The URL can be used to link to this page

Home My WebLink AboutMinutes 05-23-2024-Budget Work Session 1 APPROVED 915124 MINUTES ORANGE COUNTY BOARD OF COMMISSIONERS BUDGET WORK SESSION May 23, 2024 7:00 p.m. The Orange County Board of Commissioners met for a Budget Work Session on Thursday, May 23, 2024, at 7:00 p.m. at the Whitted Human Services Center in Hillsborough, NC. COUNTY COMMISSIONERS PRESENT: Chair Jamezetta Bedford, Vice-Chair Sally Greene, and Commissioners Amy Fowler, Jean Hamilton, Earl McKee, Phyllis Portie-Ascott, and Anna Richards (arrived at 7:06 pm) COUNTY COMMISSIONERS ABSENT: COUNTY ATTORNEYS PRESENT: None 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 Bedford called the Board of County Commissioners meeting to order at 7:00 p.m. All commissioners were present, except Commissioner Richards. The Board reviewed and discussed: • FY 2024-25 Fire Districts' Tax Rates • Discussion of County Departments' FY 2024-25 Recommended Budgets o Public Safety ■ Sheriff o Human Services ■ Equity and Inclusion ■ Library Services BACKGROUND: The County Manager presented the FY 2024-25 Recommended Operating Budget on May 7, 2024. Since then, the Board has conducted one public hearing to receive residents' comments regarding the proposed funding plan. At the May 16, 2024 Budget Work Session, the Board discussed recommended FY 2024-25 budgets for Chapel Hill-Carrboro City Schools Board of Education, Orange County Schools Board of Education and Durham Tech Community College. This budget work session offers the Board an opportunity to review and discuss the recommended budgets directly with Fire District Chiefs and County Departments. As the Board asked for additional time to discuss the upcoming school referendum bond projects, County departments have primarily been moved to the May 28, 2024 Budget Work Session. Library Services, the Office of Equity and Inclusion and the Sheriff's Office were each unable to move to May 28t", and so will need to be discussed at this May 23rd Budget Work Session. 1. Discussion Regarding FY 2024-25 Fire Districts' Tax Rates Fire Chiefs Charles Bowden (New Hope), Jeff Cabe (Orange Rural), and Keith Hayes (Eno) were present. Deputy County Manager, Travis Myren, made the following presentation: 2 Slide#1 ORANGE COUNTY NORTH CAROLINA Budget Work Session #2 Fire Districts Sheriff's Office Equity and Inclusion and Library Board of Commissioners Work Session May 23, 2024 Slide #2 County Fire Tax District c yE Map L RIV • 12 Fire Tax Districts Three(3)Districts requesting tax rate increases FOR 6 R R L • Total FY2024-25 Recommended Fire District Expenditures ME 11 $9,407,387 • Increase of$803,051 over E N FY2023-24 AM AN E G O E N OP A HILL IP E� .N S RO S O U H A N.G JTIA.GLE -EATER CHAPEL HILLORANGE COUNTY 2AIMu5 s6uTHERN NORTH CAROLINA 3 Slide #3 Fire District Recommendations District in cents Tax Rate for FY 2023-24 Recommended IFY cents Cedar Grove 9.00 9.00 0.00 Chapel Hill 13.87 13.87 0.00 Damascus 12.80 12.80 0.00 Efland 10.28 10.28 0.00 Eno 9.98 11.98 2.00 Little River 7.39 7.39 0.00 New Hope 12.57 13.84 1.27 Orange Grove 8.27 8.27 0.00 Orange Rural 10.49 11.49 1.00 South Orange 9.09 9.09 0.00 Southern Triangle 12.80 12.80 0.00 White Cross 13.84 13.84 0.00 ORANGE COUNTY 3 NORTH CAROLINA Slide #4 Fire District Recommendations Recommended Fire District Tax Rates FY2024-25 16.00 14,00 13.67 13.64 13.84 Average 12.80 12.80 12.00 11.22 cents 11.98 ID28 10.00 9.00 9.09 8.27 8.00 6.00 4.DD 2.DD D.DD Cedar Gros Chapel Hill Damascus Efland Eno Little River New Hope Orange Grove Orange Rural South Orange Southern While Cross Triangle 4 ORANGE H COUNTY Y Travis Myren said that there is a statutory maximum rate of 15 cents, but just like the county's tax rate, fire district tax rates will go down with property revaluations. 4 Slide #5 Fire District Recommendations Recommended Fire District Tax Rates and Revenue $zs00,000 16.00 14.00 $z aoo,aoa 12.00 FY2024-25 Tax Revanua $1,500 000 10.00 8.00 $1.000.000 FY2024-25 6.00 Tax Rate 4A0 $500.000 — 2.00 so d "00 Cedar ChapeIHAlOanesas Efiand Eno Ud1a River New Hope Orange Orange South Southern White Grove G— Rur2: Orange Triangle Cross ORANGE COUNTY 5 NORTH CAROLINA Travis Myren said the wealth within the fire district also influences the revenue that can be generated with each fire district tax rate increase. Slide #6 Fire District Recommendations • District Requests — page 158-161 • Eno Fire District • Orange Rural Fire District — 2.00 cent tax rate increase — 1.00 cent tax rate increase — Hire three(3)full time staff — Increasing personnel costs for existing — Acquire land for new Station employees • New Hope Fire District — 1.27 cent tax rate increase — Increasing personnel costs for existing employees �1 6 ORANGE N COUNTY NA Commissioner McKee asked if calls for service are also increasing. Chief Cabe said calls have increased for Orange Rural. Chief Hayes and Chief Bowden said the same is true for their departments. Commissioner McKee said even in 2010, they were discussing having to move to paid staff for Caldwell Fire Department. He said he imagines the demand will continue to grow. He asked if the departments are thinking they will also have to move to fully paid staff. 5 Chief Cabe said Orange Rural has only one volunteer and a volunteer board. He said the rest are paid staff. Chief Hayes said there are a lot of paid part time employees for Eno, but still not enough to cover the needs. Chief Bowden said New Hope has a few volunteers and allows those who live outside the district to volunteer. Commissioner Richards arrived at 7:06 pm. Commissioner Hamilton asked what needs make up personnel costs. Chief Cabe said Orange Rural has a standard 4% raise for inflation and budgets 20% for insurance increases. He said a 5% match is given to 401 ks in an effort to keep people from going to government. He said Wake County has people starting in the $50,000 range vs. their $35,000 range and it is a challenge. Chief Hayes said Eno pays an hourly rate and is hoping to be able to move to salary. Chair Bedford thanked them all for the work they do and encouraged any interested commissioners to become the liaison to the Fire Chief's Association. She asked for an update on the training facility issue. Chief Cabe said there was a plan to develop a transfer station on Chapel Hill Town land where a training facility is currently located. He said if the transfer station is built, the backup plan is for the training facility to go back to White Cross Fire Department. Travis Myren said there had been some discussion about siting a transfer station where the current training facility is located. He said as discussion for the Solid Waste Master Plan unfolded, the Solid Waste Advisory Group indicated that it would not be imminent if it happens. Chair Bedford encouraged the Chiefs to be in contact with the County Manager's office to keep them informed of any immediate staffing needs. 2. Discussion of County Departments' FY 2024-25 Recommended Budgets: Sheriff, Equity and Inclusion, and Library Services Deputy County Manager, Travis Myren, continued the presentation: Slide #7 Capital Investment Plan Questions — Soccer.com expense and revenue Expense $424.577 $431,964 Revenue $147,027 $126,875 General Fund Impact $277,550 $305,089 — Effand Cheeks Community Center Expansion • $150,000 recommended for 360 square foot expansion • New Planning Department Review — By right expansion capability of approximately 2,700 square feet(reduced if more parking is required) — Recombine parcels to include school property to create"common development' — Impervious surface transfer—place conservation easement on property in the same watershed ORANGE COUNTY 7 NU]'I 1 I CAROLINA 6 Chair Bedford asked if this includes debt service on Soccer.com. Travis Myren said no. Commissioner Richards said they hear about a tremendous demand for fields, and asked if there is a way to reduce the amount of subsidy. Travis Myren said he has asked David Stancil to compare rates with neighboring facilities to determine if an increase is needed. Slide #8 Capital Investment Plan Questions — Electric Mower Comparison Mower Type cost Useful Life Maintenance Neg. Diesel Mower $23,609 3,875 hours Fuel,filters, Noise, leaks emissions Electric Mower $39,033 6,000 hour Battery Electricity ($5.855)directoavrebate battery life recharge consumption $33,178 net cost — Blackwood Farm Park Security Cameras • Installed in FY2023-24 using Department operating funds • Staff amendment to remove$6,000 in Year 3 $ ORANGE COUNTY Travis Myren said that Commissioner McKee requested information on rebates for the mower and provided a breakdown showing the rebate. Slide #9 Capital Investment Plan Questions — Solar Installation Payback Benchmarks • Southern Human Services payback estimate—16 years • North Carolina average payback estimate—13 years • Lifespan of a solar system—25 years — Funding for low income housing repair and renovation work • General Fund allocation in Housing Operating Budget $100,000 • Grant funding from NC Housing Finance Agency $130,000 • Total available funding, if approved,for FY2024-25 $230,000 — Proposed new Sustainable Building Policy(see page 185) ORANGE COUNTY 9 NORTH CAROLINA Commissioner McKee asked to return to slide#8. He said 6,000 hours is a lot on a mower and if the battery lasts that long it will likely outlast the mower parts. Travis Myren said he took that number from the spec sheet of the model. He said the number of hours for the diesel mower is based on DEAPR's experience. He said that the useful life shown is based on their actual experience. Slide #10 Public Safety • Sheriff's Office — page 212 • Total expenditure budget-$21,147,133 — $797,965 increase in net County costs • Recommended Budget Changes — Increase budgeted revenue to align with actual collections » Report reproduction—($180,000) » OCS School Resource Officers($70,000) — Overtime increase better align with actual expenditures » Overtime expenditures-$1,146,090 » Revenue offset-$248,125 — Contract services increases-$150,000 » Vehicle maintenance » Detention Center medical contract » Mobile communications maintenance ORANGE COUNTY 10 NORTH CAROLINA Sheriff Blackwood and Chief Deputy Tina Sykes were present for the presentation. Travis Myren continued the presentation. He said that the Sheriff's Office is the 2nd largest office that is funded by the county. He said that Public Safety is a good part of the priorities and budget every year. He explained that Deputies that serve as School Resource Officers are funded by the Orange County School District for the elementary schools. Slide #11 8 Public Safety • Overtime with Offsetting Revenue Overtime 1,800,009.00 1,597,039.82 1,600p00.00 1.400.000.00 1,200,000.00 1,083,270.00 1,0001000.00 800.000,00 710,010.39 600,000.00 400.000.00 290.97282 303,125.00 208,216.99 212,238.34 200A00.00 0,00 105 -- ■ ■ FY 22 Actual FY 23 Actuals FY 24 To date FY 25 Reeornmene •Special Event Revenue •Overtime ORANGE COUNTY 11 NORTH C.AROLINA Vice-Chair Greene asked ----------- Kirk Vaughn, Budget Director, said ---------------- Slide #12 Public Safety • Contract Services contract Services 1,400,000.00 1,200,000.00 1,181.581.25 1.153.530.00 1,123.077.67 1,000,000.00 954,980 34 800,000.00 649.794.11 600,000.00 400,000.00 200,000.00 0.00 FY 21 Actuals FY 22 Actual FY 23 Actuals FY 24 To data FY 25 Reoomtnand ORANGE COUNTY 12 NORTH CAROLINA Commissioner Portie-Ascott asked if staff in the towers at the detention center are considered as part of the mobile communications. Sheriff Blackwood said radio equipment is extremely expensive. He said they are $12,000 now and every deputy has one and there is one in every car. 9 Commissioner Portie-Ascott said when she toured the detention center last year, she learned about the staffing there. She asked if there is still only one person in the tower. Sheriff Blackwood said they added a few last year but they are still not fully staffed. He said there is a new staffing study underway. Chief Deputy Sykes said that if staffing allows, they try to have two people in the tower. Commissioner Richards said she understands there is a change in the system for accounting, but it seems like overtime has also increased. She asked why that is. Sheriff Blackwood said overtime is built into the schedules of deputies. He said a huge portion is UNC Football and NCDOT overtime and they get paid back for those. He said that there were times that deputies were abusing the privilege, but now there is a policy in place that dictates when deputies can clock in. Chief Deputy Sykes said she cross references clock ins and outs with geo-tracking. She said there are checks and balances to make sure its accurate. Commissioner Richards asked if preapproval is needed for overtime. Chief Deputy Sykes said there is scheduled overtime for deputies just as there is for EMS. She said anything above a 12-hour day, that is additional hours that is paid at an overtime rate. Commissioner Richards said policy and procedure would determine the way that overtime is permitted and paid, and the software would only reflect what is put into it. Chief Deputy Sykes said they get paid for the hours they work and any training hours. Sheriff Blackwood said if someone turns in overtime it is reviewed and approved based on policy. Commissioner Richards said it looks like the budget number is somewhat off in certain areas that are going down like larceny. Sheriff Blackwood said they met today with the Dodge dealership, and they have been discussing maintenance costs. He said that the Dodge dealership and another company have provided quotes. He said that it became apparent that shopping around every 5 years for contracts is a good idea. He said he is also looking at inmate medical costs. He asked Chief Deputy Sykes to provide more information. Chief Deputy Sykes said at the end of the year, they run out of money, and they hope to run that better and make sure that they are not switching money from bucket to bucket. Commissioner Fowler asked if there is a policy for contract renewal and putting things back out to bid. Travis Myren said the Sheriff doesn't have to adhere to the policies of the county, but Sheriff Blackwood is interested in doing that. Commissioner McKee asked if Sheriff Blackwood is running into the same issues with starting salaries vs. neighboring counties. Sheriff Blackwood said it wasn't an issue at this time last year, but there is a lot of competition. He said regardless, they are doing a great job of recruiting staff, and they are attracted to his office because of reasons above just pay. Commissioner McKee said he understands that overtime is built in, but asked if additional staff would alleviate that. Sheriff Blackwood said he has two openings in the jail and six in the patrol division. He said he has no room to put any additional staff and are out of space. Chief Deputy Sykes said in the detention center, additional staff would help alleviate overtime, but not on patrol. Travis Myren said Matrix will look at that with the staffing study. 10 Slide #13 Public Safety • Detention Center Population Detention Center Population Point in Time 140 120 100 80 •state serving 60 - - - - •Federal ■Prelnal 40 20 0 RRRRRRRRRRRR&r� nR�Rro�R�r�rvR�RrvnnRrroRRRR�3�n� b m N ry ? d L t 2'- �& i b c b : ?7 R&a i b -,LL2$34�a'yaz`o"°LL�$��a'rnoza4�i1$2'-¢'�noz`a4LL�$s4�a'rnoz'o4LL2'$ ORANGE COUNTY 13 NORTH C:AROLINA Travis Myren said will have to keep an eye on revenue and monitor the federal inmate reimbursement. Sheriff Blackwood said the federal system started keeping the inmates. He said they negotiated a reasonable fee, years ago, but that money is slowly stopping. He said they have called but have not received a call back. He said that this will likely cycle back around. Commissioner Richards said she thinks the staffing study will help give them perspective. She said there was a vision about how the center would work so coming back and reviewing that is always a good thing. Travis Myren said he will be sending an invite out to the Board to meet with consultants. He said that will likely be next week. Slide #14 Human Services • Office of Equity & Inclusion— page 151 • Total Expenditure Budget-$433,771 - $1,177 decrease in net County costs compared to Base Budget • Budget reflects the reorganization of Fair Housing staff to Housing Department • Language Access Plan-$17,000 » Assessment&Review » Training&Capacity Building » Resource Allocation&Improvement n Implementation n Monitoring&Evaluation » Feedback&Continual Improvement • Offset by base budget operating reduction-$18,177 _ ORANGE COUNTY 14 NORTH CAROLINA 11 Travis Myren introduced Office of Equity and Inclusion Interim Director, Courtney McLaughlin. Slide #15 Human Services • Office of Equity & Inclusion Number of Limited English Proficiency Outreach Activities 70 60 50 40 30 20 10 0 FY2017-18 FY2018-19 FY2019-20 FY2020-21 FY2021-22 FY2022-23 FY2023-24 Proj FY2024-25 Budget ORANGE COUNTY 15 NORTH CAROLINA Courtney McLaughlin said this year is important to center the language access components across the county. She said they got to see what it would look like to centralize those services during the pandemic and want to assess what went well during that period and how to improve from there. She said outreach activities increased during that time, which is when departments were working together. Commissioner Fowler asked what is meant by language access services. Courtney McLaughlin said it is both direct interpreters and translators and the language access phone line that can be used for on demand support within a department. Commissioner Hamilton asked if there will be a consultant for the Language Access Plan. Courtney McLaughlin said part of the planning will include bringing staff that are already providing these services together to assess current services and examine strengths and weaknesses, and a consultant will help facilitate that process. She said the goal is to have a clear and cohesive plan so that all staff are on the same page on how to get assistance to provide better service to the community. Commissioner Hamilton asked what the current cost is for translation services. Travis Myren said part of the issues is that currently, costs are being paid through different department budgets. He said there isn't currently a central location for these services. Courtney McLaughlin said part of the assessment will be looking at current costs. Vice-Chair Greene said the plan sounded very exciting. Courtney McLaughlin said the other component is adding plain language into the work using the One Orange Racial Equity framework. Commissioner Richards asked if there is a dispersed plan within departments for the One Orange plan. Travis Myren said the work hasn't gotten to a point where departments are implementing One Orange initiatives. 12 Courtney McLaughlin said that isn't happening at this time, but this is a goal for the department over the next year. Commissioner Richards said it seems that the work slowed down and she would like to see how that will be implemented. She asked if that is part of the plan for the next year. She said the intention is that the department will be able to facilitate training and reactive those who have previously been part of the GARE team, so they can be part of implementing the work. Travis Myren said focuses for next year include how to drive racial equity work forward and what that looks like and the other portion is community engagement and how county staff interacts with diverse sections of the community. Commissioner Fowler said there are subcommittees on the Board of Health working on the various issues uncovered in the Community Health Assessment. She said previously, equity was a specific subcommittee, but now all subcommittees use an equity lens in their respective work. She said hopefully other departments are doing that too. Courtney McLaughlin said part of the budget process is looking at how requests impact equity, so all departments are using it to some extent. She said the next phase is getting everyone on the same page as far as tools they are using, how empowered people feel to use the tools, and feeling more connected as an organization when working on racial equity efforts. Travis Myren said the Board doesn't see this, but if a department is requesting any new initiatives as part of the budget process, they must fill out a racial equity questionnaire, which are taken into account in the recommended budget. Commissioner Portie-Ascott asked if the department's work is more internal facing now that the fair housing staff has moved to Housing. Courtney McLaughlin said the office is also a part of the One Orange group with municipalities, partners with community agencies with similar goals, and staffs the Human Relations Commission. Chair Bedford said at the Assembly of Governments meeting, there was a request to change the presentation of data in the Equity Index. She asked if that had been done. Courtney McLaughlin said they are looking at making the dashboard user-friendly and timely in the next phase of the work. Slide #16 Human Services • Library Services — page 183 • Total expenditure budget-$3,490,734 — Net County costs increase by$617,545 compared to Base Budget • Living wage increase for Temporary Employees-$27,229 • Southern Branch Library Operating Expenses — Occupancy date October 1,2024 — Six new staff and increasing 0.652 FTE of existing Cybrary staff-$407,702 — Temporary staffing-$35,300 — Operating costs for materials,supplies,other resources-$147,314 — Library share of building operating costs-$77,540 — Total budget impact-$667,856 • No change in contribution to Chapel Hill Library-$621,323 16 OPA GE C:0UN�TY 13 Chair Bedford asked the status of the HOA agreement for the building. Travis Myren said that is currently being negotiated. Commissioner Fowler asked if the Cybrary will still be open or if that staff will transition to the new library. Erin Sapienza said the Cybrary will close, and those staff will be at the new library. Commissioner Fowler asked if the building the Cybrary is currently in is owned by Carrboro and what the plans are for it. Erin Sapienza said that building is owned by Carrboro. She said Carrboro's Recreation and Parks Department will go to the new facility and the Carrboro Police Department will take over the entire Century Center where the Cybrary is currently located. Commissioner Richards asked for a snippet of the vision of operations at the Southern Branch Library. Erin Sapienza said this will be a full-service library, with a full collection of 40,000 items, programming for youth and adults, digital literacy, meeting space for independent or group use. She said the Teen Center will be in the building so there will be space for teens to come in, hang out, and engage in library services. She said it will be open for 60 hours a week with the same service hours at both library locations. She said staff has ramped up outreach and have participated in events to get people signed up for library cards. She said she has also done some media interviews to get the word out and answer community questions. Chair Bedford asked how parking is going to work. Travis Myren said as part of the development agreement, there are 50 spaces dedicated for county use for library patrons and those visiting the Skills Development Center. Slide #17 Human Services • Library Services Library Circulation Physical and Digital Collections soo.000 �oo.000 — goo.000 soD,DDD 400,000 - •Physical ■Digital 300,000 200,000 100,000 FY2017-18 FY2018-19 FY2019-20 FY2020-21 FY2021-22 FY2022-23 FY2023-24 Praj FY2024-25 Budget ORANGE COUNTY 17 NORTH CAROLINA 14 Slide #18 Human Services • Library Services Visits to Main Library 250 000 223.D96 223,500 fl 206,565 200,000 185,641 184,548 150,000 107,59fi 98,938 100,000 100,000 11 65,791 50,000 01 15,000 FY2014-15 FY2015-16 FY2016-17 FY2017-18 FY2019-19 FY2019-20 FY2020-21 FY2021-22 FY2022-23 FY2023-24 Proj FY2024-25 Budget ORANGE COUNTY 18 NORTH CAROLINA Slide #19 Human Services • Library Services Visits to Carrboro Library Resources 80,000 70,000 70,000 60,000 50.006 40,000 39,095 40,492 3fi 431 �186 34,045 30.000 20,000 18,332 13,255 10,000 2,200 FY2013-14 FY2014-15 FY2015-16 FY2016-17 FY2017-18 FY2018-19 FY2019-20 FY2020-21 FY2021-22 FY2022-23 FY2023-24 FY2024-25 Proj Budget ORANGE COUNTY 19 NORTH CAROLINA 15 Slide #20 Human Services • Library Card Holders by Jurisdiction Chapel Hill Public Library Orange County Public Library data Number of Percentage of Number of Percentage of Cardholders Total Cardholders Total Carrboro 10,314 22.5% Carrboro 5,769 12.7% Hillsborough 638 1.4% Hillsborough 6,502 14.4% Mebane(OC) 94 0.2% Mebane(OC) 1,366 3.0% Unincorporated Orange County 5,773 12.6% Unincorporated Orange County 16,304 36.0% Chapel Hill 26,043 56.9% Chapel Hill 9,847 21.8% Other 2,917 6.4% Other 5,469 12.1% 0i i ORANGE COUNTY 20 NORTH CAROLINA Chair Bedford said one of her interests is to use the new building for white flag shelter nights and knows staff is working on that. Slide #21 Questions ORANGE COUNTY 21 NORTH CARC3LINA 16 3. Discussion of Bond Referendum Projects BACKGROUND: At its January 2024 retreat, the Board of County Commissioners signaled its preferences for a proposed school bond. The Board set on a $300 million Bond Referendum which, with existing resources and $100 million in Pay-Go funding, would be sufficient to fund Option C of the Woolpert Long Range School Optimization Plan. The Board also signaled a preference for a project-based allocation of capital funding to ensure that the Woolpert priorities were met. Since then, County and school staff have worked with Woolpert to align the long-term plan with the current capital spending plans. At the Board's May 7, 2024 Business meeting, County staff presented the statutes and policies that dictate school capital funding. At the May 21, 2024 Business meeting, the Board received presentations from both the County and the two Districts on their preferred spending plans on the bond. This work session offers the Board an opportunity to review and discuss the respective plans, as well as well as the Board's preferred role for the County in directing and managing the upcoming Bond Referendum. The Board will be expected to formally vote on its decision at the Board's June 4, 2024 Business Meeting. Travis Myren made the following presentation: Slide #1 Agenda Item 3. ORANGE COUNTY NORTH CAROLINA Discussion of School Capital Plan and Next Steps Board of Commissioners Business Meeting May 23, 2024 17 Slide #2 Decision Points • Three Plans — Woolpert — Chapel Hill Carrboro City Schools — Orange County Schools • Key Questions — Which set of projects should be included in the ten year capital plan — What category of projects should be budgeted by project instead of ADM �1 z ORAN GE COUNTY Slide #3 Which Projects? • Wool pert Approach — "Newer, Fewer Schools" — Educational Adequacy Definition • Buildings have all key learning and support spaces as defined by NCDPI standards • Learning and support spaces are at least 90%of the size recommended in NCDPI standards- - High Priority Needs Definition— Priority Levels 1-3 • Level 1 —Critical—Failure of components impact the facility's ability to remain open • Level 2—Essential—Failure of components impact the health of major systems (i.e.leaking roofs) • Level 3—Necessary—Failure of components could impact the facility's efficiency and usefulness • Level 4—Suggested—Systems that can improve the facility environment. • Level 5—Improvements—Aesthetic Improvements like painting, carpets or signage. ORANGE COUNTY 3 NORTH CAROLINA Commissioner Richards asked where life cycle maintenance fits in here. Kirk Vaughn said it would depend on the item that is reaching the end of its useful life. Travis Myren said if HVAC has ten years and it is nine years old, it would be a priority. Commissioner Richards said when she looked at the list of projects, life cycle is used often. She asked if there are major systems in every school that will need attention. 18 Travis Myren said throughout the course of the 10-year plan there are planned high priority needs budgets that are sequenced from years 1-10. Slide #4 Which Projects? • Chapel Hill-Carrboro City Schools Approach Move Ilnil J Replace McDougle ES dual language Culbreth MS, ! M5 students Spanish programs Replace ssudenls on-slle to new MS toWDouglecampus 'L"r oro ES rK Focus on"priority"maintenance D� projects identified by Waalpert ��7 and District. Q.� 9ulld More McDougle ES FPGfallduallanguagel Students Move Addressing new MS students to nowathicDougle, return Estes Hills ES FPG,Estes Hdls malncenance Address operational efficiencies other ESechools mcarrbcro ESswdents toalbnew students no longer or replacement through replacement/consolidation wlrh[npanry swmglnmemmy FM Coal, nFS ro newer scho* needed as remaining s[hools of existing schools. �• I•_ _fi �� REFERENDUM 0 F CHCCS Approach Aligns with Woolpert Recommendations �1 ORANGE COUNTY 4 NORTH CAROLINA Slide#5 Which Projects? • Orange County Schools Approach Improve Educational Adequacy: .. . ImprovedNew and AddressAssessments,Staff Knowledge as Address High-Priority Basis for Recommendations I Facility Needs SchoolsBest Possible Versions of Recommendations All ORANGE COUNTY 5 NORTH CAROLINA 19 Slide#6 Which Projects? • Orange County Schools Approach - More broad based • Does not fund new Orange Middle School-$66 million savings • Does not fund renovation/expansion of Central Elementary-$27 million savings • Applies the savings to fund Level 4 and Level 5 Projects • Examples — Orange High School Paving,Ag Building Connector — River Park Elementary Flooring — Partnership Academy Expansion — Grady Brown Elementary Interior Classroom Walls — Kitchen ORANGE COUNTY 6 NORTH CAROLINA Commissioner Portie-Ascott said it does not include the expansion of Central Elementary or the new Orange Middle. Travis Myren said that is a choice that was made by the school system. He said they decided to spend the money throughout the district instead of on two projects. Chair Bedford said that is up for discussion tonight so that if they disagree, it can be sent back to the districts. Commissioner Portie-Ascott said the report indicated that 70% of the EC classrooms are too small. Kirk Vaughn said the Woolpert Plan addresses EC classrooms through renovations and replacement. He said that when a new facility is built, then the spaces are correctly sized for modern education. Chair Bedford said the school boards can reposition classrooms to the new school. Commissioner Portie-Ascott asked if in the meantime EC students would have to wait. Chair Bedford said they will, but everyone has to wait. Commissioner McKee said the wait time would be determined by when the improvements occur. Commissioner Richards said some projects said improve classrooms, but she could not find details about when. Travis Myren said based on the different approaches, he created 2 different options. 20 Slide#7 Which Projects? • Primary Decision Points on Approach — The decision on number of new facilities will determine amount available for all other projects • Option 1 New Elementary School New Orange Middle School — Central Elementary Partial Rebuild or identify other ES priorities — Apply remaining funds to Level 1,2,and select Level 3 priorities • Option 2 New Elementary School Apply funds to Level 1 and 2 priorities first — Apply funds to Level 3,4,and 5 projects ORANGE COUNTY 7 NORTH CAROLINA Commissioner Fowler said she liked that you could see the age of the school in CHCCS's presentation. She said it also showed the FCI index. She said she can't tell how Orange County's plan moves the needle. She asked if there is a way to know that. Travis Myren said not without a new analysis. He said it was provided by Woolpert in Chapel Hill's presentation. Vice-Chair Greene said she is leaning toward Option 1 with a new elementary school and Orange Middle School. Commissioner Portie-Ascott said she is also leaning toward Option 1. She said when the Board discussed putting the bond on the ballot, it was to address those needs. Commissioner Fowler said it is difficult to tell what they are comparing, but there is a better chance of getting what they want with Option 1. Commissioner McKee said he doesn't remember the price on the Central Elementary rebuild. Travis Myren said it will be $27.3 million. He said the reason it's less than a new elementary school is some redone portions would be maintained. Commissioner McKee said the reason he asked is to estimate the 60/40 split, it seems that Orange County is eating up their entire budget on just three projects. Travis Myren said he could get the Board a number for what is left over for high priority needs. Chair Bedford said all of the numbers are based on the $300,000,000 bond, the $100,000,000 pay-go, the lottery proceeds, the leftover proceeds from the old bond, the deferred maintenance, and the ongoing funds they get every year. Commissioner McKee said that would spend the entire budget. Commissioner Fowler said that her math was different. Chair Bedford said the number for Orange Middle School is different than the study. She asked if the $66 million figure is a correct, revised number. Kirk Vaughn said that number reflects the discussion regarding the two options and that $48 million is not sufficient to rebuild the middle school, so $66 million is in the right range. Commissioner McKee said he was going through the figures presented tonight. Commissioner Richards said the idea of the bond is to do the big stuff. 21 Commissioner McKee said he does not disagree. He said that getting schools up to adequate safety is important too. He said he doesn't want to put funds into schools that will only get 10 more years of useful life. Chair Bedford asked what school he is referring to. Commissioner McKee said Grady Brown. Travis Myren said there would be about $84-85 million left for other projects. Chair Bedford said she thought they should follow Woolpert and every school has to have basic safety/fire etc. and then the remainder of the funds can go back to the school board to determine allocation. She said that they can still do levels 1,2,3, but not 4 and 5. She said those must wait. She said Orange County is going to have to do a redistricting. She said that the school board can look at safety needs and bring those back. Commissioner Richards said Grady Brown is $16 million and there is money to do that. She said that they will still have the funds to prioritize that if they wish. Travis Myren said there was confusion about the Central plan. He said that it never planned to merge the two schools. Kirk Vaughn said the use of the word consolidation confused that. Commissioner Hamilton said she wishes there was an option 3. She said she feels a little unclear and they didn't get the details on it soon enough to be able to dig in. She said that seeing sequencing provided by CHCCS and output numbers really helped to clarify what they are trying to do, and not having that from OCS is difficult. Chair Bedford said what OCS did was that instead of following Woolpert's recommendation, they came up with their own list and she said that is putting lipstick on a pig. She said that's the same plan. She said buildings just keep aging. She said she wants to see a new elementary school. She said that they will need to go back to the school board and have them lay out high priority needs and let the school board identify other priorities. Chair Bedford said OCS's approach wasn't what she expected or wanted in order to not keep kicking the can down the road. Commissioner Fowler said Option 1 does give OCS some leeway on the Central rebuild and their point about not replacing Orange Middle School because there was 7-10 years of warranty left, but the plan replaces that around 7 years. She said that there are other schools with open design, and they have to be addressed. She said she agrees with Option 1. Commissioner Hamilton said she agrees that the Woolpert principles are what they paid for and asked for. She said that the schools need to follow that. She said that she would like another option for OCS to bring something closer to the plan. Commissioner Richards said the decision goes back to why the Board decided to spend the money for Woolpert. She said they wanted an objective look at the schools and total assessment of facilities in the county for their children. She said when they start educating people about the bond, it's important to go back to that principle. She said that she does not do see how that is possible by spreading it out to all the schools. She said even though she voted against the study initially, she thinks it was important to get to this point and they need to remain focused on why they started this process. She said she is supportive of Option 1. Travis Myren said even within Option 1, the county will not prescribe high priority items. He said those will be selected by the school system. Commissioner McKee said he agrees with Commissioner Richards's points. He said he supports Option 2 but whatever decision they make, he just wants to get the longest life out of the buildings. He said his fear is if they go with both new, they will burn out a lot of the funds. He said that safety is his number one objective. Chair Bedford said that Grady Brown proposed plumbing and some mechanical and adding interior walls. She said it did not include connecting any buildings. Chair Bedford said the school system can decide on the sequencing which high priority need to address. 22 Commissioner McKee said that he would have been a lot clearer on the presentation on Tuesday night if they had shown the sequencing. Chair Bedford agreed. She said that it is great we have options. She said it seems they are all agreeing on Option 1. Commissioner McKee said he does not care which option, as long as it helps the children be better equipped and kept safe. Chair Bedford said they can bring options because they have the expertise. She said they must review programming, transportation, and staffing and it is a year-long very involved process. Commissioner Hamilton said she supports Option 1 and encourages the option with flexibility because of the unknown. Commissioner Fowler said that the sequencing really gives all of that. Kirk Vaughn said it would be a new building on the same site. Vice-Chair Greene said the flexibility is letting them rebuild Central or identifying other elementary school needs. Travis Myren continued the presentation: Slide #8 Project Based Budgeting • Which categories should be budgeted by project? I Project Types Major Projects Bond and Annual Pay-GO $344 million Replacements • Major Renovations • Partial Rebuilds High Priority Needs Remaining Bond/Pay-GO $213 million Major System Replacements • Annual Maintenance Roof Replacements Lottery Proceeds Fire and Sprinkler Systems Existing Capital Balances Room Renovations Supplemental Deferred Maintenance Other Capital Projects Article 46 Sales Tax $72 million Technology Recurring Capital Flooring • Athletics • Leases • Component Maintenance $ ORAN GE COUNTY Chair Bedford inquired and the Board agreed they don't need project-based for other capital projects and to do project based for major projects. Commissioner Fowler said they previously agreed to major projects that were presented to them and asked if that is changing. Travis Myren said he does not mean that they are changing. Commissioner Fowler asked if it was the same as they saw at the retreat. Travis Myren said it is from the Chapel Hill plan that was submitted to the Board on Tuesday night. He said that they are not providing ambiguity as to what those projects are and they are as they were presented. He clarified that the total shown is a combination of the projects from both plans. Commissioner Richards said she wants to do project-based for Major and High Priority. She said standards definitions would be important. She said she would like it to be clear how a project falls in a category. Commissioner McKee said the split for major projects is essentially still 60-40. He said he would still prefer to do ADM for high priority needs. 23 Chair Bedford said she doesn't because of the 1,000 charter students. Commissioner McKee said but that does not change that a roof is a roof and if it needs replaced, that will be on an Orange County school. He said that he doesn't want to use charter students as an excuse because the buildings still need to be taken care of. Chair Bedford said that there is so much underutilization due to charter students that an entire facility could be closed, and they would be ok. Commissioner McKee said that is today. He said that people are moving into Orange County daily and that will have an impact on school needs. Chair Bedford said she is concerned about this board having the ability to provide oversight and thinks they can do so with a project-based approach. She asked if it is correct that they stick with the ADM for the entirety of the bond. Travis Myren said yes. Chair Bedford said that with pay-go, it can be spent on any need. Commissioner Fowler asked how the major projects split. Chair Bedford continued that it would be 58.6% for Chapel Hill and 41.4% for Orange County. She said that would be a benefit of combining the two as project based and saying that is the split. Commissioner Fowler said she would say yes to the project-based split with major and high priority. Commissioner Hamilton clarified that if they choose project-based budgeting and once they are given the plans, using the 59%/41% split, would they have to bring back the projects to the Board for final approval. Travis Myren said they would take the funding policy back to the Capital Needs Work Group and try to craft a plain language direction from the Board's discussion tonight. Commissioner Portie-Ascott said she agrees with project-based for major projects. Commissioner Hamilton said a new school is needed to replace an old school. Vice-Chair Greene said having a new elementary and middle school would attract students and faculty. She said she wants project-based for the first 2 categories. Slide #9 Chapel Hill Carrboro City Schools 10 year Capital Plan FY 25 FY 26 FY 27 FY 28 FY 29 FY 30 FY 31 FY 32 FY 33 FY 34 NEW MS Replacement School $ 6,973,709 $ 12'763,385 arrboro ES Replacement School $ 4,827,466 $ 43.447,155 ulbreth MS Replacement School $ 6,973,709 $ 62,763,385 enix Pho Academy High Pnority Needs $ 5,711.468 Estes Hills ES Consolidate $ 1,228,933 Frank Porter Relocate Program $ 1,410,347 raham ES (consolidate building) MCOOu91E ESIMS Fire Alarm System, $ 14,333,834 Fl:tri 1,HVAC,Centrel$ anboro HS Roof $ 6,796,666 Rashkls ES Fire Alarm System,Control$, $ 5,617,637 AHUs croggs ES Roof,cooling 1—re,AHU, $ 4,237,745 Ore suppression system Phillips MS Panelboards,ductwork,heat $ 3,585,451 pum wa ps, ter heater Morris Grove ES Fire Suppresion system,Fan $ 3,841,361 Coil utins,AHU Partial-Sprinkler system, hapel HIII HS Fire Alarm system,Electrical, $ 7,349,261 HVAC,Roofing,window$ mith MS Partial-AHU,COntm ill fire $ 9,795,474 suppreslon system Ephesus ES Ro,,Roof Exhaust,Roof lop S 3 995207 $ 3,995,207 Partial-Sprinkler system, hapel Hill HS Fire Alarm system,Electrical, $ 1,285,140 HVAC,Roofing,windows mlth MS Parial-AHU,Controls,fre $ 2,114,056 suppreslon system ORANGE COUNTY 9 NORTH CAROLINA 24 Slide #10 Orange County Schoolsi year Capital Plan FY 25 FY 26 FY 27 FY 20 FY 29 FY 30 Fy 31 FY 32 Fy 33 FY 34 Central Elementary Partial Rebuild $ 2,725,818 $ 24,532,362 Orange MS Replacement5chool $ 608,533 $ 59,476,797 New Hope ES High Prionty Needs $ 2,976,418 New Elementary New School School $ 4,827,465 $43,447,185 Hillsbomu gh ES Consolidate $ 1,274,423 ,L,Stanback MS Partial-PA System,Fire $ 11,554,526 Alarm system,panelboards Grady Brown ES Flre Alarm system, $ 2A87,015 Panelboards L Stanback MS Partial-PA System,Fire $ 1,457,840 Alarm system,panelboards Gravelly Hill MS Firearm System,Interior $ 4,890,766 $ 2,855,843 Paint River Park ES PA System,Panelhoerds $ 2,782,584 Maintenance Controls,Panelboards,AHD $ 364,703 Department Pathways ES Fire Marra System, $ 2549.214 Transformer ranspodation Roof $ 855,979 Department Wel come Center Life Safety System,Rcaftop $ 722,050 units 10 ORAN HE COUNTY Slide #11 Questions ORANGE COUNTY 11 NC31VI-H C_ARC'1LJ24A Commissioner Fowler said they talked about a fund balance policy last year. She asked if they were not this year because there were none of those funds. Travis Myren said that's correct. Commissioner Fowler said they have talked about OPEB in the past and asked if that would be part of this budget. 25 Bonnie Hammersley said she didn't recommend one for OPEB this year due to lack of resources. A motion was made by Commissioner Fowler, seconded by Vice-Chair Greene, to adjourn the meeting at 9:31 p.m. VOTE: UNANIMOUS Jamezetta Bedford, Chair Recorded by Tara May, Deputy Clerk to the Board Submitted for approval by Laura Jensen, Clerk to the Board