HomeMy WebLinkAboutMinutes 03-21-2017 1
APPROVED 4/18/2017
MINUTES
BOARD OF COMMISSIONERS
REGULAR MEETING
March 21, 2017
7:00 p.m.
The Orange County Board of Commissioners met in regular session on Tuesday, March 21,
2017 at 7:00 p.m. at the Southern Human Services Center in Chapel Hill, N.C.
COUNTY COMMISSIONERS PRESENT: Chair Dorosin and Commissioners Mia Burroughs,
Barry Jacobs, Earl McKee, Mark Marcoplos, 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 Clerk to the Board Donna Baker (All other staff members will be identified
appropriately below)
Chair Dorosin called the meeting to order at 7:03 p.m.
1. Additions or Changes to the Agenda
Chair Dorosin noted the following items at the Commissioners' places:
- White sheet: Item 4-a, PowerPoint
- Pink sheet: Item 11-f, proposed Board of Health (BOH) appointment
A motion was made by Commissioner McKee, seconded by Commissioner Price to add
this item- Board of Health appointment - to the agenda as Item 11-f.
VOTE: UNANIMOUS
- Blue sheet: Item 11-b, revised abstract for Arts Commission
- Green Sheet: Item 11-d, revised abstract for Chapel Hill Planning Commission
- White sheets: Item 6-a, hand outs and PowerPoint
- Information Handout from Chapel Hill Meeting
**Appointments (3) —the request was made to move these items up on the agenda.
Chair/Vice Chairs from the boards could not attend, but staff was available to answer any
questions about their recommendations:
Commissioner McKee suggested moving forward these appointments since there are
no heavy hitting items.
Chair Dorosin suggested making these appointments Item 5.
11 a. Animal Services Hearing Panel Pool —Appointments
The Board will consider making appointments to the Animal Services Hearing Panel Pool.
11 b Arts Commission —Appointments
The Board will consider making appointments to the Arts Commission.
11 e. Economic Development Advisory Board —Appointments
The Board will consider making appointments to the Economic Development Advisory Board.
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PUBLIC CHARGE
Chair Dorosin dispensed with the reading of the Public Charge.
2. Public Comments
a. Matters not on the Printed Agenda
Frances Henderson is the Director of the Dispute Settlement Center, which is
funded by Orange County. She said she is here to represent the Orange County Third
Sector Alliance, a membership group of 36 County funded non-profits that provides a
voice for the non-profit sector. She thanked the Board of County Commissioners
(BOCC) and the Manager's office for their support of non-profits.
b. Matters on the Printed Agenda
(These matters will be considered when the Board addresses that item on the agenda
below.)
3. Announcements, Petitions and Comments by Board Members
Commissioner Marcoplos had none.
Commissioner Price said she forwarded a copy of a letter to the Board that she sent to
Congressman David Price about restoring funds to the CDBG and HOME funds.
Commissioner Price said she was part of a Stepping Up Initiative conference call, and
Cait Fenhagen, Criminal Justice Resource Manager, was a very informative part of this call.
Commissioner Price said on March 25th, there will be a sign unveiling for James
"Junebug" Stewart, as well as the opening of the parking lot, at Fairview Park.
Commissioner McKee had none.
Commissioner Rich said the hand out at their places is a presentation that was given at
a Chapel Hill Town Council meeting by charettes, regarding what goes around light rail
stations. She said this presentation focused on affordable housing and developable land
around these proposed stations.
Commissioner Rich said she has received calls about a current bill being proposed to
repeal the impact fees that Orange County currently implements. She said these fees go to
fund local schools. She said these fees have not been changed since 2008, and need to rise
in accordance with the rising costs of school construction. She said there is an appeal
process.
Commissioner Jacobs acknowledged Dr. Robert Lackey, who was awarded the Order
of the Long Leaf Pine from the State. He said Dr. Lackey is a pioneer in radiology in North
Carolina, and was noted for his inclusiveness for treating all regardless of their race/ethnicity or
ability to pay.
Commissioner Jacobs reported on a meeting that he and Chair Dorosin just attended
with staff, Durham County elected officials, and GoTriangle representatives. He said
GoTriangle brought its latest fiscal analysis of the light rail (LRT) project and bus and rail
investment plan, which caused the elected officials to be even more concerned about the fiscal
viability of this project as currently constituted. He said adjustments and questions were
discussed, as well as which scenario should be analyzed further by GoTriangle. He said the
most pessimistic scenario was chosen, and the group will try and meet again in the next week
or two after the Davenport report is received. He said the best part of the meeting was that,
upon viewing the financials, the Durham County Commissioners are in accord with the Orange
County Commissioners about concerns. He said there was little argument about how to
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change the percentages in the joint agreement, because the numbers showed the need for
Orange County to provide a smaller percentage. He said Durham wanted to take it to the
public as a scenario, and gather three weeks of public comment. He said Davenport will
review the scenario as well, and report back to the group. He said the plan is to still operate
on the assumption that a decision will be needed by the end of April. He said GoTriangle was
told that there is no guarantee that the BOCC is in favor of the LRT. He said the majority favor
it, and desire to work together, but there is no guarantee.
Commissioner Jacobs said all agreed that the current situation is a result of the State
cutting 15% of funding from transit funding.
Commissioner Burroughs said two weeks ago the police department in Hillsborough
started carrying naloxone, so that all local law enforcement departments now carry it. She said
Director interviews for the Health Director position are going forward.
Commissioner Burroughs said the Board of Health is reviewing outside agency
applications that deal with health issues.
Commissioner Burroughs wished Donna Baker a belated Happy Birthday.
Chair Dorosin said he attended his first Community Home Trust meeting as the BOCC
representative, which was exciting and efforts for coordination are coming together.
APPOINTMENTS- (3 MOVED UP)
11-a. Animal Services Hearing Panel Pool —Appointments
The Board considered making appointments to the Animal Services Hearing Panel
Pool.
A motion was made by Commissioner Price, seconded by Commissioner McKee to
appoint the following to the Animal Services Hearing Panel Pool:
• Appointment to a first full term (position #4) "Town of Chapel Hill" for Daniel Ryan
expiring 03/31/2020.
• Appointment to a first full term (position #7) "At-Large Public Health Field" for Tony
Whitaker expiring 03/31/2020.
• Appointment to a first full term (position #10) "Orange County At-Large" for Amanda
Schwoerke expiring 03/31/2020.
• Appointment to a first full term (position #13) "At-Large Unincorporated County" for
Cathy Munnier expiring 03/31/2020
• Appointment to a first full term (position #16) "Animal Services Advisory Board Member"
for Edmund Tiryakian expiring 03/31/2020.
VOTE: UNANIMOUS
11-b. Arts Commission —Appointments
The Board considered making appointments to the Arts Commission.
A motion was made by Commissioner Price, seconded by Commissioner Rich to
appoint the following to the Arts Commission:
• Appointment to a first full term (position #3) "At-Large" for Tarish Pipkins expiring
03/31/2020.
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• Appointment to a first full term (position #4) "At-Large" for Daniel Mayer expiring
03/31/2020.
• Appointment to a second full term (position #5) "At-Large" for Tinka Jordy expiring
03/31/2020.
• Appointment to a second full term (position #11) "At-Large" for Ashley Nissler expiring
03/31/2020.
• Appointment to a partial term (position #12) "At-Large" for Anita Mills expiring
03/31/2018.
• Appointment to a partial term (position #13) "At-Large" for Consuelo Marshall expiring
03/31/2018.
• Appointment to a first full term (position #14) "At-Large" for Helen Jones expiring
09/30/2019.
VOTE: UNANIMOUS
11-e. Economic Development Advisory Board —Appointments
The Board considered making appointments to the Economic Development Advisory
Board.
A motion was made by Commissioner Jacobs, seconded by Commissioner Price to
appoint the following to the Economic Development Advisory Board:
• Appointment to a partial term (Position #2) "Tourism" for Anthony Carey expiring
06/30/2018.
• Appointment to a partial term (Position #4) "Entrepreneur" for Sharon Hill expiring
06/30/2017.
• Appointment to a first full term (Position #9) "Core Business Community" for Keith
Coleman expiring 06/30/2019.
VOTE: UNANIMOUS
Commissioner Jacobs said he served for years on past economic development
boards, and he would like to get reports back from the Economic Development Advisory Board
(EDAB) more than just once a year. He said this is a high-powered group to advise this
department, and he would like to be more knowledgeable about this group.
Steve Brantley, Economic Development Director, said he will follow up with his board
on these suggestions.
4. Proclamations/ Resolutions/ Special Presentations
a. Presentation of Comprehensive Annual Financial Report for FYE 6/30/2016
The Board considered receiving the Comprehensive Annual Financial Report (CAFR)
for FYE 6/30/2016 as information.
BACKGROUND:
The CAFR reports on all financial activity of the County for the fiscal year July 1, 2015 through
June 30, 2016. Mauldin and Jenkins, a firm of Certified Public Accountants, audited the
financial statements. The financial statements and audit are required by Chapter 159-34 of the
North Carolina General Statutes. The County prepares a Comprehensive Annual Financial
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Report (CAFR) that meets the standards set by the Government Finance Officers Association
(GFOA). The CAFR is submitted to the GFOA in order to be awarded the Certificate of
Achievement for Excellence in Financial Reporting. The financial report for the Orange County
SportsPlex, as required under the management contract, is included in the County's CAFR.
The audit results for the fiscal year ended June 30, 2016 indicate a strong financial position for
Orange County. The County received an unmodified (clean) audit opinion on the financial
statements received from the audit. The Chief Financial Officer and representatives of Mauldin
and Jenkins will cover highlights of the report and answer any questions.
Gary Donaldson, Chief Financial Officer, acknowledged the members of his finance
team, and the Board presented the Certificate of Achievement for Excellence In Financial
Reporting award.
Gary Donaldson introduced the auditors from Mauldin and Jenkins.
Joel Black, Mauldin and Jenkins Engagement Partner, reviewed the following
PowerPoint presentation:
Mauldin and Jenkins
Presentation of 2016 Audit Results
Orange County, North Carolina
March 21, 2017
Agenda
• Engagement Team
• Results of 2016 Audit
• Financial Ratios
• Comments, Recommendations, and Other Issues
• Questions and Comments
• Mauldin and Jenkins, LLC; General Information
o Founded in 1920
o Large regional firm serving the Southeastern United States
o Offices located in Atlanta, GA, Macon, GA, Albany, GA, Bradenton, FL,
Chattanooga, TN and Birmingham, AL employing approximately 280 employees
• Mauldin and Jenkins, LLC; Governmental Sector
o Largest specific industry niche served by the Firm representing 25% of Firm
practice
o Serve more governmental entities throughout the Southeast than many other
certified public accounting firm requiring over 70,000 hours of service on an
annual basis
o Approximately 90 professional staff persons with current governmental
experience
o Current auditor for over 300 total governments in the Southeast, including
approximately:
• 40 counties;
• 85 cities
• 40 school systems;
• 40 state entities; and,
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• 120+ special purpose entities (stand-alone business type entities,
libraries, etc.)
• Engagement Team Leaders for Orange County
o Joel Black, Engagement Partner
o James Bence, Audit Services Partner
o Adam Fraley, Quality Review Partner
Results of 2016 Audit
• Our Responsibility Under Auditing Standards Generally Accepted in the United States
of America (GAAS) and Government Auditing Standards (GAS)
o They considered the internal control structure for the purpose of expressing our
opinion on the County's basic financial statements and not providing assurance
on the internal control structure.
o Our audit was performed in accordance with GAAS and GAS.
o Our objective is to provide reasonable—not absolute—assurance that the basic
financial statements are free of material misstatement.
o We did not audit the financial statements of the Orange County ABC Board. We
reviewed and relied on the report of other auditors for amounts included in the
County's statements related to the ABC Board.
o The basic financial statements are the responsibility of the County's
management.
• Report on 2016 Basic Financial Statements
o Unmodified ("clean") opinion on basic financial statements.
o Presented fairly in accordance with accounting principles generally accepted in
the United States of America.
o Our responsibility does not extend beyond financial information contained in our
report.
• Report on 2016 Single Audit
o Unmodified ("clean") opinion on compliance for 2 major federal programs tested
in accordance with Title 2 U.S. CFR Section 200 and 1 major state program (in
conjunction with 1 of the major federal programs) tested in accordance with the
State Single Audit Implementation Act.
Commissioner Rich asked if there is a reason that the ABC Board is not audited.
Joel Black said the ABC Board hires its own auditors, and he is not sure for the reason
behind this. He said he received the numbers from the ABC Board's auditors, and relies on
these numbers in their report.
Commissioner Rich asked if the ABC Board auditor or the County is responsible for the
ABC Board numbers.
Joel Black said ultimately the ABC Board is responsible for its numbers, but because
the numbers are a component of the County audit, the County is also somewhat responsible.
John Roberts said the County does not audit the ABC Board because it is a state
agency and is not part of county government.
• Significant Accounting Policies
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o The significant accounting policies used by the County are described in Note 1
to the basic financial statements.
o The policies used by the County are in accordance with generally accepted
accounting principles and similar government organizations.
o In considering the qualitative aspects of its policies, the County is not involved in
any controversial or emerging issues for which guidance is not available.
• Management Judgment/Accounting Estimates
o The County uses various estimates as part of its financial reporting process —
including valuation of accounts receivable, depreciation of capital assets, self-
insurance claim liabilities, and pension and OPEB assumptions.
o Management's estimates used in preparation of financial statements were
deemed reasonable in relation to the financial statements taken as a whole. We
considered this information and the qualitative aspects of management's
calculations in evaluating the County's significant accounting estimates.
• Finanical Statement Disclosure
o The footnote disclosure to the financial statements are also an integral part of
the financial statements and the process used by management to accumulate
the information included in the disclosures was the same process used in
accumulating the statements. The overall neutrality, consistency, and clarity of
the disclosures was considered part our audit
• Relationship with Management
o We receivevd full cooperation from the County's Management and Staff
o There were no disagreement with Management on accounting issues or
financial reporting matters
• Audit Adjustments
o There were several posted adjustments, which were necessary during the audit
process. Those entries have been provided to Management and have all been
recorded on the County's general ledger by Management and they have agreed
with all adjustments. There was one passed adjustment related to a loss on
debt refunds, which should have been deferred in prior years and amortized
over time in the Governmental Activities. The entry was not posted due to the
entry immaterial to the entire governmental activities opinion unit, this entry
would have been increased deferred outflows by $753,179, increased beginning
of the year net position by $878,709 and increased amortization expense by
$125,530
• Management Representation
o We requested, and received, written representations from management relating
to the accuracy of information included in the financial statements and the
completeness and accuracy of various information request by us.
• Consultation with other accountants
o To the best of our knowledge, management has not consulted with, or obtained
opinions from, other independent accountants during the year, nor did we face
any issues requiring outside consultation.
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• Significant Issues Discussed with Management
o There were no significant issues discurssed with management related to
business conditions, plans, or strategies that may have affected the risk of
material misstatement of the financial statements.
• Information in Documents Containing Audited Financial Statements
o Our responsibility for other information in documents containing the County's
comprehensive annual financial report and our report thereon does not extend
beyond the information identified in our report. If the County intends to publish
or otherwise reproduce the financial statements and mae reference to our firm,
we must be provided with printers' proof for our review and approval before
printing. The County must also provide us with a copy of the financial
reproduced for material for our approval before it is distributed.
• Auditor Independence
o In accordance with AICPA professional standards, M&J is independent with
regard to the County and its financial reporting process
o There were no fees paid to M&J for management advisory services during the
fiscal year 2016 that may affect our independence as auditors.
General Fund Fund Balance Ratio to Expenditures (graph)
Trend Analysis of Property and Sales Tax Revenue per capita (graph)
Assessed Values vs Tax Rates (graph)
General Fund Budget to Actual Results —Fiscal Year 2016 (graph)
• General Fund revenues were 1.2% more than the amended budgeted amount. The
actual revenue was over budget due to increased actual sales tax collections from the
State.
• Expenditures for many functional areas were less than budget as the County generated
savings of$10.1 million (4.9%) from the operating budget. Several departments came
in under budget due to personnel vacancies and efforts to spend conservatively.
• Budgeted use of fund balance was not needed to the extent anticipated, as actual use
of reserves was only 4.5% of the final budgeted use.
• General Fund significant transfers were $5,167,984 to School Capital Improvement
Fund; $703,227 to County Capital Improvement Fund; and $1,718,018 to Solid Waste
Landfill Fund.
Enterprise Results (graph)
James Bence, Mauldin and Jenkins Audit Services Partner, reviewed the following
portion of the PowerPoint presentation:
Comments, Recommendations, and Other Issues
Material Weaknesses Reported
2016-001 Expenditure and Expense Recognition
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Generally, expenditures/expenses should be recognized as soon as a liability is incurred,
regardless of the timing of the related cash flows in accordance with generally accepted
accounting principles. Misstatements were detected in the reporting of the County's
expenditures/expenses and the related balance sheet accounts. Audit adjustments totaling
approximately $6,354,000 were needed to correct the County's expenditures/expenses and
related balance accounts. This included three adjustments to the prior financial statement
amounts.
2016-002 Equity Reconciliation
Internal controls should be in place to ensure that financial statements are properly presenting
the financial position and results of operations of the County in accordance with generally
accepted accounting principles. Internal controls were not sufficient to detect misstatements in
the reporting of the opening net position balances of the County's Solid Waste Landfill Fund.
An audit adjustment totaling approximately $760,000 was needed to correct the County's
opening net position in the general ledger as of June 30, 2016.
2016-003 Capital Asset Reporting
Internal controls should be in place to ensure the subsidiary ledgers for the County's capital
assets, both governmental and business-type activities, include all capital assets purchased or
constructed during the fiscal year. Additionally, subsidiary ledgers should be maintained to
track the capital assets by cost and calculate annual depreciation amounts for the capital
assets.
Material misstatements were detected by County management in the reporting of the current
year additions to the County's capital asset balances, as well as some previously unrecorded
capital assets. Adjustments of approximately $4,140,000 were needed to correctly report the
capital assets, including $1,023,000 of capital assets previously expensed in prior periods.
2016-005 Schedule of Expenditures of Federal and State Awards
2 CFR 200.302(b)(1) states that all nonfederal entities must identify in its accounts all federal
awards received and expended. The schedule of expenditures of federal and state awards
(SEFSA) should be derived from, and relate directly to, the underlying accounting and other
records used to prepare the financial statements for the County. During the preparation of the
schedule of expenditures of federal and state awards, it was noted the County was preparing
the report based on revenues, rather than expenditures. The majority of the County's federal
and state awards are related to health and human service grant activity, which is maintained
outside of the County's finance department. As such, the County did not have procedures in
place to permit for the reconciliation of the schedule of expenditures of federal and state
awards to the underlying expenditures of the County. Ultimately the County was able to
internally provide the necessary underlying records to support the expenditures reported on
the schedule of expenditures of federal and state awards, but the reconciliation was performed
with the Finance department and the department of Social Services working together to go
through the general ledger and supporting to reconcile the activity of the County to the
SEFSA. This process was not complete until January 2017.
Significant Deficiency
2016-004 Segregation of Duties
Segregation of employees' duties is a common practice in an effective internal control
structure. Segregation of duties is achieved when specific employee functions related to
important accounting areas are separated among different individuals to significantly reduce
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the risk that any one individual could intentionally or unintentionally misappropriate assets.
Policies should be in place requiring the segregation of certain duties. The County's payroll
processing controls did not provide the appropriate segregation of duties related to the payroll
processing. One individual at the County has the ability to input employee time, prepare the
batch time entry reports to post to the general ledger, and edit employee hours. We
recommend these controls either be segregated or compensating controls be implemented
such as periodic reports reviewed of all changes made to employee time entered, new
employees created as compared to reports from Human Resources, changes in employee
benefits, earnings, or withholdings. During our testing we noted at the Sheriff's Department the
same individual was capable of creating and approving a purchase requisition. Without some
segregation of duties within these functions, there is increased exposure that someone could
intentionally or unintentionally misappropriate assets of the County. Additionally, without
additional internal controls related to financial reporting, errors could occur and not be
detected.
Joel Black resumed the PowerPoint presentation:
Federal Awards — Significant Deficiency
2016-006 Monitoring Controls over 1571 Reporting
Sound internal controls require that all financial and performance reports be reviewed in details
by a knowledgeable person independent of the preparation process to ensure the accuracy
and the completeness of the reports. This review should include both the verification and
validation of the information included within the report, but also the accuracy of the information
within the report. The reviewer should be able to verify the source information to the
supporting sub-ledger information to ensure the valuation of the information included in the
reports, the accuracy of the data, and the completeness of the information. During our testing
of the preparation of the monthly 1571 report, as required by the North Carolina Department of
Health and Human Services, we noted the County does not have sufficient controls in place to
perform the necessary monitoring reviews to properly identify, summarize, and prepare the
reports. By not having a detailed review of the report preparation and submission, the County
is exposed to the risk of errors being included in the report. As the aggregation of information
is very manual, with little direct monitoring controls, the County is at risk for errors to occur in
the monthly reporting of federal and state expenditures and services. This report also provides
information for the preparation of the County's schedule of expenditures of federal and state
awards and any errors in this report would also result in an error to that schedule — see further
discussion in finding 2016-005.
• New GASB Pronouncements- Implemented This Year
o Statement No. 72, Fair Value Measurement and Application, provides guidance
on the measurement of fair values of certain accounts — most notably
investments. Due to the nature of the County's investments, no significant
change was required.
o GASB Statement No. 76, Hierarchy of Generally Accepted Accounting
Principles for State and Local Governments, provides guidance on the
authoritative literature which should be utilized in applying GAAP to state and
local government financial statements. No significant change for the County.
o GASB Statement No. 79, Certain External Investment Pools and Pool
Participants, provides for the accounting of the value of external investment
pools (such as the North Carolina Capital Management Trust) at amortized cost,
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as opposed to fair value, if the pool meets certain requirements. The North
Carolina Capital Management Trust— cash portfolio meets these criteria and
reports the value of its investments at amortized cost— and thus the County
reports its investment in the investment pool at amortized cost. This did not
result in a change in value for the County.
• New GASB Pronouncements for Future Years
o GASB Statement No. 73, Accounting and Financial Reporting for Pensions and
Related Assets That Are Not within the Scope of GASB Statemenet 68, and
Amendments to Certain Provisions of GASB Statements 67 and 68, brings
standards for recording the Total Pension Liability (similar to the requirements of
GASB Statement 68) for plans not covered by that standard. This requirement
will be applicable for June 30, 2017. This should affect the reporting of the
County's Law Enforcement Officer's Special Separation Allowance.
o GASB Statement No. 74, Financial Reporting for Postemployment Benefits
Plans Other Than Pension Plans, enhances note diclosures and RSI for OPEB
plan finaicial statements. This standard is similar to the requirements of
Statement No. 67 (implemented in 2014) related to penrions and impacts the
financial statements of the plan (i.e. OPEB Trust Fund) itself. The County
currently does not have a OPEB Trust Fund. Applicable for June 30, 2017.
Commissioner Price asked if the County is required to have an OPEB Trust Fund.
Joel Black said it is not a requirement, and the majority of governments do not have
one.
o GASB Statement No. 75, Accounting and Financial Reporting for
Postemployment Benefits Other Than Pensions, requires governments
providing defined benefit OPEB plans (post-retirement health-care benefits) to
recognize the full amount of their long-term obligation for OPEB benefits as a
liability for the first time, and to more comprehensively and comparably measure
the annual costs of OPEB benefits. This standard is similar to the requirements
of Statement No. 68 related to pensions, which was implemented this year.
Applicable for June 30, 2018.
o GASB Statement No. 77, Tax Abatement Disclosures
o GASB Statement No. 78, Pensions Provided through Certain Multiple-Employer
Defined Benefit Pension Plans
o GASB Statement No. 80, Blending Requirements for Certain Component Units
o GASB Statement No. 81, Irrevocable Split-Interest Agreements
o GASB Statement No. 82, Pension Issues
o GASB Statement No. 83, Certain Asset Retirement Obligations
o GASB Statement No. 84 Fiduciary Activities
• Other Matters Currently Being Considered by GASB
o Conceptual framework and current measurement focus considerations (revenue
recognition/60 days rules and consumption vs. purchased method for expensing
inventories)
o Financial reporting model (is GASB 34's model the right model today?)
o Leases (do operating leases meet the definitions of being an asset or liability?)
o Debt extinguishments using existing resources
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• Other Changes
o There continues to be changes to auditing standards relative to the conduct and
reporting of Single Audits. This year's financial and compliance audit
recognized the implementation of the new Uniform Grant Guidance (UG), which
included significant changes to cost principles and other requirements for
auditees receiving Federal funds. These changes are driven based on the grant
award date as awarded by the Federal agency. As such, auditors and auditees
will follow requirements from both the "old" and "new" guidance for a few years
to come.
Free Quarterly Continuing Education for Governmental Clients
Questions and Comments
Commissioner Marcoplos asked if an "audit adjustment" could be clarified.
Joel Black said part of the audit is a review of the financial statements produced from
Management's general ledgers. He said these numbers are tested to insure accuracy. He
said an audit adjustment would be something that is found during that review that needs to be
brought to Management's attention. He said the County has taken action on all audit
adjustments that were found during the review.
Commissioner Marcoplos asked if the auditors could describe how they would have felt
if the County had a fund balance of 14%, rather than 16.2%.
Joel Black said that would be on the low side, but typically the larger the government
the lower the fund balance tends to be. He said the preferred range is 16-25%.
Commissioner Burroughs said in previous audits there have been no findings, which
she found unnerving. She said she was glad to see that there are findings in this audit, and
that staff is responding appropriately.
Chair Dorosin said it is a good reaffirmation of why it is best practice to change auditors
every few years. He thanked Mauldin and Jenkins for their work.
5. Public Hearings
NONE
6. Regular Agenda
a. Environmental &Agricultural Center(EAC) —Visioning Study Update and
Development Options
The Board considered receiving the preliminary visioning and development option study
regarding the Environmental and Agricultural Center (EAC) prepared by HH Architecture, and
providing direction to the Manager regarding the following staff-recommended development
options.
Jeff Thompson, Asset Management Services Director, made the following PowerPoint
presentation:
ORANGE COUNTY ENVIRONMENT AND AGRICULTURAL CENTER
Visioning Study Update & Development Options
Board action requested:
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• Receive and provide feedback regarding the overall vision study conducted by HH
Architecture;
• Discuss and decide a development course of action for the Environment and
Agricultural Center (EAC) to inform the FY2017-22 Capital Investment Plan
A Brief History— BOCC Actions
Blackwood Farm Master Plan / Parks Operation Base
BOCC adopted March 3, 2011
Includes a new Parks Operation Base, not EAC
Revere Rd EAC / HH Architecture Preliminary Study
2013 decision to remove 2018 repair funds in favor of renovate/replace
Government Services Annex inappropriate
2015 decision to study options
BOCC Space Utilization Principles
Co-location (2001)
Consolidation (2001)
Owning (2001)
Sustainable practices (2005)
Highest and best use (2013)
Kristin Hess, HH Architecture, presented this portion of the PowerPoint:
Process
Interviewed face-to-face, distributed surveys, and solicited input from:
• County Commissioners
• Staff
• Directors
• Customers and other stakeholders
Program was supplemented from these interviews to include specific work spaces
requirements.
Existing Building
• Built in 1960, renovated in 1989
• Structure is stable; will require minor reinforcement
• Roof needs to be replaced
• Interior office flow and layout could be improved for efficiency
• Building lacks energy efficiency
• Mechanical systems require replacement
Existing Building (photograph)
Survey Results
• Roof leaks; moisture build up in walls
• Conference spaces are undersized
• Poor HVAC performance in peak seasons
• Limited site lighting is a safety concern
• Would like better functionality and connectivity
• Some offices are oversized, others are undersized
• Limited daylighting
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Jeff Thompson resumed the PowerPoint presentation:
Vision Study Key Points &Analysis:
• Investment Needed: Facility is functionally obsolete & could benefit from a major
renovation.
• Location and Lot Size: Northern periphery of Hillsborough is desirable, but space
constraints and residential character may be better for other uses: e.g. affordable
housing, community center, or disposition (sale or partnership opportunities).
o Potential exploration of county property or acquisition.
• Co-location Opportunity: A new EAC could be built and co-located with the Park
Operations Center (currently slated for FY18-19 CIP at Blackwood Farm)
o All DEAPR divisions (except Recreation) and related agencies would be
together
o Operational and capital cost efficiencies
Location & Development Recommendations
Staff has analyzed the HH Architecture study and present the following recommendations:
1) Major EAC Renovations — Revere Rd*
2a) Build New EAC — Torain St/Public Works Dr.*
2b) Build New EAC & Park Ops Center— Torain St/Public Works Dr.*
3) Build New— New Site
* County owned property
Option 1:
Major EAC Renovations — Revere Rd
Overview:
• Renovate the existing facility and parking lot
• Structurally sound building shell remains
• Major systems and interior space renovation; new roof and parking lot
Probable Cost Estimate: $3,685,000. Incl. $235,000 to be added in the FY2017-22 CIP
Advantages:
• Achieves functional efficiency for customers and administrative staff
• Increases energy efficiency
• Lowest cost option (EAC only)
Disadvantages:
• Site may not be the highest and best use
• Building footprint and site geometry limitations do not optimize site and space
functionality.
Conformance with BOCC Space Planning Principles:
■ Co-location
■ Owned Property
■ Sustainable design principles
■ Consolidation
■ Highest and Best Use
Kristin Hess presented this portion of the PowerPoint:
Option 1: Major Renovation (map)
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Option 1: Major Renovation (plan)
Commissioner Jacobs asked if there is a plan for the rest of the site.
Kristin Hess said there are limits to what can be done, but there is a plan for limited
demonstration and gardening areas, animal husbandry, etc.
Commissioner Jacobs said there was a citizen recommendation for an agricultural
center, and he asked if this idea was followed up on.
Kristin Hess said a covered area was proposed for animal scales, but the scales cannot
be located. She said the intention is show off and showcase agriculture.
Commissioner Price asked if there is a plan for the other buildings on this site.
Jeff Thompson said one building is the current Emergency Services substation #1,
which plans to collocate with the Emergency Services substation plan in the CIP. He said the
other building is a storage facility, which is not in the best condition and could be disposed of
to open up the back part of the lot.
Jeff Thompson resumed the presentation:
Option 2a:
New Construction EAC — Torain St/ Public Works Dr
Overview: Build a new EAC facility on County property next to Fairview Park and County Fleet
operations campus on Public Works Drive
(Pre-engineered steel with exterior cladding and interior upfits)
Probable Cost Estimate:
• $4,458,000. Includes $1,008,500 to be added in the FY2017-22 CIP
• Sanitary sewer line upgrade, required storm water management features, and related
site costs
Advantages:
• Higher level of functional and energy efficiency for customers and administrative staff
• New construction, longer life
• Ability to re-purpose or sell the Revere Road property
Disadvantages:
• More secluded since not on a "through-street"
• Highest cost option
BOCC Space Planning Principles:
■ Co-location
■ Owned Property
■ Sustainable design principles
■ Consolidation
■ Highest and Best Use
Option 2: New Construction (map)
Torain St/Public Works Dr. Property (photograph)
Option 2: New Construction (plan)
Option 2b:
New Construction EAC & Park Ops Center
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Overview: Build a new EAC facility and a co-located Park Operations Base on County
property next to Fairview Park and County Fleet operations campus on Public Works Dr. (Both
Buildings: Pre-engineered steel with exterior cladding and interior upfits)
Probable Cost Estimate:
• Probable Cost Estimate: $6,452,000 (New EAC $4,200,000, plus Park Ops
$2,572,000)
o Includes $430,500 to be added in the FY2017-22 CIP
o Sanitary sewer upgrade, required storm water features, and related site costs
Advantages:
• Avoided Costs: Major septic system at Blackwood Farm, duplicative site work, shared
infrastructure (parking lots and areas for storage, staging, training, etc.)
• Higher level of functional and energy efficiency (same as Option 2a)
• Efficiency in co-locating the Park Operations Base with rest of DEAPR and near fuel
station and maintenance operations
• Adjacent to Fairview Park
• Ability to re-purpose or sell the Revere Road site
Disadvantages:
• Site not on a "through-street"
• Potential transportation impacts of servicing County parks
BOCC Space Planning Principles:
■ Co-location
■ Owned Property
■ Sustainable design principles
■ Consolidation
■ Highest and Best Use
Option 3: New Construction — New Site
Overview: Examine prospective sites within the Highway 70/Cornelius Street Corridor along
the northern Hillsborough periphery.
Probable Cost Estimate:
• Similar to Options 2a or 2b, plus site acquisition costs and other site development costs
• No requirement to appropriate additional funds to the CIP until costs more fully
understood
Advantages:
• Ability to locate a suitable site to address the perceived weaknesses of seclusion,
visibility, and transportation reach to County parks
• Capacity for growth within the County owned real estate portfolio
Disadvantages:
• Requires more time for site identification, due diligence, and acquisition
• Purchased property would be tax exempt
• Likely additional costs associated with the real estate purchase
and development.
BOCC Space Planning Principles:
Site selection based on Board-adopted criteria
Board action requested:
• Receive and provide feedback regarding the study conducted by HH Architecture;
• Discuss and decide a development course of action for the Environment and
Agricultural Center (EAC) to inform the FY2018-23 Capital Investment Plan
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1) Major EAC Renovations — Revere Rd
2a) Build New EAC — Torain St/Public Works Dr.
2b) Build New EAC & Park Ops Center— Torain St/Public Works Dr.
3) Build New— New Site
Recommendations
The Manager recommends the Board receive the preliminary visioning and development
option study regarding the Environmental and Agricultural Center (EAC) prepared by HH
architecture and indicated the preferred option(s):
1.) Major EAC renovations — Revere Road: perform major renovations to the existing EAC
facility at 306 Revere Road (see attachment number 2 for Revere Road EAC site
and space plans);
• Additional CIP funds required: $235,000
2a.) Build new EAC-Torain St: Pursue a development plan and new construction of an
EAC facility located on County owned Torain St/Public Works Drive property (see
attachment number 3 for Torain St/Public Works Drive aerial);
• Additional CIP funds required: $1,850,000
2b.) Build new EAC & Park Operations Center— Torain St: pursue a development plan
and new construction of an EAC Facility and a collocated parks operations space
located on the County owned Torain St/Public Works Drive property;
• Additional CIP funds required: $430,500
3.) Build New Site: explore and recommend to the BOCC other sites for development on
the northen periphery of Hillsborough for either and EAC site or a collocated EAC/Parks
operations space site.
• Additional CIP funds required: similar to 2a/2b plus land acquisition cost.
QUESTION AND ANSWER
Commissioner Jacobs referred to option 2, and asked what is currently on the site.
Jeff Thompson said scrub pines and some hardwoods that could be protected.
Commissioner Marcoplos asked if the possibility of turning the Revere Road site into
multiple affordable housing units has been discussed.
Chair Dorosin said many have suggested it.
Commissioner Marcoplos asked if there is a cost figure.
Jeff Thompson said no, but there is water and sewer on this property.
Commissioner Price said this is a mixed-use area in and around the Revere Road site,
and asked if the zoning could be identified.
Jeff Thompson said it is currently zoned retail and commercial, and re-zoning would
have to be worked on with the Town of Hillsborough in order to build residential.
Commissioner Price said she is not seeing the inadequacies of the site that are being
suggested.
Kristin Hess said the site and space are limiting and challenging. She said it is difficult
to maneuver large vehicles through the property, and some areas are cut off and thus feel
unsafe.
Commissioner Price asked if this site compares well to the Torain Street site.
Jeff Thomspon said there is a lot of maneuverability around that site, but it has been
noted that it is not a through street.
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Kristin Hess said the current site feels like trying to fit 10 pounds of potatoes into a 5-
pound bag.
Kristin Hess said the shell part does not give you more space on the site, because it is
not being torn down.
Commissioner Price said she finds it confusing that the space is limiting, yet not all the
space is needed.
Kristin Hess said there is more building than is needed, but there is not enough of the
actual site. She said the site has odd pockets that make it tough, but some of the buildings
could be torn down to make some more room.
Commissioner Marcoplos referred to the idea of affordable housing on the Revere
Road site. He said it looks like 14 units could be built in the existing space, with room for some
smaller homes around the outside.
Chair Dorosin referred to the overhead view of the current site, and said there is a
wooded area to the west. He asked if someone else owns this land, or if it is a right of way.
Jeff Thompson said this is not County property, and is owned by the Home Owners
Association of the neighboring development.
Chair Dorosin it may be worth looking into the purchase of this piece of land.
Commissioner Jacobs said the Torain Road site is his least favorite, and it suggests
two principles that should be avoided in the future: the Greenfield development, and failing to
take traffic considerations into account. He said traffic in this area is terrible.
Commissioner Jacobs said he is inclined by cost to stay at Revere Road, and if it were
used for affordable housing he would like the money for the property, as he is most in favor of
a Highway 70 site. He said there is a desire for economic development on the Cornelius
Street corridor, and this would be a perfect opportunity. He said this would be readily visible,
easily accessible, and already has water and sewer, etc. He said he would like to know cost
estimates for such an option.
Commissioner McKee said this project has run away, and originally a renovation of a
structurally sound building was the only option being considered. He said the vision has gotten
lost along the way. He said the current building is dated but usable, and he does not buy the
long hallway being inadequate. He said there are schools that are just as old as this building.
He said it is a residential neighborhood, but there is also a commercial strip on this portion of
Revere Road and it is a mixed-use area.
Commissioner McKee said the intersection of Highways 57 and 86 is very congested in
the morning, and he does not like this option.
Commissioner McKee said he is open to discussion to build a new site along the 70
corridor, but acknowledged that this would cost well over $7 million. He said there are higher
and better uses for those funds in many other areas of the County.
Commissioner Price said she agreed with previous comments, and she is not in favor of
the Torain Street site. She said the current site can be reworked, but she is open to a plan on
highway 70.
Commissioner Burroughs said major renovations on Revere Road would not be perfect
but would be workable, and there are limited capital funds at this point. She said her first
instinct is to do a conservative renovation and save some money. She is unsure if that site
would work for affordable housing.
Commissioner Marcoplos asked if the proposed $7 million cost for a project on highway
70 would include proceeds if the Revere Road site sold for $2 million.
Commissioner McKee said he used the figures from option 2b. He said affordable
housing always seem to require the County to donate the property, in order to make the project
more affordable. He is unsure that there would be profit from using the Revere Road site for
affordable housing.
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Commissioner Marcoplos said there are persuasive arguments for renovating the
existing building, despite how ugly it is. He said he thinks the option for creating affordable
housing is a viable one, but he understands the financial rationale behind renovating the
current EAC.
Commissioner McKee said he agrees with Commissioner Marcoplos that it is nice to
think about a new building, but driving a used car, for the next few years, may be wiser than
driving a new one. He said from the perspective of those who use the current building, it is not
well laid out but the building itself is workable. He said he has never heard complaints from
the staff that work there.
Commissioner Rich asked if the turn around issues in the parking lot will be addressed,
should the plan to renovate the existing site move forward.
Kristin Hess said the majority of the money will be spent on the building, and as little as
possible on the outer site. She said the lot may be re-surfaced.
Jeff Thompson said the lot does need to be re-surfaced.
Kristin Hess said some of the utilities need to be upgraded, and sprinklers will need to
be added to the building. She said there is too much impervious surface on this site.
Commissioner Marcoplos asked if daylighting baffles could be brought in on the roof,
as well as varying the ceiling height.
Kristin Hess said this is a good strategy, but it is more expensive to do this, and would
increase the current cost estimates.
Commissioner Marcoplos said it would be worth the investment as employees have
better work product when there is daylight.
Commissioner Jacobs said whenever the Board votes, he hopes it leaves room for
recommendations that were proposed by the citizen group in the early 2000s.
Chair Dorosin said the affordable housing potential for this building should not be
underestimated, and he would be inclined to look at another site for the EAC. He said this site
is probably the best County owned parcel of land for affordable housing. He suggested
adding affordable housing as a second story to the renovated EAC.
Chair Dorosin said if the Board moves towards the renovations, he would ask that time
be taken to look at other points offered up by Commissioner Price and Commissioner Jacobs.
Commissioner Price said that is why she suggested renovating at this point, and then
look at other sites down the line.
Chair Dorosin said he would rather not spend money on the current site, with the intent
to abandon it. He would rather take three months looking for an alternate site, and if nothing is
found, then proceed with the renovation.
Commissioner Marcoplos asked if it makes sense to defer this decision in order to find
out more affordable housing possibilities. He said there is information still needed from the
original work group recommendations, affordable housing possibilities, as well as any potential
EAC sites on highway 70.
Bonnie Hammersley said the request is for the Board to share its preferred option or
options. She said staff wanted to have this discussion in order to receive further direction, and
the Board does not have to make any decisions at this point. She said staff will follow up on
Commissioner Jacobs' requests - more uses for the current site, and other options on the 70
corridor.
Chair Dorosin said staff will look at recommendations from original study group;
affordable housing calculations, including possible multi-use on the current site; and look at
other parcels on highway 70 corridor.
A motion was made by Commissioner McKee, seconded by Commissioner Price to
endorse option 1 as the preferred option, pending the review of the original work committee's
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recommendations; more information on the highway 70 corridor; the cost for daylighting; and
figures on affordable housing.
Commissioner Rich asked if there is a reason for endorsing option 1.
1) Major EAC Renovations — Revere Road: Perform major renovations to the existing EAC
facility at 306 Revere Road (see Attachment#2 for Revere Road EAC Site and Space
Plans);
• Additional CIP Funds Required: $235,000
Commissioner McKee said he heard the majority of the Board stating a preference for
option 1, and he would like that to be the focus, noting that the new information may change
the direction of the plan at some point.
Commissioner Jacobs said the two motions were not that different, and are generally
tracking with each other. He said he is comfortable with Commissioner McKee's motion.
Commissioner McKee withdrew his motion, and instead made a motion for option 1 to
be the preferred option.
Chair Dorosin said if the option 1 stands alone, it may decrease the value of the other
information that the Board desires.
Commissioner McKee said to let his original motion stand.
VOTE: Ayes, 4 (Commissioner McKee, Commissioner Jacobs, Commissioner Burroughs,
Commissioner Price); Nays, 3 (Commissioner Rich, Commissioner Marcoplos, Chair Dorosin)
b. Revisions to Schools FY 2016-17 CIP and Approval of Property Acquisition
The Board considered approving the amendments to the FY 2016-17 School Capital
Investment Program based on changes to both school systems project listing and approve the
acquisition of the Orange Charter School Facility by Orange County Schools pursuant to the
Capital Funding Policy.
Gary Donaldson said any revisions in the price of capital projects must come back for
approval by the Board.
Chapel Hill-Carrboro City Schools (CHCCS) —Assistant Superintendent Todd LoFrese
Todd LoFrese said the CHCCS projects slated for the bond funds have undergone
some adjustments. He said two things lead to the adjustment of the project budget: the bond
proceeds and distribution changed over time; and the construction costs have increased (from
2013). He said the Lincoln Center project is now estimated at $25 million, and Chapel Hill High
is now at $47 million now.
Commissioner Rich referred to a turn lane that is required by the Chapel Hill Town
Council, and asked if the funding source for this project has been identified.
Todd LoFrese said this expense will come from project budget.
Commissioner Rich asked if this was already budgeted into the Lincoln Center project.
Todd LoFrese said no, not to the extent required by the Town Council. He said a traffic
study has been required as well.
Commissioner Rich asked if it is known who will measure the traffic flow, and what
further recommendations will be made.
Todd LoFrese said he does not know what else may be recommended, but the district
will pay a traffic consultant of the Town's choosing to do a study. He said he does not know
what recommendations would result from the study.
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Commissioner Rich asked if there was any funding set aside for the recommendations
that arise from the traffic study.
Todd LoFrese said bid day will determine the final budget, and whether there are any
funds left over.
Chair Dorosin asked if the numbers in the attachment will cover all costs for the Lincoln
Center and Chapel Hill High projects.
Todd LoFrese said it is not entirely clear, but this is the closest budget that can be
made prior to bids being received. He said the district can reserve some of its fund balance
should the project budgets require additional funds.
Commissioner McKee said the $47 million for Chapel Hill High is less than he
remembered being discussed at one time, and he asked if any structural unit was removed
from the project.
Todd LoFrese said this is connected to the amount of funding received. He said the
design process for the high school is still underway, and design decisions along the way drive
the budget. He said he is concerned about increasing costs and fears a surprise on bid day.
He said this project is not slated to go out to bid for another year. He said the district is
monitoring this closely and is working on strategies to control the costs.
Commissioner McKee said he understands it is a moving target, and he wondered if
there is an identified portion of the plan that can be cut in order to make the rest of the project
move forward.
Todd LoFrese said the project consists of two major components: to build a new
academic wing, and to renovate existing spaces. He said the extent of possible renovations is
likely what would suffer should costs be higher than expected.
Commissioner Jacobs asked Bonnie Hammersley if she was able to find the BOCC
policy, from the late 1990s, about reviewing school capital projects before they are executed.
Bonnie Hammersley said staff was unable to find anything. She said there were only
construction standards.
Commissioner Jacobs asked if the Clerk's staff could research this.
Commissioner Jacobs said he will not vote in favor of these changes, as the BOCC has
received very little information about them. He said it is $70 million, and the plans have barely
been run by the BOCC. He said this is not consistent with past BOCC policies, and he feels
the Board is not being a responsible steward in allocating money without reviewing the details
of the plans.
Commissioner Burroughs said the planning for these projects has been going on in a
public manner for five years, and there are two elected school boards who have done their due
diligence.
Orange County Schools (OCS) — Dr. Todd Wirt
Todd Wirt gave a brief description of the planned use of the Orange Charter School
(920 Corporate Drive) as an OCS facility. He said the classroom wing addition will be removed
at Cedar Ridge High School from the CIP, but will go on through school construction impact
fees. He highlighted the following uses for the Orange Charter School facility:
• Building 1
o One stop shop for parents for services (nutrition, after school, translation, etc.)
• Building 2
o Blended learning academy (online and face-to-face education)
o Flexible learning sites
o Possible partnership with Durham Tech
o Evening academy
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o Science lab for hands-on enrichment to an online science course
o Project and collaboration rooms
o Fitness area
o Café
Todd Wirt said there are other programs like this around the country, and he was a part
of developing one at his previous district. He said they have been successful in other parts of
the country. He said some other implications for existing facilities would be that the annex
currently houses the curriculum and instruction department, and it would be proposed that the
Information and Technology department move to the annex. He said this would move
technology out of Orange High School. He said the existing partnership academy could be
narrowed and be more focused on an alternative to both short and long term suspension. He
said there has been discussion about a possible site for Boomerang in Hillsborough, which
could be a part of this as well.
Todd Wirt said removing the technology from Orange High does not allow for a great
deal of additional capacity, but it could house the hands on portion of the new fire tech
academy that OCS will begin at the high school in the next school year.
Commissioner McKee asked if CHCCS is picking up an equal cost for the
transportation facility through funding venues outside of the bond monies.
Pam Jones, Deputy Superintendent, said it is not an equal amount of funding since
OCS is the lead LEA that is responsible. She said the BOCC gave an older facilities
assessment for five years, and that money would be dedicated by CHCCS for this project.
She said this is in the fifth year of the bond, allowing time to accumulate the necessary capital.
Commissioner Rich recommended that the school boards contact legislators about the
impact fees, and how any change to them could affect schools.
Commissioner Jacobs encouraged the CHCCS School Board to contact the Chapel Hill
Chamber of Commerce to reiterate the importance of impact fees. He said the only alternative
is to raise property taxes.
A motion was made by Commissioner Burroughs, seconded by Commissioner Price for
the Board to approve the amendments to the FY 2016-17 Capital Investment Plan and the
attached list of projects including the acquisition of the Orange Charter School Facility.
Commissioner Rich asked if there is a plan in place if the project costs change.
Bonnie Hammersley said if there is a change in allocation of funds, the districts need to
come back before the BOCC; if the districts do not spend as much on one project, and want to
move funds to another project, the districts are required to come back to the BOCC.
Commissioner Rich clarified that if there are any changes to the project cost sheet, the
districts must come back to the BOCC.
Bonnie Hammersley said yes.
Commissioner Marcoplos asked if in a year the bid on Chapel Hill High goes up to $55
million, but CHCCS adjusts its plans to only spend the approved $47 million, would CHCCS
need to come back to the BOCC.
Bonnie Hammersley said CHCCS only needs to come back to the BOCC is there is a
change in the amount of funds that is needed.
VOTE: Ayes, 6; Nays, 1 (Commissioner Jacobs)
Commissioner Jacobs said he is not opposed to any of the projects, but he is opposed
to how some of them have been advanced.
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c. Extension of Development of Affordable Housing in Orange County Utilizing
County Owned Property (RFP #5229) Deadline for Submission of Proposals
The Board considered a 60-day extension of the deadline to submit proposals for the
Development of Affordable Housing in Orange County Utilizing County Owned Property
Request for Proposal ("RFP") # 5229 and adopt the revised timeline at Attachment 2.
Travis Myren said when the original timeline was approved in February 2017, staff
envisioned issuing two RFPs: one for the bond funds, and one for a list of 10 County owned
properties that would be available for affordable housing development. He said staff
anticipated these proceeding along the same time line until a couple of weeks ago, when staff
received a request from the Affordable Housing Coalition to extend the RFP deadline for the
County owned properties, while maintaining the RFP deadline for the bond funds.
Travis Myren said the County owned land requires a bit more due diligence than was
originally anticipated. He said the 60-day delay would make these RFPs due at the end of
May, and they would return for the Board's recommended approval at the first meeting in
September. He said the only wrinkle is that there may be projects using County owned land
that also seek bond funds to subsidize the development. He said in this case the Board may
wish to hold back some amount of money at the June approvals. He said alternative-funding
sources could also be pursued.
PUBLIC COMMENT:
Dan Levine said he works with Self Help and is here to speak on behalf of the
Affordable Housing Coalition. He said the extension was requested because the County
owned parcels of land are new to the housing development partner providers, and he said
there is a desire to study the parcels properly and meet the request of the BOCC to collaborate
and be creative.
Commissioner Burroughs said she is in support of this extension.
Commissioner Rich asked if applications are still going to be accepted whenever, and
what will happen while waiting on the other applications in June.
Travis Myren said yes, and this will follow the timeline in Attachment 1. He said staff
and stakeholders will evaluate proposals that come in on March 31st, and no time will be lost
on the bond fund portion of this two-phased approach.
Commissioner Rich asked if there is a plan for the second phase.
Travis Myren said it would be the same process as the first.
Commissioner Rich asked if money will be held back.
Travis Myren said staff will have to discuss what, if any, amount gets held back with the
BOCC when it makes recommendations about the bond funding.
Commissioner Jacobs referred to the idea of holding money back, and asked if this is
$2.5 million.
Travis Myren said the Board may choose not to award the entire $2.5 million in June.
Commissioner Jacobs said he would like to have a conversation about a long-term
strategy for the other $2.5 million, since there will probably not be another affordable housing
bond any time soon. He said there is not a lot of leeway in the operating budget, and there will
be a desire to do more projects, but the County must not run out of money.
Commissioner Marcoplos said he agreed with Commissioner Jacobs, and he said there
was a well-attended presentation about a project that saved a trailer park in Charlottesville,
VA. He said he would like to talk about such an idea here, as well as other creative ideas.
Commissioner Price asked if a decision has been reached about a limit per applicant
for bond funds.
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Travis Myren said the only limitation that currently exists is that only $2.5 million will be
allocated during the first draw. He said there is no limit on how much an applicant can request.
Chair Dorosin said he is not in favor of setting aside a pot of money since it suggested
that projects can be scored apart from each other. He said the highest scoring project in pile
two, may be the lowest scoring project in pile one. He said he would be in favor of being more
flexible in this area, and he said there is other money put aside for affordable housing, and
land could be given away as a way to subsidize. He said he would not want to do anything
that constrains projects.
A motion was made by Commissioner Burroughs, seconded by Commissioner Price for
the Board to extend the timeline for RFP #5229 for 60 more days and adopt the revised
timeline at Attachment 2; and reaffirm the sense of flexibility and not set aside pots of money.
Commissioner Rich asked if the plan to create a long-term strategy for additional
monies could be added to the motion.
Commissioners Burroughs and Price agreed.
VOTE: UNANIMOUS
7. Reports
NONE
8. Consent Agenda
• Removal of Any Items from Consent Agenda
None
• Approval of Remaining Consent Agenda
A motion was made by Commissioner Rich, seconded by Commissioner Burroughs to
approve the remaining 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 as submitted by the Clerk to the Board for the February 21,
2017 BOCC Regular Meeting; and the February 23, 2017 BOCC Joint Meeting with Town of
Hillsborough.
b. 2017 Amendment to County Sheriff's Office: Records Retention and Disposition
Schedule
The Board approved the County Sheriff's Office: Records Retention Schedule Amendment,
dated October 1, 2016; and authorized the Chair to sign the Amendment.
c. Fiscal Year 2016-17 Budget Amendment#7
The Board approved the budget ordinance amendments for fiscal year 2016-17 to the
Department of Social Services; Department of Environment, Agriculture, Parks and Recreation;
Department of Aging; Health Department; Animal Services Department; Efland Volunteer Fire
Department; and New Hope Volunteer Fire Department.
25
d. Request for Road Addition to the State Maintained Secondary Road System (Eubanks
Road — SR 1727, Partial), and Secondary Road Abandonment of Maintenance (Eubanks
Road, SR 1727, Partial)
Enterprise Asset Management Facilities Software Purchase and Support Agreement
The Board: 1) Forwarded the Petition for Addition to the State Maintained System to the North
Carolina Department of Transportation for Eubanks Road — SR 1727 (partial); 2)
Recommended the NCDOT accept the road (partial) for maintenance as State Secondary
Roads; and 3) Adopted the Resolution requesting that the NCDOT execute abandonment of
maintenance of SR1727 — Eubanks Road (Partial).
9. County Manager's Report
Projected March 28, 2017 Regular Work Session Items
• Boards and Commissions Annual Action Plans
• Discussion Regarding Election Method for Members of the Orange County Board of
Commissioners
10. County Attorney's Report
NONE
11. *Appointments
c. Board of Equalization and Review—Appointments
The Board considered making 10 appointments to the Board of Equalization and
Review.
Chair Dorosin asked if the Attorney and Tax Administrator could offer specific training
to new board members in light of the revaluation and likely appeals.
John Roberts said this is already planned.
The Board agreed by consensus.
A motion was made by Commissioner Marcoplos, seconded by Commissioner Price to
appoint Pam Davis to the Board of Equalization and Review.
VOTE: UNANIMOUS
A motion was made by Commissioner Jacobs, seconded by Commissioner Price to
appoint Robert Sprouse to the Board of Equalization and Review.
VOTE: UNANIMOUS
A motion was made by Commissioner Marcoplos, seconded by Commissioner Jacobs
to appoint Reginald Morgan to the Board of Equalization and Review.
VOTE: UNANIMOUS
A motion was made by Commissioner Price, seconded by Commissioner Jacobs to
appoint the remaining members as alternates.
VOTE: UNANIMOUS
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A motion was made by Commissioner Jacobs, seconded by Commissioner Price to
appoint Pam Davis as Chair.
VOTE: UNANIMOUS
POSITION NO. NAME SPECIAL REPRESENTATIVE EXPIRATION
DATE
1 Pam Davis - Chair Regular Member 03/31/2019
2 Robert Sprouse Regular Member 03/31/2019
3 Reginald Morgan Regular Member 03/31/2019
4 Barry Beuhler Alternate Member 03/31/2019
5 Randy Herman Alternate Member 03/31/2019
6 Barbara Levine Alternate Member 03/31/2019
7 Karen Morrisette Alternate Member 03/31/2019
8 Blaine Schmidt Alternate Member 03/31/2019
9 Dennis Strachota Alternate Member 03/31/2019
10 Alternate Member 03/31/2019
VOTE: UNANIMOUS
d. Chapel Hill Planning Commission —Appointment
The Board will consider making an appointment to the Chapel Hill Planning
Commission.
A motion was made by Commissioner McKee, seconded by Commissioner Price to
appoint the following to the Chapel Hill Planning Commission:
• Appointment to a partial term (Position #2) "ETJ or JPA BOCC Appointee"
representative for Michael Everhart expiring 06/30/2017.
VOTE: UNANIMOUS
Addition of Board of Health Appointment
f. Board of Health (BOH) Appointment
The Board considered further discussing the appointment to the Board of Health that
was formally made at the Commissioners' February 7, 2017 Regular Meeting.
Chair Dorosin said the original appointee, Dr. Barber, received a letter explaining the
BOH bylaws. He said Dr, Barber did not respond to the letter, but when contacted by the
Clerk's office, Dr. Barber said she would still like to serve.
Chair Dorosin said it is time to bring some closure to this issue. He said the
appointment can stand, or the appointment can be rescinded.
Commissioner McKee said this is an unfortunate situation, but he thinks it is best to let
the appointment stand.
Commissioner Marcoplos said Dr. Barber received a letter and did not respect the
process nor did she respond.
Commissioner Price agreed with Commissioner McKee, and said she disagreed with
the bylaws of the Health Department since the Board of Commissioners did not approve them.
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She said to let the appointment stand.
Commissioner Rich said she has concerns that Dr. Barber did not respond to the letter
sent by the Chair, and she will vote against leaving her in the position.
Commissioner Burroughs said she will be voting negatively for this appointee.
Chair Dorosin said he feels the BOCC needs to seat Dr. Barber, as the County made
the mistake since the Board did not have full disclosure. He said there was some poor
communication between the Health department and the BOCC.
A motion was made by Commissioner McKee, seconded by Commissioner Price to let
appointment stand.
VOTE: Ayes, 3 (Commissioner McKee, Commissioner Price, Chair Dorosin); Nays, 4
(Commissioner Rich, Commissioner Marcoplos, Commissioner Jacobs, Commissioner
Burroughs)
Motion failed.
John Roberts said the Board needs to make the five bullet point findings noted in the
abstract, if it plans to rescind the appointment. He said there needs to be factual background
and legal reasons stated.
Commissioner McKee asked if the failure of his motion effectively unseats Dr. Barber.
John Roberts said his vote was to leave things as they are, and to rescind the
appointment, requires a proactive motion to do so. He said the seat has been appointed, but
no one has taken the seat or an oath of office.
A motion was made by Commissioner Burroughs, seconded by Commissioner Rich to
rescind the appointment of Dr. Barber based on the findings below:
• The Board was unaware of the existence of the Board of Health bylaws that prohibit the
appointment of former health department employees to the Board of Health;
• The Board acknowledges that the bylaws are not binding upon the Board's
appointment process;
• The Board, however, desires to remain in compliance with the bylaws to avoid any
unnecessary conflicts among Board of Health members or between Board of Health
members and the health department and its employees;
• Dr. Barber has not taken the oath of office associated with membership on the Board of
Health or assumed any duties related to such membership and has therefore not
officially been appointed to that Board;
• For these reasons the original appointment of Dr. Barber to the Board of Health is
rescinded.
Commissioner Jacobs apologized to Dr. Barber, and said he feels the bylaws are
misguided, and if one has served in the health department that it should not preclude one from
serving on the BOH.
Commissioner Price said she disagreed with the bylaws.
VOTE: Ayes, 4 (Commissioner Burroughs, Commissioner Rich, Commissioner Jacobs,
Commissioner Marcoplos); Nays, 3 (Commissioner Dorosin, Commissioner Price,
Commissioner McKee)
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A motion was made by Commissioner Burroughs, seconded by Commissioner
Marcoplos to appoint Johanna Birckmayer to position 8.
Commissioner McKee said he will not be able to vote for this appointment in order to
stay consistent with his beliefs that the original appointment should stand. He said, however,
his vote against this motion has no bearing on Dr. Birkmayer's qualifications or fitness to serve.
Commissioner Price echoed Commissioner McKee's comments.
VOTE: Ayes, 4 (Commissioner Burroughs, Commissioner Jacobs, Commissioner Rich,
Commissioner Marcoplos); Nays, 3 (Chair Dorosin, Commissioner McKee, Commissioner
Price)
12. Information Items
• March 7, 2017 BOCC Meeting Follow-up Actions List
• Memo Regarding Historic Rogers Road Sewer Project Advertisement and Bid Schedule
• Memo Regarding Safe Routes to School (SRTS) Plan Next Steps
• Memo Regarding Single Occupancy Restrooms, Cameron Street Sidewalk Update and
Historic Courthouse Update
• BOCC Chair Letter Regarding Petitions from March 7, 2017 Meeting
13. Closed Session
A motion was made by Commissioner Rich, seconded by Commissioner Marcoplos to
go into closed session at 10:10 p.m. for the purpose below:
"Pursuant to G.S. § 143-318.11(a)(3) "to consult with an attorney retained by the Board in
order to preserve the attorney-client privilege between the attorney and the Board."
VOTE: UNANIMOUS
RECONVENE INTO REGULAR SESSION
A motion was made by Commissioner Jacobs seconded Commissioner McKee by to
reconvene into regular session at 10:55pm.
VOTE: UNANIMOUS
The Board then discussed a meeting earlier today that included the BOCC Chair, the County's
GoTriangle Representative Commissioner Jacobs and Manager and Deputy Manager along
with elected officials and staff from Durham County and GoTriangle.
Commissioner Jacobs gave an update to the Board on a meeting held earlier in the day in
reference to the light rail discussion which included Chair Dorosin, BOCC Go Triangle
Representative Commissioner Jacobs and Manager/Deputy Manager along with elected
officials and staff from Durham County and GoTriangle staff on cost sharing.
He referred to a Scenario E which uses the more conservative sales tax projections. The
elected officials directed GoTriangle to show how this shortfall could be resolved by providing
specific cost cutting strategies. This scenario uses a capital cost share of 82% Durham and
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18% Orange and an operating cost share of 80% Durham and 20% Orange. This scenario
also includes the original Chapel Hill BRT scope with a total project cost of approximately $25
million. The model cannot support both the light rail project and the expanded BRT project
through tax district funds alone.
Commissioner Jacobs said that both Orange County and Durham County elected officials
agreed in a closed session at the meeting without GoTriangle representatives present that
changes needed to be made for this plan to work.
VOTE: UNANIMOUS
14. Adjournment
A motion was made by Commissioner Jacobs, seconded by Commissioner Burroughs
to adjourn the meeting at 11:05 p.m.
Mark Dorosin, Chair
Donna Baker
Clerk to the Board