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Home My WebLink AboutAgenda - 03-13-2007-5lORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: March 13, 2007 Action Agenda Item No. 5- SUBJECT: Regional Value-Added Processing Center- Feasibility Study Appropriation and Contract Approval DEPARTMENT: Economic Development PUBLIC HEARING: (Y/N) No ATTACHMENT(S): Contract INFORMATION CONTACT: Dianne Reid 245-2326 Noah Ranells 245-2330 PURPOSE: To appropriate $2,500 and approve a contract for a feasibility study for an agriculture products regional value-added processing center. BACKGROUND: During the past few years, the local and regional farming community has evolved to meet local market opportunities. The tremendous increase in consumer interest in locally grown, healthy, nutritious, and fresh farm products has supported an increase in farmers selling at farmers' markets, direct to consumers, from farm stands, and through. local coops and conventional grocers. In addition, there is strong interest from local school districts, universities, and hospitals to obtain locally grown or raised farm products. An oft-cited limitation to marketing local farm products is the lack of processing facilities. In 2005, the Orange County Board of County Commissioners appointed interested. citizens and farmers to a working group that examined, among other concerns, the need and justification for a value-added, shared-use processing facility. The report submitted by the Agricultural Center Work Group, presented to the commissioners on May 25, 2006, contained a recommendation that the Board move to conduct a feasibility study for avalue-added, shared-use processing facility. In October of 2006, then BOCC Chair Barry Jacobs sent a letter to .neighboring counties (Alamance, Caswell, Chatham, Durham, & Person) and to local grocers (EarthFare, Weaver Street Market, & Whole Foods) offering the opportunity to partner with Orange County to conduct the feasibility study. As of February 28, 2007, Alamance, Chatham, & Durham Counties have each pledged $2,500. Additionally, Weaver Street Market and Whole Foods have pledged $1,000 each, for a total of $9,500. The partnership that has developed will likely be able to leverage local investment with state and federal grants. A draft contract to conduct 2 the feasibility study has been offered by Smithson Mills of the Center for Assessment and Research Alliances of Mars Hill College and is attached. FINANCIAL IMPACT: The total cost of the feasibility study is $15,000. While additional funds may be forthcoming from partners, currently pledges total $9,500. At this time it is requested that Orange County provide support at a level equal to the other counties, $2,500, to be taken from the BOCC contingency fund. RECOMMENDATION(S): The Manager recommends that the Board: 1) appropriate $2,500 for Orange County's share of the feasibility study from the BOCC Contingency Fund; 2) approve the draft contract, contingent upon review by the County Attorney; and 3) authorize the BOCC Chair to sign the contract when full funding for the study is obtained. NORTH CAROLINA ORANGE COUNTY THIS AGREEMENT, made and entered into the _ day of March, 2007, by and between Orange County, North Carolina, 200 S. Cameron Street, Hillsborough, North Carolina, hereinafter referred to as "County" and Smithson Mills, Inc. of Asheville, North Carolina, hereinafter referred to as "Mills" for a Reaional Value-Added Shared-Use Processing Facility. WITNESSETH: WHEREAS, the on-going work of the Economic Development Commission strives to seek agricultural economic development through innovative and market appropriate initiatives; and WHEREAS, the local and regional farming.community has evolved to meet local market opportunities and the tremendous increase in consumer interest in locally grown, healthy, nutritious, and fresh farm products WHEREAS, the increase in farmers selling at farmers' markets, direct to consumers, from farm stands, and through local coops and conventional grocers, WHEREAS, there is strong interest from local school districts, universities, hospitals, and other institutional food buyers to obtain locally grown or raised farm products. WHEREAS, in 2005, the Orange County Board of County Commissioners appointed interested citizens and farmers to an Agricultural .Center Working Group that examined, among other issues, the need and justification for avalue-added, shared use processing facility. WHEREAS, the Agricultural Center Work Group presented their findings to the commissioners on 25 May 2006 and recommended that the Board move to conduct a feasibility study for avalue-added, shared-use processing facility. AND WHEREAS, two-thirds of the funding to conduct avalue-added shared-use processing facility has been raised from partnerships with Alamance, Chatham, & Durham Counties and Weaver Street Market and Whole Foods. Therefore: Article 1. In consideration of the above and the mutual covenants and considerations hereinafter set forth, the County and Smithson Mills agree that Mills will conduct a feasibility study that will: 1. Provide third-party verification of research methodologies and analysis of primary data gathered by participating counties, including potential client surveys and market surveys. 2. Identify production lines that respond to the documented need/desire to produce given products. 3. Provide guidance on legal organization structure such as, incorporation, acquisition of product liability and personal injury insurance. 4. Establish protocols for client management, including recommended facility use policies, proper interface with regulatory agencies including the county health inspectors and NCDA Food & Drug inspection, and provide guidance on the viability of limited meat processing under USDA or NCDA certification. Recommendations would also include storage fees and production fees. 4 5. Identify all costs associated with facility operations (not including facility development costs), with a recommended plan for achieving current-account break-even. 6. Review proposed facility layout and design, including cold and dry storage and food production segregation. 7. Provide estimates of total cost of facility build-out and equipment acquisition. 8. Provide final feasibility study organization and presentation. 9. Conduct three area visits and interviews with community partners. 10. Instruct participating counties on conducting area publicity, primary data gathering, and organization of meeting and visits with potential project collaborators. Article 2. Orange County will, upon receipt of appropriate billings, compensate Mills at the project fee of $15,000, payable in three installments (at contract signing, at accomplishment of 50% of work, and at presentation of final report to Orange County). Payments can be mailed to Smithson Mills, 34 West Oakview Road, Asheville NC 28806. Article 3. Either party may effect termination of this agreement hereto by the delivery to the other party of a written notice of intent to terminate, such termination to be effective on the thirtieth calendar day after date of delivery notice. This agreement will terminate on December 31, 2007. Article 4. This agreement may be amended only by written agreement signed by both parties. IN WITNESS WHEREOF, Orange County has caused this Agreement to be signed in its name by its County Manager, attested by the clerk to the Board of Commissioners and Smithson Mills has caused this Agreement to be signed, and all authority duly given, the day and year first above written. ORANGE COUNTY Bv: Moses Carey, Chair, BOCC ATTEST: Clerk to the Orange County, Board of Commissioners Smithson Mills, Inc. By: Smithson Mills, President 4 NORTH CAROLINA ORANGE COUNTY I, ,Notary Public for said County and State, certify that Donna Baker personally came before me this day and acknowledged that she is Clerk to the Board of Commissioners of Orange County, and that by authority duly given and as the act of Orange County, the foregoing instrument was signed in its name by Laura Blackmon, Orange County Manager, sealed with its official seal, and attested by herself as its Clerk. Witness my hand and official seal, this the day of , 2007. Notary Public My commission expires: NORTH CAROLINA COUNTY I, , a Notary Public for said County and State, do hereby certify that personally appeared before me this day and acknowledged that he is Witness my hand and official seal, this the day of , 2007. Notary Public My commission expires: