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HomeMy WebLinkAboutMinutes 03-15-2022 Business Meeting 1 APPROVED 4126/22 MINUTES ORANGE COUNTY BOARD OF COMMISSIONERS BUSINESS MEETING March 15, 2022 7:00 p.m. The Orange County Board of Commissioners met for a Business Meeting on Tuesday, March 15, 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. 1. Additions or Changes to the Agenda Chair Price proposed adding a Resolution in Support of Ukraine to the agenda as Item 4-c. A motion was made by Commissioner Bedford, seconded by Commissioner Greene, to add an Item 4-c to the agenda to consider approving a Resolution in Support of Ukraine. VOTE: UNANIMOUS Chair Price dispensed with reading the public charge. Public Charge: The Board of Commissioners pledges its respect to all present. The Board asks those attending this meeting to conduct themselves in a respectful, courteous manner toward each other, county staff and the commissioners. At any time should a member of the Board or the public fail to observe this charge, the Chair will take steps to restore order and decorum. Should it become impossible to restore order and continue the meeting, the Chair will recess the meeting until such time that a genuine commitment to this public charge is observed. The BOCC asks that all electronic devices such as cell phones, pagers, and computers should please be turned off or set to silent/vibrate. Please be kind to everyone. 2. Public Comments (Limited to One Hour) a. Matters not on the Printed Agenda Dale Hodson read the following prepared comments to the Board: "My name is Dale Hodson, and I'm a resident of Orange County and Chapel Hill, and I'm not an attorney. I have bad news for Orange County residents, businesses, and organizations that have been harmed by the COVID restrictions imposed by the County: It didn't have to happen. Regardless of the restrictions that the State of North Carolina has imposed, I believe that the March 13, 2020 Orange County State of Emergency declaration, and all amendments 2 to it, legally ended after March 18, 2020 — nearly two full years ago. Because of that, I believe that all of the restrictions, shutdowns, and stay-at-home orders issued by the County over the last two years have been invalid and probably illegal after March 18, 2020. Why do I believe this? Because the original declaration and each subsequent amendment and extension are in contradiction to the Orange County Code of Ordinances. Section 14-40 of the Code states: "... Any proclamation issued under this article shall expire five days after its last imposition ..." Again, listen to those words: "shall expire five days after its last imposition" The Code doesn't say that the five day expiration is a guide, or a suggestion, or that a proclamation "might expire," or "could expire" - the Code says "shall expire." And "shall expire" is an order, not a choice. I understand the desire by the Board Chair to incorporate phrases such as "shall remain in effect until it is rescinded," but I believe such phrases violate Orange County law. The invalid language in the Declaration gives the purposeful impression that the Declaration could go on forever, and certainly longer than the statutory limit of five days. For the entire two years since the Declaration was first published, the Board and others have purposely given the impression that a valid County State of Emergency existed. If the County wanted a State of Emergency longer than five days, it would have been a simple matter: Just issue a new declaration every five days. For the last two years, thousands of County residents and businesses have been harmed by these invalid emergency declarations. I would think that County residents and businesses might seek legal recourse for the mental, emotional, physical, and financial harm they have incurred since the expiration of the Declaration two years ago. I request that the Board publicly display and send a statement to the media saying that the original State of Emergency declaration legally expired after March 18, 2020, and that all subsequent Amendments were invalid because there was no legal Orange County State of Emergency declaration in effect when the various amendments were declared." b. Matters on the Printed Agenda (These matters will be considered when the Board addresses that item on the agenda below.) 3. Announcements, Petitions and Comments by Board Members Commissioner McKee and Commissioner Hamilton had no comments or announcements. Commissioner Bedford said she will represent the Board tomorrow at the Hillsborough Durham Technical Community College Campus during UNC-Chapel Hill's announcement regarding targeted recruitment of young adult students. She said she will report back to the Board. Commissioner Greene congratulated the Eno River Foundation, Town of Hillsborough, and Orange County for the acquisition of over two hundred acres of the Ayr Mount estate, which will be added to the Eno River State Park. She said the area include four settlement areas, including one that date backs to 1,000 B.C., the Orange County Speedway, green buffers, and wildlife corridors. She said this is an exciting addition to the county's protected natural resources. She said that the Orange County Transit Policy Steering Committee has given tentative approval for the final revised Orange County Transit Plan. She said that the plan should come before the Board in the early fall. She thanked Craig Benedict for his leadership on this plan. Commissioner Fowler indicated that the County is allowed to appoint two members to the Alliance Health Board of Directors beginning in April. She said Alliance Health also has a Family and Consumer Advisory Council that can have up to twelve members. She encouraged people to apply for both boards through the Alliance website. Commissioner Richards had no comments or announcements. 3 Chair Price said she received an email from the Triangle J Council of Governments (TJCOG) that they are merging the rural and the metro. She asked for more information on this from staff. She echoed Commissioner Greene's comments on the new natural park and the benefits that this will provide to the county. She also congratulated the Arts Commission for their Big Night In for the Arts fundraiser. She shared that Caitlin Fenhagen, Criminal Justice Resource Department Director, has signed up to be part of the North Carolina chapter of the Vera Institute of Justice and their inaugural meeting is tomorrow. She announced that the Orange County 4-H is having an awards program on Thursday evening at 6:00 pm. 4. Proclamations/ Resolutions/ Special Presentations a. Recognition of Craig Benedict, Retiring Orange County Planning & Inspections Director The Board expressed gratitude to Craig Benedict, retiring Orange County Planning & Inspections Director, for his devotion and service to Orange County. BACKGROUND: After 23 years of dedicated service to the Orange County community, Craig Benedict is retiring on April 1, 2022. Craig Benedict began his career of service with Orange County as Planning & Inspections Director in 1999. Mr. Benedict worked closely with the Orange County Planning Board and Board of Commissioners on a multitude of issues, projects and initiatives. The Board of Commissioners expresses its appreciation to Mr. Benedict for his devotion and service to Orange County residents, Orange County government, and the Board of Commissioners. Chair Price read the following letter of recognition honoring Mr. Benedict: Orange County Board of Commissioners Post Office Box 8181 300 West Tryon Street Hillsborough, North Carolina 27278 March 15, 2022 Dear Mr. Benedict, With this letter, the Orange County Board of County Commissioners does hereby acknowledge the dedication and service you have given to Orange County since your hire as Director of Planning and Inspections on March 1, 1999. During your time with Orange County, you worked on a variety of different projects and initiatives that improved the Planning and Inspections department and advanced many goals of the Board of County Commissioners (BOCC). You actively participated in and provided your expert guidance to the advisory board for your department, the Planning Board. You also provided guidance to many Commissioners and provided numerous presentations to help the BOCC understand the complex issues that were brought before them. Your skills as a 4 planning professional helped them achieve a greater understanding of the matters under your jurisdiction. During your tenure, the Orange County population grew by more than 25 percent, and your professional expertise helped guide and manage this growth in a responsible manner. You collaborated with many departments, including Transportation, Solid Waste, Economic Development, DEAPR, Tax and many others, and established valuable relationships with the towns and other entities within the county. Your imprint in Orange County will remain for decades to come, as you have mentored staff and provided leadership to so many. A testament to the contributions that you have made for Orange County include the following: • Water and sewer in both the Efland-Buckhorn-Mebane area and Rogers Road area • Improvement in coordination with N.C. Department of Transportation • SAPFO (Schools Adequate Public Facilities Ordinance) adoption, administration, and implementation • Development and implementation of the Joint Hillsborough Strategic Growth Plan • Development and Implementation of Orange County's 2008 Comprehensive Plan Your fun and optimistic personality will be missed. Most of all, your ability to articulate your humor in your poetry will remain unmatched. We wish you the best in your retirement. Sincerely, Renee Price Chair, Orange County Board of Commissioners Craig Benedict said it has been a joy working for Orange County. He said he thinks they have accomplished a lot of the goals of the Commissioners and community set over 20 years ago - to preserve the quality of life in Orange County and not allow some of the explosive growth like is seen in surrounding areas. He said the structure is in place to maintain that and progress going forward. He said it was quite a ride and it is hard to know when to retire, but it is time for the next chapter. Commissioner Hamilton thanked Craig Benedict for his service to Orange County. She said that when she was a new commissioner, she did not realize how much Mr. Benedict did and all the areas his department touches. She congratulated him on all of the substantial work he has done in Orange County. Commissioner McKee thanked Craig Benedict for all of the time he spent working with him to help him with planning items and said he has enjoyed working with him. Commissioner Bedford thanked Craig Benedict for the guidance he has provided her on the complicated work of the Planning Department and wished him well in retirement. 5 Commissioner Greene thanked Craig Benedict for his work on the Transit Plan and all of his work with her as a commissioner and during her time on the Chapel Hill Town Council. She wished him the best in his retirement. Commissioner Fowler thanked Craig Benedict for his many years of service and for orienting her as a new commissioner. She said she hopes he enjoys retirement. Commissioner Richards thanked Craig Benedict for the time he has spent with her since she came onto the board in the fall and said his guidance and support helped her come onboard quickly. She said this is indicative of his many years of service and told him to enjoy his retirement. Chair Price said she has worked with Craig Benedict since she was on the Planning Board and expressed thanks for his work over the twenty or so years they have worked together. She wished him well in his retirement. b. World Water Day Proclamation The Board considered proclaiming March 22, 2022 as World Water Day in Orange County. BACKGROUND: In 1992, the United Nations (UN) General Assembly adopted a resolution to declare the 22nd of March each year as "World Day for Water." In observing World Water Day, governments are invited to devote the Day to the promotion of public awareness, focusing attention on the importance of freshwater and the sustainable management of freshwater resources. This year, the theme for World Water Day is "Groundwater - Making the Invisible Visible." Groundwater is invisible, but its impact is visible everywhere. Groundwater may be out of sight, but it must not be out of mind. The theme draws attention to the hidden water resource that has always been critically important, but not fully recognized in sustainable development policymaking. This year's campaign will explain groundwater's vital role in water and sanitation systems, agriculture, industry, ecosystems and climate change adaptation. The overarching message of the campaign is that exploring, protecting and sustainably using groundwater will be central to surviving and adapting to climate change and meeting the needs of a growing population (from https://www.unwater.org/world-water-day-2022-groundwater/). Upcoming activities related to World Water Day include the UN-Water Summit on Groundwater 2022 scheduled for December 7 and 8, 2022, which aims to bring attention to groundwater at the highest international level. Orange County Creek Week will be held March 12-19, 2022 (www.orangecountync.gov/CreekWeek). Events locally in March include: • The Haw River Clean-up Athon to be held on Saturday, March 19, 2022; • The Ellerbe Creek Watershed Association will lead Creek Week (March 12 through 19, 2022) with Clean-Up to be held on Saturdays - March 12 & 19, 2022. (https://www.ellerbecreek.org/attend-an-event.html); • Maude Barlow, and internationally known Canadian writer and activist, will participate in a webinar on March 22, 2022 hosted by Food & Water Watch, with experts and community leaders discussing how to pass the WATER Act, stop water privatization, and ensure clean, affordable water for all (Register here); and • The Women's International League for Peace and Freedom (WILPF-Triangle) and Triangle Raging Grannies will invite the public to celebrate World Water Day 2022 at a 6 "Groundwater — Making the Invisible Visible" event to be held at Northgate Park in Durham on Saturday, March 26, 2022 from 1:00-4:00 pm. The event will include an American Indian Water Blessing, water quality exploration, activities for children, interpretive dance, a parade with Paperhand Puppets, Raging Grannies, the reading of Orange County's Proclamation, scientific explanations of groundwater, and more. Commissioner Greene read the following proclamation: ORANGE COUNTY BOARD OF COMMISSIONERS WORLD WATER DAY PROCLAMATION WHEREAS, the United Nations (UN) has declared March 22"d as World Water Day and has invited governments around the world to devote the Day to the promotion of public awareness of the importance of water and the sustainable management of water resources; and WHEREAS, the theme for World Water Day 2022 is "Groundwater - Making the Invisible Visible," highlighting that Groundwater is invisible, but its impact is visible everywhere, and though it may be out of sight, Groundwater must not be out of mind; and WHEREAS, the intended goal of World Water Day 2022 is to acknowledge groundwater as a hidden treasure that enriches our lives, that everyone needs to work together to sustainably manage this precious resource, and that exploring, protecting and sustainably using groundwater will be central to surviving and adapting to climate change and meeting the needs of a growing population; and WHEREAS, today, water around the world is under extreme threat from a growing population, increasing demands of agriculture and industry, and the worsening impacts of climate change; and WHEREAS, according to UN estimates, 2.2 billion people around the world are living without access to safe water; and WHEREAS, climate change is and will continue to strain the availability, quality, and quantity of water for the basic human needs of potentially billions of people; and WHEREAS, the UN Sustainable Development Goals provide the clear goal of providing safe water and sanitation for all people by 2030; and WHEREAS, the United States uses 82.3 billion gallons per day of groundwater for public supply, private supply, irrigation, livestock, manufacturing, mining, thermoelectric power, and other purposes, according to the U.S. Geological Survey, and 55% of the population of North Carolina depends on groundwater for drinking water; and WHEREAS, water use has a direct link to overall monthly housing affordability when considering that ten percent of homes have leaks that waste 90 gallons or more per day, according to the U.S. Environmental Protection Agency; and WHEREAS, Orange County recognizes that water and sanitation measures are key to poverty reduction, economic growth, and environmental sustainability; and WHEREAS, people around the world and in Orange County value water for its cultural, religious and spiritual meanings; and WHEREAS, Orange County serves as the headwaters for three of the major NC river systems —the Cape Fear, the Neuse and the Roanoke; and WHEREAS, the County contains 15 different watersheds, 10 of which are used downstream for drinking water; and WHEREAS, Orange County has been working for decades to monitor and preserve water quality and quantity for residents though programs such as the Groundwater Observation Well Network and policies such as the Critical Watershed Protection Overlay Districts; and WHEREAS, dedicated community organizations such as the Triangle Women's International League for Peace and Freedom understand the critical value of water and work to support water preservation and protection in an effort to make water accessible to all; and WHEREAS, Orange County residents are helping to protect water quality and quantity by practicing and supporting responsible agricultural practices, wetland protection and restoration, and innovative wastewater management and reuse programs; NOW, THEREFORE, we, the Orange County Board of Commissioners, do proclaim March 22, 2022 as "World Water Day" in Orange County and challenge residents to celebrate the Day by sharing with each other the ways in which they value water. THIS THE 15T" DAY OF MARCH, 2022. Renee Price, Chair Orange County Board of Commissioners A motion was made by Commissioner Greene, seconded by Commissioner Fowler, to approve the proclamation and authorize the Chair to sign the proclamation on behalf of the Board. VOTE: UNANIMOUS Lynn Hutchby thanked the Board for passing the World Water Day Proclamation. She said she Triangle Branch of Women's International League for Peace and Freedom has a care for water as well. She said the Board's attention to one of life's necessities has made a big difference. She said that what they have chosen to say that water is life. She said that in 1987 she was at a water pump in Togo, West Africa and a woman asked her how she gets her water. She said it has become an emotional experience for her to tell this story of trying to explain a faucet to someone who did not know what it was and had to walk miles every day for water. She said that in response, the woman looked at her and said, "I am so sorry. That must be very 8 lonely." She said that this experience provided insight into her ignorance. She said that she realized that she did not know the source of her drinking water, and that her relationship with water changed after that. She said that she learned about Jordan Lake and that it takes over 2,000 gallons of water each minute to cool the Shearon Harris Nuclear Power Plant. She said that the U.S. is the largest energy consumer. She explained that 49% percent of the water in the U.S. goes to generate electricity. She said that when those facts are examined, you find that at home we are more aware of the need to be water protectors. She said that she learned about groundwater and appreciates that Orange County has no large streams originating in other counties that flow through Orange County. She said that the county serves as the upper watershed, or headwaters, for three of the major river systems. She said to the east those are New Hope Creek, Morgan Creek, Cane Creek, and Back Creek that flow into the Cape Fear River system. She said that in the North ,the Eno and Little Rivers flow into the Neuse River system. She said that in the south, Hyco and Lynch Creek flow north into the Roanoke River system. She said that there is joy to celebrate access to clean water and sanitation. She thanked the Board again for passing the resolution. She noted there will be an event at Northgate Park in Durham on March 26th for the public to attend. Chair Price invited Wesley Poole to speak on upcoming events. Wesley Poole, Water Resource Coordinator for Orange County, reviewed the upcoming events listed in the background information for the item. He noted that there will be a stream cleanup Friday, March 18th hosted by the Planning and Inspections Department and the Department of Environment, Agriculture, Parks and Recreation. c. Resolution in Support of Ukraine The Board considered approving a Resolution expressing support for Ukraine. BACKGROUND: On February 24, 2022, Russia invaded the country of Ukraine. This invasion has received significant response from across the globe, with many countries taking political, financial and other actions to express support for Ukraine, as well as voicing opposition to Russia's military invasion and its threat to the people of Ukraine, the remainder of Europe, and the world in total. On March 8, 2022, the Carrboro Town Council adopted a resolution in support of Ukraine. The attached draft resolution provides a similar opportunity for the Orange County Board of Commissioners to express its support for Ukraine. Chair Price reviewed the background information for the item. She asked if any Commissioners had comments or changes. Chair Price asked if the resolution needed to be read into the record. Laura Jensen answered yes. Commissioner Fowler read the following resolution: ORANGE COUNTY BOARD OF COMMISSIONERS RESOLUTION IN SOLIDARITY WITH UKRAINE IN OPPOSITION TO THE RUSSIAN INVASION, ASSAULT AND ATROCITIES AGAINST THE UKRAINIAN PEOPLE WHEREAS, Orange County is a peace-loving community that advocates human rights and the well-being of all people; and 9 WHEREAS, the people of Orange County oppose tyranny, unprovoked aggression and war; and WHEREAS, North Carolina Governor Roy Cooper issued Executive Order No. 251 condemning and responding to Russia's invasion of Ukraine; and WHEREAS, Orange County stands in solidarity with Ukrainian sovereignty and her territorial integrity as an independent and democratic Ukraine, and with the Ukrainian people as they resist Russian aggression, military invasion and the threat to their existence; and WHEREAS, Orange County supports an immediate ceasefire, sincere negotiations, a humanitarian corridor for Ukrainians seeking safe passage, and the delivery of humanitarian aid to those in peril and to war refugees; and WHEREAS, on February 17, 2022, United States Senators Rob Portman (R-OH) and Jeanne Shaheen (D-NH) led a bipartisan group of senators in adopting a bipartisan resolution cosponsored by Senator Richard Burr of North Carolina, in support of Ukraine amid increased Russian aggression; and NOW, THEREFORE, BE IT RESOLVED that, the Orange County Board of Commissioners: (1) commends the courage, resolve, and restraint shown by the Ukrainian people in their pursuit of sovereignty and democracy, and pays tribute to the many people who gave their lives in pursuit of a free and democratic Ukraine; (2) reaffirms unwavering support for a secure, democratic, and independent Ukraine, free to choose its own leaders and future; (3) condemns the illegal military invasion of Ukraine and annexation of Crimea by the Russian Federation in 2014, and the violence fomented by Russian proxies in eastern Ukraine, two active conflicts that continue in 2022; and BE IT FURTHER RESOLVED, that the Orange County Board of Commissioners encourages residents to advocate for humanitarian aid, ensure safe passage and haven for refugees, and provide support for the Ukrainian people and organizations, such as these: o NGO that arranges life-saving equipment for Ukrainian soldiers: https://savelife.in.ua/en/donate o Hospitallers working at the frontline: https://www.facebook.com/hospitaIlers/posts/2953630548255167 o Ukrainian Women's Veteran Movement: https://www.uwvm.org.ua/?page_id=3437&lang=en o NGO that assists internal refugees: https://unitedhelpukraine.org/ o NGO that assists internal refugees, especially from Crimea: https://www.peaceinsight.org/en/organisations/crimea- sos/?location=ukraine&theme o NGO that aids traumatized children: https://voices.org.ua/en/ o A foundation that assists healthcare and education in eastern Ukraine: https://razomforukraine.org/projects/zhadan/ o Libereco Partnership for Human Rights that provides evacuation and medical assistance: https://www.Iphr.org/en/humanitaere-hiIfe-ukraine/ o Caritas is a foundation that offers humanitarian assistance: https://www.caritas.org/ukraine-appeal-22/ 10 o Malteser International provides evacuation assistance: https://www.malteser- international.org/en/donation.html?amount=100&interval=0&fb_item_id=24633 o To fund protective and other defensive gear for the Ukrainian army: https://savelife.in.ua/en/donate/ BE IT FURTHER RESOLVED, that the Orange County Board of Commissioners asks the Clerk to the Board to share copies of this resolution with the mayors of the towns of Carrboro, Chapel Hill, and Hillsborough. This the 15th day of March, 2022. Renee A. Price, Chair Orange County Board of Commissioners A motion was made by Commissioner Fowler, seconded by Commissioner Bedford, to approve the resolution, and authorize the Chair to sign the resolution on behalf of the Board. VOTE: UNANIMOUS 5. Public Hearings None 6. Regular Agenda a. 203 South Greensboro— Consideration of Guaranteed Maximum Price (GMP) The Board considered approving next steps for the 203 South Greensboro project with the final Guaranteed Maximum Price (GMP) of $34,692,067 and a total project for construction and a total project budget of $41,174,840. The County's share of the total project cost is $22,218,882. BACKGROUND: The 203 Project is a joint venture between the Town of Carrboro and Orange County. The scope for the project includes the construction of a new Orange County library branch as well as permanent facilities for the Skill Development Center. The Town of Carrboro's portion of the project includes meeting spaces, a small theater, and offices. The proposed site of the development is located on an existing Carrboro municipal parking lot near the center of the town. This project is being executed through a Construction Manager at Risk (CMAR) project delivery method. This delivery method requires 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 for the project is Perkins & Will, and the Construction Manager is Barnhill Contracting Company. Bidding for the GMP began on January 17, 2022, and concluded on February 16, 2022. A preliminary GMP and associated budget implications were presented to the BOCC at the March 1, 2022 Business meeting. The County received the final GMP on March 8, 2022. The final GMP did not change from the GMP presented at the Board's March 1, 2022 Business meeting. The final GMP for construction remains $34,692,067. The total project budget including design 11 fees, furniture, fixtures, and equipment and a five percent (5%) owner's contingency brings the total project budget to $41,174,840. Based on the County's dedicated space in the building, associated parking, and the County's share of common areas, the County's total project cost is $22,218,882 as shown in the following table: 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 Orange County's share of the project construction budget overrun is approximately $4,968,033. The Owner's Contingency, based upon a 5% of the GMP, rose from $530,050 to $962,358, an additional $432,300. The total project budget impact is an increase of $5,400,333. Additional operating costs for the new Library are currently estimated to be $537,670 in the first full year of operation. Additional Options for Consideration On March 1, staff presented an option to shell in the County's portion of the facility. That option would produce approximately $1.6 million in total savings but would result in unusable programming spaces until additional funding is allocated to finish the space. Based on the Board's discussion, staff discussed two additional options to reduce the scope of the project and decrease the required budget. Option 1: Delete the Orange County Skills Development Center from the project with minimal redesign. This option would entail the removal of one level from the building and one level of the parking deck. This option keeps the current design mostly intact. The estimated time for redesign is five months plus an additional two months for re-permitting and bidding. The minimal redesign option would cost approximately $605,000 in architectural fees. The Construction Manager estimates a construction cost savings of approximately$3,765,000. 12 Option 2: Delete the Orange County Skills Development Center from the project with a more comprehensive redesign. This option would take the design back to a conceptual phase but could result in greater cost savings due to the opportunity to utilize a pre-cast parking deck. Additional public hearings and design approvals would be required. The time for redesign with associated approvals is estimated to be fourteen months plus an additional three months for permitting and bidding. Design and preconstruction costs would be applicable. The more extensive redesign would cost approximately $1,539,000. The Construction Manager estimates a construction cost savings of approximately $4,158,500. Based on an analysis of the construction market by Barnhill, construction costs are not expected to decline over the foreseeable future. Escalation of material and labor costs is expected to continue nationally due to supply and demand. Other large construction projects in central North Carolina are currently being developed and subsequently the project may experience less interest and less competitive pricing if the project is re-bid at a future date. Travis Myren reviewed the background information for the item and gave the following PowerPoint presentation: Slide #1 Agenda Itarn fi-a r ORANGE COUNTY NORTH TH R LINA 203 South Greensboro onsideration of Guaranteed Maximum Price Board of Orange County Commissioners March 15,2022 1 13 Slide #2 Guaranteed Maximum Price No change from March 1 report Final G uaranuied Maxi mum Pric-a—March 10,2022 Tam a E�n�r wow r.tanrtrurhlrr T«a G�I, iaa6[MAR ki,oeile, MthiwcurslFxc;Railo-oi tRQ78t ScF=c-dl,TSd} $75},43d. $832�2d. Srp..crt :b[G.rJFaac;Rana at��0/tYSq.Fi.-+�15W' $2iZ7E5.EK sa"is.lx r.FFF A GUUnacrep IMeFutures a+dE9ulPmv+11FF$dEf $L6le.SYl. SA722a. wrersCOMlnpercy;}9(f Rena of C94lOC e9fA 'SM263. 310.CK atal FFE1Cm1nVw? S],i U6r-. $t,76#, - SWj,h�O.Oq "adhodut F w.9smm-W2Y Y. cpr Caun(y P@rverdaga oF'5fWMd Cwts 54 Car rL=Pemef "-of Shared G'6.#ts 46% ORANGE COUNTY MOR71 I CAROLINA Travis Myren noted that the Guaranteed Maximum Price (GMP) has not changed since the Board received a presentation from Steve Arndt, Asset Management Services Director, on March 1, 2022. He said the development agreement guides how common area expenses (shared costs) are split between the County and the Town of Carrboro. Slide #3 Financial Impact of GMP County Financial Impact Cann"At amp _ Toil sdW rn dCofairrllan&[MAR 9. :Chi 9f�0i3 archi %937233 �937.2 hr McMxelfec IN5,07 13Ik4 Y,f6k'1=3 Y2S FFE IA CaMinga w.r nla A,Fa,a A s wdE9uIpmom lFFLE $0]},325 $B62T2 rraMSCwnlag�crt�;59if 58 ___ Vul vtalFRE&Cc-lirgenry 5L.372M 51. 993G.PW c7m"tapplat SMAILRL-q $M.Z3lEkWA j31331 Aaralil mad 95.4 fi10on mqui46to pmmod w,th cbmitsaopa ORANGE COUNTY t-M)R73 I CAR)LINA 14 Travis Myren reminded the Board that they approved the current budget for the project in March of 2021. He noted that the GMP has exceeded the allocated budget, so the Board would need to approve an increased budget to move forward with the current plan for the project. Slide #4 Debt Metrics Additlorral Prinelple and Intemst Payments -$9.2 mlllorr over 20 year term Debt Servbce to General Fund Revenue Poky rear CuMBMBLW AWSaAnl M CaORWIM 2W3 15.17% 1524116 0.075 2024 15.0 tt 152m 0.201 2025 115A 1d.61'b 0.19VI 2020 1391% JA.09% 0.185 2027 1 7 Tax Rale Equivalent Analysis leear x,1-as5AfNWri alr�renoe 2023 0.29E 0,354 O.ON 2O24 0.364 0.5M 0.154 2025 0.044 0.05i 0.004 2322c 0.044 0009 0.00C 2a27 0.M 0004 0.U0 ORANGE COUNTY NOWrd I CAROLINA Slide #5 Scope Reduction Option 1 - Delete the Orange County Skills Development Center from the project with minimal redesign — Time for redesign is swan(7)months to permitting and bidding Redesign cost approximately SOM.00D In archlleotural fees • OptionZ Delete the Orange County Skills Development Center from the project with a more comprehensive redesign — Opportunity tomlilize apre-cast parking deck Time for redesign seventeen(17)months to permittlrkg and bldding Redesign tiwoud costapproxlmatmy $1,539,000_ Removes 12,600 square feet of program space and 45 parking spaces * The Construction Manager estimates a construction cost savings of approximately$3.765.000 ems. ORANGE COUNTY MOFUI I CAROLINA 15 Travis Myren said that realistically, they are left with the reduction of scope to reduce prices of construction. Slide #6 Scope Reduction — Impact on Shared Costs Current structure of Development Agreerrent=Shared costs allocated by percentage of square feet occupied — 5irework Common areas In hull(ting — Shared parking (35 spaces) Orange County Percentage — Decreases from 54%ro 39% arrboro's Percentage — Increasesfrom 415%to61% Implications for Development Agreement ORANGE COUNTY M-)R7]r CARD1.rN:k Slide #7 Scope Reduction tion — Financial Impact Financial Impact of Cost Share Changes sW taunt, sed Rwe I A Conftrurtkw To:n�avinxilan&CMBR 910.74,R 9! 9A7,1 DW 6e*n Caen wwwMthiwnural Fax;Railo-oif R818t 5�=c-fi�37I g7't2, $937,22 �a.�y AID-0SCbF��SSS{RD114 4f 4Z4�.�.S�F1_ . 56p i9b1,8 'yi<009,Ri 53.�57,2i S M FFEA C.MIM.W Fu INe.F4b6"3 Vr4Egulpmed lfft SLM.65 9d42.22 4w*ersCOMln@'F{!'{}9ti Rollo of CR414C 63f3T 93-L7.sa 9553. 5tibratal F-6RCcm1rgarLy W3k,33 $,iAw.au t WZ4&Uk 7 7U>S €aunty F1 M1 GM P Budpet $3.Z.21HAH1 County Scope Reduction $151255A411 T4 01 SMYlnp(FQM GMv 6AFdelwt $6.WA41 ORANGE CCANTY .',OVI]I t"AlttJ1.1NA 16 Slide #8 Scope Reduction — Budget Impact Budget Impact of Stop*Reduction Current Budget-ad Amount $16,818.548 Scope Reductlon Budget $15,103,215 Differen-ce - 1,715,333 - County would have sufficient budget to proceed with no budget adjustment - Based on current structure of the current Development Agreement ORANGE COUNTY MOR71[CARDLEWL Travis Myren said that these changes would be a cost savings of about $7 million dollars for the county. He said this would be less than the current budget and would not need a budget amendment. He said that there would be a necessity to revisit the development agreement. Slide #9 Next Steps Manager's Reoornmendation — Review and consider the 203 Projec4 Guaranteed Maximum Price(GMP) Questions and Discussion ORANGE COUNTY NORT][CAROLINA Commissioner Greene asked what the percentage increase is needed to match the budget with the GMP. 17 Bonnie Hammersley said it is a 24% increase from the current budget. Commissioner Fowler asked if the first option Travis Myren proposed eliminated both the Skills Development Center and parking. Travis Myren said that option eliminated both. He said that the difference is whether there is a cast in place parking deck or a pre-cast parking deck. Commissioner Fowler clarified that removing the Skills Development Center would allow for a pre-cast parking deck. Travis Myren said yes, because the deck would be able to be separated from the actual building at that point. Commissioner Fowler clarified that this choice would require an additional 17 months. Travis Myren said yes. Commissioner Fowler said to move forward with this change and see savings, Carrboro would also have to agree to paying a higher percentage of the shared costs. She asked if Staff has an idea of Carrboro's willingness to agree to this change. Travis Myren said the Carrboro Town Manager had proposed freezing Carrboro's amount of construction, but the Town Council has not weighed in on that. Commissioner Fowler clarified that if that happened, the County would not be saving as much money. Travis Myren said that is correct, and the county would still have to add about $2.2 million. Commissioner Fowler clarified that would be a savings of$4.5 million total. Travis Myren said yes. Commissioner McKee asked if the GMP is an absolute price. Travis Myren said yes, unless the owner (the county) asked for a change, or there was an act of God that required additional construction costs. Commissioner McKee asked what happens if the contractor says they have to have more money or they will go bankrupt. John Roberts said the construction contract will have bond provisions and insurance provisions that will cover those circumstances. He said this scenario is unlikely. Commissioner McKee said that as of March of 2021 they were in for 16 million and that what they are debating tonight is the increase in the project costs. Travis Myren said that is correct. Commissioner McKee asked if there was a reason the project was not started in April 2021. Travis Myren said there was no GMP at that point, and it took this long to receive it. Commissioner McKee said the Board approved a budget at that time. Travis Myren said yes, the Board approved a budget of $16.8 million at that time, and now an increase is needed to move the project forward. Commissioner McKee said he understands there was no GMP in April 2021 and asked if the project could have moved forward without that. Travis Myren said if the GMP was set at that time at $16.8 million, construction could have started then. Commissioner McKee said he would have liked to see the project built on land outside of Carrboro, but there was opposition because it was not in town. He said there will still be thousands of people in rural Orange County that will have to access the library by car. He indicated he is not sure if he will vote yes on this tonight because there is a lot about the project he does not like. However, he said he does like the educational component of the library. Chair Price noted that the Skills Development Center will still need to have rental space if not included in the project. She asked about the total savings to the county in light of this. 18 Travis Myren said the 20-year rent cost is $4.6 million and tonight the Board would have to approve $5.4 million increase for the project to move forward as is. Chair Price asked if the county is saving any money in the long run. Travis Myren said over the 20-year period there would be a savings. Commissioner Richards asked what capital projects would be impacted in the 1-5-year period if the Board did not want to raise taxes at all. Travis Myren said he would follow up with information on that. Commissioner Richards asked if there are projects in years 1-5 in the CIP that could be pushed back or eliminated. Travis Myren said he cannot think of any discretionary projects. Bonnie Hammersley said the CIP was scrubbed for the Durham Tech facility, which was not approved, so all of the remaining projects are needed. She said that all of the parks and other discretionary projects were moved out to years 6-10. Commissioner Fowler said to get the CIP back under, the Board took money from lands legacy, so there is not anything left to move. Commissioner McKee asked if there is $4 million in capital reserve that could be used. Bonnie Hammersley said yes. She said that staff is discussing anticipation of inflation increasing in 2023 and using the reserve to address price spikes for other projects. Chair Price asked Bonnie Hammersley if she has heard from President Buxton regarding Durham Tech. Travis Myren said he did. He said that Durham Tech is planning to resubmit a proposal for an expansion to the current facility, rather than a separate facility as proposed previously. Chair Price indicated that Durham Tech is now considering a renovation and expansion of their current facility rather than a separate building because Durham is putting a bond referendum on the ballot to cover a new facility in Durham, which would eliminate the need for a similar building in Orange County. She said the money the county has been trying to find for a second building would be much less if it were just a renovation and expansion. Commissioner Fowler asked if moving forward with the project would be a guaranteed tax increase. Travis Myren said with the current budget approved in April 2021, there was a need to raise taxes, so there will need to be an additional tax increase if the increased project budget is approved. Commissioner Fowler asked if that means in the next year that would be a fifty-cent tax increase. Travis Myren said it is a .15 increase. Chair Price asked if they could use some of the Durham Tech money to cover this. Travis Myren said those funds are budgeted too far out in the CIP for current use. Chair Price invited public commenters to speak. Nerys Levy indicated she is representing the Friends of Carrboro Library. She said that 34 years ago the Friends began their quest for a public library in southern Orange County. She said that in 1995 the Carrboro library was established in the McDougal Schools and that in 2004, the Carrboro Cybrary was established. She said there have been three library task force to examine the state of the county's libraries. She said prior to library opening in Hillsborough, Orange County was 76t" in the state for library provision. She said that with the approval of the library in Hillsborough, Orange County's rank moved to 50t" and has remained. She said that Wake County has 22 libraries and Durham County has 12. She said that the Town of Carrboro will provide land for the library and that is now valued at 1.4 million. She said that libraries promote community and equity. She said that the 203 project is close to Orange Literacy and El 19 Centro Hispano. She said that in 2021, the county closed the McDougal school's library. She said all that remains to serve Carrboro and southwest Orange County is the Cybrary. She said that any redesign will cause delay and higher cost to the project. She said that it would deny another generation of students that live in low-income housing in Carrboro access to a library. She said that there is no off ramp for this project. She said that the library is the highest benefit to its people. She urged the commissioners to vote to approve the GMP. Lydia Lavelle addressed the Board. She asked the Board to please stay with this project as partners with Carrboro. She said that none of us could have anticipated the financial cost related to COVID 19 and supply chain issues. She said that many boards in the past have also worked on this project. She said that this project is so important to the Town of Carrboro that it is offering almost as much money as the county and is donating land. She said that construction costs are not expected to decline soon, so redesign would ultimately cost more money. She said that the federal ARPA and CARES money has allowed the County to give money to other county departments and those departmental unused general funds could be allocated for the project. She said if the Board were to pull from the project, she fears it will never be funded. She said they have been able to fund the Orange County Detention Center and the Durham Tech building. She said that it is sited where it is to be near so many services and public transit. She said the parking deck will allow for more economic impact. She urged the commissioners to stay the course and approve the project. Kathy Kaufman said she has been a rural southwest Orange County resident since 1995. She said the Board should lock in the GMP for the 203 project. She said a library downtown would have been immeasurable for her own children during their school years. She said there are many students in Carrboro who cannot access the Chapel Hill library but would benefit from the 203 Project. She said that the other organizations housed in the building will be beneficial to the economy. She said that this project is 30 years in the making and should not be delayed. She said that a delay will be less project for more cost. She said that the investment will pay back into the future. Cameron Binkie thanked the Board for their attention. He said he is a resident of Carrboro and asks the Board to move forward with the library project. He said the Board has the challenge to decide what they will allocate money to. He said everyone can benefit from a library and is free to everyone in the community regardless of background. He said that a library will bring more people downtown. Ree Ree Wei said she is the executive director of a nonprofit called Transplanting Traditions Community Farm. She said she is from Chapel Hill. She said her community is dependent on the library in many ways and serves as a community space. She said that the Carrboro (CH) Public Library was the first library she attended that had books in her language. She said the library was a space for her to learn and expand her knowledge. She said the location of the library will be accessible for her community members. Tom McQuiston said 15 years ago, his son died of a drug overdose while he was a student at East Chapel Hill High School when he was 18 years old. He said that they took their grief and made the Reintegration Support Network and a Youth Center. He said the youth center that is proposed to be part of this project is the result of some of this work. He said that Bob Seymour fought for the Senior Center and now it is an important symbol of the type of Community here in Orange County. He said that there was a report from the US Surgeon General that there is an unprecedented need for mental health support in teens right now. He encouraged the Board to do whatever necessary to move forward with the 203 Project with a youth center there. 20 Commissioner Fowler asked if the Board goes forward with the current increased price, how that will impact the timeline to fund capital needs of schools and the Crisis Diversion Facility. Travis Myren said the CIP that is being worked on now, includes additional funds for school repairs and there will be capacity for a $120 million bond in 2027. He said the Crisis Diversion Facility is an unknown and not currently in the CIP. He said the county also needs to reckon with the replacement of the recreation center that also is not in the CIP. Commissioner Fowler asked if that is repairs for the recreation center. Travis Myren said the needs are not known right now, but significant work will be needed in the next 10 years. Commissioner Fowler asked for additional info on $4 million capital reserve. Travis Myren said there was a fiscal year end surplus last year and the Board approved allocating some of it for capital reserve, as well as some for COVID-related expenditures that may not be reimbursed by FEMA. He said the Board could allocate the money to this project through a budget amendment and finance the remainder. Commissioner Fowler asked if taxes still have to be raised even if the capital reserve money is used. Travis Myren said taxes are already increasing for the current project budget, and if the $4 million in capital reserve is used, less money would be needed, and thus less of an additional tax raise. He clarified that taxes would still have to be raised by some amount regardless. Commissioner Fowler asked if that means other projects would not be addressed until after 2027 or beyond. Travis Myren said yes, if the Board wants to maintain the tax rate. Commissioner McKee asked if there is an option to get out of the Skills Development Center lease and what the cost would be. Travis Myren said the first term is up either this year or next year. Commissioner McKee clarified that if the county did not extend the lease, then there would be no cost. Travis Myren said correct. He said he ran the numbers, and over a 20-year term, the cost would be $6.4 million in Skills Development Center rent at Europa Center, compared to the principle interest of $8.2 million. Commissioner McKee asked how many years the terms of the lease are. Travis Myren said he is not sure. Commissioner McKee said his concern is that the project will not be ready before the county would have to renew for a new lease term. Travis Myren said the county can negotiate an extension based on the progress of the project. Commissioner McKee clarified and said that the Board is not locked into renewing for 5 or 10 years and that the Board could negotiate different terms. Travis Myren said that yes those are voluntary. Commissioner McKee said the Board gives around $568,000 a year to the Chapel Hill Library and asked how the Library Task Force is going. He asked about where those discussions are now. Travis Myren said the first meeting has taken place and the next one is scheduled for April. Commissioner McKee clarification that there will be ongoing expenses to the library of half a million dollars, in addition to the cost of construction, for staffing and maintenance of the library. He said this could open a conversation on renegotiating the amount given to Chapel Hill 21 Library. He said that he wants to mention again that this is an ongoing expense outside of construction. Commissioner Bedford said she looked at the CIP to try to find projects, but there is not flexibility in it without additional debt capacity. She asked what the current cost is per parking spot. Travis Myren said $48,000 per spot. Commissioner Bedford said she supported the parking deck a year ago when it was not this much. She recalled that Commissioner Fowler tried to get the Board to decrease parking at that point and she wishes she had listened. She said she cannot justify $48,000 per parking spot when there are so many other critical county needs, including supporting RENA and affordable housing. She noted that every year since she has been a commissioner, the Orange County Partnership to End Homelessness asks the Board for less than $2 million to address community needs, and additional money has not been budgeted. She said that they were able to receive COVID federal funds and those were used to start the street outreach team. She said that team has been very successful but that because the federal funds were a one-time allocation, those positions will expire on June 301h. She said that when they go over in Capital and don't raise taxes, the debt services have to be reduced at operating. She said that at the county level, the Link Building was condemned because of mold and still needs to be taken down. She noted that CARES money has all be spent and ARPA money will be used for broadband. She said that the behavioral health crisis center needs the service now. She said there is $50,000 for sustainability projects in the capital budget — but for climate that is not very much. She said the money that is already spent is sunk costs and that is not how to make a decision going forward. She said she does not see the capital reserve covering the costs. She said that she does not see the parking spots rising to the need to spend $48,000 per spot. She said this is a wonderful project, but the county has greater needs. She said they did not give employees raises two years ago. She said that they did not do a raise in the per-pupil spending. She said that the children have gorgeous libraries at school, so they do have those books to take home during the day. She said she won't be supporting this project at this point but thinks the county can still work with Carrboro to get additional library services there. She said she does not believe the building is doable at this point. Commissioner Hamilton said it is hard being a commissioner and to weigh all of the needs of the county. She said she thinks about those who are most vulnerable in the county, and there are a lot of residents who fit that. She said she has been passionate about the capital needs of schools, and there are old schools that are not safe anymore—it is more than just school repairs. She said the schools that have the open campuses, like Estes Hills, were once wonderful, but now are no longer safe. She said it would take millions of dollars to address these issues. She said children are on the list of the most vulnerable. She said that if the school environment that helps them learn then that impact will roll on for years. She said that the community has failed many children because they have not addressed the capital needs. She said now that schools are not expanding, it is the time for the community to commit to spending money on decent schools. She said that cannot be done without millions of dollars and making tough choices. She said another important potential project is the Crisis Diversion Facility for residents who are experiencing mental health crises. She said this will keep people out of jail and it will keep those who are suicidal out of emergency rooms. She said this is a need that the county does not have in the CIP and will be millions of dollars. She said that they need to make hard choices. She mentioned the current events in Ukraine and the unknowns. She asked how that will impact the future and citizens will have the ability to pay for taxes if the county needs to raise the. She said that as an economist, one of the first things they teach them is about sunk costs. She said in behavioral economics there is discussion on how people want to continue to follow through on projects because of the invested time, money, and energy without regard to 22 whether the current costs outweigh the current benefits. She said she is looking at now and the economic environment going forward to determine where the dollars are going to be best spent. She said that she feels it would be spending for the most vulnerable and that she does not feel that the library is in that category. She said the uncertainty in inflation and higher costs also makes this project hard to do. Commissioner Greene noted that Carrboro is discussing this matter tonight as well. She said that before the meeting she learned from the mayor that there will be six votes for the project to continue and one vote against it, with the one against being the same person that has historically voted against it. She said that Carrboro is the county's partner and has been from the beginning. She said there is such thing as good faith and reliance on a partner. She said this is a joint project that has been looked at favorably from previous commissioners. She said there has been a lot of time, energy, money, effort that has gone into this project so far for so many good reasons. She said that if they turn their backs on the project, they would be failing so many. She said that from a preservation perspective, there is the concept of embodied energy. She said that is when you do not want to tear down and old building because of all of the energy already spend building it. She said that while there is not a building at the project yet but plenty of energy and money that has gone into it. She said if it were not for the cost increase, the Board would be moving ahead and would already be spending $16.8 million for this project. She argued that an increase of $5.4 million is not the whole cost of the library. She said the commissioners will not all agree with where the money should go if not toward this project. She said that a public library is as important as schools and a behavioral health center. She said that because the Board believes in investing in early childhood. She said all speakers have told the commissioners of all the other benefits—social safety net benefits—that the county is charged with providing, that will be brought to the community with the approval of the library. She said that providing a place to gather for the youth will prevent them from future needs of behavioral health or crisis intervention. She said this will not be just a resource for the middle class in Carrboro to use. She said there are over 20,000 people in Carrboro that are not being served by a library. She said they have funded the Family Success Alliance because they invest in early childhood and families. She said she cannot advocate for this project strongly enough. She said she would propose allocating $3 million in capital reserve fund to this project and finance the rest. She said this is not a project the county should turn its back on and if that happens, it is bad business for partnership with Carrboro or any other municipality. She said that in regard to the Chapel Hill library, ever sense the project of the southwestern project came up, that over time it would make sense for the county's contribution to go down over time. She noted that libraries also provide internet access for people who do not have it another way. She said many people do not have internet access and there should be public access to computers in this part of town. She said she is passionately in favor of moving forward with this project. Chair Price said Commissioner Greene said many of the things she was going to say. She said a library is more of a place of books—it is a resource; it is for adults and people who don't have resources at home in addition to children. She said it is important for students to gather and study together. She said that schools close and people need a place to go in evenings and weekends. She said libraries were important to the Civil Rights Movement in the south. She said it is a place where differences can be equalized, because it is a place of coming together. She said libraries provide a venue for tutoring and other support services. She said that the Crisis Diversion Center is currently a concept and there is no guarantee that will be built anytime soon, just because this library is not built. She said the people in Northside, Southwest, the rural area, the refugee communities will be able to access the library and facilities. She said this collaboration with Carrboro speaks to One Orange—human development in addition to community development. She said that $5 million is a lot of money 23 but would hate to see it go by the wayside after all of the effort put into it. She said that she is in 100% support of this project. Commissioner McKee asked if there are plans to guarantee parking spaces remain available for library patrons. Bonnie Hammersley said there will be signage with time limits but there is not a way to enforce. Commissioner McKee said the motion in March of 2021 included reduction of construction contingencies and window glazing to 36%, removal of the justice center and a generator and to delay conservation easements. He asked if these have been incorporated. Travis Myren said yes. Commissioner McKee said he doesn't like the location of the project but can overlook that. He said he is supportive of the building but is not supportive of shelling out and scope reductions. He said at this point the Board should approve it or walk away from it, and he does not want the latter. He said the library is a component of education. He said that he does not buy the economic development or the cost per person arguments, or that the county is required to build libraries. He said it has been looked at long enough and it is not going to get any cheaper. He said that they need to move forward with it. A motion was made by Commissioner Greene, seconded by Commissioner McKee, to proceed with the project as proposed using $3 million cash and that the other $1 million be financed. Commissioner Bedford asked if the $3 million available or if it will have to be financed. Bonnie Hammersley said it is available in the reserve. Commissioner Richards asked if that happens, what impact would that have to the tax increase. Bonnie Hammersley said there is some increase needed for what is already approved. She said that the additional proposed increase would decrease additional increase by more than half. She said that using the cash would make the increase minuscule. Commissioner Fowler noted it would also reduce planned increases in future years. She said this has been a difficult decision because everything about it sounds great except for price of parking. She said that the GMP is not guaranteed from her experience with previous projects. Bonnie Hammersley said she has dealt with GMPs before and from the county side there will be no increase to cost. Commissioner Fowler said her past experience with the school board they were very good at finding Acts of God to increase the GMP. She said that everything about the project feels useful, but school needs are not imagined and are the county's obligation. She said she agrees with the statements made by colleagues about who will be served by library. Chair Price said some of the parking will be used for the Town of Carrboro. Commissioner Greene said the Board has the Manager's word that the GMP will be what the GMP is, and this board is a different board. Commissioner Bedford said with this project, more affordable housing, especially PSH gap will not be met. Chair Price said there are many needs and there is not guarantee which projects will be affordable or not. Commissioner Greene said she has worked as hard on ending homelessness as anyone has, but there are other sources for money for housing. She said it feels wrong to pit that need against the library. She said that not moving forward seems like a colossal breach of faith. 24 VOTE: UNANIMOUS Ayes (Commissioners Richards, Fowler, Greene, Price, and McKee) Nays (Commissioners Bedford and Hamilton) Commissioner McKee left the meeting at 9:06 pm. b. Recommendations for Employee Health Insurance and Dental Insurance The Board considered approving the Manager's recommendations regarding employee health and dental insurance effective July 1, 2022 through June 30, 2023. BACKGROUND: The County provides employees with a comprehensive benefits plan that includes participation in robust health and dental insurance plans for employees and their families. Each year, the Board of Commissioners is asked to review and approve health and dental insurance rates in advance of the annual budget so that open enrollment can be completed prior to the beginning of the plan year which starts on July 1. Health Insurance Since the Board of County Commissioners approved Orange County's participation in the North Carolina Health Insurance Pool in FY 2018-19, the County has maintained the same monthly premium equivalent rates for health insurance and dental coverage for employees and pre- sixty-five retirees based on stable claims experience. Funding for the health plan is based on estimated premium equivalents rates that are necessary to pay for incurred claims, administrative costs and expected liability of claims incurred but not yet reported (IBNR). The plan also carries a reserve balance which ensures the County's ability to pay claims. A reserve policy or the fund ratio target should range between 1.5 and 3.0 over IBNR to ensure the ability to pay for future claims based on current claims experience which currently have been higher than expected. The current fund ratio is 1.9 through January 2022. In FY2022-23, that reserve amount is recommended to be 2 to 2.5X of expected IBNR liability. In the current fiscal year, the Health Insurance plan experienced an increase in the overall number of claims, higher costs per claim, and two very high-cost claims. Although the plan is projected to have a positive year-end balance of $1,380,254, additional funding is necessary to cover projected total plan costs for FY 2022-23 and to build reserve levels for future sustainability of rates. The actuarial analysis conducted by the North Carolina Health Insurance Pool is recommending an increase of five percent (5%). The Manager recommends that the County assumes 100% of the recommended 5% increase and that the employee contribution continues at current rates. This represents a total budget increase of $626,813. 25 FY 2020-21 through FY 2021-22 Health Insurance Rates Year Rates Monthly Annual Cost Employee Employer Cost Contribution Contribution 2021 Current Rates $1,048,610 $12,583,316 $1,637,930 $10,945,390 2022 Renewal Rates $1,100,844 $13,210,129 $1,719,517 $11,490,611 Current Rates with Employer 2022 Increase Only(Renewal) $1,100,844 $13,210,129 $1,637,930 $11,572,198 Net Increase $52,234 $626,813 Dental Insurance Delta Dental is the County's Dental provider and the County will continue to provide coverage with Delta Dental. The Board of County Commissioners approved an increase of funding totaling $92,236 (County contribution of $73,286) for the FY2021-22 Dental Fund. The total Dental budget is currently $639,000 and no increase is recommended for FY2022-23. Brenda Bartholomew, Human Resources Director, reviewed the background information for the item, and gave the following PowerPoint presentation: Slide #1 ORANGE COUNTY NORTH CA1LINA Action Item 6-b Recommendations for Employee Health Insurance and Dental Insurance effective July 1, 2022 through June 00, 2023 March 15, 2022 26 Slide #2 Background • Joined North Carolina Health I nsu ra nce Pool (NCHIP) - July 1,2018 by DOM approval rk C',00nty has maintained monthly premium `°:o.`ne" equivalent rates for health insurance - �•<WmF - stable claims experience .[awr wars C.A.I L7 - high reserve in transition year Forthe FY 202MO21 and FY 2 02 1 12 022 plan -40 years, maintained budget of$13.3 million Dental insurance is provided by Delta Dental - total Dental budget is currently S635,000 1 ORANGE COUNTY NOR T3 I CAROLINA Brenda Bartholomew said the monthly premium has been maintained by county since 2015 and not passed onto to employees. Slide #3 Budget Summary • Allhaugh the plan is projected to have a positive year-end reserve balance of $1.-W.254. - addilional funding isriecessary tulle mserve levels for future sustainablldy of rales to coverproiecled total plan costs for FY M2r2W5 - increase in the overall number of claims - hlgher costa per claim - high Humber of high claims - two very high cost ciaims • The current fund ratio is i 9X Through )actuary 2022 - chart shows through Decemter 2021:this is within the ratio to cover expected {IBNR); our target is 2,5X Ending YTD F+`22 Told Bake Esiimaled Reserve Reserve 13 lance FY2+ IBNR Needs Rasa S1,957,T7T 4694,7W S1,272,997 S714,947 S559,950 .1.9 31,785.118 S714.W7 S1,071,071 2.5 $512.121 3512.121 ORANGE COUNTY NOFM r CAROLINA Brenda Bartholomew said that there have been high claims and an increase in overall claims this past year. She said the target for reserve ratio is 2.5 and it has fallen behind. 27 Slide #4 Budget Comparison Orange County sign }Iw, Aida!: 51 RE SiM SIB �p t'4a Sl�pl I 1109 11'a SW Simi i1 Cz —SipLs3[e1J �6' 11911 rml QM 12 PW ORANGE COUNTY NOR f3[CAROLINA Brenda Bartholomew said that this shows from July 2021 to December 2021 actual versus budget and three months exceeded the budget. Slide #5 Budget Summary (continued) • Recommending an increase of five percent (5%) to oover e>pected costs for FY 2022/202 Equates to a budget increase of $ 26.813 for health insurance FY 20204lth wgh FUMI-22 Health lnsuan€e Races Y11M' NaM MMthlYE09 AMUMICM EM EroP"w Cw1W dwri [alitribLodw 2021 Currentbtes $1,OAR.610 $1'2-A�336 51.637.930 $10—W—m 2022 ReEwalRaks $1.104044 $13210,129 $1.719.517 sivmui Current Rates Stith Ernp"r 27022 $100.W $13.21CO24 $I.W.93D $11 T#19eS NrFIItMWSI $52,234 $hWX3 ORANGE COUNTY NOFM t CAROLINA Brenda Bartholomew said that this would be a county cost only and keep the employee rates the same. 28 Slide #6 Manager Recommendation • approve an increase of 5% to the Health Insurance Premium Equivalents for both active and pre- 5 retirees with the amount of the increase to be fully paid by the Counter; • approve moving forward with Dental Insurance as outlined above (no changes); and • approve the County continuing to participate as a member in the North Carolina Health Insurance Pool (N HIP). ORANGE COUNTY h]C)R7]I CARGLINA Slide #7 QUESTIONS ORANGE COUNTY h30R7]I CAROLINA A motion was made by Commissioner Fowler, seconded by Commissioner Greene, to approve an increase of 5% to the Health Insurance Premium Equivalents for both active and pre-65 retirees with the amount of the increase to be fully paid by the County; approve moving 29 forward with Dental Insurance as outlined above (no changes); and approve the County continuing to participate as a member in the North Carolina Health Insurance Pool (NCHIP). VOTE: UNANIMOUS 7. Reports None. 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 Bedford, seconded by Commissioner Hamilton, to approve the consent agenda. VOTE: UNANIMOUS a. Minutes The Board approved minutes from the February 8, 2022 Virtual Work Session and February 17, 2022 Virtual Business Meeting. b. Change in BOCC Meeting Schedule for 2022 The Board amended its meeting calendar for 2022 and rescheduled the May 17, 2022 BOCC Business Meeting to May 24, 2022 at 7:00 pm. c. Schools Adequate Public Facilities Ordinance (SAPFO) — Receipt and Transmittal of 2022 Annual Technical Advisory Committee Report The Board received the 2022 Annual Report of the SAPFO Technical Advisory Committee (SAPFOTAC) and transmitted it to the SAPFO partners for comments before certification in May. d. Approval of a Resolution Authorizing an Increase in the Micro-Purchase Threshold from $10,000 to $30,000 The Board approved a resolution increasing the micro-purchase threshold from $10,000 to $30,000 for County expenditures incurred with Federal Grant funds and authorized an amendment to the County's Purchasing Policy to reflect the increased thresholds. e. Changes to the Orange County Broadband Task Force The Board approved a change to the number of positions composing the Orange County Broadband Task Force. f. Lake Orange Erosion Control Barrier Replacement Protect — Award of Construction Contract Amendment#1 (Amendment over $250,000) The Board awarded a construction contract amendment (over $250,000) for the construction of ALT-1 scope as defined within the Lake Orange Erosion Control Barrier Replacement Project. g. Fiscal Year 2021-22 Budget Amendment#9 The Board approved a budget amendment for Fiscal Year 2021-22. 9. County Manager's Report Bonnie Hammersley said that the county's new northern campus including the jail and Bonnie B. Davis Facility was the third GMP in her career. She said all of those projects have come in under budget on a GMP. She said she and the Deputy Manager review all change orders, so unless there is an act of God, she will not allow the price to increase. 30 Bonnie Hammersley reminded the board about their next business meeting on April 5, 2022 and announced that Travis Myren will be presenting the CIP on that date. Commissioner Greene asked about status of meeting at the Southern Human Services Center. Chair Price said that it was decided at Chair/Vice-Chair Agenda review that the Board will only meet at the Whitted Human Services Center until June. Chair Price reminded the Board that the Legislative Breakfast will be Monday morning at 8:30 AM. Laura Jensen said she was in a meeting with Asset Management Services today about HVAC work at the Southern Human Services Center, which may affect the timeline of returning to that building. She said staff would provide more updates as they became available. Commissioner Bedford said they were hoping they could have people come in to the Southern Human Services Center for budget input. Bonnie Hammersley said there are other conference rooms at the center that can be used for this. 10. County Attorney's Report John Roberts had no report. 11. *Appointments None. 12. Information Items • March 1, 2022 BOCC Meeting Follow-up Actions List • Memorandum — Library Services Task Force Update • Memorandum — Update - Groundwater Observation Well Network 13. Closed Session None. 14. Adjournment A motion was made by Commissioner Bedford and seconded by Commissioner Greene to adjourn the meeting at 9:19 p.m. VOTE: UNANMIOUS Renee Price, Chair Tara May Deputy Clerk to the Board Submitted for approval by Laura Jensen, Clerk to the Board.