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HomeMy WebLinkAboutMinutes 01-21-2025-Business Meeting 1 APPROVED 2/25125 MINUTES ORANGE COUNTY BOARD OF COMMISSIONERS BUSINESS MEETING January 21, 2025 7:00 p.m. The Orange County Board of Commissioners met for a Business Meeting on Tuesday, January 21, 2025, at 7:00 p.m. at the Whitted Human Services Center in Hillsborough, NC. COUNTY COMMISSIONERS PRESENT: Chair Jamezetta Bedford, Vice-Chair Jean Hamilton and Commissioners Marilyn Carter, Amy Fowler, Sally Greene, Earl McKee, and Phyllis Portie- Ascott COUNTY COMMISSIONERS ABSENT: None. COUNTY ATTORNEYS PRESENT. John Roberts COUNTY STAFF PRESENT: County Manager Travis Myren, Interim Deputy County Manager Caitlin Fenhagen, and Clerk to the Board Laura Jensen. (All other staff members will be identified appropriately below) Chair Bedford called the meeting to order at 7:00 p.m. All commissioners were present. 1. Additions or Changes to the Agenda A motion was made by Vice-Chair Hamilton, seconded by Commissioner McKee, to remove the closed session and add item 4-b, a Resolution Regarding an Air Permit Application Request from the University of North Carolina at Chapel Hill, to the agenda, and to move item 8, Consent Agenda, to be considered after item 4, and to move item 6-c to before item 6-a. VOTE: UNANIMOUS Chair Bedford did not read the public charge. 2. Public Comments (Limited to One Hour) a. Matters not on the Printed Agenda Kari Hamel said she would like the school construction policy to be a discussion only item for the night. She asked the public to have more opportunity to provide meaningful input to the revised recommendations. She asked for the page number for the night's agenda to find out the current policy. She said a high number of children are not proficient in math or ELA in both Orange County School District and the Chapel Hill Carrboro School District. She said that the energy being given to the construction lens seems outsized when compared to the real struggles faced by youth such as school absenteeism and poor special education services. She said that the Chapel Hill High School construction project is over budget my millions of dollars. She said that the proposed revisions to the construction policy do not contain the guardrails needed for the public to reasonably know what business the county is undertaking with taxpayer dollars. She said that county-based inspector general role, a public dashboard with real-time construction spending, a public facing monthly work group where the current spending and account balances are required to be disclosed are a few of the policy language improvements that jump out as improvements. She said that the past five years of budgetary mishap in the school district and the declining enrollment are risk points worth offsetting by adding accountability into the policy. She said that household budgets will be more constrained with tax increases, and it would be helpful to have the same policy language for schools receiving funding. 2 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 Fowler attended the DEQ public hearing about the transition from UNC coal to burning plastic and pelletized wood. She said that she sent her own email opposing the change and that she fully supports the resolution that was added to the agenda. Chair Bedford, Vice-Chair Hamilton, Commissioner Carter, Commissioner McKee, and Commissioner Greene indicated that they also attended the public hearing. Commissioner Greene attended a GoTriangle strategic planning retreat, and she is encouraged by the direction of the board. Vice-Chair Hamilton said she was glad to be back at work after the holidays. Chair Bedford said there would be a forum on low-barrier housing on Saturday at the Whitted Building. She said that there are warming centers open and several locations open for individuals that need overnight stays. She said transportation is available. Commissioner Carter said she sent comments to DEQ after the public hearing and joined in some Martin Luther King, Jr. Day events. Commissioner Portie-Ascott said she also attended some Martin Luther King, Jr. Day events. She said that the State of the Region address with the Research Triangle Regional Partnership will be held on May 7th and encouraged everyone to save the date. Commissioner McKee encouraged everyone to be safe in the dangerously cold weather. 4. Proclamations/ Resolutions/ Special Presentations a. Resolution Certifying and Approving the Results of the November 5, 2024, Bond Referendum The Board adopted a resolution certifying and approving the General Obligation Bond election results from the November 5, 2024, Bond referendum. BACKGROUND: On November 5, 2024, Orange County voters approved $300 million in General Obligation bonds to fund capital improvements for the Chapel-Hill Carrboro City Schools and Orange County Schools. The election results are included in the attached resolution. The North Carolina statutes require that the BOCC certify and approve the election results as a necessary step prior to the issuance of General Obligation bonds. After the BOCC adopts the resolution (Attachment 1), the statutes require the County to publish a notice of the results. Bond Counsel has provided the form of the notice for publication (Attachment 2), and the Clerk and Chief Financial Officer will ensure publication following Board action. Gary Donaldson introduced the item and the resolution: Resolution Certifying and Approving Results of School Bond Referendum WHEREAS, the Orange County Board of Elections has certified the following results of the bond referendum held in and for Orange County, North Carolina, on November 5, 2024, as follows: On the question of the approval of $300 million general obligation school bonds for Orange County, YES 56,138 NO 27,040 3 and it therefore appearing that a majority of voters voting in the referendum have approved the issuance of these bonds, BE IT THEREFORE RESOLVED by the Board of Commissioners of Orange County, North Carolina, that the Board certifies and approves these results and declares the issuance of the bonds to be authorized; and, BE IT FURTHER RESOLVED that the Board directs the Clerk to this Board to publish promptly a statement of these results in the form prescribed by law. A motion was made by Vice-Chair Hamilton, seconded by Commissioner McKee, to approve a resolution certifying and approving the General Obligation Bond election results from the November 5, 2024, Bond referendum. VOTE: UNANIMOUS b. Resolution Regarding an Air Permit Application Request from the University of North Carolina at Chapel Hill This item was added to the agenda at the beginning of the meeting. The Board approved a resolution providing comments on the University of North Carolina at Chapel Hill's application to the North Carolina Department of Environmental Quality for an Air Permit modification. BACKGROUND: The University of North Carolina at Chapel Hill (UNC) currently holds a Title V air quality permit for its cogeneration facility to burn coal and natural gas in boilers to produce electricity and steam. UNC has applied for a modification of its air permit to allow for the combustion of engineered pelletized fuel in its facility in Chapel Hill. The attached draft resolution provides comments from Orange County to the North Carolina Department of Environmental Quality regarding UNC's air permit modification request. Chair Bedford introduced the item. Vice-Chair Hamilton read the first four paragraphs and the last eight paragraphs of the resolution due to the length of the resolution. ORANGE COUNTY BOARD OF COMMISSIONERS RESOLUTION REGARDING AN AIR PERMIT APPLICATION REQUEST FROM THE UNIVERSITY OF NORTH CAROLINA AT CHAPEL HILL TO THE NORTH CAROLINA DEPARTMENT OF ENVIRONMENTAL QUALITY WHEREAS, The University of North Carolina at Chapel Hill (UNC) currently holds a Title V air quality permit for its cogeneration facility to burn coal and natural gas in boilers to produce electricity and steam; and WHEREAS, UNC has applied for a modification of its air permit to allow for the combustion of engineered pelletized fuel in its facility at 575 West Cameron Avenue, Chapel Hill, which is within Orange County; and 4 WHEREAS, in 2023 Orange County adopted its Climate Action Plan, setting ambitious goals to transition to clean, renewable energy, mitigate the impacts of climate change and ensure long- term environmental protection and quality of life; and WHEREAS, while the Orange County Board of Commissioners appreciates UNC's efforts to decrease greenhouse gas emissions and transition away from burning coal, we strongly encourage a transition to clean, efficient technologies that do not have the potential to impact human and environmental health; and WHEREAS, UNC's cogeneration facility is surrounded by historically Black neighborhoods where issues of environmental justice are of major and long-standing concern; and WHEREAS, these neighborhoods are also home to hundreds of UNC students; and WHEREAS, the UNC Hospitals, which treats a constant stream of vulnerable patients, stands only 3,000 feet away from this facility; and WHEREAS, all of these communities would be disproportionately burdened by the release of toxic substances through the burning of the proposed waste pellets; and WHEREAS, UNC's application estimates reducing greenhouse gas emissions by 12 percent but burning pellets also increases emissions of other harmful pollutants such as nitrogen oxides, carbon monoxide, lead, and volatile organic compounds (300 percent increase) such as benzene and formaldehyde; and WHEREAS, the engineered pellets with varying and undeterminable amounts of plastic have been shown to contain per-and polyfluoroalkyl substances(PFAS), also called forever chemicals, a contaminant of emergent and immediate concern, with limited research available relating to air emission negative health impacts and safe exposure limits; and WHEREAS, air emissions are a significant pathway for PFAS to enter the environment, including local water systems; and WHEREAS, the community is already burdened by the presence of PFAS in its major drinking water supply, as a result of which the water authority, Orange Water and Sewer Authority (OWASA), is required to fund a costly additional treatment process to remove the compounds leading to increased consumer rates; and WHEREAS, given that PFAS air emissions are not currently regulated by the EPA, it is imperative for the health and safety of the entire community to wait for research to develop standards and regulations; and WHEREAS, at the public hearing held on January 16, 2025, a great number of people working and living in Orange County and the surrounding communities expressed their strong concerns about the negative health and environmental effects of using the pellets and the modest reduction in greenhouse gases; and WHEREAS, protecting the health, safety and welfare of its residents is the Orange County Board of Commissioners' paramount responsibility; 5 NOW, THEREFORE, BE IT RESOLVED THAT the Orange County Board of Commissioners requests that the North Carolina Department of Environmental Quality deny the air permit application for the University of North Carolina at Chapel Hill (UNC.24A) at this time. BE IT FURTHER RESOLVED that this resolution be shared with our NC General Assembly delegation, the Governor, the Town Councils within Orange County, Durham and Chatham County Boards of Commissioners and the Chancellor of UNC. This the 21st day of January, 2025. A motion was made by Commissioner Fowler, seconded by Commissioner Greene, to approve the resolution providing comments on the University of North Carolina at Chapel Hill's application to the North Carolina Department of Environmental Quality for an Air Permit modification. Commissioner Carter made an amendment to the motion that the resolution be shared with the Chancellor of UNC-Chapel Hill along with request that the university consider rescinding their permit application, in the interest of community health and in recognition that the university is leading a research effort in removing PFAS from water. Vice-Chair Hamilton seconded Commissioner Carter's amendment to the motion. VOTE: UNANIMOUS The Board then voted on the amended motion to approve the resolution providing comments on the University of North Carolina at Chapel Hill's application to the North Carolina Department of Environmental Quality for an Air Permit modification, and provide a copy of the resolution to the Chancellor of UNC-Chapel Hill along with a request that the university consider rescinding their permit application. VOTE: UNANIMOUS At this point, the Board discussed item 8, the Consent Agenda, as amended at the beginning of the meeting. 8. Consent Agenda • Removal of Any Items from Consent Agenda Items 8-k and 8-m were removed from the consent agenda for discussion. • Approval of Remaining Consent Agenda A motion was made by Commissioner McKee, seconded by Commissioner Fowler, to approve the remaining consent agenda. VOTE: UNANIMOUS • Discussion and Approval of the Items Removed from the Consent Agenda 6 Regarding item 8-k, Commissioner Portie-Ascott said she wanted the public to hear the Board discuss when real property is going to be sold. She asked what the market value is of the property that is recommended for sale. She asked for more information on the process for selling county property and if there was discussion with the owners of the other neighboring properties. Nancy Freeman, Tax Administrator, said due to the fact that it is not a buildable lot, and the shape is like a buffer lot due to the road behind it, a suitable value is between $4,000 and $8,000 dollars. She said the new value would be $8,400 for 2025. Commissioner Portie-Ascott asked if the value was determined by a licensed appraiser. Nancy Freeman said it was determined by a certified appraiser in her office. She said there was not a separate appraisal done. Alan Dorman, Asset Management Services Director said they also did not perform an outside appraisal. Commissioner Portie-Ascott asked if Nancy Freeman had the comps available. Nancy Freeman said that she is more than happy to get that to the Board at a later time, but she did not have it with her tonight. Alan Dorman said since 2022 they have sold four properties like this in the same way. He said it is a small street stub out and usually a neighbor finds it and asks if the county will sell it. He said they pass it around and ask departments if there is an objection to selling it. If not, they would go back and say if there is an offer made, then they can take it to the Board and that would be the next step. He said the upset bid process is the best way they have found to go about this process. He said that it gets advertised and there are ten days allowed for someone to beat the bid. He said that the process can continue until no one beats the current offer. He said that the amount is then brought back to the Board, and they approve the bid and then send it to the attorney's office for processing. He said that this is the typical process. Commissioner Portie-Ascott asked which newspaper the upset bid is advertised in. Alan Dorman said it is advertised in the Durham Herald-Sun. Commissioner Portie-Ascott asked if it is also advertised on the county's website. Alan Dorman said he does not believe it is, but it could be. Commissioner McKee asked if going through that process establishes market value. Alan Dorman said yes, and they do not have a lot of market value. He gave the example of 129 E. King Street, and they got that one appraised because of the higher value. He said they went into a competitive process after the appraisal, and they sold it for$400,000 when it had been appraised at $169,000. He said it is a bid process and it establishes market value. Commissioner Portie-Ascott asked who determined that it is not a buildable lot. Alan Dorman said they worked with the Tax Department and the Planning Department determined they were not buildable. He said the Planning Department reviewed county-owned land for affordable housing opportunities a few years back and those were set aside. He said the other lots, like this one, are properties that are sitting on the county's books. Commissioner Portie-Ascott asked if water and sewer are connected to the property. Alan Dorman said he would find out. Chair Bedford asked if adjacent neighbors should have been notified of the sale of the property. John Roberts said it is not legally required to do so, but it is allowed to add notification to the process. Chair Bedford said she would like the County Manager to consider adding that to the process in the petition. Commissioner Portie-Ascott said in the strategic plan survey, one of the issues the community had was communication from the county. She said she wanted to make sure the county was transparent. She asked for this discussion to be as transparent as possible. She asked that it also be added to the website. Alan Dorman said he could do that. Chair Bedford said that in the future it could be added as a regular item instead of on the consent agenda. Commissioner McKee said one way they could inform the neighbors is to post a sign like they do for zoning changes. He said they would then see the sign. Chair Bedford said that the County Manager and Alan Dorman could bring that back to the Board. Commissioner McKee made a motion to approve item 8-k as recommended. Commissioner Portie-Ascott seconded the motion. VOTE: UNANIMOUS Regarding item 8-m, Commissioner Carter said there is a contract in the packet and a reference for a written proposal that the contractor will do, and she thinks the material as forwarded ahead of the meeting. She said she wants to add some relevant information about the cost into the public record. Chair Bedford asked for clarification of Commissioner Carter's request. Commissioner Carter said she wanted to add an attachment provided by Greg Wilder that provided more information on the proposals described in item 8-m. Chair Bedford asked if posting it on the website with the agenda materials would be sufficient. Commissioner Carter said yes. Commissioner Carter made a motion to approve item 8-m as recommended. Commissioner Fowler seconded the motion. VOTE: UNANIMOUS a. Minutes The Board approved the draft minutes for the November 19, 2024, December 2, 2024, and December 10, 2024 BOCC Meetings as submitted by the Clerk to the Board. b. Motor Vehicle Property Tax Releases/Refunds The Board adopted a resolution to release motor vehicle property tax values for nine(9)taxpayers with a total of nine (9) bills that will result in a reduction of revenue. c. Property Tax Releases/Refunds The Board adopted a resolution to release property tax values for six (6) taxpayers with a total of eight (8) bills that will result in a reduction of revenue. d. Late Applications for Property Tax Exemption/Exclusion The Board considered twelve (12) untimely applications for exemption/exclusion from ad valorem taxation for twelve (12) bills for the 2024 tax year. e. Advertisement of Tax Liens on Real Property The Board received a report on the amount of unpaid taxes for the current year that are liens on real property as required by North Carolina General Statute 105-369, and to approve, on or about, March 26, 2025, as the date set by the Board for the tax lien advertisement. f. Extension of the 2025 Listing Period The Board extended the 2025 Tax Listing Period until February 14, 2025 and adopted a resolution approving the extension. g. Resolution Authorizing Sale of Property for the Sheriff's Office The Board approved a resolution authorizing the sale of surplus ammunition to the Person County Sheriff's Office. 8 h. Fiscal Year 2024-25 Budget Amendment #5 The Board approved budget, grant, and capital project ordinance amendments for Fiscal Year 2024-25. i. Contract Amendment with Vaco, LLC for Payroll Audit Services The Board: 1) Approved a contract amendment with Vaco, LLC for Payroll Audit Services; and 2) Authorized the County Manager to execute the contract amendment, subject to final review by the County Attorney. j. Robert& Pearl Seymour Center Corporate Water Easement with Orange Water and Sewer Authority The Board: 1) Approved a Corporate Water Easement with Orange Water and Sewer Authority (OWASA) for the Robert and Pearl Seymour Center; and 2) Authorized the Chair to sign the Corporate Water Easement paperwork upon final County Attorney review. k. Proposed Sale of 0.26 Acre Property, PIN #9862246076, Hillsborough, NC The Board approved the sale of a County-owned 0.26 acre property, PIN #9862246076, in Hillsborough, NC, and approved a resolution authorizing the sale of the property through a negotiated offer, advertisement, and upset bid process. I. Temporary Memorandum of Understanding with the Town of Carrboro for the Operation of the Drakeford Library Complex The Board ratified the temporary Memorandum of Understanding (MOU) between Orange County and the Town of Carrboro for the Operation of the Drakeford Library Complex. m. Construction Contract Award for Multiple Orange County Architectural Protects and Approval of Budget Amendment#5-A The Board: 1) Approved a construction contract with Harrod and Associates Constructors, Inc. for the construction of multiple Orange County architectural projects; 2) Authorized the County Manager to execute the Agreement, subject to final review by the County Attorney, and any subsequent amendments for contingent and unforeseen requirements up to the approved budget amount on behalf of the Board; and 3) Approved Budget Amendment#5-A. n. Development Memorandum of Understanding Between Orange County and the Town of Chapel Hill for Legion Road and Formosa Lane Fire and EMS Station The Board: 1) Approved a Memorandum of Understanding (MOU) for the Orange County Emergency Services and Town of Chapel Hill co-location facility potential development of property located at Legion Road and Formosa Lane, Chapel Hill; 2) Authorized the County Manager to execute the MOU, subject to final review by the County Attorney, and any subsequent amendments on behalf of the Board; and 3) Authorized the County Manager to execute the Professional Services Contract once a firm has been selected jointly by the parties, subject to final review by the County Attorney, and any subsequent amendments on behalf of the Board. At this point the Board resumed the agenda as published. 5. Public Hearings None. 9 6. Regular Agenda The Board considered item 6-c first, as amended by the Board at the beginning of the meeting. c. New Legislation for Local Community Child Protection Team (CCPT)/Child Fatality Prevention Team (CFPT) The Board received an update on new legislation that seeks to strengthen the State's child fatality prevention system, and to approve the continuation of the current structure of a single Orange County local CCPT/CFPT. BACKGROUND: Session Law 2023-134, Section 9H.15 directed the North Carolina Department of Health and Human Services (NCDHHS) to create a new State Office of Child Fatality Prevention in order to strengthen the State's Child Fatality Review System for preventing child fatalities and maltreatment. Along with the creation of a new State office, the legislation lays out a broad restructuring of child fatality review systems statewide, with the goal of streamlining processes, preventing child deaths, and promoting child well-being. Team membership is nearly the same within the new legislation. Required positions continue to be the following: • Director of the county department of social services or the director of the consolidated human services agency • Additional staff member of the county department of social services or the consolidated human services agency • Director of the local department of public health • Local law enforcement officer • Attorney from the district attorney's office • Executive director of the local community action agency, or designee • Superintendent of each local school administrative unit located in the county, or designee • Member of the county board of social services • Local mental health professional • Local guardian ad litem coordinator, or designee • Local health care provider • Emergency medical services provider or firefighter • District court judge • County medical examiner • Representative of a local childcare facility or Head Start program • Parent of a child who died before reaching the child's eighteenth birthday Prior to the new legislation, the Board of County Commissioners (BOCC) could appoint up to five (5) additional members from the community to serve on the team. From 2018 until present day, there is no record indicating any additional team member appointments from the BOCC. The current team roster is attached. The team currently has 4 vacant positions from the required list. Team Chair Shannon Barnes has sent out invitations for the attorney position, executive director of local community action agency and district court judge. The team continues to recruit for a parent representative. As of January 2025, the additional BOCC-appointed positions are to be 10 replaced by up to five (5) individuals that the Local Team Chair can invite to serve as ad hoc members for a specific child fatality review to enhance the effectiveness of the review. The legislation makes the following changes to required reviews: • Local Teams are no longer required to do active child protective services case reviews (formally a CCPT objective), but may elect to do such reviews at the request of the Director of the county department of social services. • Local Teams are no longer required to review every death of a resident child. Instead, Local Teams shall review all deaths of resident children under age 18 that fall into one of the following categories below (and may elect to review additional deaths that fall outside these categories). 1. Undetermined causes 2. Unintentional injury 3. Violence 4. Motor vehicle incidents 5. Sudden unexpected infant death 6. Suicide 7. Deaths not expected in the next six months* 8. Deaths related to child maltreatment or child deaths involving a child or child's family who was reported to or known to child protective services* 9. A subset of additional infant deaths that fall outside of the above categories, according to guidelines set by NCDHHS* *Criteria and guidelines will be established by NCDHHS to further define these categories. The new legislation also requires local teams to prepare to participate in the National Fatality Review - Case Reporting System (NFR-CRS). • Local Teams are legislatively required to begin using the NFR-CRS on July 1, 2025. • Appropriate data use agreements are being developed and will have to be in place prior to implementation. The Office of Child Fatality Prevention will provide training to Local Teams on the use of the NFR-CRS prior to July 2025. • The Office of Child Fatality Prevention will also provide guidance and ongoing technical assistance related to use of the NFR-CRS. • Once enough data is collected in the NRF-CRS, the Office of Child Fatality Prevention will analyze and report on aggregate data from the NFR-CRS. Quintana Stewart, Health Director, introduced the item and briefed the Board on updates. Commissioner Portie-Ascott asked what the review looks like, for example if parents have lost a child to suicide. Quintana Stewart said they receive the case one year after the incident. She said the receive a copy of the ME report and they look to see if there was an open case with CPS, the health department reviews to see if they were working with them, they work with the school district and the hospitals. She said they look into the services that the child was in receipt of and try to figure out how to prevent future occurrences. She said they review team looks over all of the information with the goal to prevent future occurrences. 11 Commissioner Fowler asked if they then find out about any siblings to see if they might need extra support. Quintana Stewert said yes, and they try to put efforts into place that prevent any future occurrence. Chair Bedford asked if these children are residents of Orange County. Quintana Stewart said they were. Chair Bedford asked how many child deaths there are per year. Lindsey Shewmaker, DSS Director, said there are about 12 a year. She said that because the new system goes into place July 1, they receive a DSS report, but they will receive that on consent within the next month. She said that it will summarize this and then three items that the team wants to work on. She said this is preventative in nature and effort. Vice-Chair Hamilton said it is helpful to bring this to the community. She said with the county's strategic plan, she said objective three should also be added because that is to provide social safety net programming for the communities most vulnerable members. Quintana Stewart asked the Board to approve the recommendation to continue with the single County CCPT/CFPT structure. A motion was made by Commissioner Fowler, seconded by Vice-Chair Hamilton, approve the recommendation of the Health Director and Social Services Director to continue with the single County CCPT/CFPT structure. VOTE: UNANIMOUS a. Approval of School Capital Funding Policies The Board adopted new School Capital Funding Policies. BACKGROUND: At its October 8, 2024 work session, the Board of County Commissioners reviewed a draft version of the School Capital Funding Policy, which establishes new definitions and guidelines for school capital funding, uses, and allocation methods. The Board made a series of clarifications and corrections to the draft policy. At a second work session on November 12, 2024, the Board reviewed updates to the policy, and reviewed a secondary Major Project Planning Addendum. The Board made some changes to both documents. The documents have also been reviewed by the School Capital Needs Workgroup and have been provided to staff in both districts. Once adopted, the policies will be implemented starting with the FY 2026 Manager's Recommended Capital Investment Plan, which will be presented in April 2025. Kirk Vaughn, Budget Director, introduced the item. Commissioner Carter asked if there is anything in the discussion that might change the policies that are talked about in 6-a. Kirk Vaughn said no. Chair Bedford said she would like quarterly updates on the policy, and she would like for the staff to develop procedures for timing and accounting. Commissioner McKee said there were several places where there were references to"the Board," but it did not specify which Board. Chair Bedford suggested adding (Board) after Board of County Commissioners in the preamble so that it is clear throughout. Commissioner McKee said he just wanted to add something so it is clear. He said he also had a question about a statement on page five: 12 "Each district is required to identify funds within their share of bond and CIP funds to offset the increase. This will be presented in a BOCC business meeting, and school staff should provide adequate notice based on the County's agenda process. School staff will need to identify the cause of the budget overage and detail the potential impact on the reallocation of their funding on other major projects and high priority needs." Commissioner McKee asked what happens if a school system runs out of funding. Chair Bedford said in the first two sets of projects they have plenty of money and will not encounter that issue. She said that near the end of the ten-years is when this could happen. Commissioner McKee said you cannot stop a project at the end of a sequence. He asked where the extra funds will come from. Chair Bedford said they are meeting monthly, and this should not be an issue. Commissioner McKee said he works on a project that is over-budget. Commissioner Fowler said that they will need to be conservative and not expect to spend every last dime. Chair Bedford said that any time it is over 15%, it must come back to the BOCC. Commissioner McKee had a question about the following statement on page 4: "Therefore, when emergencies or sudden failures occur, school staff are to provide a written request for immediate reallocation to the County Manager and the Budget Director. The county will then reallocate funds at the next available board meeting." Commissioner McKee asked if that locks the Board into providing the funding. Chair Bedford suggested that it state that reallocations will come out of "existing district funds." Commissioner McKee said he supervised the greenway that connects to Chapel Hill High, and he knew that it would not come in at budget or even close and he does not want to get locked into something that they have no alternative other than taxpayer funds. Chair Bedford clarified the changes. Vice-Chair Hamilton thanked Commissioner McKee for his suggestions. She said one of the things that the Board has not done is review policies regularly. She said that the Board should be reviewing policies to make sure they are working for us. Commissioner McKee said he considers it a working document that can be changed at will. He said he hopes that staff will stay on top of this. A motion was made by Vice-Chair Hamilton, seconded by Chair Bedford, to adopt the School Capital Funding Policy and the School Major Project Planning Addendum. VOTE: UNANIMOUS b. Project Management Options for School Construction The Board discussed how to approach project management for school construction projects and to provide direction to staff. BACKGROUND: Over the past two years, the County has developed a plan to fund the construction of new and renovated school facilities through the passage of the bond referendum. During this planning period, the School Capital Needs Workgroup and Board members have identified the importance of project management in successfully completing these projects. However, the exact model of project management for the upcoming construction projects has yet to be decided by the County and the Districts. 13 Successful project management will achieve several goals for the County and the Districts in implementing the bond plan. First, it will ensure that projects are achieved on time, in budget and in scope. Second, the County has identified several values in the Major Project Planning Addendum that should be prioritized. Project management staff would ensure that those values are carried through during the design and construction process into the final builds. Those two components make project management important regardless of the delivery method chosen. For example, in the Construction Manager at Risk delivery method, the construction manager assumes more of the risk in maintaining the budget and scope of the project, rather than the owner. Project management would still ensure that the building meets the district's long-term needs and the County's priorities. Under State Statute, the school districts are responsible for school construction, and as such are responsible for management, design, and construction oversight. Under the current model, the districts hire either staff or a firm to provide project management, both for the annual maintenance of existing facilities and for new construction. The school districts make all contracts, decisions and payments regarding school construction and then bill the County for reimbursement. The districts do not construct new facilities very frequently. The most recent new school was the major renovation of Chapel Hill High School from the 2016 bond. In addition, both districts had issues spending down their maintenance funding during the Covid-19 Pandemic. The County encouraged both districts to expand their project management staff and fund them through the Supplemental Deferred Maintenance funds. The County has identified these existing balances as resources to implement the Woolpert recommendations and will work with the Districts to create a plan that is consistent with the principles of the Woolpert recommendations using those existing balances. Unspent Capital Funds New Funding Available Maintenance District Year End FY 2024 Budget FY 2025 Funds for FY 2025 Chapel Hill-Carrboro City Schools $ 6,609,365.29 $ 16,224,511.00 $ 22,833,876.29 Orange County Schools $ 27,510,418.97 $ 16,060,560.00 $ 43,570,978.97 Total $ 34,119,784.26 $ 32,285,071.00 $ 66,404,855.26 Either district can also agree to allow the County to assume project management, contracting, and oversight responsibilities through an Interlocal Agreement (ILA). That could allow the County to provide additional control over the selection of the architect, project delivery method, processing change orders and ultimate project delivery. The County could not compel the districts to enter into these agreements, other than withholding bond funding. Therefore, the County would likely need to work collaboratively with the districts to codify any responsibility sharing and reporting tasks. Staff will present the three broad categories of Project Management structures for the upcoming construction projects, and how the Pay-Go funds could be used to make each method successful. The three options are: • County Controlled Project Management • School District led Project Management (status quo), and • Hybrid Shared Management 14 These categories are only intended to apply to the Major Projects using Bond funds, as the districts already have project management capacity for their high priority needs projects. The County is able to ensure compliance with the principles of the Woolpert recommendations for High Priority Needs using the project-based approval process identified in the School Capital Funding Policy. The Board will discuss how it wishes to proceed on these options and direct staff on how to engage with the school districts on this conversation. There are no decision points for this meeting for the Board. However, funds for design on school construction are planned to be authorized on July 1, 2025 as part of the Capital Investment Plan. Kirk Vaughn, Budget Director, made the following presentation: Slide #1 ORANGE COUNTY NORTH CAROLINA School Construction Project Management Discussion January 21, 2025 BOCC Business Meeting Slide #2 PROJECT MANAGEMENT CURRENT STATE • Under State Statute, School Districts are responsible design, construction and maintenance of school facilities, and County is responsible for funding. • In practice, that means that County authorizes capital budgets for school districts. School Districts make all decisions on management, design and construction. • School Districts file for reimbursement for all expenses. County uses expenses to borrow in Spring Financing ORANGE COUNTY NORTH CAROWNA 15 Slide #3 PROJECT MANAGEMENT GOALS Successful Project Management achieves: — Projects are completed on time, in budget, and in scope. — County priorities survive from design through construction • Educationally Adequate • Flexibly Designed • Equity between Districts • 5ustainability&Life Cycle Costing • Safety • Community Usage Capacity — Districts receive a facility that meets their needs for the next 50 years ORANGE COUNTY NORTH CAROLINA Slide #4 PROJECT MANAGEMENT BARRIERS Barriers to Successful Project Management — Districts do not have much experience in building new facilities, mostly in maintenance. — County has more experience with regular new construction, but not at the scale of school buildings — County can not assume Project Management without ILA from districts — In either case, entity would have to expand capacity quickly to start first projects — Multiple stakeholders with different priorities — Multiple projects being run simultaneously — Complicated Planning environment—5 possible jurisdictions. . ORANGE COUNTY NORTH CAROLINA Slide #5 INTERLOCAL AGREEMENT For the County to have any direct say on School Project Management, the County will need to enter an ILA with the individual Districts. • ILA could dictate delivery method, standardization of scope/building materials, change order and value engineering processes, etc. • Or ILA could delegate responsibility of design, management and construction of school facilities directly to the County. • County can not compel districts to sign ILAs, other than power of the purse. ORANGE COUNTY NORTH CAROLINA 16 Slide #6 PROJECT MANAGEMENT MODELS Use of Pay-Go W Funds District School Staff have the best Districts would have to build Provide funding to school Managed PM understandings of the capacity to properly manage districts to expand PM. (Current requirements in school projects.County oversight County can add Process) construction.Most would be indirect.Districts additional FTE to review responsive to eventual could have different levels of projects,manage users of the facility. success. meetings and report to the board. County Economies of Scale on County staff not as familiar County will directly hire Controlled running multiple projects with DPI requirements. Project Management. PM simultaneously.Equity in County is more removed from design/construction final users of school buildings. decisions between districts. Joint All stakeholders are Unless roles are very clearly Both County and School Management recognized in process. defined,decisions will have Project Management will unclear or duplicated be funded,based on the approvals.Delaying projects split of responsibilities. and causing overruns. Chair Bedford asked if this could be regardless of what they adopt. Kirk Vaughn said yes. He said he included it because it could augment their process. Commissioner McKee asked if a county employee has oversight, how is that not violating the state statute. Kirk Vaughn said the person would be gathering information and communicating with the school districts and not making decisions. Commissioner McKee said it is oversight of the process, not oversight of the districts. Kirk Vaughn said that is correct. Commissioner Portie-Ascott asked if there is an option to contract out the oversight role. Kirk Vaughn said yes. Commissioner Fowler said that if it was a county-controlled project management method how would final design be decided upon. Kirk Vaughn said they must communicate with the school boards and the building would have to meet their needs. Commissioner Carter said that DPI can be brought in through the outsourcing. Kirk Vaughn said that the county could look for other firms that are providing this service to other districts. Commissioner Portie-Ascott asked if the interlocal agreement can be initiated by the Board. Chair Bedford said yes. Commissioner McKee said joint management may cause an issue for determining who is responsible for problems that come up. Commissioner Fowler said there were a couple of representatives from the school districts in attendance. She asked how the methods described in slide #6 would prevent the act of God causes of overruns. 17 Kirk Vaughn said he had informal discussions with the school districts, and it did not appear there was support for a county-controlled project management method. He said the county used construction manager at risk in the past and they have had success with that. Commissioner Fowler said there are contingencies built in, but it still does not prevent the acts of God. John Roberts said that will come down to the terms of the contract, but some things are not predictable, and he does not know many construction firms that are willing to take on the cost of unforeseen acts of God. Commissioner Fowler said that is the point she is trying to make. She said neither of these points completely fix this issue. She said it is very critical to be conservative at the end. Commissioner Carter asked if there are benefits to the county-controlled method that could be communicated to the districts. Travis Myren said yes. He said regarding a rock issue during construction they build in contingencies. Chair Bedford said the school boards said they would like their own construction manager. Commissioner McKee asked if the districts will be required to follow the Woolpert report. John Roberts said that the schools are not required to follow the Woolpert report. Commissioner McKee asked if the school systems decide they want to follow a different track, he wants to make sure he understands they can do that. Chair Bedford said not the way that Commissioner McKee is saying it because those projects must be approved by the BOCC, and they need four votes on any of those projects that are using bond funds. She said that they have been advised that the majority of this Board want them to follow the Woolpert report. Commissioner McKee said that the only alternative is to withhold funds, and he cannot see the Board allowing schools to fall down because of this. Chair Bedford said that everyone has been cooperative in the school collaboration meetings. She said the principles are flexible and this is a collaborative process. Commissioner McKee said he wants to be sure that he is understanding it correctly. He said that he is nowhere close to a legal understanding, but he wants to make sure everyone understands that the schools have the responsibility to build schools. John Roberts said that is correct and they are not legally required to follow the report but that as Chair Bedford pointed out, the Board controls the funding and has expressed its desire that they prefer the districts to follow the Woolpert Report. Commissioner McKee said he would not want this to become a contentious issue. Slide #7 NEXT STEPS • Board to discuss preferences and direct staff in how to engage with School Districts • No decision required tonight. • However, ILA negotiation process can be long, and funds for planning are to be distributed July 1, 2025. ORANGE COUNTY NORTH CAROLINA 18 PUBLIC COMMENTS: George Griffin, Chair of the Chapel Hill-Carrboro City School Board, said they are in agreement with what they are hearing the Board say. He said they plan to replace three elementary schools in-line with the Woolpert recommendations. He said that they will build a building that will serve the community for the next 20 years. He said he thinks everyone will be pleased. He said on February 6 the school board will get the opportunity to discuss the details. He said they would prefer to manage the project, but they do not intend to manage it with their own staff. Al Ciarochi, the Deputy Superintendent for Operations at Chapel Hill-Carrboro City Schools, said the NC Statutes have three primary procurement models the school boards can follow. He said they have been looking at design-build and construction manager at risk because they have a time limited and finance limited project. Commissioner Fowler said all three bidders used the same subcontractors for the Chapel Hill High School RFQ process. She asked how they will know if the design-build process has better access to labor. Al Ciarochi said when you go with low bid, most companies are willing to bid if they know that they can schedule the project. He said that there are so many projects that most will not invest to compete with the low bid. Commissioner Fowler asked how much more does it cost to do design build. Al Ciarochi said he can't give specifics, but he wants them to help facilitate bond sequencing and procurement delivery method. He said that they would help for each school. He said they could have different processes for each building. He said the economy is not allowing for a hard bid process. George Griffin said he wanted to stress that they are in agreement with the priorities, and he said he understands the concerns. Vice-Chair Hamilton said she appreciates the discussion. She said she values having good input from the school boards and staff. She said they need more information from them and from the experts before decisions are made. She said they want well-built schools that meet the needs of the students, and they need to figure out the best way to do that. At this point, the Board considered the worsening weather situation and decided to end the meeting early (see Adjournment). c. Orange County's Proposed 2025 Priority Legislative Issues The Board did not consider this item due to inclement weather and will consider it on a future meeting agenda. 7. Reports None. 9. County Manager's Report The Board did not consider this item due to the inclement weather. 10. County Attorney's Report The Board did not consider this item due to the inclement weather. 11.Appointments None. 19 12. Information Items • Tax Collector's Report— Numerical Analysis • Tax Collector's Report— Measure of Enforced Collections • Tax Collector's Report— Foreclosure Chart • Tax Assessor's Report— Releases/Refunds under$100 • Memorandum — Update on Civil Rights Trail Marker Program • Memorandum — Pending Amendments to the Unified Development Ordinance • Memorandum — Recognition of County Employee Retirements from October 1, 2024, through December 31, 2024 13. Closed Session The previously scheduled closed session was removed from the agenda at the start of the meeting. Adjournment A motion was made by Commissioner McKee, seconded by Commissioner Fowler, to adjourn the meeting at 8:22 p.m. VOTE: UNANIMOUS Jamezetta Bedford, Chair Recorded by Laura Jensen, Clerk to the Board Submitted for approval by Laura Jensen, Clerk to the Board