobs said it is a combination of things. He said the Friends of the Chapel Hill Library put a lot of money into purchasing books that they do not want circulated outside of the Chapel Hill Library system; some people think it is too difficult to differentiate what should be circulated; and some of it is that one side is content with things the way they are, while the other side is not. He said the County collection is considered inferior by some people involved. He said there is another negotiation in November. He said the circulation issues seem to be an IT issue. Lucinda Munger said the technology is no longer the obstacle, as there is a product available that will allow the two systems to communicate. Chair Jacobs said the Carrboro library will potentially siphon off many of the County users of the Chapel Hill library, and this may also reduce the amount of funding to Chapel Hill. Commissioner porosin said if there is no progress, then the two should go their separate ways. • Planning and Inspections, OPT and Efland Sewer, Pg. 380 (including Fee Schedule change requests, Pg. 490 and Non-Departmental Items, Pg. 346) Darryl Butts noted the change to Efland Sewer on page 490. He said the requested rate change has been cancelled and the rate will stay at the current year amount. He said the fee schedule needs to be adjusted. Darryl Butts said there is a net County increase of$70,000 in the general fund for 2014-15. He said the expenditure increase is $255,000 and there is a revenue increase of $186,000. He said the Planning Division has a $21,000 item increase, primarily within salaries, but Orange Public Transportation is the main budget driver. He reviewed points from the following budget highlights: Administrative Division Budget Highlights Budget Highlights • The FY14-15 Manager Recommended Budget includes $3,380 in Capital Outlay; the funds are within the IT Equipment account and are for the purchase of a portable printer, a Trimble GEO GPS system, and ARCPAD software. • Continued work on BOCC identified 2009-12 priorities and updated in 2013 and 2014, including further implementation of adopted small area plans, a joint land use plan with the Town of Hillsborough, and work on economic development districts and processes and upcoming bond discussions. Current Planning Division Budget Highlights • Initiation of new and expanded OPT bus services. • Assist in monitoring and implementation of the OC Transit Plan. Engineering Division Budget Highlights • Efland Sewer Budget—the Efland Sewer Fund rate is recommended to increase from $13.39 per 1,000 gallons to $14.33 per 1,000 gallons, this is consistent with what Mebane out-of-town sewer rate will be in FY14-15. The cost to run the system continues to increase; however, at a greater rate than the revenue from sewer charges. As a result, the shortfall in the operating budget is projected to be slightly higher than last year. (Change to this item noted in comments above) • The FY14-15 Manager Recommended Budget includes a General Fund subsidy (Transfer from General Fund) of$143,750 compared to $103,050 in FY13-14. • Engineering Division will be combining with the Erosion Control/Stormwater Division beginning with the FY14-15 budget year. Because the new supervisor has not yet been named, the individual divisions are preparing budget documents separately. Next year, it is likely the two divisions will have a combined budget rather than two separate division budgets. Orange Public Transportation Division Budget Highlights • The FY14-15 Manager Recommended Budget includes 2.0 additional FTE, a 1.0 FTE Office Assistant II and a 1.0 FTE Public Transportation Driver, with a total County cost of$90,599 (Personnel costs of$84,576, Operating costs of$2,390, and one-time start-up costs of $3,633). These positions are necessary to address service expansion related to the Orange County Bus & Rail Investment Plan. • The FY14-15 Manager Recommended Budget includes $44,000 in Capital Outlay; these funds are budgeted in the Vehicles account and represent the County's 10% match for buses that will be purchased in FY14-15. • Ensure all NCDOT funds remain accessible for Orange County. • Develop a bus program consistent with the OCBRIP financial plan for use of the '/2 cent sales tax to serve rural and central Orange County with connections to intra-county and inter-county cities. • In the FY14-15 Manager Recommended Budget, the Orange Public Transportation division has total revenues of$708,147 which is an increase of$124,797 from FY13-14. Darryl Butts said there are changes in the fee schedule for inspections, as listed on page 490. He referred to the non-departmental items, starting on page 396, and said the biggest change is with the Jordan Lake Partnership dues. He said there is a fairly significant decrease ($49,901), as this is a one-time project. Craig Benedict said this was an engineering study project to do interconnection designs between the different utility providers. Craig Benedict said this year the department had $384,000 more dollars in revenue than expected. He said this indicates that the economy is picking up. He said there was $259,000 in increased expenditures in staffing and operations. He said he is missing some staff and he has had a tough time replacing an erosion control supervisor/engineer position. He is very optimistic about the OPT budget and the implementation of the bus and rail investment plan. He hopes to have the buses running by January of 2015. He said the buses have been leveraged well, and they will be getting $560,000 worth of buses for roughly $40,000. Commissioner Pelissier asked if the half cent sales tax is accounted for separately in the line item details. Craig Benedict said there are separate revenue accounts for tag revenue and half cent sales tax. Chair Jacobs referred to page 388, regarding the erosion control officer II reinstatement. Craig Benedict said he wants to fill the supervisor role first and then have them work toward hiring another erosion control technician. He said this is not in the budget now. He noted that even with depleted staff, the County won a statewide erosion control award. Chair Jacobs asked if the state has a Jordan Lake storm water management program. Craig Benedict said no. He said this is in limbo. He said this legislation is being monitored. • Social Services, Pg. 405 (including Non-Departmental items, Pg. 364) Tonya Walton said there is a net County cost increase of$381,000, and the main budget drivers for the department are the revenue reductions from the state, which total $270,000. She said the department has seen some state revenue increases, totaling a little over $1 million, in the areas of Medicaid, food stamps, and case management support. She highlighted some of the following personnel changes: Personnel Changes: Recommended Budget includes funding for the seven county social workers ($439,669), who would have been displaced by the loss of Orange County Schools' Revenue. The department has secured Supportive Case Management revenue ($123,600) and eliminated two vacant positions ($101,049) to offset the increase in County Costs ($211,421). Please refer to the Budget Highlights within the Economic Services division for more details. Tonya Walton said the operational budget impact of revenue reductions are seen in daycare and general assistance funding. She said these reductions are causing the County to see increased expenses of about $289,000. She said capital requests total $60,000, and include security and access improvements at the Skills Development Center, automated systems implementation, and computer improvements. Tonya Walton referred to the non-departmental Public Safety items on page 364. She said there was a small change to the Juvenile Crime Prevention Consult program. Nancy Coston asked the Board to do what they can in reference to funding for childcare because of the cuts in eligibility from the state. She said these cuts are breaking news, and she would have numbers at the next meeting. Commissioner Gordon asked for any information that can be provided on these cuts. Commissioner McKee asked about the safety money that was set aside. Nancy Coston said all of this will be used by the end of this month. Commissioner McKee asked if this money met most of the needs. Nancy Coston said the department was able to serve the people that met the eligibility requirements. Commissioner McKee asked if the seven positions approved by the Board are built into the budget. Nancy Coston said yes. Chair Jacobs noted that these positions are not listed as new positions because they were adopted earlier. He said this could be clearer, since the goal was just to keep these people employed, and now they are permanent positions. Nancy Coston said some of the positions at the agency were eliminated, and attempts are being made to put the other three in grant funds. Chair Jacobs asked where the social justice fund is listed. Paul Laughton said this is listed on page 357, in non departmentals, as human services. . 6 CIP Follow-up Paul Laughton said there were a couple of projects identified at the May 29th meeting to be brought back to the Board for further discussion. He reviewed the following, as outlined in Attachment A. County Project • Efland-Cheeks Community Center Upfit (New Project) - reflected a new project to provide an upfit/interior renovation to the current Efland-Cheeks Community Center in Year 6 (FY2019- 20), including new equipment and furnishings, as well as area landscaping, at a total cost of approximately $424,581. This project increases the debt service by approximately $37,464 per year beginning in Year 7. Paul Laughton said this is for interior renovation of the existing 2,755 square foot facility. He said this construction cost is running about $90 per square foot, and it also includes landscaping and new furnishings and equipment. He said this will show in years 6- 10, and the construction is scheduled to start in year 6, with debt service starting in year 7. He said the impact of personnel and operations starts in year 7. Commissioner Gordon asked what happened to the overall plan and how this would fit into it. Dave Stancil said staff did propose taking a look at the role of community centers, and this is one of those centers. He is expecting that study would take place in the next year or so. He said this is a placeholder for what could potentially be done on this footprint and what might be needed in terms of operations, equipment and personnel. Commissioner Gordon said a placeholder is very different from a commitment. Dave Stancil said as each CIP season rolls around, this will be made clearer. Commissioner Gordon said she has looked at the population of each township and she wonders if there will be two centers, or a center for each township. She said there needs to be an overall vision of what is going to be built. Michael Talbert said this is just a plan at this time, and it is just a placeholder. He said details will be worked out in the next couple of years. Follow-Up Items: • Jail Capacity Update Staff and consultants have confirmed a recommended facility capacity range of between 144 and 216 beds. This recommendation is fluid around the variables of capacity expansion, the acceptance and economics of housing Federal detainees, the operational consideration of the next Sheriff, and the findings of the Jail Alternatives Work Group. Additional information regarding the estimated costs of this capacity range will be provided during the June 10, 2014 work session. The current CIP information is adequate for the most intense initial build program should the Board choose this option. Staff will return in the fall with an update once the Jail Alternatives Work Group finalizes its recommendations, the new Sheriff provides input and operational direction, and the Request for Qualifications (RFQ) process to identify the project designer is underway. Staff estimates that the Board will be presented with an award for the designer in January, 2015. Paul Laughton referred to the jail capacity update information as provided in the green sheet at the Commissioner's places. He said the plan would be for staff to return in the fall after the workgroup has returned with recommendations and cost estimates. Commissioner Gordon asked what is currently included in the budget for this. Paul Laughton said there is a total of$30 million included right now. Commissioner Gordon said there was talk about two modules. Paul Laughton said this talks about building a core facility with initial construction for capacity of 144 beds. He said there is a range of 144 to 216 beds. Commissioner Gordon asked where this stands. She asked if something has to be done to change from the $30 million to a lower dollar amount. Jeff Thompson said the $30 million is a placeholder for the large facility. He said right now staff has corroboration with consultants on a range of general beds between 144 and 216. He said the efficacy of the jail alternatives programs, the impact of the new sheriff, and the design process are all unknown at this point. He said the elegance of this is the ability to build smaller for future expansion if needed. Commissioner Gordon asked if the $30 million is in the out years. Paul Laughton said this is in year 4. Commissioner Gordon said this will affect their debt capacity. She said right now there is sufficient debt capacity. She asked if more information will be known by fall. Jeff Thompson said yes. He said construction needs to happen by 2016, and the facility needs to be operating by 2019. • Preliminary Renovation Planning Funds for O/der Facility Needs Paul Laughton said the Chapel Hill-Carrboro City Schools (CHCCS) submitted a request on April 22, 2014 requesting $750,000 in preliminary renovation planning funds related to older facility needs. County staff has contacted Orange County Schools related to their possible planning fund needs, and this information will be presented to the Board of County Commissioners when a response is received. Paul Laughton said there is also a letter from Orange County School (OCS) Board of Education at their places. He said the second paragraph mentions that the Orange County Board of Education will be wrestling with the hard question of how to address capital needs while maximizing available funding over the next couple of weeks. Commissioner Gordon said her understanding was that if this request for $750,000 was granted, it would delay the need for another school for a period of time. She asked for an explanation of the tradeoff in terms of building capacity versus building new schools. Todd Lofrese said their district continues to grow and they are trying to keep up with capacity. He said the potential 2016 bond schedule would be too late for the Chapel Hill- Carrboro City Schools (CHCCS) to design a school or an addition to build the needed capacity. He said the money has been requested to allow for planning and design work to create a shovel ready project by the time a bond comes through. He said it might be necessary to start fund raising prior to the bond. He said the design and approval process can take 18 months or longer. He said the goal is to be ready to hit the ground running as soon as funds become available. Commissioner Gordon said the alternative would be to go ahead and build a new school. Todd Lofrese said a decision or non decision at some point will result in the district missing the window to be able to address older school needs. He said there will be a point in time where a new school is knocking on the door. Commissioner Gordon asked if this is being requested for this fiscal cycle. Todd Lofrese said they are requesting it now. Chair Bedford said the Culbreth Science Labs pushes out the new middle school to 2020, but also the new elementary school to open in 2020. She said these openings in 2020 would mean funding of$1.4 million in 2017-18, and then $14 million in 2018-19, and then another $54 million. She said it is all a matter of timing. She said they would like to extend one of these out. Commissioner porosin asked if the $750,000 is included as part of the general budget request or if it is additional. Todd Lofriese said yes, it was included. Michael Talbert said this was not in their budget request, but it was in their unfunded request. A motion was made by Commissioner porosin, seconded by Commissioner Price to adjourn the meeting at 11:46 p.m. VOTE: UNANMOUS Barry Jacobs, Chair Donna Baker, Clerk to the Board