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HomeMy WebLinkAboutMinutes 04-24-2018 Schools1 APPROVED 5/15/2018 MINUTES ORANGE COUNTY BOARD OF COMMISSIONERS CHAPEL HILL-CARRBORO BOARD OF EDUCATION ORANGE COUNTY BOARD OF EDUCATION BOCC/BOARD OF EDUCATION JOINT MEETING April 24, 2018 7:00 p.m. The Orange County Board of Commissioners met for a joint meeting with the Chapel Hill- Carrboro Board of Education and Orange County Board of Education on Tuesday, April 24, 2018 at 7 p.m. at the Southern Human Services Center in Chapel Hill, N.C. COUNTY COMMISSIONERS PRESENT: Chair Dorosin and Commissioners Mia Burroughs, Barry Jacobs, Earl McKee, Mark Marcoplos, Renee Price and Penny Rich COUNTY COMMISSIONERS ABSENT: None COUNTY ATTORNEYS PRESENT: John Roberts CHAPEL HILL-CARRBORO BOARD OF EDUCATION PRESENT: Chair Rani Dasi, Margaret Samuels, James Barrett, Joal Braun, Amy Fowler, and Mary Ann Wolf CHAPEL HILL-CARRBORO BOARD OF EDUCATION ABSENT: Pat Heinrich ORANGE COUNTY BOARD OF EDUCATION PRESENT: Chair Dr. Steve Halkiotis, Tony McKnight, Tom Carr, Matthew Roberts and Brenda Stephens ORANGE COUNTY BOARD OF EDUCATION ABSENT: Donna Coffey and Michael Hood, COUNTY STAFF PRESENT: County Manager Bonnie Hammersley, Deputy County Manager Travis Myren, and Deputy Clerk II Sherri Ingersoll (All other staff members will be identified appropriately below) CHAPEL HILL-CARRBORO SCHOOLS STAFF PRESENT: Superintendent Pam Baldwin, Assistant Superintendent – Support Services Todd LoFrese ORANGE COUNTY SCHOOLS STAFF PRESENT: Superintendent Dr. Todd Wirt, Interim Deputy Superintendent Pam Jones Chair Dorosin called the meeting to order at 7:02 p.m. Welcome and Opening Remarks Chair Dorosin opened the meeting, and reviewed the evening’s agenda. Steve Halkiotis said, on behalf of the Orange County Board of Education, thank you to the Board of County Commissioners (BOCC) for this evening’s meeting. He said the School Board has always looked to the Commissioners in the past, the present, and hopes to continue to do so in the future. He said the BOCC believes in public schools, and always has. Chair Dasi thanked the BOCC for its willingness to allow the Chapel Hill Carrboro-City Schools (CHCCS) Board of Education (BOE) the opportunity to explain its needs. She said Pat Heinrich is unable to attend tonight, as he is out of town on business. She congratulated Dr. Pam Baldwin on her one-year anniversary. She said the CHCCS Board continues to be excited about her work. She thanked Todd LoFrese and Ruby Pittman for their work on this presentation. Chair Dasi said the CHCCS board continues to review operations and processes to improve safety, and wanted to thank law enforcement for their efforts in keeping everyone safe. She said the CHCCS BOE is proud of the students and their efforts to increase safety, by writing to state officials. She said the CHCCS Board continues to advocate for improved safety, 2 and does not believe that teachers carrying guns is a good idea. She said CHCCS has three areas of funding request: state mandated increases, instructional and teacher support, and mental health resources. She said CHCCS continue to be grateful for the partnership with the Commissioners. Chair Dorosin reminded everyone to please speak closely into a microphone so it will be recorded clearly. 1. Orange County Schools (OCS) • FY 2018-19 Operating Budget Presentation and Discussion • Capital Investment Plan Discussion Based on the North Carolina Department of Public Instruction’s projected Average Daily Membership (ADM) enrollment for FY2018-19, Orange County Schools enrollment would decrease by 199 students, while charter students would increase by 152 to a total of 769, less 89 Out-of-County tuition paid students, which remains the same as in the previous year. The total budgeted students in FY 2018-19 would be 8,025, an overall decrease of 47 students over the previous year. Orange County Schools is requesting an increase in the local per pupil allocation of $396.00. This requested increase in the local per pupil allocation for current expenses would increase the per pupil allocation to $4,387. This funding level would represent an increase in the current expense for Orange County Schools of $3,180,965. Orange County Schools Capital Investment Plan projects for FY2018-19 totals $4,368,510 with a 5-Year total of $53,598,720. FY 2019 Orange County Schools Local Operating Budget Request FY2018 Highlights  Full scale implementation of K-5 Literacy Framework with early promising results  Full implementation of increased access to gifted programs and K-2 nurturing talent  Read to Achieve Camp extended to full day  Further implementation of Restorative Justice & Capturing Kids’ Hearts  6,744 Breakfast, 11,113 Lunches and 211 snacks served through the summer food service program. This has been provided in schools and community centers across the area  District Performance Composite grew 1.2%  12 out of 13 schools met or exceeded growth  Universal Breakfast  Seven Elementary Schools; 3,336 students  Breakfasts served o FY2017 228,000; 3,432 students • Approx. 66 meals/Elementary ADM o FY2018 to date 142,500 • ~18,000/month • Approx. 59 meals/Elementary ADM  Grab and Go option available daily 3 FY2018 Budget Overview (pie chart) Funding History (bar graph) FY2019 Student Enrollment Projection  2018-19 District Enrollment Projection: 8,025 -Includes DPI ADM Projection of 7,345 -Includes 769 actual charter students (based on current charter enrollment) -County reduces students by 89 for out of district students  Revenue at current per pupil: $32,300,000 ADM $ 32,027,775 Fines/Forfeitures $ 220,000 Interest $ 7,000 Todd Wirt said Senate Bill 257 lays out the loss of teacher-student funding and salary and benefit increases, and they anticipate a $35 million budget, resulting in a $2.7 million shortfall. He resumed the PowerPoint presentation. Budget Update 2018-2019 School Year (chart) Class Size Update Class House Bill 90 Current Recommended FY2019 Recommended FY2020 Kindergarten 1:20 1:18 up to 1:20 1:18 1:18 1st Grade 1:20 1:16 up to 1:20 Allot 1:16 up to 1:20 1:16 2nd Grade 1:20 1:17 up to 1:20 Allot 1:17 up to 1:20 Allot 1:17 up to 1:19 3rd Grade 1:20 1:17 up to 1:20 Allot 1:17 up to 1:20 Allot 1:17 up to 1:19 Chair Dorosin asked if the requirement of HB90 is 1:20. Todd Wirt said that the flexibility will end in 2020, and OCS has prepared for the shortfalls, and identified areas where cutbacks can be made. He said OCS wants to protect employees who are student-facing teachers, including specials teachers. He resumed the PowerPoint presentation. FY2019 Continuation and Add’l Continuation to Fund Mandates and Expectations 4 Estimated Continuation $ 2,700,000  $4,325 per pupil ($334 p/p increase) Additional Continuation to Fund Mandates $ 500,000 and Expectations  $ 62 per pupil increase Total Additional Funds Requested $ 3,200,000  $4,387 per pupil ($396 p/p increase) Fund Balance Appropriation Fund Balance Appropriations:  $175,000: Environment Enhancement Program  $100,000: Technology Operating Budget  $500,000: Corporate Drive Up fit (Re-appropriation)  $ 41,000: Student Assignment Balance  $240,000: Safety/Security Balance -Total FY2019 Fund Balance Appropriations: $1,056,000 FY2018 Anticipated Unassigned Fund Balance $ 1.0M - $ 1.5M *3% Fund Balance Threshold = $1.1M Todd Wirt asked the BOCC if it would revisit a policy limiting the OCS unassigned fund balance of 3%, and consider aligning OCS with the CHCCS. He said there are cash flow constrictions at beginning of the year, and non-County reimbursements cause problems with fronting costs. He resumed the PowerPoint presentation: Fund Balance Continued  Current BOCC policy limits OCS unassigned fund balance to 3% of General Fund Budget. o Approximately $1.1M  Request BOCC consider aligning OCS’ limit with CHCCS – 5.5% o Cash flow constrictions at beginning of year • Large annual payments of Insurances, Software Licensing, etc. o Non-County reimbursements delayed • Federal Government delays/shutdowns require OCS to front money for personnel costs (approx. $250K/month) Looking Ahead  Rewrite and redesign Student Code of Conduct to include Restorative Practices  Continue implementation of K-5 Literacy Framework  Continue to implement Bond Projects including a focus on safety and security  Student reassignment for optimization of facilities  Continue to implement creative strategies to recruit teachers of color in order to diversify our workforce QUESTIONS? Commissioner Marcoplos asked if the “fines and forfeitures” could be explained. Rhonda Rath, OCS Chief Financial Officer, said these refer to DUI charges that are funneled back through to the school systems. 5 Commissioner Rich referred to growth in Hillsborough and Mebane, and asked if there is communication with Mebane regarding the Schools Adequate Public Facilities Ordinance (SAPFO) numbers, to see how they affect OCS. Todd Wirt said last month he presented to the Mebane City Council about the wonderful schools in OCS that serve Mebane residents, and Craig Benedict, Orange County Planning Director, reviewed the SAPFO report. He said OCS has made good inroads with the Town Manager and City Council, and there is momentum to being added to SAPFO. Bonnie Hammersley said she has also spoken with Mebane leadership about the benefits of joining the SAPFO. Commissioner Price asked if social workers are in every OCS school. Todd Wirt said yes, one in each school. Commissioner Price asked if this is sufficient. Todd Wirt said it is not sufficient. He said the Governor came to Cedar Ridge High last week, and OCS encouraged the Governor to have flexibility in his budget for funds for these types of positions. He said some schools need more than one social worker because of a higher acuity of needs. Commissioner McKee referred to the possibility of increasing fund balance, and asked if this was due to timing of early expenses. He asked if OCS is drawing down this fund balance fairly closely now. Todd Wirt said OCS typically hovers within the percentage, at $1.2 – $1.3 million range. Chair Dorosin asked if there is a reason why OCS and CHCCS have difference fund balance amounts. James Barrett said this is due to the CHCCS special school district tax, which CHCCS receives later in the year and needs a larger cushion at beginning of year to meet payroll obligations. Chair Dorosin asked if making these fund balance percentages the same would negatively impact the County budget. Bonnie Hammersley said she did not think it would make any difference to the County. Chair Dorosin clarified if OCS is asking for additional funding up front to increase its fund balance to 5%, or using existing funds at a different time. Todd Wirt said it would use existing funds at a different time. Steve Halkiotis said the recent press conference held by the Governor at Cedar Ridge High School focused on putting a nurse in every school, as well as more school social workers and resource officers. He said he told the Governor that the BOCC made it possible to have asbestos removed from schools over 20 years ago, long before the state and federal governments looked into this issue. He said OCS have a nurse in every school, and long before the Governor came, OCS wanted to put a School Resource Officer in all its elementary schools. He said OCS has been proactive, with the help of the BOCC. He said only 10% of schools in North Carolina have a full-time nurse, and OCS and CHCCS are in an exclusive club, and it is scary for other schools. He said because of the relationship between the schools and the BOCC, health and safety issues have been addressed in an ongoing manner for a long time. Chair Dorosin said the Board appreciates this recognition. He referred to the student reassignment analysis being completed in anticipation of capacity issues, and encouraged OCS to also look at issues of socioeconomic and racial diversity. He referred to the living wage, and asked if the additional funds to bring 96 staff up to living wage is part of the additional contribution budget. Todd Wirt said yes. Chair Dorosin asked if OCS only gets the continuation budget, will these positions will remain below the living wage. 6 Todd Wirt said yes, and the topic would be sent back to the OCS BOE for discussion. Commissioner Rich asked if the current living wage could be identified. Bonnie Hammersley said the Orange County living wage is currently $13.75, and will increase to $14.25 on July 1, 2019. She said the County has a living wage for permanent employees of $15. Pam Jones said she will be sharing information regarding the OCS Capital Investment Plan (CIP). She said the plan is one of stewardship, and aging buildings need to be maintained. She said in 2013 OCS completed a facilities assessment, and has prioritized those since then, and the bond issue projects were built on this study. She said OCS also completed a safety and security assessment, which it continues to deploy. She said $2.5 million was included in the bonds that have been earmarked for safety and security. She said the third area of study, completed in 2016, is the roof study, and this is also lot of what is seen in the bond projects and CIP. She said if the exteriors of buildings are not secure, the interiors will fail, and roofs, windows and walls are being maintained. Pam Jones said there are a few material changes in the CIP since last year: 1.) Cameron Park Elementary has air quality issues and water filtration problems, and exterior of the building needs resurfacing and windows replacing; 2.) $100k is needed for New Hope Elementary HVAC, some air handlers are failing early. Pam Jones said the CIP is essentially the same as last year, and just deals with the basics. She said she would like to update the BOCC on two primary bond projects included in the CIP: 1.) The Orange High School geothermal project, which has bids in, and will be taken to the OCS BOE’s next meeting. She said it came in over estimates, but not as much as feared, and this will be completed in phases over two years, with renovations being completed along the way. She said floors and wings will be opened up one at a time, until the work is complete. She said modular units are being considered, since there is not enough capacity, and OCS hopes for creativity from contractors to get the project done as quickly as possible. She said OCS is working on a public relations campaign to communicate with the neighbors regarding noise and run off. She said the payback on this project is about 10 years, but may take 11-12 years. 2.) Cedar Ridge High School addition has a designer in place who is working with the planning committee on site visits, and all are excited about enhancements and different ways to offer programs. She said it is hoped that this will go out to bid in the fall, and be completed in August 2022. James Barrett referred to the topic of efficiencies of these types of CIP investments, and said this year, as CHCCS does efficiency projects, it is putting ½ the money in a general pot and ½ back in an extra capital/reinvestment funds for longer term work going forward. Commissioner Rich said she went to an Information Technology meeting at Cedar Ridge, and there were places in school with no Wi-Fi. She asked if OCS is working on improving this for students, teachers and everyone else. Pam Jones said OCS knows there are dead spots, and Information Technology has reviewed it, but there is no answer right now. Commissioner Rich said a couple of Commissioners have discussed putting Wi-Fi on school buses, and she spoke with someone at Google to see what it is doing in South Carolina. She asked if there is any possibility of doing this so kids can do their homework on the bus. Todd Wirt said OCS uses Synovia to track buses, which also evaluates connectivity levels throughout the County based on the bus route. He said OCS is pulling this data to 7 review the high and low spots pertaining to connectivity. He said other systems are being researched, and the wheels are in motion. Commissioner Rich asked if OCS would please keep the County involved in, and updated on, this process. Steve Halkiotis said he spoke with the OCS Information Technology director, who estimated that 30-35% of students do not have access to the Internet on a regular basis, which is unacceptable in this day and age. He would like for all the boards to get an update from the Information Technology heads throughout all systems in the County on improving this situation. Commissioner Rich said that number seems higher than what she has heard, but all do need to work together. She said this does not need to wait until the next joint meeting. Commissioner Price said she has met with staff from Google, who wants to get in all the rural counties in North Carolina, not just Chapel Hill. She said it may be worth following up about this. Commissioner Price referred to the school repairs, and asked if the schools will be at least minimally safe upon the completion of the first phase. Pam Jones said OCS is prioritizing the money where it sees the greatest needs, and addressing safety issues quickly. She said other issues are longer term. She said the bond money should allow the security of all buildings to be addressed at the same time, and access control is the top priority. Commissioner Price said there are some schools where one can come and go with ease, due to open areas, and there are broken steps, which are dangerous. Pam Jones said things like broken steps should be able to be addressed with recurring capital and daily maintenance funds. Commissioner Marcoplos said he and Commissioner Jacobs went to a Cooperative Extension event last year, and learned about water catchment and reuse system at Stanford Middle High. He asked if Cedar Ridge would be a good candidate for a similar system, given the nearby catchment basin. Pam Jones said OCS has not discussed this for Cedar Ridge, but can look at the potential pond and irrigation use. Commissioner Burroughs referred to the issue of student reassignment, and reiterated the importance of looking at diversity. She said it seems to be a good time to look at this, and while it is never easy, it is still the right thing to do. Todd Wirt said last year the OCS BOE reviewed its policy around student reassignment. He said the BOE reviewed policies across the state and nation, from schools that regularly did reassignments, and are balancing diversity with efficiency and proximity. He said the BOE has done a lot of good work in preparation. Chair Dorosin said it would be great if OCS could share that with the BOCC. Brenda Stephens said she was a part of the student reassignment last time, and OCS always has diversity on the list, and it is a high priority. Chair Dorosin asked if there is update on the Eno River charter school property that OCS purchased. Todd Wirt said OCS will be taking it over at the end of the school year, and delayed the upfit of the building due to possibly needing to use the fund balance appropriation to balance the budget. He said when this building does move forward, OCS will upfit the first building to move central admin staff from Orange High School (OHS), in order to create one-stop shop for parents, which will include child nutrition, afterschool services, enrollment services, translation, etc. all in one building. He said this will also increase capacity at OHS. He said OCS is still in discussions with the BOE regarding the use for the second building, but know that some work is needed on the site as well as additional parking. Chair Dorosin asked if there is an anticipated timeline. 8 Todd Wirt said he is uncertain at this time; and it depends on what happens with the budget. He said OCS has contacted someone to talk design for the upfit, but it needs to be prioritized with other projects; but preference is sooner rather than later. 2. Chapel Hill-Carrboro City Schools • FY 2018-19 Operating Budget Presentation and Discussion • Capital Investment Plan Discussion • Custodial Contract Services Analysis Based on the North Carolina Department of Public Instruction’s projected Average Daily Membership (ADM) enrollment for FY2018-19, Chapel Hill-Carrboro City Schools enrollment would increase by 235 students, while charter students would remain at 162, less Out-of- County tuition paid students of 242, which represents an increase of one student from the previous year. The total budgeted students in FY 2018-19 would be 12,394, an overall increase of 234 students over the previous year. Chapel Hill-Carrboro City Schools is requesting an increase in the local per pupil allocation of $253.00. This requested increase in the local per pupil allocation for current expenses would increase the per pupil allocation to $4,244.00. This funding level would represent an increase of $4,069,615 in the current expense for Chapel Hill-Carrboro City Schools. Chapel Hill-Carrboro City Schools Capital Investment Plan projects for FY 2018-19 totals $6,747,291, with a 5-Year total of $33,471,065. Pam Baldwin made the following PowerPoint presentation: 2018-19 Board of Education Requested Local Budget April 24, 2018 2017-18 District Highlights • District Wide Equity Plan Implementation • Restorative Practices & Discipline Data – data showing improvement; 44% reduction in office discipline referrals; looking closely to insure that students are in class • Co-located Mental Health – 3 agencies and good opportunity for students and families to discuss these issues • CTE Fire and EMT programming – high pass rate; program is going well. Looking to expand program. • The Innovation Project allows teachers to develop virtual classrooms at no cost to schools. • Northside AVID program; 171 4-5th graders involved. • Phoenix Evening Program – overage or drop out students; utilizing flexible scheduling with student teachers. • Newcomer Graduates – 116 newcomers to address students in first year in our country/school district to acquire language acquisition prior to entering schools. • TRAC Grant – externships, internships from ages 16-22 to provide employable skills • LAUNCH – early identification of missing skills; pilot program • District-wide focus: Culture of Safety – hired director of safety; repurposed position. Partner with the Police Department and principals. Safety is at the top of capital needs • Fiscal Responsibility 9 o Program Reviews o Budget Reallocations – Look at staff’s talents to best utilize skills and funds. Also identifies gaps o Financial Reporting Excellence Strategic Plan Development • Student and Staff Forums, Surveys, etc. • Focus Groups – 44 focus groups; 475 people involved, good representation of needs • Four Key Themes Emerge: o Whole Child o Human Capital o Organizational Structure o Family and Community Engagement Todd LoFrese presented this portion of the PowerPoint: 2018-19 Budget Priorities • Our CORE work • Mental health and behavior support • Mandates and continuation expenses • Salaries, recruitment and retention • Strategic plan goals – budget tied to strategic goals 2018-19 Student Enrollment Projection 2018-19 State Enrollment Projection 12,474 2017-18 State Enrollment Projection 12,239 District Projected Enrollment Increase 235 Projected State Mandates State Mandates • 6.9% State pay raise for teachers incl. benefits $ 1,488,731 • $1,000 pay raise for other employees 857,000 • State retirement match increase (17.13% to 17.64% est.) 500,000 • Employer health insurance match increase ($5984 to $6104 est.) 211,500 TOTAL OF CONTINUATION BUDGET REQUESTS $ 3,057,231 Priority Expansion Budget Recommendations • Gifted Specialists – Additional .5 FTE for each middle school, 2.0 FTEs $ 164,944 (restore positions) • Additional TA/Bus Driver position for each elementary school, 11 FTEs 427,761 (partially restore; possibly use as media specialists) • Professional Development: Additional 5 days for teacher assistants 231,700 • Implementation of classified hiring local supplement @ 4.5% 200,000 • Inflationary budget increase for Facilities Department 133,000 • Middle School Behavior Support Program 158,500 (not currently provided but needed) • Mental health professionals for each traditional high school 219,000 10 TOTAL $1,534,905 Chair Dorosin asked if the salary for a bus driver could be shared. Todd LoFrese said between $14-15/hour TOTAL OF STATE MANDATES AND EXPANSION RECOMMENDATIONS State Mandates $3,057,231 Expansion Requests 1,534,905 TOTAL $4,592,136 Projected Local Revenue Increase • County per pupil for enrollment change $ 933,894 • 1.5% Inflationary increase to district tax 346,393 • Net change in other Local revenues 175,000 Total Net Increase $ 1,455,287 PROJECTED REVENUES COMPARED TO GRAND TOTAL OF RECOMMENDED REQUEST • Revenue Increase $1,455,287 • Less: Grand total of requests $4,592,136 • Budget Shortfall ($3,136,849) Ad Valorem Tax Increase Required to Fund Budget Shortfall Using Current Year Valuation: County Ad Valorem Tax Increase $3,136,849/$1,069,015 = 2.93 cents $253 per pupil increase Local Fund Balance Projection • Assign $1,000,000 in Fund Balance for 2018-2019 • Estimated year-end unassigned fund balance for June 30, 2018 is $6.9 million or 9% • The projected 5.5% target is $4.2 million • $2.7 million above the target • Fund balance to be directed to facilities – construction costs are increasing Questions Commissioner Burroughs referred to the middle school behavioral support, and said she knows this has been an ongoing problem. She said there was a program several years ago called Triumph, and asked if this no longer exists. Todd LoFrese said Triumph no longer exists. He said Triumph changed firms several years ago, and then funding ceased. He said there are currently no options for students experiencing significant needs. Commissioner McKee asked if the $253 per pupil increase is exclusive of a possible request for an increase in district tax. Todd LoFrese said yes. He said the BOE voted to provide flexibility to the BOCC to increase the special district tax up to the amount needed to fund the request, which is outlined in the transmittal memo. 11 Commissioner McKee said he knows citizens voted in the special district tax, but he has concerns about increasing this tax, and thus increasing the disparity between the schools James Barrett said this tax has not been increased, other than when new schools have been built. He said the request is boiler plate language that has always been put in the overall budget request, allowing for the BOCC to meet CHCCS operating needs by increasing the tax, which it never has. He said CHCCS does not want to increase disparity between the districts. Commissioner Price asked if CHCCS seeks an increase from the County, as well as the district tax. She said OCS is asking for a higher increase than CHCCS, but wonders if the two increases requested by CHCCS would be closer to the one increase request made by OCS. She asked if the BOCC were to approve the OCS per pupil increase, would it cover the amount requested by CHCC. Chair Dorosin said if the BOCC approves increases for one system, it must approve it for both. Chair Dasi said if the BOCC approves the increase outlined by OCS, there would be no need to increase the special district tax for CHCCS. Commissioner Jacobs asked Bonnie Hammersley if she could identify how much of a tax increase is being recommended to cover the school bonds. Bonnie Hammersley said this will be phased in over 4 years, as well as a one-time increase of $.05. Commissioner Jacobs said last fall the BOCC discussed that it would be unlikely that the County could afford the requested increase, yet each year the BOCC is asked to do so. He said he realizes that the schools are trying to advocate for the needs of the students, but it is important to realize the limitations of the taxpayers at some point. Chair Dorosin said to be fair, everyone is being realistic and offering both continuation and expansion budgets, knowing that the bonds have to be paid for. Commissioner Burroughs said she has a suggestion for the school bus driver problem. She said Commissioner McKee has a license and did it previously, and maybe he could do it. Chair Dorosin said some OCS employees are paid less than minimum wage, and asked if the number of employees/contractors in CHCCS making less than $15/hour is known. Todd LoFrese said all district employees are making the current Orange County living wage of $13.75/hour. He said the information provided in the handout is a bid analysis for custodial contract bids last spring, and the cost difference between the base bid and the living wage bid, just for custodial services, is $400,000. He said CHCCS could not move forward with the higher bid, and he is not certain how many employees are with the contractors currently. Chair Dorosin asked if the number of contracted custodians is known. Todd LoFrese said he is unsure. Chair Dorosin said the cost of these employees is still a major concern to the Board of County Commissioners, and the possibility of bringing the services in house is still on the table. Todd LoFrese said the CHCCS BOE approved a policy in January 2017 to insure that all employees received the living wage, and custodial and child nutrition services are the only exception. Steve Halkiotis said he wished they had control over the $1.2 million state mandate increases. He said the districts should run the fund balance into the ground, and if a crisis arises, approach the BOCC for a bail out. He said Guilford County recently suffered a tornado, and one cannot know what Mother Nature may do. He said the bottom line is to take care of the kids, and if that means using the entire fund balance, he will vote to do so. He said he cannot control Raleigh, and the districts are caught between a rock and an extremely hard place. 12 Commissioner Marcoplos asked if the $400,000 in the living wage bids accounts for the food service employees. Todd LoFrese said there is a $400,000 difference between the base bid and the living wage bid for the custodial cleaning services. He said data on the child nutrition employees is not included at this time, but it is estimated to be an additional $300,000. Commissioner Marcoplos asked if these numbers reflect a continuation of contract services, at a living wage, as opposed to bringing these positions in house. He asked if the BOCC could receive cost analysis for bringing these positions in house. Todd LoFrese said this information is in the evening’s packet for custodial staff. He said information for bringing child nutrition in house has not been calculated since 2010. Chair Dasi said these budgets are based on needs, not wants, and these are critical needs for the students. She said it is important to consider investment into the schools and question the tax increase, but to remember the overall value of quality education in Orange County. She said it is a draw for people to live here. She said the schools have brought forth specific needs with transparency; and this budget does not include even half of the existing needs. Commissioner Jacobs said the BOCC understands that the schools could be requesting much more than they are. He referred to the discussion at the state level about a school construction bond, and asked if this would cover renovation of existing schools, or would it only be for new schools. Todd LoFrese said, as currently written, it would cover renovation of existing schools. He said CHCSS would receive about $7 million. Commissioner Jacobs said this is an endless circle that has been considered for a long time, and there is the constant choice between maintaining facilities and operating funds. He said he would not want to set aside funds for capital, but rather for programs, especially if there is a possibility for a state bond. He said Orange County is way ahead of many other counties in the state, and he does not understand why discussions about the fund balance have been so heated in the past. He said there should be less talk about asking the public for more money, and rather looking at existing funds and how they can go further. Commissioner Price asked if the $253 increase includes the special district tax increase. Chair Dasi said this number is the total need, regardless of how the funding is procured. Mary Ann Wolf thanked everyone involved for their efforts on behalf of the schools. She said it is important to remember that the state does not make this job easy, and North Carolina is very low in teacher and principal pay. She said the local schools are striving for excellence in students, and CHCCS are just a couple of dollars above the national average of per pupil spending. She said it is hard to recruit excellent people, and keep them here. Chair Dorosin said he is still concerned about the living wage. He said paying the living wage is important, but it is not the same as bringing positions in house, as contract employees do not get benefits. He said the County has a commitment to take care of the people who work in the community. Chapel Hill High School Updates (aerial photos and renderings) Todd LoFrese said this is being done in phases: Phase one includes removing the mobile units during summer and building new addition in academic building. He said the final site plan includes new access road, new right turn lane for better traffic flow, new parking lot for students. He said it is important to separate drop off areas from student drivers. He reviewed the following PowerPoint slides: CHHS Key Dates 13 • May 2: Chapel Hill High School Open House • May 23: Town of Chapel Hill Public Hearing and Special Use Permit • May 25: Special Board of Education Meeting to approve GMP and notice to Orange County Finance Staff • June 11: Commence construction • December 2020: Project completion Unfunded CIP Worksheet • What is feasible with the remaining projects? o Will there be additional $? o Target date for additional funding? o Focus only on broken infrastructure? o Build new schools? Requires $$$$$ But where? • Implement the plan to “escape” the perfect storm o Older facilities in disrepair o Newer facilities that have become older o Class size mandate – need to meet in 2021 o Few school sites remaining Questions Commissioner Jacobs referred to the custodial services, and asked if McDougal elementary and middle are considered as one or two schools. Todd LoFrese said for bid purposes, it is considered one school, but in tallying schools, it is two schools. Commissioner asked when Morris Grove opened. Todd LoFrese said 2008. Mark Marcoplos said he is bewildered by the cost of bringing the contracted services in house. He said it may be helpful to have a separate meeting to discuss this topic further. Chair Dasi said this is a legitimate topic for discussion, but if the schools cannot meet basic needs, it may not be realistic to consider this proposition. Commissioner Marcoplos said it is a serious issue, and there is a moral imperative to the employees. He said it is also an educational issue, and children should not be taught that it is acceptable to hire people, but pay them less than their worth. Chair Dasi said the same logic could be applied to teachers, who are not being paid their worth. She questions whether custodial staff rises to the same level of priority. Chair Dorosin agreed it is worth having a discussion. He said the current contract is almost $1.4 million. Todd LoFrese said that was the previous year’s contract, and the new contract is $1.6 million. Chair Dorosin said it is $1.6 million compared to potentially $3.2; although he is unclear on how $3.2 million is reached, without knowing the number of custodians. Todd LoFrese said he does not know the number of contracted services staff, and does not know the contractor’s staffing model. He said the number in the column is based on Department of Public Instruction (DPI) standards and recommendations for facility square footage. He gave an example with Carrboro Elementary being $107,000, which is equal to 3 custodians receiving a living wage, state health insurance, and retirement benefits. He said this would allow for 3 employees to clean 60,000 square feet, and industry expectations are 18,000- 20,000 square feet per custodian. 14 Chair Dorosin said these numbers highlight how contracted companies do this so cheaply: there is no living wage, no benefits, and overworked staff. He said this gets to the question of values. He referred to the OCS groundskeepers being contracted out, but asked if nutrition services are in-house employees. Todd Wirt said groundskeepers are contracted at 7 elementary schools, and custodial services are contracted in various amounts at 9 of the OCS schools. He said to move to the living wage would be an additional $300,000 and to bring all custodial services in house would be just over $500,000. Chair Dorosin said the BOCC has all these numbers, and should be able to have a policy conversation in collaboration with the schools, or create a committee to look at the topic. Todd LoFrese said the numbers presented reflect the cost for evening services, and all CHCCS have a head custodian during the day, which is a district employee. Commissioner Price said she would be interested in knowing who these contracted companies are, because if they are local, she would not want to put them out of business because of a policy decision; and would like to gather information. Margaret Samuels said it is important to also look at childcare providers who also receive lower pay, especially if universal pre-K is going to be considered. Dr. Wirt asked if this committee and discussion would be a part of this budget process. Chair Dorosin said probably not for this process, due to the timing, but it is frustrating talking about the same things over and over without a resolution. Commissioner Rich asked if a committee was to meet, could it look at phasing in this to bring custodians in house, if the funding is not available at one time. Chair Dasi said if a committee was to meet it would be helpful to include other issues that are critical such as benefits for teachers (dental, maternity leave, etc). She said any policy that directs how the schools spend money should consider all needs/wants. Steve Halkiotis said custodians were contracted out several years ago, to the applause of many, in order to cut costs, and if it comes down to bringing custodians in house or feeding children through the universal breakfast program, he will vote for feeding children. He said benefit plans are being changed in July for state employees, and it is unclear how this will affect things, but he thinks decisions like these should be at the discretion of the school boards. Chair Dorosin said the BOCC changes and priorities change, and he does not expect having to pit hungry children against custodial employees. Commissioner Jacobs said he agrees with Margaret Samuels and Rani Dasi, and if there is going to be a committee, it should bring forth the highest priorities for review. He said there are different policies for the BOCC and the Boards of Education, and he would hope that a collective decision could be made about the highest priority, instead of going around in circles. Commissioner Jacobs said he would like to request an educational item for the next meeting to look at how many schools have been built, what they cost, how it effected the tax rate and capital funding for renovations of existing schools, and the per pupil rate. He said per pupil is a huge investment, and the BOCC is pouring money into educating the children of Orange County, and state funding is always being cut. He said it would be nice to see how far the County has come in the last 20 years. Commissioner Marcoplos said he would be useful to see numbers related to some of the other needs mentioned this evening, such as dental care, living wage, and the universal breakfast plan, prior to convening a group. He said he would like to take a running shot at tackling these issues this year, basing it on the numbers and the program costs that are already known. 15 Commissioner Burroughs said she likes hearing the passion about all these different topics, but reiterated that the school boards are elected by the citizens to make these decisions for the children and the staff. Chair Dasi asked if there could be clarity and scope given to the task from the BOCC, and she is hearing heartburn on what the schools have requested. She asked if the BOCC is offering more money to tackle some of the issues mentioned this evening, or would it be in lieu of the schools’ requests. She said it would be helpful to know how much effort should be put into this exercise. Chair Dorosin said it would not be in lieu of, and is rather an item in which the BOCC has interest, outside of the schools’ requests. He said the BOCC would like to know the cost breakdown. He said how everything gets prioritized is open for discussion, and all of these items are educational priorities because they are all reflected in the work of the schools. Commissioner Marcoplos said he would not see this as in lieu either, and the BOCC understands the real needs. He said he would like to see what it would take to address these items. Chair Dorosin said perhaps the BOCC could give some money, and the schools could give fund balance money. Margaret Samuels said the fund balance is for one-time needs, and the future of funding is unknown, and there may come a time again where cuts have to be prioritized. She said if the schools are given the money, they will spend it. She said CHCCS has provided a chart on custodial staff for two years, and while it may shift a little bit, the bottom line is more money, regardless of from where it comes. Chair Dorosin said he hates for everyone to act out of fear of something bad happening, as opposed to acting out of hope to achieve something positive. Commissioner Price said if new policies are going to be considered, it is important to look at all County departments that use contracted services. Chair Dorosin said he thinks this has been happening already. Chair Dasi said she is very concerned about any policy that would direct school board expenditures. Commissioner McKee echoed Chair Dasi’s concerns, and said it is not the role of the BOCC to control another elective body. Steve Halkiotis said they are all adults, and make choices freely. He said if he feels compelled to follow school board dictates, and not those of the BOCC, he will do so. Chair Dorosin said it is all interrelated, and decisions are being made together all the time, and policies are made by collaboration. He said he is respectful of the school boards, but he is going for synthesis. James Barrett said on behalf of Chapel Hill High School alumni, he is not shedding a tear over tearing down the old buildings. Chair Dasi thanked the BOCC for the conversation, noting that all are passionate, and may not always agree; but it is good conversation. Chair Dorosin echoed Chair Dasi’s comments, and said he appreciated the open conversation. He said it is very is helpful, and feels the process is improving all around. Commissioner Rich agreed, and said it is easier to look at budgets now as the two districts are working together so well. 3. Adjournment The meeting was adjourned at 9:20 p.m. Mark Dorosin, Chair 16 Sherri Ingersoll Deputy Clerk II