HomeMy WebLinkAboutMinutes 03-01-2022 Business Meeting 1
APPROVED 415/22
MINUTES
ORANGE COUNTY
BOARD OF COMMISSIONERS
BUSINESS MEETING
March 1, 2022
7:00 p.m.
The Orange County Board of Commissioners met for a Business Meeting on Tuesday, March
1, 2022 at 7:00 p.m. at the Whitted Human Services Center in Hillsborough, NC.
COUNTY COMMISSIONERS PRESENT: Chair Renee Price, Vice Chair Jamezetta Bedford,
and Commissioners Amy Fowler, Jean Hamilton, Sally Greene, Earl McKee, and Anna
Richards
COUNTY COMMISSIONERS ABSENT: None
COUNTY ATTORNEYS PRESENT: John Roberts
COUNTY STAFF PRESENT: County Manager Bonnie Hammersley, Deputy County Manager
Travis Myren, and Clerk to the Board Laura Jensen. (All other staff members will be identified
appropriately below)
Chair Price called the meeting to order at 7:00 p.m.
Chair Price welcomed everyone to the first in-person business meeting held by the
county in two years due to the pandemic. She also noted that it is Women's History Month and
it is the first time that six women have served on the Board of Commissioners.
Chair Price announced that the Emergency Management partners met this morning, and
then immediately leaders met with the Orange County Health Director. She said that some of
the mask mandates will be modified on March 7th at 5:00 pm. She said that a press release will
go out tomorrow morning detailing all of the modifications. She said that they will recommend,
rather than mandate masks. She said that masking will still be mandated in public transit,
medical facilities, and congregate living spaces. She said that the press release will specify the
measurements used going forward and that they will reserve right to return to mandate.
1. Additions or Changes to the Agenda
Chair Price dispensed with reading the public charge.
2. Public Comments (Limited to One Hour)
a. Matters not on the Printed Agenda
Jean Ranc said she wrote a letter to the commissioners on February 19th and is now
glad to hear that there will be changes to the mandate. She said she is a retired psychologist
from the UNC Department of Psychiatry, and also a background in medicine. She said she was
an Orange County resident since 1982 but moved to Chatham County during the past year.
She said she looks forward to reading the press release that will go out tomorrow regarding
changes to the mandates. She said she is not affiliated with any political party, and scientific
research has shown that paper, plastic, and cloth masks don't protect anyone from respiratory
diseases, including COVID.
b. Matters on the Printed Agenda
(These matters will be considered when the Board addresses that item on the agenda below.)
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3. Announcements, Petitions and Comments by Board Members
Commissioner McKee said he requested the Board go back to meeting in public
several months ago and expressed thanks to the Board for this return tonight. He said he
appreciates the decision made today to revise the mask mandates and he believes this is the
right step. He said he intended to ask for an addition to the agenda this evening for a public
discussion on when and how to end the mask mandate but that was circumvented by the
decision today.
Commissioner Richards said today is the start of Women's History Month and
seconded Chair Price's comments regarding the Board of Commissioners having six women
members for the first time in its history. She said she looks forward to reading the press release
tomorrow on the changes to the mandate and expressed thanks to Chair Price and other local
leaders for moving the county forward.
Commissioner Bedford had no comments.
Commissioner Hamilton thanked members of the public who shared their views on the
mask mandate with the Board. She said the Board received emails encouraging the removal of
the mask mandate, as well as maintaining protections. She said that no matter what
perspective was shared, it was clear how difficult life has been for everyone during the
pandemic. She said that the frustrations of the guidelines not being communicated clearly has
added to everyone's suffering. She said she serves on a subcommittee of the Board of Health
that reviewed the current CDC guidelines to assess the relevance for the community. She said
that the subcommittee determined the guidelines were useful for determining when to end local
mask mandates. She explained that local data was also reviewed, which showed that Orange
County is moving in the right direction, and that local mandates would likely be lifted within a
week. She said that this is consistent with the decision made today. She noted that COVID-19
is still circulating in the community, and many people will continue to wear masks out of
necessity. She encouraged respect for those who continue to wear masks. She noted the
importance of the number of hospitalizations being used as a metric to determine when to lift
the mask mandate. She explained that if hospitals are filled with COVID patients or there are
staffing shortages, it makes it harder for patients with other issues to be served. She said that
she thinks it is important to follow guidelines. She said it is unknown if there will be more
variants. She said she will advocate for a more transparent approach to making the decisions.
She said the decision-making power should be expanded beyond the chairs and the mayors
and should include the boards and councils.
Commissioner Greene commended Carrboro for being recognized as one of the top
five small arts communities in the country. She said that the North Carolina Association of
County Commissioners (NCACC) is continuing its series of webinars on strategies for using the
opioid settlement money. She shared that she moderated one of the sessions yesterday about
how to work with justice-involved individuals. She said a lot involved the FIT program and it was
very rewarding and useful.
Commissioner Fowler said she attended the ABC Board meeting on February 22nd
She said that they increased their minimum wage to meet the new living wage criteria and
adjusted other salaries to address compression. She said they want to revisit raising the
General Manager's salary and will be bringing a formal request to the Board. She said that they
heard presentations from various community organizations that work to address substance
abuse. She said that the presenter from Campus and Community Collision pointed out that
excessive drinking leads to $111 billion costs to community. She said she appreciates the
opinions and comments of the public but that she believes the mandate should be based on
data with clear criteria. She said this decision was made by the Chair and mayors, with input
from the health department, and they used guidelines rather than opinions. She said that the
CDC website is changing daily. She said that she believes the county will be in a "safe" range to
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make masks recommended rather than required by March 7, 2022. She noted that the schools
have a lot of vacancies and few substitutes to fill those needs. She said that the current
recommendation is for teachers to stay out for 5 days if they develop COVID. She said she
thinks that will impact schools where they may not want to jump in line behind the
recommendations and may need to make their own decisions.
Chair Price said the Emergency Management Partnership includes a few elected
officials as well as folks from Emergency Services and Emergency Management, as well as
UNC Health. She said their decisions are based on recommendations from those experts. She
said that Todd McGee has started the County's Government Academy and encouraged people
to participate and learn more about how to get involved with the county through advisory
boards. She said she attended the launch of the Summer Careers Academy, funded by the
Board, and open to young people aged 16-24. She said that it teaches skills, trades, and allows
them to apprentice and then move onto jobs. She said there is a focus on people coming from
low wealth families, refugee families, and BIPOC communities. She congratulated the
Economic Development Department for Thermo-Fischer Scientific, located in Orange County,
being recognized as the 2nd largest fourth quarter 2021 project by investment.
4. Proclamations/ Resolutions/ Special Presentations
None.
5. Public Hearings
None.
6. Regular Agenda
a. Orange County's Proposed 2022 Legislative Agenda
The Board reviewed and discussed the Legislative Issues Work Group's (LIWG) proposed 2022
legislative package and any other potential items for inclusion in Orange County's legislative
agenda package for the 2022 North Carolina General Assembly Session; considered approval
of the 2022 Orange County Priority Legislative Issues document for submittal to Orange
County's legislative delegation; and considered approval of the 2022 Orange County Legislative
Interests document to also be shared with Orange County's legislative delegation.
BACKGROUND: In preparation for each North Carolina General Assembly session, the Board
of Commissioners has historically appointed two members to work with staff on a Legislative
Issues Work Group (LIWG) to develop a proposed legislative package for the County. Based
on the work of the LIWG, the BOCC has then reviewed and approved packages of legislative
items to present to Orange County's legislative delegation.
Commissioners Renee Price and Anna Richards are serving on the 2022 LIWG and have
worked with staff on the proposed 2022 legislative package, which consists of the two attached
documents, in preparation for the Board's March 21, 2022 Legislative Breakfast meeting with
Orange County's legislative delegation.
As the LIWG considered its approach for this year, the Group (similar to last year) decided to
identify a set of Legislative Priorities and a broader set of Legislative Interests. The Group
ultimately identified five (5) Legislative Priorities, acknowledging that the full Board of
Commissioners may consider modifying the list, exchanging one item for another item, other
potential revisions, etc. Attachment 1 is the draft list of five (5) recommended 2022 Orange
County Priority Legislative Issues from the LIWG.
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While the LIWG wanted to focus on the five (5) Priorities in Attachment 1, it also decided that
the county should express its positions on other topics. Attachment 2 is a draft broader listing
of 2022 Orange County Legislative Interests. It includes issues the Board has submitted in past
years to the county's legislative delegation, with some updates as necessary.
The Board will need to discuss and consider Attachments 1 and 2 as provided by the LIWG.
The work of the Legislative Issues Work Group to this point is based on the current information
available for the 2022 General Assembly Session. The issues addressed by the Group may
evolve and change over the session and require additional attention by the Group and Board of
Commissioners. New issues may also arise necessitating additional review.
Greg Wilder, Assistant to the County Manager for Legislative Affairs, reviewed the
background information for the item. He noted that the March 21, 2022 Legislative Breakfast is
planned to take place via Zoom.
Chair Price asked Greg Wilder to explain what happens at the Legislative Breakfast.
Greg Wilder stated that the Board members and three members of the legislative
delegation join with staff to meet and discuss the five legislative priorities identified by the
Commissioners. He said that they also discuss other topics the delegation wants to share with
the commissioners and vice versa. He said the meeting typically lasts 1.5 hours. He said that
the delegation sometimes gives feedback on items they think will move forward and they can
ask for additional information as needed.
Commissioner Hamilton thanked Chair Price and Commissioner Richards for working on
the legislative issues list. She said the list is excellent. She said she would like to add a priority
focused on capital needs of the schools, given the level of need.
Chair Price said that has been in the document in the past.
Greg Wilder noted that the issue is part of item number 17 on Attachment 2.
Commissioner Hamilton said she thinks there should be a separate highlighted issue.
Chair Price clarified that Commissioner Hamilton is proposing to move 17b to its own
separate item.
Commissioner Hamilton said she would like the infrastructure capital part of 17 to be a
new item.
Greg Wilder suggested a new item to read "support legislation to provide additional
capital funding to support school infrastructure, renovations, and improvements".
Commissioner Greene suggested making that 17b.
Commissioner Hamilton said she would prefer the item be its own as number 18.
Commissioner Fowler suggested making it 17a since it is priority and agreed that it
should be more prominent on the list.
Chair Price said the Board will discuss these issues with the delegation and that it would
be fine to make it a separate item.
Commissioner Fowler shared appreciation for highlighting mental health on the list. She
said that is a priority that the state is failing on. She said that there is a deficit to take care of
folks with mental health issues. She said the state is currently serving 13,500 and there are
over 15,000 on registry of unmet need. She said there is another list called community
alternative services for folks with chronic disabilities and there are 2,500 on the list with zero on
the waitlist. She said that the state's recommendation to address those needs is increasing the
cap to 5,000 with 1,000 this year and 1,000 next year. She said that this is merely a drop in the
bucket that they need to continue pressure on the General Assembly to increase those slots.
She said this is an equity issue where mental health needs are being treated differently than
other health needs.
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Commissioner Bedford said there has been talk for years about another state bond for
school capital, and whether that is written or spoken at the Legislative Breakfast, she thinks it
should be highlighted to the delegation.
Commissioner McKee said he is satisfied with the list.
Commissioner Hamilton said this document is valuable for the community and for the
delegation. She said she agrees mental health is a huge importance. She asked what is meant
in the priority that reads "seeks to fund a plan" vs. just putting more money into existing
programs. She said that existing programs will need more funding.
Chair Price said they are looking for some sort of a plan. She said that right now they
are going through Medicaid transformation and there will also be something after that. She said
that she and several commissioners attended a legislative breakfast on mental health and there
is so much that goes into this issue. She said the point is to get the issues across to the
delegation. She said there are limitations to what the legislative delegation will be able to do
within the climate of the General Assembly. She said the point is to say that a lot of work is
needed in mental health and to get that across to the delegation.
Commissioner Hamilton said that the mental health breakfast was eye-opening. She
said that she learned that the mental health system was dismantled, and we need to rethink
how mental health services are provided in this state and provide more funds.
Commissioner Fowler said the Olmstead plan was made to address the state's deficits,
so continuing to support that, and fund the plan at the General Assembly level, would be
helpful. She said she's glad to see Medicaid expansion on the list because it will also positively
impact mental health care and provide more funding. She said even if people qualify for
services, they are not getting them because there are not enough providers. She said that they
raised the minimum wage for people doing direct support, so hopefully that will have an impact.
She said that overall, the world needs more people going into psychiatry. She said that overall,
she is pleased with the list.
A motion was made by Commissioner Fowler, seconded by Commissioner Hamilton, to
approve the 2022 Orange County Priority Legislative Issues document, and to approve the
2022 Orange County Legislative Interests document, with amendments as discussed, for
submittal to Orange County's legislative delegation.
VOTE: UNANIMOUS
Greg Wilder clarified that the addition of an item reading "support legislation to provide
additional capital funding to support school infrastructure, renovations, and improvements" will
be added to Attachment 2 as item 18.
Chair Price said yes.
Chair Price reminded the Board that the Legislative Breakfast will be March 22, 2022 at
8:30 AM.
7. Reports
a. 203 Project Status Update
The Board received an update of the 203 Project including the current status of the Guaranteed
Maximum Price (GMP) development and to provide direction on the range of options to
consider as next steps. Final consideration is currently scheduled for the Board's Business
meeting on March 15, 2022.
BACKGROUND: At the March 10, 2020 Orange County Board of Commissioners' Business
meeting, the Board approved a final scope and budget for the construction of the 203 Project,
6
named for its address at 203 South Greensboro Street, Carrboro, NC. This project is a joint
venture between the Town of Carrboro and Orange County that is intended to construct an
Orange County library branch, as well as permanent facilities for the Skill Development office.
The Town of Carrboro portion of the project includes meeting spaces, a small theater, and
offices. The proposed site of the development at South Greensboro Street is located on an
existing Carrboro municipal parking lot near the center of the town. At that meeting, the Board
approved a construction budget of $11,777,000 for the Orange County portion of the project.
The total approved construction budget, including Carrboro's portion, was $22,282,000
(Attachment 1).
This project is being performed through a Construction Manager at Risk (CMAR) delivery
method. This delivery method entails a commitment by the Construction Manager (CM) to
deliver the project within a Guaranteed Maximum Price (GMP) which is based on the
construction documents and specifications at the time of the GMP plus any reasonably inferred
items or tasks. The project architect selected for the project is Perkins & Will and the
Construction Manager is the Barnhill Contracting Company.
The design process began shortly after the approval of the project with the start of Schematic
Design (SD) development. At the completion of the Schematic Design phase in November
2020, a construction estimate derived from the design showed that the project was significantly
over budget. A Value Engineering (VE) effort immediately ensued and scope modifications
were made to bring the project costs down. After the completion of Value Engineering, the
project was still over budget, and at the March 2, 2021 BOCC Business meeting, the Board
approved additional funding through a combination of capital funding reallocation and a minor
scope reduction to close the budget gap of $1,807,160. Including the CMAR fee of $723,520,
Orange County's portion of the construction budget totaled $14,232,856. The total construction
budget, including Carrboro's portion, grew from $22,282,000 to $25,306,336. The cost overrun
was attributed the escalating costs associated with the parking deck. The Town of Carrboro did
not incur a cost overrun at that point in time. See the Chart#1, below for further detail:
Chart #1
203 Project
Original Construction Budget Town Orange County Total
Construction 10,505,000 11,777,000 $22,282,000.00
CMAR Fee 568,480 723,520 $1,292,000.00
Total Const 11,073,480 12,500,520 $23,574,000.00
BOCC Schematic Budget Adjustment $1,807,160 $1,807,160.00
14,307,680 $25,381,160.00
Scope Adjustment(Part of BOCC Change) -74,824 -$74,824.00
Revised Construction Budget(March 2021) $11,073,480 $14,232,856 $25,306,336.00
The project next proceeded into the Design Development (DD) phase of project design. Upon
completion of Design Development in May 2021, a new construction estimate was prepared,
and the project was once again found to be significantly over budget. Another round of Value
Engineering (VE) ensued, additional modifications were made, and the project cost was brought
down within budget.
On February 4, 2022, a memorandum was sent to the BOCC and Carrboro Town Council
(Attachment 2) that provided a project bidding, approval, and financing schedule. Per the
schedule, thirty-two bid packages were released for bidding on January 17, 2022 with received
bids opened on February 9, 2022. Unfortunately, several bid packages could not be opened on
that date due to insufficient bidding by members of the construction community.
Re-bidding of those deficient packages began on February 10, 2022 and were opened on
February 17, 2022. The tabulation of all of the bid packages has produced a tentative
Guaranteed Maximum Price of $34,692,067 (Attachment 3). This GMP is $9,385,731 over the
March 2021 revised approved construction budget of $25,306,336. Orange County's share of
the construction costs rose from $14,232,856 to $19,202,063, an increase of $4,969,207 over
the March 2021 budget adjustment. See Chart #2 below for more details:
Chart #2
Town Orange County Total
Revised Construction Budget(March 2021) $11,073,480.00 $14,232,856.00 $25,306,336.00
Project GMP(tentative) $15,490,004.00 $19,202,063.00 $34,692,067.00
Estimated Additional Funds Needed $4,416,524.00 $4,969,207.00 $9,385,731.00
The escalation of construction costs can be attributed to the unprecedented supply chain
disruptions and labor shortages associated with the ongoing COVID 19 pandemic. While all
sub-components of the construction budget experienced some escalation in the range of 3-5%,
several areas stand out for their outsized contribution to the overall escalation:
• Glass and Glazing increased 84% from $800,000 to $1,470,000.
• Drywall and metal studs increased 40% from $999,000 to $1,398,609.
• Electrical costs increased 36% from $2,900,000 to $3,946,000.
Barnhill Contracting Company is now in the process of reviewing and revising these numbers
and is expected to provide a final GMP by March 7, 2022. An agenda item requesting final
review of the project GMP is scheduled for the Board's March 15, 2022 Business meeting.
A total project cost based upon this tentative GMP, including design fees, Furniture, Fixtures
and Equipment (FFE) and contingencies, is shown below:
03/01/22 Total Project Budget(Updated with GMP)
Town Orange County Total
A.Construction
Total Construction&CMAR $15,490,004.00 $19,202,063.00 $34,692,067.00
B.Design
Architectural Fees(Ratio of CBO/OC Sq. Ft. =44.52/55.48) $752,074.13 $937,220.87 $1,689,295.00
Supp.Architectural Fees(Ratio of CBO/OC Sq. Ft.=44.52/55.48) $252,784.56 $315,015.44 $567,800.00
$1,004,858.69 $1,252,236.31 $2,257,095.00
C.FFE&Contingency
Furniture,Fixtures and Equipment(FF&E) $1,688,850.00 $802,225.00 $2,491,075.00
Owner's Contingency(5%) @ Ratio of CBO/OC 44.52/55.48 $772,245.00 $962,358.00 $1,734,603.00
Subtotal FFE&Contingency $2,461,095.00 $1,764,583.00 $4,225,678.00
TOTAL Project Budget $18,955,957.69 $22,218,882.31 $41,174,840.00
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Steve Arndt, Asset Management Services Director, reviewed the background
information for the item and introduced Eric Hyde from Perkins and Will architecture firm, and a
representative from Barnhill Construction, Robert Eagle.
He gave the following PowerPoint presentation:
Slide #1
Agenda Item 7a —f
ORANGE COUNTY
NC)RTH CARC)LINA
203 Project
Guaranteed Maximum Price(GMP) Update
YH$
41
a rt
203
AR03
Board of Orange County Commissioners
March 1,2022
Slide #2
b.
�L
ORANGE COUNTY
203'. NOR 1[:n WOIJNA
Steve Arndt said that the project is a 56,000 sq ft facility and a joint venture between
county and town of Carrboro for library and skills development center.
9
Slide #3
The 203 Project Budget Evolution
i r � Option i-MdpeF Allocation with Skills berelaprnent
■ f
G-T r 4-6n o v--
budget at the March 10, �Yf1.ItY.r1 FMS VIIYI {iY �Jil Tlb4R
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GRANGE COUNTY
N{}RT[[G4 ROLINA
Slide #4
The 203 Project — Budget Evolution
* Schematic Design (SD) completed in
November 2020.
• Project significantly over budget.
• Value Engineering (VE) reduced the -
budget deficit to $1 , 07,1 0.
• BOCC approved budget
modifications at March 2, 2021
regular meeting
ORANGE I COUNTY
nrc�Rr< CARQLIh]A
10
Slide #5
The 203 Project — Budget Evolution
Total
Original Project Budget $28,195,195,00
Revised Budget (March 2021) $31,034,982,00
203 Project S udget
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rrOORrI<cLa RC}Lli*]A
Slide #6
The 203 Project Budget Evolution
• Design Development
DD) completed in May
2021 .
• DD construction
estimate over budget.
* VE efforts able to bring
the project back within
revised construction
budget. --
20,3__ ORANGE COUNTY
N{}RTI I CAROLINA
Steve Arndt said that the design phase finalizes schematic design and adds more detail.
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Slide #7
The 203 Project - Budget Evolution
Design work finished in November 2021
t Bidding for the GIMP started on January 17111, 2022
and finished on February 1 t", 2022.
i The tabulation of all of the bird packages age has
produced a tentative Guaranteed Maximum Price
for construction of 4, 2,0 7.
* Total Project Cost jumped from $31 ,034,982 to
41 , 174, 40. The County Share increased by $5.4
million. _
ORANGE COUNTY
rrOORr<<cLa ROLINA
Slide #8
The 203 Project - Budget Evolution
Total
Orional Total 15u(Jge# $38,S95,S95,40
Revised rasa1 8Odrt(march 2621) 8�0049� ,DO
rotaI Bud get with Project GMP[tentative) $4tI?4,S40LU0
243 Protect Rudge:
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SMarh26237 PmIm GMP 1Nnrrlwe� ORANGE
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12
Slide #9
Biggest Variances
100%beslgn
Bld Packaps EAimate GMP Mererrae
Site Water&5ewer $69,T4,00 $345,220.00 $275,426.00
Landscape Irrigation $191,fi20,00 $32$3�2M $136r712,44
Concrete $6,385RS7,00 $7,697,7T7-00 $2,322,690.00
Steel $735r551.00 $2r319,77&00 $15&r227.00
Drywall �1,406r105.00 $2J75,00"o $759r$95.00
Plumbir18 $566,530,00 $844,442A0 $277,844.00
Total ",354,74SM $13,711,539.M 4,355,794M
• Labor Shortages - Average hourly earnings in construction rose
5.8% from February 2021 to January 2022 .
• Supply Chain issues caused producer prices to soar. In the
construction industryr producer prices jumped by 1.6% are 2021
ORANGE NTY
rrOORTE E cL4 RC}Lli*]A
Steve Arndt said that during the last year, concrete, steel, and drywall costs increased
dramatically.
Slide #10
Total Project Budget
03101122 Total Pro' a M.d9el Updated with GM PI
Town Own!■ County TOW
A Gen#ruRbn
Tot,pi OnstrvrtiQn i CCMAR 51MM)M&00 $19,2022053100 534Aft07,
a,D"IF
46OdureIkeesMafuofC0010C Sq.R.-44.52/59.46I S752,074,13 5937.22G$7 295AX
SuPR.Archibeckural Fees(Ratioof[B010Ct q-Pt.-411,5V55-41L S2547V.56 5115r015,44 $56?19MDC
$1A4§,asaea $1,.3i�,Z3G31 #�7,
L FFE 16[0n[IrqP8nry
Furniture,ru[uresand EquipmaxIFF&EJ S1 fi86654.001 $W2,Z25.(0 $ d91,475.
owners coungencyis%)@Ravoor€50fDC44.W55.48 $772,245.06 $952,35&,DO $L737,6M.
5ubioialFFE&Comr)g&,Yy S2XI 9+5.E1d $ ,764,Sa.3.ca $4,M,e7&Du
TOFALLFeoJm2RL4Vt $ 955,957.69 $22 ISAM.33 S41,174j&&00
UE
ORANGE COUNTY
NO ORTE E C4.ROLINA
Steve Arndt said that the design fees have not changed at all during the project.
13
Slide #11
Financial Impact
• Debt Finance the total
budget shortfall of -,
$ ,400,333.
ORANGE COUNTY
rcORTE<-c�a RC}Lli*]A
Steve Arndt said that if they proceed with the project, this shortfall would have to be
financed through the issuance of debt.
Slide #12
Debt Finance Schedule: $8. 1 M Increase
Sn� 2022 Series 21322
Tuml $1"66,106 98,2&6.024 324J�fi1.196 Total $21,946AM $11,120,00a #22.096.441 ",A4,.262
2022 559,072 669.072 2023 741,334 74"24 182,261
2024 922.255 745,430 i,672.BM 21524 1499272 999,445 2.088717 Si3,03,2
2025 921R,256 74$1612 1,638.413 2025 1099272 939,022 2.027294 500,961
2026 826.259 674.667 1.499_142 2028 1.098272 889.844 1.96T-872 466,730
2027 82B.259 @33.1315 1.40L671 2027 10982x2 840.1T6 1.936.450 MOB
2028 82B.259 S98.344 1.424-590 2026 1.098272 790.758 1.669A28 464,429
21529 822.255 559,072 1,38TM8 21529 1092272 MOM 1,939-645 457.27S
20aa 928,255 521,801 1,260056 2Q20 1099272 69011 1.79019a -044,127
24ai 822.255 484,629 1,312785 2431 1098272 642.429 1,740761 4270976
2082 82B.254 447.256 1.2T;x513 2032 1.09a272 598.467 1.891339 415,826
2033 82B.255 4N.968 1.256.242 2033 SA98272 Z48.845 1,04UM 443,675
2034 82B.254 072.715 1.240.970 2034 1.09a272 494.222 1.592.494 391,524
2035 822,255 2a6,443 i,i83899 21535 1092272 444,200 1,543472 3790373
2036 9212,255 298,i72 1,128.427 2028 1499272 295.278 1,493..650 367,M
2037 822,255 260,900 1,089.156 21537 1092272 245,958 1,444228 355A72
2038 82B.254 225.629 1,05i684 203E 1.098.02 296.533 1.394.805 3AL921
2939 82B.256 189.357 1.014.913 2039 1A98272 247.111 1.345380 334,770
2040 82B.254 149MB 977.341 2044 1098.02 197.669 1.294..961 3IM20
2041 922,255 111,814 940074 2041 1499272 149,287 1,248539 306,469
2442 921R,255 74,542 002 799 2042 1099 272 99,944 1,147 116 294o318
2042 922,255 27,271 985 527 2442 1099 272 49,422 1-1 282,167
ORANGE COUNTY
N{}Rr[[G4 P-OLINA
Steve Arndt said that the actual total difference is total cost of borrowing the money over
20 years, with interest.
14
Slide #13
Options — Deduct Alternates
■��'0111�[rYYl4 FP4IUMP6111R"FES' W 11W
Ac epting D ed u ct A Item ate s
■��
could save up to $811 ,509
Shelling out both Skills and �. .r.W. .. .....
Library would also eliminate
}Mi,[fF_Y}fla}q WibO GkiYY < :i+�+_iJL
need for FF&E, an additional �°° ��° °
$80 6
ana RIl74 R17+i.71",70.K1}01 I
} FI] G.;aALt/I � l�Fff Y.M'l1�FI4�4 FFYC 'Ifr,'S¢
! Mm
- Total Savings $1 , 1 r}7 4
F,} �rr�oo.uaw.wr�F.i ! 1F.U]Y
• However, the Skills Center i
s
currently renting space at the 9 s �a
i
Europa Center at s s��
I�ese•• e S
$19,904/month} $238,8481year. 11+1 ORANGE
` TI) TYC}RT[f C-AR{}L1NA
Steve Arndt said that some savings on list are relevant to Carrboro only. He said that
they need to weigh ongoing operating costs from the skills center rental vs. investment in this
facility.
Slide #14
Options — Attempt to IE select bid packages
• Concrete, Steel and Drywall
saw the greatest escalation. -
* VE might result in contract -77 .
I
savings.
• However, savings would be 1
retroactive (after financing),
• Current bids only good for 00
days.
olv N[T�(
nrOORr<<CARQL]NA
15
Slide #15
Questions/Discussion
DC SKILLS DEVELOiPMENTCLASSRO KAS
_:.
ORANGE COUNTY
rrrrRrEi c=.aROi_]NA
Commissioner Richards asked about the increased site water and sewer increase.
Steve Arndt said it was a surprising increase that can be attributed to the labor shortage
and the fact that increased demand for services allow contractors to choose projects with more
flexibility. He said staff worked diligently to get multiple bids for all of the packages. He said that
these numbers are the best they can do at this time.
Commissioner Richards said it creates a confidence issue in the numbers and makes
her worry about other numbers. She asked about the "not to exceed amount".
Steve Arndt said the GMP, or guaranteed maximum price, is Barnhill Construction
guaranteeing that this is the top dollar amount the county will be charged for the project.
Commissioner Richards asked what the contingency is in the budget.
Bonnie Hammersley said it is 5%, which is the standard.
Commissioner Fowler asked if it is 5% or $5 million in contingency.
Bonnie Hammersley said it is 5%.
Commissioner Fowler asked if shelling out the facilities would affect functionality.
Steve Arndt said yes. He said the facilities would be without carpet, paint, lights, and
furnishing and would ultimately have to be finished at a later date.
Commissioner Fowler said if the facility isn't functional, then costs will still be incurred
from renting the space for the skills center. She said by shelling it out, the whole reason the
county wants the building, for a library and skills center, would not be achieved. She said that
option would essentially be building parking. She said that during a previous presentation, there
was an option to reduce the size of the parking deck in order to reduce costs. She asked if that
was still an option.
Steve Arndt said it's not on the table at this time, and the Board at the time decided not
to move forward with that cost saving option.
Bonnie Hammersley said anything is an option that the Board would like staff to work
on. She said there aren't many options left now because the project has been completely value
engineered, but anything the Board directs between now and March 15th when this comes back
16
to the Board, can be looked at. She said that the Board can direct them to do anything they
would like for them to speak with Carrboro about.
Commissioner Fowler said that labor costs and supply costs went up and asked what
was included in the total percentage increase of 32.7%.
Steve Arndt said that number was based on a report from the AGC that looked at
numbers from 2020 and 2021. He said that what was bid in February is based on the current
environment.
Commissioner Fowler asked if there were any parts of the project that had no bids
received.
Steve Arndt said bids were due February 9 and several packages didn't have sufficient
bids, so staff had resolicit bids and those were all reopened on February 16.
Commissioner Fowler clarified that now all bids are received.
Steve Arndt said yes. He said he expects to see the final GMP March 7t" and expects it
to be very similar to what is presented here.
Commissioner Fowler asked if it's possible for the GMP to continue going up.
Bonnie Hammersley said a GMP will only go up if the owner asks it to go up, which the
county won't do, or an act of God, like a huge rock beneath the site that requires removal.
Commissioner Fowler said that wasn't her experience with GMPs with the school board,
also working with Barnhill.
Bonnie Hammersley said that seems unusual.
Commissioner Greene clarified that shelling out means no library and no skills
development center. She asked what interest rate is applied to the total $8 million.
Steve Arndt said 4%.
Commissioner McKee said he doesn't see shelling out library as an option. He asked to
see the difference between pricing with and without a parking deck.
Steve Arndt said the parking deck couldn't be eliminated completely because part of
building is underneath.
Commissioner McKee clarified he just wants a general number in reduction or a range in
price.
Steve Arndt said there are 171 spaces in deck and 110 are the county's responsibility.
Bonnie Hammersley said the cost of entire parking deck was $8 million.
Commissioner McKee said he understands there has to be parking, but this started out
as a desire for a library, and increases seem to be getting out of hand. He said that funds for
other projects and services will be impacted by these increases, and a tax raise might be
required. He said that his concern is how to balance this scenario.
Eric Hyde said that about a year ago, they discussed that taking off 1 level of parking
deck would save $800,000 to 1 million.
Steve Arndt said that the parking deck is composed of concrete and that is one of the
major increases in cost. He said that it could be 40-50% higher than the costs projected last
year. He said that they would have to calculate that. He said that if the BOCC directs staff to
remove parking, they would have to go back and redesign that part of the project and rebid. He
said that would take a couple of months.
Commissioner McKee said he isn't suggesting that. He said he doesn't understand $2
million in architectural costs, and he is trying to get information to make a decision on. He said
that they have doubled the cost in a year and a half.
Commissioner Hamilton asked if there is a guaranteed time to complete the
construction.
Steve Arndt said yes and that is part of GMP.
Robert Eagle said that it is 18 months from notice to proceed and that there are
liquidated damages if they go over on time.
17
Steve Arndt said the clock starts running at the notice to proceed.
Commissioner Hamilton said she is also concerned about the price of the project. She
understands COVID-19 has made things difficult. She said that given the current international
climate is not leading her to think prices will decrease. She said that there are many needs that
the county has and that she looks at all projects against their competing needs. She said that
this is a priority.
Commissioner Bedford said that staffing projections increased but not as much as other
increases. She said that she agrees that parking is important. She said that interest rates
concern her. She asked if there is any possibility that Carrboro could adjust and fund more that
has been assigned to Orange County.
Chair Price said Carrboro is funding their portion and that the county is funding their
portion.
Bonnie Hammersley said the Town Council is looking at this tonight as well and will
come back on March 15t". She spoke to the Town Manager and the council has issues with the
increased cost of project as well.
Chair Price said she knows Carrboro needs 61 parking spaces but questioned the 110
spaces total.
Steve Arndt said there was a detailed analysis done on the demand for parking during
the design plan and 120 spaces were deemed to be accurately needed to accommodate both
facilities.
Chair Price said she hates to pave over open lands but wonders if there is an alternative
to parking, like a park and ride, and public transit, if that would alleviate the need to build the
deck. She remarked on the increases of concrete and steel. She said she is also shocked by
the increases. She asked if the water increase was based on construction only.
Steve Arndt said this is for construction.
Chair Price asked if there are trends showing a decrease in costs going forward.
Steve Arndt said at best, they could hope for a leveling off, but absent extreme
economic decrease, it likely won't change.
Chair Price asked if there is a way hear back from Carrboro quickly.
Bonnie Hammersley said she is talking with the Carrboro Town Manager in the morning,
and they will discuss the issues brought up by both boards.
Chair Price asked if analysis could be done again on proposed parking spaces.
Bonnie Hammersley said staff will look at that and look at what is required. She said
they do not have to do any more than the requirements.
Chair Price said that she was trying to say that some of the planning requirements may
be outdated and unreliable for actual use and demand.
Commissioner Greene said that if some of the parking were to be removed then that
would require a redesign of the project and a rebid.
Steve Arndt said that the bids are only good for 90 days for every bid.
Commissioner Greene said that there is a local government deadline coming up that
Carrboro is dealing with.
Bonnie Hammersley said they are working with that deadline but that it can be pushed
off to a later date, if needed.
Commissioner Greene said if the project must be rebid, there's a chance the costs will
go even higher, as well as interest rates.
Steve Arndt said yes.
Commissioner Greene said this is very unfortunate, but the project has come a long way
and need to find some way to get to the finish line.
Commissioner Bedford said when the CIP comes to the Board, she hopes some of the
increases can be applied, so help the Board understand inflation.
18
Steve Arndt said AMS was shocked by these numbers, and after seeing it, they revised
the CIP with finance.
Bonnie Hammersley said staff will get the final GMP on March 71" and will come back on
March 15t" anticipating a decision. She said that the CIP will be presented on April 5m
Commissioner Richards said shelling out is not a good idea but that she would like to
see other alternatives.
Bonnie Hammersley said she's been working on this project since coming to Orange
County. She said that the value engineering has reached capacity. She said there is an issue
with the project being split between two boards and with those boards having different priorities.
She said she supports whatever this Board does and understands the different priorities
between counties and municipalities. Bonnie Hammersley said staff has looked at this project
from a variety of angles and different designs and uses. She said staff will continue to do what
they can.
Chair Price asked what percentage of entire building construction parking is.
Steve Arndt said it is about 50% in area.
Commissioner Hamilton asked if the Board could have a preview of the CIP. She said
she would like to look at a comparison of other projects.
Bonnie Hammersley said staff can provide a model on March 15tn
Commissioner Hamilton said it would be helpful to get a sense of the projects in the
model.
Bonnie Hammersley said Travis Myren leads the CIP process, and staff is not at that
point yet.
8. Consent Agenda
• Removal of Any Items from Consent Agenda
• Approval of Remaining Consent Agenda
• Discussion and Approval of the Items Removed from the Consent Agenda
A motion was made by Commissioner McKee, seconded by Commissioner Greene, to
approve the consent agenda.
VOTE: UNANIMOUS
a. Minutes
The Board approved minutes from the February 1, 2022 Virtual Business Meeting.
b. Motor Vehicle Property Tax Releases/Refunds
The Board approved a resolution to release motor vehicle property tax values for two taxpayers
with a total of two bills that will result in a reduction of revenue.
c. Property Tax Releases/Refunds
The Board approved a resolution to release property tax values for ten taxpayers with a total of
sixteen bills that will result in a reduction of revenue
d. Applications for Property Tax Exemption/Exclusion
The Board approved a resolution for three untimely applications for exemption/exclusion from
ad valorem taxation for three bills for FY 2021/2022.
19
e. Approval of Revisions to Orange County Voluntary Farmland Protection Program
Ordinance (Code of Ordinances Chapter 48) and Boundary Adjustment for the New
Hope Voluntary Agricultural District
The Board adopted the proposed language adjustments to the County's Voluntary Farmland
Protection Program ordinance (Chapter 48, Orange County Code of Ordinances) and approved
the boundary adjustment for the New Hope Voluntary Agricultural District.
f. Eno River Farmers' Market— License Agreement Renewal
The Board approved the renewal of a license agreement, for a period of three years, between
Orange County and the Eno River Farmers Market (ERFM) for Saturday use of the David Price
Farmers' Market Pavilion and authorized the Chair to sign the agreement.
g. 2022 Amendment to Interlocal Agreement with Towns of Chapel Hill and Carrboro
Related to the Historic Rogers Road Area Private Sewer Service Lateral Connection
Installations for Qualified Low-to-Moderate-Income (LMI) Homeowners — Cost Share
The Board approved the proposed 2022 amendment to the Interlocal Agreement and
authorized the County Manager and Finance Director to sign.
h. Acceptance of Planning Jurisdiction over Two (2) Parcels to Orange County
The Board received the property owner petition and Town of Chapel Hill resolution, and
accepted assignment of planning jurisdiction into Orange County for two (2) parcels.
i. Women's History Month Proclamation
The Board approved a proclamation recognizing March 2022 as Women's History Month in
Orange County.
9. County Manager's Report
Bonnie Hammersley said the county hired a new Sustainability Project Coordinator, Amy
Eckberg. She said that she spent 13 years with Wake County and then time with the Virginia
Clean Cities. She said she has heard from staff that this individual is highly impressive.
Bonnie Hammersley reminded the Board there will be a work session on March 10t"
She said that the Board will hear from 10 boards for their annual report and will review
appointments to boards and commissions.
10. County Attorney's Report
John Roberts said the state legislature passed a new law regarding county
commissioners serving on non-profit boards. He said that some Board members serve on non-
profit boards that receive funding from the county, so they will need to work with him on a way
to excuse themselves from those votes. He shared that Town of Chapel Hill is discussing an
option of making elected officials part of an advisory board for the non-profits, specifically for
Community Home Trust, rather than being on their governing board.
11. *Appointments
None.
12. Information Items
• Tax Collector's Report— Numerical Analysis
• Tax Collector's Report— Measure of Enforced Collections
• Tax Assessor's Report— Releases/Refunds under $100
13. Closed Session
None.
20
Chair Price asked the Clerk to send a Doodle poll to determine another date for the May
17tn business meeting. She said that is scheduled the same evening as the Primary election.
The Clerk indicated that the date for the meeting was proposed to move to May 24th
and there will be a consent agenda item for the change on March 15tn
14. Adjournment
A motion was made by Commissioner Fowler and seconded by Commissioner McKee to
adjourn the meeting at 8:34 p.m.
Roll call ensued
VOTE: UNANMIOUS
Renee Price, Chair
Tara May
Deputy Clerk to the Board
Submitted for approval by Laura Jensen, Clerk to the Board.