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HomeMy WebLinkAboutAgenda - 04-30-2007-1ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: April 30, 2007 Action Agenda Item No. 1 SUBJECT: County/OCSJCHCCS Matters DEPARTMENT: Manager/Budget/CHCCS/OCS PUBLIC HEARING: {Y!N) No ATTACHMENT{S}: As listed in "Background" INFORMATION CONTACT: Laura Blackmon, 919-245-2300 Donna Coffey, 919-245-2151 Neil Pedersen, 919-967-8211 Shirley Carraway, 919-732-8126 PURPOSE: To discuss various issues with policy and/or financial implications that are of current interest to the Orange County Commissioners, Orange County Board of Education, and Chapel Hill-Carrboro Board of Education. BACKGROUND: The Chairs of the respective governing boards recently coordinated to establish the topics to be addressed on the agenda for this semi-annual joint work session of the Board of Commissioners and the two Boards of Education. Staff have compiled introductory and background information regarding each of the topics (highlighted in bold text below} that were chosen by the Chairs. a. School Construction Standards Policy This portion of the meeting will provide an opportunity for members of all three governing boards to review, discuss, and ask questions about the School Construction Standards proposed by the Collaboration Work Group, prior to their formal consideration for adoption by the Orange County Board of Commissioners. In May 1996, the Board of Commissioners adopted school construction standards for elementary and middle schools in Orange County. High School construction standards were approved in April 1999. Two separate School Facilities Task Forces that convened in 2000 and in 2002 identified a number of issues related to both sets of standards that required clarification and or updating (e.g. baseline estimates of per square foot cast, an appropriate inflation factor, percentage of project budget that should be set aside far contingency, etc}. During the first half of 2006, the Collaboration Work Group met four times to focus on revisions that should be made to existing Orange County school construction standards. Those meetings involved primarily information gathering regarding school construction practices and guidelines, sustainability considerations, and opportunities for community use of school facilities, particularly with regard to County and municipal recreation programming. Since September 2006, the Work Group has met three additional times to review and refine successive drafts of updated School Construction Standards. All three governing boards received and reviewed an early draft of the revised standards at the September 2006 joint work session. Of particular note in the Work Group's proposal is the recognition of the need to consider "non-traditional schools" as well as more traditional models, in furtherance of evolving educational priorities and smart growth initiatives, and in light of the harsh realities of spiraling costs in the construction industry. Those revised standards, once formally adopted by the BOCC, will play an integral role in shaping the discussions about capital funding -and the sources thereof -that will be needed to construct the new school facilities that were identified in the 2006 -16 Capital Investment Plan. The construction standards are also an essential consideration as the County prepares to engage its external consultant to update the School Construction Impact Fee Technical Report. That report is a precursor to the BOCC's pending review of the appropriateness and adequacy of impact fees that are currently being charged for the construction of each new residential dwelling unit in Orange County. Attachment A - School Construction Standards Apri12047 Update -Fourth Draft b. Landbanking History and Goals Consistent with provisions in the proposed School Construction Standards far consideration of "non-traditional schools", it is timely for the County, school systems, and municipalities to collaborate on opportunities to identify and secure potential sites for future schools. The Chairs recently initiated formal contact with the Towns of Carrboro, Chapel Hill, and Hillsborough and with the City of Mebane to undertake a specific effort to explore the prospects for school sites that are consistent with the new standards and that could potentially be "landbanked" for future use. Elected officials may wish to provide comments ar direction to County and School staffs regarding this initiative. Attachment 8 - 4/2/07 Letter from Chairs to Mayors re: School Site Identification c. Capital Funding Policy, Including Lottery Proceeds The Board of Commissioners approved revisions to the County's capital funding policy at their April 24, 2007 meeting. Of particular note are determinations that have been made regarding the use and timing of budgeting for proceeds from the North Carolina Education Lottery. The timing of the annual cycle for review and updating of the County and Schools' Ten Year Capital Investment Plans has also been moved back to autumn so that adequate review and analysis of capital needs can be accomplished at a time distinct from the annual operating budget development process. County staff will briefly review the policy changes and their operational impacts, and respond to any questions that elected officials may have on this subject. Attachment C - 4/24147 Agenda Abstract: "Approval of County Capital Funding Policy" d. Fund Balance Policy Since 1986, the County and two school systems have been operating within an informal understanding that each school system would observe a specific target in maintaining annual available fund balance in their respective local funds. Far the Chapel Hill-Carrboro Schools, the target has been 5.5%, and for Orange County Schools, the target has been 2.7°~. The higher CHCCS target is related to proceeds from the CHCCS special district tax, receipt of which are typically concentrated in the period between November and January each year. The higher available fund balance allows CHCCS to address cash flow needs during the first few months of each fiscal year, when the monthly current expense appropriations from the County to the two school systems might be inadequate to address all CHCCS cash needs {as they are awaiting receipt of their district tax proceeds). Several years ago, County and school system financial staffs conferred to discuss the appropriateness of school fund balance targets. Their observations and recommendations were recorded in a memo from the County Finance Director to the Board of Commissioners, although na formal changes have been implemented related to school fund balance targets. Elected officials may wish to discuss issues related to school local fund balances, and to provide any direction to County and School staffs. Both school systems have provided historical fund balance information that includes current projections of their estimated fund balance position as of the end of FY 2006-07. County staffs preliminary 2006-07 fund balance projections and historical fund balance data for the County's General Fund are provided as well. Attachment D-~ - 9124104 Finance Director Memo to 8000 Attachment D-2 - 2/73/86 County Finance Director Memo to BOCC Attachment D-3 - 4/02/86 BOCC Chair Letter to OCS Board Chair Attachment D-4 - 4/70/86 BOCC Chair Letter to CHCCS Board Chair Attachment D-5 - 4127/07 OCS Superintendent Memo re: Local Fund Balance Attachment D-6 - 4/25/07 CHCCS Superintendent Memo re: Loco! Fund Balance Attachment D-7 -Orange County Historical Fund Balance Data e. Fair FundinglEquity One product of the April 25, 2006 joint work session among the governing boards was a determination that a work group comprised of elected representatives from each of the three jurisdictions should make an effort to develop recommendations relating to "school funding equity" or "fair funding" far consideration by the BOCC during June 2006 budget deliberations. That work group met twice and developed a set of recommendations that were presented to the Board of Commissioners at the budget work session on June 8, 2006. As a starting point for discussion among the elected officials about what additional steps should be pursued vis-a-vis "fair funding" or "school funding equity", the following documents are provided for background: • Facilitator meeting notes from the first Fair Funding Work Group meeting • Specific recommendations developed at the second Fair Funding Work Group meeting • April 2007 draft goal related to "Fair Funding far Schools" (NOTE: this draft version does not reflect modifications discussed by the BOCC at their regular meeting on April 24, 2007} Attachment E-1 - 5!23/06 Fair Funding Work Group Meeting -Facilitator's Notes Attachment E-2 - 6!08/06 Recommendations of the Fair Funding Work Group to the Board of County Commissioners Attachment E-3 - Apri12007 BOCC Draft Goal - "Fair Funding for Schools" 3 4 f. School Health/Day Clinics Proposal Over the past two years, a small group of individuals have met periodically to assess the need far aschool-based health center for the Orange County School District. The group has included representatives from Orange County Schools, the Department of Social Services, the Health Department, and OPC Mental Health. Presentations reviewing the data and the concepts that the group has discussed have been made to the Orange County School Board, the Social Services Board, and the Health Board. OCS have secured a small planning grant that will be utilized aver the upcoming year to engage in mare definitive planning for a possible school-based health center initiative. OCS staff will provide a brief overview and would welcome BOCC endorsement of and support for the planning effort. Other public and private community partners will collaborate in planning far the implementation of these concepts. Attachment F-1- OCS School-Based Health Center Initiative Attachment F-2 - PowerPoint Handouts: "Working Together to Improve the Health & Academic Success of Orange County School District Students" g. Middle College High School Update The Middle College High School initiative began two years ago as a joint endeavor among the Orange County Schools, Chapel Hill-Carrboro City Schools, Durham Public Schools, and Durham Technical Community College. The first group of students is preparing to graduate next month. Recently, elected and staff representatives of bath OCS and CHCCS made a site visit to the middle college program. They will briefly share information about the program received during the course of that visit. Attachment G -Middle College High School Statistical & Scheduling Data Tables FINANCIAL IMPACT: There is no financial impact tied directly to the discussion at this meeting. However, decisions that the school boards and BOCC will make at subsequent meetings are likely to have significant implications for future capital and operating budgets. RECOMMENDATIONS}: The Manager recommends that the boards discuss the issues noted and provide direction to staff, as appropriate.