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HomeMy WebLinkAboutMinutes 05-24-2022 Business Meeting 1 APPROVED 9/6/22 MINUTES ORANGE COUNTY BOARD OF COMMISSIONERS BUSINESS MEETING May 24, 2022 7:00 p.m. The Orange County Board of Commissioners met for a Business Meeting on Tuesday, May 24, 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, Sally Greene, Jean Hamilton, Earl McKee (arrived at 7:02 p.m.), and Anna Richards COUNTY COMMISSIONERS ABSENT: COUNTY ATTORNEYS PRESENT: John Roberts COUNTY STAFF PRESENT: County Manager Bonnie Hammersley, Deputy County Manager Travis Myren, and Clerk to the Board Laura Jensen. (All other staff members will be identified appropriately below) Chair Price called the meeting to order at 7:00 p.m. All commissioners were present except for Commissioners McKee and Bedford. Chair Price referenced recent gun violence in Buffalo, NY and Uvalde, TX, and encouraged the Board to remember these issues and think about how they can make the world a better place. Commissioner McKee arrived at 7:02 p.m. 1. Additions or Changes to the Agenda Chair Price proposed adding a Resolution Supporting Enactment of the Leandro Plan as item 4-a on the agenda. A motion was made by Commissioner Greene, seconded by Commissioner Fowler, to add the resolution as item 4-a on the agenda. VOTE: UNANIMOUS Chair Price dispensed with reading the public charge. 2. Public Comments (Limited to One Hour) a. Matters not on the Printed Agenda None. 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 had no comments. 2 Commissioner Hamilton said she attended the Town and Gown baseball game. She said she met and spoke with the UNC Chancellor about the concerns about the schools and mental health. She said that she wants to petition the Board to hold small group meetings with school board members 1-2 times a year. She said this would be in addition to the joint meetings with the school boards. She said they could use these meetings to talk about issues in the budget. She said that her aim is to facilitate a process and small groups allow a better understanding of what is going on with the school's budget, a chance to ask in-depth questions, for relationship building, among many other things. She said that she recommends 2-3 commissioners and 2-3 members of the school board, and appropriate staff. She said that the spirit behind this is to improve collaboration. Commissioner McKee said he seconded Commissioner Hamilton's petition. Commissioner Greene thanked James Williams for organizing the 75t" anniversary for the fellowship for reconciliation. She said there were powerful performances. Commissioner Fowler said she went to the welcome center grand opening with Commissioners Bedford, Richards, and Greene. She said that she went on a hike at the Moorefields and saw the easement from Seven Mile Creek. She said folks should go check it out. Commissioner Richards noted that the following day was the second anniversary of George Floyd's murder. She said these things are related along with what happened in the county 75 years ago and still echoing through society now. She said she has been trying to collect herself around that and the imagery is still very vivid for her. She said that for everyone who cares about their communities and wants things to be better, there is a lot of work to do. Chair Price said that she and the mayors presented a proclamation naming June 1, 2022 as Representative Verla Insko day in Orange County. She said that she is set to retire on May 31st after decades of service to the people of Orange County. She said that two buildings on UNC's campus have been renamed appropriately. She said one is named after Henry Owl, the first Native American to attend the university, and Hortense McClinton, the first female African American faculty member. She said that the next day at 103 years old, Ms. McClinton walked to the microphone and addressed everyone at the recognition dinner. She said she really impressed everyone. She said that she will soon be 104 and that she is a true trailblazer and an amazing person. 4. Proclamations/ Resolutions/ Special Presentations This item was added at the beginning of the meeting. a. Resolution Supporting Enactment of the Leandro Plan The Board considered a draft resolution expressing support for enactment of the Leandro Plan. BACKGROUND: Both the North Carolina State Constitution and North Carolina General Statutes place the responsibility to fund a public school system that provides every child in the state with access to a sound basic education with the State of North Carolina, both the executive and legislative branches. On March 15, 2021, the State of North Carolina submitted a long-term comprehensive remedial plan (the "Leandro Plan") detailing specific steps State leaders must enact to remedy the ongoing constitutional violations in the State's public school system and ensure that all students have access to the education they are owed under the State Constitution On June 7, 2021, Judge W. David Lee ordered the state to implement the Leandro Plan "in full and in accordance with the timelines set forth therein". Judge Michael Robinson subsequently 3 concluded that the State budget adopted in 2021 underfunded the comprehensive remedial plan (CRP) for Leandro by approximately$785 million. The attached resolution proposes that Orange County join with multiple North Carolina school boards, other North Carolina governmental units and other entities across the state requesting that the North Carolina General Assembly fully enact the policy and funding reforms included in the Leandro Plan to ensure that all North Carolina students have access to a sound basic education by the 2028 school year ORANGE COUNTY BOARD OF COUNTY COMMISSIONERS RESOLUTION URGING THE STATE TO FULFILL ITS CONSTITUTIONAL DUTY TO PROVIDE EVERY CHILD ACCESS TO A SOUND BASIC EDUCATION WHEREAS, for more than 25 years, North Carolina lawmakers from both parties have failed to meet their constitutional obligation to provide all children in the state with a sound basic education; and WHEREAS, far too many students, particularly students of color, students from economically- disadvantaged families, students with disabilities, English learners, and rural students, have been denied the opportunities promised to them under the North Carolina Constitution; and WHEREAS, the North Carolina State Constitution and North Carolina General Statutes place the responsibility to fund a public school system that provides every child in the state with access to a sound basic education with the State of North Carolina, both the executive and legislative branches; and WHEREAS, on March 15, 2021, the State submitted to the court a long-term comprehensive remedial plan ("Leandro Plan") detailing specific steps State leaders must enact to remedy the ongoing constitutional violations in our public school system and ensure that all students have access to the education they are owed under the State Constitution; and WHEREAS Governor Roy Cooper's Budget Recommendations for 2021-23 demonstrated that the Leandro Plan could be fully implemented within then-existing State resources; and WHEREAS, on June 7, 2021, Judge W. David Lee ordered the state to implement the Leandro Plan "in full and in accordance with the timelines set forth therein"; and WHEREAS, Judge Michael Robinson has found that the state budget passed in 2021 underfunds the comprehensive remedial plan (CRP) for Leandro by approximately $785 million; and WHEREAS, receiving a quality education is paramount to catalyzing the full growth and self- actualization of students, families, as well as being critical for workforce development and the economic prosperity of our communities and our State as a whole; NOW THEREFORE, BE IT RESOLVED that the Orange County Board of County Commissioners stands with the Orange County Schools Board of Education and the Chapel Hill Carrboro City Schools Board of Education and requests that the North Carolina General Assembly fully enact the policy and funding reforms included in the Leandro Plan to ensure that all North Carolina students have access to a sound basic education by the 2028 school year. Adopted this 24th day of May, 2022. 4 Renee Price, Chair Orange County Board of Commissioners Chair Price introduced the item. She said she received an email from Spring Dawson- McClure about support for the Leandro Plan. She said it was also on the Every Child NC website and she noticed that Orange County had not signed on to support the plan. She said this resolution is to show support for full funding of the Leandro Plan. Commissioner Hamilton said that in the fifth "Whereas..." clause in the resolution, she asked for clarification of the Governor's recommended budget time period. She said it was described as 2021-2023 in the resolution, but she wondered if it should be 2021-2022. Chair Price said the language was in the resolution that the two school boards passed and is accurate. She said that the Governor made recommendations for a biannual budget. John Roberts, County Attorney, said that earlier in the day, House Bill 1032 was filed, and it would appropriate $784 million to implement the Leandro Plan. He said it could be included in the resolution if the Board wished. He said Representative Verla Insko was one of the sponsors. Chair Price said she supported adding the language. She suggested adding the following language at the end of the resolution, prior to "Now therefore, be it resolved...:" "Whereas, Representative Verla Insko filed House Bill 1032, which would appropriate $784 million in non-recurring funds for fiscal year 2022-2023 to carry out the requirements of the Leandro Plan;" Commissioner Greene asked that the following language be added to the resolution: "Whereas, Orange County is grateful to Representative Verla Insko and others for sponsoring House Bill 1032;" A motion was made by Commissioner Fowler, seconded by Commissioner Hamilton, to approve the resolution with the amended language as discussed. VOTE: UNANIMOUS Chair Price said that the resolution would be sent to the school boards and to Every Child NC. 5. Public Hearings a. Public Hearing Regarding Proposed Lease Agreement and Economic Development Incentive Agreement for Well Dot, Inc. The Board: 1) Received and held a public hearing on the proposed lease agreement and issuance of a "performance-based" economic development incentive by the County to a private company; and 2) Considered adopting a resolution authorizing approval of the proposed lease agreement and economic incentive agreement, with claw-back provisions, for the expansion of Well Dot, Inc.'s health care IT operations in Orange County, NC. BACKGROUND: Local and state governments in North Carolina have the goal to promote economic development by encouraging the location of new businesses and the expansion of existing businesses. This activity serves to diversify the local tax base, increase employment opportunities and introduce desired job skills and related benefits to a community, and for the 5 benefit of its residents. The Local Government Act, North Carolina General Statute (NCGS) 158-7.1, outlines the requirements of public hearings, and NCGS 158-7.1(a) specifically addresses the requirement that economic development appropriations "must be determined by the governing body of the city or county to increase the population, taxable property, agriculture industries, employment, industrial output, or business prospects of the city or county" This public hearing has been scheduled in compliance. Well Dot, Inc. is an early-stage healthcare technology and services company that incorporated in January 2019. The company provides technology-enabled healthcare solutions to consumers via employers through a platform that enables consumers to navigate their health and wellness needs. Well Dot's current client portfolio includes firms such as the Bank of America, LabCorp, Extended Stay Hotels, FEDEX and Walmart. During the second quarter of 2019, Well Dot approached the Town of Chapel Hill and Orange County and expressed a desire to expand operations in either Chapel Hill, NC or Boston, MA, where the company also has an existing presence. On November 19, 2019, North Carolina Governor Roy Cooper, joined by company representatives and local, county and state elected officials, announced the location of a new operations center in Chapel Hill. The Chapel Hill center will serve as the primary center for clinical and health experts, while also housing software developers, data analysts and corporate personnel. The North Carolina Department of Commerce committed $3,394,500 over 12 years through a performance-based agreement with the Job Development Invest Grant (JDIG) program. Over the course of the 12-year term of that grant, the project is estimated to grow the state's economy by $609 million. The North Carolina Community College System also committed to supporting the company with $480,000 in value through its Customized Training Program. The Company will create at least 360 new full time jobs, at an annual rate of $63,665 plus benefits. Well Dot's salary average is higher than the 2022 Orange County average private sector wage of $59,026 per year. Other economic benefit multipliers to the County include additional daytime workers in downtown Chapel Hill, and enhanced job skills for those employees through customized training to be provided by the Orange County campus of Durham Technical Community College in Hillsborough. Also, construction employment for the facility upfit and remodeling will create additional skilled trade jobs. On March 4, 2020 the Chapel Hill Town Council approved a performance based incentive agreement with a maximum investment of $900,000, with $450,000 tied to job creation and $450,000 in parking credits, payable over 8 years. The town's incentive program will be awarded based on the company meeting specific targets for new jobs. Well Dot has an existing office location in Orange County at 419 W. Franklin St., Chapel Hill, highlighted in red on the map below, which will accommodate up to eighty-five initial employees in senior management. To house an additional 300+ jobs Well Dot plans to hire through 2025, a second location is envisioned nearby in downtown Chapel Hill. Therefore, the Company has identified the County's former Visitors Bureau building and the adjacent space previously occupied by the Skills Development Center as its desired and ideal location. These properties, highlighted in purple on the map below, are located at: • 501 W. Franklin Street, Chapel Hill, NC 27517 (PIN) 9788151996 • 503 W. Franklin Street, Chapel Hill, NC 27517 (PIN) 9788151829 108 S. Roberson Street, Chapel Hill, NC 27517 (PIN) 9788152822 6 .! t� x~ ' X&E On January 21, 2020 the Board of County Commissioners (BOCC) approved the relocation of both the Skills Development Center and Visitors Bureau from the existing Franklin Street location. In March 2020, the Skills Development Center moved its operations to the Europa Center in Chapel Hill. The BOCC has since approved locating the Skills Development Center into the 203 South Greensboro, Carrboro facility when it is completed. The Visitors Bureau has also relocated its operations to 308 West Franklin Street in Chapel Hill. For these reasons the properties to be leased are not needed for Orange County operations during the term of the Lease. Steve Brantley, Director of Economic Development, introduced the item and made the following presentation: Slide #1 ORANGE COUNTY NORTH CAROLINA Well Dot, Inc. Leese Agreement & Economic Development Incentive BOCC Public Hearing May 24, 2022 Slide #2 Company History and Announcement 0 well Well Dot, Inc. isan early-stage healthcare technology and services company that was incorporated in January 201 g_ The company provides technology-enabled healthcare solution ato con surners via employers th roug h a platform that enables consumers to navigate theirhealth and wellness needs, On November 19, 2 019, Governor Roy Cooper,joined by company representa lives and local, county and state elecled otfiicials, announced the location of a new operations center in Chapel Hill_ ORANGE COUNTY 2 Nlt-)F r]I CAROLINA Slide #3 .Job Creation The Company will create at least 360 new full lime jobs, at an annual rate of$63,665.00 plus benefits. New Full Time Jobs by Year 8 8s 91 85 as 300 Job TypestExamples: Corporate Operations o Executive o Member SerAce Operator}Supervisor •Account Management o Clinical& Nurse Operator/8uperviscr o Software Engineer/Developer o Pharmacy Specialist • Data Scientist o Behavioral Health Specialist o BusinessAnalyst o Operations Director •Administrative Support ORANGE COUNTY 3 NOWrl I CAROLINA Steve Brantley said that one of the benefits of the agreement is having so many well- paying jobs in downtown Chapel Hill. 8 Slide #4 Chapel Hill Office Location A k A� * 419 W.Franklin St.—Existing Well Dot office location highlighted in Red * 501 &503 VV.Franklin Street and 108 S. Roberson Street- Proposed additional location highlighted in Fl-wrplp ORANGE COUNTY NOV11 L(-.A]?A)J.LNA Slide #5 Lease Agreement Initial ten yearleaseterm with option for two additionalfive year terms. -P Well Dot. Inc..will pay Orange County an initial deposit of $2 50,000.00 and then $4-04,576.04 in rent payments annually for the first six years. • Rent will adjust to the market rate in year seven of the lease and begin a 2% annual increase in year eight. • On any lease anniversary date during the initial term Wel I Dot, I no-, may exercise an option to purchase the property- ORANGE COUNTY 5 N3OFM I CAROLINA 9 Slide #6 Lease Agreement ® * Based on current commercial rates,the 0$25o,00aIniWDeQoM market rent would total approximately 0 $404.57r, $850,000annually. © $404,576 © $404,576 + If the company continues to rent the facility for 0 W4,576 the full ten years,the Coo ntywill have © $404.576 collected approx_ $6.2 million in lease 0 $404,576 revenue. Market Rent 0 2%Incaase If the company exercises the option to 0 2%1-coas. purchase,they will pay approx. $85,0W m 2%1, a** annually in property taxes ORANGE COUNTY a ?40 TI r CAROLINA Slide #7 Performance Agreement * Total financial impact not to exceed $2,000.000 payable in up to four installments equaling the actual eligible expenditures then inourred by the Company over a period of two years from the first installment. These funds will be used to offset facility development,upl'it, remodelling, expansion, and acquisition costs. GRANGE COUNTY r t-XWrl r CARC-YLI A Steve Brantley said that they are required to create 360 fulltime positions at an annual average salary of $60,665 plus full benefits. He said that if the company fails to meet these targets, the financial penalty of $500 per job will accrue annually and be added to the purchase price of the building. 10 Slide #8 Manager Recommendation 1) Receive the proposal to consider entering into a lease agreement and the issuance of incentives to a private company for the recruitment&expansion of Well Dot, I nc.'s operation s in Orange County; 2) Open and conduce the Public Hearing and receive BOCC and public comments, 3} Close the Public Hearing,and 4) Approve the"performance-based"economic development incentive agreement and the lease by adopting the resol ution authonzi ng the lease between Orange County and Well Dot. Inc ORANGE COUNTY 3 MOR71[CARDLEWL Commissioner Fowler asked how the $2 million in performance-based incentives would be funded and was it reflected in the budget. Travis Myren, Deputy County Manager, said the county would borrow the funds for the incentive payments at $137,000 a year and the rent for the facility would pay for that debt service. Commissioner Richards asked if the $2 million was based on actual expenditures and if that was the county's max. Travis Myren said it was based on actuals but they are in full belief that the costs will be at least $2 million. Commissioner Richards asked if that was the county's max. Travis Myren said the county's max was $2 million with proof of expenditure. Commissioner Richards asked if it had to be paid within two years of the first installment. Travis Myren said yes. Commissioner Richards asked about the market rate rent and the difference in what they will be charged. Travis Myren said that the 400,000 amount was based on the current condition and the $850,000 amount is what it will be after improvements. He said it will be Class A office space in downtown Chapel Hill at that time. Commissioner Richards asked if the company were to fix it up in year two, if they would still pay the $400,000 as if they had not made the improvements. Travis Myren said yes. Commissioner Richards asked if that is true for the first six years. Travis Myren said yes. Commissioner Richards noted that they are getting $2 million to fix it up from the county and asked if the county should adjust the rent after the improvements. Travis Myren said that they would have to renegotiate that point. Commissioner Richards asked if the recommendations are a result of the negotiations. 11 Travis Myren said yes. Commissioner Bedford arrived at 7:27 p.m. John Roberts said that at this point they are hopeful that the company will purchase the property and it will not get to that point but if they do not, they will continue at the flat rate. Commissioner Richards asked if the option to purchase was available every year. Travis Myren said yes. Commissioner McKee asked if the numbers they are seeing were from an incentive type package rather than like the incentives they have used for other companies. Travis Myren said usually it would be 75% of the tax value over a period of five or more years but that this is a unique case. Commissioner McKee said this is a unique design and is a hybrid example of a different type of an incentive package. Chair Price referenced the amount of $850,000 in year 7 and asked if staff adjusted for trends. Travis Myren said it is an estimate at a 3% escalation of rates in downtown Chapel Hill. He said that in year 7 they would have a commercial property professional tell the county what the current market rate is for the facility. Commissioner Fowler said the county is putting up $2 million in renovations, and the company may do more. She asked if they would be discounted any additional contributions on renovations if they were to purchase. Travis Myren said they would only be discounted what they have paid in rent up to that date. A motion was made by Commissioner Greene, seconded by Commissioner McKee, to open the public hearing. VOTE: UNANIMOUS PUBLIC COMMENT: Beth Gullette, the Chief Legal Officer for Well Dot, said the company was really excited to open in Chapel Hill. She said that they are excited to be building jobs in Chapel Hill and on Franklin St. She said that they are working with Durham Tech, mid-career, job fairs with A&T, NC Central, and UNC and are working to develop those relationships. She said all of the work they are doing is wonderful, but they need the space. She said that four hundred people is too many for the space they have now. She said this facility will triple their space and help them grow in the local area. She said the company appreciates the Board's consideration. A motion was made by Commissioner Greene, seconded by Commissioner Fowler, to close the public hearing. VOTE: UNANIMOUS Commissioner Hamilton asked that the Board amend the fifth "Whereas..." clause in the resolution to read as follows: "Whereas, in consideration of the economic development opportunities including the creation of 360 new full-time jobs by December 31, 2025..." She said that date would agree with the economic incentive targets. 12 Chair Price said that language is consistent with the lease. The Board agreed by consensus to the amended language. A motion was made by Commissioner McKee, seconded by Commissioner Bedford, to approve a resolution authorizing approval of the proposed lease agreement and economic incentive agreement, with claw-back provisions, for the expansion of Well Dot, Inc.'s health care IT operations in Orange County, NC, with the amended language as discussed. VOTE: UNANIMOUS 6. Regular Agenda a. Longtime Homeowner Assistance (LHA) Additional Information The Board received information and considered options for the LHA program in 2022. BACKGROUND: On May 3, 2022, the Board of County Commissioners reauthorized and approved the following changes to the Longtime Homeowner Assistance (LHA) program for 2022: • Adjust program operation dates to August 1 through December 1, 2022. • Include an informational insert with the tax assistance application packet and increase awareness about LHA. • Formalized the LHA policy for heirs' properties where there are more than one person/households listed on the deed. • Formalized the policy for Family Trust owned properties. • Require that the applicant provide a copy of the targeted tax bill. • Reduce the requirement to have owned and lived in the home for 10 years to 5 years to increase access to the program. Staff plans to add this or a similar clarifying statement to the informational insert: If you received assistance from this program on your 2021 tax bill, you DO NEED TO APPLY again to qualify for assistance on your 2022 tax bill. Staff offers the following information regarding a change program design that would cover more of the amount owed by the taxpayer. Using data from the 2021 LHA program, the American Community Survey, the FY22 Area Median Income for Orange County, staff is providing more detailed estimates for options. Additional Information: • Currently 913 properties in Orange County are receiving the Homestead Exemption or another type of low-income assistance. • The Tax Office found 20,009 owner-occupied residential properties in Orange County that have been owned for 5 or more years who will likely have an increase in the County portion of the tax bill as compared to their 2020 tax bills (base year). • In comparison, the Tax Office previously identified 9,704 residential properties that have been owned for 10 or more years. 1. Institute a baseline minimum award amount: The award amount would be equal to the difference between the County Tax portion of the 2020 tax bill and the estimated 2022 tax bill, with a minimum award amount of $300 (note that the average award amount for 2021 was roughly $190). 13 • For the 20,009 residential properties owned for 5+ years who will have increases in the County portion of their 2022 tax bill, the average County tax portion is $2,954. • The tax increases range from $0.01 to $8,940.92 • 17,044 have an estimated increase of under $300 (average $110) • For the remaining 2,935, the average increase is $569 and the total increase for all 2,935 is $1,670,143. • Using income data from the American Community Survey (ACS) 5-Year Estimates Data Profiles and an owner-occupied rate of 63.8% per the 2020 Consolidated Plan, staff estimate the following number of households at the Area Median Income levels: Estimated owner- occupied Income level households in OC Over 80%AMI 9,984 61-80%AM I 3,181 31-60%AMI 3,622 30%AMI and under 3,241 TOTAL 80%AMI and below 10,045 • Using the ACS data for household numbers and owner-occupied rate leads to a slight difference in the total number of households compared with Tax Office data — the ACS total households is 20,029 compared with the Tax Office actual total of 20,009. The total liability (100% participation) for instituting a $300 minimum for 10,045 households would be $3,013,355. • Program costs decrease as participation decreases: Total Liability (100% 25% 50% 75% participation) participation participation participation $300 minimum $ 3,013,355 $ 753,339 $ 1,506,678 $ 2,260,017 2. Awards cover half of total tax bill: Award would cover half of total tax bill for homeowners earning 80% AMI or under, up to these total amounts: $500 for households with incomes <_ 61- 80% AMI $750 for households with incomes <_ 31- 60% AMI $1,000 for households with incomes <_ 30%- below AMI %2021 apps w/County portion Average of tax Owner-occupied of bill over 2x bill under 2x max Max Income level households in OC max assistance assistance Assistance Total Liability 61-80%AMI 3,181 100% N/A $ 500 $ 1,590,716 31-60%AMI 3,622 67% $1,007 $ 750 $ 2,418,645 30%AMI and under 3,241 5% $1,083 $ 1,000 $ 1,831,465 TOTAL 80%AMI and below 10,045 $ 5,840,825 14 • Staff used 2021 LHA program data to calculate the percentage of potential participants with the County portion of their tax bills in excess of double the max assistance proposed. • For households at 61-80% AMI, all 2021 LHA participants at 61-80% AMI had tax bills in excess of $1,000 (double the max assistance of $500); liability for this group was calculated by simply multiplying the number of households (3,181) by the max assistance ($500) = $1,590,716 • For households at 31-60% AMI, 67% of the 2021 LHA participants at 31-60% AMI had tax bills in excess of $1,500 (double the max assistance of $750); liability for this group was calculated by multiplying the number of households (3,622) by 67% times the max assistance ($750) and then adding this to the remainder of the group, the number of households (3,622) times 33% times half of the average tax bill for the 2021 LHA participants at 31-60% AMI that did not have tax bills over $1,500 — this average is $1,007 = $2,418,645 • For households at 30% AMI and under, 5% of the 2021 LHA participants at 30% AMI and under had tax bills in excess of $2,000 (double the max assistance of $1,000); liability for this group was calculated by multiplying the number of households (3,241) by 5% times the max assistance ($1,000) and then adding this to the remainder of the group, the number of households (3,241) times 95% time half of the average tax bill for the 2021 LHA participants at 30% AMI and under that did not have tax bills over $2,000 —this average is $1083 = $1,831,465 • The total liability using these calculations is $5,840,825 • Program costs decrease as participation decreases Total Liability (100% 25% 50% 75% Income level participation) participation participation participation 61-80%AMI $ 1,590,716 $ 397,679 $ 795,358 $ 1,193,037 31-60%AMI $ 2,418,645 $ 604,661 $ 1,209,322 $ 1,813,983 30%AMI and under $ 1,831,465 $ 457,866 $ 915,733 $ 1,373,599 TOTAL TOTAL 80%AMI and below $ 5,840,825 $ 1,460,206 $ 2,920,413 $ 4,380,619 Bonnie Hammersley, County Manager, made the following presentation: 15 Slide #1 to), 'C H C D ORANGE COUNTY HOUSING&COMMUNITY DEVELOPMENT Longtime Homeowner Assistance (LHA) Further Information May 24,2022 Slide #2 Orange County is considering options for 2022 Longtime Homem nerAssistance •program piloted in 2021 to cover increases in County portion of property tax •2021 pilot program •91 eligible applications •$97 median award amount •Staff have worked with community partners to propose program changes for 2022 nCHM Slide #3 BQCC approved changes for$233,636 in remaining program funds on May 3,2022 •Adjust program operation dates to August 1- December 1, 2022 •Include informational insert with tax assistance application packet to increase awareness about LHA -Formalized LHA policy for heirs' properties •Formalized policy for Family Trust owned properties -Require applicant provide copy of targeted tax bill -Reduce the requirement to have owned and lived in the home from 10 years to 5 years to increase access to the program QCHC❑ 16 Slide #4 More information on 2 potential program changes to increase award amounts •Institute baseline minimum award Award cover half of total tax bill up to: $500 for households with incomes!�61- 80%AMI •$750 for households with incomes 5 31-60%AMI •$1,000 for households with incomes 5 30%- below AMI •All figures use only County-portion of tax bill QCHCD Slide #5 Total liability numbers are large,staff could prioritize based on need First-come, first-served prioritizations favor people with lower service needs, and therefore are not recommended Staff can develop some need-based prioritization factors for you to consider at your next meeting (income, applicant age, tax burden) to use if awards exceed available funding HCD Slide #6 Data from American Community Survey, Tax Office&2020 Consolidated Plan • From Tax Office -20,009 residential properties awned far 5+yea rs who have County portion increases in tax bill •Average County tax portion is$2,954 •Tax increases range from $0.01 to $8,940.92 • 17,044 have an estimated increase of under $300 (average$110) For the remaining 2,935, the average increase is $569 and the total increase for all 2,935 is $1,670,143 n H ❑ 17 Nancy Freeman continued the presentation: Slide #7 Data from American Community Survey, Tax Office & 2020 Consolidated Flan Data from ACS & ConPlan Estimated owner- Occupied . . with ■ ,income level increases in tax bill 1 nr.reases in tax bi I I Over 80%AM1 9,984 4,84 61-80%AMI 3,181 1,543 31-60%AMI 3.622 1,756 30%AMIand under 3,241 1,572 TOTAL 80%AMl and below 10,045 4,871 Slide #8 $ 00 minim-Lim LHA ward results in $ million total liability for -year occupancy participationTotal Liability partidpation of t . $3,013,355 $753.339 $1,506,676 $2,260,017 31.461.422 $365.356 $730.711 $1.096,067 capped18 Slide #9 5 YEAR OCCUPANCY: Covering half of tax biH up to 94 242� aspps Average of Owner- vff�oun#]r tax bdl oGrsupiad portionaFbiA und�r2x hauSeFloldS oYer�x inax max Ntmx Incarns in pG nssYtance assslss�nte Assistance Total 3.181 �1�9090 11'. ii $ 1.590.71$ �lhdl r I�f�gl 3�96 AEu11 and under 163 100 T�TA� 809G Aiill antl below Slide #10 10 YEAR OCCUPANCY: Covering half of tax bill up to capped amounts 9� �421 aspps Average of Owner- wlGoun#y tax bdl o�aupiad parti�n of hill under,?x hvUSeFlolds orer�x max max fde3c Iracorrsc in �ssrsranse 1ssissante Assistance Tatal 1.543 11' ii A41'lt 31�49b r AM11 3� 6J�bAl and under ' 000 T�TAE 809G Alin bnd below 19 Slide #11 5 YEAR UPANCY Capping tax arnountbased on income Award Owner- occupied • (Average Income 4 ■ ! ■ 4 Level in OC Income Income Carp) UaNky ncome -CaW Fua9bility 1-79YAMI 34141 1M.4% 12.M SW 12,fQ .W 14,5H 11,-426 14 F21 1-60%A I :%W 167.3m M.7% 11.235 ".472,712 11,119 11,8M Wc;472;6 51ntl9M and 3 d1 S29,d6D j2,p95 Sd,PB9,234 ;673 92,391 57,717,011 TOTALW% 10_IW4 iii,1�,0E11 #1ii1�l7� AMI and 6riuw Slide #12 10 YEAR OCCUPANCY: Capping tax amount lased on inconi r Y Income4 i ■ ■ 2% Increase 2% Cap Level in ■ Income Incorne ■ IncomeLiability I bi-W%PNl 1,M 1M,4DD V.292 M62 1 1,k21,124 21,529 31,426 S 22M.MT jib aril i 756 557.1w 11,71& 11,235 1 2,199,191 11,149 MADE S 3.17M 5 JOkAM and 1572 MAW NAB &3,292,-fl66 M73 92,291 S 3743CWG under TALiioG y s 6M3,i6@' #i■11�W "d 4Avw 20 Commissioner Richards asked what basis is used to determine full participation. She asked how the increase in participation will be factored into each scenario. Nancy Freeman said they have provided complete liability if they have 100% participation in these cases. She said in the earlier ones, Corey Root, had figured 50% participation but that is an estimate because they do not know how many participants they will have with the increased community outreach efforts. Commissioner Richards asked how much participation was there as percentage of eligible households. Travis Myren said it was 1% in the previous year. Commissioner Richards asked how the county gets from 1% to 100%. Travis Myren said that is the challenge here. He said that what Bonnie Hammersley was describing is setting it up like the small business grant program. He said that would allow for an application window and applicants would be reviewed by the priorities the board has established. He said staff would then prioritize applications based on Board approved criteria. He said they would grant what is available for the prioritized applications. He said that the safest route, and to make sure that the liability stays within the allotted amount, is to prioritize based on need and come back to Board. He said this is the recommendation rather than first come, first serve, which may not help the intended audience. Commissioner Fowler asked if staff met with representatives from Justice United and the Jackson Center and if they suggested having a window and then if it goes over, then everyone gets adjusted down to the available amount. She asked if that is something that could be done. Travis Myren said yes. He said that staff could come back at a future business meeting to allow the Board to establish the priorities. Commissioner Fowler asked if there is information on how other counties' participation increased based on marketing methods. Nancy Freeman said she does not but that she was told it took about three years to get to a solid base. Commissioner Fowler clarified that they did not tell Nancy Freeman what the percentage increase was and asked if they used the inserts. Nancy Freeman said she did not have that information but that she assumed they would use the inserts based on how the county offices work. She said that she can try to find this information and report back. Commissioner Fowler asked if staff could come back with a calculation for the cost to do $300, $600 and $900 for those three groups Commissioner McKee asked for clarification on the income ranges are for the program. Travis Myren directed Commissioner McKee to slide #12 with the income information. Commissioner Fowler asked if it was based on a family of four. Travis Myren said they are not asking how many people are in the home. He said that he will have additional information because as he thinks about it more, they may adjust based on family size but that he is unable to recall at this time. Commissioner Bedford said she had the handout and they breakdown from 1 to 8 in the households. Chair Price asked if they use the window application option if they will adjust the allocations based on the total amount available to make sure that everyone gets some relief. Travis Myren said that would be an option the Board could consider. He said that it could be that everyone gets something, or it could be prioritized for those with the greatest need. Chair Price said that people that do not reach the threshold would still be in need. 21 Travis Myren said yes, but that they could prioritize the need based on tax burden or another means to calculate need. Chair Price said that she is afraid people are still getting left out. She said that the issue is still present, that people's properties are valued too high for them to afford the taxes. She said this was one of the concerns of the Chapel Hill neighborhoods and the rural areas. She said properties are not valued the way they should be. She said that one problem in Chapel Hill is the students of the university living in the same neighborhoods as single-family homes and there are properties in other areas of Orange County that have never been assessed in a while. She said that she would like to have this investigated and make sure that properties are being fairly assessed. Commissioner Hamilton thanked the Tax Assessor for the information. She said it helped her get an understanding of the size of the program. She said even though they are estimates it was still a better grasp on the number than they have had in the past. She said that the program must be sustainable. She said that it does not make sense to offer it for one year and then not. She said they should do $250,000 for the first year, even if that means taking more from ARPA, and be thinking long term about taking it out of general revenues. She said that given the magnitude they should go back and do to 10 years. She said that this will guarantee that long term homeowners are protected. She said that there are two issues. She said one is there is an issue with how properties are appraised and valued, and the larger issue is the tax burden on low-income people in the community. She asked what they are going to do to help low-income residents get relief on the taxes. She said that she supports staff coming back with some needs-based factors because she wants to make sure that the people that need the money, get the money. PUBLIC COMMENT: Heather Ferrell said she lives in the Northside neighborhood of Chapel Hill. She said she is trying to make sense of the numbers. She said the total liability is a large number and is confusing. She said she wanted to talk about the Northside neighborhood. She said the neighborhood is not designated historical, but it is historical because of the families that have lived there for over one hundred years. She said these are the families that are being harmed by the unfair valuations and the tax burden. She said the neighborhood is up against an influx of investment properties. She asked the Board to do what they can to help. She said that the community is a special place to live. She said that it is hard to watch a $2 million incentive for a private company, and they need to value community history at the same level as economic development. Horace Johnson thanked the Board for their comments on the recent shootings in Buffalo and Texas. He said he came to talk about those that have been disproportionately impacted by the pandemic but changed his mind when he heard the presentation by Well Dot. He said that typically, governments put too much effort on attracting outside businesses but fail to grow the local assets. He mentioned the opportunity zones and that they are determined by political interest. He said they fail to prioritize community leadership. He said that place based policies fall short because they are rarely centered around racial equity. He asked the Board two questions. He asked if the Board would become galvanized in their efforts to save these historical neighborhoods with tax assistance for all or will the Board be remembered for being complicit in further assisting the eradication and gentrification of those historical neighborhoods. He said that history will record everything the Board decides on this matter. He asked where will people go? He asked the Board to please give that some thought. Christine Abernethy, Director of Housing Justice at Marian Cheek Jackson Center. She said that they have been running a tax support program for about five years. She said they also 22 supported the county in doing outreach in year one of the Longtime Homeowner Assistance program. She said she is grateful for the Board's efforts in trying to find solutions with them. She said that they will hear from the neighborhoods that have borne the burden of the taxation issue. She said that they have heard that residents want an increase in the award amount. She said they have also asked to consider including 80% AMI or increasing it to 60% AMI to make sure that homeowners are not left behind. She asked them to cover more than just the increase. She said that from 2000 until now, for residents who are sixty-five and up, their taxes have increased by more than 400%. She said please consider covering more than the increase. She said that the liability numbers are scary and are estimates. She said that the people here tonight are frustrated but they would not be here if they did not have hope. George Barrett was accompanied by two others who showed pictures of two different homes. He said in April 2021, the revaluation year, the neighborhoods were threatened by displacement. He said a home of 1300 square feet, owned by an elderly resident in her nineties, saw values higher than the one on the left, which are double the size, double the bedrooms, built in the early 2000s but used as student households. He said the county's system is failing because it does not consider the nuanced factors of gentrification in neighborhoods like Northside. He said through courageous organizing of the residents, these issues have been spotlighted and the assistance programs have been developed. He said the source of all of this is systemic, and they must continue to pursue systemic solutions. He said they must recognize that proposed liabilities are a hypothesis. He said 2020 and 2021 highlighted inequities that have existed for decades. He said shifting to assist the tax burden as a whole rather than just the increase year to year is an equitable step forward for solutions. Kathy Atwater said a family applied for the Longtime Homeowner Assistance Program and they were denied. She said that demonstrates that there is something wrong with the system. She said for them to have a higher tax value than the one they saw is inequitable. She said her neighbor Heather Ferrell's passion for the community let her know that they have something special in the community. She said people will leave and sell their homes if they cannot afford to pay the tax bills. She said money is going out of the county to the other counties. She said a lot of people have inherited their properties and are not able to sell and buy elsewhere for a reasonable amount. She said having property taxes go up and to not be able to stay there is not right. She said she wants to preserve it and for the longtime residents to be able to leave something for their children. She said this county has become popular, but they should recognize the people who founded it and have been here. She asked that the Board consider all of Orange County, those who are living off fixed income, pensions, so that everyone is considered. Talia Kieu said she was representing neighbors who were unable to make it to the Board meeting. She read statements from them to the Board: Clarence and Jane Fare said they have lived there for over 50 years, but the tax rate is making it very hard. She said they are in their 80s, and it gets harder every year. She said that the neighbors are saying the same thing and there are only three long term residents here and the rest are students. She said they asked for the county to please help with the tax bill. Sophie Mitchell said the county should assist with the entire tax bill and not just the county portion. She said that she lives in between two student rentals and there is no way they can afford to pay higher taxes. She said their house was bult in the early 50s and they haven't changed anything. She asked them to come into our neighborhoods and look at the different homes and to sleep on that before taking a vote. Matthew Fearrington said he has five residences on his street at Starlite Drive. He said the back of the house had a creek, which was converted into a storm drain, but when it rains, it 23 floods houses, basements, and crawl spaces. He said this happens every so many years. He said the town tried to put it underground, but it still floods. He said he has been in his home for 20 years, his uncle has bene there 20 years, and no one remembers an assessment actually being done. He said that if you look underneath the houses it is rotting, and no one ever came to look at what shape it is in. Paul Caldwell said he is a 50-year resident of Northside area and lives on Church Street. He said that Northside used to be a predominantly black neighborhood. He said that there are only five Black families that live on Church Street now and that is due to the fact that they have sold out to real estate developers to build duplexes and apartments. He said that it is pretty much all rental properties for students. He said they can afford those rents as students, and he has no problem with them but would like help for longtime residents. He said that he has been asked numerous times to sell but he wants to leave his properties to his children. He said he has pride in being a resident of Northside and wants to stay as long as he can. He said that he doesn't want to complain, but the students litter his yard, and he has to clean it up. Laine Staton said she is with Habitat for Humanity. She shared two stories that make sense of the numbers. She said that she got a call from someone that said her neighbor had sold her house for $225,000 and had originally paid $60,000. She said that initially, this made her happy because the seller was able to build wealth through homeownership. However, the home was sold to a developer who then turned around and sold it for $500,000. She said this made her heart race when she heard it because she knew that it was going to have a major impact on the tax assessment for her Habitat homes and all of the people in the community. She said the second story is regarding delinquencies. She said that in the first six month of her being there, she met with people that are significantly behind on mortgages. She went on to explain that one of the people that she met with was a master gardener and worked in maintenance at UNC, and that she was simply an incredible woman. She said that she had bought her home 15 years ago. She said that the woman was injured on the job and unable to run the buffing machine anymore. She said that the injury led to the woman leaving work and taking her Social Security. She said that she is now on a fixed income and only brings in $1,300 a month. She said that once the in the tax amount took effect, her 30% of her monthly income only covers a small portion of her mortgage. She asked the Board how she is supposed to help this woman. She said there was an option of extending the loan, but the woman would be 92 years old before it was paid off. She said this woman has loved and contributed to this community and asked the Board to please help her with the tax burden. Chair Price said that the suggestion from the County Manager was to come back on June 7t" for further discussion. Commissioner Greene said she was encouraged by what she heard during the meeting. She said she appreciated staff's efforts to show what 100% looks like because it shows the great burden that is out there. She said she understands that the amount of money they put aside is within their control. She said that there is almost $200,000 left and maybe next year could go forward with an equal amount, perhaps more, because that is under the Board's control. She said there is a lot going on, so she is glad to have more time to consider the materials. She said that at the next meeting there should be a policy discussion to decide whether they allocate the funds on a sliding scale of need or they divide it up so that everyone gets some. She said that she can agree that the problem is the tax burden. She said that the reason for a 2% and a 3% number in the packet is because the 2% is the operative number, the county amount of the tax, not the whole tax bill. She said that she wants to see that idea developed in a proposal back to them. She said that she would be happy if it models the Jackson Center's approach. She said that she fully understands that it is a systemic problem. She said that it is not a surprise that they are not the only community dealing with it. She said 24 that they can start working on the systemic issues in the community. She said that about a year ago, President Biden worked with HUD to setup a taskforce on property and valuation inequities and the county can learn from what they are doing. She said the National Fair Housing Alliance has issued a report where they discuss how the bias came about and how to tackle it. She said that she is very eager to solve the problem and thanked everyone for their heartfelt statements. Commissioner Fowler thanked the public in attendance for sharing their stories. She said it does appear that there needs to be tax relief, not just related to the 2021 tax bill. She asked if there was a way to assess the luxury apartments to make sure they are paying their fair share. She asked if there is a systematic way, they can do that and also for those in the lower income range. She said that she appreciates that there is time to come back and review the many ways to do this work. She said that she thinks they could examine finding a formula based on need, how long they have resided in the dwelling, and she is also unopposed to making sure everyone gets a little. She said maybe there can be a combination. She asked if other counties have specific percentages and if they use inserts. She said she wants to give as much as they can but to be careful not to over promise. Commissioner McKee said he has long had concerns with the assessment and appeals process. He is interested in the two properties that were shown during George Barrett's comments. He asked if the valuation was appealed for the single-family home. He said it makes no sense what the single-family home was assessed at. He said that he is not in favor of first come, first serve. He said one of the first things to do is figuring out how to get the word out broadly. He said he has no clue if the amount should be $200,000 or $18 million. He said that he is in support of helping everyone that needs help, but he wants to make sure that those that need it the most, receive it. He said he is just unsure how to get there. He said that he owns a farm and is a beneficiary of a state law that allows farmland to be taxed at a lower value. He said without that, the land that has been owned by his family since the 1820s, would have been sold years ago. Commissioner Bedford thanked staff for their work on the presentation. She said that they are in a phase to keep doing more. She asked that people come back each year to report on progress. She said the effort is finding a balance and a more efficient way to keep people in their homes and it is the right thing to do. She said that she wants to be able to age in her home, and that is what most seniors want, and should be able to do. She said that they need to start evaluating the progress each year. Commissioner Hamilton said it is clear that appraisals need to be fair and they also need to address the revaluations. Commissioner Richards said it is important to underscore the valuation part of this conversation. She said that as the county builds, they need to make sure properties are valued properly. She said they should make sure they are incentivizing in a way that is not to the detriment of the potential growth in revenue. She said they need to look at valuations on the lower end and the top end as well. She commended the community for holding the Board accountable and informing and educating them on the issues. She said the message that it is more than the impact of the assessment, but the overall tax situation has been made clear. She said that she thinks they need more time to discuss the possible solutions. Chair Price thanked staff for continuing to work on the issue. She said that staff listened to the community and continues to do so. She said they must look at the immediate concerns and determine how to preserve neighborhoods. She said they must also look at more than just the tax burden. She said they need to look into the other things that people have to pay for and the cost burden of living in a place they want to live. She said this is a systemic problem of gentrification and a system that is based on the state to use comparable homes. She said maybe they need to work with with Chapel Hill on how to re-identify some of the properties. She said that while two houses look similar, there are different things going on in each home. 25 She said they need to work with the individuals and the community organizations. She said that the numbers for outreach were small because of trust and said that people of color have historically been unable to put their trust in the government. She said that some communities are using trusted ambassadors and paying them for their work. She said they help to get the word out on top of inserts. Bonnie Hammersley asked the Board to send questions to Greg Wilder so he could direct questions to the appropriate staff member. Chair Price said that the community is welcome to continue to bring concerns and questions to the Board and that this item will be back on June 7t" for continued discussion. b. Manufactured Homes Action Plan The Board tabled a discussion on the Manufactured Homes Action Plan. BACKGROUND: For many years, there has been interest in addressing the vulnerability of residents living in manufactured home communities (MHC) in Orange County. In 2016-2017, the County, Towns, and local housing partners formed a manufactured homes work group to begin to discuss and evaluate opportunities and obstacles to addressing the needs of manufactured home community residents. There are one hundred manufactured home communities in Orange County housing over 2,000 households. About half of manufactured homes need minor repairs, and about 28% need major repairs, with only a small percentage, 3.2%, economically infeasible to repair. Most residents are of low-income, making it difficult to fund needed repairs. Also, many of the MHCs are under threat to be redeveloped, in particular the MHCs closer to town centers where market demand is high. The Manufactured Homes Action Plan is designed to provide a plan to address the redevelopment threats facing manufactured home communities in Orange County. The Plan is a collaborative effort between the Towns of Chapel Hill, Carrboro, Hillsborough, and Orange County that outlines specific objectives, strategies, action steps, partners and resource need to address the redevelopment threat facing manufactured home communities. The other participating jurisdictions adopted the Action Plan strategies last month — the Town of Carrboro on April 5, 2022, the Town of Hillsborough on April 11, 2022, and the Town of Chapel Hill on April 27, 2022. Housing and Community Department staff from the local governments will play a leading role in implementing the strategies and action steps listed in the plan, while also collaborating with many Town and County departments and community partners. This plan recognizes manufactured housing is an important source of naturally occurring affordable housing serving diverse populations, including vulnerable community members. It uses resident engagement as the foundation for the strategies proposed. Bonnie Hammersley asked the Board to table discussion on the item due to a staff member's inability to be present for the meeting. Chair Price said that she still had one person signed up to speak, so she would allow public comment on the item. PUBLIC COMMENT: Emily Bane said her parents developed two mobile home parks, in 1972 and 1986. She said all of her homes are on one or better individual lots with septic systems. She said there is 26 no available water and sewer. She said having affordable housing requires water and sewer. She said very few mobile home parks have available water and sewer. She said regarding the previous item on the Longtime Homeowner Assistance Program, it would be helpful to have information in Spanish. She said some of her residents have lived in her family's parks since the early 1990s. She said that some of the homes her tenants have purchased at $60,000 or $70,000 in the mid-1990s are valued at $70,000 or $80,000. She said that her tenants expect to be able to sell their homes at the tax assessed value, but it is not realistic. She said in the Manufactured Homes Action Plan agenda packet, it said there is no financial impact to the proposal but lists some of the things they are planning to do that will definitely require money. She said that the proposal seems heavy handed. She said that her parents developed the mobile home parks to be able to pay their property taxes. She said that most of the property they own has been in their family for one hundred years or more. She said they are just trying to hold the line. She said her property is like a family member. She said if the county's takes away the ability for landowners to make decisions about the use of their properties, then that would not be fair. Chair Price said the item would be discussed on June 7, 2022. Commissioner McKee asked if a motion was needed to table the item. John Roberts said if they want the item to come back at a date certain, then he would suggest the Board make a motion to that effect. A motion was made by Commissioner McKee, seconded by Commissioner Hamilton, to table the item until June 7, 2022. Commissioner Fowler said she would like more information on the valuation of manufactured homes. She said she had heard that manufactured homes decrease in value, but the commenter stated that the homes were increasing. VOTE: UNANIMOUS 7. Reports a. Orange County Facilities Master Planning Presentation The Board received a presentation on the scope of services to be performed by O'Brien Atkins Associates for the development of the Orange County Facilities Master Plan, and provided feedback regarding plan development. BACKGROUND: Orange County issued a request for qualifications (RFQ) and has selected O'Brien Atkins Associates of Durham, NC to help develop a Facilities Master Plan to guide the development of County properties and programs over the next twenty year time frame. The work will include a review of background information, related plans and programs, an inventory and condition analysis of selected facilities, a population growth assessment and program demand analysis, a related gap analysis and action plan, development of program options and recommendations, and preparation and presentation of the final Master Plan Report. Steve Arndt, Director of Asset Management Services, introduced the item and representatives from O'Brien Atkins. He introduced Kevin Montgomery, the President and Chief Operating Officer, and Jay Smith, Principal and Director of Landscape Architecture, both of O'Brien Atkins. 27 Kevin Montgomery said the firm started in 1975 in Chapel Hill. He said they are committed to being inclusive and understanding what planning means to the community. Jay Smith made the following presentation: Slide #1 a- ORANGE COUNTY Facilities Master Plan 0B9 NORTH CAROLINA BoCC Meeting 5-24-22 Slide #2 Agenda Introductions - Overview Managing for Success KxinE.Mom9oery ayW mtlh Process and Approach Representative Projects 4&A I Discussion PeSam o�N�a� OBD CGL Slide #3 CBO PM,kOiRe...91eAMysls,LaM Pb 'g,WmkpL,,Stra p, CGL PraleRlms,NemaM MaIYJs,9e�sslmiWK,Needs Assessment CBRE Hey Esta[e Lease EuaWabons,P.pery Crsx—Et&— PALeCIO C ORRIO Cons[E-stl-dq 11b ,ac , EnvYaimental,hd—Ak N,H1y,Abestms,NaW 28 Slide #4 Managing for Solutions that meet your objectives and needs On time and in budget Maximizing communication to minimize problems Leveraging technology for efficiencies Master Plan that serves asworkingtool Jay Smith said that while they will help facilitate the plan, it is really the county's master plan. Slide #5 Approach • Phase I Phase 2 Phase 3 Phase 4 Understand Define Analyze Plan �= o Visioning ^ p Your Aspirations I l l a t Space Drivers& Strategic Plan A Gap Tools� 9 Data Forms& Benchmark Scenario Workshops Interactive Roadmap Interactive Variables Process Format &Implementation Database Schedule Templates Slide #6 Visioning .................... Jay Smith said as part of the visioning process, they would take time to dream and set priorities. 29 Slide #7 Stakeholder Participation F WHAT WE LEARN • Identifying policy drivers • Understanding the stakeholders • Incorporating holistic approach • Community Engagement Slide #8 Information . ! Understand o •�. � WHAT WE LEARN Proven data gathering ----_1 tools �.� Understanding local environment �== Building project database Slide #9 Trends Phasp 1:Understand �.,,. . „ ....,,.:,... WHAT WE LEARN - Incorporating projected demographics x Understanding areas of - ... _- m..n growth • Identifying centers of ti population Jay Smith explained that the trends will help show how Orange County compares to others and can be used as a benchmarking tool. 30 Slide #10 Space Drivers Phase 2:Define 0 WHAT WE LEARN C9vlD Understanding driver by department Gathering relevant data Thinking about future Population Change Staff Space Suitability Accessibility impacts A Workload Technology Equipment Jay Smith said they will examine how much space each department needs and consider all of the space drivers. Slide #11 Changing Work Enviro Define WHAT WE LEARN " tyq Understandingspacetrends --_ Aligning standards to Function Impact of Covid i 20227 Jay Smith said they will examine how spaces can be shared so work is accomplished. Slide #12 Facility Conditions ► Pha,eDefine WHAT WE LEARN r " i Condition of space Facilityconditionindex Build upon completed work .lid, 0 11 auLDxoraaecrs - 9 Jay Smith said they are starting to understand the assessment and they will also visit and get familiar with the facilities. 31 Slide #13 Research-Informed Basis J WHAT WE LEARN _ r — ` - • Creating interactive database ^„„ .hx. • Aligning standards to s4a�E summary function Impact on capital and -ym operational plan Jay Smith said that after meeting with each department, they will understand what makes them tick and how much space they need to accomplish their work. Slide #14 Operations i PROCESS WHAT WE LEARN • A lgning facilities to function&future lard use • Addressing cer tralldecentral¢ed service r Addressing public access F &employee health Slide #15 Concept Options DU RNAN couNTY SPACE NEEDS ANALYsNs s-1..D—D...— _ WHAT WE LEARN F UUMAMC&U rySPACE NEE=Awu ;; _�•� _ --. P Identifpgqualitative and quantitative kNfactors • Comparing pros and cons of each Developing cost •• estimate ranges Jay Smith said they intentionally bring alternatives to explore so that the Board is challenged to examine ideas they may not have thought of. 32 Slide #16 Cost Measurement Phase 4:Plan WHAT WE LEARN aye,w . Underslandingfacility life-cycle&real estate em:�Ioon�` value rmix.uiexoenses o.x Incorporating operational cost impacts Factoring County funding sources&epportunities Jay Smith said that while they will allow dreaming, there is a reality, and it all has to be affordable. Slide #17 A Living Document Detiverabie r, WHAT WE LEARN �t Creating versatile WAM master plan y,•' ,x`'`ys� Delivering interactive tools • Providing dynamic LPhP raadmapta inform decisions Jay Smith said that this will become a living document and continue to be used. Slide #18 Discussion Tim r� 33 Commissioner Greene asked if their assessment would include the Southern Campus in Chapel Hill. Jay Smith said yes. Commissioner Bedford asked for clarification on the following statement from the background materials on the item: "For a master plan, the size of an individual office or area is not as important as the space-per-person or space-per-equipment standard. Based on the recommended net square foot space standards and the type of department (staff versus equipment driven), the consultant will recommend a space-per- unit (staff or equipment) allocation standard, expressed as department gross square foot per staff, for each department." Kevin Montgomery said it is function driven. He said they consider functions that will be carried out in the space and what does it take to do one's functional job. He said that shared space needs to be factored in. Commissioner Richards asked how we can do a facilities plan when there is not a strategic plan in place. She said that she understands that this is meant to be a visioning piece and asked how those to things come together without a strategic plan. Kevin Montgomery said they look at the 20 years with an estimate of growth in the community versus staff that will be needed to serve the community. He said they look at other communities and look at the larger picture to compare. He said they work with the information that staff is given them, the information CGL has collected, and the average growth rate to factor the estimates. He said his experience with Durham County has been almost head on with their estimates. Commissioner Richards asked if the Board would have the opportunity to participate in the visioning sessions. Kevin Montgomery said it is the most important part of the process. He said they start with the aspirations, in building and master planning then they balance it out. He said they start by listening to the community. Chair Price said she first met Kevin Montgomery during their work on the Durham Tech expansion. Commissioner Fowler asked if they have standard data of the effect of telecommuting on space needs. Kevin Montgomery said that is evolving and is a hybrid. He said they understand that today is a little different than 12 months from now. He said that their estimates may change but most people are 40% in office or are hybrid telecommuting. Commissioner Hamilton asked them to clarify who the county project manager is and asked if it is Steve Arndt. Kevin Montgomery said yes. Commissioner Hamilton asked who will be on the oversight committee. Jay Smith said that is just getting underway and will be one of the first things that they produce. Commissioner Hamilton asked what they look for in membership. Steve Arndt said they will get a diverse group of viewpoints from within county government. Bonnie Hammersley said they will look to different department directors. She said that all departments have strategic plans, and those will be looked at. She said they already have hybrid remote work and they have already identified positions that are permanently remote. She said the committee will be more of an executive team of department directors and a representative from the County Manager's Office. Commissioner Hamilton asked what "order of magnitude cost estimates" means. 34 Kevin Montgomery said they look at all of the detailed plans and drawings for the office building and determine how much does it costs per square foot. He said then they put inflation and escalation to estimate the cost. He said this is not based on a specific design. Commissioner Hamilton clarified that it is an estimate on what the square footage would be. Kevin Montgomery said it is based on square footage and a description of what they are building will be rather than specific information of what is in the building. He said the order of magnitude will have an estimate based on the marketplace and then add the projections to the completion date. Commissioner Hamilton said that because there is not an overall strategic plan for the county but there are department specific strategic plans, how will they weigh priorities. She said that an overall plan would be helpful, but the department specific plans will not capture that. She said that it is important to plan for what the future may bring. Commissioner Bedford said she is so excited they are here to get started. She said that having information with the county needs and school needs to make informed decisions will be helpful. She said that she has gone through this where there were ideal, moderate, and bare bones scenarios and asked if those would be provided to help with cost. Kevin Montgomery said yes. Commissioner Bedford said she understands there will be phasing, as well. She said it is important to her that accessibility of buildings be considered in the plan. She said that she wants to see comparisons between deconstruction and renovation. She said that certain departments may need to be close to other buildings based on their job function. She said that factoring where there could be synergy between offices will matter. She said they should consider the location of the majority of the population. She asked if they would include the detention center property. She asked if they are going to consider the condition of facilities because there seems to be a lot of water problems. Kevin Montgomery said those will all be taken into consideration. Chair Price thanked staff and representatives from O'Brien Atkins for beginning the process. She said they know some of the buildings are not functional for today's world. She said that she appreciates the approach for today's world. She said that so many buildings are not functional for today. She said that it is time to examine the buildings and Orange County is changing. She Hillsborough is adding more residential as well as commercial. She asked when they would hear back from O'Brien Atkins. Steve Arndt said they would come back to the Board mid-way through the process as well as at the end. Chair Price asked what those dates might be. Kevin Montgomery said they would hear back before the end of the year. Commissioner Bedford said it was important to consider the impacts of climate change and investing in sustainability. Commissioner Richards asked if the Board could see the output from the visioning phase of the study. Bonnie Hammersley said they will share information periodically with the Board, perhaps quarterly or every other month. 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 35 Commissioner Richards asked to remove item 8-e from consent agenda. A motion was made by Commissioner McKee, seconded by Commissioner Fowler, to approve the remaining consent agenda. VOTE: UNANIMOUS a. Minutes The Board approved the draft minutes for the April 14, 2022 Board of County Commissioners meeting. b. Advisory Boards and Commissions —Appointments The Board approved the Boards and Commissions appointments as reviewed and discussed during the May 10, 2022 Work Session. c. Fiscal Year 2021-22 Budget Amendment#11 The Board approved a budget amendment for Fiscal Year 2021-22. d. First Quarterly Report (2022 Q1) for Orange County's CDBG-CV Grant The Board received the first quarterly update for calendar year 2022 on Orange County's Community Development Block Grant— Coronavirus (CDBG-CV) grant from the NC Department of Commerce. e. Community Climate Action Grant (CCAG) FY 2021-22 Protect Approval for Chapel Hill Carrboro City Schools "Creating a Solar Future for CHCCS" Application The Board: 1) Reviewed the application summary submitted by Chapel Hill Carrboro City Schools— "Creating a Solar Future for CHCCS"; 2) Received the grant recommendations for the Chapel Hill Carrboro City Schools' "Creating a Solar Future for CHCCS" project from the Commission for the Environment (CFE) and the Human Relations Commission (HRC) for the FY 2021-22 Orange County Community Climate Action Grant Program; and 3) Approved funding for the recommended Community Climate Action Grant "Creating a Solar Future for CHCCS" project for FY 2021-22 f. Litigation Settlement The Board ratified the settlement of case 22 CV 432 as previously authorized by the Board of Commissioners in closed session. g. Schools Adequate Public Facilities Ordinance —Approval and Certification of 2022 Report The Board approved and certified the 2022 Schools Adequate Public Facilities Ordinance Technical Advisory Committee (SAPFOTAC) Report. h. Re-affirm Acceptance of Planning Jurisdiction Over Two Parcels from the Town of Chapel Hill to Orange County The Board re-affirmed, by adoption of a Resolution, previous action taken by the Board of County Commissioners on March 1, 2022 to accept planning jurisdiction over two parcels from the Town of Chapel Hill. i. Proposed Sale of 129 East King Street, Hillsborough, NC The Board approved of the sale of County-owned property located at 129 East King Street, Hillsborough, NC, and the approval of a resolution authorizing the sale of the property through a negotiated offer, advertisement, and upset bid process. Regarding item 8-e, Commissioner Richards asked if that removes the remaining amount of money. 36 Steve Arndt said the allocation was for the FY21-22 allocation year. He said that in October 2021 they came to the Board for approval of the non-school portion. He said this item now takes care of the schools. Commissioner Richards asked if Orange County Schools have used their funds. Steve Arndt said that Orange County Schools did not submit anything for the FY21-22 cycle but he plans on working with them to develop proposals for the next cycle. Commissioner Richards asked if this impacts the capital plans for Chapel Hill. Steve Arndt said no. Bonnie Hammersley said half is for non-education and the other for education. She said there is no stipulation that says half has to go to Chapel Hill and half to Orange County. She said that only one grant application came in. Commissioner Richards asked if they are comfortable with the technology behind this. Steve Arndt said yes that it will be a wonderful addition to the high schools. Commissioner Bedford said that Steve has a lot of experience doing solar work. A motion was made by Commissioner Richards, seconded by Commissioner Greene, to approve item 8-e. VOTE: UNANIMOUS 9. County Manager's Report Bonnie Hammersley reminded the Board that May 26t" will be a budget work session with a presentation by Durham Tech along with other outside agencies to wind up the budget presentations. 10. County Attorney's Report John Roberts said the legislature can continue to consider bills that met the crossover deadline last year. He said one that came out of committee is HB 755, similar to a bill passed in Florida, he said that among other things prohibits discussions of LGBTQ issues in grades K-3 and establishes a long list of parental rights and access that parents have. He said a longer report will be available when filing is finished this week. He said this bill is nothing like the bill that met crossover and that they completely gutted the original and added new language. 11. *Appointments None. 12. Information Items • May 3, 2022 BOCC Meeting Follow-up Actions List • Memorandum — Financial Report- Third Quarter FY 2021-22 • Memorandum — Draft FY23 Orange Transit Work Program • Memorandum — Orange County Receives LEED Gold Certification from U.S. Green Building Council 13. Closed Session None. 37 14. Adjournment A motion was made by Commissioner Fowler, seconded by Commissioner Bedford, to adjourn the meeting at 9:42 p.m. VOTE: UNANIMOUS Renee Price, Chair Laura Jensen Clerk to the Board Submitted for approval by Laura Jensen, Clerk to the Board.