HomeMy WebLinkAboutMinutes 04-19-2016 1
APPROVED 5/17/2016
MINUTES
BOARD OF COMMISSIONERS
REGULAR MEETING
April 19, 2016
7:00 p.m.
The Orange County Board of Commissioners met for a regular meeting on Tuesday, April 19,
2016 at 7:00 p.m. at the Southern Human Services Center, in Chapel Hill, N.C.
COUNTY COMMISSIONERS PRESENT: Chair McKee and Commissioners Mia Burroughs,
Mark Dorosin, Barry Jacobs, Bernadette Pelissier, Renee Price and Penny Rich
COUNTY COMMISSIONERS ABSENT:
COUNTY ATTORNEYS PRESENT: John Roberts
COUNTY STAFF PRESENT: County Manager Bonnie Hammersley, Deputy Manager Travis
Myren and Clerk to the Board Donna Baker (All other staff members will be identified
appropriately below)
Chair McKee called the meeting to order at 7:04 p.m.
1. Additions or Changes to the Agenda
-- Green sheet - proposed resolution from Commissioner Rich
-- Pink sheet - suggested revision by Commissioner Jacobs to Item 4-b- Resolution Regarding
House Bill 2
--Yellow - addendum for Item 4-c: National Small Business Week Proclamation
--Yellow sheet - replacement abstract for Item 5a- Public Hearing on General Obligation Bond
Orders and Other Appropriate Action (previously mailed to the BOCC)
-- White sheet - additional options for Item 6-e: BOCC Rules of Procedure Revision
-- White sheet - hand out from public comments for items not on the printed agenda
Chair McKee said Commissioner Burroughs will be a little late.
PUBLIC CHARGE
Chair McKee dispensed with the reading of the public charge.
2. Public Comments
a. Matters not on the Printed Agenda
Bill Crowther said he went to the County Inspections Department, where he paid $660
for a building permit to build a footbridge over the Eno River. He asked if he could be
refunded this money in order to use it for signage and gravel, as this trail is part of the
Mountains to Sea Trail alignment, and will be for the public to use.
Andrew Dykers said he is an attorney and a musician living in Carrboro, and he is here
this evening to propose an Orange County Voter Education Initiative. He previously provided a
handout to the Board of County Commissioners (BOCC). He said the goal of this initiative is to
make it easier for Orange County residents to be more informed about elections. He reviewed
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his handout, particularly noting the following needs: a memorable URL, promotional signage,
links to each candidate, on line discussion site for candidates to debate/discuss their concerns
and solutions, and user friendliness.
Commissioner Price asked if he is proposing a site that is separate from the County site
or amendments to the County's website.
Andrew Dykers said a particular URL just for elections.
b. Matters on the Printed Agenda
(These matters will be considered when the Board addresses that item on the agenda
below.)
3. Announcements and Petitions by Board Members
Commissioner Rich petitioned the Board, referring to the green hand out, which is a
resolution to increase per pupil funding, and to fully fund public schools in North Carolina. She
said she would like this to be on the May 5th agenda for Board consideration.
Commissioner Burroughs arrived at 7:13 p.m.
Commissioner Rich requested information to change the County ordinance, and
petitioned for staff to come to the Board with an amendment to allow food trucks.
Commissioner Burroughs had no petitions.
Commissioner Jacobs said he would like an update on the Eubanks Road Solid Waste
Convenience Center (SWCC) expansion. He said he would also like to speak about properties
like the Greene Tract, due a couple of incidents that have occurred there recently. He said the
County's policy of not allowing public use of public lands is very troubling, and he would like to
have a discussion about this in the near future.
Chair McKee asked the Manager to bring back the update about the SWCC.
Commissioner Dorosin petitioned the Board to look at voting methods in Orange
County, both at-large and districts. He said this system is not as democratic as it should be,
and to re-visit the option of letting the district elections be district elections from the primary all
the way through to the general election.
Chair McKee seconded this petition.
Commissioner Dorosin said he asked for information about the economic impacts of
House Bill 2 (HB2) on Orange County, and received some information from Steve Brantley,
Director of Economic Development, and Laurie Paolicelli, Director of Community Relations. He
said there should be a public announcement about this information.
Bonnie Hammersley said all of this information will be compiled in one document and
share with the public and the Board.
Commissioner Price referred to single stream versus co-mingling recycling, and asked if
there is an update about this and its effectiveness.
Chair McKee referred this petition to the Manager.
Commissioner Pelissier asked if, when the General Assembly (GA) is in session, there
could be a link to the GA and the North Carolina Association of County Commissioners
(NCACC) on the County website.
Bonnie Hammersley said staff will do this.
Chair McKee said he heartedly endorses Commissioner Dorosin's petition regarding
voting methods.
4. Proclamations/ Resolutions/ Special Presentations
a. Resolution Honoring Norman Francis Gustaveson
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The Board will consider approving a resolution honoring and recognizing Norman
Francis Gustaveson for his devotion and service to the people of Orange County, and
authorize the Chair to sign the resolution.
Commissioner Jacobs said former Commissioner Gustaveson's wife Nancy, son Eric,
and granddaughter Anna, with husband Daniel, are in attendance this evening.
Commissioner Jacobs said three former Commissioners are also present: Former
Commissioners lnsko, Crowther and Willhoit.
Commissioner Jacobs read the resolution:
ORANGE COUNTY BOARD OF COMMISSIONERS
RESOLUTION HONORING
NORMAN FRANCIS GUSTAVESON
WHEREAS, the residents of Orange County elected Norman Francis Gustaveson to the Board
of County Commissioners in 1974 and re-elected him in 1978; and
WHEREAS, Mr. Gustaveson continually demonstrated himself to be a dedicated and effective
public servant, and a man of empathy and insight, who gained the respect of all who knew him
in both the public and private sectors; and
WHEREAS, during his tenure as an Orange County Commissioner, Norman Gustaveson
shared his talent for leadership and public service through his work on numerous committees,
boards, and task forces focusing on social justice, land conservation, the environment, and
energy conservation; and
WHEREAS, Mr. Gustaveson played a key role as a member of the "Shaping Orange County's
Future" task force; and
WHEREAS, he was a willing volunteer on County committees subsequent to his terms in
elected office, notably the Innovation and Efficiency Committee; and
WHEREAS, he was a lifelong scholar and social advocate leaving significant contributions
across the University of North Carolina campus; and
WHEREAS, he was a charter member of the Triangle Land Conservancy Board and was also
an Emeritus member of the Eno River Association;
NOW THEREFORE, BE IT RESOLVED that the Orange County Board of Commissioners, on
behalf of County officials and employees and the residents of Orange County, honors Norman
Francis Gustaveson and expresses deep appreciation, gratitude and respect for his service to
the County over the course of his life.
This the 19th day of April 2016.
A motion was made by Commissioner Price, seconded by Commissioner Rich for the
Board to approve, and authorize the Chair to sign, the attached resolution honoring Norman
Francis Gustaveson and recognizing his service to the people of Orange County.
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VOTE: UNANIMOUS
b. Resolution Regarding House Bill 2
The Board considered approving a resolution regarding House Bill 2, and authorizing
the Chair to sign the resolution.
Chair McKee said there is an amended resolution at the Commissioners' places. He
said Commissioner Price petitioned, and he seconded, a resolution requesting that HB2 be
repealed. He said the BOCC had already issued a resolution supporting the Charlotte
ordinance, and affirmed its commitment to all residents receiving fair, just, and equal
treatment. He referred to the last further resolved, and said that John Roberts suggests
removing this section, and discussing it in a closed session.
John Roberts said one reason he suggested the closed session is because there is a
local bill that is needed. He said he heard from Senator Foushee today, and that this local bill
will be more likely to pass with the support of a particular committee chair. He said this
committee chair supports HB2, and should Orange County speak out again HB2, this
committee chair may possibly withdraw his support from the needed local bill. He said the
Senator and the Committee Chair are working together to get this local bill passed. He said
this is the non-closed session reason, and he can elaborate further during the closed session.
Commissioner Dorosin asked if the BOCC follows the County Attorney's suggestion to
wait until after closed session to include this portion of the resolution, should the entire
resolution wait until after the closed session, or could the Board just have another vote on this
portion of the resolution.
John Roberts said this section can be voted on separately. He said there is not a rush
on this section, and the Board can delay the closed session until next week, or the BOCC can
direct him for litigation.
Commissioner Dorosin said he would be in favor of adopting this tonight.
Chair McKee asked if a closed session could be called for this evening.
John Roberts said yes, and it would be brief.
Commissioner Jacobs said he wrote additional wording, that he meant to add earlier
but forgot. He said the additional wording reflects the Board's previous resolution, and he read
the additional language he was suggesting.
Commissioner Price said she is fine with additional language. She referred to the point
of litigation, and said she would prefer not to include it at this time. She said her main concern
is that the support for repealing the bill moves forward.
Chair McKee suggested to motion for the substitute resolution on the pink sheet, and
delete the last clause.
Commissioner Dorosin highlighted the issue John Roberts' raised, saying the Board
finds itself at the mercy of a right wing legislation that may potentially hold up unrelated local
legislation, because this Board is trying to protect its residents. He said he will support the
resolution without the language, but will immediately make another motion to go to litigation.
He said he agrees that the demand for repeal is important, but feels the demands ring hollow
without expressing the willingness to fight the bill in every way.
Commissioner Price said she is willing to support both motions.
Chair McKee read the revised resolution:
REVISED
Chair McKee read the revised resolution:
ORANGE COUNTY BOARD OF COUNTY COMMISSIONERS
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RESOLUTION CALLING FOR THE REPEAL OF
SESSION LAW 2016-3/HOUSE BILL 2
WHEREAS, on February 22, 2016, the Charlotte City Council approved a local ordinance that
adds marital status, familial status, sexual orientation, gender identity, and gender expression
to its list of categories protected from discrimination in city contracting and public
accommodations; and
WHEREAS, on March 22, 2016, the Orange County Board of Commissioners adopted a
resolution supporting Charlotte's nondiscrimination policy; and
WHEREAS, on March 23, 2016, the North Carolina General Assembly in special session
ratified and Governor Pat McCrory signed House Bill 2 (Session Law 2016-3), the Public
Facilities Privacy & Security Act which further limits the ability of local governments to address
issues on a local basis; and
WHEREAS, House Bill 2 [HB2] appears to repeal the Charlotte ordinance by establishing new
statewide standards for what constitutes discriminatory practice in employment and public
accommodations; and
WHEREAS, the omission of sexual orientation, gender identity, gender expression, and other
categories from the statewide list of categories protected from discrimination means that
protections on these bases appear to be unavailable through state law, and that local
governments appear to be preempted from offering these protections to their residents; and
WHEREAS, HB2 appears to eliminate the right of any person to bring a civil action in a North
Carolina court for a claim of discrimination in employment or public accommodations on
account of race, religion, color, national origin, age and biological sex, as well as handicap for
employment only; and
WHEREAS, HB2 is inconsistent with the Equal Protection Clause of the United States
Constitution; and
WHEREAS, Orange County is dedicated to assuring that the principles of equality,
nondiscrimination and full inclusion and engagement extend to all residents, and that no
persons are denied their civil or human rights;
NOW, THEREFORE, BE IT RESOLVED, that the Orange County Board of Commissioners
urges the North Carolina General Assembly to repeal House Bill 2 [HB2] in its entirety at the
earliest opportunity; and
BE IT FURTHER RESOLVED, that the Orange County Board of Commissioners reaffirms its
duty to protect and advance the constitutional rights and equitable treatment of all residents of
Orange County as well as its primacy in understanding and best reflecting the values of
our constituents;
BE IT MOREOVER RESOLVED, that the Orange County Board of Commissioners asks the
Orange County Clerk to send copies of this resolution to the members of the Orange County
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delegation of the General Assembly and to the North Carolina Association of County
Commissioners.
This the 19th day of April, 2016.
A motion was made by Commissioner Price, seconded by Commissioner Rich for the
Board to approve the amended resolution with Commissioner Jacobs' proposed language and
to delete the "be it further resolved" section about litigation and authorized the Chair to sign the
attached resolution.
Commissioner Rich said to insert "in its entirety" after the resolution to repeal HB2.
Commissioner Price agreed to add this.
VOTE: UNANIMOUS
A motion was made by Commissioner Dorosin, seconded by Commissioner Price to
authorize the County Attorney to support, join and/or initiate litigation seeking to challenge and
overturn all the provisions of HB2.
Commissioner Pelissier said she will not vote in favor if this motion until the Board
meets with its attorney. She said it is hateful that the County is being punished by the State
for taking a stance against HB2. She said this is a social justice issue.
Commissioner Jacobs said he appreciated Commissioner Pelissier's comments and
position, but it is never an easy choice when you are bullied for the wrong reasons.
VOTE: Ayes, 6; Nays, 1 (Commissioner Pelissier)
c. National Small Business Week Proclamation
The Board considered approving a proclamation, joining with the U.S. Small Business
Administration, to designate the week of May 1 through May 7, 2016 as National Small
Business Week and honor small businesses for their contributions to the economy of the
nation, state and county, and authorizing the Chair to sign the proclamation.
Steve Brantley said Business Retention staff member, Yvonne Scarlett, joins him.
Yvonne Scarlett recognized some of their Small Business Owners in the audience.
Steve Brantley showed a 4-minute video, which highlighted small businesses in Orange
County.
Chair McKee read the proclamation:
ORANGE COUNTY BOARD OF COMMISSIONERS
NATIONAL SMALL BUSINESS WEEK PROCLAMATION
WHEREAS, America's progress has been driven by pioneers who think big, take risks and
work hard; and
WHEREAS, from the storefront shops that anchor Main Street to the high-tech startups that
keep America on the cutting edge, small businesses are the backbone of our economy and the
cornerstones of our nation's promise; and
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WHEREAS, small business owners and Main Street businesses have energy and a passion for
what they do; and
WHEREAS, when we support small business, jobs are created and local communities preserve
their unique culture; and
WHEREAS, because this country's 28 million small businesses create nearly two out of three
jobs in our economy, we cannot resolve ourselves to create jobs and spur economic growth in
America and Orange County without discussing ways to support our entrepreneurs; and
WHEREAS, the President of the United States has proclaimed National Small Business Week
every year since 1963 to highlight the programs and services available to entrepreneurs
through the U.S. Small Business Administration and other government agencies; and
WHEREAS, Orange County supports and joins in this national effort to help America's and
Orange County's small businesses do what they do best— grow their business, create jobs,
and ensure that our communities remain as vibrant tomorrow as they are today;
NOW, THEREFORE, we, the Orange County Board of Commissioners, do hereby proclaim
May 1 through May 7, 2016 as "NATIONAL SMALL BUSINESS WEEK" in Orange County in
celebration of the many Orange County small businesses.
THIS THE 19th DAY OF APRIL, 2016.
A motion was made by Commissioner Dorosin, seconded by Commissioner Jacobs for
the Board to approve and authorized the Chair to sign the proclamation on behalf of the Board.
VOTE: UNANIMOUS
5. Public Hearings
a. Public Hearing on General Obligation Bond Orders and Other Appropriate Action
Bob Jessup, Bond Counsel, reviewed the following information for the Board's
consideration:
1) Conducting a first scheduled public hearing to receive public comment on the questions
of the validity of the bond orders and the advisability of issuing the bonds;
2) Close the public hearing. The Board can then either proceed to step (3) without
changes to the Bond Orders as previously introduce, or in the alternative the Board may
decide either(a) not to put forward either or both of the proposed orders, or(b) to lower
the amount of either or both orders (The Board cannot, however, add a purpose for the
proposed bonds or increase either amount of bonds without restarting the bond
authorization process.);
3) In preparation for the second public hearing on May 5, 2016, introduce again (per Bond
Counsel) the two bond orders which state the Board of County Commissioners' proposal to
issue General Obligation Bonds to pay capital costs for providing school facilities and for
housing for persons with low and moderate income: The first bond order introduction
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authorizes the issuance of General Obligation, Bonds in an amount not to exceed $120 million
to support school facilities; and the second bond order introduction authorizes issuance of
General Obligation Bonds in an amount not to exceed $5 million for housing for persons with
low and moderate income.
4) Hold open final action on the Bond Orders until after the May 5 public hearing.
BACKGROUND:
The Board of County Commissioners adopted a resolution on October 6, 2015 for the County
to issue up to $120 million for Schools and up to $5 million for Affordable Housing. The Board
made a determination to proceed with a referendum on November 8, 2016, 1 for authorization
to issue County General Obligation Bonds in an amount not to exceed $125 million.
The Board subsequently adopted a resolution at the March 22, 2016 regular meeting to
schedule a public hearing on the bond orders at this April 19, 2016 regular meeting. The
resolution also included conducting a second public hearing at the Board's May 5, 2016
regular meeting. The bond authorization schedule therefore calls for the first public hearing at
tonight's meeting.
In response to public comment, or otherwise, the Board can decide (a) not to put forward either
or both of the proposed Orders, or (b) to lower the amount of either or both orders. The Board
cannot, however, add a purpose for proposed bonds or increase either amount of bonds
without re-starting the bond authorization process.
Because of oddities related to the approval process with the Local Government Commission,
bond counsel recommends that, after this first public hearing, the Board repeat a previous step
of"introducing" the two Bond Orders. That step is included in the Manager's recommendation.
The second public hearing is scheduled for May 5, 2016 at the County's Whitted Human
Services Center, 300 West Tryon Street, Hillsborough, North Carolina, 27278. After that
second public hearing, the Board will be asked to approve the Bond Orders, and then consider
a resolution to formally call for the November bond referendum and approving the ballot
questions. The referendum is scheduled for the regular election date, November 8.
PUBLIC COMMENT:
Allan Rosen said he wanted to thank the Board for the $5 million allocated towards
affordable housing in the proposed bond referendum. He said he works at the InterFaith
Council (IFC) Center, and this funding would be greatly appreciated and used. He said the
affordable housing community wants to educate the public on the upcoming proposed bond
referendum.
Close the public hearing:
A motion was made by Commissioner Dorosin, seconded by Commissioner Price to
close the public hearing.
VOTE: UNANIMOUS
A motion was made by Commissioner Dorosin, seconded by Commissioner Rich to:
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• In preparation for the second public hearing on May 5, 2016, introduce again (per Bond
Counsel) the two bond orders which state the Board of County Commissioners'
proposal to issue General Obligation Bonds to pay capital costs for providing school
facilities and for housing for persons with low and moderate income.
• The first bond order introduction authorizes the issuance of General Obligation Bonds
in an amount not to exceed $120 million to support school facilities.
• The second bond order introduction authorizes issuance of General Obligation Bonds
in an amount not to exceed $5 million for housing for persons with low and moderate
income; and
• Hold open final action on the Bond Orders until after the May 5 public hearing.
VOTE: UNANIMOUS
6. Consent Agenda
• Removal of Any Items from Consent Agenda
6-c by Commissioner Jacobs
6-e by Commissioner Rich
• Approval of Remaining Consent Agenda
A motion was made by Commissioner Dorosin, seconded by Commissioner Price to
approve the remaining items on the consent agenda.
VOTE: UNANIMOUS
• Discussion and Approval of the Items Removed from the Consent Agenda
6-c: Renewal of Food and Organic Waste Collection and Composting Contract
The Board will consider approving an amendment renewing the contract with Judy D.
Brooks Contractor, Inc. that enables the County Solid Waste Management Department to
provide collection for separated food waste and other organic materials to commercial and
institutional establishments throughout Orange County, and authorize the Manager to sign the
Contract Amendment.
Commissioner Jacobs said he usually removes this item to express hope that the next
time it comes up, there will be an internal organic waste recycling program so that out sourcing
will no longer be necessary. He said he understands that state law prohibits requiring a living
wage, but he recalled the Board directing the Attorney to come back with a policy that could
serve as a guiding document to include in the bidding process, expressing the Board's intent.
John Roberts said the Manager had informed the Board that this would be addressed
during upcoming budget discussions.
Bonnie Hammersley said there was a presentation made, and the issue will be
addressed in contracts where the County can legally require a living wage, but as this contract
is a bidded one, there are limitations on the County's abilities. She said the living wage will be
addressed in the 2016-17 budget.
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Commissioner Jacobs asked if this will be a two prong approach, requiring a living
wage when possible, as well as forwarding a document about the County's stance to all who
may be bidding on contracts.
Bonnie Hammersley said she would get back to the Board on this issue.
A motion was made by Commissioner Jacobs, seconded by Commissioner Rich to
approve an amendment renewing the contract with Judy D. Brooks Contractor, Inc. that
enables the County Solid Waste Management Department to provide collection for separated
food waste and other organic materials to commercial and institutional establishments
throughout Orange County, and authorized the Manager to sign the Contract Amendment.
VOTE: UNANIMOUS
6-e. BOCC Rules of Procedure Revision
The Board will consider approving a modification to the Board of County
Commissioners (BOCC) Rules of Procedure to move the Consent portion of the agenda to
immediately follow Petitions by Board Members.
Commissioner Rich pulled this item, and said there was a discussion with
Commissioner Burroughs who had proposed it.
Commissioner Rich said she did not like the way it was written in the abstract and was
provided with alternate options by staff. She said Option A is in the agenda packet, and
Options B-D are at the Commissioners' places.
Commissioner Rich said she prefers Option D, as it puts items that involve, or honor,
residents first. She said she does not support pulling items from the consent agenda, and
adding them to the regular agenda. She said she would like to see the consent agenda
completed before moving on.
Commissioner Burroughs said her intent in moving the consent agenda was to avoid
having department directors sitting in the audience for hours, waiting to see if their item is
pulled off the consent agenda for further discussion.
Commissioner Burroughs said she served on a previous elected board, which always
did consent at the beginning of the meeting. She said her proposed process would take a
nominal amount of time, and then the meeting can move on to Proclamations, etc.
Commissioner Burroughs said it is an easy thing to do for staff, as references to quality
life. She said she prefers option B or C.
Commissioner Price said the general public would not want to sit through a consent
agenda and staff knows that this is part of their job. She said that proclamations, resolutions,
etc., should come first.
Commissioner Burroughs said the Board would not deliberate on a consent agenda
item at the start of the meeting. She said rather items to be pulled, would be pulled, the rest of
the agenda voted upon, and the pulled items discussed later at the start of the regular agenda.
Commissioner Rich said items are put on the consent agenda because they have been
seen before, or require little or no discussion. She said it is the responsibility of the Manager
to handle staff issues and needs. She said the responsibility of the Board is to the residents.
Commissioner Jacobs said there have been issues in the past about what belongs on
the consent agenda and this item does not belong on the consent agenda. He said years ago,
public items were moved to the front of the agenda. He said the current agenda structure is
the most efficient and effective, and it is up to the Manager whether or not her staff needs to
be here. He likes for staff to be here to know what is going on in Orange County government.
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Commissioner Pelissier said there were recent meetings where a lot of time was spent
on public items, but in the end she is comfortable leaving the structure of the agenda as it is
since there is a timeframe to resolve any questions/concerns prior to the meeting on consent
agenda items. She does not want to elevate the consent agenda to a heightened position.
Chair McKee said he sees Option D as a good compromise, if there is a change at all.
He said he does not want to split the consent agenda. He said there is always the flexibility to
move up an item in a given meeting, for that meeting only.
Commissioner Rich said she is not convinced that there should be any change.
A motion was made by Commissioner Dorosin, seconded by Commissioner Burroughs
to adopt Option D (below).
VOTE: Ayes, 5; Nays, 2 (Commissioner Jacobs and Commissioner Pelissier)
OPTION D
Regular Meetings. For all regular meetings, items shall be placed on the agenda as listed
below:
• 1. Additions or Changes to the Agenda
• Public Charge
• 2. Public Comments (Limited to One Hour)
• 3. Announcements and Petitions by Board Members (Three Minute Limit Per
Commissioner)
• 4. Proclamations/Resolutions/Special Presentations
• 5. Consent Agenda
• • Removal of Items from Consent Agenda
• • Approval of Remaining Consent Agenda
• • Discussion and Approval of the Items Removed from the Consent Agenda
• 6. Public Hearings
• 7. Regular Agenda
• 8. Reports
• 9. County Manager's Report
• 10. County Attorney's Report
• 11. Appointments
• 12. Board Comments
• 13. Information Items
• 14. Closed Session
• 15. Adjournment
a. Minutes
The Board approved the minutes from the March 22, 2016 BOCC Regular Meeting; and the
March 29, 2016 BOCC Work Session, as submitted by the Clerk to the Board.
b. Fiscal Year 2015-16 Budget Amendment#8
The Board approved budget and grant project ordinance amendments for fiscal year 2015-16
for Department of Environment, Agriculture, Parks and Recreation; Department on Aging;
Health Department; and Cooperative Extension.
d. Authorization to Declare Solid Waste Management Items Surplus
The Board 1) declared various items as surplus, and 2) authorized the AMS director to affect
the sale of the items through GovDeals.
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f. Application for North Carolina Education Lottery Proceeds for Chapel Hill — Carrboro
City Schools (CHCCS) and Contingent Approval of Budget Amendment#8-A Related to
CHCCS Capital Project Ordinances
The Board approved, and authorized the Chair to sign, the application for North Carolina
Education Lottery Proceeds; and approved Budget Amendment#8-A receiving the Lottery
Proceeds and the amended CHCCS Capital Project Ordinances, contingent on NCDPI's
approval of the application.
g. Amendment Outline Forms and Schedules — Hillsborough Area Economic
Development District
The Board approved process components and schedules for upcoming government-initiated
amendments to the Town of Hillsborough/Orange County Central Orange Coordinated Area
Land Use Plan, the Orange County Unified Development Ordinance (UDO), and the Orange
County Zoning Atlas, and directed staff to proceed accordingly.
7. Regular Agenda
a. Adoption of the FY 2015-16 Final Financing Resolution Authorizing the Issuance
of$8,150,000 in Installment Purchase Financing for Various Capital Investment
Plan Projects
The Board considered approving the final financing resolution authorizing the issuance
of approximately $8,150,000 in installment financing to finance capital investment projects and
equipment for fiscal year 2015-16, including amounts to pay transaction costs.
Gary Donaldson, Orange County Chief Financial Officer, reviewed the following
information:
BACKGROUND:
At the March 22, 2016 meeting, the Board of County Commissioners received preliminary
information on capital projects and equipment financing for the year. At that meeting, the
Board made a preliminary determination to finance costs of these projects and equipment by
the use of an installment financing, as authorized under Section 160A-20 of the North Carolina
General Statutes. The financing will also include amounts to pay transaction costs.
The statutes require that the County conduct a public hearing on the proposed financing and
refinancing contracts. The Board conducted the public hearing at its March 22, 2016 meeting,
and adopted the resolution supporting the application to the Local Government Commission
(LGC) for approval of the financing. County staff has been in contact with the LGC staff, and
staff expects no issues to receiving LGC approval.
The four documents that the resolution approves are the following:
• The Installment Financing Contract, between the County and First Bank, which
provides for the Bank's advance of funds to the County for the County's undertaking of
the project, sets out the County's repayment obligation, and sets out the County's other
obligations, such as its obligations to care for the collateral.
• The Deed of Trust and Security Agreement, which provides for a security interest in the
Grady Brown School and its associated real property to secure the County's repayment
obligation. This is the document that provides that if the County defaults on its
obligations, the Bank can foreclose on the school property.
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• A Lease between the County and the Orange County Board of Education which
provides for the School Board's continued use of the Grady Brown School property
during the financing term.
• A Project Completion and Agency Agreement between the County and the School
Board, which sets out their respective responsibilities for carrying out the acquisition
and construction of the planned improvements to Grady Brown School.
If the Board adopts the final financial resolution authorizing final approval for the financing,
staff expects the LGC to approve the financing plan at the May 3, 2016 LGC meeting. Under
the current schedule, staff expects to set the final interest rates and other terms of the
financing in April 2016, and to close on the financing the week of May 9th. The Board is
requested to approve a financing amount not to exceed $8,150,000 and a maximum interest
rate of 2.55%.
FINANCIAL IMPACT:
There will be a financial impact in proceeding with the financing. At current rates, preliminary
estimates of maximum debt service applicable to the capital investment projects and
equipment financing would require the highest debt service payment of$894,084 in FY 2016-
17. The tax rate equivalent for the estimated highest debt service payment is approximately 1/2
cent. A portion of this debt financing is related to projects where the debt service payments
will be paid from Solid Waste Enterprise funds.
Based on current resources and the retirement of existing debt, no adjustment to the tax rate is
anticipated with this financing during the period noted.
Commissioner Price asked if using Grady Brown as collateral is a normal process; and
if the County has a surplus, why is it not being used for these projects, instead of increasing
debt.
Gary Donaldson said there is a Capital Investment Plan (CIP), and there is a mix of
sources of income. He said these projects were deemed for financing, and the useful life of a
project is also considered.
Gary Donaldson said under state statue for installment financing, there must be
collateral that is comparable in value to that which is being financed.
Commissioner Jacobs asked if special authorization is given for the University of North
Carolina to borrow multi millions over 100 years.
Bob Jessup said UNC Board of Governors has asked for some legislation for 100 year
borrowing, which is currently capped at 30 years. He said there is currently no statutory limit
for installment financing, but the Local Government Commission wants the payment schedule
to be about the length of the useful life of the asset. He said it would take additional state
legislation to authorize that type of long-term financing.
Commissioner Jacobs asked if there is any place in the United States where this type
of borrowing is used.
Bob Jessup said the District of Columbia or Washington Metro transit borrowed 100-
year money to finance a wide range of long lasting improvements. He said others, such as for
profit organizations and some public universities, have used it.
A motion was made by Commissioner Burroughs, seconded by Commissioner Pelissier
for the Board to approve the final financing resolution authorizing the issuance of
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approximately $8,150,000 in installment financing to finance capital investment projects and
equipment for fiscal year 2015-16, including amounts to pay transaction costs.
VOTE: UNANIMOUS
b. Establishment of a Policy to Provide the Board of Equalization and Review
Guidance on the Imposition of Penalties
The Board considered adopting a policy to provide assistance to the Board of
Equalization and Review in determining how and when to compromise tax penalties.
BACKGROUND:
The Board of County Commissioners indicated the need to have a standardized policy for the
compromise of tax penalties in Orange County in order to avoid any appearance of unfairness
to Orange County taxpayers. Currently the Board of Equalization and Review has no guidance
in this area. A standardized approach to the compromise of tax penalties will benefit both the
Board of Equalization and Review (E&R) and the taxpayers of Orange County.
John Roberts said the BOCC encountered this issue, and directed him to bring back a
policy to provide guidelines to the E&R Board, for when tax penalties can be compromised.
He reviewed some example scenarios. He said the guidelines provide some discretion to the
E&R Board.
Commissioner Rich asked if there is a plan to educate the E&R Board.
John Roberts said he would provide guidance on this document, when the E&R Board
reconvenes this spring.
Commissioner Rich asked if John Robert's office provides legal guidance to the E&R
Board.
John Roberts said the E&R Board has not had any questions of his office, up to this
point. He said if questions were to arise, he would be happy to help.
Commissioner Jacobs thanked John Roberts for these guidelines. He referred to point
1.14, and said there have been struggles in the past with the Machinery Act and recognizing
that special circumstances required some amelioration of the penalties being paid. He asked if
these guidelines would aid the E&R Board in diverging from the Machinery Act.
John Roberts said this only applies to penalties for those who are late in paying taxes
and not applicable to issues addressed in the Machinery Act.
Commissioner Jacobs said the Machinery Act is very old. He said it may be helpful for
John Roberts to educate the BOCC regarding what the Machinery Act does and does not do,
as far as compromising for penalties.
John Roberts said he can provide this information to the Board.
John Roberts reviewed the structure of the document.
Chair McKee asked if sections 1.1 and 1.2 could be indented.
John Roberts said yes.
Policy Statement
It is the policy of Orange County to provide fair and equitable treatment to all residents of
Orange County.
Purpose
To provide an administrative guide whereby the Board of Equalization and Review may fairly
and equitably exercise compromise authority.
Applicability
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Applies to all cases in which the Board of Equalization and Review may, subject to the
provisions of NCGS 105-312(k), compromise the imposition of penalties.
Procedure
1.1 Circumstances in which the Board of Equalization and Review may compromise are set out
in this section 1.1.
1.1.1 Economic Hardship. In situations in which the taxpayer has suffered economic hardship
that has severely impacted the taxpayer's ability to pay including but not limited to; a sudden
serious illness of the taxpayer or a member of the taxpayer's immediate family (parent,
spouse, or child of the taxpayer), the death of the taxpayer or a member of the taxpayer's
immediate family, a natural disaster such as a tornado, hurricane, fire, or accident that
destroyed property and records.
1.1.2 Fairness. In situations in which the taxpayer's tax payment was delayed or late either
entirely through the verifiable fault of a third party or in which a preponderance of the cause of
delay rests with a third party and not with the taxpayer.
1.1.3 Inequality. In situations in which a taxpayer in a similar or like situation received a
compromise and failure to compromise would result in a significantly unequal impact to the
taxpayer.
1.1.4 Special Circumstances. Circumstances specific to the taxpayer that, when observed and
considered by a reasonable and uninterested person, would appear to warrant a compromise
of an otherwise appropriate penalty.
1.2 Exceptions shall be made in some situations as provided in this section.
1.2.1 Penalties that are assessed as a result of a delay in payment caused by unsuccessful
strategies engaged by the taxpayer that intentionally seek to lower the valuation of taxpayer's
property or direct the revenue outside Orange County may not be compromised.
1.3 The burden is on the taxpayer to demonstrate by competent evidence he or she meets the
requirements for one or more of the reasons for compromise listed in section 1.1.
This policy may be reviewed annually and updated as needed by the Attorney's and Tax
Administrator's Offices subject to approval by the Board of County Commissioners.
A motion was made by Commissioner Jacobs, seconded by Commissioner Rich to
adopt the policy in order to provide the Board of Equalization and Review with needed
guidance for the imposition of tax penalties.
VOTE: UNANIMOUS
Chair McKee directed John Roberts to move forward with Commissioner Jacobs'
request for information regarding the Machinery Act.
c. Recommended Uses of General Fund Unassigned Fund Balance as of June 30,
2015
The Board considered approving the recommended uses of the $2.8 million in excess
of 17% General Fund unassigned fund balance policy for: $1 million of the excess fund
balance to fund Affordable Housing Projects; and $1.8 million of the excess fund balance to be
used to fund priorities identified in the FY2016-17 budget.
Bonnie Hammersley said the purpose of this item is for direction from the BOCC on the
appropriation of the excess of unassigned fund balance.
Bonnie Hammersley said on a review of the BOCC Goals and Priorities, as well as a
review of the 2015-16 budget process, the recommendation is to direct $1 million of the excess
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fund balance to Affordable Housing Projects; and $1.8 million of the excess fund balance be
used to fund priorities identified in the FY2016-17 budget.
Commissioner Price asked if the Manager will inform the Board for what the $1.8 million
is going to be used during budget discussions.
Bonnie Hammersley said she would.
Bonnie Hammersley said if approved as recommended, staff would come back to the
BOCC with any acquisitions.
Commissioner Jacobs referred to the affordable housing funds and asked if the BOCC
will adopt a policy first before funding.
Bonnie Hammersley said yes.
Chair McKee said in the past few years, fund balance dollars have been used to pay
down Other Post Employment Benefits (OPEB). He asked if this will be done through a
regular budget allotment, moving forward, and if there will be an OPEB payment made for
2015-16.
Bonnie Hammersley said the practice has been to use some past balances to pay
down some of OPEB, and she will be recommending this again in her 2016-17 budget. She
said an irrevocable fund will be created, going forward with OPEB.
Commissioner Dorosin said he appreciated this, and the aggressive movement on
affordable housing. He said the County budget is too conservative sometimes, and he would
like to re-visit how to use the excess in future years.
Commissioner Dorosin asked if every year that an excess occurs, if this process of
allocating excess funds will occur around this time.
Bonnie Hammersley said excess is not predicted each year going forward. She said
she was directed not to have more than 17% in the fund balance, and it has been consistent in
the past few years in order for there to be this excess. She said it always better to have
excess than be in the red.
Bonnie Hammersley said the 2016-17 budget is a bit more aggressive, and there may
not be excess funds next year.
A motion was made by Commissioner Rich, seconded by Commissioner Burroughs for
the Board to approve the recommended uses of the $2.8 million in excess of 17% General
Fund unassigned fund balance policy for:
• $1 million of the excess fund balance to fund Affordable Housing Projects; and
• $1.8 million of the excess fund balance to be used to fund priorities identified in the
FY2016-17 budget.
VOTE: UNANIMOUS
8. Reports
NONE
9. County Manager's Report
Bonnie Hammersley reminded the Board that April 26th will be a joint meeting with the
schools.
Bonnie Hammersley said at the May 5th regular meeting, she will be presenting the
2016-17 budget. She said the Board will receive the budget document that evening, instead of
in advance, as done in previous years. She said the process has been moved up two weeks
this year.
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10. County Attorney's Report
John Roberts referred to Commissioner Jacobs' request about a living wage for
vendors, saying he reviewed the minutes from a past meeting and found there was no
directive given when the topic was last discussed. He said the County could have a policy to
encourage a living wage be paid for all contracts. He said there are existing limitations, and
may be more limitations as a result of HB2.
Chair McKee said he will be asking for a closed session at the end of the meeting.
11. Appointments
a. Animal Services Hearing Panel Pool —Appointments
The Board considered making appointments to the Animal Services Hearing Panel
Pool.
John Roberts reminded the Board that when it created this hearing panel, the Board
wanted it to be quasi-judicial. He said several of these applicants state in their applications
that they desire these positions in order to advocate for animals, and as a result his staff is
concerned whether these applicants can be impartial.
Commissioner Pelissier said she had concerns about the same thing. She said there
are no applicants to fill the public health, public safety, and veterinarian positions. She said
Animal Services has reached out to try and drum up more applicants. She said it is important
to wait on the convening of this panel until all the desired positions are filled. She said variety
on this panel is important.
John Roberts said it is difficult to garner applicants for these positions. He said if a
hearing needed to be held, the plan is to draw members from the Animal Services Advisory
Board, but he is unsure if this plan would stand up to an appeal.
Commissioner Burroughs said she asked Bob Marotto, Director of Animal Services, at
the time this panel was created, if it would difficult to garner applicants, and he said, "we'll
see".
Commissioner Burroughs said the plan for this hearing panel may need to be revisited
at some point. She said this is the only vote she has second-guessed in her time as a
Commissioner.
Commissioner Dorosin said it is unrealistic to think that people volunteering for this
panel would not be animal advocates. He said he appreciates the Attorney's concerns, but he
does not share them. He said the proposal strikes a good balance, and he believes the Board
is doing the right thing.
A motion was made by Commissioner Dorosin, seconded by Commissioner Price to
appoint the following to the Animal Services Hearing Panel Pool:
• Hannah Abernathy to Position #1--- "At-Large Town of Carrboro" position expiring
03/31/2017.
• Katie Rosier to Position #2--- "At-Large Town of Carrboro" position expiring
03/31/2018.
• Bartholomew Barker to Position #5--- "At-Large Town of Hillsborough" position
expiring 03/31/2018
• Joy Preslar to Position #9--- "At-Large" position expiring 03/31/2019.
• Edmund Tiryakian to Position #10--- "At-Large" position expiring 03/31/2017.
VOTE: UNANIMOUS
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b. Economic Development Advisory Board —Appointment
The Board considered making an appointment to the Economic Development Advisory
Board.
A motion was made by Chair McKee, seconded by Commissioner Rich to appoint the
following to the Economic Development Advisory Board:
• Appointment to a first full term (Position #8) "Core Business Community" for John
Anderson expiring 06/30/2018.
VOTE: UNANIMOUS
c. Historic Preservation Commission —Appointments
The Board considered making appointments to the Historic Preservation Board.
A motion was made by Commissioner Rich, seconded by Commissioner Price to
appoint the following to the Historic Preservation Board:
• Appointment to a second full term (Position #5) "At-Large" for Dr. Robert Ireland
expiring
03/31/2019.
• Appointment to a first full term (Position #6) "At-Large" for Art Menius expiring
03/31/2016.
• Appointment to second full term (Position #7) "At-Large" for Susan Ballard expiring
03/31/2019.
VOTE: UNANIMOUS
d. Nursing Home Community Advisory Committee —Appointments
The Board considered making appointments to the Nursing Home Community Advisory
Committee.
A motion was made by Commissioner Price, seconded by Commissioner Rich to
appoint the following to the Nursing Home Community Advisory Committee:
• Appointment to a full term (Position #6) "At-Large" position for Ed Flowers expiring
03/31/2019.
VOTE: UNANIMOUS
e. Orange County Parks and Recreation Council —Appointments
The Board considered making appointments to the Orange County Parks and
Recreation Council.
A motion was made by Commissioner Rich seconded by Commissioner Burroughs to
appoint the following to the Orange County Parks and Recreation Council:
• Appointment to a first full term (Position #2) "Hillsborough Township" for John Greeson
expiring 03/31/2019.
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• Appointment to a first full term (Position #12) "At-Large" for Dr. Thomas Rhodes
expiring
03/31/2019.
VOTE: UNANIMOUS
12. Board Comments
Commissioner Pelissier had no comments.
Commissioner Price attended the North Carolina Tomorrow 2016 Summit, and it was a
good conference.
Commissioner Dorosin had no comments.
Commissioner Jacobs said he would like to congratulate the Department on Aging for
winning another outreach award related to Mandarin speaking seniors.
Commissioner Jacobs said this is National Animal Care and Control Appreciation
Week.
Commissioner Jacobs said he attended a meeting where the Fire Marshal met with
citizens who were upset about a fireworks display last year. He said about two dozen people
attended at the Orange Grove Fire Station. He said the Marshal explained the evening in
question had unusual atmospheric conditions, and those in attendance asked if the types of
fireworks used could be reviewed. He said the Fire Marshal agreed to look in to the question,
which seemed to satisfy the public.
Commissioner Jacobs said he attended the Democratic convention, and the word
environment was never mentioned.
Commissioner Rich said she and Chair McKee met with the Dogwood Acres neighbors
about safety on Smith Level Road. She said next steps were determined, and she and Chair
McKee will work on this. She said the neighbors seemed appreciative.
Commissioner Burroughs said she had no comments.
Chair McKee referred to Commissioner Rich's comments about the Dogwood Acres
meeting, and said he talked with the Sheriff, who committed to increase patrolling in that area.
He said increased patrolling has helped control speeding in the past. He said the Department
of Transportation will trim the growth in the area, which can obstruct sight.
Chair McKee said he attended the Livestock Show last week, which is more diverse
and inclusive than ever before. He said it is a wonderful event, which all should attend.
13. Information Items
• April 5, 2016 BOCC Meeting Follow-up Actions List
• Memorandum - Solid Waste Department Awarded Year-long Interns from UNC's
Department of Health Behavior for 2016-17
• BOCC Chair Letter Regarding Petitions from April 5, 2016 Regular Meeting
14. Closed Session —Added to the agenda.
A motion was made by Commissioner Dorosin, seconded by Commissioner Rich to go
into closed session at 9:09 p.m. for the purpose of:
§ 143-318.11(a)(3) To consult with an attorney employed or retained by the public body in
order to preserve the attorney-client privilege between the attorney and the public body.
VOTE: UNANIMOUS
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RECONVENE INTO REGULAR SESSION
A motion was made by Commissioner Price, seconded by Commissioner Rich to
reconvene back into regular session at 9:35 p.m.
VOTE: UNANIMOUS
15. Adjournment
A motion was made by Commissioner Price, seconded by Commissioner Rich to
adjourn the meeting at 9:35 p.m.
VOTE: UNANIMOUS
Donna Baker, Clerk to the Board
Earl McKee, Chair
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