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HomeMy WebLinkAboutMinutes 11-01-2016 1 APPROVED 12/13/2016 MINUTES BOARD OF COMMISSIONERS REGULAR MEETING November 1, 2016 7:00 p.m. The Orange County Board of Commissioners met in regular session on Tuesday, November 1, 2016 at 7:00 p.m. at the Whitted Building in Hillsborough, 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 County Manager Travis Myren and Deputy Clerk to the Board David Hunt (All other staff members will be identified appropriately below) Chair McKee called the meeting to order at 7:00 p.m. Chair McKee said Bonnie Hammersley, Director of Economic Development, Steve Brantley, and he met with the President of Morinaga on October 31St. He presented the Board with a gift from Morinaga, which were two brass Saki cups. 1. Additions or Changes to the Agenda Need a motion to add a closed session: § 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, which privilege is hereby acknowledged. A motion was made by Commissioner Burroughs, seconded by Commissioner Pelissier to add a closed session to the agenda. VOTE: UNANIMOUS Chair McKee noted the following items at the Commissioners' places: -white sheet: additional information from a speaker regarding a topic not in the regular agenda -white sheet: PowerPoint for item 5-a -white sheet: PowerPoint for item 5-b -white sheet: Attachment 1 for item 7-a - green sheet: Attachment 4 for Item 7-a -white sheet: PowerPoint for item 7-a -white sheet: PowerPoint for item 8-a -white sheet: PowerPoint for item 8-b PUBLIC CHARGE Chair McKee dispensed with the reading of the Public Charge. 2. Public Comments 2 a. Matters not on the agenda Indira Everett, said she is from Duke Energy, where she is the District Manager of Government & Community Relations for Chatham, Durham, Lee and Orange Counties. She said she wanted to visit each of the local governments to introduce herself formally and to thank the Board for their service. She said Hurricane Matthew was a challenge, and she distributed two handouts to the Board in reference to emergency preparation and information about the process of power restoration after a weather emergency. Lisa Fischbect, Episcopal Priest with the Episcopal Church of the Advocate in Chapel Hill, said she is here representing Peewee Homes Collaborative, which is a collaborative effort to provide affordable housing. She said this group is transcending usual work and cooperation lines, by bringing together a church, the Town of Chapel Hill, non-profits, architects, a carpenter, and contractors to find affordable housing for people who are at 30% of the average median income in the County. She said the success of this project will be based not only on the collaborations that form, but also the replication of this project elsewhere. She said the church where she serves has 15 acres of land, which it intends to use to house three of these tiny homes as the first project for this collaborative. Sarah Howell, Architect, provided the Board with the preliminary designs for the prototypes for the tiny homes in the Peewee homes project. She said the homes range in size from 250-320 square feet. She said these homes are targeted to house one individual who may be elderly, or on a fixed income. She said there are both handicap accessible and standard floor plan options. She said the first three houses will be built on the Church of the Advocate land, and should be built for $41,500 for the larger prototype, and $31,500 for the smaller. She said these will be permanent structures. She said that the Town of Chapel Hill has given a grant of$70,000 to this project. Commissioner Price asked if these homes would be for sale or rent. Sarah Howell said the homes would be for rent, for 30% of the individual's income, and 15% of the rental income will go into a savings account for the renter. Commissioner Jacobs asked if this information is simply a presentation, or is this organization asking for funding. Lisa Fischbect said the process to apply for funding is not yet known, but there was a desire to make the Board aware of the project. She said any advice or guidance would be welcomed. Commissioner Jacobs said the Board would refer this to the County Manager. Chair McKee said when housing is discussed later on the agenda, there will be an opportunity to speak Commissioner Dorosin said funds were received from Chapel Hill, and asked if there are any other income sources. Lisa Fischbect said approximately $150,000 is needed, and multiple grants are being pursued. She said County funds would be wonderful. Commissioner Dorosin said he appreciated this idea and especially likes the use of church land. Commissioner Rich advised the Collaborative to have discussions with the Town of Chapel Hill about waiving permit fees. b. Matters on the Printed Agenda (These matters will be considered when the Board addresses that item on the agenda below.) 3 3. Announcements and Petitions by Board Members Commissioner Burroughs had no announcements or petitions. Commissioner Jacobs said he would like to petition the Board for the County to pursue establishing a joint planning group with Carrboro to review/plan development on Carrboro's western border. Commissioner Pelissier petitioned the Board to establish some format for Board members who attend conferences to provide follow-up informational reports to other Board members. She attended the Go Triangle Board meeting, and all attendees are required to do a report of what was discussed and learned. She said the public needs to understand the value of the Board attending conferences and meetings, and that if Board members attend meetings/conferences, they should come back and report to the Board what they learned, etc. Commissioner Dorosin had no announcements or petitions. Commissioner Rich said she attended the policing forum in Chapel Hill last week, and learned if there is a complaint about a Sheriff's Deputy, one can go online and file a complaint. She petitioned the Board for Community Relations to work with the Sheriff's Office to make the online complaint feature more visible. Commissioner Rich petitioned the Board for staff to review the opportunities to plan for solar pre-wiring of all new buildings as a standard feature, including contacting the Town of Apex, and others, about their efforts. Commissioner Rich said she has received feedback regarding early poling stations, and the desire for all early voting sites to have the same hours. She said different hours at different sites have led to confusion. Commissioner Rich said she attended the Lincoln Center anniversary of desegregation and wondered why the County was not officially represented. Chair McKee said he was unaware of the event, and would have a conversation with the Chair of the Chapel Hill-Carrboro City Schools (CHCCS) about public invitations to elected officials going forward. Commissioner Rich said she and Commissioner Price were on a list serve for the Lincoln Center. Commissioner Jacobs petitioned that the County Public Affairs Officer meet with both school systems' Public Information Officers (PIO) to help ensure that County and Board members are aware of all school events and ceremonies to encourage friendly and courteous interactions. Commissioner Rich asked if the County would consider issuing a proclamation for this significant anniversary. Chair McKee directed staff to draw up a proclamation in reference to this anniversary. Commissioner Price said the same anniversary for Orange County Schools will occur in two years, and the County should be better prepared to mark this occasion. Commissioner Rich said the panel discussion at the celebration was very informative. Commissioner Price petitioned the Board to consider her submission of a Resolution to support the Equal Rights Amendment. She said the City of Durham has passed a similar resolution. She said this amendment seeks to guarantee equal treatment for women in the Constitution. Commissioner Price said her other petition was in reference to My Brother's Keeper, who submitted a report last spring on its progress as requested by the Board of County Commissioners (BOCC). She petitioned the Board to consider recognizing/approving Movement for Youth as the lead agency for My Brother's Keeper. She requested a presentation at the Board's next meeting. 4 Commissioner Price thanked a class for recently asking her to come and speak on voting. Commissioner Price said Representative Paul Lucke passed away on Saturday. Chair McKee said he would like to brag about his stepson, Robert Moore, who recently competed in the Ironman Triathlon in Wilmington. 4. Proclamations/ Resolutions/ Special Presentations NONE 5. Public Hearings a. Unified Development Ordinance (UDO) Amendments — Hillsborough Economic Development District The Board conducted a continued public hearing, reviewed revisions incorporated in response to comments made at the September 12 Quarterly Public Hearing, including drive- thrus, and considered action on government-initiated amendments to the text of the UDO that would modify some development standards, types of permitted uses, and use standards within the Hillsborough Economic Development District (EDD) and which would revise the Manufacturing, Assembly & Processing sections of the Table of Permitted Uses - General Use Zoning Districts and Conditional Zoning Districts. Perdita Holtz, Orange County Planning, made the following PowerPoint presentation: UDO Amendments - Hillsborough Economic Development District (EDD) Board of County Commissioners Meeting November 1, 2016 Item 5-a Presenter: Perdita Holtz, AICP Refresher on Overview • Modify some development standards • Revisions to types of permitted uses • Amendments to some use-specific standards • [presented more in-depth at the quarterly public hearing] Purpose of Amendments • County is currently working on plans to extend water and sewer infrastructure to parcels south of Interstate 40. • Desire to better promote economic development opportunities, especially high-tech research and development/manufacturing. o By-right approvals important to enhance competitiveness during site selection process. • Site selection specialists send detailed questionnaires to potential communities. • Used to weed out communities that don't have sites ready-to-go. • Continued interest to simplify and shorten review processes, where feasible. • Ensure standards are in place to promote development that will have minimal impacts on surrounding properties. Recent History 5 • Heard at September 12 quarterly public hearing • Revised as a result of comments o Allow drive-throughs in each of the EDH zoning districts o Remove certain manufacturing uses from consideration • Required modifications to the Tables of Permitted Uses for the General Use and Conditional zoning districts • Planning Board reviewed revised package at October 17 special meeting o Recommended approval Uses Removed after QPH • Animal Food Manufacturing (3111) • Grain and Oilseed Milling (3112) • Animal Slaughtering & Processing (3116) • Seafood Product Preparation & Processing (3117) • Tobacco Manufacturing (3122) • Leather & Hide Tanning & Finishing (3161) • Sawmills and Wood Preservation (3211) • Veneer, Plywood, and Engineered Wood Product Manufacturing (3212) • Pulp, Paper, and Paperboard Mills (3221) • Petroleum and Coal Products Manufacturing (324) • Basic Chemical Manufacturing (3251) • Resin, Synthetic Rubber, and Artificial Synthetic Fibers and Filaments (3252) • Pesticide, Fertilizer, and Other Agricultural Chemical Manufacturing (3253) • Paint, Coating, and Adhesive Manufacturing (3255) • Other Chemical Product and Preparation Manufacturing (3259) • Uses Removed after QPH (cont.) • Tire Manufacturing (32621) • Cement and Concrete Product Manufacturing (3273) • Lime and Gypsum Product Manufacturing (3274) • Primary Metal Manufacturing (331) • Forging and Stamping (3321) • Small Arms Ammunition Manufacturing (332992) • Ammunition (except Small Arms) Manufacturing (332993) • Small Arms, Ordnance, and Ordnance Accessories Manufacturing (332994) • Motor Vehicle Manufacturing (3361) • Motor Vehicle Body and Trailer Manufacturing (3362) • Railroad Rolling Stock Manufacturing (3365) • Ship and Boat Building (3366) • Military Armored Vehicle, Tank, and Tank Component Manufacturing (336992) Reminder Regarding Existing Standards • UDO contains a myriad of standards in place to lessen any impacts/mitigate impacts of development. o Use-specific standards in Article 5 o General standards (applies to all development) in Article 6. o Examples — Performance Standards: • Electrical Disturbance or Interference (Sec. 6.4.2) • Noise (Sec. 6.4.3) 6 • Vibration (Sec. 6.4.4) • Air Pollution (Sec. 6.4.5) • Disposal of Liquid Wastes (Sec. 6.4.6) • Hazardous Materials (Sec. 6.4.7) • Utilities (including water use limitations; any use projected to require more than 30,000 gallons per day cannot be permitted by-right) (Sec. 6.4.8) • Solid Waste (Sec. 6.4.9) • Service & Outdoor Storage (Sec. 6.4.10) o Architectural Design Standards (Sec. 6.5.1) o Landscaping, Buffers & Tree Protection (Sec. 6.8) o Parking, Loading & Circulation (Sec. 6.9) o Outdoor Lighting (Sec. 6.11) o Signs (Sec. 6.12) o Stream Buffers, Stormwater Management, and Soil Erosion & Sedimentation Control (Sec. 6.13 to 6.15) o Traffic Impact Analysis (Sec. 6.17) Recommendation for Tonight 1. Conduct the continued public hearing and accept comment on the proposed amendments; 2. Close the public hearing; 3. Deliberate on the petition as desired; and 4. Decide on one of the following options: a. Adopt the proposed amendments by approving the Statement of Consistency (Attachment 2) and Ordinance (Attachment 3); b. Defer a decision to a later BOCC regular meeting date; c. Refer the item back to the Planning Board for a specific purpose; Deny the proposed amendments. (Note: Section 2.2.8 Effect of Denial on Subsequent Applications of the UDO states that no application for the same or similar amendment may be submitted for a period of one year. The one-year period begins on the date of denial.) Planning Board member Tony Blake said he had nothing to add. Chris Cole, Orange County resident, said he spoke at the previous Quarterly Public Hearing (QPH), and thanked the Board for making these changes. He said this is a huge step in the right direction. He said he is a certified public accountant, and his familiar with this area. He suggested the removal of four more items from the list of permitted uses: 3169, 3219, 3261, and 3262. Commissioner Jacobs said he appreciated the Planning Board members being present. Commissioner Jacobs said he does not understand some of the list of permitted uses. He referred to page 84, and asked planning staff if Emergency Services has reviewed this list, which includes some highly flammable items. He said he also has concerns about Polystyrene Foam products. Commissioner Jacobs said he also does not known what some of these products are, and he is uncomfortable approving anything until he is better informed. Commissioner Jacobs suggested giving the BOCC a week to review/pull items that they do not understand or do not want on this list. He said this all relates to item 6e, the North American Industry Classification System (NAICS), about which he has no understanding. 7 Commissioner Price referred to the list on page 84, and asked Commissioner Jacobs if his concerns are that these items will be included. Commissioner Jacobs said this is his question, and he is unclear. Perdita Holtz said the NAICS is how the Hillsborough EDD was set up in the early 2000s. She said these codes were set up as the use codes. She said item 6-e has to do with a complete overhaul of the tables of permitted uses, in response to the Bird vs. Franklin County court case. She said legal staff would prefer that the County start using the NAICS code as the basis for the table of permitted uses, as it is all-inclusive on all types of uses. She said that is a large project, requiring work sessions with both the Planning Board and the BOCC. She said page 84 is sector 42 of the NAICS code, which is suggested for inclusion in EDH5 zoning districts. She said staff was specifically told, at the QPH, to look at the manufacturing sectors, which is not sector 42. Commissioner Jacobs asked if the NAICS code supersedes existing County policy. Perdita Holtz said NAICS is using that code to determine use. She said the court case has made it necessary to list prohibitive uses, as well as permitted ones. Commissioner Jacobs asked if this is required moving forward. Perdita Holtz said yes. She said this would also be true for the NAICS manufacturing code now, if the Board adopts this amendment. Commissioner Jacobs said he thought the Board would have an opportunity to go through all of the uses, not only manufacturing. Perdita Holtz said this may have been a misunderstanding. Commissioner Price asked if hotels will be permitted. Perdita Holtz said yes. Commissioner Price said the Town of Hillsborough had some questions, and asked if these have been resolved. Perdita Holtz said she did not recall any questions from Hillsborough. Discussion ensued, and all issues have been resolved. Commissioner Rich said she is confused about how this proposed amendment ties in with the future requirements from the Bird vs. Franklin County court case. Perdita Holtz said these actions would be in compliance with the judicial decision, and later there will be an expansion to different areas of the permitted use tables that are not being discussed this evening. Commissioner Dorosin said the Hillsborough EDD was ahead of the lawsuit, and now the rest of the UDO will have to catch up. Commissioner Rich said she shared Commissioner Jacobs' concern about reviewing the list fully, and that the Board needs to have that conversation. Commissioner Dorosin suggested taking Commissioner Jacobs' proposal to allow BOCC members to review/pull items of concern, and have staff explain. Commissioner Price referred to page 29, where there is a table on the permitted uses. She asked if staff is suggesting removing the whole section on manufacturing, assembly and processing, and starting over. Perdita Holtz said the recommendation is to remove the existing section, and replace it with the new NAICS code section. Commissioner Jacobs said he cannot find the Commissioners resolution or motion in the abstract. Perdita Holtz said the QPH minutes were not available when this draft abstract was submitted to the Manager's office. Commissioner Jacobs said if the original motion was restricted to manufacturing, he feels that was a mistake. He said the list is helpful, but it may be useful to have the same chart, but in alphabetical order. 8 Chair McKee asked if this sequencing is consistent with the NAICS code. Perdita Holtz said yes. Craig Benedict, Orange County Planning Director, said hopefully this information will be available electronically, and then could be traced either way. Craig Benedict referred to page 5-8, and said the existing code was too vague. He said permitted and prohibited items need to be more specific. He said there will hopefully be an opportunity, at a future work session, to vote on each item. Chair McKee asked if this amendment were to be passed tonight, would the County be locked in. He said there are many more steps before water and sewer can be expanded, and he would not be comfortable with a 2 — 6 month delay. Perdita Holtz said changes can be made at any time, via the usual amendment process. She said there are other things that can continue to happen, while these items are being hashed out. Chair McKee said if the Board can continue this process and answer all its questions, he would be in agreement with a short delay. He said each Commissioner should submit any questions and concerns, address them in the near future, and move on with the process. Commissioner Jacobs said he agrees with Chair McKee, and this item should come back at a December meeting. Chair McKee asked staff if this timeframe is acceptable. Perdita Holtz said this timeframe would be possible as long as the Commissioners have any questions submitted in a week. Chair McKee said the Board can move quickly. Commissioner Pelissier asked if staff would exclude a permitted use if only one Board member wanted to exclude. Commissioner Dorosin suggested all Commissioners send in their list, and if four or more agree to remove a use, then staff should remove it from the listing. He said if there are three or less votes to remove an item, the Board should review and vote on each. Commissioner Price asked if the Board is reviewing the multicolor lists or the NAICS list. Chair McKee said it is his understanding that the Board will receive a list of deleted items from the 70 pages of numbered items; the NAICS codes. Commissioner Price asked if the decisions will pertain to the Hillsborough EDD. Perdita Holtz said the outcome will have to be included in the tables of permitted uses, but staff can send the Board a list of the sector numbers that are in the EDDs, to make things easier. Commissioner Rich asked if staff will provide a list. Perdita Holtz said yes. John Roberts said the BOCC is able to send it back to the Planning Board with instructions. Chair McKee said it is now on the Board's table, and he believes the Board should go through the list. Commissioner Rich clarified that the Commissioners will review a list, and then provide any input or questions back to staff within a week. Perdita Holtz said she would provide the Board with the list by tomorrow morning. John Roberts said staff counting votes outside of a public meeting would be a violation of the Open Meetings law. A motion was made by Commissioner Dorosin, seconded by Commissioner Rich to delay action on this item and continue the public hearing to the December 5th BOCC meeting; staff will provide the NAICS list to the BOCC; the Board will review and respond by Tuesday of 9 next week (Nov. 8th) with any NAICS listed uses that the Board would like prohibited in the Hillsborough EDD; staff will collect data and the BOCC will make all decisions in an open meeting. VOTE: UNANIMOUS Commissioner Price referred to food services being prohibited on page 56, and asked if something like Caribou Coffee would be allowed in the EDD. Perdita Holtz said this could not be a stand-alone building, but would need to be part a site plan. Chris Cole asked if he could be notified by email, because he was not for this meeting. Staff said yes. b. Zoning Atlas Amendment— Hillsborough Economic Development District The Board opened a continued public hearing and considered action on government- initiated amendments to the Zoning Atlas involving five parcels south of Interstate 40 in the vicinity of Old Highway 86 and adjacent interstate right-of-way. A motion was made by Commissioner Dorosin, seconded by Commissioner Price to continue this public hearing to the December 5th meeting. VOTE: UNANIMOUS 6. Consent Agenda • Removal of Any Items from Consent Agenda None • Approval of Remaining Consent Agenda A motion was made by Commissioner Burroughs, seconded by Commissioner Pelissier to approve the items on the Consent Agenda. VOTE: UNANIMOUS • Discussion and Approval of the Items Removed from the Consent Agenda a. Minutes The Board approved the minutes from September 15, 2016 as submitted by the Clerk to the Board. b. Motor Vehicle Property Tax Releases/Refunds The Board adopted a resolution, which is incorporated by reference, to release motor vehicle property tax values for two taxpayers with a total of two bills that will result in a reduction of revenue in accordance with NCGS. c. Property Tax Releases/Refunds The Board adopted a resolution, which is incorporated by reference, to release property tax values for five taxpayers with a total of eleven bills that will result in a reduction of revenue in accordance with North Carolina General Statute 105-381. d. Applications for Property Tax Exemption/Exclusion 10 The Board considered nine untimely applications for exemption/exclusion from ad valorem taxation for nine bills for the 2016 tax year. e. Unified Development Ordinance (UDO) Amendment Outline Form and Schedule for Proposed Text Amendment— Tables of Permitted Uses The Board approved revised process components and schedules for a Planning Director initiated Unified Development Ordinance (UDO) text amendment. f. Dedication of Stormwater Control Structure Easement for Fairview Park Parking Area Expansion Project The Board approved a dedication of the Stormwater Facility Easement built to service the Parking Expansion Project at Fairview Park as presented, upon final review of the County Attorney, and authorized the Chair to sign. 7. Regular Agenda a. County Assisted Affordable Housing Income Targets and Project Scoring Criteria The Board considered approving the income targets and proposed scoring criteria for affordable housing projects as part of the Proposed Orange County FY 2016- 2020 Affordable Housing Strategic Plan. Travis Myren made the following PowerPoint presentation: Affordable Housing Unit Allocations and Scoring Criteria for County Assisted Units Board of Orange County Commissioners November 1, 2016 Unit Allocation — Option #1 (chart) • Broadened application from "Bond Funds" to "County Funds" • Maintains the 250 unit cap for all income levels Unit Allocation — Option #2 • Broadened application from "Bond Funds" to "County Funds" • Maintains 250 unit cap for >50% to <80% of Area Median Income (AMI) only • Emphasizes the need to create units for incomes under 50% AMI and special needs populations Unit Allocation — Option #3 • Broadened application from "Bond Funds" to "County Funds" • Input from Affordable Housing Coalition • Allocates amount of funds rather than number of units in each category • Changes income ranges to include 60% of Area Median Income to be consistent with tax credit project guidelines • Adds homeowner option to the <30% to < 60% Area Median Income category Draft Project Scoring Matrix • Broadened application from "Bond Funds" to "County Funds" • Increased points (5 total) for accessibility, water and sewer service, and access to transit • Reduced points (5 total) for Community Sponsorship/Support to balance 11 • Included a financial model that demonstrates a financial sustainability over time to the Project Feasibility section The following emails were sent to Travis Myren, from Housing Providers, in reference to comments on this issue. The emails were shared with the Board prior to meeting: Susan Levy, Habitat for Humanity I agree with all of the comments below. Speaking on behalf of Habitat, I would agree that some degree of flexibility is necessary, and that the 60% of AMI cut off makes more sense than the 50% of AMI, both to accommodate LIHTC projects, and also because Habitat serves 30-60% of AMI, and we wouldn't want to have to limit all of our projects to 30-50% of AMI in order to qualify for funding. On average, we serve folks at the 45% of AMI, so maybe approaching the incomes served for a particular project based on the average of incomes served, rather than having a cutoff that would eliminate serving those at 50-60% of AMI, would make more sense. Maggie West, CEF I agree with Robert's point/ $ breakdown for placing an emphasis in the resource limits on projects that serve the lower-income AMI categories, and functionally prioritizing the bond resources towards those categories. In terms of the potential double-counting issue, I don't see that becoming a real issue so long as the special populations served also are designated as populations earning below 80% AMI. I would imagine that designating specific funds to go towards projects serving special populations would allow the commissioners some discretion as they approve projects in determining which category to "count" a project towards, based on what they know about additional projects coming down the pipeline and other resources that they will hopefully continue to create to make this small pie (as Dan aptly called it) bigger in order to meet the county's broader needs! Dan Levine, Self-Help Real Estate All good points below. One specific thing I'd add is that it would be wise to have 60% AMI as cut off rather than 50%, given that it'd align with LIHTC project income limits. More broadly speaking, my instinct is that it certainly makes sense to emphasize priority groups... but we want to maintain flexibility so that we don't run short of dollars for projects based on whatever opportunities emerge, since we're dividing a fairly small pie into multiple slivers. Seems like dividing this pie by too much risks leaving money on the table that could be effectively deployed. I'm curious to hear others thoughts on this. Allan Rosen, IFC I agree with Robert in the basics. As for the proportions amongst the four categories that can be further discussed out, as well as how to handle possible double counting of special needs projects that also meet AMI goals. Also, there is a near precedent for this. I don't remember all the details, but when one of the latter RFPs for the earlier bonds was released the county's affordable housing advisory board recommended a $ set aside, perhaps $1 million, for general population affordable rentals since 12 those projects were consistently scoring lower than projects that earned points with special needs attributes. Robert Dowling, Community Home Trust I think Travis is correct. If 100 apartments affordable below 50% AMI each require $50,000 of bond funds, the $5MM is gone. The BOCC talked about limiting the amount spent in each category when they last talked about this. If they go in that direction, I think more funds should be allocated at the lower income categories. For example: $1.5MM for Oto30% AMI $1.5 MM for 30 to 50% AMI $1 MM for special needs $1 MM for 50 to 80% AMI The special needs category may get captured in the two lower income categories, so that category should not get short-changed. Targeting Matrix Discussion: Commissioner Jacobs asked if there is a recommendation from the Affordable Housing Advisory Board. Audrey Spencer-Horsley said this Advisory Board has yet to receive the most recent options. She said this Board has primarily expressed an interest on focusing on housing for the lowest income groups. Commissioner Jacobs asked if these documents specify that these housing units are for Orange County residents only. Audrey Spencer-Horsely said no. Commissioner Jacobs said he feels these units should be for existing Orange County residents, not for people who move into the County because the units are available. Commissioner Price said that conversation has come up before, and there may be people who were Orange County residents, and moved away due to lack of housing, but may now want to come back. Commissioner Burroughs asked if such limitation is legal to do. John Roberts said he would not recommend such a restriction, as it likely violates constitutional equal protection. Commissioner Jacobs asked if anybody in North Carolina can move into these units. John Roberts said yes. He said there may be a way to create some program that assists current residents in order to get a jump-start on the process. He said specific restriction policies would not be possible. Commissioner Pelissier said there are people who work in Orange County, but live outside of it. She said the only special needs population that has even been addressed through affordable housing is seniors. She said special needs populations are likely quite tied to Orange County, via services, etc., and this should be kept in mind. Commissioner Dorosin clarified that the first option is capping every category identically; the second option is no caps, with the exception of the 50-80%; and the third option is going back to everything having caps, but by percent of funds. He asked if it would be best to have no caps in 0-30% and 30-60%, and the cap in the 50-80% being by percent of funds. He said this would be a hybrid of options two and three. Commissioner Dorosin referred to the emails from housing providers, noting that Robert Dowling suggested even less of a cap for the 50-80%. 13 Commissioner Burroughs said she will second Commissioner Dorosin's motion when it is made, and agrees with Robert Dowling as well. She referred to the issue of older adults and seniors, saying she would prefer to focus on those of the lowest income in this population. She asked if this is addressed in the scoring. Audrey Spencer-Horsley said it does get addressed in the scoring. Commissioner Dorosin said he is comfortable with this. Commissioner Rich asked if it is 50 to 80, or 60 to 80%. Travis Myren said Commissioner Dorosin suggested 60%. Commissioner Rich said she still sees a strong need for workforce housing, and would not want to drop lower in the 50-80%. She said changes can be made if necessary as things unfold. Commissioner Price said she agreed with focusing on the 0-60%, and getting rid of the caps. She asked if it known how much will be given for each unit. Audrey Spencer-Horsley said that almost all of the projects have other funding. She said the applicants or non-profits leverage these funds. She said there is also the urgent repair program, state tax credit program, other municipalities, etc. Commissioner Dorosin said no cap, no cap, 20%, no cap. Chair McKee said the goal is 1,000 units. He said the money will not stretch to 1,000 units, and the wording may need to change to "up to 1,000 units." Audrey Spencer-Horsley said the goal may be more attainable than expected. Commissioner Price said she votes strongly in favor of no caps. Chair McKee said he would like to try to favor the residents of Orange County, within I the limits before the Board. John Roberts said there may be a way to do that through the Housing Authority Board. Commissioner Jacobs asked if a certain point total could be added to the matrix for projects that offer housing to residents of Orange County or those who work in Orange County. John Roberts said that may be possible. Commissioner Dorosin said to check if that is legal for the providers to do. Chair McKee said he is not suggesting doing anything at this time, but it would be good as a driving thought for further discussion. John Roberts said he can look into that option, and thinks the Housing Authority may have federal authority to do something along those lines. Commissioner Jacobs said his basic concern is to address the needs of the residents of Orange County, and those who work here. He said there is such a vacuum at the State and Federal level, and the County's work may end up be subsumed by the needs of millions, if care is not taken to avoid it. Delores Bailey, Affordable Housing Provider, said the Board's intention is good, but she is sensitive to those who use to live in Orange County and were priced out. She said she is unsure of how to undo this reality and bring these people back to Orange County. She said a homeless person has no address, so their residency is unclear. She said the whole topic binds her up. Commissioner Jacobs asked if Delores Bailey would feel more comfortable if the wording addressed those who work, reside or have resided in Orange County. Delores Bailey said that adds another level of fact checking into the process. She said she has great interest in those who work in Orange County but have to live elsewhere. Commissioner Burroughs said, to some extent, the County is already in the vacuum described by Commissioner Jacobs. She asked if people are already moving in from other states to secure affordable housing. 14 Delores Bailey said yes, for homeownership. She said it is less so for rentals, as there are so many people locally seeking affordable rental housing. She said removing the caps is fantastic. Commissioner Rich referred to her comment about keeping the 60-80% at 20%, as suggested by Robert Dowling, and said he also suggested that the special needs be lowered as that population may fall into other categories. Chair McKee asked if a person was accounted for in the special needs category, would that person also be counted in the 0-30% or 30-60%. Audrey Spencer-Horsely said no, that person would not be double counted. Commissioner Burroughs said a project has a higher chance of success if it is low- income seniors. She said in the scoring one is weighted, and the odds of success are higher. Commissioner Rich said she may be getting too detailed. Chair McKee said the details are important. Commissioner Rich asked if there was a person with special needs, and who was also low income, where would that person be counted. Travis Myren said that person would be counted in special needs, for the purposes of unit counting; but in looking at the scoring matrix, there are more points given for serving populations that fit multiple categories. He said it is like getting bonus points. Commissioner Burroughs said people are not being counted, rather projects. Audrey Spencer-Horsley said all projects indicate who is trying to be served. A motion was made by Commissioner Dorosin, seconded by Commissioner Burroughs to adopt the targets as follows: 0-30%, no cap target units, no cap percent of funds; 30-60%, no cap target units, no cap percent of funds; 60-80%, 20% percent of funds, and no cap for special needs population. VOTE: UNANIMOUS Scoring Matrix Discussion: Commissioner Price referred to page 5 of attachment 2, and asked if daily needs could be defined. Travis Myren said this refers to a grocery store, health care, etc. Commissioner Price said access to employment is referenced, and said this may be a demerit for retiree housing. Travis Myren said employment would be just one factor. He said access to other amenities for seniors could be more heavily weighted. Commissioner Price referred to the qualifications for an entity to qualify, and asked if a person with some land who wanted to build some affordable housing would be eligible for funding. Travis Myren said any nonprofit or private developer could apply for funds. He said there must be an entity to accept the funds, not a private bank account. Commissioner Jacobs referred to the criteria E-3, and asked if the Communities Consolidated Planning Process could be explained. Audrey Spencer-Horsley said this is the annual plan for all Federal funding. She said much of the data used for the County's strategic plan came through this analysis. She said the County must have an annual plan, and every five years must complete a five-year plan in order to receive federal funding. Commissioner Jacobs asked if the Board will receive an annual report. 15 Audrey Spencer-Horsley said providing regular updates to the Board, possibly bi- annually, is one of the action items. Commissioner Jacobs asked if there is any particular desire to provide affordable housing in rural Orange County. He said this plan does not address rural areas at all, unless housing was built on a transit line or with existing water and sewer. Audrey Spencer-Horsley said that is right for larger units, but does not preclude individual units or small projects from being done. She said vacant units would be a good focus for the rehab program. Commissioner Rich referred to attachment two, and asked if the household income range will be made consistent with the changes made in the previous discussion, from 50% to 60%. Audrey Spencer-Horsely said yes. Commissioner Dorosin referred to Commissioner Jacobs' comment about rural areas, and asked if a criteria line about dispersal should be added. He said funds have been set aside for manufactured housing, and the staff has been tasked with reviewing County owned parcels that could be used for smaller affordable housing developments. He said the other thing that could be done would be to acquire other properties for the purpose of affordable housing in the rural areas. Commissioner Jacobs said he attended a meeting with rural residents where questions about affordable housing were raised. He said these residents are being asked to support the bond, and know of people in need of affordable housing, as well as those seeking to age in place. He said finding land near bus routes would meet one of the urbanized-type criteria. He said density can be increased when water and sewer are in place, but community systems should not be precluded, when designed, constructed and maintained in accordance with the designs of the utility that is responsible. He said this would offer some control to the County. Chair McKee referred to the community systems idea, and asked if additional wording could be added where projects, utilizing County-approved standards, would also score the same as project with water and sewer. Commissioner Jacobs said this would address the scoring discrepancy. Travis Myren said language that says "a community septic system, consistent with standards of the water-sewer boundary agreement" could be added. Chair McKee said the language must be carefully tailored to include Orange County regulations or water and sewer boundary agreements. He said the legal staff should be included in making this change. Commissioner Burroughs said transportation is a huge issue. She is concerned about reducing scoring as pertains to transportation, but encouraging new rural housing to be located near bus lines would alleviate some of her concerns. Commissioner Price echoed Commissioner Jacobs' comments about rural housing. She said one cannot assume that all jobs are in urban areas. She said she may rate water and sewer more highly than transportation, as bus routes can be changed. Commissioner Pelissier echoed Commissioner Burroughs' comments. She said she is not in favor of lowering the point value associated with transportation. She said the cost of housing is not just the housing, but it is transportation as well. Commissioner Price said not everyone gets on a bus to go to work. She said once homes are in place, and community developed, other services will come. Chair McKee said he tends to agree with Commissioner Price. He said it would incentivize a developer to look more closely at a rural project if the point incentive was on a community system. He said a one-point shift will not make much difference, and the Board must try to figure out a way to serve the entire County. He said he does not want there to be a public perception that only urban areas matter. 16 Audrey Spencer-Horsley referred to section C-4, number 4, and said to shift additional points there to the community systems in the rural areas. Commissioner Rich said she shares Commissioner Pelissier's concerns. She said she recalls how expensive it was to commute to New York City, such that having a job there was unattainable. She said transportation does add a substantial amount to how much money one is spending. Commissioner Dorosin said it is so much cheaper to build in the rural area, which would save money. Chair McKee asked if anyone disagreed with Audrey Spencer-Horsely's proposal. Audrey Spencer-Horsley said the community systems could be its own category in number 4. Commissioner Dorosin said he thinks the water systems go better with number 5. He said he would take a point off number 6, and give it to number 4. He said he would add the language that "additional points may be awarded for meeting aspects associated with functionality, maintenance and dispersal" to number 4. He said there will not be 20 project proposals at the same time. He said the goal is to incentivize the type of developments the County is after. A motion was made by Commissioner Dorosin, seconded by Commissioner Jacobs to approve the County Assisted Affordable housing income targets and project scoring criteria for inclusion in the Proposed 2016— 2020 Affordable Housing Strategic Plan; and to change C4 to say additional points may be awarded for meeting aspects associated with functionality, maintenance and dispersal; to change number 5 to say the project is connected to water and sewer service, or will connect to existing service, or will use a community septic system consistent with water and sewer boundary agreement and local standards; and number 6 would go from six points to five points. Chair McKee asked if the motion maker and seconder would agree to adding to number 5 the wording community well and sewer. Commissioners Dorosin and Jacobs agreed. Commissioner Price said to change the wording in B4 from daily needs to access to employment opportunities and other health and human services. Commissioner Dorosin said to have both daily needs and health and human services included. Commissioner Price agreed. Commissioner Dorosin and Jacobs accepted this change. Chair McKee said the percentages in section 8 should also be updated. VOTE: Ayes, 6; Nays, 1 (Commissioner Pelissier) John Roberts said in reference to the earlier question about restricting housing to Orange County residents, and he said it is not an equal protection issue, but rather it is a privileges and immunities issues. He said a point system may be the way to address this, or a 30-day residency requirement. Commissioner Jacobs said if the Attorney thinks it is a feasible to create some type of criteria, he would like to have this researched, brought back to the Board and added to the matrix. Chair McKee directed John Roberts to bring back options to the Board. 17 b. Reimbursement Resolution for Capital Projects and Equipment Costs The Board considered approving a Resolution providing for reimbursement of Capital Project and Equipment costs. Gary Donaldson, Chief Financial Officer, said it would be ideal to move to spring financing only. He said the benefits are cost of issuance, and being better prepared when going to the state Local Government Commission, and can insure that the projects are ready to be financed. Gary Donaldson said staff wants to come before the Board in the fall with a reimbursement resolution. He said as those projects are advance funded, through the general fund, staff will reimburse the County in the spring through the installment financing. Gary Donaldson reviewed attachment 1, the Reimbursement Resolution, and exhibit A, Project Components. Chair McKee said he recalled the Board considering an expansion for the scope or design of the detention facility. Bonnie Hammersley said the Board approved for staff to proceed, not exceeding $30,000 for the architect to look at expanding the scope of the project, and to bring the information back to the Board for final consideration. She said no approval has yet been given to expand the scope. A motion was made by Commissioner Burroughs, seconded by Commissioner Rich to approve the Reimbursement Resolution. VOTE: UNANIMOUS 8. Reports a. Family Success Alliance Budget Projections The Board received and considered a rough estimate of the Family Success Alliance budget projections for the next five years. Family Success Alliance Five-Year Budget Projections Coby Jansen Austin • BOCC Meeting • November 1, 2016 This presentation follows on the heels of Dr. Bridger's presentation at the joint meeting with the school boards a couple weeks ago. She provided an overview of the history of the Alliance and what we're doing today. But as commissioners you are already familiar with the Alliance's work and have had a direct impact on the direction this initiative has taken over the past couple years, either here in conversations among the commissioners or through your service on the Advisory Council — past or present. We are now at a place where we have mapped out our work with dozens of partners and have begun to fill some of the gaps in the cradle-to-career and college pipeline. So the purpose of this presentation is to preview the growth that we are expecting, based on our current model and Strategic Plan. And I will remind you that we have a very thorough evaluation plan that will help us make informed decisions about what programming we do and how we do it. Although I will be presenting some budget projections, these are just estimates meant to give a rough idea of the program areas where we expect there to be activity. The feedback that we are hoping to get from you is on the general direction that we are headed knowing that the 18 actual numbers will be refined during the budget process and you will have an opportunity to vet the specific request at that time. I also ask that you keep in mind that these are five-year projections, but that we are making an even longer-term commitment to these children. In five years, our first cohort of kids will be starting middle school, and our pipeline model requires that we support them until they have graduated from high school college-ready. But we need to take this one step at a time, evaluate diligently, and scale the model accordingly. And lastly, these projections assume that we will not expand the program to additional zones within the next five years, but once we understand what it will cost in our two initial zones, we will be better positioned to be opportunistic if funding becomes available to do that. Pipeline Overview This is our pipeline from cradle to college and career. Here in OC, our focus is on building the pipeline by expanding and enhancing existing supports and then filling in the gaps. Before going into the budget numbers, I am going to give an overview of the main components of the pipeline and highlight what gaps we have already identified and begun to fill. Goal 1 of our pipeline is that children are healthy and prepared for school. We heard loud and clearly during our gap analysis that families did not feel their children were ready for Kindergarten, so the first program we launched was our K Readiness summer camp, which has been evaluated by UNC and participating children are showing promising gains. There are other critical pieces in this goal area, such as quality prenatal care, access to high quality affordable childcare and pre-K, etc. In goal area #2, which is that children are healthy and succeed in school, we know that children from less affluent families are experiencing the "summer slide". This is a loss of academic gains and can be prevented by providing evidence-based, literacy-focused summer enrichment and afterschool opportunities. FSA is partnering with schools to offer this support, as well as enhance the afterschool opportunities. We are also partnering with local orgs to ensure students receive mentoring, and have ... FSA has not yet focused on goal area #3... For Goal 4, our current strategic plan includes several items, such as starting college savings accounts for FSA enrolled children. We also know there are other important supports for families and neighborhoods. Across all of the goal areas, our navigator program has helped to link families with resources and schools, but also to serve as peer coaches for parents and keep the community's voice at the center of our work. Lastly, the Health Department provides backbone support for the collaboration, which includes evaluation, community engagement, strategic planning & communications, and development. FSA is empowering families and strengthening their support system, which we call the pipeline. We are a convener in the community that pulls partners together and uses community voice to identify and fill gaps in the pipeline. FSA has worked with the school districts directly to create and fund new programming, like K Readiness, where there are gaps in the zones. FSA also works with community partners to target their interventions in the zone. In some cases partner work is funded through FSA. For example, two years ago, UW shifted its funding approach — instead of directly funding nonprofits, they are funding collaboratives. Budget: Core Components • Navigators 19 • Kindergarten Readiness • Extended Learning/Out of School Time • Maintain current pipeline components and enhance services in zones • Strategic Plan implementation - School Innovation Seed Funds • Backbone support The core pieces of these budget projections include: - expansion of the navigator program, - maintenance of the k readiness program, - ensuring that all cohorts of kids who we work with have access to literacy-focused enrichment afterschool and during the summer - Support for our pipeline services and for implementation of our strategic plan - And backbone support, which for the purposes of this projection is managed through the health department - In order to make budget projections, we had to determine the number of children we could potentially reach through FSA in the coming 5 years. We taught our first cohort of K Ready students last year, and in 5 years those children will be about 11 y/o. And although we started with rising kindergarteners, we will be building the pipeline down to include early childhood over the coming years, so we needed to know the total number of children living in poverty from 0-11 y/o in the zones. - The most accurate population level data on child poverty within the zones is the number of children qualifying for free and reduced price lunch. Assuming a stable rate for each age group, which corresponds with census data, we derived an estimate of the total number of children meeting this criteria ages 0-11 y/o and an estimate of the number of families that includes. NAVIGATORS The navigator program is one of FSA's core programs and I'd say it's the lynchpin of our work. They have a common lived experience of struggling to make ends meet, they are seen as leaders in their community and build trusting relationships families, they not only connect families with services, but they inform service providers of how they can best meet family needs. And they help keep families' voices at the center of our work. Right now we have five part-time navigators who, by the end of this year, are expected to reach 90 families. That puts our current reach in the zones at 12% of families living in poverty. In terms of budget implications, we are proposing a range, based on the reach of the navigator program. The growth of this program will depend on: - Demand from the community - Effectiveness of this intervention, as demonstrated by evaluations. And UNC is currently doing a formative evaluation. - Resources available to expand KINDERGARTEN READINESS Our plan is to maintain the K Readiness program as it currently exists. Our recent evaluation data, which will be going out in a press release this week, demonstrates statistically significant improvement for those children who participated this summer. 20 We are able to provide the robust summer program for up to 90 children for about $80k. We just finished our second year of K Readiness and have some lessons learned for how to improve recruitment that involve: - Working with the schools to have access to K registration data earlier - Diversify recruitment mechanisms. More than half of rising K students are not enrolled even a month before school starts, so we're looking at recruiting through partners like home visiting programs, Head Start, Pre-K, etc. EXTENDED LEARNING/OUT OF SCHOOL TIME • Maintain current pipeline components and enhance services in zones • Strategic Plan implementation • School Innovation Seed Funds BACKBONE SUPPORT SUMMER ENRICHMENT &AFTERSCHOOL PIPELINE SERVICE PROVIDERS There are a number of existing providers of summer and afterschool enrichment programming in OC. Many already provide subsidies and serve some FSA families, but they certainly aren't reaching all of them — and they don't necessarily include the literacy-focus that we know is critical for maintaining academic gains. Some programs provide excellent content, but because of their hours or location, it's not a feasible option for FSA families. So our goal is to work with the schools and community partners to enhance programming so it is accessible for parents and meets best practices in terms of supporting literacy development. UPCOMING ASSESSMENTS & RECOMMENDATIONS WITH POTENTIAL FINANCIAL IMPLICATIONS Steps to strengthen prenatal — K pipeline FSA works with dozens of partners throughout the zones. Some of those nonprofits receive UW funding as part of FSA, which requires them to focus their programming in the zones. We are still working to get a better global view of their work and how UW funds complement county funding. All of these organizations received UW funding for their general programming before FSA was created, and they are now using those dollars to focus their support in the zones. As we grow the navigator program and work directly with more families, we will get a better understanding of family needs. Right now, these partners meet the needs of families by providing: Youth services: • Life skills for youth • Literacy sessions in zone schools; children's books and home visits for literacy support • Childcare scholarships • Bilingual mental health treatment, school-based behavioral consultations, parent support and workshops • Girl Scout Community Outreach program • Mentoring for youth 21 Parent supports: • Individual financial counseling, financial education workshops, individual career counseling, career preparedness workshops • Summer internship opportunities for youth • Parenting education programs • Family Literacy Program, basic literacy, GED preparation, digital literacy and English, language instruction The assumption of a 10% increase in funding is fairly modest, compared with the number of families we will be expanding to serve in the coming years. As a collaborative, we will be working with our partners to do collective budgeting. PLAN FOR EXPANDING & IMPROVING ACCESS TO HIGH-QUALITY CHILDCARE As Dr. Bridger mentioned in her recent presentation, the AC has adopted a 2-year strategic plan for FSA. The plan includes several assessments that will lead to recommendations made to the AC about how to fill gaps in pipeline. For example, the goal 1 area includes an inventory of existing supports in early childhood and recommendations for strengthening those supports. As you know, our cohort model currently starts with K Readiness, and we know that ideally we will start working with parents in the prenatal period and connect with children at birth. I am also including here some other examples SP elements, including actions related to improving access to quality childcare, assessing the need for school-based mental health programming, supporting parent needs and providing parenting supports, and launching a college savings program. ASSESS THE NEED FOR, POTENTIAL STRUCTURE OF, AND RESOURCES NEEDED FOR SCHOOL-BASED MENTAL HEALTH PROGRAMMING PARENT NEEDS ASSESSMENT & RECOMMENDATIONS INCREASE NUMBER AND ARRAY OF PARENTING SUPPORTS Launch College Savings Program This is an example costing out a college savings account program that is linked with our navigator program scaled up to have a 50% reach. It assumes an initial deposit and then matching funds for family contributions and incentive funds for parents who complete certain goals, like participation in financial literacy classes. Our hope is that a program like this would be ideal for individual giving & soliciting private funding. Another way in which the AC has decided to support the Strategic Plan is by creating a competitive opportunity for schools to identify ways in which they can support the plan's implementation. We just closed the first round of applications, and 4 out of 6 eligible schools applied. Their interventions range from engaging parents with specific outreach and materials for those children who do poorly on standardized tests to working on behavioral health issues. The overwhelming interest we saw in this opportunity suggests to us that it is a meaningful way to get the schools taking ownership over SP implementation. We know that to support this level of programming, we will need additional backbone support. We have mapped out some hypothetical ideas about what that growth might look like, phasing it in over time. We will walk through the specific details of what this looks like during the actual budget review process so that you have a chance to thoroughly vet everything and help shape the direction and the role of the county in it. 22 These budget numbers assume that FSA continues to receive support from the Health Department's communications manager and from our Health Informatics Specialist. With that support, we will be implementing our evaluation plan. The evaluation plan has additional components that have more validity if they are done externally. Program & Navigator Coordinator - Academic and school-based programming (curriculum development, overseeing implementation) - Navigator program, including clinical supervision - New programs — e.g., oversee College Savings Accounts Community Liaison - Community event planning - Logistics (e.g., meeting minutes FSA, partner meetings) Community Engagement Coordinator - Leading community-driven strategy - Managing Advisory Council - Coordinating with partners and cultivating new partnerships EVALUATION For this reason, we have a partnership with UNC to evaluate the specific programming that FSA launches and to collect some neighborhood level data. Right now, this support is provided in-kind from UNC and we hope that between our partnership with the provost's office and with other funders, like Brady foundation, we will be able to fund this through external support. FUNDING SOURCES This is the make-up of our current funding sources. For comparison purposes, we have adjusted it to reflect the actual value of the in-kind evaluation support from UNC and to include what would have been the full cost of afterschool this year, which enables us to compare this year to future years. TOTAL ESTIMATED BUDGET We expect to continue to grow to meet the needs of families. What you see here is a range estimate of what this initiative is likely to cost over the coming 5 years. The range is driven by the % of families in poverty that the navigators are reaching, which will then have implications for the number of children we are serving within the pipeline. And just for some perspective, the typical Promise Neighbohood grant, which is the federal government's replication of HCZ, is 25 million over five years. You can see here the total budget for the past two fiscal years, and the county appropriation, which included $355,000 from the commissioners and $145,000 through the Health Department's budget. The county funded 38% of this budget. We expect that the commissioners will continue to want to be involved. As the budget grows, we will continue to seek external funding to support that growth. If the commissioners were to maintain their current funding percent, at 38%, then we show an estimate here of what that would look like over the next five years. And I expect there would be some stabilization in growth at the five-year mark, because we would now be at the full cost of serving children throughout elementary school. 23 NEXT STEPS Our next steps as a collaborative is to work with the schools and our other partners to create a development plan to diversify the collaborative's funding and increase sustainability. We will also be mapping out the steps for FSA to become a nonprofit in a 5-year timeframe and will consult with the commissioners about the pros and cons of that strategy. Chair McKee thanked Coby Austin for the informative presentation. b. FY2016-17 First Quarter Financial Report The Board received and considered a First Quarter General Fund and Enterprise Funds summary Financial Report for the period of July 1, 2016 - September 30, 2016. Gary Donaldson, Chief Financial Officer, made the following PowerPoint presentation: DEPARTMENT OF FINANCE AND ADMINISTRATIVE SERVICES FY2016-17 FIRST QUARTER FINANCIAL REPORT Quarterly Financial Report Contents • General Fund Revenues and Expenditures Analysis by Major Revenue Categories and each Department by Functional Leadership Team • 5-Page Narrative explaining Major variances (1st Attachment) o Narrative delineating any material variance by either Performance or Timing • Detailed Comparison of FY2016-17 Budget versus Actual and FY2015-16 Budget versus Actual Table (2nd Attachment) • NC State 2016 Economic Outlook (3rd Attachment) General Fund Revenue Overview • Solid revenue performance consistent with improving economy and consumer confidence • Property tax revenue performance reflects Tax Administration's Office collection efforts and consistent with forecasted revenue growth; property tax revenues comprise 70% of Budgeted General Fund revenues • Sales tax remittances from NC Department of Revenue normally lag three months in economic activity; these revenues are the next largest revenue source accounting for 10% of Budgeted General Fund revenues • Remaining 20% of revenues consists primarily of Intergovernmental and Charges for Services General Fund Revenues Budget versus Actual Comparative Analysis (chart) General Fund Expenditure Overview • Expenditures are indicated by the Functional Leadership Teams • Department Expenditures remain within Budgeted first quarter appropriations • 1Q Spending accounts for 23.4% of Budgeted Expenditures as compared to 24.9% in the prior year • No significant variances attributed to Performance • Debt Service payments are budgeted in Non-Departmental 24 General Fund Expenditures Budget versus Actual Comparative Analysis (chart) Economic Summary • NC State 2016 Economic Outlook indicates: - Economic growth in North Carolina forecasted to continue; adding 86,000 payroll employment and another 90,000 forecasted for 2017 - By end of 2017, several regions Asheville, Charlotte, Durham, and Raleigh-will have unemployment rates below 4% - Key state-wide economic issues include preparing workforce through training for Technology sector jobs - Public policy question of balancing attracting businesses and employment to regions lagging in economic growth juxtaposed with developing skills of individuals living in lagging regions - Continued widening income inequality between highest average salaried sectors of Financial Services and Information Technology - The lowest average salaries are in Leisure and Hospitality, Trade, Utility, and Transportation sectors Commissioner Burroughs thanked Gary Donaldson for his presentation. She referred to page four, and the charges for services. She asked if there is less crime and fewer calls to EMS. Bonnie Hammersley said this could be true or the collection of fees may not be as aggressive. She said in the FY2015-16 budget the Tax Administration Office took over collections for EMS, which has not worked out as well as hoped. She said she would gather more information. Commissioner Burroughs said the narrative allows questions to come to the forefront, which is helpful. Commissioner Rich said the County's new strategy is to look at a five-year plan, and asked if the schools have also started this process. Gary Donaldson said yes, the County and the Schools are collaborating well to get a plan underway. He said hopefully this method will help to reduce the element of surprise during the budget process. c. New County Financial Transparency Portal The Board, County Manager, residents and employees received information on the Department of Finance and Administrative Services new County Financial Transparency Portal. Gary Donaldson said this item comes through Munis, and the information is updated weekly. He said it is to provide an alternate means of accessing the County's financial records, and is completely private. Bonnie Hammersley said this portal is going public tomorrow, and there will be a press release issued about it. The Board received this information item. (No vote required.) 9. County Manager's Report Bonnie Hammersley formally introduced Todd McGee, the new Community Relations Director. 25 Bonnie Hammersley responded to Commissioner Dorosin's petition about adding to the Community Giving Fund. She said staff will proceed in adding a line item for a possible County Fair. Bonnie Hammersley reminded the Board that there will be a regular work session on November 10th, the agenda for which is below: Projected November 10, 2016 Regular Work Session Items • Outside Agency Funding Target and Funding for Non-Profit Capital Needs • Facility Naming Policy • Boards and Commissions Discussion 10. County Attorney's Report NONE 11. Appointments a. Animal Services Hearing Panel Pool —Appointment The Board considered making an appointment to the Animal Services Hearing Panel. A motion was made by Commissioner Price, seconded by Commissioner Dorosin to appoint Amanda Schwoerke to #10 -At-Large position vacancy expiring March 31, 2017. VOTE: UNANIMOUS b. Amendment of Membership Roster and Make Appointment(s) to the Orange County Criminal Justice Advisory Council The Board considered amending the membership roster of the Criminal Justice Advisory Council and making appointment(s) to the Criminal Justice Advisory Council (CJAC). Chair McKee said Commissioner Pelissier will be resigning from the Board of Commissioners in December, and thus that would affect her position on this committee. Chair McKee said the Board would like to create an Emeritus position for Commissioner Pelissier starting December 1St A motion was made by Commissioner Price, seconded by Commissioner Rich to create an Emeritus position and appoint Commissioner Pelissier to the Emeritus position effective December 1, 2016. VOTE: UNANIMOUS Chair McKee said with Commissioner Pelissier moving to this position, a vacant BOCC position is open on this Council. Commissioner Pelissier said when this Council was originally created, she and Commissioner Jacobs, who had both been on the Jail Alternatives Work Group, volunteered to continue to be part of this conversation and process, and, thus, were added to this Council. She said it should now be included in the Board's Boards and Commissions annual selection process going forward, which will take place in February 2017. Commissioner Jacobs said the next meeting of the CJAC is on the December 9th and he encouraged any Commissioners interested in serving to attend the meeting, in order to get an idea of what this Council is about. 26 A motion was made by Commissioner Rich, seconded by Commissioner Burroughs to add this Council to the Board's committee selection process. VOTE: UNANIMOUS 12. Board Comments Commissioner Rich said congratulations to the University of North Carolina for its achievements in Waste Matters. She said the Chapel Hill Town Council is discussing the creation of a committee about the old Town Hall building. She asked if this topic could be added to the next meeting agenda. Bonnie Hammersley said this item is already on the agenda for the November 15th meeting. Commissioner Price gave an update from the most recent Triangle Area Rural Planning Organization (TARPO) meeting regarding funding for projects on North Carolina Highway 54. Commissioner Dorosin said there will be a Community Police Summit on November 9th, at the library in Hillsborough. He said the Hillsborough Police Department has had body cameras for three years. Commissioner Pelissier had no comments. Commissioner Jacobs said the website 538 stated that Donald Trump has the same chance of winning the Presidency as the Cubs do to win the World Series. He said the Cubs are currently about to tie the series 3 to 3. He said the website is one that does statistical analysis of polls in order to make projections. Commissioner Burroughs said it is Commissioner Jacobs' birthday today. Chair McKee said he attended the State of the Schools program for Orange County schools, which was very informative, covering the current status, future plans, and how these plans will be achieved. He said choral groups from both high schools performed, as well as a jazz band and some elementary level choral groups. He said it was a very good program. He asked if all Commissioners received an invitation to this event. All Commissioners said the invitation was received. 13. Information Items • October 18, 2016 BOCC Meeting Follow-up Actions List • Tax Collector's Report— Numerical Analysis • Tax Collector's Report— Measure of Enforced Collections • Tax Assessor's Report— Releases/Refunds under $100 • Employment and Population Guide Totals for Transportation Modeling • BOCC Chair Letter Regarding Petitions from October 18, 2016 Regular Meeting 14. Closed Session A motion was made by Commissioner Dorosin, seconded by Commissioner Burroughs to go into closed session at 10:38 p.m. pursuant to North Carolina General Statute § 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, which privilege is hereby acknowledged. VOTE: UNANIMOUS 27 RECONVENE INTO REGULAR SESSION A motion was made by Commissioner Price, seconded by Commissioner Rich to reconvene into regular session at 11:11 p.m. VOTE: UNANIMOUS 15. Adjournment A motion was made by Commissioner Rich, seconded by Commissioner Price to adjourn the meeting at 11:12 p.m. VOTE: UNANIMOUS Earl McKee, Chair David Hunt Deputy Clerk to the Board