Loading...
HomeMy WebLinkAboutMinutes 11-05-2020 Virtual Business Meeting 1 APPROVED 12/07/2020 MINUTES ORANGE COUNTY BOARD OF COMMISSIONERS VIRTUAL BUSINESS MEETING NOVEMBER 5, 2020 7:00 p.m. The Orange County Board of Commissioners met for a Virtual Business Meeting on Thursday, November 5, 2020 at 7:00 p.m. COUNTY COMMISSIONERS PRESENT: Chair Penny Rich, Vice Chair Renee Price, and Commissioners Jamezetta Bedford, Mark Dorosin, Sally Greene, Mark Marcoplos, and Earl McKee COUNTY COMMISSIONERS ABSENT: COUNTY ATTORNEYS PRESENT: John Roberts COUNTY STAFF PRESENT: County Manager Bonnie Hammersley, Deputy County Manager Travis Myren, Interim Clerk to the Board Greg Wilder, and Assistant Deputy Clerk II Allen Coleman (All other staff members will be identified appropriately below) Chair Rich called the meeting to order at 7:00 p.m., and asked the Board of County Commissioners (BOCC) to accept a roll call. Roll call ensued. Due to current public health concerns, the Board of Commissioners conducted a Virtual Business Meeting on November 5, 2020. Members of the Board of Commissioners participated in the meeting remotely. As in prior meetings, members of the public were able to view and listen to the meeting via live streaming video at orangecountync.gov/967/Meeting-Videos and on Orange County Gov-TV on channels 1301 or 97.6 (Spectrum Cable). In this new virtual process, there are two methods for public comment. • Written submittals by email • Speaking during the virtual meeting Detailed public comment instructions for each method are provided at the bottom of this agenda. (Pre-registration is required.) 1. Additions or Changes to the Agenda Chair Rich requested to add consent agenda item 8-g to change the 2020 BOCC meeting calendar to allow for an additional closed session on November 12, 2020, to begin at 5:30pm. The Board agreed by consensus. Chair Rich noted some additional agenda information that was received by the BOCC prior to the meeting. Arts Moment— No Arts Moment was available for this meeting. 2. Public Comments (Limited to One Hour) 2 a. Matters not on the Printed Agenda Kaye Brown said she wanted to speak about the Buc-ee's travel center, which if approved, would be very close to her horse farm, and a local road would become right turn only. She said she is very concerned about this possibility. She said Buc-ee's will bring a great deal of traffic, and asked if the BOCC and staff would look into this issue very carefully, and consider other areas around the country where Buc-ee's already exists, who are experiencing major traffic problems. She said she expects staff will find that Efland is not the right location for such a project. 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 Bedford said the election was a big event this week, and she expressed appreciation to Rachel Raper, Director of Elections, and all poll workers. She said the election was very peaceful, and reassured residents that insuring an accurate count is normal. Commissioner Greene echoed Commissioner Bedford's comments. Commissioner Price thanked voters for taking time to cast votes. Commissioner Price said a resolution will be forthcoming in December, in partnership with Commissioner Dorosin and Annette Moore, Human Rights and Relations Director, regarding reparations. Commissioner McKee endorsed previous comments about voting, and said the right to do so is a precious commodity which must be protected. Commissioner Marcoplos said he had eye surgery today, and will need to rest his eyes periodically during the meeting. Commissioner Dorosin said election sites went well here in Orange County, but it important to remember those that experienced voter intimidation in other areas. Chair Rich said there were a few issues with local voting, causing the Board of Elections to conduct an emergency Board of Elections meeting, and all was addressed very promptly. Chair Rich asked if the Clerk's Office would provide a list of boards and commissions that receive a stipend, and the type of stipend that is received. Chair Rich said studies show a lot of pandemic fatigue, and there is concern that numbers could rise in Orange County. She said the second peak of the pandemic is projected for the second week of December, which is 2 weeks after Thanksgiving. She said COVID testing sites are available and being administered by Orange County and UNC Hospital for free at the current time. She said UNC Hospital announced there would be a hierarchy of how the vaccine will be administered, once it is received. She encouraged residents and staff to look at the COVID data available on the County's website. Chair Rich said UNC will have 100 students on campus over the holidays, as these students have nowhere else to go. She said plans for the spring semester are still fluid at this time, with many options being considered. 4. Proclamations/ Resolutions/ Special Presentations NONE 5. Public Hearings NONE 6. Regular Agenda 3 a. Approval and Adoption of 2021 Reappraisal Schedule of Values The Board considered voting to approve and adopt the proposed 2021 Schedule of Values, authorizing the Chair to sign the Order of Adoption for the 2021 Schedule of Values, and directing staff to publish the appropriate advertisements. Nancy Freeman, Orange County Tax Administrator, reviewed the item below: BACKGROUND: The proposed 2021 Schedule of Values was presented to the Board at the September 15, 2020 regular meeting. Immediately after, the Tax Administrator advertised in The Herald-Sun, News of Orange and News and Observer notice of the availability of the Schedule of Values for public inspection, and the date of the public hearing on the Schedule of Values. The Board held the public hearing regarding the Schedule of Values on October 6, 2020 regular meeting. These actions were taken in accordance of the North Carolina General Statute (NCGS) 105-317(c)(1) and (2). In addition, NCGS 105-317(c)(3) states: "When the board of county commissioners approves the final schedules, standards, and rules, it shall issue an order adopting them. Notice of this order shall be published once a week for four successive weeks in a newspaper having general circulation in the county, with the last publication being not less than seven days before the last day for challenging the validity of the schedules, standards, and rules by appeal to the Property Tax Commission. The notice shall state: a. That the schedules, standards, and rules to be used in the next scheduled reappraisal of real property in the county have been adopted and are open to examination in the office of the assessor; and b. That a property owner who asserts that the schedules, standards, and rules are invalid may except to the order and appeal therefrom to the Property Tax Commission within 30 days of the date when the notice of the order adopting the schedules, standards, and rules was first published." The timeline for the 2021 Reappraisal Schedule of Values adoption process is as follows: • September 15, 2020: Submission to Orange County Board of Commissioners • September 16 & 17, 2020: Advertise in newspapers • October 6, 2020: Public hearing on SOV • November 5, 2020: Adoption of SOV • November 8 & 11, 2020: Publish 1 st notice of adoption • November 13 & 18, 2020: Publish 2nd notice of adoption • November 20 & 25, 2020: Publish 3rd notice of adoption • November 27, 2020: Publish 4th notice of adoption • December 8, 2020: Last day for taxpayer to appeal the SOV. ATTACHMENT 1 ORDER ADOPTING THE SCHEDULES OF RULES, STANDARDS AND VALUES FOR MARKET VALUE AND PRESENT-USE VALUE 4 WHEREAS, pursuant to N.C.G.S. 105-286, all real property in Orange County will be reappraised in accordance with the provisions of N.C.G.S. 105-283 and N.C.G.S. 105-317 as of January 1, 2021; and WHEREAS, pursuant to the provisions of N.C.G.S. 105-317, the Tax Administrator submitted the proposed Schedules of Rules, Standards and Values for Market Value and Present-Use Value to the Board of County Commissioners on September 15, 2020; and WHEREAS, notice of submission to the Board of County Commissioners and the date of a required public hearing was advertised in the News of Orange on September 16, 2020, and News and Observer and Herald-Sun and on September 17, 2020; and WHEREAS, a public hearing on the proposed Schedules of Rules, Standards and Values was held on October 6, 2020; NOW, THEREFORE, IT IS ORDERED that the submitted Schedules of Rules, Standards and Values to be used in appraising all real property located in Orange County as of January 1, 2021 is hereby adopted. Notice of this order of adoption shall be published once per week for four consecutive weeks in the News of Orange, News and Observer and Herald-Sun. The adopted Schedules of Rules, Standards and Values shall be appealable to the State Property Tax Commission for thirty days, ending December 5, 2020. The adopted Schedules of Rules, Standards and Values is available for public inspection at the Orange County Tax Office, 228 S. Churton Street, Hillsborough, NC and the Clerk to the Board of Commissioners, 300 West Tryon Street, Hillsborough; and electronically on the Orange County website. So ordered this 5th day of November, 2020. Penny Rich, Chair Orange County Board of Commissioners A motion was made by Commissioner McKee, seconded by Commissioner Price to approve and adopt the 2021 Schedule of Values and, authorize the Chair to sign the Order of Adoption approving the 2021 reappraisal Schedule of Values, and direct staff to publish in the The Herald Sun, News of Orange and News and Observer the proper advertisements concerning the notice of adoption. Chair Rich called each Commissioner by name (roll call). VOTE: UNANIMOUS b. Affordable Housing Advisory Board (AHAB) Funding Recommendations for 2020 Affordable Housing Bond Program (RES-2020-067) The Board considered voting to adopt a resolution awarding funds for the 2020 Affordable Housing Bond Program based on the funding recommendations of the Affordable Housing Advisory Board. Erika Brandt, Housing and Community Development Program Manager, reviewed the item below: 5 BACKGROUND: In the fall of 2016, Orange County voters passed a $5 million Affordable Housing Bond. Half of the bond funds ($2.5 million) were awarded in 2017. The 2020 application cycle is for the remaining $2.5 million of the bond funds. Eligible projects are new construction and/or rehabilitation for homeownership and/or rental development affordable to low-income households. Projects may be mixed-use and/or mixed- income. No more than 20% of residential units may be set aside for people with disabilities, in compliance with best practices outlined in the State of North Carolina's Olmstead settlement agreement. Land banking is not an eligible use. Eligible applicants for funding are: nonprofit organizations involved in affordable housing and community development (including faith-based organizations), for-profit developers, and joint ventures between eligible nonprofit and for-profit entities. The application evaluation scorecard (see Attachment 1) considers the following factors for each proposed project: (1) income and vulnerable population targeting, (2) targeting of households currently living and/or working in Orange County, (3) leveraging of other funding sources, (4) building and site design, including environmental sustainability and accessibility features, (5) community design, including neighborhood compatibility and location, (6) community sponsorship, engagement, and support, (7) project feasibility, and (8) developer experience. The application cycle opened on June 8, 2020 and closed on July 31, 2020. Four applications were submitted, summarized below and in Attachment 2. Weaver's Grove (Habitat for Humanity): $817,080 Community Partners: N/A Funds will be used to assist with infrastructure and site improvement costs for Weavers Grove, Habitat's future development of 100 affordable homes off of Sunrise Road in Chapel Hill. Habitat also plans to sell 136 finished lots to market-rate builders to develop entry-level homeownership opportunities. The project's vision is to create a thriving, mixed-income community of homes that are aesthetically pleasing, architecturally integrated, and energy efficient. This would be the first affordable housing development in this section of Chapel Hill. Chase Park Apartments Stairwell Rehabilitation (InChuCo): $165,840 Community Partners: N/A Funds will be used to make critical repairs to 8 elevated stairwell landings between the upper levels of the 4 residential buildings at Chase Park Apartments, a 45-year old complex home to 40 affordable units. The stairwell landings require immediate attention because of their deteriorated condition. Further, heavy rainfall from Hurricanes Michael and Florence damaged the road and now the creek-side lane is closed. However, HUD will not endorse a loan to repair the only road into and out of the complex until the stairwell landings are replaced. The complex's estimated remaining useful life is estimated to be at least an additional 40 years barring any natural disasters PEACH Apartments (EmPOWERment, Inc.): $700,000 Community Partner(s): Pine Knolls Community Center Funds will be used to construct 8 affordable rental apartments in the Northside Neighborhood Conservation District at the location of the former Pine Knolls Center. This project will produce a mixed-income, multigenerational apartment building that will honor the historical culture of this neighborhood. 6 2200 Homestead Road (Center for Community Self-Help): $817,080 Community Partner(s): CASA, Community Home Trust, Habitat for Humanity Funds will be used to develop infrastructure and site improvements at 2200 Homestead Road to prepare individual parcels for construction of approximately 117 affordable rental and affordable homeownership units. Site development includes demolition of an existing vacant building, site grading and paving, installing water, sewer, and storm water infrastructure, and construction of community amenities, such as greenways, open spaces, sidewalks, outdoor seating, community garden, basketball court, and landscaping throughout the site. Applicant Funding Request Center for Community Self-Help $ 1,500,000 EmPOWERment, Inc. $ 700,000 Habitat for Humanity of Orange County $ 1,500,000 Interchurch Council Housing Corp $ 165,840 Total $ 3,865,840 The Affordable Housing Advisory Board (AHAB) reviewed the applications for the 2020 Affordable Housing Bond Program on August 18, 2020 and scored the applications using the evaluation scorecard approved by the Commissioners earlier this year (see Attachment 3). Based on these scores and discussion of the projects, the County Manager proposes the following funding recommendations: Applicant Funding Request Center for Community Self-Help $ 817,080 EmPOWERment, Inc. $ 700,000 Habitat for Humanity of Orange County $ 817,080 Interchurch Council Housing Corp $ 165,840 Total $ 2,500,000 Commissioner Dorosin asked if the scorecard in attachment 1 could be explained. He said some agencies received 52 points for leveraging, and this is confusing. Erika Brandt said it is a confusing category title, as it involves other criteria as well. She said maximum points from leveraging is 20, but there are other criteria in that category that can allow for the accrual of points, up to 35. Commissioner Dorosin said those are yes or no questions, and there is no difference between affordability percentages. Erika Brandt said the scorecard is a tool, and certain scores were up to the Affordable Housing Advisory Board (AHAB) members. Commissioner Marcoplos asked if there is a formula for how the cost per unit was calculated. Erika Brandt said the scorecard did not include a scoring for the number of units. She said Allison Mahaley is also present from the Affordable Housing Advisory Board. Allison Mahaley said each AHAB member scored the applications on his or her own, and then reached consensus as a board for a score for each application. She said there was lengthy discussion. Commissioner Price said in the first section it said agencies could score a maximum of 20 for leveraging, but the next page showed another possible 35 points. She said this is confusing. 7 Erika Brandt said the total possible points are 32, and some criteria are mutually exclusive. PUBLIC COMMENT: Delores Bailey said she is so thankful for the emergency housing program. She said EmPOWERment owns 58 affordable housing units throughout Orange County, and all are full. She said EmPOWERment is seeking $700,000 for 10 units. She said EmPOWERment has followed the Board's request and has found a project that collaborates with government land, provides more units, and has funding to leverage. She said this is in partnership with the Pine Knoll community, and is named PEACH. She said all units will be affordable. She said the PEACH apartments are necessary, and the funding is critical. Phillip Walker said he is a lifelong resident of Chapel Hill, and would like to continue to live in Chapel Hill. He said it is very difficult to afford housing here. He said he has worked for the University of Nortn Carolina - Chapel Hill for 11 years, and makes $9.50/hour. He said EmPOWERment has been working with him for 5 years, and an apartment in the PEACH apartments would have huge impact on his life, and that of his 14-year-old son. Dan Levine said he works for Center for Community Self-Help, the lead organization coordinating the Homestead Housing Collaborative. He said he has lived in Orange County for a long time, and sees the need for affordable housing in the area. He said the bond funds have been well used thus far, and he hopes the $1.5 million will be awarded. He said the funds will be stewarded well, and the project will provide the most units to those with the lowest income. He said the full $1.5 million is needed to secure other funding, and fulfill the project. He said the Town of Chapel Hill has provided the land, money, as well as staff support. Douglas Call said he volunteers with Habitat for Humanity, and is pleased that Habitat is recommended for funding, but the funding awarded is only 54% of the request made. He said over the past 3 years Habitat has built over 300 homes, and has expanded its services to include the repair of homes over the past 5 years. He said Weavers Grove in Chapel Hill is Habitat's most ambitious project ever, and will accommodate over 100 families in affordable housing, and 136 families in market rate housing that will be selling for less than median price in the area. He said this affords homeownership to families that may not otherwise be able to achieve it. He said the Orange County Bond award will be well leveraged, since it will lower the per unit cost. He asked the BOCC to raise the award amount to the full request of$1.5 million. Danita Mason-Hogans said the PEACH project will have great impact on many families with deep roots in Chapel Hill. She said her great, great Uncle James Nun was born in 1882 and died in 1975. She said her uncle was part of a community in Chapel Hill that has been mistreated for many generations. She said Dolores Bailey's ancestry is also a part of this history. She said Orange County has the largest wealth disparities, and changes must be made to include local people in the conversation. She encouraged the BOCC to change the narrative for those who have needed help for so long. David Bright said he is an EmPOWERment Board member, and expressed thanks to the County for its partnership. He said he sees affordable housing as a way for those who are economically disadvantaged to grow. He said he was also on the Weaver Street Board and heard from employees who struggled to find affordable housing. He said the Pine Knoll community is greatly involved in the PEACH project, and the project will allow those who serve the community to also live in the community. He said 10 units may seem small, but it is not. He said EmPOWERment is financially sound, and is ready for bigger projects. Graham Smokoski said he is with Center for Community Self-Help, and is available for questions. Paris Miller said she is a Board member with EmPOWERment, and voiced her support for the PEACH apartments project. She said EmPOWERment is a small grass roots 8 organization that is committed to serving the African American community in Chapel Hill. She echoed comments made by previous speakers in support of this project. Jess Brandes said she is with CASA, and is here to answer questions. Commissioner Bedford said she had a question about the Interchurch Council Housing Corporation request of$165,840. She said the BOCC received a letter from this corporation stating HUD has waived a requirement for stairwells. She asked if this change impacts the funding in anyway. Erika Brandt said she is not sure if the project can be deferred. She said staff did look into available County rehab funds, but those have been used up. Chair Rich said the affordable housing bond referendum did not include maintenance funding, and asked if there is a reason the Interchurch Council Housing Corporation was even considered. She said this project does not create any new housing, but rather is for maintenance on 40 existing units. Emila Sutton said she did not really know how to answer that question. She said rehab was included in the first round of funding. Allison Mahaley said the Affordable Housing Advisory Board did discuss this issue, and while no new units will be added, 40 units will be lost if they are not maintained. Commissioner McKee referred to the stairwell upgrades, and said maintenance is vital to the life of properties. He said there will be a health and safety hazard if this maintenance is not completed, and putting some money in now could save far more money in the future. Commissioner Dorosin said he read the bond referendum language more broadly, and it does not clearly state funds must be used for new housing only. Chair Rich asked how the Board wanted to proceed with discussing this item. Commissioner Dorosin said if the leveraging line is removed from the scorecard, then the scores are much closer. He said there is value in leveraging, but that line seems to skew the scores. He said he appreciated the projects proposed and appreciated the advisory boards time and effort in evaluating the projects. He proposed changing the dollar amounts recommended reflecting a reduction from Habitat for Humanity, and an increase in support of the Homestead Road project proposed by Center for Community Self-Help. He said Habitat is home ownership, while the others are rentals. He said the need for affordable rentals is greater. He said Habitat is also involved in the Homestead project, and this project is really quite unique. Commissioner McKee said he appreciated Commissioners Dorosin's comments about leveraging. He disagreed with Commissioner Dorosin on moving funds from Habitat for Humanity's home ownership project, as home ownership is one of the best ways to move up the economic ladder. He said the division of funds is equitable and seems sufficient. Commissioner Price asked if staff knows the timeline for building Weavers Grove verses the Homestead Road project. Dan Levine said the hope is to break ground at the end of 2021 on the Homestead Road project. Jennifer Player said the timeline for Weaver's Grove is to clear the site in March of 2021, with vertical construction starting in summer of 2022. Commissioner Greene agreed with Commissioner Dorosin, and said the Homestead Road project is unique and timely. She said home ownership is indeed valuable, but the community has a large need for immediate affordable housing for those who cannot qualify for a mortgage. She said she would like to move some of the Weaver's Grove project to the Homestead Road project. Commissioner Marcoplos said this is a painful decision, but there is a great need for rental housing. He said he wishes there could have been more funds on the bond referendum. He said the Homestead Road project is $13,274/unit; EmPOWERment's PEACH project is $87,500/unit; and Habitat's Weaver's Grove is $15,000/unit. He agreed that the stairwell maintenance project is a good investment of funds for the future life of the properties. He said 9 he would like more funding to go to the Homestead Road project. He said the EmPOWERment per unit cost is quite high, and should be considered carefully. Commissioner McKee asked Delores Bailey if the number of units increased from 8 to 10 units. Delores Bailey said yes. Commissioner McKee said that reduces the cost per unit to $70,000. He said these units are more economical than previous EmPOWERment units. He said EmPOWERment is a completely local effort. Commissioner Bedford referred to the costs per project, and said these reflect the County funding. She said she looked at the total project costs, which removes the leverage component. She said when considering the projects this way, the cost per unit is $185,841 for Homestead Road; $230,000 for EmPOWERment, and $260,000 for Weaver's Grove. She said the Homestead Road project is the lowest cost per unit, and echoed Commissioner Dorosin and Commissioner Greene's comments. She said Homestead Road includes Habitat townhouses, which are for purchase. She said she would fully fund this project for all the aforementioned reasons, as well as the EmPOWERment project, and the stairwell maintenance project. Commissioner Greene asked Allison Mahaley if the AHAB's reasoning for funding 100% of Habitat's request could be identified, as opposed to portions of the other projects. Allison Mahaley said AHAB did not make this recommendation, but rather 100% of EmPOWERment's project; 100% of the stairwell rehab project; and a 50/50 split of the remaining funds between the two other projects. She said AHAB agonized over these applications. She said AHAB funded 100% of EmPOWERment's project due to its alignment with the BOCC's social justice goals, and it being a completely local project. Commissioner Marcoplos said these are County funds, and wants to put as many people as possible under roofs. Chair Rich said a few years ago, former Habitat Director Susan Levy presented a housing community from Virginia to the BOCC that was identical to the Homestead Road project. She said the mixed income housing is valuable, and she thinks the Homestead Road project is important. She said she wishes there was three times the funding available. She said she would like to bring the Habitat project from $817,000 to 500,000 and EmPOWERment project from $700,000 to $500,000, and move the excess funds to the Homestead Road project. She said she would leave the stairwell rehab project in place. Commissioner McKee asked if the impact of removing $317,000 from the Habitat project could be identified. Jennifer Player said the impact would be huge, and 93% is already being leveraged from other sources. She said a reduction in funds would require those funds to be found elsewhere. She said a great deal of private funding is being pursued. She said Habitat is hyper local. Commissioner McKee asked if the impact of removing $200,000 from the EmPOWERment project could be identified. Delores Bailey said removing $200k would be detrimental, as there are no other funding sources available. She said EmPOWERment is small, and cannot compete with larger organizations such as Habitat and Self-Help. Commissioner McKee said he can accept moving funds away from Habitat, but cannot support a request to reduce funding to EmPOWERment. Commissioner Dorosin agreed, and said the Homestead Road and EmPOWERment projects should be fully funded. Commissioner Price said she likes the Homestead Road project, as it brings together so many organizations and provides for great diversity. She said she also wants to support the stairwell repair project and fully support the EmPOWERment project. She said supporting the EmPOWERment project allows the BOCC to show it is serious about social justice. She said she supports Commissioner Dorosin's proposal. 10 Commissioner Greene said EmPOWERment has worked hard to bring projects to the table that are viable. She said this project is in Pine Knolls, which has not received as much attention as other historically black neighborhoods, such as Northside. She said it is so difficult to divide these resources. Commissioner Greene asked Delores Bailey if there is an ideal timeline, and what happens if that timeline gets extended due to lack of funding. Delores Bailey said EmPOWERment does affordable rentals really well, and all units are full. She said if funding is delayed, people will go without housing. She said there are no other variables to fall in place, only funding. RES-2020-067 RESOLUTION AWARDING FUNDS FOR THE 2020 ORANGE COUNTY AFFORDABLE HOUSING BOND PROGRAM BE IT RESOLVED, by the Orange County Board of Commissioners, upon recommendation by the Orange County Affordable Housing Advisory Board, approve the following awards for the 2020 Affordable Housing Bond Program: Center for Community Self-Help Funds will be allocated to the Center for Community Self-Help as a grant for development of 2200 Homestead Road, a mixed-income rental and homeownership development in Chapel Hill with 113 affordable units and four (4) market-rate units. Affordable units will be leased or sold to households earning less than thirty percent (30%) and up to eighty percent (80%) of the area median income. (Requested amount: $1,500,000) $1,500,000 EmPOWERment, Inc. Funds will be allocated to EmPOWERment, Inc. as a grant for development of PEACH Apartments, a rental development with eight (8) units on Johnson Street in Carrboro. Units will be leased to households earning less than thirty percent (30%) and up to sixty percent (60%) of the area median income. (Requested amount: $700,000) $700,000 Habitat for Humanity of Orange County Funds will be allocated to Orange County Habitat for Humanity as a grant for development of Weaver's Grove, a mixed-income, mixed-use homeownership development in Chapel Hill with 100 affordable units and 136 lots to be sold for market-rate development. The 100 affordable homes will be sold to households earning between thirty percent (30%) and eighty percent (80%) of the area median income. (Requested amount: $1,500,000) $134,160 Interchurch Council Housing Corp Funds will be allocated to Interchurch Council Housing Corp as a grant for repair of the stairwell at Chase Park Apartments, an affordable rental property in Chapel Hill with 40 affordable units leased to households earning less than thirty percent (30%) and up to sixty percent (60%) of the area median income. (Requested amount: $165,840) $165,840 This is the 5t" day of November, 2020. Penny Rich, Chair 11 Orange County Board of Commissioners SEAL A motion was made by Commissioner Dorosin, seconded by Commissioner Price to adopt the resolution awarding funds for the 2020 Affordable Housing Bond Program, and authorize the Board Chair to sign the Resolution. Chair Rich called each Commissioner by name (roll call). VOTE: Ayes, 5 (Commissioner Bedford, Commissioner Greene, Commissioner McKee, Commissioner Price, Commissioner Dorosin); Nays, 2 (Chair Rich and Commissioner Marcoplos) MOTION PASSES 5-2 c. Emergency Housing Assistance Program Update and Request for Supplemental Funding The Board received an update on the work of the Housing Department in pandemic response through the Emergency Housing Assistance fund, and considered voting to approve the transfer of$100,000 from the Local Rent Supplement Program to the Emergency Housing Assistance Program to provide additional funding for ongoing eviction prevention activities that are not eligible costs under other programs. Emila Sutton, Director of Housing and Community Development, reviewed the item below: BACKGROUND: In March 2020, at the onset of the public health crisis caused by COVID-19 and seeing the need for increased housing assistance for those impacted, the Orange County Housing Department and staff from the Towns of Carrboro, Chapel Hill, and Hillsborough began discussions on how to combine our existing eviction prevention and housing stabilization efforts to best serve residents. Staff from all jurisdictions agreed that combining existing efforts into one program, with one application process and singular policies, would improve provision of emergency housing assistance throughout the County. The Emergency Housing Assistance program (or "EHA") was created as a result, and Orange County began administering eviction prevention and housing stabilization funds on behalf of the Towns as well as the County (see Attachment 1). At the same time, the Department also began managing Coordinated Entry for the community— providing an efficient and evidence-based method of serving those experiencing a housing crisis. The Department renamed and rebranded Coordinated Entry as the "Housing Helpline" so residents more readily understood how assistance could be requested. Both of these programs saw an exponential increase in demand quickly after the pandemic hit, and both programs scaled up quickly in order to meet the increasing demand (see Attachment 2). One way the program successfully and quickly scaled up to meet the need was by requesting assistance and partnership from local non-profits. Several organizations stepped up to help, to include El Centro Hispano, Refugee Community Partnership, Community Home Trust, EmPOWERment, and the Community Empowerment Fund, as well as other Orange County Departments such as Family Success Alliance (Health Department), Department on Aging, and Department of Social Services (see Attachment 3). 12 These rapid collaborative efforts and community partnerships allowed the program to serve people as they presented for assistance through the Housing Helpline and through the partner referral network—and reaching a diverse range of communities to include non-English-speaking households and families with extremely low incomes (see tables below). Table 1: EHA Funding by Income Bracket of Beneficiary AMI 30% 50% 60% 80% Grand Total Amount $1,242,140 $387,497 $56.757 $1,095 51,687,490 Percentage 73.51% 22.96% 3.36% 0.06% 100.00% Client Count 562 171 29 1 748 Percentage 75.13% 22.66% 3.88% 0.13% 100.00% Table 2: EHA Funding by Race/Ethnicity of Beneficiary Middle Native Grand RacelEthnicity Unidentified Asian Black Latinx Eastern Multiracial American White Total Amount $594,230 $55,420 $394,514 $460,215 $26.453 $5,088 $8,249 $142.317 51,687,496 Percentage 35.21% a28% 23.36% 27.27% 1.57% 0.36% 0.499E 6.43% 100.00% Client Count 290 26 160 209 9 3 3 62 748 Percentage 38.77% 3.48% 21.39% 27.94% 1.20% 0.40% 0.40% 8.29% 100.00% Financing History: EHA was seeded with local Orange County funds for Risk Mitigation and Housing Stabilization activities and Town contributions, and later CARES funding from the Towns and County. Due to the high demand for funds caused by the COVID-19 health crisis, these funds have almost been fully expended. Since the start of the pandemic, $2.1 million has been invested by the County and Towns. As of October 20, about $276,000 remains uncommitted, which staff anticipate will last another two and a half weeks, based on the current rate of expenditure and the queue of more than 100 applications awaiting review. As such, the County sought funds from the State in order to continue the work—first through the HOPE program ($797,133) administered by NCORR and second through an application to the NC Commerce Department for Community Development Block Grant— Coronavirus (CDBG-CV) funds ($900,000). The HOPE program portion of the work began on October 19, 2020 and will end December 31, 2020 per the funding regulations, and the County hopes to hear about the CDBG-CV application for funding by the end of the year. Both of these funding sources are limited to providing only rent and utility arrears and payments. This means that the other housing stabilization activities that had been provided through other EHA funding sources are not eligible under these new programs. These stabilization activities include security and utility deposits, moving costs, and application fees all of which are important for helping residents secure housing at a time when having a stable home is crucial for staying safe and avoiding COVID exposure. Further, flexible EHA funding is needed for those residents who do not qualify for the HOPE program or CDBG-CV funds, i.e. not having required documentation for federal funds and/or landlord not agreeing to lease addendum required by the HOPE program. There is also need for urgent funds for those facing imminent eviction or who are working with the Eviction Diversion Program attorney, for those needing reasonable modifications to their homes due to their disability that is necessary to keep them stable in housing, and for homeowners' facing foreclosure as HOPE does not provide funds for mortgage assistance. The Housing Department has also used flexible EHA funds to increase the utilization of Housing 13 Choice Vouchers. The Department recently sent out more than 100 applications for the Housing Choice Voucher program for residents meeting the homelessness preference in the Orange County Housing Authority's Administrative Plan. While the new Housing Access Coordinator funded by the County and Towns has helped recruit landlords in accepting vouchers, security deposits are needed as well as application fee assistance for these units in order for residents in need of affordable housing to access them — especially those who are the most vulnerable in our community. Since January 2020, 2.5% of EHA funding (about $42,000) has gone to these activities. Based on these numbers and in anticipation of increased need, as families fall out of housing due to lost income and the expiration of CARES funds and eviction protection at the end of 2020, we anticipate that at least $60,000 is needed in order to continue providing security and utility deposits, moving costs, and application fees through June 2021. In order to continue providing flexible EHA rent and utility assistance for those who do not qualify for the supplemental State and Federal funds, we anticipate at least $200,000 additional funding is needed for EHA through June 2021. Research shows that housing assistance, such as that provided through EHA, reduces hardship and increases economic opportunity for low-income families.1 .There is also research showing that preventing eviction can reduce costs to the health care system, lower costs and reduce the burden on shelter and other emergency housing programs, ease the administrative burden on the courts, reduce job loss, reduce negative educational outcomes, and prevent the decline of communities that occurs when people are displaced.2 This combined impact is due to the continuing community-wide effort to prevent evictions and homelessness in Orange County. Additional local funds allows the Housing Department to continue this work to keep people stable in housing and access new affordable housing through the County's existing Emergency Housing Assistance fund. Commissioner Bedford asked if undocumented people would still qualify for these funds. Emila Sutton said yes, and the NC HOPE program also allows the department to serve undocumented folks. She said approximately 20% of those served by EHA so far have been undocumented. A motion was made by Commissioner Price, seconded by Commissioner Bedford to approve the transfer of$100,000 from the Local Rent Supplement Program to the Emergency Housing Assistance program to provide additional funding for ongoing eviction prevention activities. Chair Rich called each Commissioner by name (roll call). VOTE: UNANIMOUS d. Approval of Pandemic Response Payment to Permanent Orange County Employees and Approval of Budget Amendment#3-A(ORD-2020-025) The Board recognized the flexibility and perseverance demonstrated by Orange County employees during the COVID-19 pandemic, considered authorizing a one-time Pandemic Response Payment of$100 per month to permanent County employees who have been on the payroll between March 1, 2020 and November 1, 2020, prorated for permanent part time employees, and approve Budget Amendment#3-A transferring funds from the County's Health Insurance Reserve to a Pandemic Response Payment account to be distributed to departments personnel line items according to the amount of payment required in each department. 14 Brenda Bartholomew, Human Resources Director reviewed the item below: BACKGROUND: On March 10, 2020, Governor Cooper, by Executive Order 116, declared a state of emergency to prevent the spread of COVID-19. On March 27, 2020, Executive Order 121 imposed a statewide Stay at Home Order, which directed people to stay at home except to visit essential businesses, exercise outdoors or help a family members. The Order also banned gatherings of more than 10 people and directed everyone to physically stay at least 6 feet apart from others. More Executive Orders followed in connection with the pandemic, which dramatically impacted the manner in which County services were provided and the expectations for how County employees delivered those services. • Executive Order 135 issued April 23, 2020 extended North Carolina's Stay At Home Order (Executive Order 121) until May 8, 2020. • Executive Order 141 issued on May 20, 2020 lifted the statewide Stay at Home Order and moved to a Safer At Home recommendation. • Executive Order 151 issued on July 16, 2020 extended Executive Order 141's Safer At Home Phase 2 measures until at least Aug. 7, 2020. • Executive Order 155 issued on August 5, 2020 extended Executive Order 141's Safer At Home Phase 2 measures until at least Sept. 11, 2020. • Executive Order 163 issued on September 1, 2020 revised prohibitions and restrictions that moved the state to Safer at Home Phase 2.5 measures. • Executive Order 169 issued on September 30, 2020 revised prohibitions and restrictions that moved the state into Phase 3 measures. During this time, the employees of Orange County have demonstrated creativity, flexibility, and perseverance in the face of uncertainty. The FY2020-21 Budget included a variety of austerity measures to preserve the County's financial position. One of these measures was the elimination of a traditional across the board wage adjustment and the suspension of financial performance awards connected to annual evaluations. Given the adjustments that all employees have had to make as a result of the pandemic, the County Manager is recommending a one-time Pandemic Response Payment of$100 for each month worked from March 1, 2020 through November 1, 2020. Permanent employees who were actively on payroll during this time would receive a one-time payment of$900. Employees hired during the time of March 1, 2020 through November 1, 2020 will receive $100 for each month employed, and active part-time permanent employees will receive a pro-rated payment. The payment would occur in the last pay period in November. The Pandemic Response Payments would be funded through a transfer of reserve funds from the County's health insurance program. This fund currently has a total reserve balance of $3,985,334 as of the end of FY2019-20. As part of the North Carolina Health Insurance Pool, the recommended reserve balance is $981,735 or about 1.2 months of expected claims. As a result, the reserve currently holds reserves in excess of the reserve policy of$3,003,599. Of this amount, $990,000 would be required to fund the Pandemic Response Payments in FY2020-21. 15 Commissioner McKee asked if the traditional wage increase was stalled until July 1, 2020. Brenda Bartholomew said no, the wage increase was stalled until July 1, 2021. Commissioner McKee said austerity measures have been put in place due to COVID, and there are unknowns still ahead. He asked Bonnie Hammersley if this bonus will adversely affect the overall budget. Bonnie Hammersley said staff has been monitoring all elements of the budget, and the Health Insurance Reserve is growing because claims are down. She said claims are likely down due to COVID, as people are not going to the doctor unless absolutely necessary. She said the Health Insurance Reserve fund will fund this one-time payment, and this reserve is partially County funded and partially employee funded. She said the reserve is still in place to handle a catastrophic event, and this one time pay-out will not impact that. Commissioner Price said she is very pleased with this recommendation. Commissioner McKee said he will reluctantly support this recommendation, but noted there are many people across Orange County who did not receive a wage increase, or may have even lost a job. He said he has no doubt about the hard work of County employees. Commissioner Bedford expressed gratitude for all County employees during these stressful times. She agreed there are many families that are suffering. A motion was made by Commissioner Bedford, seconded by Commissioner Price to: • Authorize a one-time Pandemic Response Payment of$100 per month to permanent County employees who have been on the payroll between March 1, 2020 and November 1, 2020, prorated for permanent part time employees, and • Approve Budget Amendment#3-A transferring funds from the County's Health Insurance Reserve to a Pandemic Response Payment account to be distributed to departments' personnel line items according to the amount of payment required in each department. Commissioner Bedford said she would like to exclude herself from the $900 one-time payment, and contribute it to the Department of Social Services (DSS) needs. Chair Rich said this can be done through the Giving Fund. Commissioner McKee said he would also like to forego the payment. Chair Rich said every single employee has worked overtime since the pandemic started, and it was especially intense in the beginning. Chair Rich called each Commissioner by name (roll call). VOTE: UNANIMOUS e. Initiating the Process to Disengage from Cardinal Innovations Healthcare and to Seek Realignment with Alliance Health The Board considered voting to authorize the County Manager to initiate the formal disengagement process from the County's current Local Management Entity-Managed Care Organization, Cardinal Innovations Healthcare, and seek realignment with Alliance Health to administer mental and behavioral health services for Orange County residents. Travis Myren reviewed the item below: 16 BACKGROUND: Local Management Entities— Managed Care Organizations (LME-MCOs) are public managed care organizations that administer behavioral health services for residents in need of mental health, developmental disability, or substance use services. The State of North Carolina is currently served by seven different LME-MCOs divided into regions. Cardinal Innovations Healthcare currently serves Alamance, Cabarrus, Caswell, Chatham, Davidson, Davie, Forsyth, Franklin, Granville, Halifax, Mecklenburg, Orange, Rockingham, Person, Rowan, Stanly, Stokes, Union, Vance and Warren counties. Alliance Health currently serves Cumberland, Durham, Johnston, and Wake counties. North Carolina General Statutes and the North Carolina Administrative Code authorize and prescribe the process through which a County may seek permission to disengage from one LME-MCO and realign with another. The final decision making authority rests with the Secretary of the Department of Health and Human Services. The applicable administrative code is attached as Attachment 1. The first step in initiating disengagement is providing written notice of the County's intent to disengage to the Secretary of Health and Human Services, the Co-Chairs of the Joint Legislative Oversight Committee on Health and Human Services, and the affected counties a minimum of nine months prior to the proposed effective date of disengagement. This abstract would authorize the County Manager to send the disengagement notice letter and begin the formal disengagement process. Once the disengagement notice is sent, the County is required to create a plan for disengagement. This plan must be approved by the Board of Commissioners and must be made available for public comment for a minimum of 60 calendar days. During the comment period, the County is required to solicit comments from consumers, advocates, self- advocates, and State and Local Consumer and Family Advisory Committees. These public comments must be posted for a minimum of 30 calendar days. The Board of Commissioners must also approve a written plan to ensure continuity of services during the transition and a plan which provides for distribution of real property if applicable. In April of 2019, the Board of Commissioners approved a letter to the North Carolina Association of County Commissioners expressing its preference to become part of a Tailored Plan region that included Durham and Wake County. The Tailored Plan letter is attached as Attachment 2. While that action did not initiate the formal disengagement process, the same justifications for realigning with other counties in the Triangle Region are applicable. This prior action was also similar in terms of timing. The County was asked to express its preference for Tailored Plan regions prior to the implementation of Medicaid Transformation. At that time, Medicaid Transformation was scheduled to be implemented in February 2020. Implementation has since been delayed until July 2021. Travis Myren presented the following PowerPoint presentation: Slide #1 ORANGE COUNTY NOR1 H CAROLINA LME-MCO Disengagement and Realignment November 5,2020 Virtual Meeting ■ 17 Slide #2 LME-MCCs in North Carolina • Administer Mental and Behaworal Health Services • Each LME-MCO has Service Area or Catchment 0 ORANGE COL}IJT4` a uTerii l_.v�1l.ine Slide#3 Context and Timing • Other Counties Take Action in October unm and Cahamis Courdies vote an Inbotners Honflh R.lanag rn w Disrrgagahem Caramel lnrowtior Healthcare aM Realign wish Paranenl Mocklnbburg and Forsyth Cwnun Issue Lonn to Cardinal Innovations HaaNly0ra Rapyasing Carrecnra ACaan Plan I7y NnvnmGPr 9.2070 �ti ORPJVGE COUNTY 1 Slide #4 Context and Timing • mediCBid TransbMwtiDn-NOW Tirllellne - 5lenaard Plans Eiloo"Jury 1,=i YxAAnAlae ll.dn:d R.eo.rn..an lwn waer,r BYrrival HrkM lrylraw . c�w.n�.da.enx.�.ca�:..weces,u..e lr.Iwaa w. • LKAK*.C•aFYwla0gipr Arian m Ww C-P.0 - Tailored Plans EIIlGiye Jury 1,2u22 kxFidn MrarrAds xNi 3rrion A4arl Hkrl�n 9ikluiu M Ltilnnfr,Weil l rA Or-�ol e.t�P-abinoa«T—male Buie�y�y • Cs+*.+r. ainMF�y1p11 [:a..s..i..1..r...glFlEfrCM 6.Tdykp pun Wa'wwaFn ORANGE COUNTY Nolki'H CAIWI JNA Slide #5 Disengagement Process by Statute • DisengagememAuthorized by G.S.122C-115 - subject to the Apprwel of the sedelary of Health and Hunan seruius and Fire Brood Guidelines. 1, FrarbW or xervi Zk rxn Jkrulnrd Iry eie rlirrng:,.morn 2. Tlr Dt aa;c cnlycuW*incompli_—plan—in'W.anarca aTnndrty ll m is in eomplunce"h populalwn requi—ii"pro in G.S.1=. 115[e)of Ilex-rr_1n�ir 3. The liming of the dace.,.,niCl avM—J g caplalioa rases. k, Ada�rgtsa rx lrirvnlrxl nr lFie:rlkr:InlcwN�,nre DapprM�nld N�ylh prq M/illn$arri<t�,aixl air fr nenrl Rawrnliy 5. Pro—tin for nwton or any real pr."w"Wr a n the catchnmt area of lne ,1ma sinhniay GRANGE COUNTY 5 RT1RT1iUA011NA 18 Slide #6 Process to Disengage •.«...,,d d arw rw a c+w.�oar w onwwrwr aw,t awnwvu�re<oa.w weaa. aw..�a soa;aw wyc.amrwavrw.oar •eocc+vaae aarsyavnwe cur .eacc rmm.e dcernwrnxm�e� •exc+rm�a+anrw�o�d ma a+�r.v r came,n u.�.ni s�ur Slide #7 Considerations for Approval R1165 Dullin6lnfprmatipn fur SCrratAry Of ON N$W CAnSitlar 1. h'Oa/�1 xd RbY[Carrtevtit4em Con�inen,Adnfcaee,3N WM[aes,ea[. 7 Carugti Ox«p prrne.a Pia 3. Ownq..Wroxnyd^ K«Aan 1- (kndkfxe mM1 AhixnNaavrc Cade PlO[HS S Gr]Wxm.agr+i9 NCO5«�.n mal+«w�n w�R) nen�nn n amre t�en.�z«r� f F.w�aga vyeryaDaey+g.d 1d00[�'�� I R CenyWi[e xAlPKwlm Renurtnasn e6o0.om B 9bM,ddx Breae'f IM2N[.ve 9ryen 10 Now aG1�w-w 6.-a v!k—1 rftw 11.owed.ai R�weeaad ReeYgxnxarN, m6caDreLM.3emee DNrieM1.ene Y?eae PenenCmn�ed Lyae • Se0retery Shall issue Decision within 90 Calendar Days of Receiving Request _ ORANGE CIXIMI` a N[1¢1lacwxgUNR Slide #8 Discussion and questions r G1t4fJGE COi.N t Y Commissioner Dorosin asked if the total length of time this process would take could be identified. Travis Myren said a minimum of nine months, as long as no other circumstances are at play. Commissioner Greene asked if the County moved to enter a contract with Alliance, would it still have the ability to disengage within the four years. Travis Myren said the clear message to County administration is that once the County engages in the four-year relationship, disengagement will not occur. 19 Commissioner Price asked if staff had spoken to Alliance about accepting the Orange County service area, and if the services are comparable. She asked if the Alliance Board would vote prior to the Secretary making her decision. Travis Myren said staff did speak with the CEO, but the decision would be up to the Alliance Board. He said the CEO was helpful. Commissioner Price asked if there is a timeline on when the County would know if the Alliance Board has accepted the change. Travis Myren said the Alliance Board would have to agree prior to the Secretary making her decision, and Alliance would vote within the next nine months. Commissioner McKee asked if the start date for the four-year relationship would be effective for July 1, 2022. Travis Myren said that is correct. Commissioner McKee asked if, given that date, the BOCC could delay its decision to September 2021 instead of deciding now. Travis Myren said there is some flexibility, but there is a lot of preliminary work that needs to go into effect prior to those tailored plans going into effect. He said those receiving services need time to transfer to new providers, etc. Commissioner McKee asked if the number of disengagements that have occurred in the past few years is known. Travis Myren said he knew of one. Commissioner McKee said the disengagement is not a given. Travis Myren said no, it is not. PUBLIC COMMENT: Rosemary Waldorf, Club Nova Board, said the timing of this action could not be worse. She said Club Nova has spent seven years raising money for a new clubhouse, and has fully met all negotiations to receive the $500,000 pledge agreement from Cardinal Innovations (CI). She said the funds have been raised within the required timeline, and Club Nova has secured a bridge loan. She said it has been very difficult to raise funds, and she is unsure what Cardinal will do if the County disengages. She said this could be severely detrimental to the success of the project. Karen Dunn, Club Nova Executive Director, said Club Nova was taken by surprise that the possibility of disengagement is back on the table. She said losing the $500,000 pledge from Cl would be highly detrimental. She said if the County chooses to disengage from Cl, it should find the funds to cover the loan loss. She said the State already required the LME MCO to remain the same through 2025, and she does not see that disengagement will be allowed. She highlighted some of the negative impacts of using Alliance for services, including lowered reimbursement rates, greater administrative demands, etc. Alex Harrison said Club Nova saved his life, and his mental illness is self-destructive. He said the plan to cut $500,000 gives him great anxiety. He said he does not know what he would do without Club Nova. Tanya Pace said the current pandemic has placed a greater burden on serving those with mental health needs, and the services of Club Nova are vital. She said this potential disengagement will negatively impact the building construction, and the Club itself. She said the Club desperately needs more space to serve more members safely. Matthew Cox said he is member of Club Nova, and a present Board member. He said Club Nova is a life saving community that reduces isolation for those suffering with persistent mental illness. He said these services save the County and community a great deal of money, and Club Nova partners with local law enforcement to create positive and productive relationships. He asked the BOCC to not disengage from Cl, but if it does, to cover the loss of the $500,000. 20 Gary Weaver echoed comments of previous speakers about the risk of losing funding if the County disengages from Cl. He said the current Club Nova building is too small and not handicap accessible. He said the services are essential to him, and many others. Charlene Lee said she has been a member of Club Nova for 14 years, and it has been such a gift to her. She echoed previous comments, and said the work of fundraising has been done by many of the Club Nova members, including the first fruits of her own paycheck. She said putting this new building in jeopardy breaks her heart. She asked if the BOCC would please postpone this vote. Commissioner Greene asked if there is a representative present from Cardinal Innovations. Trey Sutton, Cardinal Innovations, said he appreciates the partnership with Orange County. He said over the past couple of months there have been several gaps in service, and common themes have emerged. He said some changes have already been made including additional providers and reduced administrative costs. He said Cl has spent the last week and a half working with Department of Health and Human Services (DHHS), and has created an effective plan to offer a better experience with Cl. He said he does not recommend instability at this time, and suggested the BOCC allow the plan a chance to succeed. He said it is important for County partners and funders to hold CI accountable. He said now is not the time for a major change. He said CI has provided COVID relief grants, as well as other funds to help with stabilization in provision of services. He said Cl is proud to partner with Club Nova, and disengagement is a parameter of this agreement. Commissioner Greene clarified that the County remaining with CI is a part of the Club Nova grant agreement. Travis Sutton said yes it is, and he would be happy to readdress this issue with the Cl Board. Commissioner Greene referred to Cl board meeting notes, which mentioned an extension of the agreement until December 30, 2020. She said Club Nova will meet this deadline, and is relying on this promise for the creation of the building. She said it would be wrong for CI to withdraw its $500,000 regardless of what Orange County does. Travis Sutton said he would be willing to readdress this issue with the Cl Board. Commissioner Greene said the BOCC is considering beginning disengagement through a public process, which requires the BOCC to go through many steps. She said the statutory process is to come together to discuss next steps. She said it is unclear of the pros and cons of CI and Alliance, and she would like to see a true public conversation to hear from all stakeholders that would be impacted by a disengagement decision. She said she does not want to proceed on this vote tonight. Commissioner McKee asked if Cl can give any assurances to the residents, clients, and Board members that things will change with CI if the County remains with them. He said systemic problems have existed for years, and he wants to know what will change. He said, from his opinion, the corporate mentality trumps the client need at Cl. Trey Sutton said Cardinal Innovations does not have a corporate mentality, and members are the number one priority. He said CI is putting a concrete action plan in place with dates and measurable outcomes. He said services are being reviewed to see which can be auto authorized, and new providers have been added to the network. He said the foster care population is a friction point, and Cl has committed $1 million to the County over the next two years to make investments into foster care. He said Cl is co-locating with DSS to allow for faster and more efficient service. Commissioner McKee said he appreciates these changes. He asked if there is a date when the BOCC, clients and the public can expect to see this action plan. Travis Sutton said next week, after discussions with Mecklenburg and Forsyth counties. 21 Commissioner Price said a public hearing has not been conducted and she is hesitant to jump into a new agreement not knowing if the grass is greener on the other side. She said she has no idea of what Alliance offers and if it will benefit the residents of Orange County. Commissioner McKee said he expects this conversation tonight to have no impact on the $500,000 going to Club Nova. Commissioner Price agreed that there has not been a full public hearing, and she would also like more details about Alliance and how it would be an improvement over Cl. She said she has received few complaints about Cl over the years, and would like to know what makes Alliance uniquely better. She asked if staff could research these details. She said if Cl fails to pay the $500,000 to Club Nova, the County must find a way to cover the funds. Commissioner Bedford said she wants to make sure the BOCC understands the timeline, and the vote tonight is only an intent to disengage, and does not necessarily determine the final decision. Commissioner Bedford said she has a daughter with dual diagnoses, who receives services through Cl. She said she has a personal interest and experience with Cl. She said her entire pubic life is as a result of her daughter. She said her daughter requires a lot of care, but noted she does not have an axe to grind with Cl. She said she has been an advocate for these areas for many years, and is the BOCC representative on several boards related to these issues. She said she contributes financially to Club Nova, and greatly supports its mission. She said she also declines the $50 from Cl for mileage, etc. Commissioner Bedford said she asked Cl for several records, but was declined. She said she has tried to follow Cl board meeting conversations, but it is very difficult. She said Cl does not try to engage the public, and does not post its minutes. Commissioner Bedford said she checked Cardinal Innovations financials in October and the $500,000 was present. She said she greatly supports this, and it is horrified that all involved with Club Nova expects Cl to withdraw the funds if the County disengages from Cl. She said this is not the type of organization with which the County should be aligned. She said better services are needed for Orange County residents. She said she has done some research on Alliance, whose minutes are posted publicly. She said Alliance plans to open a Children's Crisis Center in June 2021, and is ahead in many other ways. She highlighted several statistics showing the differences between Alliance and Cl, particularly ways that Cl has denied services in larger numbers than Alliance and complaints made about the MCO. She said these statistics show that Alliance is providing better services. Commissioner Bedford said she does not want to give credence to the fear mongering about what will happen to clients with switching providers, as she does not believe it to be true. She said Cl does not allow a BOCC member to have a voice on its board, whereas Alliance does. She said Cl has failed to provide any clear data, and to involve county stakeholders in its governance. Commissioner Bedford said the timing of this process would allow the BOCC to do it properly, and to the best interest of Orange County residents. She said many local providers already have contracts with Alliance, and the transition will not be as difficult as some fear. She said there is power in the collective voice, and Orange County is not alone in raising this alarm. She said she expects the State to listen more carefully now, and she said CI's proposed action plan is too little, too late. She said it is time to start this process, and research an alternate option, as nothing can be worse than the current situation. Commissioner Dorosin said Commissioner Bedford's research and commitment to this topic is much appreciated. He said he has never received positive feedback regarding Cardinal Innovations, and there is a serious lack of accountability. He said the BOCC has been mulling this conversation for months, and the only reason offered to stay with Cl is to insure that Club Nova receives $500,000. He said this is close to extortion, and the County needs to find a way to secure those funds, if necessary. He said when he served as the BOCC liaison with Cl, he 22 was asked to sign a document that required him to put CI over his role as a Commissioner. He said he will vote to start the process of exploring disengagement, and perhaps CI will make real changes this time. He said it is time for action. Chair Rich agreed with Commissioners Dorosin and Bedford. She said the BOCC is fully behind Club Nova, and wants to see the new building come to fruition. She said she feels Cl never intended to give Club Nova the money, and the members of Club Nova have put extreme effort into fund raising. She said Cl agreed to give the money, and Club Nova has met every requirement made of them by Cl, thus CI must make good on giving the $500,000. She said Orange County has been a CI client for many years, and CI has benefitted from County funding, and needs to keep its pledge to Club Nova, regardless of what the County decides to do. She said Commissioner Bedford has laid out the details clearly, and this will be a long process if the County remains partners with Cl. She said it is possible that Cl will make great strides and changes, and the disengagement may not be necessary. She said these concerns have been discussed in the BOCC for 8 years, and all she ever hears from residents are complaints and concerns. She said these are difficult situations and families are fragile and need help, not roadblocks. She said she will support Commissioner Bedford's recommendation. Commissioner McKee said he will vote to initiate the disengagement process, and will observe how CI responds. Commissioner Greene said this has been a good discussion. She said there are serious concerns among the community, and she will not support the motion to initiate the disengagement process. She says the statute reads to her as this being a vote to disengage, not one to consider disengagement. Commissioner Marcoplos agreed with Commissioner Greene, and said he will vote no to initiating this disengagement process. Commissioner Price said she needs more information before making a decision on disengagement. Chair Rich said there has been a great deal of dialogue and information received on this topic, and, while it is complicated, she thinks staff has laid out a good and timely plan. Commissioner Bedford said in February 2019 a letter was sent from Deputy Secretary Dave Richards, which said the MCOs were not to offer an inducement to change or maintain affiliation. She said Cl has completely violated this with the $500,000 to Club Nova. A motion was made by Commissioner Dorosin, seconded by Commissioner Bedford to authorize the County Manager to initiate the formal disengagement process from the County's current Local Management Entity-Managed Care Organization, Cardinal Innovations Healthcare, and to seek realignment with Alliance Health to administer mental behavioral services for Orange County residents. Trey Sutton said CI posts current meeting minutes online, and meetings have never been moved. He said CI has been completely flexible with Club Nova, and has never moved the goal post. He said much of Commissioner Bedford's comments are inaccurate, and apologized that Commissioner Dorosin was asked to sign something with which he felt uncomfortable. He said this practice was before his tenure at Cl. He said this is a serious decision, and asked if the BOCC would slow down. Commissioners Price said her request for more information is related to Alliance, as opposed to complaints about Cl. She said there is no one on the Cl board because no one from Orange County applied. Commissioner Bedford said CI asked her to sign a conflict of interest statement in 2018, which is during Trey Sutton's tenure. Commissioner Greene asked Commissioner Bedford to restate her comments about the February 2019 letter, and prohibition on inducements. 23 Commissioner Bedford said counties were notified that they could send an alignment preference to the NCACC, and there were guidelines from the Deputy Secretary that said there could be no inducement to change or maintain affiliation with MCOs. Commissioner Greene asked if Trey Sutton could respond, as this $500,000 sounds like an inducement. Trey Sutton said he was happy to speak with Cardinal Innovations Board. He said this was a parameter of the board's decision. Commissioner Greene said Trey Sutton has said he will honor the pledge, but that is likely not within his authority. Trey Sutton said it is not, and he will have to talk to his board. Commissioner Greene said this is why she would like to notice a public hearing within the next 30 days, and hear from the public. Chair Rich called each Commissioner by name (roll call). VOTE: Ayes, 4 (Commissioner Bedford, Commissioner Dorosin, Commissioner McKee, and Chair Rich); Nayes, 3 (Commissioner Greene, Commissioner Marcoplos, and Commissioner Price) MOTION PASSES 4-3 7. Reports a. Interim Alternative Implementation Approach (IAIA) — Upper Neuse River Basin Association (Falls Lake Rules) The Board received information on joining the Upper Neuse River Basin Associations (UNRBA's) planned and coordinate multi-jurisdictional implementation approach to implementing Stage 1 of the Falls Lake Watershed Rules, promulgated by the N.C. Division of Water Resources and consider voting to authorize Commissioner Greene to indicate Orange County's intent to participate in the I.A.I.A. at the November 18, 2020 UNRBA Board meeting, with formal approval and action to be forthcoming in 2021. David Stancil, Director of the Department of Environment, Agriculture, Parks and Recreation (DEAPR), reviewed the item below: BACKGROUND: Orange County was a founding member of the UNRBA, which was created in the 1990's to coordinate mandatory watershed protection efforts among the jurisdictions of the Falls Lake watershed. Falls Lake (henceforth, "the Lake"), located in Durham and Wake counties, serves as the primary water supply source for Raleigh and many Wake County municipalities. Most of central, eastern and northeastern Orange County is located within the Falls Lake watershed (please see Attachments 2 and 3). As the Falls Lake Nutrient Management Strategy (henceforth, "the Rules") was adopted in 2011 to address nutrient loading in the Lake (primarily nitrogen and phosphorus), the UNRBA began to work as a coordinating entity among the jurisdictions to address this effort and to pursue a reexamination of the Rules. Implementation of the Rules, which would occur in two stages, has been estimated to cost the combined watershed jurisdictions over $1.5 billion in total to address. In addition, evaluation of the Rules by water quality consultants has determined that the proposed reductions as originally adopted are not technically feasible and that a new method is needed. (Prior estimates of Orange County's likely costs to address the Rules, if it acted on its own, have ranged as high as $46 million over a 10-year period.) 24 As a result, the UNRBA jurisdictions collectively worked to encourage a re-examination of the Rules, with an alternative method of addressing nutrient reductions for the Lake. Rather than trying to implement jurisdictional load reductions on their own - at great cost and questionable results -the UNRBA and its member local governments have spent the last few years working with consultants and in coordination with the NC Division of Water Resources to find a preferred and "doable" alternative approach to meeting the nutrient reduction goals. Note: Considerable additional detail and information about the Falls Rules, UNRBA findings, types of reduction measures, and the "Path Forward"to identifying an alternative approach, may be found on the UNRBA website at www.UNRBA.orq. To this end, since 2018 the UNRBA has been developing an alternative option for achieving compliance with Stage I existing development nutrient load reductions that would be required by the Rules. This alternative approach would promote a commitment to additional actions directed at reducing nutrient loading impacts from existing development, using both existing and new and innovative measures, to improve the water conditions in the Lake. Titled the "Interim Alternative Implementation Approach" or IAIA, this program is considered interim because it would apply only during the period between the time this alternative approach is initiated and when the Rules are readopted (expected to occur in 2025 or later). However, it is important to note that it is anticipated that the experience and use of this approach may very well inform and serve as a model for the future readopted Rules to be implemented beyond 2025. A summary of this document (in draft form) may be found as Attachment 1. The IAIA is based on voluntary participation of UNRBA members in the Program, and will allow participating jurisdictions to achieve compliance with the Stage I requirements. Choosing not to participate in the IAIA would result in a jurisdiction having to comply on their own by developing a Stage I local program consistent with the Rules and the Model Program as written. Phase I compliance without the IAIA would require installation of nutrient-removing measures in direct relation to Orange County's prior nutrient loading. In other words, the County would need to install enough nutrient-reducing ponds or similar SCMs to compensate for the amount of Nitrogen and Phosphorus added to Falls Lake from Orange County between 2006 and 2012. Participating in the IAIA will allow a jurisdiction, in the interim period, to achieve full Stage I existing development compliance. The IAIA also allows for credit for land conservation. There is currently no credit for land conservation, of which Orange County has achieved considerable success, except through the IAIA (until such time as the rules may be revised to include this measure). Under a local-only program outside of the IAIA, the nutrient reduction would need to be accomplished with traditional Stormwater Control Measures (SCMs - ponds, permeable pavement, green roofs, etc.) or other structural controls. As noted, the NC Division of Water Quality has been advising on the IAIA and has indicated support for this alternative approach to date. At this time, the UNRBA has completed work on the IAIA and is asking all member jurisdictions to tentatively commit to participating in this effort beginning in FY 2021-22, before authorizing staff and consultants to complete the actions that would be needed to formally implement the program. Staff from DEAPR, Planning and the County Attorney's office have been involved in the development of the IAIA from the outset, and recommend participation in the program as a more cost-effective, collaborative and technically-efficient way to address the nutrient loading issues that will be needed for Falls Lake. Commissioner Greene serves as the County's member on the UNRBA Board of Directors, with 25 Commissioner Bedford as alternate. At the November 18 UNRBA Board meeting, each delegate will be asked to participate in an initial vote to indicate intent to participate in the program beginning in FY 2021-22. (Formal approval and action would come in 2021). FINANCIAL IMPACT: The IAIA program is based on the organization's cost-share basis, which reflects a combination of water usage from the Lake and the amount of watershed area in the jurisdiction. The annual commitment for funding participation in the IAIA for Orange County is $161,943 per year, anticipated to continue through FY 2024-25. This is based on the participation of 12 jurisdictions that have indicated to date an interest in participating at the staff level. This contrasts to the projected cost of Orange County's requirement to develop its own individual program for Rules implementation, expected to be in the millions of dollars each year, depending on the actual jurisdictional loading rate. Phase I compliance without the IAIA would require installation of nutrient removing measures in direct relation to Orange County's prior nutrient loading. In other words, the County would need to install enough nutrient-reducing ponds or similar SCMs to compensate for the amount of Nitrogen and Phosphorus added to the Lake from Orange County between 2006 and 2012. Some estimates have projected the total cost of this individual program to be approximately $46 million for Orange County. Based on the development of the IAIA over the last few years, the current Capital Investment Plan or CIP (and the proposed FY 2020-25 CIP) includes a Falls Lake Nutrient Management Strategy item that allocates $175,000 per year during the years of the IAIA implementation. This funding would begin in FY 2021-22. In addition, some of the work and funds of the Lands Legacy program in the Falls Lake watershed will also count toward the funding commitment. This model approach, if successful, may be used in the future phase of the Rules, resulting in considerable cost savings to the County and all jurisdictions. David Stancil made the following PowerPoint presentation: Slide #1 ,,, MKbg M"" ORANGE COUNTY NORTH CAROLINA Interim Alternative Implementation Approach Upper Neuse River Basin Association November 5,Z020 Slide #2 What is the Upper Neuse River Basin Association (UNRBA)? Ora nga County was a N Founding member of the UNRBA,created in the 1996's to coordinate mandatory watershed protection �. efforts among the ®`L� Jurisdictions of the i`. Falls Lake watershed. 26 Slide #3 watersheds i A closer took... -- }--. A W ..` OKANa COUNTY Slide #4 What is the Interim Alternative Implementation Approach (IAIA)? r Since 2019,UNR BA explorl ng alternative way to achieve compll ance with Stage I Existing Development nutrient load reductions required by Falls Lake Nutrient Management Strategy Intedm as It would apply only during the period between the time initiated and when the rails Lake Rules are readopted{expected In 2025 or later}.But could be a model for future rules approach Voluntary particIpatlonlfundIng of UN RBA members-sclentiflcally- based,technoiog l cal ly supporta ble,and economically viable approach that will be more reasonable than that required under the current rules.Other partners appear to support. _ GRANGE CGLYY Slide #5 What are the goals of the JAIA? Continue to Improve water quality in Falls Lake and watershed untlI re-examination of Stage II completed 8 new strategy adopted Engage each Jurisdiction in a collaborative,watershed-focused approach to nutrient reduction through variety,of measures Provide flexibility to Jurisdictions In cost-effectiveness,types of p� l olec ,.where to Implement projects,and who to partner with S I i Ue 7T6 a What will it cost Orange County? Table 1. Local Govemmenr Financial Commitment Fiscal Year NT" Levels far Members that Chsmse to P—dt ipafe in the Stage I EO JAIA iewnefiulner $23,393 iewner Hlllsbemu $34,221 ri[ v}trrrdmoor 516926 Oran eLaun $161,943 CSt a}Durh�m $337,50 Person[aunt $114,394 porh�m Caunly $133.3w Ptyol R0144h $405A81 raolJln Cauot7 $19A58 wak.r—ty s8&%8 fjr�nyille CauMV $100.453 iarynolwokar9ran $t3,692 ORWJGE COUNTY 27 Slide #7 What if Orange County chooses not to participate in the IAIA? r County would have to comply on its own by developing a Stage I local program consistent with the current Falls Lake Nutrient Management Strategy and the Model Program as written sss Stage I compliance on its own would mqul re installation of nutrient-removing measu rag in direct relatlon to Orange Ccunty's prior nutrient loading.Costs could reach into the millions of S sss . In other words,the County would need to Install enough stormwater control measures{SCM's)to compensate for the amount of Nitrogen and Phosphorus added to Falls Lake from Orange County between 2006 and 2012.Costly,no partnerships :.1 Slide #8 Tonight's Decision: To authorize the Board's representative on the UNRBA Board of Directors to indicate intent to participate in the IAIA-a planned and coordinated multi jurisdictional implementation approach to implementing Stage I of the Falls Lake Watershed Rules. 5r— CRANCf COUNW nnarkicartaL Commissioner Greene said this was a thorough presentation, and underscored that this decision to join this coalition is only voluntary to the extent that not joining would cost the County millions of dollars in going it alone. She said this path is an incredibly creative and sensible way to maintain the water quality of Falls Lake. Forest Westall, UNRBA Executive Director, said he has been involved in this process for 44 years, and thanked the Commissioners for their service. He said the NGOs and environmental community has worked on this project, and all are supportive. He said this is a model for dealing with existing development, and the commitment is for 5 years to maintain the water quality. He said the Lake is in good shape, and all want to keep it that way. He said this vote is intent to participate, as final details are worked out. He said if Orange County is not a part of the IAIA, it will have to submit its own plan. He said the implementation will begin in July 1, 2021. He said this is a joint effort by all involved. Commissioner Dorosin referred to page 8, and said there is a reference to Orange County going out alone, and the compensatory costs would range from $49,000 to $46 million. He said this is a useless statistic, and should be more accurate. David Stancil said the exact loading rate is really unknown, and it is more likely to be on the upper end of the range. He said he understands Commissioner Dorosin's comment. A motion was made by Commissioner Greene, seconded by Commissioner Price to authorize Commissioner Greene to indicate Orange County's intent to participate in the IAIA at 28 the November 18, 2020 UNRBA Board meeting, with formal approval and action to be forthcoming in 2021. Chair Rich called each Commissioner by name (roll call). VOTE: UNANIMOUS 8. Consent Agenda • Removal of Any Items from Consent Agenda • Discussion and Approval of the Items Removed from the Consent Agenda Commissioner Dorosin referred to item 8-g, and asked if there is a reason for this closed session to be added before a meeting, as opposed to the typical practice of afterwards. Chair Rich said this is a meeting to discuss applications for the Clerk position, and staff thought the BOCC may be more fresh at the beginning of the evening. Commissioner Dorosin asked if this will take 90 minutes, and could the Commissioners come into the meeting with their top 5 candidates to expedite the process. Chair Rich said yes, this was already staff's suggestion. She said this item is on the consent agenda, as the meeting must be added to the BOCC calendar. Greg Wilder said no action is needed if the BOCC does the meeting at the end of the already scheduled work session. He said action is only needed if the BOCC wants to add it prior to the work session. Commissioner Bedford asked if the work session agenda is full. She said she is flexible. Bonnie Hammersley reviewed the agenda items for the work session. Commissioner Greene said she would defer to Commissioner Dorosin's request. Commissioner Marcoplos suggested starting the work session at 6, and having he closed session afterwards. Commissioner McKee said he would prefer to meet afterwards. Commissioner Price said she would prefer to start earlier. Commissioner Greene said this will be a work session, and not full of complex decisions. Chair Rich asked if the BOCC can start the work session at 6:00 p.m. Commissioners Greene and Dorosin said they would prefer to start at the normal time of 7:00 p.m. Commissioner McKee said he cannot imagine the first run through of candidates will take 90 minutes. Commissioner Marcoplos said to leave the work session at 7:00 p.m. A motion was made by Commissioner Dorosin, seconded by Commissioner Marcoplos to remove item 8-g from the consent agenda. Chair Rich called each Commissioner by name (roll call). VOTE: UNANMIOUS • Approval of Remaining Consent Agenda A motion was made by Commissioner McKee, seconded by Commissioner Dorosin to approve the consent agenda. 29 Chair Rich called each Commissioner by name (roll call). VOTE: UNANMIOUS a. Minutes The Board approved the draft minutes from September 24, October 6, and October 8, 2020 as submitted by the Interim 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 eight (8) taxpayers with a total of nine (9) bills that will result in a reduction of revenue in accordance with NCGS. (RES-2020-068) c. Property Tax Releases/Refunds The Board adopted a resolution, which is incorporated by reference, to release property tax values for twelve (12) taxpayers with a total of thirty-three (33) bills that will result in a reduction of revenue in accordance with North Carolina General Statute 105-381. (RES-2020-069) d. Applications for Property Tax Exemption/Exclusion The Board adopted a resolution, which is incorporated by reference, to approve tax exemptions/exclusions from ad valorem taxation for thirteen (13) bills for the 2020 tax year. (RES-2020-070 e. Appointment of County Review Officer The Board approved a resolution appointing Rebecca Lee to be the Review Officer for Orange County, and removed two (2) review officers that are no longer employed by the County. (RES- 2020-071) f. Fiscal Year 2020-21 Budget Amendment #3 The Board voted to approve budget, grant, and capital project ordinance amendments for fiscal year 2020-21. (ORD-2020-026) g. Change in BOCC Meeting Schedule for 2020 (added) The Board voted to add a virtual Board meeting on November 12, 2020 at 5:30 pm for the purpose of convening a Closed Session to discuss personnel and other matters. This additional meeting precedes a Board work session that was previously scheduled and is already included on the 2020 Board Meeting Calendar. 9. County Manager's Report NONE 10. County Attorney's Report NONE 11. * Appointments NONE 12. Information Items • October 20, 2020 BOCC Meeting Follow-up Actions List • Tax Collector's Report— Numerical Analysis • Tax Collector's Report— Measure of Enforced Collections • Tax Assessor's Report— Releases/Refunds under$100 30 13. Closed Session NONE 14. Adjournment A motion was made by Commissioner McKee, seconded by Commissioner Bedford to adjourn the meeting. Chair Rich called each Commissioner by name (roll call). VOTE: UNANMIOUS The meeting was adjourned at 11:21 p.m. Penny Rich, Chair Allen Coleman Assistant Deputy Clerk II Submitted for approval by Gregory A. Wilder, Interim Clerk to the Board