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HomeMy WebLinkAboutAgenda - 04-21-2015 - 7dORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: April 21, 2015 Action Agenda Item No. 7 -d SUBJECT: Additional Discussion on Funding School and County Capital Needs with a Potential November 2016 Bond Referendum DEPARTMENT: County Manager ATTACHMENT(S): 1) Decision Points 2) February 17, 2015 Agenda Abstract and Attachments 1 PUBLIC HEARING: (Y /N) No INFORMATION CONTACT: Bonnie Hammersley, 245 -2300 Greg Wilder, 245 -2300 PURPOSE: To further discuss potentially addressing County and School capital needs with a November 2016 Bond Referendum and provide direction to staff on next steps. BACKGROUND: In several meetings during the past year, the Board of Commissioners has discussed the possible scheduling of a bond referendum to address County and School capital needs. At the Board's January 30, 2015 Retreat, the Board directed staff to develop materials for Board consideration regarding the Board formally expressing its intent to schedule a November 2016 Bond Referendum, including a total bond amount of approximately $125 million. The Board also directed staff to move forward with development of a process for a November 2016 Bond Referendum similar to the process utilized during the County's 2001 Bond Referendum. At the Board's February 17, 2015 regular meeting, staff shared information from the 2001 Bond Referendum. One of the first actions taken by the Board of Commissioners for the 2001 Bond Referendum occurred in late 2000 /early 2001 with the establishment and appointment of members to a Capital Needs Advisory Task Force. The purpose of the Task Force was to review County and School capital needs and provide advice to the Board concerning the elements of a proposed November 2001 Orange County bond referendum. In preparation for a November 2016 Bond Referendum, staff proposed that the Board consider approving the creation of a 2015 Capital Needs Advisory Task Force. Items recommended to the County for inclusion in a 2016 Bond Referendum would be referred to the Task Force for review and prioritization along with other proposed recommendations. Staff drafted 1) a possible plan for the size and membership of the 2015 Capital Needs Advisory Task Force, and 2) a proposed charge to the proposed Task Force. P� A suggested composition of the Task Force was: • Two members nominated by the Orange County Schools Board of Education; • Two members nominated by the Chapel Hill - Carrboro City Schools Board of Education; • One member nominated by the Orange County Parks & Recreation Council; • One member nominated by the Commission for the Environment; • One member nominated by the Affordable Housing Advisory Board • One non - elected member nominated by the Partnership to End Homelessness; • One member nominated by the Advisory Board on Aging; and • Six -Eight members appointed at -large by the Board of Commissioners. In addition, staff suggested the Board of Commissioners 1) consider the appointment of one elected official each from the Town of Chapel Hill, the Town of Carrboro, the Town of Hillsborough, and (possibly) the City of Mebane and 2) select the Chair (or Co- Chairs) for the Task Force. As part of the Task Force's activities, the Board would direct that the Task Force focus on specific criteria and utilize current policies and documents to guide its work. These parameters for Task Force work were detailed in the proposed charge (attached). Staff suggested the Board also add to, or otherwise modify the suggested elements of the charge. The Board discussed the information from staff and ultimately determined to not take any action pending the submission of priority older school renovation projects by Orange County Schools, which is expected in May 2015. The Chair and Vice Chair recently discussed this issue again with the Manager and suggested staff bring this item forward at this time, without the OCS priority information, to allow for further Board discussion and consideration. Staff is proposing that the Board of Commissioners discuss the attached Decision Points and determine the Board's interests in a potential November 2016 Bond Referendum, its component(s), and the County's next steps. FINANCIAL IMPACT: There is no immediate financial impact related to the Board determining a direction regarding a potential November 2016 Bond Referendum, its component(s), and the County's next steps. It should be noted that bonds approved by voters receive more favorable interest rates if tax funds are dedicated to the payments. RECOMMENDATION(S): The Manager recommends that the Board further discuss potentially addressing County and School capital needs with a November 2016 Bond Referendum and provide direction to staff on next steps. ATTACHMENT 1 ORANGE COUNTY BOARD OF COMMISSIONERS (BOCC) DECISION POINTS How SHOULD ORANGE COUNTY FUND SCHOOL AND COUNTY CAPITAL PROJECTS? POTENTIAL NOVEMBER 2016 BOND REFERENDUM ? ?? Does the Board want to schedule a bond referendum? If there is a bond referendum, when should the bond referendum occur? ■ May 2016 or November 2016 If there is a bond referendum, should it address one need, or multiple needs? If there is a bond referendum, what process will be followed? And does the number of needs on the referendum affect the process? Will there be a Bond Referendum Advisory Committee /Capital Needs Advisory Task Force? Does this change if there is only one need addressed via the referendum? If YES, what will be the: • Composition • Appointment process for Advisory Committee members • Process for interest groups to request funds • Process for Community Input • Public outreach responsibilities If NO, what will be the process the County pursues? If there is a bond referendum, will there be a Bond Education Committee? Does this change if there is only one need addressed via the referendum? If YES, what will be the: • Composition • Appointment process for Education Committee members • Public outreach responsibilities If NO, what will be the process the County pursues? ATTACHMENT 2 4 ORANGE COUNTY C 0 Py BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: 1110 Action Agenda Item No. 7 -e SUBJECT: Potential Notice of Board's Intent to Schedule a November 2016 Bond Referendum and Discussion on Proposed Creation of a Capital Needs Advisory Task Force DEPARTMENT: County Manager PUBLIC HEARING: (Y /N) No ATTACHMENT(S): INFORMATION CONTACT: 1) Proposed Task Force Charge Bonnie Hammersley, 245 -2300 2) Draft General Task Force Schedule Greg Wilder, 245 -2300 3) Draft Recruitment Notice for Potential Task Force Appointees PURPOSE: To: 1) Consider formally expressing the Board's intent to schedule a November 2016 Bond Referendum to address County and School capital needs; 2) Discuss the proposed creation of, structure, and charge for a proposed 2015 Capital Needs Advisory Task Force that would provide recommendations to the Board regarding the elements to be included in the referendum and consider approval; and 3) Direct the County Manager to arrange for the services of a qualified facilitator for the Task Force. BACKGROUND: In several meetings during the past year, the Board of Commissioners has discussed the possible scheduling of a bond referendum to address County and School capital needs. At the Board's January 30, 2015 Retreat, the Board directed staff to develop materials for Board consideration regarding the Board formally expressing its intent to schedule a November 2016 Bond Referendum, including a total bond amount of approximately $125 million. The Board also directed staff to move forward with development of a process for a November 2016 Bond Referendum similar to the process utilized during the County's 2001 Bond Referendum. One of the first actions taken by the Board of Commissioners for the 2001 Bond Referendum occurred in late 2000 /early 2001 with the establishment and appointment of members to a Capital Needs Advisory Task Force. The purpose of the Task Force was to review County and School capital needs and provide advice to the Board concerning the elements of a proposed November 2001 Orange County bond referendum. In preparation for a November 2016 Bond Referendum, staff proposes that the Board discuss and consider approving the creation of a 2015 Capital Needs Advisory Task Force. Items 0 recommended to the County for inclusion in a 2016 Bond Referendum would be referred to the Task Force for review and prioritization along with other proposed recommendations. Staff has drafted 1) a possible plan for the size and membership of the 2015 Capital Needs Advisory Task Force, and 2) a proposed charge to the proposed Task Force. A suggested composition of the Task Force is: • Two members nominated by the Orange County Schools Board of Education; • Two members nominated by the Chapel Hill - Carrboro City Schools Board of Education; • One member nominated by the Orange County Parks & Recreation Council; • One member nominated by the Commission for the Environment; • One member nominated by the Affordable Housing Advisory Board • One non - elected member nominated by the Partnership to End Homelessness; • One member nominated by the Advisory Board on Aging; and • Six -Eight members appointed at -large by the Board of Commissioners. In addition, the Board of Commissioners may want to consider the appointment of one elected official each from the Town of Chapel Hill, the Town of Carrboro, the Town of Hillsborough, and (possibly) the City of Mebane. The Board of Commissioners will select the Chair (or Co- Chairs) for the Task Force. As part of the Task Force's activities, the Board would direct that the Task Force focus on specific criteria and utilize current policies and documents to guide its work. These parameters for Task Force work are detailed in the proposed charge, which is attached. The Board may wish to add to, or otherwise modify the suggested elements of the charge. Upon approval of the charge and appointment of the Task Force members, the charge would be delivered to the members so that they can begin reviewing the necessary information, applying the criteria, and formulating proposed recommendations to the Board of Commissioners. The Task Force would consider all recommendations and submit a prioritized list to the Board of Commissioners for consideration for bond issue. Staff proposes that the Board of Commissioners discuss and consider approval of the proposed composition and charge for the Task Force. The Board could also provide feedback to staff and staff could subsequently present updated materials for Board approval at the March 3, 2015 regular meeting. Upon approval, the Clerk to the Board would 1) move forward with contacting the groups represented on the Task Force to solicit nominations; and 2) begin advertising for potential appointees to serve in the at large and any other positions established by the Board. All potential nominees /appointees from groups, at large or otherwise would be required to submit an application to the Clerk's Office to be eligible for appointment, with the application period being open for approximately 30 days. Base on the timeframe outlined above, the Board could likely appoint Task Force members at its April 7 and /or April 21, 2015 Board meetings. This would permit the Task Force to hold its initial meeting in May and continue meeting in May, June and through the summer break. Staff's initial proposal is that the Task Force be directed to complete its work and provide its r recommendations to the Board of Commissioners by October 6, 2015, if not before. The Board of Commissioners would then consider establishing potential bond categories and amounts and consider the County Finance and Administrative Service Department's initial estimate of the potential tax rate impacts from the debt service of approximately $125 million for the total bond package. Although not pursued in 2001, the Board of County Commissioners may also want to consider creating sub - Committees of the Task Force to review specific areas associated with a bond issue. The sub - Committees could be classified into the areas such as Schools, Public Buildings, and Parks and Open Space Facilities. The sub - Committees could be limited to twelve (12) each plus staff. As was the case in 2001, the Board may also wish to consider retaining the services of an external facilitator to assist the Capital Needs Advisory Task Force. The Task Force could receive assistance from the Dispute Settlement Center, the UNC School of Government or other resources that may be worthwhile again for the 2016 process. Two related documents are attached for informational purposes only. They are: 1) a general schedule for the Capital Needs Advisory Task Force; 2) a copy of the draft recruitment notice for potential Capital Needs Advisory Task Force appointees. FINANCIAL IMPACT: There is no immediate financial impact related to this item. Costs for administrative, logistical, and facilitator support for the Task Force would likely not exceed $20,000 and could be substantially less depending on the size and structure of the Task Force and the number of meetings required. RECOMMENDATION(S): The Manager recommends that the Board: 1) Express its intent to schedule a November 2016 Bond Referendum to address County and School capital needs; 2) Discuss the proposed creation of, structure, and charge for a proposed Capital Needs Advisory Task Force that would provide recommendations to the Board regarding the elements to be included in the referendum and consider approval; and 3) Direct the County Manager to arrange for the services of a qualified facilitator for the Task Force. rA DRAFT Attachment 1 ORANGE COUNTY NOVEMBER 2016 BOND REFERENDUM ORANGE COUNTY BOARD OF COMMISSIONERS CHARGE TO THE CAPITAL NEEDS ADVISORY TASK FORCE The Orange County Board of Commissioners has initially indicated its intention to appoint a Capital Needs Advisory Task Force to review school and County capital needs and provide advice to the Board concerning the composition of a proposed November 2016 Orange County bond referendum. Items recommended to the County for inclusion in this possible bond issue will be referred to the Task Force for review and prioritization along with other proposed recommendations. As part of the Task Force's appointment and its efforts, the Board directs that the Task Force focus on specific criteria and utilize current policies and documents to guide its work. These parameters for Task Force work are detailed in the charge below. Upon approval of the charge, it will be delivered to the Task Force so that the members can begin reviewing the necessary information, applying the criteria, and formulating proposed recommendations to the Board of Commissioners. The Task Force will consider all recommendations and submit a prioritized list to the Board of Commissioners for consideration for bond issue. In its deliberations, the Board of Commissioners will consider the County's Finance and Administrative Services Department's initial estimate of the potential tax rate impacts from the debt service of approximately $125 million for the total bond package. The Capital Needs Advisory Task Force will be charged with the following: • Review the capital needs for new and older schools as identified by the Orange County and Chapel Hill - Carrboro City Schools • Review the capital needs identified by County departments in requests submitted for the 2015 -2020 Capital Investment Plan • Familiarize itself with long range school capital funding policies as adopted by the Board of Commissioners • Familiarize itself with the Lands Legacy Program and future recommendations and plans • Confirm the need for, and timing of, new school construction projects, considering current and projected student populations • Provide recommendations on the possible elements of a November 2016 bond referendum with the items listed in order of importance from most important to less important • Provide recommended sizes and estimated costs for each bond referendum element recommended by the Task Force as well as any portion of the costs shared by the proposing /recommending entities • Ensure that each recommended element complies with the appropriate adopted policies of Orange County for Joint Capital Facilities Development, the Orange County Debt Management Policy, and the Orange County Capital Funding Policy as well as all other relevant adopted policies of the County • Ensure that all elements are accessible to and serve residents throughout Orange County • Complete its work by October 2015 The Board of Commissioners will consider creation of the Capital Needs Advisory Task Force in February /March 2015. The Board will consider appointment of Task Force members at regular Board meetings in April and possibly May 2015. This will permit the Task Force to hold its initial meeting in May and provide adequate time for the meetings that may be necessary for the Task Force to complete its work by October 2015. A suggested composition of the Task Force is: two members nominated by the Orange County Schools Board of Education, two members nominated by the Chapel Hill - Carrboro City Schools Board X of Education; one member nominated by the Orange County Parks & Recreation Advisory Council; one member nominated by the Commission for the Environment; one member nominated by the Advisory Board on Aging; one non - elected member nominated by the Partnership to End Homelessness; one member nominated by Affordable Housing Advisory Board; and 6 -8 members appointed at- large by the Board of Commissioners. In addition, the Board of Commissioners may consider the appointment of one elected official each from the Town of Chapel Hill, the Town of Carrboro, the Town of Hillsborough, and (possibly) the City of Mebane. The Board of Commissioners will select the Chair (or Co- Chairs) for the Task Force. The Board of County Commissioners may also create sub - Committees of the Task Force to review specific areas associated with a bond issue. The sub - Committees proposed are: Schools, Public Buildings, and Parks and Open Space Facilities. The sub - Committees will be limited to twelve (12) each plus staff. All potential nominees /appointees from groups, at large or otherwise would be required to submit an application to the Clerk's Office to be eligible for appointment. 10 91 CL1a I'1 ilaIM Schedule for Capital Needs Advisory Task Force a) BOCC Advertises for Task Force Volunteers March 2015 b) BOCC reviews applications, appoints volunteers to Task Force, April to Early May 2015 and designates Chair /Co- Chairs for the Task Force c) Organizational Meeting of Task Force Mid to late May 2015 d) Task Force & Subcommittee Meetings May- September 2015 e) Task Force Recommendations to BOCC First Board of Commissioners Regular Meeting in October 2015 (October 6, 2015) or Before f) BOCC Discussion of Task Force Recommendations October and November 2015 11 DRAFT Attachment 3 VOLUNTEERSNEEDED CAPITAL NEEDS ADVISORY TASK FORCE PROPOSED NOVEMBER 2016 BOND REFERENDUM THE ORANGE COUNTY BOARD OF COMMISSIONERS IS RECRUITING RESIDENTS TO SERVE ON A TASK FORCE WHICH WILL BE CHARGED WITH, BUT NOT LIMITED TO, THE FOLLOWING ITEMS: • Review the capital needs for new and older schools as identified by the Orange County and Chapel Hill - Carrboro City Schools • Review the capital needs identified by County departments in requests submitted for the 2015 -2020 Capital Investment Plan • Familiarize itself with long -range school capital funding policies as adopted by the Board of Commissioners • Familiarize itself with the Lands Legacy Program and future recommendations and plans • The Task Force will be divided into subcommittees to address specific areas associated with the bond issue • Confirm the need for, and timing of, new school construction projects, considering current and projected student populations • Provide recommendations on the possible elements of a November 2016 bond referendum with the items listed in order of importance from most important to less important • Provide recommended sizes and estimated costs for each bond referendum element recommended by the Task Force as well as any portion of the costs shared by the proposing /recommending entities • Ensure that each recommended element complies with the appropriate adopted policies of Orange County for Joint Capital Facilities Development, the Orange County Debt Management Policy, and the Orange County Capital Funding Policy as well as all other relevant adopted policies of the County • Ensure that all elements are accessible to and serve residents throughout Orange County • Complete this work by October 2015 The Board of Commissioners will consider creation of the Capital Needs Advisory Task Force in February /March 2015. The Board will consider appointment of Task Force members at regular Board meetings in April and possibly May 2015. 12 Therefore, please submit applications for the Task Force by 12:00 noon, March 27, 2015. The Task Force will hold its initial meeting in May and provide adequate time for the meetings that may be necessary for the Task Force to complete its work by October 2015. You may complete or download an application online at the Orange County web site at www.oran ego nom. You can also contact the office of the Clerk to the Board at (919) 245 -2125 or 245 -2130 or by email tfreeman cr,oranyecounto nc.yov for more information or to request an application.