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HomeMy WebLinkAboutMinutes 06-09-2015 APPROVED 9/1/2015 MINUTES ORANGE COUNTY BOARD OF COMMISSIONERS Budget Work Session June 9, 2015 7:00 p.m. The Orange County Board of Commissioners met for a work session on Thursday, June 9, 2015 at 7:00 p.m. at the Whitted Building in Hillsborough, N.C. Chair McKee called the meeting to order at 7:03 p.m. He noted the following items at the Commissioners' places: - North Carolina Forest Service 2014 Summary of Accomplishments in Orange County - White sheet— County Debt Service and Debt Capacity (General Fund only) Revised FY2015- 20 - PowerPoint slides for item 4 — Pay and Benefits for Employees and Retirees Commissioner Jacobs suggested a moment of silence for the former Mayor of Chapel Hill Jonathan Howes, who recently passed away. 1. FY2015-16 Fire District Tax Rates, Pg. 286 Paul Laughton, Orange County Finance Administrative Services, said each year during the budget process fire districts that have a requested tax increase are brought to this meeting. He said the Fire Districts requesting tax rate increases in FY 2015-16 are as follows: • Damascus Fire District and Southern Triangle Fire Service District (Pages 287 and 290) Increase of 1.50 cents, going from 8.80 cents to 10.30 cents per $100 assessed valuation. The North Chatham Fire Department will continue to contract with Orange County to provide fire services to the residents in both the Damascus Fire Protection District and the Southern Triangle Fire Service District within Orange County. The increase will be used to help cover increased personnel and operating costs associated with the opening of 2 new stations in FY 2014-15, replacement of self-contained breathing apparatus, and to help cover costs associated with fire engine replacements. Commissioner Rich asked if there is a specific process for notifying residents when Fire Departments raise taxes. Paul Laughton said residents are notified as part of the County tax bill. Commissioner Rich said this practice informs residents after the change has been made and said she is concerned about the lack of communication. Commissioner Jacobs said this issue has come up before without any resolution. Commissioner Dorosin suggested when there are requests for increases in particular fire districts perhaps the Manager could include them as a part of her recommended budget message. Bonnie Hammersley said she would follow up. • Orange Rural Fire District (Page 290) Increase of 1.00 cents, going from 7.36 cents to 8.36 cents per $100 assessed valuation. The increase is to cover the replacement of air packs that no longer meet the current NFPA standards, to help cover funding to equip a replacement engine, and due to a decline in volunteers; the department has added three new positions and is planning to add three additional positions in the coming year. 2. Outside Agencies: Recommended Allocations FY2015-16, Pg. 354 Allison Chambers, Budget and Management Coordinator, reviewed the following information: In January 2015, the County received 57 applications with requests totaling $1,591,515, an increase of$488,915 above the current year's appropriation. Finance and Administrative Services Staff distributed applications to staff and advisory board groups for review (Attachment A). County Department Directors and their advisory boards received applications related to their functional areas. Representatives from Cardinal Innovations Healthcare Solutions-OPC reviewed mental health agencies; the Employee Committee evaluated community-based service agencies that did not align with a particular County department (e.g. Communities in Schools). Recommendations made by the advisory groups were for consultative purposes only. The County Manager reviewed agency applications and advisory board feedback, then consulted with County Management Staff and proposed appropriations. All parties used the Board of County Commissioner's (BOCC) guiding principles, adopted in December 2010, to evaluate programs and propose funding recommendations (Attachment B). For FY 2015-16, the County Manager recommended funding for 43 agencies totaling $1,054,400, a net decrease of$48,200 above the current year's appropriation. The FY 2015- 16 Manager's Recommended Operating Budget contains a complete list of funding requests, recommendations and agency narratives within the Outside Agency section (page 354). Recommendations: 1) One (1) agency has been recommended for FY 2015-16 funding increase, totaling $82,000: Community Home Trust is requesting an increase in operating funding to enable the organization to successfully manage 230 permanently affordable homes in their inventory. Increase amount calculated using formula adopted as part of an interlocal agreement with the municipalities approved April 21, 2015. 2) One (1) new agency received funding recommendations, totaling $2,000 for FY 2015-16: Fairview Community Watch will use funds to hire monitors that would support park activities for the Fairview Community Park during the period from June — September 2015. 3) One (1) agency is recommended for a $35,200 funding reduction for FY2015-16: Communities in Schools will receive this reduction funds to reflect the 122 Orange County Schools afterschool students that this agency will not be serving in FY2015-16. In addition, the Boys and Girls Club of Eastern Piedmont did not submit a FY 2015-16 funding request. The agency received a $2,000 appropriation in the current fiscal year. The award received by Pretrial Services in FY 2014-15 was reallocated to the Sheriff Department Budget for FY 2015-16. Commissioner Dorosin asked if there was a particular impetus for the reduction in the overall outside agency funding. Bonnie Hammersley said yes and it was in order to maintain the funding the same as it was in 2014-15. Commissioner Jacobs asked if the details regarding applications came to the Board on CD. Allison Chambers said no, the information was received via a link on the website, as opposed to CDs that the Commissioners' received in the past. 3. Discussion of County Department's FY2015-16 Budget Requests Commissioner Dorosin said it seemed like many of the questions asked are not related to the budget. He said he thinks these questions are valuable but not suited to the time constraints within the budget process. He said the departmental budgets are rarely tweaked. He said there should be opportunity to have more in-depth discussions in the fall or winter with department heads. Chair McKee agreed with Commissioner Dorosin and looked forward to addressing this next year. Bonnie Hammersley said in the fall she will bring forth a process for department heads and the Board of Commissioners to be able to work together on the budget process and other issues in advance. Commissioner Rich said she agreed with Commissioner Dorosin's suggestion. She said it is not just the need to discuss budget issues in depth but rather to hear general updates about all departments, their goals, their needs, etc. Commissioner Pelissier said she would also like to be able to have in depth discussions about performance indicators and perhaps even changing these indicators in some departments. Commissioner Dorosin suggested having a department a week come and speak to the Board. • Register of Deeds, Pg. 384 Darrell Butts, Budget Management Analyst, reviewed the following information: Budget Highlights • The FY15-16 Manager Recommended Budget includes funding for an additional 1.0 FTE Deputy Register of Deeds II; the total County cost of this position is $47,024. This position is needed to main the current work rate within the office. Additionally, due to the high volume of e-recordings, staff that could previously rotate duties in order to assist customers are unable to continue doing so. • The FY15-16 Manager Recommended Budget includes a significant decrease in the Daily Recordings account. This is due to the Register of Deeds office transitioning to an e-recording system. They will discontinue printing and storing new recordings of permanent Land related record books. • The FY15-16 Manager Recommended Budget includes a decrease in revenues for the Register of Deeds fees account; this decrease is due to a decrease in the number of recordings during the current year. Mark Chilton, Register of Deeds, said the department is proposing the cessation of printing paper deed books and going entirely to electronic recording. Commissioner Rich asked if security can be ensured with more records being put on electronic filing. Jim Northup, Orange County Chief Information Officer, said currently the Register of Deeds' records are accessed through an outside vendor who is relied on for security. Mark Chilton said the backup system would only allow one week's worth of recording to ever be lost at one time. Commissioner Rich asked if any additional funding is being spent on security. Mark Chilton said no. Commissioner Price asked if there is a back-up with the State server. Mark Chilton said copies of their records are provided to the State but there is a much longer lag time. Jim Northup said there is a multi-layer approach to securing all the electronic documents. • County Attorney, Pg. 112 Christal Sandifer, Budget Management Analyst, reviewed the following information: Budget Highlights • The FY15-16 Manager's Recommended Budget includes: • Estimated County-wide savings of$35,000 annually, due to the implementation of the electronic signature and routing program for county contracts. • Operations Decrease: ($11,003) across several accounts to better reflect expected need Commissioner Jacobs asked if there is work still to be done on the living wage issue. John Roberts, County Attorney, said it was given to the former Assistant County Manager Cheryl Young for some further research and he believed it should be ready early in the fall. • Tax Administration, Pg. 420 Darrell Butts reviewed the following information: • The FY15-16 Manager Recommended Budget includes 2.0 FTE (1.0 FTE Revenue Technician I and 1.0 FTE Revenue Technician 11) in the Collector/Revenue division. The total cost for these positions is $68,185, including $14,006 in operating expenses and onetime start-up costs. These positions will be responsible for handling all EMS billing, as the Tax Administration department is bringing that function back "in-house" (the service is currently performed by an outside contractor). The positions are recommended to start on December 1, 2015; this date will give the Tax Administration office some time to train the new employees before taking over EMS billing (which will begin on January 1, 2016). • The FY15-16 Manager Recommended Budget includes an increase in the Collection Charges and Collections Fees revenue accounts. These revenue accounts were greatly affected by the changes in RMV billing due to HB1779 during the FY14-15 budget cycle, but it appears that the decrease in revenues was not as drastic as originally thought. Dwane Brinson, Tax Administrator, said under the Personnel line item he had requested one extra position that was not funded. He said this proposed position would have handled the tax assistance programs. Bonnie Hammersley said there was no funding source for this position and that it was a communications position not operational. Commissioner Rich asked if there is a total number of tax assistant programs. Dwane Brinson said there are close to 90 different ways that a tax bill can be reduced. He said these programs are located in the State statutes. Commissioner Pelissier asked if there are pros and cons to bringing the EMS billing back in house. Dwane Brinson said about 5 years ago the Board of County Commissioners wanted to outsource this for about a year but it has gone on a long time. He said the main issue is customer service with the outside vendors. He said he felt a better job could be done in house. Commissioner Dorosin asked if the Board approved new employees in the tax department. Dwane Brinson said those were not new employees but rather deputy tax collectors who are re-appointed every two years. • Economic Development and the Orange County Arts Commission, Pg. 137 (including Non-Departmental Items, Pg. 333) Christal Sandifer reviewed the following information: She said there are no significant budget changes in FY15-16. Article 46 proceeds, page 66 • The Article 46 One-Quarter Cent (1/4 cent) County Sales and Use Tax was approved by Orange County voters in the November 2011 election, and became effective April 1, 2012. A Special Revenue Fund has been established to receive and account for the One-Quarter Cent (1/4 cent) Sales and Use Tax proceeds. The sales and use tax proceeds are divided 50% to the County's two school systems and 50% to Economic Development initiatives. The funds will remain separate from the County's General Fund to allow for more isolated and accurate tracking of revenues and expenditures. The Board of County Commissioners approved a ten-year commitment to allocate the proceeds as follows: • 50% of the funding will be allocated in an equitable manner between the County's two school systems, based on the Average Daily Membership (ADM) of each school system, for the dedicated purpose of funding capital projects, including but not limited to, facility improvements at older schools and the procurement of technology. • 50% of the funding will be allocated to Economic Development initiatives. The tables below reflect proposed uses of the anticipated proceeds of$2,814,576 by the two school systems and Economic Development in FY15-16: School Systems Proposed Use for FY 2015-16 Technology— Student Access Computing Devices (Chapel Hill-Carrboro City Schools) $ 432,740 Facility Improvements at Older Schools (Chapel Hill- Carrboro City Schools) $ 432,740 Technology— 1:1 Laptops Initiative and Upgrades (District-Wide — Orange County Schools) $ 541,808 TOTAL $1,407,288 Economic Development Proposed Use for FY2015-16 Debt Service on Infrastructure $ 857,288 Utility Service Agreement with Mebane $ 50,000 Collaborative Outreach $ 20,000 Small Business Loan Pool $ 200,000 Collateral Materials $ 20,000 Innovation Center $ 100,000 Agricultural Economic Development $ 60,000 Business Investment Grants $ 100,000 TOTAL $1,407,288 The FY 2015-20 Capital Investment Plan lays out more specifically the projects and initiatives that are planned with the proceeds over the next five (5) years. • Planning and Inspections, OPT and Efland Sewer, Pg. 366 (including Fee Schedule change requests, Pg. 484 and Non-Departmental Items, Pg. 333) Darrell Butts reviewed the following information: Budget Highlights • The FY15-16 Manager Recommended Budget includes an additional $24,024 in revenues for Transportation Charges. These funds are for staff support to the DCHC MPO. • Staffing shortages have been addressed but training of new personnel is on-going and will impact service provision. • Imposition of additional State regulations, most notably stormwater, will continue to complicate the permit review and action process. • There are several major regulatory updates that will have to be accomplished during the 2015-16 budget year requiring additional staff time/commitment beyond daily operational needs. Commissioner Jacobs asked if there is a way to maintain water quality and stream integrity in the buffers. Craig Benedict, Orange County Planning Director, said there is a planned procedure to present to the State asking for standards in excess of the State's minimum requirements. Commissioner Jacobs asked if there are specific goals for this fiscal year regarding the Alamance County Line issue. Craig Benedict said there is still discussion that needs to take place as residents in a couple of areas feel that this issue has not reached a resolution. Chair McKee said when he met with Alamance officials a few months ago there seemed to be support for ongoing discussion but nothing has materialized since. Commissioner Jacobs requested an update from the Manager. Commissioner Price asked if there is a plan for bus stops and bus shelters for new routes. Craig Benedict said these services will be phased in this coming year as well as a plan to advertise Orange Public Transportation's (OPT) new role in regional and local transit. Commissioner Price asked if all stops will be ADA approved. Craig Benedict said yes. Chair McKee asked if the expenses were accounted for in 2014-15. Craig Benedict said the expenses have been accommodated, primarily with procedural matters. He said any outstanding issues are being addressed. • Aging, Pg. 46 Christal Sandifer reviewed the following information: The FY15-16 Manager's Recommended Budget includes: • Implementation of new initiatives throughout Department budget made possible by the continued financial support of the Master Aging Plan by Carol Woods Retirement Community ($175,000) • Operations Increase: ($25,568) increase offsets an expenditure realignment in FY14-15 in the • Aging Transitions Division, for the Caregiver Peer Support Grant • Social Services, Pg. 392 (including Non-Departmental items, Pg. 348) Christal Sandifer reviewed the following information: The FY15-16 Manager's Recommended Budget includes: • Personnel: Several permanent staff have been realigned from other department divisions. There is no overall increase in cost associated with the realignment. • Contract Services: Increase to improve current document management system, State required reporting software, and to upgrade the LexisNexis contract ($38,530). • Building Rent and Utilities: Operations increase for Hillsborough Commons expansion ($186,203). • Contracts for Drug Treatment Court and Pretrial Services are no longer included in this section ($182,000). These services are now coordinated through the Sherriff's Office. • Revenue Decrease: $31,133 decrease in funding from Miles Second Family Foundation which aligns with a decrease in temporary staff supported by the Miles Second Family Foundation. • Commissioner Burroughs said the Board received an email about some outside agencies that had been subjected to funding cuts by the United Way. Nancy Coston, Director, Department of Social Services (DSS), said the requests were reviewed by the DSS Board and the Juvenile Crime Prevention Council (JCPC) Board but at the time the agencies were reviewed, it was not known that the United Way funding had been cut. Commissioner Dorosin asked if revised budgets are reviewed. Paul Laughton said it is wise to compare original budget to original budget as it gives a clearer picture of more certain funding. Commissioner Dorosin said budgets are normally made based on a revised budget not the original budget. He said the reasons for budgets fluctuating during a year are relevant and should be reviewed and considered when creating the next year's budget. Paul Laughton said the revised budget is from April and there have been two amendments since then with others to still come. He said he understands Commissioner Dorosin's point. Commissioner Dorosin said perhaps using the DSS budget may not be the best example. Commissioner Jacobs asked if other entities were affected by the United Way cuts and if so, could the Manager provide a list. Commissioner Pelissier asked if it would be possible to also find out what the actually funding is for United Way. • Health Department, Pg. 293 (including fee schedule change requests, Pg. 486 and Non-Departmental Items, Pg.337) Darrell Butts said there are two groups of funds within the Health Department. He said the first is the General Fund, which has a total County increase of approximately $350,000. He said the second group is the Grant Fund, which encompasses single year annual grants as well as multi-year grants. He said this group has an increase of$63,000 which has 100 percent matched by revenue. He said the single largest driver for this budget is the creation of the Family Success Alliance (FSA) line item, at $250,000 budgeted within the Department. He said there is a $30,000 increase in Contract Services due to a match for alcohol prevention. He said there are additional funds of about $40,000 for Ebola preparedness. He said there is also a $23,000 increase in pharmacy supplies due to current year use as well as expected future use. Colleen Bridger, Health Department Director, said the requested information regarding United Way funding may not be available by Thursday. She said the United Way allocated a total amount of funding to two collaboratives in Orange County. She said the amount was less than was requested and the two collaboratives are to spend the next two months determining how to allocate the funds to agencies within the collaborative. Commissioner Jacobs asked if there are any septic systems within the Septic System Inspection Program, which is receiving 100% ratings. Colleen Bridger said the Orange County Board of Health (BOH) has separate rules from the State. She said additional inspections are conducted by the County. She said in the past 3 years, any septic system that is covered by the BOH rule has been at 100%. She said a court case trimmed about 100 systems from the list of those inspected by the BOH. Commissioner Jacobs said when he first joined the BOCC, instigating a system of inspection of all septic systems was a goal. He said this goal was considered too intrusive and it was amended to inspections being done in water quality critical areas. He said at the current time, such priorities seem to have disappeared. Colleen Bridger said to the extent that the law allows it to be a priority, Orange County considers it so. She said Orange County has some of the most comprehensive regulations for septic systems on private properties in the State. She said the court case prohibits the County from inspecting septic systems that the State permits. Commissioner Jacobs asked if single family systems are permitted by the County. Colleen Bridger said yes. She said that regular septic systems are not inspected regularly rather only those systems that are unique. Commissioner Jacobs asked if Orange County is doing anything special with prostate cancer. Colleen Bridger said no. She said more and more research is showing that the PSA test is less predictive than first thought. She said, as a result, knowing the best way to invest in screening for prostate cancer has been difficult. Commissioner Price asked if there are still no health services for males over 18 years of age. Colleen said pediatric primary services are provided up to age 18 and after that the department tests for sexually transmitted and communicable diseases, such as tuberculosis. Commissioner Price asked what services are available if a person does have tuberculosis (TB). Colleen Bridger said anyone with TB, or any other communicable disease, would automatically become a patient of the health department regardless of his primary caregiver because it is a communicable disease. Bonnie Hammersley said she funded the dental care positions due to the presence of funding sources. Commissioner Price asked if dental care can be funded then why not primary care for men over the age of 18. Bonnie Hammersley said her priorities were based on the presence of funding sources. She said the dental clinic had an 85% funding source. • Housing, Human Rights and Community Development, Pg. 305 (including Non- Departmental items, Pg. 337) Christal Sandifer reviewed the following information: The FY15-16 Manager's Recommended Budget includes: • Revenue Increase: Federal funding is budgeted for a 6.5% increase ($283,315). This remains below levels of funding before Federal sequestration. • New Position Recommended: Management Assistant position (1.0) FTE, effective July 1, 2015 ($72,906). The new position will assist with development of an affordable housing plan and collaborate with the Towns to address affordable housing needs. Additionally, the position will provide assistance in meeting federal compliance and reporting requirements for annual funding, for the Section 8 Housing Choice Voucher program and the HOME program. Commissioner Dorosin asked if there are specific duties for the newly proposed position. Audrey Spencer-Horsley, Housing, Human Rights and Community Development Director, said the position will initially split time reviewing existing programs' policies and procedures as well as considering creative and exhaustive ideas for future programs to address affordable housing in Orange County. • Information Technologies, Pg. 317 Darrell Butts reviewed the following information: The FY15-16 Manager Recommended Budget includes increases in software licensing and maintenance fees due to ongoing software improvements and purchases. The increased number of supported devices and various hardware upgrades have impacted this line item. • The FY15-16 Manager Recommended Budget includes funds within the contract services account for Rural Broadband planning. Additionally, funds are included for expansion of network services at 3 new locations: • Cedar Grove Community Center (county network expansion and wireless Internet) • Fairview Park (wireless Internet) • Rogers Road Community Center (wireless Internet). Commissioner Rich asked if the Board will discuss rural broadband in a future work session. Bonnie Hammersley said yes. Commissioner Rich asked if there is someone specific conducting the study on rural broadband. Jim Northup, Orange County Chief Information Officer, said his department is working with residents and the State to see where the internet is needed. Chair McKee asked if there is a known range of the wireless internet at the County facilities. Jim Northup said in a County building the range would typically go to the parking lot, about a 250 foot radius around the building. He said this range can be increased in the future. • DEAPR— Department of Environment, Agriculture, Parks & Recreation, Pg. 122 (including Fee Schedule change requests, Pg. 470 and Non-Departmental items, Pg. 333) Christal Sandifer reviewed the following information: Recreation Division: The FY15-16 Manager's Recommended Budget includes: • New Position Recommended: Community Centers Coordinator (1.0) FTE, effective October 1, 2015 ($42,514). The new position will support the additional programming at the Efland-Cheeks Community Center and the opening of the new Cedar Grove community center. The position will ensure accessibility and availability of community centers and programming. Additionally, the position will enable an equitable level of service at the two community centers and allow for interaction and sharing of resources. • Personnel Increase: Seasonal Staff ($42,654) reflects an increase to comply with approved Living Wage and an increase in hours to support increasing demand for recreational activities, concessions, and facility rentals as well as the opening of the Cedar Grove Community Center • Operations Increase: ($21,147) for additional supplies and services to support increasing demand for recreational activities and concessions as well as the opening of the Cedar Grove Community Center • Revenue Increase: ($53,086) anticipated additional fee revenue associated with: athletics, recreation programs, facility rentals, and athletic rentals Parks Division: The FY15-16 Manager's Recommended Budget includes: • The Parks Division has been able to address the opening of new parks and managed lands, and new landscape and grounds needs, in recent years with minimal staff resource additions. For FY15-16 additional staff resources have been recommended to address increased responsibilities, increases in facility usage and rentals, and the need for a full-time staff person at Blackwood Farm Park (which has resulted in a net loss of 0.25 FTE for other parks staffing). DEAPR is asking to take the current 30 hours per week position (originally approved for Blackwood Farm Park, now within the Parks "Mobile Crew") to 40 hours, and for increased seasonal staff funding. These additional resources will be needed to maintain the current and expected level of service to the public and park patrons. • FY15-16 will see the first full year of operation for Blackwood Farm Park, and may see portions of the Hollow Rock Park and Natural Area opened. There are also plans to make improvements to River Park and repairs and renovations to select other facilities as needed and prioritized. • Position Extension Recommended: Parks Conservation Tech I position is currently a 0.75 FTE, recommending to extend the position to 1.0 FTE ($10,680) to support Blackwood Farm Park opening • Personnel Increase: ($11,307) to comply with approved Living Wage for seasonal staff • Operations Increase: ($40,647) for additional supplies and services to support increasing demand for activities and opening of the Blackwood Farm Park • Revenue Increase: ($11,000) The annual Trail Head Run resulted in a donation in FY14-15. A donation in FY15-16 is anticipated. Soil and Water Conservation Division: • The FY15-16 Manager's Recommended Budget includes personnel increase, as four positions were reclassified in FY14-15 Historic Preservation Commission's (HPC) Historic Resources Inventory (Multi-Year Project): The FY15-16 Manager's Recommended Budget includes: • 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 FY15-16 budget totals $20,000; the County will contribute $15,000 and the CLG will contribute $5,000. The FY14-15 budget totaled $25,000; the County contributed $10,000 and the CLG grant contributed $15,000. The County's contribution is budgeted in the Transfers to Other Funds section, of the Recommended Budget. Commissioner Jacobs asked if there are property owners wanting to sell conservation easements to Orange County. David Stancil, DEAPR Director, said there are 44 property owners on the "interest" list and 12 who want to actively pursue an easement in the near future. Commissioner Jacobs asked if there is any update regarding Orange Well Net. David Stancil said Well Net is the County's well observation program and he said the County is monitoring about 12 wells. He said information is typically presented to the Board in October. He said it may be 15 years before the data received from this program is of use. He said updates can be provided to the Board more frequently. Commissioner Jacobs said why does the County have this position if the data cannot be applied for years to come. Commissioner Price expressed concern regarding the increase in usage fees for Community Centers. She said many residents tell her that the current fees are prohibitive for their budgets so higher fees would be even more unattainable. David Stancil said this fee change is a change in language only and the rates were already in place. He said internal analysis has been done with other governmental entities and Orange County costs are right in line. He said the facilities can be greatly used without being reserved. He said when one wants exclusive rights to use a facility then the applicable fee would apply. Commissioner Dorosin suggested that the Board have further discussion regarding the Community Center Coordinator proposed position. He said the Rogers Road Community Center (RRCC) is staffing their own center and running programs successfully. He said the RRCC is providing services that Orange County would otherwise provide. Commissioner Jacobs said that the RRCC is an anomalous situation and is an asymmetrical comparison to the other community centers. He said the Rogers Road residents wanted to run the Center and agreed to pay for it. He said if Orange County was going to pay for it then Orange County would run it as it does their other centers. He is not sure how both can be done simultaneously. Commissioner Dorosin said the current model needs to be tweaked. Commissioner Rich said an update review was not built into the interlocal agreement with the Rogers Road Community Center but a discussion is needed to gather feedback on how the Center is doing. Bonnie Hammersley added that the recommended budget does include the Community Center Coordinator, who will be a liaison between all the Community Centers and the Board, providing updates and being a point of contact. • Human Resources, Pg. 312 (including Non-Departmental Items, Pg. 328) Christal Sandifer reviewed the following information: The FY15-16 Manager's Recommended Budget includes: • New Position Recommended: Assistant Human Resources Director (1.0) FTE, effective July 1, 2015 ($84,832). The new position will develop a compensation system beginning in FY15-16 that is sustainable, affordable and equitable and focuses on identified and prioritized needs. • Operations Increase: ($25,000) recommended for analytic tools for the appropriate modeling of compensation review associated with the recommended position above. Commissioner Dorosin asked if there are specific people who must submit to drug screens. Christal Sandifer said only those in safety sensitive positions complete screenings. • Board of County Commissioners, Pg. 78 Darrell Butts reviewed the following information: The FY15-16 Manager Recommended Budget includes • An increase of$2,000 in Temporary Personnel. This increase will allow the department to maintain the same number of hours previously budgeted while accounting for the increase in the living wage that occurred in FY14- 15. • Includes funds for the expansion of the Granicus Boards and Commissions database. These funds are not budgeted within the Board of County Commissioner's budget, but are included in IT's budget. • Finance &Administrative Services, Pg. 281 Christal Sandifer reviewed the following information: No significant budget changes in FY15-16 except under Risk Management, Operations Increase: $58,000 for Liability Broker fee. In FY14-15, Willis Group Holdings PLC, was selected to assist the County in conducting an in depth review of our risk transfer, loss mitigation and loss prevention strategies. Their services include assessing the adequacy of insurance coverage currently in place, representing the County in the insurance marketplace, assisting with evaluation of loss retention structures, claim management as well as development and implementation of loss prevention goals and strategies. • County Manager's Office, Pg. 115 (Including Non-Department Item, Pg. 328) Bonnie Hammersley reviewed the following information: The FY15-16 Manager's Recommended Budget includes: • New Position Recommended: Administrative Assistant position (1.0) FTE, effective July 1, 2015 ($48,443). The new position will provide clerical support to the office as well as receive calls from residents, to redirect calls as needed • Created a Community Relations Department to include the Visitor's Bureau and the Public Affairs Officer to implement the Strategic Communications Plan to improve internal and external communications with community partners and Orange County residents. • County Manager's Office: Orange County Partnership to End Homelessness Program Bonnie Hammersley reviewed the following information: • Increase Expenditure: The FY15-16 Manager's Recommended Budget includes an expenditure increase ($10,000) for Community Empowerment Fund to assist with building rental in Chapel Hill. Commissioner Rich asked if the living wage is remaining at $12.76. Bonnie Hammersley said her recommended budget maintained this wage. 4. Employee Pay & Benefits, Pg. 428 Brenda Bartholomew, Human Resources Director, reviewed the following PowerPoint presentation: Pay and Benefits for Employees and Retirees Work Session Purpose Review of County Manager's Recommendations related to pay and benefits for employees and retirees for FY 2015-16 Past Actions: FY 2014-15 Pay and Benefits Plan • Wage increase of 1.5% for permanent employees effective July 1, 2014 for employee hired on or before June 30, 2013, applied wage increase to the 2013/14 Salary Plan • Maintained the Employee Performance Award of$500 or $1,000 • Funded for a health insurance increase of 14.35% (County did not pass the increase to employees) • Increased the living wage from $10.97 per hour to $12.76 per hour, effective July 1, 2014 • Continued the six-month hiring delay and the voluntary furlough program • Increased the 401(k) County matching contribution to $63.00 per pay period (previously $50.00), for a maximum annual County contribution of$1,512 (previously $1,200 annually) for all non-sworn law enforcement employees and continue the $27.50 contribution • Continued the mandated Law Enforcement Officer 401(k) contribution of 5% of salary Key Pay and Benefits Plan — Manager Recommendations • A wage increase of 2 percent for all permanent employees hired on or before June 30, 2015, effective July 1, 2015. • No wage increase to the 2014 Salary Schedule. • Continue the Employee Performance Award in the amount of$500 (proficient performance) or $1,000 (exceptional performance), effective with WPPR review dates from July 1, 2015 to June 30, 2016. • Continue funding the Traditional and High Deductible Health Plans for employees and pre-65 retirees at the FY2014/15 appropriation and fund an additional $100,000 to mitigate the cost of deductibles • Continue funding the Dental Program with an increase of$40,000 over FY2014-15 appropriations. • Funding an increase of$221,000 for retiree healthcare benefits. • Continue the $27.50 per pay period County contribution to non-law enforcement employees' supplemental retirement accounts and the County matching employees' contributions up to $63.00 semi-monthly (for a maximum annual County contribution of $1,512) for all general (non-sworn law enforcement officer) employees. • Continue the mandated Law Enforcement Officer contribution of 5 percent of salary; and continue the County's contribution to the Local Governmental Employees' Retirement System (LGERS) for all permanent employees. • Eliminate the six-month hiring delay • Salary Savings Appropriation- $750,000 • Continue the voluntary furlough program (anticipated savings of$18,000 for FY2015- 16) • Continue the living wage rate at $12.76 per hour. 0 2015 Federal Poverty Guideline - $11.66 per hour for a family of four o Currently 9.43% above the 2015 Federal Poverty Guideline o Recommend BOCC adopting a standard of annually adjusting the living wage by a defined percentage above the Federal Guideline for a family of four • Other jurisdictions apply 7.5% above Federal Guideline • $12.53 in 2015 • City of Durham, Durham County, Town of Chapel Hill, Town of Carrboro Position Classification Recommendation Manager's Initiative Add capacity to develop and implement a sustainable classification and compensation plan and workforce development plan. ■ Full Time Assistant HR Director ■ $25,000 for analytic tools ■ The goal for FY2015-16 • to evaluate compensation policies/programs including pay structures, performance based pay, internal and external equity and benefit programs • to develop a compensation system that is sustainable, affordable and equitable and focuses on identified and prioritized needs for review and adoption for implementation in FY2016-17 • to develop, implement and evaluate recruitment, hiring, orientation, succession planning, retention and organizational exit programs necessary to ensure a workforce's ability to achieve Orange County's organizational goals and objectives. Manager recommendation Reduction in Force ■ The Manager recommends that a reduction in force is necessary resulting in the deletion of a position and recommends the Board grant the Manager the authority to develop a reduction plan as per Section 28-91 of the Code of County Ordinances. o The County Manager has reorganized the manager's office to include the deletion of Assistant County Manager (ACM) positions and/or functions. Bonnie Hammersley said the current work plan performance review system will be evaluated and amended as necessary to make it more of a merit based system. Commissioner Rich said she is not as comfortable with merit based increases as opposed to a simple wage increase. She said one can build on top of wage increases but not merit increases. She said she looks forward to discussing this further at a later date. Commissioner Dorosin asked if the position within the Manager's office that has been removed is vacant or if the employee was laid off. Bonnie Hammersley said the ACM position will become vacant on June 30, and the employee will be moved to another position July 1. She said she has assigned this position to the Solid Waste department and the goal is not to have an interruption in employment. 5. Capital Investment Plan (CIP), Pg. 87 Paul Laughton said there were several revisions to the abstract package and all changes are highlighted in yellow. Paul Laughton said there is also a revision to the Debt Capacity and Debt Service schedule, provided at the Commissioners' places. He said he would review the materials and reminded the Board that at the next meeting on June 11, the Board would be asked to approve the CIP and its Year 1 projects for 2015-16. Paul Laughton reviewed the changes in the CIP: County Projects • Southern Orange Campus— Future Planning (CIP page 21) - reflects the removal of $400,000 from FY 2014-15 funding, and provides $200,000 in Year 2 (FY 2016-17) for design work associated with the planned Year 2 Southern Human Services Center expansion project. Also removes $3,600,000 in Year 1 (FY 2015-16), and provides $1,800,000 in Year 2 (FY 2016-17) for infrastructure work associated with the planned Year 2 Southern Human Services Center expansion project. It further provides $200,000 in Years 6-10 for future design work, as well as $1,800,000 in Years 6-10 for future infrastructure work. • Affordable Housing Land Banking (New Project-39a) —this project provides $1,000,000 in Year 1 (FY 2015-16) for a land banking program. The purpose of the program is to acquire aggregate parcels and/or improve existing county-owned properties for future residential development to address displaced manufactured homes, as well as affordable housing alternatives. Commissioner Jacobs said the County needs to be aggressive with surveying the manufactured homes in the area. He said this community needs to be included in any forward discussions. Chair McKee said if the funds are not spent will they revert back to the general fund. Paul Laughton said no, the funds would stay with the project throughout its lifetime. Commissioner Dorosin asked if land became available in September would the funds be available to use. Paul Laughton said yes, the funds would be available July 1. Commissioner Dorosin said guidelines will be needed quickly to move this project forward. Commissioner Jacobs said it is important to aggressively survey the current manufactured housing community within Orange County, especially in the urban areas. He said he anticipates a lot of involvement from the manufactured housing community. He said it will be important to involve them every step of the way. Commissioner Price asked if the debt service on the $1 million would ever be recouped by the County perhaps through the sale of the land purchased for the land bank. Paul Laughton said the direction of the Board will determine how this project will take shape. Chair McKee said all the details will need to be ironed out. Commissioner Burroughs expressed enthusiasm for the project, and supported it taking shape quickly. She added that all plans should be tied closely to those of the Housing Director and her department. Bonnie Hammersley said, in collaboration with the Housing Director, the goal was to make the language for this project as flexible as possible. She said the Housing Director is working on draft criteria for this topic. Commissioner Rich said this is a land banking conversation, not just simply $1 million going into affordable housing. She said it is important to make this distinction clear with affordable housing advocates. She said she understands the goal of this program is to provide a safety net to those in the manufactured home community. Commissioner Jacobs confirmed that this was his intention when he proposed the land banking idea. • Information Technology(CIP page 28) — includes $800,000 in FY 2014-15 for the Central Permitting System approved by the Board of Commissioners as part of the current 2015 Financing package (scheduled to close on June 25, 2015). Also, includes funds of $378,100 in Year 1 (FY 2015-16) for three IT Governance Council initiatives. • Sheriff Equipment (New Project-39b) — includes $517,798 in FY 2014-15 for replacement of In-Car cameras approved by the Board of Commissioners as part of the current 2015 Financing package (scheduled to close on June 25, 2015). • Board of Elections Equipment (New Project-39c) — includes $679,870 in FY 2014-15 for the replacement of voting machines and the purchase of electronic poll books approved by the Board of Commissioners as part of the current 2015 Financing package (scheduled to close on June 25, 2015). Also, includes funds of$169,575 in Year 1 (FY 2015-16) for the replacement of outdated ADA voting equipment, as part of an IT Governance Council initiative. • Life Safety—ADA (CIP page 35) — includes moving $60,000 from Year 2 to Year 1 (FY 2015-16) for elevator improvements at the Historic Courthouse. • Conservation Easements (CIP page 48) — includes additional County funds of $125,000 and matching State/Federal grant funds and landowner donations of$125,000 beginning in Year 1 (FY 2015-16) and continuing each year throughout the CIP. Due to the County's increase in funds, staff recommends debt financing instead of Pay-As-You-Go funding. • CIP Plan Summary (CIP pages 6-7), County Capital Projects Summary (CIP pages 16- 17), and County Capital Operating Impact Summary (CIP pages 18-19) —to reflect the revised County Capital Projects listed above. Note: A revised County Debt Service and Debt Capacity— General Fund Only (CIP pages 133- 134) affected by these revised projects was provided at the June 9 work session, along with information related to Debt Capacity and Debt Affordability. Proprietary Project • Solid Waste - Sanitation (CIP page 81) — removes $296,035 from Year 1 (FY 2015-16) for the replacement of a front end loader. Solid Waste Department was able to purchase this in the current fiscal year with unanticipated funds within the department's budget. • Solid Waste Capital Projects Summary (CIP page 79) —to reflect the revised Sanitation Capital Project listed above. Paul Laughton said at the Commissioners' places are the revised County Debt Service and Debt Capacity, with changes highlighted in yellow. He said on the second page of the handout, in bold print, it is shown that the County does stay under the 15% Debt Service policy. Paul Laughton said on the second page of his hand out, one can see a bump in 2017- 18 and 2018-19. He said those are the years that revenue sources must be closely reviewed. He said the County would still need to look at additional revenue sources and tax revenue implications to pay for this additional debt. He said the County may have to look at raising taxes to cover the debt in these latter years. He said though the capacity looks okay now the projected debt service payments going forward need to be studied closely. Commissioner Dorosin asked if these numbers include a potential bond. Paul Laughton said no. Commissioner Dorosin said as a bond could change the debt service picture in a negative way, he would like to see this information. Commissioner Jacobs said as the Board pursues the discussion of the bond package, it would be good to have a clear picture of the debt capacity so the Board can make informed decisions. Chair McKee asked for clarification regarding the projected annual debt. He asked if this pertained to affordability, and not capacity. Paul Laughton said yes. Chair McKee asked if the bond goes on the ballot and passes in 2016 when would the debt payments begin. Paul Laughton said the payments would begin one year after the first debt is issued. Adjournment A motion was made by Commissioner Rich, seconded by Commissioner Dorosin to adjourn the meeting at 10:12 p.m. VOTE: UNANIMOUS Earl McKee, Chair Donna Baker, Clerk to the Board