HomeMy WebLinkAboutMinutes 06-20-2017 1
APPROVED 9/5/2017
MINUTES
BOARD OF COMMISSIONERS
REGULAR MEETING
June 20, 2017
7:00 p.m.
The Orange County Board of Commissioners met in regular session on Tuesday, June 20,
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,
Mark Dorosin, 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 7:00 p.m.
1. Additions or Changes to the Agenda
Chair Dorosin noted the following items at the Commissioners' places:
-Yellow sheet: Item 4a revised proclamation for Orange High School Softball Team
- Pink sheet: Item 4-d Commissioner Jacobs- historical resolution on Fracking
- Green sheet: Item 6a- Budget Ordinance- Commissioner Price's request for budget
amendment
- Orange/Coral sheet: Item 6-d Signed Operation agreements for 2 Community Centers
- White sheet: PowerPoint for Item 6-a
- White sheet: PowerPoint for Item 6-d
- White sheet: Item 6a- Resolution of intent and county benefit plan
- Blue sheet: Item 8-d- RENA Signed agreement
- White sheet: PowerPoint from Commissioner Jacobs —2045 Metropolitan Transportation
Plan
(MTP)- Deficiency Analysis
Chair Dorosin suggested moving item 11- b: Animal Services Advisory Board (ASAB)
Appointments, up to position 4-e, as the Chair of the ASAB and the Director of the Department
were present.
The Board agreed by consensus.
PUBLIC CHARGE
Chair Dorosin dispensed with the reading of the public charge.
2. Public Comments
a. Matters not on the Printed Agenda
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Roland Russell reviewed a written summary from Human Relations Committee
(HRC) Town Hall Meeting pertaining to the question: "The Confederate Flag: Does It
Belong In Our Schools?" He also reviewed details about the upcoming "Community
Read" Book. He thanked the Board of County Commissioners (BOCC) for its ongoing
support.
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 McKee said he was glad Mr. Russell brought the Community Read book
to the Board's attention.
Commissioner Jacobs said he asked Steve Brantley, Economic Development Director,
if he would provide an analysis of HB 795, which has been sent to the Board. He asked if the
Board would deem it appropriate to send this analysis on to the North Carolina Association of
County Commissioners (NCACC).
Commissioner Jacobs requested that the Department of Environment, Agriculture,
Parks and Recreation (DEAPR) make a presentation to the Board in the fall about the Lands
Legacy program.
Commissioner Jacobs said something went from the OUTBoard directly to the
Metropolitan Planning Organization (MPO) agenda, without the Board or the Town of Carrboro
seeing it first, and this process should be improved.
Commissioner Jacobs reviewed the Deficiency Analysis PowerPoint at the
Commissioners' places, which looks at the changes between now and 2045. He said page 14
refers to regional travel times and is particularly interesting. He said alternatives are being
studied, such as managed motorways or smart highways, which the MPO will be studying.
Commissioner Rich said the one-year celebration of the Cedar Grove Community
Center was held this past Saturday.
Commissioner Burroughs said she had no comments.
Commissioner Price asked if the agenda review committee could find a creative
process to get advisory chair reports to the Board of County Commissioners. She said this
does not have to be a long report, and could be more akin to a flyer or a poster.
Commissioner Price said the Raise the Age Bill has been placed in the budget, and
there may be some legislators who support the bill but do not support the budget. She said
this is unfortunate.
Commissioner Price said the youth representative at the NCACC annual conference
will be Zachary Sellers from Orange High School.
Commissioner Marcoplos said he had no comments.
Chair Dorosin said to add Commissioner Price's request to the advisory board work
session in the fall.
Chair Dorosin asked if there was any opposition from the Board in authorizing Steve
Brantley and Bonnie Hammersley to proceed with Commissioner Jacobs' request regarding the
analysis of HB 795.
There was no opposition from the Board.
Chair Dorosin instructed Steve Brantley and Bonnie Hammersley to proceed.
Chair Dorosin asked if there could be greater clarification regarding the communication
process between the OUTBoard and MPO.
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Commissioner Jacobs said this particular communication affected Carrboro's
jurisdiction, and it was the Town of Carrboro that brought it to the attention of the MPO. He
said the BOCC did not review this project before it was forwarded. He said Orange County is
receiving very little funding from the MPO, and he believes the OUTBoard was being more
aggressive in a good faith attempt to secure more funds, but there needs to be a clearly
defined process.
Chair Dorosin said the entire BOCC just came from the groundbreaking of the Rogers
Road water and sewer line installation.
4. Proclamations/ Resolutions/ Special Presentations
a. Proclamation Recognizing Orange High School Softball Team Winning the 2017
State Championship
The Board considered approving a proclamation recognizing the Orange High School
Softball Team for winning the 2017 State Championship and authorizing the Chair to sign.
Eddie Davidson, Orange High School's Softball Coach, and team members were in
attendance.
Commissioner Jacobs read the proclamation:
ORANGE COUNTY BOARD OF COMMISSIONERS
PROCLAMATION OF RECOGNITION ON
ORANGE HIGH SCHOOL SOFTBALL TEAM
WINNING THE 2017 STATE CHAMPIONSHIP
WHEREAS, on June 3, 2017, the Orange High School Softball Team captured the North
Carolina High School Athletic Association's (NCHSAA) 3A State Softball
Championship; and
WHEREAS, under the guidance of Coach Eddie Davidson, the Orange High School Softball
Team earned its first NCHSAA State title in Orange High history; and
WHEREAS, the Lady Panthers completed the season with a 26-3 record; and
WHEREAS, the Orange High School Softball Team included the Gatorade North Carolina
Softball Player of the Year for 2016-17, Mia Davidson; and
WHEREAS, through hard work, dedication, teamwork, and commitment, the Lady Panthers
brought honor upon themselves, Orange High School, the Orange County
School District, and Orange County;
NOW, THEREFORE, be it proclaimed that the Orange County Board of Commissioners
expresses its sincere appreciation and respect for the Orange High School
Softball Team and Coach Davidson, for the Panthers' outstanding
achievement, and their inspiration to youth across North Carolina through their
dedication, teamwork, and athletic prowess.
This the 20th day of June 2017.
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A motion was made by Commissioner Jacobs, seconded by Commissioner Rich for the
Board to approve the proclamation recognizing Orange High School's Softball Team for
winning the 2017 State Championship and authorized the Chair to sign the proclamation on
behalf of the Board.
VOTE: UNANIMOUS
b. Proclamation Recognizing Carrboro High School Women's Soccer Team Winning
the 2017 State Championship
The Board considered approving a proclamation recognizing the Carrboro High School
Women's Soccer Team for winning the 2017 State Championship and authorizing the Chair to
sign.
Coach Jared Drexler and team members were present.
Commissioner Burroughs read the proclamation:
ORANGE COUNTY BOARD OF COMMISSIONERS
PROCLAMATION OF RECOGNITION ON
CARRBORO HIGH SCHOOL WOMEN'S SOCCER TEAM
WINNING THE 2017 STATE CHAMPIONSHIP
WHEREAS, on May 27, 2017, the Carrboro High School Women's Soccer Team captured the
North Carolina High School Athletic Association's (NCHSAA) 2A State
Women's Soccer Championship; and
WHEREAS, under the guidance of Coach Jared Drexler, the Carrboro High School Women's
Soccer Team earned its fourth NCHSAA State title, also winning the State title
in 2012, 2015 and 2016; and
WHEREAS, the Lady Jaguars completed the season with a 21-1-1 record; and
WHEREAS, through hard work, dedication, teamwork, and commitment, the Lady Jaguars
brought honor upon themselves, Carrboro High School, the Chapel Hill /
Carrboro City Schools District and Orange County;
NOW, THEREFORE, be it proclaimed that the Orange County Board of Commissioners
expresses its sincere appreciation and respect for the Carrboro High School
Women's Soccer Team and Coach Drexler, for the Jaguars' outstanding
achievement, and their inspiration to youth across North Carolina through their
dedication, teamwork, and athletic prowess.
This the 20th day of June 2017.
A motion was made by Commissioner Burroughs, seconded by Commissioner Rich for
the Board to approve the proclamation recognizing the Carrboro High School Women's Soccer
Team for winning the 2017 State Championship and authorized the Chair to sign the
proclamation on behalf of the Board.
VOTE: UNANIMOUS
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c. USDA Rural Business Development Grant Award for the Piedmont Food &
Agricultural Processing Center(PFAP) and Approval of Budget Amendment#10-B
The Board received a brief presentation from staff from the United States Department
of Agriculture (USDA) (Henderson, NC Area Office) regarding the Letter of Conditions, along
with the Draft Addenda, for the award of a USDA Rural Business Development Grant in the
amount of$145,511 to Orange County and the Piedmont Food and Agricultural Processing
Center; consider approving Budget Amendment#10-B to accept the award, its Conditions and
the associated Draft Addenda, subject to final review and approval by the County Attorney's
Office; and authorize the Manager to sign any paperwork associated with grant subject to final
review and approval by the County Attorney's Office.
BACKGROUND:
Orange County and the Piedmont Food and Agricultural Center applied for funding through the
USDA Rural Business Development grant program and have been awarded $145,511. Of
these funds, $92,186 will be used to purchase additional capital equipment with which to
expand the capabilities and capacity of PFAP to serve the region's food entrepreneurs. In
addition, $53,325 is directed at providing business support services and creation of a "road
map" for start-up food businesses in collaboration with Carolina Farm Stewardship Association
(CFSA).
A pre-condition of accepting the award is a presentation of the grant conditions to the
governing board of the grant recipient, in this case the Board of Commissioners for Orange
County. A representative from the Henderson, NC Area Office will provide a brief presentation
at the meeting, after which it is proposed that the Board approve Budget Amendment#10-B to
accept the award, its Conditions and the Draft Addenda, subject to final review and approval
by the County Attorney's Office.
Mike Ortosky, Orange County Agricultural Economic Developer, presented the
background information.
Mike Ortosky introduced Eric Hallman, PFAP Executive Director, and Hilda Hawkins,
Community Program Specialist with Rural Development Agency of the USDA.
Eric Hallman gave background.
Hilda Hawkins reviewed the grant, and the scope of the work.
Commissioner Jacobs said he represented the Board of County Commissioners on the
PFAP board, and over time the board has realized that some of the equipment is not useful,
and thus has sold some equipment, and is acquiring more appropriate equipment. He said this
is a 4-county project, and PFAP is working as it was intended: growing businesses that then
go out on their own. He said they are in an interim stage, where there are a lot of clients, but
they are small clients.
Commissioner McKee said PFAP should stand for opportunity.
A motion was made by Commissioner McKee, seconded by Commissioner Burroughs
for the Board to:
• to approve Budget Amendment#10-B to accept the award, its Conditions and the
associated Draft Addenda, subject to final review and approval by the County
Attorney's Office; and
• Authorize the Manager to sign any paperwork associated with grant subject to final
review and approval by the County Attorney's Office.
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VOTE: UNANIMOUS
d. Proposed Resolution Regarding Reduction of Methane Emissions
The Board considered adopting a resolution to petition the Governor of North Carolina
to enact certain measures intended to reduce emissions of methane related to the use of
natural gas and power generation.
BACKGROUND:
As initially introduced at the June 6, 2017 Board of County Commissioners meeting, this
resolution petitions the Governor of North Carolina to take steps to reduce emissions of
methane associated with the increased use of natural gas produced through the process of
hydraulic fracturing ("fracking"). Natural gas is often termed a "bridge" interim source of energy
on the path to a future where renewable energy sources dominate. However, the production
and use of natural gas often includes sizeable releases of methane, a very significant
greenhouse gas.
This resolution asks the Governor of North Carolina to take steps to reduce the use of natural
gas in North Carolina that is produced by fracking, as well as prevent the transport of natural
gas produced by fracking through North Carolina, and prevent the construction of new natural
gas fired power plants and pipelines in the state while existing natural gas fired power plants
and pipelines are replaced with sources of renewable energy.
Commissioner Marcoplos said every "Whereas" in the resolution is followed by a
footnote, which can be reviewed in detail by reading the resolution on line.
Commissioner Marcoplos read the resolution:
RESOLUTION TO SLOW THE CLIMATE CRISIS BY REDUCING METHANE EMISSIONS
FROM THE FRACKED GAS AND POWER INDUSTRIES
WHEREAS, an unprecedented, three-year global heat wave,' ongoing sea level rise and
increasingly intense weather extremes are already devastating communities, wildlife and
property in North Carolina and around the world;2 and
WHEREAS, those least responsible for causing this crisis have been hurt first and worst,
primarily low-wealth communities and people of color, and humanity is quickly running out of
time to slow this enormous challenge before it accelerates under its own momentum beyond
our control; Sand
WHEREAS, methane is 80-100 times more potent than carbon dioxide at trapping Earth's
heat,3 and has become the driving force behind the rapid heating of the planet;4 and
WHEREAS, large amounts of natural gas —which is mostly methane — are being vented and
leaked directly into the air from various gas equipment, with emissions measured at rates of up
to 12% of the total gas produced by wells using fracking technology;5 and
WHEREAS, these emissions make burning natural gas for electricity at least three times worse
for the climate than coal,6 in addition to other health impacts and explosion risks;' and
WHEREAS, the recent surge in methane emissions is largely due to the US fracking boom,8
which is being driven by Duke Energy and other utilities' expanded use of gas to generate
electricity;9 and
WHEREAS, most US gas and electricity corporations are fighting efforts to reduce methane
emissions; 10 and
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WHEREAS, reducing methane emissions can be achieved quickly and cost-effectively while
creating thousands of jobs;11 and
WHEREAS, immediately reducing methane emissions from the US natural gas industry can
slow global warming enough to allow time to replace fossil fuels with cheaper clean energy
such as solar, wind and storage technologies;12 and,
NOW THEREFORE be it resolved that North Carolina Governor Roy Cooper shall use his
constitutionally-granted executive authority to ensure that:
• by December 31, 2018 no natural gas originating from fracking operations is used in or
transported through North Carolina;
• by December 31, 2022 no other natural gas is used in or transported through North
Carolina unless it can be verified that the methane emissions associated with its
production, transportation, and end use are at most 0.5% of gas pumped from the well;
and
• no new natural gas-fired power plants or pipelines are constructed in North Carolina,
and all existing gas plants and pipelines are phased out expeditiously and replaced
with clean, renewable energy.
A motion was made by Commissioner Marcoplos, seconded by Commissioner Jacobs
to adopt the resolution.
Commissioner Jacobs said the hot pink sheet at the Commissioners' places is a 2012
Board of County Commissioners' resolution opposing Shale Gas development.
Commissioner McKee said he does not dispute any of the "whereas" statements, and
he has extreme concerns about the fracking industry. He said he will be prevented from voting
for this due to the "be it resolved" statement, where it reads "by December 31, 2018 no natural
gas originating from fracking operations is used in or transported through North Carolina." He
said there is no way to differentiate what gas is in the pipelines, and so he sees this as
unenforceable.
Commissioner McKee said he also has concerns with "by December 31, 2022 no other
natural gas is used in or transported through North Carolina unless it can be verified that the
methane emissions associated with its production, transportation, and end use are at most
0.5% of gas pumped from the well," as he does not know what "the well" means, or how the
content of the gas can be differentiated.
Commissioner McKee said the final point, which states, "no new natural gas-fired power
plants or pipelines are constructed in North Carolina, and all existing gas plants and pipelines
are phased out expeditiously and replaced with clean, renewable energy" is also troublesome
for the same reasons. He agrees that renewable energy is the only long-term solution, but he
does not believe that it is possible or appropriate to set a deadline of 2018 or 2022, as it is
unrealistic. He said if the gas lines are shut down in the short term, the impact will fall heaviest
on those least able to afford it, as it must be replaced either by coal or some other more
expensive option.
Commissioner McKee asked if the motion maker and seconder would be willing to
replace the "be it resolved" section with the language from the 2012 resolution, which he read:
"NOW, THEREFORE, BE IT RESOLVED, that the Orange County Board of Commissioners
does hereby urge the North Carolina General Assembly to maintain existing laws and
regulations that prevent the use of horizontal drilling and hydraulic fracturing in the State and
to take no action that would weaken these laws and regulations before it is fully demonstrated
that North Carolina public health, waters, land, air, economy, and quality of life can be
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protected from impacts that may occur by allowing the development of shale gas resources in
the state."
He proposed this change as a friendly amendment.
Commissioner Marcoplos said he could not accept this.
Commissioner Price said she has concern with mentioning Duke Energy by name. She
proposed a friendly amendment to list all gas companies, or none at all.
Commissioner Marcoplos said he would not accept that friendly amendment either,
because Duke Energy is the largest utility in North Carolina, and one of the largest in the
world, and great strides can be made on climate change if Duke Energy can accept a
renewable energy future.
Commissioner Marcoplos said there is someone in the audience that can speak on the
measurement piece, to which Commissioner McKee referred.
John Runkle said he is a counsel for NC Warn, and he said the reason it needs to go to
the Governor is because he has strong executive powers. He said the Governor has already
kept North Carolina in the Paris Climate Accord, and it is recommended that he conduct a
green ribbon panel to study how to measure the difference between the fracked and non-
fracked gas. He said there is also a great deal that the agencies can do, so even if it cannot
be measured the sources can be identified. He said the Governor would have to develop a
process to move forward with this, and it is a real emergency.
Commissioner Marcoplos said economics are always a factor in discussions like these,
and it is becoming clear that the most costly thing that can be done is doing nothing at all. He
said the impact of energy must be lowered.
VOTE: Ayes, 6; Nays, 1 (Commissioner McKee)
a. Animal Services Advisory Board —Appointments
The Board will consider making appointments to the Animal Services Advisory Board.
A motion was made by Commissioner Jacobs, seconded by Commissioner Rich to
appoint the following to the Animal Services Advisory Board:
• Appointment to a third full term (Position #1) "Veterinarian from the Health Board"
representative for Dr. Susan Elmore expiring 06/30/2020. (This position was changed
to a 3-term position during the June 6, 2017 by the BOCC by approval of a change
in the By-Laws of the Animal Services Advisory Board).
• Appointment to a partial term (Position #4) "Town of Chapel Hill" representative for
Heather Payne expiring 06/30/2018.
• Appointment to a first full term (Position #8) "Non-Municipality" representative for Diane
Fentress Obeid expiring 06/30/2020.
• Appointment to a second full term (Position #10) "Animal Welfare/Animal Advocacy"
representative for Dr. Maureane Hoffman expiring 06/30/2020.
• Appointment to a second full term (Position #11) "Animal Welfare/Animal Advocacy"
representative for Dr. Molly Mullin expiring 06/30/2020.
VOTE: UNANIMOUS
5. Public Hearings
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a. Public Hearing and Adoption of Bond Order and Resolution Related to $5.9 Million
Two-Thirds School Bonds
The Board conducted a public hearing as outlined in the two-thirds bond authorization
schedule and adopted the bond order and resolution to publish the bond order. The bond
order authorizes the issuance of two-thirds General Obligation Bonds in an amount not to
exceed $5.9 million to support school facilities, and the bonds replace the General Fund pay-
as-you-go funding in FY 2017-18 and a portion in FY 2018-19, as reflected in the Capital
Investment Plan (CIP).
Gary Donaldson, Chief Financial Officer, reviewed the background information:
BACKGROUND:
Pursuant to North Carolina General Statute 159-48, local governments can issue General
Obligation bonds each year in an amount equal to two-thirds of the principal amount of debt
retired in the previous year. Two-thirds General Obligation bonds may be issued without
referendum but are subject to approval by the Local Government Commission in the same
manner as other debt financings.
The County will retire $8.8 million in principal on outstanding General Obligation bonds in FY
2016-17. The Statutes allow the County to issue up to two-thirds of the $8.8 million in principal
retired or an additional General Obligation bond capacity of$5.9 million in FY 2017-18. This
bond capacity cannot be accumulated or carried forward to future years. The Board adopted a
resolution at its May 2, 2017 meeting providing preliminary approval of this bond issue. The
bond order was introduced at the May 16, 2017 BOCC meeting and a resolution authorizing
tonight's public hearing was adopted as well. Two-thirds bonds can be used for substantially all
the purposes for which voter-approved bonds may be issued except to fund auditoriums,
coliseums, stadiums, convention centers, art galleries, museums, historic properties, urban
redevelopment, public transportation or cable television systems.
After review of the County's CIP and in consultation with the County's financial advisor, County
staff recommends that the County proceed to authorize and issue the two-thirds bonds for
school renovations and facility improvements for both school systems, as well as the costs of
issuance for the bonds. The bond proceeds would be allocated on the average daily
membership for both school systems, with Chapel Hill-Carrboro City Schools (CHCCS)
receiving approximately $3.5 million and Orange County Schools (OCS) receiving $2.4 million.
Examples of school renovation and improvement projects include: Athletic Facilities,
Classroom/Building improvements, Mechanical Systems, Roofing projects, and School
Safety/Security improvements. Both school systems maintain flexibility in the process at this
point, but some of the currently planned projects include:
Chapel Hill-Carrboro City Schools (CHCCS)
• Athletic Field Improvements at Chapel Hill High School
• Athletic Field Improvements at Carrboro High School
• Classroom Improvements in Science classrooms at Phillips Middle School
• Cooling Tower Replacement at Scroggs Elementary
• Cooling Tower Replacement at East Chapel Hill High School
Orange County Schools (OCS)
• Upgrade Science classrooms at Cedar Ridge High School
• Roofing Project at Central Elementary
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• Roofing Project at New Hope Elementary
• School Safety Initiatives district-wide
• Food Service Facility Improvements at Grady A. Brown Elementary and Orange High
School
As noted above, the two-thirds bonds for schools are separate from the November 2016 bonds
for schools. However, for time and cost efficiency, the financing plan will combine the issuance
of the two-thirds bonds with the issuance of the first bonds authorized by the November 2016
referendum. That bond sale is planned for September 2017.
A motion was made by Commissioner Burroughs, seconded by Commissioner Rich to
open the public hearing.
VOTE: UNANIMOUS
A motion was made by Commissioner Burroughs, seconded by Commissioner Rich to
close the public hearing.
VOTE: UNANIMOUS
A motion was made by Commissioner Price, seconded by Commissioner McKee to
adopt the bond order and resolution to publish the bond order.
VOTE: UNANIMOUS
6. Regular Agenda
a. Approval of Fiscal Year 2017-18 Budget Ordinance, County Grant Projects, and
County Fee Schedule
The Board considered approving the fiscal year 2017-18 Budget Ordinance, County
Grant Projects, and County Fee Schedule.
Travis Myren made the following PowerPoint presentation:
Budget Adoption
June 20, 2017
Southern Human Services Center
Decision Points
• Approve the Amended Intent to Adopt Resolution
o Added Community Paramedic Coordinator—fully offset by outside revenue
o Corrected typographical errors
• Discuss Restoration of Chamber of Commerce Dues - $9,500
o Chapel Hill-Carrboro Chamber - $8,500
o Hillsborough/Orange County Chamber - $1,000
o Could use $112,309 funds from the amendment process
• Redirect Balance of Funds - $102,809 if Chamber funding is restored
o Option 1 — Save money in the General Fund
Increase undesignated reserve from 16% to 16.05%
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• Reset the Chapel Hill-Carrboro District Tax rate to revenue neutral rate
of 20.18 cents
o Option 2 — Reduce the Countywide Tax Rate
• Reduce the County Ad Valorem Tax rate by 0.06 cents to 83.71 cents
• Reset the Chapel Hill-Carrboro District Tax rate to revenue neutral rate
of 20.18 cents
o Option 3 — Distribute to Undesignated One Time Funds for School Districts
• Provide $61,788 in one time funds to Chapel Hill-Carrboro City Schools
• Provide $41,021 in one time funds to Orange County Schools
• Reset the Chapel Hill-Carrboro District Tax Rate to 20.18 cents or
reduce the District Tax Rate to 20.13 cents
• Redirect Balance of Funds - $112,309 if Chamber funding is not restored
o Option 1 — Save money in the General Fund
• Increase undesignated reserve from 16% to 16.06%
• Reset the Chapel Hill-Carrboro District Tax rate to revenue neutral rate
of 20.18 cents
o Option 2 — Reduce Countywide Tax Rate
• Reduce the County Ad Valorem Tax rate by 0.06 cents to 83.71 cents
• Reset the Chapel Hill-Carrboro District Tax rate to revenue neutral rate
of 20.18 cents
o Option 3 - Distribute to Undesignated One Time Funds for School Districts
• Provide $67,497 in one time funds to Chapel Hill-Carrboro City Schools
• Provide $44,812 in one time funds to Orange County Schools
• Reset the Chapel Hill-Carrboro District Tax Rate to 20.18 cents or
reduce the District Tax Rate to 20.12 cents
• Approve the Manager's Recommendation for the FY2017-18 Budget Ordinance,
County Grant Projects and County Fee Schedule
• Approve the Manager's Recommendation for the Five Year Capital Investment Plan
and Year 1 Project Approvals
Commissioner Price submitted a budget amendment, which she read.
A motion was made by Commissioner Price, seconded by Commissioner McKee to
restore the Chamber funding of$9,500- $8,500 to Chapel Hill Chamber and $1,000 to the
Hillsborough/Orange County Chamber; and for the Manager and Steve Brantley to examine
membership options, and return a recommendation to the BOCC regarding membership in the
two Chambers that will benefit all parties.
Commissioner Burroughs said she supported this resolution, and noted that there is a
lot of complexity in the relationship between the County and the contributions made by the
chambers. She said the chambers were leaders in the advocacy around the Bond. She said
she would like staff to review all options, and the BOCC to revisit the topic next year.
Commissioner Jacobs said he agreed up to a point, but not entirely. He agreed that
both chambers have been supportive of the goals and values of Orange County. He said he is
willing to leave the basic dues from the County in the budget for both chambers, but not dues
from other departments that are being paid by the County. He said to move Chamber
memberships to the Manager's office, and for the Manager to investigate how many
departments are contributing to the chambers, and bring a report to the BOCC in the fall.
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Commissioner Jacobs said the BOCC can still express its fiscal and verbal support to
both chambers, but not keep spending money while unsure from whence it came.
Commissioner Price said her concern is that the BOCC is unsure of what is being given
and the benefits, and thus it is unclear what the consequences of any change may be, and the
County may jeopardize relationships with other members of the Chambers.
Commissioner Marcoplos said he agreed with Commissioner Jacobs, and he would
want to know more information about the donations being made by the County departments
before making a final decision. He said it is appropriate to make the County's $9,500
commitment to the Chambers, and then sort out the other ancillary dues.
Commissioner McKee said the discussion at Thursday night's BOCC meeting, where
the Board chose not to fund these organizations, was done on the fly, and he voted on
information that was given at that time, but was not factual. He said this Board prides itself on
transparency and process, and the Board can vote tonight. He said Commissioner Price's
motion goes to process, and it would let staff have time to develop a process and address this
with a budget amendment.
Chair Dorosin said he was surprised to learn that various departments were paying
dues to both Chambers.
Chair Dorosin asked Travis Myren if he had a rough estimate of the total of these dues.
Travis Myren said staff is putting together an itemized list, but the dues totaled about
$20-25,000 in 2016, with most of that coming from the Visitors Bureau.
Chair Dorosin said that is a lot of money, and this needs to be analyzed. He said he
would be willing to support some lesser amount than the proposed level, in recognition of the
historical collaboration.
Chair Dorosin said he is not comfortable with the County being a member of an
advocacy organization. He said he appreciates the services provided by the Chambers, but
the County can always contract for those services if need be. He said an analysis is needed.
Commissioner Rich said she started working on this a couple of months ago, and at
that time she thought they had the correct information, but they did not. She said she had no
idea last week that other departments were paying dues, besides the Department of Economic
Development. She said she has a problem going back to the $8,500, but she is supportive of
maintaining a good relationship, and could compromise on a lesser amount.
Commissioner Rich said she cannot support Commissioner Price's motion.
Commissioner McKee said this is not the only advocacy organization that the Board
supports with County dollars, and said another example is the Rogers Eubanks Neighborhood
Association (RENA). He said the Chambers will advocate for or against County positions,
according to the interest of its membership. He said Commissioner Price's motion allows the
Board to look at the issue, and the conversation can continue as early as the first meeting in
September.
Commissioner Marcoplos said it should not be a long or complicated process to sort
this out, and asked if staff could have an answer in a month or two.
Bonnie Hammersley said staff will take care of the analysis over the summer, and bring
it back to the Board at its first meeting in September.
Commissioner Marcoplos asked if it is Commissioner Jacobs' intent to eventually get to
one payment.
Commissioner Jacobs said he has a substitute motion to make, and would propose one
payment.
Commissioner Jacobs said he agreed with Commissioner McKee to a degree, but the
Board cannot pay annual fees, and then revisit if it is paying annual fees at a September
meeting.
Commissioner Jacobs proposed a friendly substitute motion:
13
"The Board will reinstate its basic membership in both the Chapel Hill — Carrboro Chamber and
the Hillsborough — Orange County Chamber, and suspend all other payments from County
entities until the Manager is able to identify all the various County funders; and that going
forward, the County will locate all Chamber funding in the Manager's Office and that the Board
asks the Manager to report back at the first meeting in September."
Chair Dorosin asked John Roberts if he could clarify the motion process.
John Roberts said there is no such thing as a substitute motion, and if Commissioner
Jacobs' motion is not accepted as a friendly amendment, then it would have to be considered
a hostile amendment, and voted on in that order.
Commissioner Jacobs said his motion can be considered as an alternative motion.
Commissioner Marcoplos seconded Commissioner Jacobs' alternative motion.
Commissioner Jacobs re-read his motion:
"The Board will reinstate its basic membership in both the Chapel Hill — Carrboro
Chamber and the Hillsborough — Orange County Chamber, and suspend all other payments
from County entities until the Manager is able to identify all the various County funders; and
that going forward, the County will locate all Chamber funding in the Manager's Office, and
that the Board asks the Manager to report back at the first meeting in September."
Commissioner Rich asked if Commissioner Jacobs could define "basic funding."
Commissioner Jacobs said he is suggesting $8,500 to the Chapel Hill-Carrboro
Chamber of Commerce and $1,000 to the Hillsborough/Orange County Chamber; and have all
other departmental dues suspended to both chambers until further analysis is completed.
Commissioner Burroughs said she is concerned about the Visitors Bureau (VB) dues.
Commissioner Rich said the VB is not funded by any tax dollars, but is funded by
occupancy taxes. She said it is a separate board, and runs as a separate entity.
Commissioner Jacobs said he thought about including the VB in the motion, but he
assumed the Manager will examine what the VB is paying, and how that relates to the
County's payments. He said Chapel Hill is the only town that contributes to the VB, and it is
purposely not a member of the Chamber.
Chair Dorosin said if the Board says no now, and the dues are due, entities can join
later on.
Commissioner Rich said the VB board voted on its budget without contributing to the
Chambers.
Commissioner Burroughs asked if this was a new practice for the VB.
Commissioner Rich said yes, this was a policy change for the VB. She said she can
get more information, and that the VB did not always contribute to the Chamber, then it did,
and now does not again. She said that information can be added to the report.
Commissioner Price said her concern is she does not like the idea of double dipping,
and she does not want to make a decision without knowing the consequences, and she is
concerned about the process. She asked if the Board can even entertain the budgets of other
departments.
Bonnie Hammersley said the Board can absolutely look at these budgets, and the
Economic Development department uses general fund monies to pay its dues. She said all
departments are general fund departments, except for the VB.
Chair Dorosin said his concern is that the County is unknowingly paying for things. He
said it is unclear what services are being received in return, and this needs to be analyzed.
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Commissioner Burroughs asked Travis Myren if he could clarify that the bulk of the
money being paid was from the VB.
Travis Myren said about $10,000 of the total amount is from the VB, as well as some
other sponsorship that the VB paid.
Commissioner Rich said the VB did not vote to stop sponsoring, only to stop paying
membership dues to the Chamber. She said the VB will be a Chamber member if it can be
included in the one membership fees paid by the County, as opposed to departmental
payments.
Commissioner Burroughs said the Board has made a mountain out of a molehill.
VOTE: (on Commissioner Jacobs') alternative motion — $9,500 paid, with all other dues
suspended pending a report from the Manager, and all future payments come through the
Manager's office.
Ayes, 3 (Commissioner Jacobs, Chair Dorosin, Commissioner Marcoplos); Nays, 4
(Commissioner Burroughs, Commissioner Rich, Commissioner McKee, Commissioner Price)
MOTION FAILED
This failed vote puts Commissioner Price's motion, as stated on green sheet, back on
the table.
Commissioner Rich asked if the motion intends that the funds will come out of the
Economic Development office.
Commissioner Price said yes, her motion intends to keep the current status quo, and
any changes can be discussed after the investigation.
Commissioner Marcoplos clarified that the motion is restoring a status quo amount,
which is unknown but estimated to be between $20,000-$25,000.
Chair Dorosin said yes.
VOTE: Ayes, 3 (Commissioner Price, Commissioner Burroughs, and Commissioner McKee);
Nays, 4 (Commissioner Jacobs, Chair Dorosin, Commissioner Marcoplos, and Commissioner
Rich)
MOTION FAILED
A motion was made by Commissioner McKee, seconded by Commissioner Price to
restore payment to both Chambers - $8,500 to Chapel Hill-Carrboro and $1,000 to the
Hillsborough/Orange County Chamber for a total of$9,500 at this time; and that the Board
defers any decisions on departmental dues and the Visitors Bureau dues until staff analysis is
received in September.
Chair Dorosin asked if this decision can be deferred, and clarified that only the $9500
will get paid in this budget. He asked if this is different from Commissioner Jacobs' motion.
Bonnie Hammersley said Commissioner McKee did not direct for staff to move all dues
to the Manager's office, staff would come back with information, and decision on other
departmental dues would be deferred.
Commissioner McKee said the decision regarding moving this to the Manager's office
can be made in September, and the Manager's office will do an analysis on everything.
Commissioner Rich clarified that with Commissioner McKee's motion, Economic
Development is the only member of the Chamber.
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Commissioner McKee said no, Orange County is a member, and other decisions are
deferred until September.
Commissioner Rich said Commissioner McKee's motion leaves the funds coming out of
Economic Development, and if he wants it to come from the Manager's office, this needs to be
added to his motion.
Chair Dorosin said the funds for both Chambers at this point will come out of the
general fund.
Commissioner McKee said that is correct and the County will be the named member
with all other departments being suspended until further decision.
VOTE: Ayes, 6; Nays, 1 (Commissioner Rich)
MOTION PASSES
Commissioner Marcoplos suggested that the miscellaneous budget amendments be
discussed earlier in the budget process, and have a deadline for proposed amendments.
Chair Dorosin said he made that point to the Manager.
Commissioner Jacobs suggested that the Board may want to discuss in September
having the Chamber support its positions, and if the Chamber does not support County
positions it should communicate as such to the Board prior to taking a contrary position
publicly.
Travis Myren said it is staffs' understanding that the Board wants to redirect the
Balance of Funds of$112,000 to offset the Chapel Hill-Carrboro City Schools' district tax rate.
He said general fund dollars would be conveyed into the school district tax fund, and this must
be done by ADM. He said with $9,500 going to Chamber dues, there is $102,809 remaining.
He reviewed the following options:
• Option 1 — Save money in the General Fund
o Increase undesignated reserve from 16% to 16.05%
o Reset the Chapel Hill-Carrboro District Tax rate to revenue neutral rate of 20.18
cents
• Option 2 — Reduce Countywide Tax Rate
o Reduce the County Ad Valorem Tax rate by 0.06 cents to 83.71 cents
o Reset the Chapel Hill-Carrboro District Tax rate to revenue neutral rate of 20.18
cents
• Option 3 — Distribute to Undesignated One Time Funds for School Districts
o Provide $61,788 in one-time funds to Chapel Hill-Carrboro City Schools
o Provide $41,021 in one-time funds to Orange County Schools
o Reset the Chapel Hill-Carrboro District Tax Rate to 20.18 cents or reduce the
District Tax Rate to 20.13 cents
Commissioner McKee said to go with Option 1, as he anticipates there will be some
needs in the Department of Social Services.
Commissioner Jacobs agreed with Commissioner McKee with Option 1, and he would
also suggest scheduling a discussion at the BOCC retreat about a possible strategy to
equalize the district tax, and if that is a desirable goal.
Commissioner McKee said he would endorse Commissioner Jacobs' addition.
Commissioner Price agreed, but noted there is the social justice fund, and asked how
much is in it.
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Bonnie Hammersley said $250,000 is in the budget as of today; the same amount was
carried forward for FY2017-18 that was in their last year.
Commissioner Marcoplos agreed with Option 1 and Commissioner Jacobs' suggestion.
Commissioner Burroughs agreed, and said the Board needs to have that discussion.
Commissioner Rich said she agreed, and the Board needs to set some type of policy
on the equalization of the district tax.
Chair Dorosin agreed about the discussion, but he is going to support Option 2.
A motion was made by Commissioner McKee, seconded by Commissioner Burroughs
to approve Option 1: Save money in the General Fund
- Increase undesignated reserve from 16% to 16.05%
- Reset the Chapel Hill-Carrboro District Tax rate to revenue neutral rate
of 20.18 cents
- schedule a discussion at the retreat regarding the equalization of the
district tax
VOTE: Ayes, 6; Nays, 1 (Chair Dorosin)
MOTION PASSES
ORD-2017-014
Fiscal Year 2017-18
Budget Ordinance
Orange County, North Carolina
Be it ordained by the Board of Commissioners of Orange County
Section I. Budget Adoption
There is hereby adopted the following operating budget for Orange County for this fiscal year
beginning July 1, 2017 and ending June 30, 2018, the same being adopted by fund and
activity, within each fund, according to the following summary:
Current Interfund Fund Total
Fund Balance
Revenue Transfer Appropriated Appropriation
$206,121,37
General Fund 3 $3,765,600 $9,769,060 $219,656,033
Emergency Telephone Fund $595,350 $0 $158,110 $753,460
Fire Districts Fund $5,726,068 $0 $0 $5,726,068
Section 8 (Housing) Fund $4,211,164 $262,066 $0 $4,473,230
Community Development $843,900 $549,634 $41,000 $1,434,534
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Fund
Efland Sewer Operating Fund $214,500 $144,885 $0 $359,385
Visitors Bureau Fund $1,509,271 $0 $118,588 $1,627,859
School Construction Impact
Fees Fund $3,353,000 $0 $0 $3,353,000
Solid Waste/Landfill
Operations Enterprise Fund $11,149,208 $0 $1,981,434 $13,130,642
Sportsplex Enterprise Fund $3,402,574 $168,009 $0 $3,570,583
Community Spay/Neuter Fund $46,600 $0 $14,250 $60,850
Article 46 Sales Tax Fund $3,511,492 $0 $0 $3,511,492
Section II. Appropriations
That for said fiscal year, there is hereby appropriated out the following:
Function Appropriation
General Fund
Community Services $14,331,974
General Government $9,954,091
Public Safety $25,583,899
Human Services $37,508,468
Education $89,916,598.
Support Services $14,101,197
Debt Service $26,759,536
Transfers to Other Funds $1,500,270
Total General Fund $219,656,033
Emergency Telephone System Fund
Public Safety $753,460
Total Emergency Telephone System Fund $753,460
Fire Districts
Cedar Grove $247,659
Greater Chapel Hill Fire Service District $272,664
Damascus $98,895
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Efland $501,796
Eno $693,273
Little River $227,309
New Hope $627,958
Orange Grove $552,907
Orange Rural $1,268,521
South Orange Fire Service District $548,153
Southern Triangle Fire Service District $220,100
White Cross $466,833
Total Fire Districts Fund $5,726,068
Section 8 (Housing)..Fund
Human Services $4,473,230
Total.Section 8 Fund $4,473,230
Community Development Fund (Urgent Repair
Program)
Human Services $666,563
Total Community Development Fund(Urgent Repair
Program) $666,563
Community Development Fund (HOME Program)
Human Services $597,469
Total Community Development Fund(HOME
Program) $597,469
Community Development Fund (Homelessness
Partnership Program)
Human Services $170,502
Total Community Development Fund(Homelessness
Program) $170,502
Total Community Development Fund Programs $1,434,534
Efland Sewer Operating Fund
Community Services $359,385
Total Efland Sewer Operating Fund $359,385
Visitors Bureau Fund
Community Services $1,627,859
Total Visitors Bureau Fund $1,627,859
School Construction Impact Fees
Transfers to Other Funds $3,353,000
Total School Construction Impact Fees Fund $3,353,000
Solid Waste/Landfill Operations
Solid Waste/Landfill Operations $13,130,642
Total Solid Waste/Landfill Operations $13,130,642
SportsPlex Enterprise Fund
Community Services $3,570,583
Total Sportsplex Enterprise Fund $3,570,583
Community Spay/Neuter Fund
Community Services $60,850
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Total Community Spay/Neuter Fund $60,850
Article 46 Sales Tax Fund
Community Services $3,511,492
Total Article 46 Sales Tax Fund $3,511,492
Section III. Revenues
The following fund revenues are estimated to be available during the fiscal year beginning July
1, 2017 and ending June 30, 2018, to meet the foregoing appropriations:
Function Appropriation
General Fund
Property Tax $151,557,768
Sales Tax $23,566,784
Licenses & Permits $328,000
Intergovernmental $16,035,147
Charges for Services $11,551,045
Investment Earnings $265,000
Miscellaneous $2,817,629
Transfers from Other Funds $3,765,600
Appropriated Fund Balance $9,769,060
Total General Fund $219,656,033
Emergency Telephone System Fund
Charges for Services $595,350
Appropriated Fund Balance $158,110
Total Emergency Telephone System Fund $753,460
Fire Districts
Property Tax $5,724,102
Investment Earnings $1,966
Total Fire Districts Fund $5,726,068
Section 8 (Housing)..Fund
Intergovernmental and General Government $4,211,164
From General Fund $262,066
Total.Section 8 Fund $4,473,230
Community Development Fund (Urgent Repair Program)
Intergovernmental $325,000
From General Fund $341,563
Total Community Development Fund(Urgent Repair
Program) $666,563
Community Development Fund (HOME Program)
Intergovernmental $392,711
Program Income $39,783
From General Fund $164,975
Total Community Development Fund(HOME Program) $597,469
Community Development Fund(Homelessness
Partnership Program)
Intergovernmental $86,406
From General Fund $43,096
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Appropriated Fund Balance $41,000
Total Community Development Fund(Homelessness
Partnership Program) $170,502
Total Community Development Fund Programs $1,434,534
Efland Sewer Operating Fund
Charges for Services $214,500
From General Fund $144,885
Total Efland Sewer Operating Fund $359,385
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Visitors Bureau Fund
Occupancy Tax $1,278,341
Sales & Fees $500
Intergovernmental $230,330
Investment Earnings $100
Appropriated Fund Balance $118,588
Total Visitors Bureau Fund $1,627,859
School Construction Impact Fees Fund
Impact Fees $3,353,000
Total School Construction Impact Fees Fund $3,353,000
Solid Waste/Landfill Operations
Sales & Fees $8,673,911
Intergovernmental $218,000
Miscellaneous $191,050
Licenses & Permits $130,000
Interest on Investments $40,000
General Fund Contribution for Sanitation Operations $1,896,247
Appropriated Reserves $1,981,434
Total Solid Waste/Landfill Operations $13,130,642
Sportsplex Enterprise Fund
Charges for Services $3,402,574
From General Fund $168,009
Total Sportsplex Enterprise Fund $3,570,583
Community Spay/Neuter Fund
Animal Tax $27,000
Intergovernmental $8,000
Miscellaneous $11,600
Appropriated Fund Balance $14,250
Total Community Spay/Neuter Fund $60,850
Article 46 Sales Tax Fund
Sales Tax Proceeds $3,511,492
Total Article 46 Sales Tax Fund $3,511,492
Section IV. Tax Rate Levy
There is hereby levied for the fiscal year 2017-18 a general county-wide tax rate of 83.77 cents
per $100 of assessed valuation. This rate shall be levied in the General Fund. Special district
tax rates are levied as follows:
Cedar Grove 8.10
Greater Chapel Hill Fire Service District 14.91
Damascus 10.30
Efland 6.78
Eno 8.68
Little River 4.92
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New Hope 9.94
Orange Grove 6.81
Orange Rural 9.15
South Orange Fire Service District 9.68
Southern Triangle Fire Service District 10.30
White Cross 11.37
Chapel Hill-Carrboro School District 20.18
Section V. General Fund Appropriations for Local School Districts
The following FY 2017-18 General Fund Appropriations for Chapel Hill-Carrboro
City Schools and Orange County Schools are approved:
a) Current Expense appropriation for local school districts totals $80,745,847, and
equates to a per pupil allocation of$3,991.
1) The Current Expense appropriation to the Chapel Hill-Carrboro City Schools is
$48,530,521.
2) The Current Expense appropriation to the Orange County Schools is
$32,215,326.
b) Recurring Capital appropriation for local school districts totals $3,000,000
1) The Recurring Capital appropriation to the Chapel Hill-Carrboro City Schools
totals $1,803,000.
2) The Recurring Capital appropriation to the Orange County Schools totals
$1,197,000.
c) School Related Debt Service for local school districts totals $15,074,910.
d) Additional County funding for local school districts totals $5,454,000
(1) School Resource Officers and School Health Nurses Contracts - Total
appropriation of$3,354,000 to cover the costs of School Resource Officers
in every middle and high school, and a School Health Nurse in every
elementary, middle, and high schools in both school systems.
(2) One-time discretionary funding of$2,100,000 by ADM is allocated to the
school systems by the following: Chapel Hill-Carrboro City Schools
appropriation is $1,262,100 and Orange County Schools appropriation is
$837,900.
Section VI. Schedule B License
In accordance with Schedule B of the Revenue Act, Article 2, Chapter 105 of the North
Carolina State Statutes, and any other section of the General Statutes so permitting, there are
hereby levied privilege license taxes in the maximum amount permitted on businesses, trades,
occupations or professions which the County is entitled to tax.
Section VII. Animal Licenses
A license costing $10 for sterilized dogs and sterilized cats is hereby levied. A license for un-
sterilized dogs and a license for un-sterilized cats is $30 per animal.
Section VIII. Board of Commissioners' Compensation
The Board of County Commissioners authorizes that:
23
• Salaries of County Commissioners will be adjusted by any wage increase and/or any
other general increase granted to permanent County employees. For fiscal year 2017-
18, the approved budget includes a total 2% wage increase, effective July 1, 2017.
• Annual compensation for County Commissioners will include the County contribution for
health insurance, dental insurance and life insurance that is provided for permanent
County employees, provided the Commissioners are eligible for this coverage under the
insurance contracts and other contracts affecting these benefits.
• County Commissioners' compensation includes eligibility to continue to participate in
the County health insurance at term end as provided below:
o If the County Commissioner has served less than two full terms in office (less
than eight years), the Commissioner may participate by paying the full cost of
such coverage. (If the Commissioner is age 65 or older, Medicare becomes the
primary insurer and group health insurance ends.)
o If the County Commissioner has served two or more full terms in office (eight
years or more), the County makes the same contribution for health insurance
coverage that it makes for an employee who retires from Orange County after
20 years of consecutive County service as a permanent employee. If the
Commissioner is age 65 or older, Medicare becomes the primary insurer and
group health insurance ends. The County makes the same contribution for
Medicare Supplement coverage that it makes for a retired County employee with
20 years of service.
o Annual compensation for Commissioners will include a County contribution for
each Commissioner to the Deferred Compensation (457) Supplemental
Retirement Plan that is the same as the County contribution for non-law
enforcement County employees in the State 401 (k) plan. For fiscal year 2017-
18, the approved budget continues the County contribution of $27.50 per pay
period and a County contribution match of up to $63.00 semi-monthly.
Section IX. Budget Control
General Statutes of the State of North Carolina provide for budgetary control measures to exist
between a county and public school system. The statute provides:
Per General Statute 115C-429:
(c) The Board of County Commissioners shall have full authority to call for, and the Board of
Education shall have the duty to make available to the Board of County Commissioners, upon
request, all books, records, audit reports, and other information bearing on the financial
operation of the local school administrative unit.
The Board of Commissioners hereby directs the following measures for budget administration
and review:
That upon adoption, each Board of Education will supply to the Board of County
Commissioners a detailed report of the budget showing all appropriations by function and
purpose, specifically to include funding increases and new program funding. The Board of
Education will provide to the Board of County Commissioners a copy of the annual audit,
monthly financial reports, copies of all budget amendments showing disbursements and use of
local moneys granted to the Board of Education by the Board of Commissioners.
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The Board of Commissioners hereby approves the following financial policies:
• The County will not initiate pay-as-you-go funding until October 1 of each fiscal year,
and pending a review of the first quarter financial report, with the exception of County
appropriations to the school districts and any other County Manager exceptions.
• The County will initiate measures to recoup sales tax proceeds on school capital
projects through the conveyance of school property to the County with the school
property reverting back to the school districts at the end of the construction period.
• The County will ensure that all monthly general ledger postings occur by the 10th work
day of each month.
• The County will ensure that monthly financial reports are available by the 15th work day
of each month.
• The County will not issue debt for a project until a bid award date and construction start
date is established.
• Whereas, it is a best practice for governments to account for capital assets separate
from their operating funds, and; Whereas, enterprise funds generally establish Renewal
and Replacement Capital Funds to account for the acquisition of capital assets;
Therefore,
a. The Solid Waste Renewal and Replacement Capital Fund is established to
account for sources of income earmarked to fund the County Capital Investment
Plan. Sources of income including debt financing proceeds, pay-as-you-go
funds, and any other sources earmarked to finance acquisition of capital assets.
b. The Sportsplex Renewal and Replacement Capital Fund is established to
account for sources of income earmarked to fund the County Capital Investment
Plan. Sources of income including debt financing proceeds, pay-as-you-go
funds, and any other sources earmarked to finance acquisition of capital assets.
• Whereas, the County intends to undertake Capital Projects as approved in Year 1 (FY
2017-18) of the Capital Investment Plan, as well as approved Vehicle Replacements for
FY 2017-18, use its own funds to pay initial Project costs, and then reimburse itself
from financing proceeds for these early expenditures. The expected primary type of
financing for the Projects is installment financing under Section 160A-20. The
financing may include more than one installment financing, and may include installment
financings with equipment vendors and installment financings that include the use of
limited obligation bonds. The Manager and Finance Officer have advised the Board
that it should adopt this resolution to document the County's plans for reimbursement,
in order to comply with certain federal tax rules relating to reimbursement from
financing proceeds.
Section X. Internal Service Fund - Dental and Health Insurance Fund
The Dental Insurance Fund accounts for the receipt of premium payments from the County for
its employees and from the employees for their dependents, and the payment of employee
claims and administration expenses. Projected receipts from the County and employees for
fiscal year 2017-18 are $521,054 and projected expense for claims and administration for
fiscal year 2017-18 is $521,054.
The Health Insurance Fund accounts for the receipt of premium payments from the County for
its employees and from the employees for their dependents, and the payment of employee
claims and administration expenses. Projected receipts from the County and employees for
25
fiscal year 2017-18 is $9,435,744 and projected expense for claims and administration for
fiscal year 2017-18 is $9,435,744.
Section XI. Internal Service Fund -Vehicle Replacement Fund
The Vehicle Replacement Fund will centralize and account for the purchase and replacement
of County vehicles purchased with revenues and funding provided by the Governmental Funds
of Orange County (General Fund, Special Revenue and Grants Funds). Projected sources of
revenues and funds for fiscal year 2017-18 will be $757,514 of short-term installment financing
and internal reserves, and the projected expenses for the purchase of vehicles for fiscal year
2017-18 will be $757,514.
Section XII. Agency Funds
These funds account for assets held by the County as an agent for other government units,
and by State Statutes, these funds are not subject to appropriation by the Board of County
Commissioners, and not included in this ordinance.
Section XIV. Encumbrances
Operating funds encumbered by the County as of June 30, 2017 are hereby reappropriated to
this budget.
Section XV. Capital Projects & Grants Fund
The County Capital Improvements Fund, Schools Capital Improvements Fund, Proprietary
Capital Funds, Community Development Fund and the Grant Projects Fund are hereby
authorized. Appropriations made for the specific projects or grants in these funds are hereby
appropriated until the project or grant is complete.
The County Capital Projects Fund FY 2017-18 budget, with anticipated fund revenues of
$14,202,058 and project expenditures of $14,202,058 is hereby adopted in accordance with
G.S. 159 by Orange County for the fiscal year beginning July 1, 2017, and ending June 30,
2018, and the same is adopted by project.
The School Capital Projects Fund FY 2017-18 budget, with anticipated fund revenues of
$6,612,082, and project expenditures of $6,612,082 is hereby adopted in accordance with
G.S. 159 by Orange County for the fiscal year beginning July 1, 2017, and ending June 30,
2018, and the same is adopted by project. Note: the funding amounts do not include Lottery
proceeds of $1,356,362; specific lottery funded projects will be presented to the Board of
County Commissioners as part of separate budget amendments during FY2017-18, when
quarterly lottery funds are distributed by the State.
The Proprietary Capital Funds FY 2017-18 budget, consisting of Water and Sewer Utilities,
Solid Waste, and Sportsplex, with anticipated fund revenues of $2,325,268, and project
expenditures of $2,325,268 is hereby adopted in accordance with G.S. 159 by Orange County
for the fiscal year beginning July 1, 2017, and ending June 30, 2018, and the same is adopted
by project.
The County Grant Projects Fund FY 2017-18 budget, with anticipated fund revenues of
$811,880, and project expenditures of $811,880, is hereby adopted in accordance with G.S.
159 by Orange County for the fiscal year beginning July 1, 2017, and ending June 30, 2018,
and the same is adopted by project.
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Any capital project or grant budget previously adopted, the balance of any anticipated, but not
yet received, revenues and any unexpended appropriations remaining on June 30, 2017, shall
be reauthorized in the FY 2017-18 budget.
Section XVI. Contractual Obligations
The County Manager is hereby authorized to execute contractual documents under the
following conditions:
1. The Manager may execute contracts for construction or repair projects that do not
require formal competitive bid procedures, and which are within budgeted departmental
appropriations, for which the amount to be expended does not exceed $250,000.
2. The Manager may execute contracts for general and/or professional services which are
within budgeted departmental appropriations, for purchases of apparatus supplies and
materials or equipment which are within the budgeted departmental appropriations, and
for leases of property for a duration of one year or less and within budgeted
departmental appropriations for which the amount to be expended does not exceed
$89,999.
3. Contracts executed by the Manager shall be pre-audited by the Chief Financial Officer
and reviewed by the County Attorney to ensure compliance in form and sufficiency with
North Carolina law.
4. The Manager may sign intergovernmental service agreements in amounts under
$90,000.
5. The Manager may sign intergovernmental grant agreements regardless of amount as
long as no expenditure of County matching funds, not previously budgeted and
approved by the Board, is required. Subsequent budget amendments will be brought
to the Board of County Commissioners for revenue generating grant agreements not
requiring County matching funds as required for reporting and auditing purposes.
6. The Manager and Attorney will provide a quarterly report to the County Commissioners
showing the type and amount of each intergovernmental agreement signed by the
Manager.
This budget being duly adopted this 20th day of June 2017.
A motion was made by Commissioner Rich, seconded by Commissioner Burroughs for
the Board to adopt the FY2017-18 Budget Ordinance, the FY2017-18 County Grant Projects,
and the FY2017-18 County Fee Schedule, consistent with the parameters outlined in the
Board's "Resolution of Intent to Adopt the FY2017-18 Orange County Budget".
VOTE: UNANIMOUS
A motion was made by Commissioner Rich, seconded by Commissioner Burroughs to
Approve the Manager's Recommendation for the FY2017-18 Budget Ordinance, County Grant
Projects and County Fee Schedule.
27
VOTE: UNANIMOUS
b. Acceptance of the Five-Year Capital Investment Plan and Approval of the Orange
County CIP Projects of$24,495,770 for FY2017-18
The Board considered accepting the FY2017-22 Orange County Five-Year Capital
Investment Plan, and approving the Orange County CIP Projects of$24,495,770 for FY2017-
18.
A motion was made by Commissioner Rich, seconded by Commissioner Burroughs for
the Board to accept the FY2017-22 Orange County Five-Year Capital Investment Plan, and
approve funding for FY2017-18, as stated in Attachment 2, Year 1 (FY2017-18) in the Capital
Investment Plan; and adopt the FY2017-18 County Capital projects as stated in Attachment 3
and FY2017-18 School Capital projects as stated in Attachment 4.
VOTE: UNANIMOUS
c. Community Home Trust Acquisition of The Landings at Winmore
The Board considered approving Community Home Trust's request, as outlined in the
attached letter, for BOCC approval of the acquisition of The Landings at Winmore, and
modifying the terms of the Development Agreement attached to the property allowing the
acquisition of the property.
Annette Moore, Housing, Human Rights, and Community Development Interim Director,
reviewed the background information:
BACKGROUND:
In 2007, Orange County as a member of the Orange County HOME Consortium awarded
Community Home Trust (CHT) and The Landings at Winmore, LLC $300,000 in HOME funds
to acquire land in Carrboro to develop a low income tax credit property. The property, The
Landings at Winmore, is a fifty-eight (58) unit tax credit housing development with rental
housing specifically for 15 families earning less than 40% area median income ("AMI"), 21
families earning less than 50% AMI and 22 families earning less than 60% of AMI.
On April 13, 2011 Orange County entered into a Development Agreement with The Landings
at Winmore LLC, Crosland LLC, Community Home Trust, outlining the terms of the loan. In
addition, the parties entered into a declaration of restrictive covenant ensuring the long term
affordability of the project and a deed of trust and promissory note securing the loan on the
property. The loan of HOME funds to the Landings at Winmore, LLC was a 30-year loan at two
percent (2%) interest with a monthly payment of$1,108.86. The balance of the loan is
currently $252,090.51.
In a separate agreement, the Community Home Trust (formerly The Orange Community
Housing and Land Trust) was given an option, by the Owners of the property, to purchase the
units at the end of the tax-credit qualifying period of sixteen years.
The Owners of the Landings at Winmore are now interested in transferring the property to the
Community Home Trust. The affordability restrictions attached to the property would continue
to insure that the apartment units would be rented to individuals and families earning 60% or
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less of area median income. However, a portion of the development agreement that describes
the agency that could purchase the property would need to be modified.
The current language describes the qualifying agency as an agency that exclusively serves
families with incomes not exceeding 80% of area median household income:
"If Owner no longer uses the Property as rental property or is unable to continue
ownership, then the Owner must sell, transfer, or otherwise dispose of its interest in the
Property only to an agency with similar interest in affordable housing and serve families
with incomes not exceeding 80% of the area median household income by family size,
as determined by the U.S. Department of Housing and Urban Development at the time
of transfer. The non-profit fund, foundation, or corporation of like purpose must have
established its tax-exempt status under Section 501(c)(3) of the Internal Revenue
Code."
Since the Community Home Trust serves families who are purchasing properties with incomes
up to 110% of area median income, the language would need to be broadened to allow the
purchasing agency to serve other individuals and families up to 110% of area median income.
Community Home Trust currently serves families with incomes under 80% of area median
income but not exclusively. The language could be modified as follows to broaden the
population served by the purchasing agency:
"If Owner no longer uses the Property as rental property or is unable to continue
ownership, then the Owner must sell, transfer, or otherwise dispose of its interest in the
Property only to an agency with similar interest in affordable housing that serves families
with incomes under 80% of the area median household income by family size, as
determined by the U.S. Department of Housing and Urban Development at the time of
transfer. The non-profit fund, foundation, or corporation of like purpose must have
established its tax-exempt status under Section 501(c)(3) of the Internal Revenue Code."
The Community Home Trust has done due diligence on the property and has reported the
following:
1. The property has been losing money for the past several years;
2. The Owners have drawn down their operating reserves by more than 50%;
3. An inspection revealed the need for several immediate repairs —with an estimated
cost of about $50,000;
4. Community Home Trust is commissioning a phase I environmental assessment;
5. Community Home Trust has met with representatives of the management company
who provided them with their perspective on the tensions at the Property;
6. Community Home Trust has met with a tenant to hear her perspective on what is
working and what is not working; and
7. Community Home Trust has also met with Justice United.
Community Home Trust will contract with a property management company certified by the
North Carolina Housing Finance Agency to manage the property.
Commissioner Jacobs asked if the agreement will be changed to indicate that residents
could buy housing based on the allowances of the CHT, which would be up to 110%; or if they
would have to adjust their policy to only allow up to 80%.
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Annette Moore said in this particular development there is 99-year affordability
documentation, so CHT cannot rent these properties to anyone that earns more than 60% of
area median income.
Commissioner Jacobs said he does not see this information in the abstract.
Annette Moore said that information is in the declarations, which the Commissioners do
not have before them this evening. She said there are the documents that are part of the
affordability legal documents; there is a deed of trust; a declaration of restrictive covenants,
which has the 99-year affordability period; a development agreement, which is from where this
language comes; and there is a promissory note. She said all of these documents secure the
loan, as well as the terms that the Department of Housing and Urban Development requires.
Chair Dorosin said the property has the 60% restriction, and the other documents that
Ms. Moore is describing would prohibit any entity, that serves anybody above 60%, from being
involved in the project. He said the 60% will stay on the project, but the agreement is being
changed to say that even though CHT goes up to 80% to 110%, it cannot rent the properties to
those above 60%.
Commissioner Jacobs asked if the percentage of the area median income made by
schoolteachers, firefighter, police officer, etc. could be identified.
Annette Moore said she in not exactly sure of the numbers, but would say it is between
80% and 110%, and it depends on how many people are in one's family.
Robert Dowling, CHT Executive Director, said this is a rental project and CHT will not
rent to anyone above 60%, and he said CHT would adhere to those restrictions.
PUBLIC COMMENT:
Robert Dowling said CHT is in the home ownership business, but this is a rental project
and CHT is not in the rental business yet. He said this is a development that he has been
involved in, and this property is struggling and the owner is out of town and wants to convey
the property to CHT, subject just to the loans. He said CHT has done a lot of due diligence,
and it seems that this property needs CHT to own it in order for it to succeed. He said CHT is
local, up to the challenge, and understands the restrictions. He said he is not seeking
additional funds or changes to the interlocal agreement, but knows he can and will come to the
BOCC if he needs help in the future.
Commissioner Rich asked if the property manager has to be certified.
Robert Dowling said the North Carolina Housing Finance Agency (NCHFA) controls
most of the funding for this project, and as a result this agency gets to call the shots. He said
NCHFA is fine with CHT being the owner but is not willing for CHT to be the manager, due to
its lack of experience with tax credit projects; and, as a result, CHT must use a Management
Company approved by NCHFA. He said he has asked NCHFA if there is an Orange County
based Management Company that is approved, and has yet to receive an answer. He said he
has spoken to three Management Companies, that are not based in Orange County, about
managing this property, and it is currently being managed by an out of town Management
Company.
Annette Moore said to become a NCHFA certified property Management Company, one
must take a three-day test. She said it would be possible to have a local company become
certified, but this has not yet happened.
Commissioner Rich said she would like to keep the property manager local, if possible.
Annette Moore said 80% of median area income for a family of 4 is $58,650.
Commissioner Jacobs asked Robert Dowling if there is a plan for unit maintenance.
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Robert Dowling said CHT is asking the Orange County tax collector for tax exemption,
and CHT is eligible by the State statute for property tax exemption, which the current owner is
not. He said the property is losing money, and the difference between losing money and
breaking even is the property taxes.
Commissioner Jacobs asked if the amount of the property taxes is known.
Robert Dowling said they were around $43,000 in 2016, which declined to $27,000 in
2017, due to revaluation.
Commissioner Jacobs asked if Robert Dowling is confident that $27,000 is sufficient to
maintain 58 units.
Robert Dowling said no. He said the property lost $50,000 last year, with the taxes at
$43,000. He said there is also an arrearage of an Orange Water and Sewer Authority
(OWASA) bill, which requires a $2,000/month surcharge. He said the Carrboro Board of
Alderman agreed to pay this off when CHT takes possession, and between these two changes
the property should move from the red barely into the black. He said CHT will make a 20 year
pro forma, and put the freed up cash flow into the reserves to maintain the property.
Commissioner Jacobs said Robert Dowling has intimated a return to the Board in the
future to ask for financial assistance, and asked if CHT is starting this project in a position that
almost guarantees a return to the Board.
Robert Dowling said CHT will be entering into negotiations with the current owner, and
he would prefer not to say any more.
Commissioner McKee said he liked the model CHT is proposing, but he agreed with
Commissioner Jacobs that this project does not address workforce housing. He said he likes
the idea, but not the project. He said he owns rental property, and one can either make money
or get badly bit, and he fears the latter will occur with this project. He said the maintenance
issue must be addressed, and he would like to know more about the project and the financials
before buying into this project. He said he anticipates this project having a large financial
appetite.
Robert Dowling said the County already has money in the deal, and it will either go
below the waves or be kept propped up.
Commissioner McKee said he is concerned about how much farther in the County will
be.
Chair Dorosin said 40% of median area income for a family of 4 is $29,325; 50% is
$36,656, which is about the starting salary of a teacher; and 60% is $43,988. He said these
numbers are all in the range for working class people, and thus this project seems meant for
working class people. He said the BOCC has made a priority of affordable rentals at lower
median incomes, which requires a greater subsidy. He said these units could be made
available to section 8 voucher holders.
Robert Dowling said 39 of the 58 units currently house section 8 voucher holders.
Chair Dorosin said there have been social justice issues with the current management
and the residents of this property. He said he appreciates the questions and concerns, but
these are 58 units that could fail and possibly be lost, if not for some form of intervention.
Commissioner Burroughs said when the BOCC was awarding the $2.5 million in
affordable housing projects; she was struck by how few projects there were. She said the
County needs to focus on preserving the existing affordable housing stock, which this project
would do. She said she also deals with rental housing, and it is challenging, but it cannot be
more expensive to preserve 58 existing units than it is to create 23 from scratch, and as such
she supports this project.
Commissioner Price agreed with Commissioner Burroughs, and feels strongly about
neighborhood preservation. She said it may not make a lot of money, but it provides homes to
families.
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Commissioner Jacobs said he is not opposed to the project, but he is trying to get a
more realistic picture of the costs and the vulnerabilities that are not being articulated. He said
this project provides more units than were approved through the provision of the $2.5 million,
and he wishes this project had come forward during the bond funds discussion.
Commissioner McKee said this addresses need and he will not vote against it, but that
does not alleviate his concerns that the County will be feeding this project going forward. He
asked if CHT would keep the Board of County Commissioners updated, especially pertaining
to costs and upgrades.
A motion was made by Commissioner Rich, seconded by Commissioner Jacobs to
approve the request and approve the Community Home Trust's request to acquire the property
and approve the modifications to the Development Agreement as described in this abstract.
VOTE: UNANIMOUS
Robert Dowling thanked the Board and the staff for its ongoing support, and said he
does not expect that CHT will come back to the Board for money. He said it is a possibility, but
he does not expect it to be the case.
d. Operations Agreements - Cedar Grove and Efland Cheeks Community Centers
The Board considered entering into operating agreements with non-profit organizations
- Cedar Grove Neighborhood Association and United Voices of Efland Cheeks - for the
operation of the County's Cedar Grove Community Center and Efland Cheeks Community
Center, respectively.
David Stancil, DEAPR Director, reviewed the following information:
BACKGROUND:
In June 2016 Orange County began regular operating hours at the Efland Cheeks Community
Center (built 1992) and the Cedar Grove Community Center (a 2016 renovation of a 1950
building). During FY 2016-17, the County has worked with community groups at each location
to operate the centers and provide for community programs and access, with a goal of
completing operating agreements at each center for a community non-profit to eventually take
over the operation of the centers on a regular schedule. This is a similar approach to the one
taken at a third County-owned community center, the Rogers Road Community Center
(operated under an existing agreement by the non-profit Rogers-Eubanks Neighborhood
Association).
(The Rogers Road / RENA Operating Agreement is a five-year agreement that runs through
February 2, 2019. As such, a separate addendum to that agreement incorporating new
provisions has been drafted and is included on tonight's June 20, 2017 meeting agenda as a
separate Board action.)
In recent months, a new association has formed and achieved incorporation and non-profit
status with the intention of contracting with the County to operate the Cedar Grove Community
Center, while an existing incorporated non-profit association has done likewise with the
intention of contracting to operate the Efland Cheeks Community Center.
The United Voices of Efland Cheeks (UVEC) is an existing community non-profit organization
in the Efland Cheeks community that has provided for local activities, programs and services
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over the past two decades. Since the plans to reopen and rejuvenate the existing Efland
Cheeks Center began in 2015, United Voices has worked with the County to jointly offer
programs (such as a Summer Enrichment Program for area youth in summer 2016) and has
met with County staff on a number of occasions regarding center improvements, and needed
equipment. Over the last few months, UVEC has begun reviewing a draft operating agreement
modeled on the Rogers Road/RENA agreement, and has reached a tentative agreement to
sign the draft agreement (attached) and take over operation of the Efland Cheeks Community
Center on the days and hours designated as of August 1, 2017.
During the same timeframe, a group of residents in the Cedar Grove community have also
come together to form an incorporated non-profit association. The Cedar Grove Neighborhood
Association (CGNA) was incorporated in late 2016 and has also provided a number of
community events, services, activities and programs (including a Summer Enrichment Program
for community youth in summer 2016) at the new Cedar Grove Community Center, which
opened on June 18, 2016. Like their counterparts in Efland Cheeks, CGNA has also been
reviewing a nearly-identical draft operating agreement over the past few months, and has
reached a tentative agreement to sign the draft agreement (attached), and take over
operations of the Cedar Grove Community Center on the days and hours designated as of
August 1, 2017 to give the associations time to hire staff.
Both agreements:
• are two years in length to allow for revisions or changes if provisions are found to need
adjustment.
• detail use and operation expectations for CGNA/UVEC and the County.
• provide for operation of the centers by the respective associations during Monday -
Friday from 10 am — 7 pm.
• provide for the potential for community rentals on Saturdays, Sundays and between 7-
10 pm on weeknights. However, both CGNA and UVEC would have priority booking
opportunities for any association weekend events that are scheduled in advance
(subject to availability); and have the ability to use the center during weekend and
evening hours where no rentals/reservations exist.
• outline insurance and access provisions (including volunteer training, certification and
duties), along with usual language of operations agreement.
One area of distinction from the 2014 Rogers Road/RENA Agreement is in Section 2(b), which
explains the new funding approach to be used for the two community centers and the
operating entities. Rather than treating UVEC and CGNA as outside agencies that request
funds each year, these agreements recognize that these community non-profit associations
are contracting with the County to operate a County-owned facility and thus more internal to
County functions than external. The language in Section 2(b) of the agreements provides that
each association will develop a budget proposal each winter and submit the budget to the
County Manager for consideration and discussion, as a County department would. Upon final
decision of the funding level (approved by the Board as part of the annual budget), funds
would be disbursed to each association in three main budget categories — Personnel,
Operating, and Recurring Capital.
The Personnel funding would be the County's contribution toward the hiring of a Center staff
person(s), which would be an employee of UVEC or CGNA respectively. For FY 2017-18,
funds to allow for a Center staff person at 40 hours per week at the living wage would be
33
provided, along with an additional amount to provide 10 hours per week of backup staffing
time by a temporary employee. CGNA and UVEC will be responsible for hiring these staff
persons as they see fit, within the provisions of the agreement. An annual budgeted amount
for operating costs and recurring capital costs is provided in the FY 2017-18 budget, and
planned for and addressed in future budgets.
Both CGNA and UVEC boards have reviewed the draft agreements and have indicated their
approval. Since actual transfer of center operations will not occur until August 1, 2017,
operations by the neighborhood associations will begin prior to the Board's return from summer
break. As such, it may be desirable to authorize the Manager to execute the Agreements and
fix
the date for actual transfer of operation to the associations, if it differs from the planned
August
1 date and occurs prior to September 5, 2017. This scenario would also require some use of
the budgeted funds for the two associations, since the County does not have budgeted funds
for community center staff and operations after July 1.
FINANCIAL IMPACT: The financial impact of the operating agreements is that the County
commits to appropriating an amount of funding for each center as part of the annual County
budget. For FY 2017-18, this equates to $89,609 for the Cedar Grove Community Center and
$85,881 for the Efland Cheeks Community Center. Both of these amounts include $38,485 for
personnel (employees of CGNA and UVEC respectively, to be hired by the associations) and
$3,000 in recurring capital. The slight difference in operating costs ($3,728) for FY 2017-18 is
based on the difference in the requested budget and outside agency funding from the two
associations. A prorated portion of this amount would be used by the County for the month of
July 2017 if the associations do not take over operations until August 1.
For FY 2018-19 (and future years if renewed), UVEC and CGNA will work with County staff to
develop a budget proposal concurrently with the development of the County budget, which will
be forwarded to the County Manager for consideration in the creation of the Manager's
Recommended Budget for that year.
A budget amendment will be brought forward after the summer break to provide for the
revenues and associated costs for center rentals and reservations, which will be managed by
the County (with priority booking for the associations) and part of the County budget as in prior
years.
David Stancil made the following PowerPoint presentation:
Operations Agreements
Cedar Grove and Efland Cheeks Community Centers
June 20, 2017
Orange County Community Centers
Efland Cheeks Community Center (1992)
Rogers Road Community Center (2014)
Cedar Grove Community Center (2016)*
* Formerly Cedar Grove School (1950)
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The Operations Agreements
Based on RENA Agreement from 2014
RENA Agreement continues through 2019 (separate consent agenda item — update)
New Agreements - neighborhood associations:
• United Voices of Efland-Cheeks
• Cedar Grove Neighborhood Association
Efland Cheeks Summer Enrichment 2016 (photo)
Major Provisions of the Agreements
• Two-year terms, renewable
• Detail use and operation expectations
• Insurance, volunteer and access
• Provides for Monday-Friday 10am - 7pm
o Assn's may use other hours if not rented
o Assn's may "priority book" other dates
New Funding Arrangement
• Added to the new agreements (and addendum to current RENA agreement)
• Associations develop annual budgets
• County provides funds for personnel, operating and recurring capital
• Develop as part of annual budget process
Status of Agreements
• Several drafts created and reviewed with CGNA and UVEC
• Both associations have approved and signed the agreements
• Effective date set for August 1, 2017
Recommendation
• Approve the Operations Agreements for
o Cedar Grove Neighborhood Association
o United Voices of Efland Cheeks
• Authorize the County Manager to sign and execute the agreement (between August 1
and September 5, 2017, if needed).
Commissioner McKee asked if there was any interaction between the Hillsborough
Youth Athletic Association (HYAA) and the centers regarding the baseball fields, and if this
would change the arrangement.
David Stancil said this does not change the arrangement, and he said there is a
separate license agreement with HYAA, which runs for a few more years. He said HYAA is
very accommodating, particularly with field number 1, which is historically part of the old Cedar
Grove School.
Commissioner Price said this document is fine, but suggested putting the terms for
using the parking and the park in a separate document or addendum.
Commissioner Rich asked if there is room in the two year period to address changes or
issues.
David Stancil said yes, upon mutual consent of the two parties, amendments could be
made.
Commissioner Jacobs asked if usage fees could be explained.
35
David Stancil said the centers will set up their own structure for reservations and rentals
allowed during the period of time they control the center, and outside of that it will work through
the County fee schedule and facilities use policy.
Commissioner Jacobs asked if the County will pay fees during the time that the centers
are in control.
David Stancil said the agreement does not speak to that, and some County
departments have used the centers for meetings. He said it would be up to the associations to
determine whether that was allowable or not, during their operating hours.
PUBLIC COMMENT:
Elvira Mebane said she is President of United Voices of Efland Cheeks, and she
thanked the BOCC for allowing the staff to work with them to get this done.
Commissioner McKee said the thank yous go both ways, and the Efland Cheeks and
Cedar Grove associations pulled together and accomplished a lot in a short period of time.
Commissioner Jacobs said he wanted to compliment both community groups, the
Manager and David Stancil for creating a system that provides greater autonomy, funding for
each group, and allows the groups to take ownership of these facilities that are an integral part
of their communities. He said he hopes there can be a tacit agreement between the County
and the centers, where the County will not ask to use the centers during prime times, and in
turn the centers will not charge the County a fee for usage.
A motion was made by Commissioner Price, seconded by Commissioner Jacobs for the
Board to approve the Operations Agreements for 1) the Cedar Grove Community Center, with
Cedar Grove Neighborhood Association, and 2) the Efland Cheeks Community Center, with
United Voices of Efland Cheeks. Since the actual date of transfer of operations for the centers
is projected to occur on August 1, 2017 or a date to be determined but before September 5,
2017, it is also recommended that the Board authorize the County Manager to execute the
Operations Agreements to formally transfer center operations for the two centers on a
mutually-agreed upon date by the County and the respective neighborhood associations, if
necessary, prior to September 5, 2017.
VOTE: UNANIMOUS
7. Reports
NONE
8. Consent Agenda
• Removal of Any Items from Consent Agenda
• Approval of Remaining Consent Agenda
A motion was made by Commissioner Price, seconded by Commissioner Rich to
approve the Consent Agenda.
VOTE: UNANIMOUS
• Discussion and Approval of the Items Removed from the Consent Agenda
36
a. Minutes
The Board approved the minutes from May 16, 18 and 25, 2017 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 four (4) taxpayers with a total of four (4) bills that will result in a
reduction of revenue, in accordance with the NCGS.
c. JCPC Certification for FY 2017-2018
The Board approved the Orange County Juvenile Crime Prevention Council (JCPC)
Certification for FY 2017-2018 and authorized the Chair to sign.
d. Addendum to Current Operating Agreement— Rogers Road Community Center
The Board approved an addendum to the existing operating agreement with the Rogers
Eubanks Neighborhood Association for the Rogers Road Community Center to add provisions
that match with certain language in new operating agreements for Cedar Grove and Efland-
Cheeks community centers.
e. Easement Agreement with Duke Energy Related to the Orange County Animal
Services Center Property
The Board approved an easement agreement for the installation of overhead power lines
across the Orange County Animal Services Center property and authorized the Chair to sign.
f. Impact Fee Reimbursement Request— Habitat for Humanity
The Board reimbursed the impact fees requested by Habitat for Humanity in the amount of
$33,738 for six (6) homes constructed in Orange County for low-income persons.
g. Efland Sewer to Mebane, Phase 2 Extension — Construction Contract Agreement
Authorization
The Board approved a construction agreement with J. F. Wilkerson Contracting Company for
the construction of the Efland Sewer to Mebane, Phase 2 Extension at a total cost of
$3,586,121 to serve part of the Efland-Buckhorn-Mebane Utility Planning Area and authorized
the Chair to sign.
h. Efland Sewer to Mebane, Phase 2 Extension — Construction Engineering and
Inspection Services Contract for the Efland-Buckhorn-Mebane Utility Planning Area
The Board approved an agreement with McGill Associates (McGill) for the construction
engineering and inspection (CEI) related services for the Efland Sewer to Mebane, Phase 2
Extension to serve the Efland-Buckhorn-Mebane Utility Planning Area and authorized the
Chair to sign.
i. Resolution of Support for the Town of Carrboro's Extraterritorial Jurisdiction (ETJ)
Extension Request
The Board approved a resolution, which is incorporated by reference, of support for the Town
of Carrboro's ETJ Extension request.
j. Fiscal Year 2016-17 Budget Amendment#10
The Board approved budget and capital project ordinance amendments for fiscal year 2016-
17.
k. Orange County ABC Board Travel Policy
The Board approved the Orange County Alcoholic Beverage Control (ABC) Board's adoption
and continued use of Orange County's travel policy.
I. Amended Contract Regarding Fee for FY 2016-2017 Audit
The Board approved a contract amending the fee for the FY 2016-17 audit by Mauldin &
Jenkins, PLLC from $78,500 to $84,500 due to increased State audit requirements for the
Medicaid audit program and authorized the Chair to sign.
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m. Application for North Carolina Education Lottery Proceeds for Chapel Hill — Carrboro
City Schools (CHCCS) and Contingent Approval of Budget Amendment#10-A Related
to CHCCS Capital Project Ordinances
The Board approved an application to the North Carolina Department of Public Instruction
(NCDPI) to release proceeds from the NC Education Lottery account related to FY 2016-17
debt service payments for Chapel Hill — Carrboro City Schools (CHCCS), and to approve
Budget Amendment#10-A (amended School Capital Project Ordinances), contingent on the
NCDPI's approval of the application and authorized the Chair to sign.
n. Rescission of Interlocal Agreement Between Orange County and the Town of
Hillsborough for Construction and Operation of Water and Sewer Facilities in the
Hillsborough Area Economic Development District of Orange County
The Board rescinded approval of and voided the interlocal agreement with the Town of
Hillsborough that sets forth conditions of utility installation and operation with associated land
use consistency with prior cooperative planning efforts; and authorized the County Manager,
County Attorney, and staff to continue to negotiate the interlocal agreement with the Town of
Hillsborough over the summer break and present a new proposed agreement for consideration
at a future Board meeting.
9. County Manager's Report
Bonnie Hammersley congratulated the Board on its adopted budget, and reminded the
Board to provide any feedback to staff regarding the budget process.
10. County Attorney's Report
None
11. *Appointments
b. Alcoholic Beverage Control Board —Appointments
The Board considered making appointments to the Alcoholic Beverage Control Board.
A motion was made by Commissioner McKee, seconded by Commissioner Price to
appoint the following to the Alcoholic Beverage Control Board:
• Appointment to a second full term (Position #3) "At-Large" representative for Keith
Bagby expiring 06/30/2020.
• Appointment to a second full term (Position #4) "At-Large" representative for Mike
Lassiter expiring 06/30/2020.
VOTE: UNANIMOUS
A motion was made by Commissioner McKee, seconded by Commissioner Price to
appoint Greg Jarvis as Chair to the Alcoholic Beverage Control Board.
VOTE: UNANIMOUS
c. Arts Commission —Appointment
The Board considered making an appointment to the Arts Commission.
38
A motion was made by Commissioner Rich, seconded by Commissioner Price to
appoint the following to the Arts Commission:
• Appointment to a first full term (position #9) "At-Large" for Chris Kubica expiring
03/31/2020.
VOTE: UNANIMOUS
d. Board of Health —Appointments
The Board considered making appointments to the Board of Health.
A motion was made by Commissioner Burroughs, seconded by Commissioner Price to
appoint the following to the Board of Health:
• Appointment to a third full term (Position #1) "Veterinarian" representative for Dr. Susan
Elmore expiring 06/30/2020.
• Appointment to a first full term (Position #3) "Citizen/Commissioner Appointment"
representative for Jessica Frega expiring 06/30/2020.
• Appointment to a third full term (Position #4) "At-Large Nurse" representative for Liska
Lackey expiring 06/30/2020.
• Appointment to a partial term (Position #5) "Optometrist" representative for Dr. Bruce
Baldwin expiring 06/30/2018.
VOTE: UNANIMOUS
e. Chapel Hill Library Board of Trustees —Appointment
The Board considered making an appointment to the Chapel Hill Library Board of
Trustees.
A motion was made by Commissioner Jacobs, seconded by Commissioner Rich to
appoint Virginia Baeckler to Position #1.
VOTE: Ayes, 3 (Commissioner Marcoplos, Commissioner Jacobs, Commissioner Rich); Nays,
4 (Chair Dorosin, Commissioner McKee, Commissioner Price, Commissioner
Burroughs)
MOTION FAILED.
A motion was made by Commissioner McKee, seconded by Commissioner Price to
appoint the following to the Chapel Hill Library Board of Trustees
• Appointment to a second full term (Position #1) "Orange County Resident BOCC
Appointee" representative for James R. Stroud expiring 06/30/2021*.
*NOTE — The positions on this Board are four year terms.
VOTE: Ayes, 4 (Chair Dorosin, Commissioner McKee, Commissioner Price, Commissioner
Burroughs); Nays, 3 (Commissioner Marcoplos, Commissioner Rich, Commissioner Jacobs)
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Commissioner McKee asked if feedback could be secured from all boards.
Donna Baker said James Stroud, and all boards, were invited to come to BOCC work
sessions in the spring, and he had not responded.
Commissioner Jacobs said he and former Commissioner Pelissier met with James
Stroud when he was appointed, and specifically requested periodic updates with the BOCC.
He said Mr. Stroud has ignored this request for four years.
Chair Dorosin said it would have been helpful if Commissioner Jacobs had mentioned
this information prior to the vote.
Commissioner McKee said that he would contact Mr. Strowd to impress the Board's
desire for, and expectation of, feedback.
Chair Dorosin implored the Board to share any relevant information about nominees in
the future.
f. Chapel Hill Parks, Greenways, and Recreation Commission —Appointment
The Board will consider making an appointment to the Chapel Hill Parks, Greenways,
and Recreation Commission.
A motion was made by Commissioner Price, seconded by Commissioner Rich to
appoint the following to the Chapel Hill Parks, Greenways, and Recreation Commission:
• Appointment to a first full term (Position #1) "Orange County" representative for Emma
Armstrong-Carter expiring 06/30/2020.
VOTE: UNANIMOUS
g. Hillsborough Board of Adjustment—Appointments
The Board considered making appointments to the Hillsborough Board of Adjustment.
A motion was made by Commissioner Rich, seconded by Commissioner Price to
appoint the following to the Hillsborough Board of Adjustment:
• Appointment to a first full term (position #1) "Alternate Hillsborough ETJ" for Rob Bray
expiring 06/30/2020.
• Appointment to a second full term (position #3) "Hillsborough ETJ" for David L.
Remington expiring 06/30/2020.
VOTE: UNANIMOUS
h. Historic Preservation Commission —Appointment
The Board considered making an appointment to the Historic Preservation
Commission.
A motion was made by Commissioner Price, seconded by Commissioner Marcoplos to
appoint the following to the Historic Preservation Commission:
• Appointment to a first full term (Position #2) "At-Large" for Thomas Loter expiring
06/30/2020.
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VOTE: UNANIMOUS
i. Nursing Home Community Advisory Committee —Appointments
The Board considered making appointments to the Nursing Home Community Advisory
Committee.
A motion was made by Commissioner Price, seconded by Commissioner Burroughs to
appoint the following to the Nursing Home Community Advisory Committee:
• Appointment to a one year training term (Position #5) "At-Large Nursing Home
Administration" representative for Jennifer Moore expiring 06/20/2018.
• Appointment to a one year training term (Position #10) "At-Large One Year Training"
position for Peggy Iris Lanier expiring 06/20/2018.
VOTE: UNANIMOUS
12. Information Items
• June 6, 2017 BOCC Meeting Follow-up Actions List
• Memorandum Regarding TARPO Prioritization
• Memorandum Regarding Eno EDD and Hillsborough Area EDD Communications with
Public and Property Owners
• Update on the Affordable Housing Land Banking/Mobile Home Park Work Group
• BOCC Chair Letter Regarding Petitions from June 6, 2017 Regular Meeting
13. Closed Session
A motion was made by Commissioner Burroughs, seconded by Commissioner Rich to
go into closed session at 9:41 p.m. for the purpose of:
"To consider the qualifications, competence, performance, character, fitness, conditions of
appointment, or conditions of initial employment of an individual public officer or employee or
prospective public officer or employee" NCGS § 143-318.11(a) (6).
VOTE: UNANIMOUS
RECONVENE INTO OPEN SESSION:
A motion was made by Commissioner Jacobs seconded by Commissioner Rich to reconvene
into regular session at 11:45pm.
VOTE UNANIMOUS
ADJOURNMENT
A motion was made by Commissioner Jacobs seconded by Commissioner Rich to adjourn the
meeting at 11:45pm.
VOTE: UNANIMOUS
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Mark Dorosin, Chair
Donna Baker
Clerk to the Board