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Home My WebLink AboutMinutes 04-15-2025-Business Meeting 1 APPROVED 613125 MINUTES ORANGE COUNTY BOARD OF COMMISSIONERS BUSINESS MEETING April 15, 2025 7:00 p.m. The Orange County Board of Commissioners met for a Business Meeting on Tuesday, April 15, 2025, at 7:00 p.m. at the Southern Human Services Center in Chapel Hill, NC. COUNTY COMMISSIONERS PRESENT: Chair Jamezetta Bedford, Vice-Chair Jean Hamilton and Commissioners Marilyn Carter, Amy Fowler, Sally Greene, and Phyllis Portie-Ascott COUNTY COMMISSIONERS ABSENT: Commissioner Earl McKee COUNTY ATTORNEYS PRESENT. John Roberts COUNTY STAFF PRESENT. County Manager Travis Myren, 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 7:02 p.m. All commissioners were present, except Commissioner McKee. Chair Bedford read the public charge. Chair Bedford said that Commissioner McKee is sick and will not be in attendance. She explained the process for making public comment and indicated that those signed up to speak on the Revenue Neutral Tax Rate item can speak during the "Matters not on the Printed Agenda" portion of the agenda. She also suggested amending the agenda to hear the special presentation from GoTriangle before public comments. 1. Additions or Changes to the Agenda A motion was made by Commissioner Fowler, seconded by Commissioner Carter, to move public comments after item 4-a. VOTE: UNANIMOUS The Board then discussed item 3 on the agenda. 3. Announcements, Petitions and Comments by Board Members Commissioner Fowler had no comments to share. Vice-Chair Hamilton thanked those who have sent in comments and are present to speak on the revaluation. She said the Board appreciates everyone's input and shared that she reads all of the emails and comments. She said she has been concerned about the efficient use of taxpayer money since she was elected and wants to share a couple of principles she keeps in mind when thinking about the county budget. She said the reason there are government services is because the market doesn't always, and often doesn't, effectively allocate resources. She said she also thinks about the importance of investments in people and infrastructure that in the long run benefits everyone. Chair Bedford had no comments. Commissioner Greene said in addition to the GoTriangle presenters later, she would like to welcome the acting GoTriangle CEO and President, Byron Smith. The Board recognized Byron Smith. 2 Commissioner Carter echoed Vice-Chair Hamilton's thanks to those who have provided input on the revaluation and revenue neutral rate. She announced that Earth Day is on April 22"d She said she serves on the Solid Waste Advisory Group and learned that composting 1 million pounds of food waste in 2024 reduced 3 million pounds of CO2. She said she had the opportunity to meet with the Emergency Services Department this week and commended and recognized their work. She also thanked Travis Myren for submitting three names from different Orange County departments for future recognition. Commissioner Portie-Ascott said she attended an event at Mt. Zion AME Church. She said many members of that church are present tonight to make comment. She said she attended the district 9 meeting for NCACC and there are some serious concerns about House Bill 765, which is about land use reform. She said the NCACC Executive Director believes it will have a significant impact on rural buffers. She said that he is encouraging elected boards to reach out to state leaders and suggested the Board reach out to Orange County's legislative delegation. She said the League of Municipalities shares the same concerns and said the Board should reach out to municipal leaders and encourage them to also reach out to state leaders. Chair Bedford said the Board can send a letter or emails to the legislative delegation about this issue. She said she will work with Commissioner Portie-Ascott on this along with the County Manager and the Planning and Inspections Director. 4. Proclamations/ Resolutions/Special Presentations a. Presentation on the GoTriangle Transit Ambassador Program The Board received a presentation from GoTriangle on its Transit Ambassador Program. BACKGROUND: GoTriangle's Ambassador Program is a community-focused initiative modeled after similar programs across the country, such as those operated by Bay Area Rapid Transit (BART), the Southeastern Pennsylvania Transportation Authority (SEPTA), and LA Metro. The program serves as a vital connection between the transit agency and community services, providing support in areas such as: • Mental health crisis response through local professional teams • Resources and assistance for community leaders • Emergency and criminal incident response by law enforcement • Contracted security services and outreach to unsheltered populations Since its inception,the program has expanded from a collaboration of eight(8)local governments, transit agencies, and nonprofit organizations to over fifteen (15) partners and continues to grow through new community-based partnerships. The Program's success is measured by its ability to: • Effectively serve, communicate with, and engage customers • Collect and share data with stakeholders • Ensure a safe and secure transit environment • Strengthen community engagement Highlights of the program's goals include: • Building trust with riders and the broader community • Expanding partnerships • Encouraging stakeholder commitment and shared responsibility • Sustaining the program's growth and securing continued funding 3 Sarah Williamson-Baker, the new Deputy Orange County Transportation Director, introduced herself and introduced Jimmy Price, Director of Safety and Security at GoTriangle. Jimmy Price made the following presentation: Slide #1 N Transit 0... 4 Ambassador • ' April 15,2025 Orange County Board of Commissioners JIMMY PRICE,DIRECTOR OF SAFETY AND SECURITY Ambassador -�— Program NORTH O CDUNTY Triangle ortrx cnkni.iNn i Slide #2 Agenda 1. Transit and public safety 2. How success is measured 3. Program testimonials 4. What's next? 4 Slide#3 Developing Community-Based Public Safety Programs Nationwide r S� Metro S E PTA Jimmy Price said when thinking about homelessness, there is one underlying question faced by transit agencies: How do we balance the impact of our services while maintaining our social responsibility to provide transit services to all riders, housed or not. He said over 700,000 individuals experience homelessness each night across the nation, and over 11,626 people were homeless in North Carolina during the 2024 Point-In-Time Count. He said unhoused individuals may use public transit for shelter from the elements and if people feel unsafe, they will stop using transit. He said GoTriangle modeled the Transit Ambassador Program after some of the agencies on the slide above that have developed a proactive approach to increasing and improving the safety of transit systems. 5 Slide #4 Crisis ➢ Respond to mental A Response to emergencies health crisis incidents Response Enforcement and crime Tea rn Patrol and secure ➢ Customer information facilities > Rider interventions GoTriangle ➢ Support emergencies and Transit Facilitates connectionC� security incidents Ambassador Security to services EmployeesA Code of Conduct ➢ Visible presence awareness ➢ Customer service ➢ Visual deterrence 9 Outreach to riders 9 Support and resources Leaders Outreach 9 Connect riders with resources and services GoTriangle's Public Safety Eco-System Slide #5 ■ 6 Jimmy Price said the Spring into Action event in 2023 was the start of the conversation about transit and safety with community partners. He said the conversation was prompted by non- destination riders using public transit to stay warm. Slide #6 Durham Triangle �y I rl uE�lr l Illli�, �c r, lcr� �,y��7 Partnership w A(' A �{ ^End Homelessnes lla.al HEART OAK CITY GO Baler 1! Cary CARES [� �von• Haven House Olt NTRY POIN ssNi�®s r1 �— URHAM OUSING ATEKIE GRANGE COUNTY j1,jrs tit. F OR NEW r COUN NORTH CAROLINA MISSION HOPE • PE:N rna� ACORNS Jimmy Price said GoTriangle is having an ongoing discussion with the partners listed in slide #6 about rider safety. Slide #7 How well we care for, How we gather data and communicate with,and communicate information engage our customers. 0to stakeholders. How safe and secure is Howwe engage the our bus system. community. Success is Measured By Slide • : TRANSIT AMBA55AD�R Donyasha [Tasha� Hargrove,Transit Slide #9 i V5 Sprir�g Break Jravel LIP Ambassador and Outreach Specialist Joined the Team: May 19, 2D24 . • Eighteen years experience in customer service • Two years at GoTriangle as a Customer � Information Specialist • History of community outreach service ;� � e 1 w W presentation. She said her job is to provide exceptional customer service to operators, students new Tasha Hargrove, GoTriangle's Transit Ambassador and Outreach Specialist, continued the the area, etc. 8 Slide #10 T: HEART ...... J., Crisis f� ProgramsIntervention ■ q7. q Tasha Hargrove shared she is on GoTriangle buses all day long. She said this program allows GoTriangle to provide information to riders experiencing homelessness or mental health crises and connect them with partner organizations in the community. She explained that GoTriangle's goal is to connect the community to riders and riders to the community. Slide #11 Land someone onboard your buses s a sense of safety while offering ce and resource information to youth ng adults who are unhoused or living safe environment, helps get the ball n the right direction. " He Is eVMosley U irec W L Cris c artl Homeless Sem ices 9 Slide #12 Build trust with riders and the community Increase a diverse network of regional partners within GoTriangle's service area What's next? Foster commitment and ownership among stakeholders G row Grow and fund the Ambassador Program andfund Jimmy Price presented this slide and welcomed questions from the Board. Commissioner Portie-Ascott asked what percentage of the time a safety issue is present when there are incidents. Jimmy Price said there used to be more of an issue, but GoTriangle educated drivers about de-escalation and conflict resolution, mental health issues, etc. and the number of safety threats has dropped. He said GoTriangle has also implemented a softer approach when it comes to engaging law enforcement. He said law enforcement is called only when absolutely necessary. He explained there is a security officer on platforms, but the Transit Ambassador is the bridge that helps address issues before they become serious. Commissioner Portie-Ascott asked if there is a Transit Ambassador on each bus. Jimmy Price said right now, it is only Tasha, but the goal is to increase the number of Ambassadors. He said they are taking a strategic approach now and ensuring that Tasha is present on routes with riders of greater needs in order to provide resources. Commissioner Portie-Ascott asked how many of those riders are children. Jimmy Price said he has not seen data indicating that many riders are children. He said the challenge is that they do not get on the buses and ask who is experiencing homelessness. He explained that their presence builds trust, and they find out information through conversation. Commissioner Greene said the GoTriangle Board of Directors was very excited about this program and about adding more ambassador positions as part of the Strategic Plan. He encouraged Jimmy Price to reach out to as many social service stakeholders in Orange County as possible. Chair Bedford asked if there is anyone on staff trained on working with people with IDD and helping them navigate the busses. Jimmy Price said that training is in the works, and they rely on community partners in the meantime for the expertise. 10 Chair Bedford said the Seymour Center works with Chapel Hill Transit on Senior issues. She encouraged them to connect with the Department on Aging for that support as well. Vice-Chair Hamilton said she noticed that Alliance Health is not on the list of partners. She said they fund mental health services for residents on Medicaid and uninsured in Orange County and other counties. Jimmy Price said they were not listed, but Alliance does the training for GoTriangle staff. The Board moved to public comments. 2. Public Comments (Limited to One Hour) a. Matters not on the Printed Agenda Vivian Herndon Latta said she and Gwendolyn Benjamin are here tonight to speak about their food bank at the Mt. Zion AM Church in Hillsborough. She said they have been warned that the food supply may not be as steady as it has been previously. She said many seniors rely on their food bank and is asking the Board to consider providing funding to help fill this gap. She said food insecurity is a real problem in Orange County, and they would like to be able to continue helping community members. Pastor Gwendolyn Benjamin said the food bank is staffed by volunteers from the church and the broader community. She said she would like information on how to apply for funding for the food bank and looks forward to continuing the relationship with the commissioners. Ashley Parker said she lives in Northern Orange County and appreciated last week's presentation from the Agricultural Presentation Board. She said there were thoughtful questions asked from the Board, and she would like to answer those questions from her perspective. She said farmers need one acre per person to be able to feed the population. She said that Commissioner Hamilton had asked what that looks like in Orange County. She said that currently there is only enough productive farmland in Orange County to feed 30% of the population. She said they do not produce enough food and that removes people from agriculture. She said that everything that is consumed is created by a farmer somewhere. She said agriculture should be supported because it affects everyone. She said that it was implied that the county's hands are tied but they can set a realistic budget that they can afford and that will not tie the hands of their children and grandchildren. b. Matters on the Printed Agenda Maxecine Mitchell said she is from the Chestnut Oaks community and that residents in her neighborhood are shocked by their property reappraisals. She said they have investors who call trying to buy their homes a lot. She said properties around there are selling for a lot, but their properties are limited due to the rules of the watershed. She said the homes are being resold for a lot more and are not remaining affordable. She asked how the number could go from $169,000 to $299,000. Sandra Clinton said she lives in a townhome community in Hillsborough built by Habitat. She said she is a senior citizen on a fixed income. She said that her affordability is based on a fixed income and her taxes are going to go up and make it unaffordable. She also expressed concerns about the tax revaluation. Joann Mitchell said she lives in the Efland area and is a habitat owner and a mortgage free homeowner. She said that she is the president of Homeowners United of Orange County and that is a countywide organization representing all Habitat for Humanity neighborhoods. She said there are income requirements that must be met to qualify for a Habitat for Humanity program. She expressed concerns with the process for revaluating Habitat homes in the county. Kate Whetten said she works at Duke University and lives in Orange County. She said that they have laid off three people so far and looking at further. She said that this is only the tip of the iceberg of the economic impacts of federal decisions in this area. She said this is a time 11 when people are scared about things like Social Security, social services, and the broader unknowns. She said she is hoping for a pause on this revaluation because of the economic climate. She said it is very possible that the values may decrease drastically in the next year because there will be more homes on the market and people will not be able to afford them. Virginia Whetten said she appreciates what taxes do for communities. She said she is 93 years old and is on a fixed income. She said she is afraid that her home that she and her late husband owned will become unaffordable for her as a result of the revaluation. Maureen Hayes said the value of her home increased drastically in 2017 and resulted in $1000 more a month. She said she is concerned now that her property value has gone up another 50%, she is going to be priced out. She asked the Board to do something to help. Sandra Theard said her family has been in Orange County since the 1800s. She said her family's land tripled in value and has never had anything on it. She said she is also a senior but has a legacy here and would like to be able to pass that land onto her son and other family members. She said she does not want to be priced out or forced to move because her taxes cost too much. She asked the Board to reconsider the values of her property. Suzanne Allen said the method of taxation is punitive to long-term residents. She said she has lived in her house for 40 years. She said her neighborhood was annexed by Carrboro years ago and her taxes already doubled at that time. She said she would like the method used to evaluate values be reconsidered. Clara Felaski said she lives in Carrboro and is retired and lives on a fixed income. She said that her assessment went up 40%. She said that she still has a mortgage, and any increase is a financial burden. She said that she submitted an appeal because the comparisons were not actually comparable to her house. She said she looked at comps and many sold for considerably less than what her house is currently assessed. She said the housing market since this process began has already gone down. Cliff Simpson said he is against ax revaluation. He said the new values are arbitrary and do not take into account the needs of homeowners. He said it does not take into consideration the burden it places on homeowners, and he said property owners cannot absorb any more tax increases here. Cynthia Anderson said she has lived in North Carolina her whole life and now lives in Carrboro. She said homeowners are being pushed to their limits. She said people who have worked their whole lives, invested in and provided for their community are being pushed out because other people want to live here. She said she hopes the Board will realize that this is not sustainable for members of the community. Terri Buckner said she has always supported the government's role in promoting the public good and providing services not covered by the private sector. She said she has never questioned her taxes until this year. She said she knows the Board cannot postpone the revaluation and that they cannot set up a tiered tax system, so the only thing they can do is be careful about what is approved going forward. She asked them to carefully consider what they choose to fund over the revenue neutral rate. Isabel Gagmon said she agrees with others that she will not be able to afford her home at its new value. She said the real value of her house, not driven by the market, has not changed. She suggested the Board should not use the market value because that only benefits people with money, investors, etc. James Thomas said he built a house for$105,000 and it was paid for in twelve years and he paid for it by working weekends and nights. He said he saw the recent assessment and could not believe that his concrete slab, one bedroom, two bath house was appraised at $430,000. He said he understands that this is a growing area and that taxes need to go up some, but he is asking that the assessment values be given a good look. Gerald Scarlett said he went to several tax meetings and the staff did an excellent job. He said that he has also went into the tax office and his questions were answered completely and he 12 was given much respect. He said the taxes are already some of the highest in the state and he has heard the term revenue neutral and asked the Board to meet that and to also be spending neutral. He said they need to be spending on what is needed and not what is wanted. He said there are people going hungry. He said that his money has been spent to buy ink pens with Orange County information and that he does not think taxpayers will be upset if they do not get a pen. He said he lives in the rural buffer, and he feels like they have his property and the sign welcoming people into the area is not needed. Chair Bedford said April 30' is the deadline for informal appeals. In order to allow all those present an opportunity to hear the Revenue Neutral Tax Rate presentation, Vice-Chair Hamilton made a motion to move item 7-a next on the agenda. The motion was seconded by Commissioner Fowler. VOTE: UNANIMOUS 7. Reports a. Revenue Neutral Tax Rate for FY 2025-26 The Board reviewed the revenue neutral tax rate calculation for FY 2025-26. BACKGROUND: The Tax Administration Department has completed the 2025 revaluation of real property. The revaluation is intended to adjust property values to reflect market value as of the appraisal date of January 1, 2025. The 2025 revaluation was mandated in 2022 when the County's sales ratio or the comparison between assessed value and market value dropped below 85%. NCGS 105-286(a)(2) states: A county whose population is 75,000 or greater according to the most recent annual population estimates certified to the Secretary by the State Budget Officer must conduct a reappraisal of real property when the county's sales assessment ratio determined under G.S. 105-289(h) is less than .85 or greater than 1.15, as indicated on the notice the county receives under G.S. 105-284. A reappraisal required under this subdivision must become effective no later than January 1 of the earlier of the following years: a. The third year following the year the county received the notice. b. The eighth year following the year of the county's last reappraisal. The sales ratio for 2022 was 0.8197 which was below the standard of 0.85 and triggered a mandatory revaluation within three years. By 2024, the sales ratio had dropped to 0.6445. The 2025 revaluation resulted in a 38.6% increase in the total tax base compared to FY 2024-25, increasing the total tax base by $9 billion to $32.6 billion. Property tax revenues are calculated by applying a property tax rate to the property tax base. If the tax rate were left unchanged following a revaluation, property tax revenues would automatically increase as a result of the increased property tax base. However, the State of North Carolina requires counties to publish a revenue neutral tax rate following a revaluation. The revenue neutral tax rate is the tax rate that would produce the same amount of revenue that was generated in the prior year given the new tax base. The revenue neutral tax rate is then adjusted for the average annual natural growth that occurred since the last revaluation. 13 • The total tax base is the combined value of real property, personal property, and motor vehicles. When those amounts are combined, the total tax base is $32.6 billion. • The total tax levy in FY 2024-25 was $203.2 million. When that is adjusted for natural growth that has occurred since the last revaluation (2.52%), the tax levy for the purposes of calculating the revenue neutral rate is $208.3 million. • The revenue neutral tax rate required to produce $208.3 million in tax revenue using a total tax base of $32.6 billion is 0.6384 per $100 of assessed value. This is a decrease from the current tax rate of 0.8629 per$100 of assessed value. All tax districts are required to publish revenue neutral tax rates. The table below details the revenue neutral tax rates for the Chapel Hill-Carrboro City Schools Special District Tax and the rates for each of the Fire Districts: r Tax Distril FFY2024-25 Tax Rate Revenue Neutral Rate hL C2 CHCCS DISTRICT TAX 19.80 14.62 CEDAR GROVE FIRE 9.00 6.54 CHAPEL HILL FIRE 13.87 10.79 DAMASCUS FIRE 12.80 9.79 EFLAND FIRE 10.28 7.38 IENO FIRE 11.98 8.71 ILITTLE RIVER FIRE 7.39 5.35 INEW HOPE FIRE 13.84 10.15 IORANGE RURAL FIRE 11.49 8.21 IORANGE GROVE FIRE 8.27 5.81 ISOUTH ORANGE FIRE 9.09 6.67 ISOUTH TRIANGLE FIRE 12.80 8.75 (WHITE CROSS FIRE 13.84 10.30 Travis Myren introduced the item and made the following presentation: 14 Slide #1 ORANGE COUNTY NORTH CAROLINA Revenue Neutral Property Tax Rate for FY25-26 April 15, 2025 Board of Commissioners Business Meeting Slide #2 Why Conduct a Revaluation Now? Value all property in the County to reflect market conditions/market value at the time of the revaluation - Equity-redistribute the responsibility for property tax payments based on market value • Required by NCGS 105-286(al(21: — A county whose population is 75,000 or greater according to the most recent annual population estimates certified to the Secretary by the State Budget Officer must conduct a reappraisal of real property when the county's sales assessment ratio determined under G.S.105-289(h)is less than.85 or greater than 1.15,as indicated on the notice the county receives under G.S.105-284.A reappraisal required under this subdivision must become effective no later than January 1 of the earlier of the following years: a. The third year following the year the county received the notice. b. The eighth year following the year of the county's last reappraisal. • In 2022, Orange County received notice of a mandatory revaluation - Sales ratio for 2022 was 0.8197 which was below the standard of 0.85 - By 2024, sales ratio dropped to 0.6445 ORANGE COUNTY 2 NORTH CAROLINA 15 Slide #3 Revenue Neutral Property Tax Rate • County is required to publish but not adopt a Revenue Neutral Property Tax Rate - The tax rate that would be required to raise the same amount of revenue as the previous year, plus an allowance for average natural growth rate. - Current tax rate -0.8629 cents per$100 of value • Revenue neutral tax rate will drop if tax base increases - Property Tax Base t X Property Tax Rate l =Property Tax Levy • Average natural growth rate due to new construction for the past three years and growth in the value of motor vehicles = 2.52% ORANGE COUNTY NORTH CAROLINA Slide #4 Revenue Neutral Property Tax Rate Property Tax Base X Property Tax Rate = Property Tax Levy Propertyp- Assessed Value for 2025 Real Property • Land+Improvements/Buildings $29,645,160,916 • Adjusted by 5%for expected appeals Personal Property&Public Utilities Unlicensed vehicles,trailers,campers,boats, $1,242,143,886 jet skis,etc. Power company,gas company,railroad,etc. Motor Vehicles $1,743,029,203 TOTAL $32,630,334,005 38.6% Increase from FY2024-25 ORANGE COUNTY 4 NORTH CAROLINA 16 Slide #5 Revenue Neutral Property Tax Rate Property Tax Base X Property Tax Rate = Property Tax Levy Property Tax Levy Property Tax Levy Amount FY2024-25 Property Tax Levy $203,189,402 3 Year Average Growth—2.52% $5,117,355 TOTAL $208,306,757 s OR o. GE COUNTY Slide #6 Revenue Neutral Property Tax Rate Property Tax Base X Property Tax Rate = Property Tax Levy Property Property$32,630,334,005 0.006384 $208,306,757 Or...0.6384 per$100 of Assessed Value �1 6 ORANGE COUNrTY 17 Slide#7 Impact of the Revenue Neutral Property Tax Rate Interaction between, increased value and tax rate decrease Est.Rev. Tax Increase �FY2025-26Value� Neutral Liability lPreR.v.luationo valuation $ 400,000 0.8629$ 3,452 Post Revaluation Value $ 500,000 0.6384 $ 3,192 $(260) 25%Increase $ 400,000 0.8629$ 3,452 Post Revaluation Value $ 600,000 0.6384 $ 3,830 $ 378 50%Increase • Break even percentage increase in value—35% FY2024-25 Rev. ity Change FY2024-25Value Tax Liability %Increase FY2025-26 Value Ta from AML Rate I Ne'utiral � Wbix, Y2024- Pre-Revaluation $ 400,000 0.8629$ 3,452 Post Revaluation Value $ 540,000 0.6384 $ 3,447 $5 slue 35%Increase ORANGE COUNTY 7 NORTH CAROLINA Slide #8 Revenue Neutral Property Tax Rate Total Property Tax Base Growth 071/c Change from FY2024-25 7At., roperty Increase 50% Increase nt for Appeals 42.5% Increase in Real Property Only Include Personal Property and Motor Vehicles 38.6% Increase in Total Tax Base Slower Growth Compared to Real Property Account for Natural Growth in 35% Break Even Increase Property Tax Revenue ORANGE COUNTY S NORTH CAROLINA Travis Myren said this break-even percentage only applies to the county share of property taxes. He said those living in municipalities and those paying the Chapel Hill-Carrboro City Schools special district tax will have a different break-even percentage. 18 Slide #9 Revenue Neutral Property Tax Rate All Taxing Districts are Required to Publish Revenue Neutral Property Tax Rates 7CHC!S DlSTRlCT TAX 19.80 14.6AR GROVE FIRE 9.00 6.54 PEL HILL FIRE 13.87 10.79 DAMASCUS FIRE 12.80 9.79 EFLAND FIRE 10.28 7.38 ENO FIRE 11.98 8.71 LITTLE RIVER FIRE 7.39 5.35 NEW HOPE FIRE 13.84 10.15 ORANGE RURAL FIRE 11.49 8.21 ORANGE GROVE FIRE 8.27 5.81 SOUTH ORANGE FIRE 9.09 6.67 SOUTH TRIANGLE FIRE 12.80 8.75 RITE CROSS FIRE 13.84 10.30 ORANGE COUNTY 9 NORTH CAROLINA Slide #10 Questions? ORANGE COUNTY NORTH CAROLINA Commissioner Carter thanked Travis Myren for his presentation. She asked about the natural growth rate. She said it is her understanding that the natural growth rate is required by statute. Travis Myren said that is correct. 19 Commissioner Carter asked how the natural growth rate for Orange County compares to other counties. Travis Myren said the natural growth rate is dependent on new construction, so to the extent there is more new construction in surrounding counties, the natural growth rates would be higher in those counties. Commissioner Carter asked is Travis Myren has a sense of the appeals right now. Travis Myren said he does not have a sense of how the appeals may impact the tax base right now, but there are over 700 appeals pending. He said staff is continuing to monitor this and will have a better understanding of the potential tax base impact after the informal appeals period ends. Commissioner Carter asked if there is any indication that some types of properties are increasing more than others or if there is something that shows where values are increasing. Travis Myren said he can produce a heat map that will show areas of higher increase in the county. Commissioner Fowler said she recalls that the average increase for residential properties is 52% and it was lower for commercial properties. She asked if that is still the case and what is driving the difference. Travis Myren said those rates are based on the market demand, and there has been less demand for commercial property. Commissioner Fowler asked if apartment complexes are commercial or residential. Travis Myren said they are considered commercial. Commissioner Fowler said there are some residents living in apartments that are concerned their rent will go up. She asked if that could be attributed to the revaluation or if apartment complexes are taking advantage. Travis Myren said staff can spot check some complexes in each town to see. Commissioner Fowler encouraged residents that had significant increases to appeal. Travis Myren indicated he is always available to answer residents' questions and encouraged them to email him. Chair Bedford shared that the Board will have a work session next Tuesday on the capital budget. She explained the operating budget will be presented to the Board on May 6th and there will be many other work sessions about the budgets after that. 2. Public Hearings a. FY26 Annual Work Program for Transit The Board conducted a public hearing on the FY26 Annual Work Program (AWP) for transit and approve the Program. BACKGROUND: In 2011, Orange County voters approved a half-cent sales tax to fund public transit improvements. The sales tax proceeds can only be used for projects in the Orange County Transit Plan, which must be approved by the Orange County Board of Commissioners (BOCC) and the GoTriangle Board. The Transit Plan is implemented through the Annual Work Program that identifies funding for the fiscal year and is approved by the BOCC and GoTriangle Board. The Fiscal Year 2026 Annual Work Program was developed in accordance with the process and schedule as recommended by the Staff Work Group (SWG) on June 17, 2024. To date • February 19, 2025 —The SWG released the FY26 AWP for a 30-day public review period. • February 20, 2025 — Orange County Transportation Services (OCTS) presented the FY26 AWP to the BOCC. • March 19, 2025— The SWG recommended the BOCC approve the FY26 AWP. 20 The FY26 AWP lists planned transit projects for the next fiscal year. Orange County has no new transit projects planned or funded for FY26, but the expanded Mobility-on-Demand service will continue. Public Input A public notice was issued on March 25, 2025 for the public hearing (see Attachment 1)following a 30-day public review period. No public comments have been received. GoTriangle Update As stewards of Orange County's Transit Tax Financial Model, GoTriangle has requested revisions to the summary tables (pages 6-8) and the accompanying narrative (page 5) to reflect the final model run. The requested updates include the following adjustments: • Total FY26 AWP anticipated revenue: from $13,070,351 to $13,610,103 • Total projected operating expenditures: from $8,282,746 to $8,290,657 • Total capital expenditures: from $6,319,446 to $5,319,446 • Total fund balance utilization: from $531,841 to $539,752 Next Steps: The BOCC-approved FY26 AWP will be forwarded to the GoTriangle Board for its approval. Sarah Williamson-Baker, Deputy Transportation Director, introduced the item and reviewed the background information. A motion was made by Commissioner Fowler, seconded by Vice-Chair Hamilton, to open the public hearing. VOTE: UNANIMOUS PUBLIC COMMENTS: None. A motion was made by Commissioner Fowler, seconded by Vice-Chair Hamilton, to close the public hearing. VOTE: UNANIMOUS Commissioner Portie-Ascott asked what time Mobility on Demand is available. Sarah Williamson-Baker said the program operates from 9:00 am-5:00 pm. Commissioner Portie-Ascott said she recalls from her time on the Juvenile Crime Prevention Council that some families are not able to participate in services in the evening due to a lack of transportation. She asked if it is possible to extend the hours of the program. Travis Myren said staff can look into what extended hours would cost. He explained that the program is funded using the Article 43 transit sales tax. He said staff can look at the financial model for that to see if extended hours are possible. Chair Bedford suggested the Board go ahead and approve the Annual Work Program tonight and a budget amendment can be done later. Commissioner Fowler said she would agree with extending the hours of the Mobility on Demand program. 21 A motion was made by Commissioner Fowler, seconded by Commissioner Greene, to approve the FY26 Annual Work Program for transit (Attachment 2). VOTE: UNANIMOUS 3. Regular Agenda a. Change in Student Projection Methodology to be Used in Future Annual SAPFOTAC Reports The Board received a presentation from staff from Carolina Demography and authorized staff to change the student projection methodology of future annual School Adequate Public Facilities Ordinance Technical Advisory Committee (SAPFOTAC) reports to a methodology employed by Carolina Demography. BACKGROUND: Over the past two (2) years, the SAPFOTAC, a technical advisory committee representing the County, the Towns of Chapel Hill, Carrboro, Hillsborough, Chapel Hill-Carrboro City Schools and Orange County Schools, have discussed making improvements to the School Adequate Public Facilities Ordinance (SAPFO) enrollment projection, based on commonly identified limitations of the process. The County currently projects future enrollment through a series of mathematical formulas based primarily on historic enrollment. While this methodology has accurately measured growth in the past, it would not quickly reflect significant policy changes or development that is inconsistent with past growth trends. For example, the existing models would not pick up a very large development that generates a high quantity of students until those students start presenting in classrooms, and even then, a three-, five-, or ten-year average would only begin reflecting those increases over time. Similarly, a significant policy change like growth in educational options outside of a traditional public school setting may reduce projected student growth and space needs in a single year rather than over time. At the December 10, 2024 Business meeting, the Board of Commissioners authorized staff to provide notice to the parties of the SAPFO Memoranda of Understanding (MOU) that the student projection methodology will be changed to be one employed by the Operational Research and Education Laboratory (OREd) or Carolina Demography. In accordance with the SAPFO Memoranda of Understanding, a letter was sent to the SAPFO partners in January inviting comment on the proposed change. No comments were received. On March 16, 2025, the SAPFOTAC held its annual meeting, and received presentations from both consultants. The six (6) entities voted unanimously to recommend Carolina Demography to provide future enrollment projections. The technical advisory committee appreciated the variety of variables that were used in Carolina Demography's previous enrollment projections, including population estimates, births, approved developments, and charter school enrollment. Carolina Demography provides enrollment projections for Wake County and Brunswick County. Kirk Vaughn, Budget Director, reviewed the background information for the item and introduced Nathan Dollar of Carolina Demography. Nathan Dollar made the following presentation: Student Enrollment .� Forecasting Process 22 Slide#1 r OEM Po I^I Orange County Board of Commissioners ,�,.,_, Chapel Hill, NC Dr. Nathan Dollar, PhD Data for the People Executive Director T 1�1L`T11/� C1ROu""11111111110arolinademography.cpc.unc.edu CAROLINA �Jl,�/I IOPIIIATICIN[ENTER D E M 0 G R�P H Y Slide #2 Slide #3 About Carolina Demography Who we are Carolina Demography is the applied demography unit of the Carolina Population Center(CPC}at UNC-Chapel Hill.We are anon-partisan team of population scientists working for the people of North Carolina. Our Mission We help people understand a changing North Carolina to make informed decisions. �UNC cARouNn CAROLINA POPULATION CENTER carolinademography.cpc.unc.edu DEMOGR-PHY About Carolina Demography: What We Do �R (OD D Find and Collect Clean,Analyze,8 Communicate data and Data Interpret Data engage stakeholders We work with you to determine We use rigorous methods to We strengthen the capacity the data you need,and where translate the data and provide of your organization to and how to access that data. meaningful context. communicate data-driven ideas. �T 71�TC CAR�LINA CAROLINA Vir POPOLATION[ENTER carolinademography.cpc.unc.edu DEMOGRAPHY 23 Slide #4 What is an enrollment forecast? What is it not? What is it? • A scientific"most likely"scenario based on all inputs. • Avery useful planning tool, if used correctly and questioned. What is it not? • A crystal ball that will tell us,with complete accuracy,what enrollment will be in 10 years. • A random and wild guess at what enrollment will be in 10 years. CAROLINA �UNC POPO CAROLINA LATIONCENTER carolinademography.cpc.unc.edu DEMOM PHY Slide#5 What is the goal of the enrollment forecast process? To develop reasonable enrollment forecasts that take into account: a) Demographic processes(i.e., births, migration) b) Historical enrollment patterns c) Potential changes in charter and private school expansions (i.e., market share) d) Local Development e) COVID-19 effects T TATC CAROLINA CAROLINA j carolinademography.cpc.unc.edu DEMOGRAPHY POPULATION CENTER Slide #6 Enrollment Forecasts: A Collaborative Effort CAROLINA DEMOGRLPHY ^ Demographic y/, nge y Anal tics Advisors soh ��nR! ORANGE COUNTY NORTH CAROLINA J NC CAROLINA caroli nademography.cpc.unc.edu C A R O L I N A 2`J 1 V POPULATION CENTER D E M 0 G R t-.P H Y What We Take Into Consideration Key Considerations - Forecasts In other words, what data do we use? General: North Carolina or Orange 1. Historical Enrollment Patterns County/CHCCS Specific: 2. School Capacity&Attendance Zones 1. The impact of S406/H823—The Opportunity Scholarship 3. Demographic Processes Program expansion a) Births 2. Charter school proliferation. b) Migration c) Age,sex,race,Hispanic Origin trends 4. Built Environment a) Building Permits b) Known development areas(especially residential) and timing 5. Economics 6. COVID-19 �7 77�T� CA ROLINA C A R�L N A i, �l`� carolinademography.cpc.unc.edu POPULATION CENTER D E M O G R==P H Y 25 Slide#9 The Forecast Process Forecasts are adjusted annually to St•p 1. reflect changes in Compilation of enrollment, birth School Data StBP Z• rates,school-age Incorporate residents,and Receive Demagraphic& Step 3. enrollment data, Planning Qata Create Forecasts market share. charter billing from OCS& Combine school data, The farecast team CHCGS historic membership develops new data,demographic projections data,and planning data carolCAR 0L IN 4 .. .•raphy. . .u DEMOGRAPHY Nathan Dollar said the accuracy of the previous year's projections are also taken into account. Slide #10 Questions Commissioner Portie-Ascott asked if the school district ranking is captured. Nathan Dollar said that would be captured in the other data inputs as people moving into the area for their children. Commissioner Portie-Ascott asked if the growth of home-schooling is being factored in. Nathan Dollar said that is taken into account and he should have included that in his presentation. He said that data is limited, but the number is provided by the state. He said there was a big spike after COVID, but it has leveled off. Commissioner Carter said she believes there is legislation that's been proposed to include homeschooling in Opportunity Scholarships and if it would be factored into the model. 26 Nathan Dollar said yes and that private schools and homeschools are the two slipperiest data points and they are working on ways to improve that. Vice-Chair Hamilton asked who are the demographic analytic advisors are. Nathan Dollar said they are partners and they are a private firm that they have been working with for yers. Vice-Chair Hamilton said one of the things she's seen since she's lived here is turnover in specific neighborhoods. She asked that is picked up and accounted for. Nathan Dollar said they would look at the census track data and age structure per unit. He said that local historical data would be used. He said that older units tend to be occupied by younger families due to affordability. He said some assumptions will have to be made, but they will be very clear about what those assumptions are. He said they will do groundwork to verify their assumptions and data. Commissioner Fowler asked if this is supposed to be better because of the many other factors that will be included in the forecasting. Kirk Vaughn said it will also be more flexible to trends vs. having to wait and see and a more correct prediction. Nathan Dollar said they look at historical birth to kindergarten ratios and then build a pattern. He said they also look at grade progression ratios and migration patterns. Commissioner Fowler said a lot of people used to come for sabaticals and they would bring children. She said it seems that has went down after COVID. Nathan Dollar said they will be able to see the in and out migration. He said it would not be individual level data. He said in CHCCS there was a lot of out migration of school aged children in the years following the pandemic. Chair Bedford said SAPFO is used for school building planning purposes. She said when budgeting for enrollment, they have been using DPI's data. Kirk Vaughn said this change is mainly for capital building purposes. He said the DPI data will still be used for operating budgets. Commissioner Fowler asked if pre-K is included. Kirk Vaughn said enrollment projections and capacity calculations did include that. Chair Bedford asked if it is state law to use DPI for operating budgets. Travis Myren said no. He said the county has historically funded more students than show up in the classroom. He said a discussion could occur between the county and school districts about what methodology to use for the operating budget in the future. Slide #11 CAROLINA DEMOGRI PHY u Work With UsSign up for our Contact us via newsletter: our website: What questions do you have E E 2 about yourcommunity? What data •• you need to make better d • ❑� NEI carolinademography.cpc.unc.edu 27 A motion was made by Commissioner Fowler, seconded by Commissioner Carter, to authorize staff to change the student projection methodology of future annual School Adequate Public Facilities Ordinance Technical Advisory Committee (SAPFOTAC) reports. VOTE: UNANIMOUS b. Purchase of Property for the Crisis Diversion Facility The Board reviewed and approved the Purchase and Sale Contract for a 5-acre parcel of land located off Waterstone Drive in Hillsborough to build a Crisis Diversion Facility and authorized the County Manager to execute all necessary documents to close on the property upon final review by the County Attorney. BACKGROUND: In the FY 2024-34 Capital Investment Plan, the Board approved $2,047,155 to design a Crisis Diversion Facility and $22,952,845 to construct it in FY 2025-26. Additionally, in the FY 2024-34 CIP, the Board approved $1,100,000 to acquire land for the facility. After an extensive search, the County identified a property near UNC Hospital in Hillsborough as the best option for the Crisis Diversion Facility (Locator Map at Attachment 1). This property is considered ideal because of its proximity to UNC Hospital, is already zoned for hospital use, and is of sufficient size to allow for an attractive one-story facility with grounds for a large courtyard and healing garden, as shown in the conceptual site plan (Attachment 2). The rezoning of the property for hospital use was based on the developer's previously approved Master Plan with the Town of Hillsborough and will save the County significant time in developing the site. The County has already performed extensive due diligence on this property and found no issues of concern. The review process included a phase I environmental assessment, a geotechnical survey, and a review of the title records.Additionally, a preliminary site plan review was completed with the Town of Hillsborough and no items of concern were found. After extensive negotiation with the owners, Capkov Ventures, Inc., the County has agreed to purchase the property for $1,350,000. The terms of the purchase include $25,000 in earnest money, a 60-day inspection period, and that the County will close on the property by June 30, 2025. The agreement allows the closing date to be extended by two (2) 30-day periods, with an additional fee of $10,000 per extension. The extension fees and the earnest money would be credited to the sale when the County closes on the property. As part of the site development approval process, the Town of Hillsborough may require the County and the owner to pay for the future construction of the road to the northern border of the Roger Dale Stephens lot, at a cost not to exceed $35,000. In the purchase and sale contract, the County also agrees to build stormwater features large enough to handle the stormwater from the Capkov property that is located directly north of the County's property, which Capkov intends to develop at a later time (a conceptual site plan is provided at Attachment 2). Additionally, during the 60-day inspection period, the County and Capkov must agree on a final site plan, easements to be conveyed to Capkov at closing, and a declaration. Capkov requires the easements to allow it to install stormwater piping for the stormwater features installed by the County. The declaration will cover the maintenance of landscaping and the stormwater system, and restrictions on the owner's northern property that would be deemed incompatible with the County's use. 28 Schedule If the Board approves the purchase of the Waterstone site, the table below outlines the anticipated schedule for the project. Schedule Select Construction Manager At Risk/ Complete Due Diligence of Waterstone Site/Finalize Design Spring 2025 Complete Purchase of Waterstone site Summer 2025 Complete Construction Documents Summer 2025 Permitting Fall 2025 Bid/ Board Approval of Guaranteed Maximum Price/Start of Construction Winter 2025 Grand Opening Winter 2026/Spring 2027 Alan Dorman, Asset Management Services Director, introduced the item. He made the following presentation: Slide #1 ORANGE COUNTY NORTH CAROLINA Crisis Diversion Facility Site Review and Recommendation to Purchase April 15, 2025 29 Slide #2 WATERSTON E - LOCATION MAP Fr•EiIriER ki7 p n 't r o� 'k UNC Hosptal ycrnV 1'Fk Proposed Site of Crisis Drverson Facility k'flE OR Why Waterstone? �� A • Close to UNC Hospital • Already zoned for Hospital Use • Sufficient size for a one-story facility. ORANGE COUNTY NORTH C'.AROLINA 30 Slide#3 WATERSTONE - PRELIMINARY SITE PLAN -- + 'kk — 11 s - - --- ----- - ------- zsr. . .R Y ob9h'l��.y 1 r L* uvMOn+1e'.JLLJ ., ll ORANGE COUNTY NC)R-['H C`.AROLINA Alan Dorman said the area above the red line on the image will still be owned by the current property owner and will be developed in the future. 31 Slide#4 Terms of the Sale Sale Price: $1 ,350,000 Inspection Period: 60 Days Closing: by June 30t", 2025 Earnest Money: $25,000 Payment in Lieu: $35,000 to Hillsborough for future road construction to southern boarder ORANGE COUNTY NORTH CAROLTNA Slide #5 Purchase Process • During the Inspection Period (60 Days): County completes due diligence on the properly. The County and Capkov agree to a preliminary site plan,before submission to the Town of Hillsborough in early May. Capkov submits to the County easements and a declaration for County approval. The County may approve and record after the inspection period. • During/After Inspection Period — by June 30tn 2025 — Board approves easements and declarations and records them. — County prepares closing documents and closes on the property ORANGE COUNTY NORTH CAROLINA Commissioner Portie-Ascott said listening to those who have come to speak to the Board tonight, and considering the great success of the Crisis Diversion Team and Criminal Justice Resource Department, she questions moving forward with the purchase of this property now. She said that she has been very excited about the project, but it seems the world has been turned upside down in the last few weeks. Chair Bedford said this vote will be in two parts but would highly encourage the Board to buy the land, as it was included in this year's budget. Commissioner Carter said she also questioned the purchase and noted that the real estate market has shifted. She said she has questions about sharing the parcel of land. She asked how that will work. Alan Dorman said during the initial negotiations, there was discussion about sharing the development costs but that became difficult. He said the strategy became that they should buy the property and do what the Town of Hillsborough says to do for it to be developed fully. He said 32 that if Capkov never develops it, it will not change anything that the county has to do now in order to purchase the land. He said some of the stormwater costs could be shared. Commissioner Carter asked if the stormwater cost share is articulated somewhere where they can refer to it. Alan Dorman said it is in the Purchase agreement. Commissioner Carter asked if the site plan depicted the parcel circled in red. Alan Dorman said yes, and the building shown is a future building that Capkov would construct. Commissioner Carter asked about the parking for the Crisis Diversion Facility. She said it looks significantly smaller than the parking dedicated for the possible future development by Capkov. Alan Dorman said it is the minimum required parking. Commissioner Carter asked about the cost of developing the water and sewer. Alan Dorman said the specific costs will be in the next presentation, but the costs are planned to be covered by Orange County. Commissioner Greene said she is also very excited to see this and appreciates the concerns about the upcoming budget, but given this amount was already approved in the current year's budget, she believes this purchase should go through. Commissioner Fowler echoed Commissioner Greene's comments and reminded the Board that focusing on behavioral health needs is part of the Strategic Plan. She said she supports moving forward. Vice-Chair Hamilton said she appreciates others' comments. She said this is an example of where investment now will result in savings for residents later. She said they would have to look into what they would do less of if they do this. She said those are very hard decisions to make. She said given the difficulty in finding a location, and the benefits of this location, the Board should move forward with purchasing the property. Commissioner Portie-Ascott said she is in favor of being as efficient as possible in providing these needed services. She said she is thinking about the tariffs and hopes that it turns out that this is a good investment that will benefit residents. A motion was made by Commissioner Greene, seconded by Commissioner Fowler, to: 1) Approve the Purchase and Sale Contract for a 5-acre parcel of land located off Waterstone Drive in Hillsborough for the purpose of building a Crisis Diversion Facility; and 2) Authorize the County Manager to execute all necessary documents to close on the property upon final review by the County Attorney. VOTE: UNANIMOUS c. Approval of a Contract with Gilbane for Construction Manager-At-Risk Services for the Crisis Diversion Facility and Approval of Budget Amendment#8-A The Board reviewed the proposal and contract with Gilbane Building Company for Construction Manager-At-Risk services for the Crisis Diversion Facility, approved and authorized the County Manager to execute the contract, 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 of County Commissioners, and approved Budget Amendment#8- A. BACKGROUND: At its Business meeting on December 2, 2024, the Board of Commissioners authorized the use of the Construction Manager-at-Risk project delivery method for the Crisis Diversion Facility and for the County to issue a Request for Qualifications (RFQ) to select a firm to provide those services. 33 Orange County issued RFQ 367-005447 for the selection of a firm to be the Construction Manager at Risk ("CMAR")for the Crisis Diversion Facility on January 7, 2025. A total of eight (8) firms responded, and three (3)firms were selected to be interviewed by an Evaluation Committee that included Travis Myren, County Manager; Caitlin Fenhagen, Deputy County Manager; Alan Dorman, Director of Asset Management Services; and Tony Marimpietri, Chair of the Crisis Diversion Facility Subcommittee of the Behavioral Health Task Force. Interviews were held on March 6 and March 10, 2025. The Evaluation Committee has selected Gilbane Building Company. Gilbane's extensive experience in delivering behavioral health and crisis diversion facilities, combined with its commitment to community impact, makes it the ideal partner for this project. The company's expertise in cost-effective preconstruction services, innovative value engineering, and a proven track record in managing complex healthcare projects ensures that Orange County will receive a high-quality, efficient, and timely facility that meets the needs of the community. The contract with Gilbane includes pre-construction services for $179,928, and includes construction cost estimates, a review of project design and schedule, and other related services. Once the final design is completed, Gilbane will establish a pre-qualification process for contractors who wish to bid on the project and then accept bids from those firms. The final returned bids will be the basis for the Guaranteed Maximum Price ("GMP") for the facility's construction unless the County requires additional changes in the facility. The CMAR fees for the project are shown in the table below (Gilbane's proposal is provided at Attachment 2). The fees will be based on the GMP which the Board will adopt once the bidding has been completed. Gilbane Fees and other costs for Construction Manager At Risk Services for the Crisis Diversion Facility Preconstruction Fee $179,928.00 General Conditions (estimate) $946,379.00 Construction Manager Fee 3.75% Insurance 1.25% Subcontractor Default Insurance 1.25% Construction Contingency 4% Project Schedule Schedule Select Construction Manager At Risk/ Complete Due Diligence of Waterstone Site/Finalize Design Spring 2025 Complete Purchase of Waterstone site Summer 2025 Complete Construction Documents Summer 2025 Permitting Fall 2025 Bid/ Board Approval of Guaranteed Maximum Price/Start of Construction Winter 2025 34 Grand Opening Winter 2026/Spring 2027 Budget Amendment The current Capital Investment Plan (CIP) recommends funds for the construction of the Crisis Diversion Facility in FY 2025-26. A budget amendment for$285,000 is needed to move funds into the current fiscal year to pay for the pre-construction services and other project costs, including land acquisition, permitting, and closing costs. Budget Amendment #8-A will increase authorization in the County Capital fund by $285,000 and amend the following project ordinance: Crisis Diversion Facility($285,000) - Project# 10080 Revenues for this project: Current FY 2024-25 FY 2024-25 FY 2024-25 Amendment Revised Alternative Financing $3,397,155 $285,000 $3,682,155 Transfer From General Fund $250,000 $0 $250,000 Total Project Funding $3,647,155 $285,000 $3,932,155 Appropriated for this project: Current FY 2024-25 FY 2024-25 FY 2024-25 Amendment Revised Project Expenditures $3,647,155 $285,000 $3,932,155 Total Costs $3,647,155 $285,000 $3,932,155 There will be a staff amendment to the Recommended FY 2025-35 Capital Investment Plan that will reduce the FY 2025-26 funding by the same amount. Alan Dorman reviewed the background information for the item and made the following presentation: Slide #1 i ORANGE COUNTY NORTH CAROLINA Selection of Gilbane Construction Company to Provide Construction Manager- At-Risk Services for the Crisis Diversion Facility April 15, 2025 35 Slide #2 TIMELINE • Dec 2, 2024- Board approves use of Construction Manager-at-Risk procurement process for Crisis Diversion Facility • January 7, 2025—County issues RFQ 367-005447 for the selection of a firm to be the Construction Manager at Risk ("CMAR") • March 6& I W, 2025— Eight firms submit proposals, with 3 firms selected for interview by Evaluation Committee • April 151h— Board approves Gilbane Construction Company to provide CMAR services for the Crisis Diversion Facility ORANGE COUNTY NORTH CAROLINA Slide #3 NEXT STEPS • Spring 2025- Site Plan is submitted to Hillsborough for approval • Summar 2025—Design completed, with input from Gilbane, and submitted to permitting authorities • Fall 2025—Permits are approved, Gilbane bids projects • Winter 2025—The Board will approve a Guaranteed Maximum Price ("GMP") for constructing the Crisis Diversion Facility. — A GMP is the total price the County will pay to constructthe facility. Unless the County requests a change in design,the CMAR will be responsible for ail cost overruns. 149al—k-, ORANGE COUNTY NORTH CAROLINA 36 Slide #4 WHYA CONSTRUCTION MANAGER-AT-RISK Compared with Design-Bid-Build or Design-Build a Construction Manager-At-Risk Provides these Advantages: • Earlier cost estimation and value engineering • Better Design Control • Lower Change Order Risk due to the early involvement of the Construction Manager • Financial Risk Transferred to CMAR with GMP ORANGE COUNTY NORTH CAROLINA Slide #5 WHY GILBANE • Gilbane's extensive experience in delivering behavioral health and crisis diversion facilities-485 Health Care Projects, 26.9 Million Sq.Ft.,$15.2 Billion — Sarasota Memorial Hosptial-Venice I CMAR 1$273,266,944 — Bon Secours Church Hill Medical Office Building I CMAR $12,120,517 — Orlando Health Skilled Nursing Facility I CMAR 1$30,000,000 — H.Lee Moffitt Cancer Center CUP Building I Design-Build 1$11,200.000 — HCA Oak Hill Hospital Bed Expansion I CMAR 1$25,012,131 — Tampa General Hospital Central Energy Plant Expansion I CMAR 1$47,000,000 — Medical Office Building at Saint Luce Medical Center I CMAR 1$33,834,904 — American Cancer Society Benjamin Mendick Hope Lodge I Design-Build $546,000 — Delray Medical Office Building Proton Therapy Cancer Treatment Center CMAR 1$26,000,000 — Saint Vincent's Southside Hospital Facade Restoration I CMAR 1$23,416,538 • Their expertise in cost-effective preconstruction services and innovative value engineering. • $4 billion commitment to inclusion and diversity Gilbane committed to generating$4 billion in awards over five years(2022- 2026)to certified minority and women-owned businesses and disadvantaged LGBT,and veteran-business enterprises as part of a comprehensive economic inclusion strategy. ORANGE COUNTY NORTH CAROLINA 37 Slide#6 Gilbane's Proposal and Project Schedule • Gilbane Fees and other costs for CMAR Services for the Crisis Diversion Facility: Gilbane Fees and other costs for Construction Manager At Risk Services for the Crisis Diversion Facility Preconstruction Fee $179,928.00 General Conditions(estimate) $946,379.00 Construction Man ager Fee 3.75% Insurance 1.25% SubccntractorDetault Insurance 1.20% Construction Contingency 4% • Project Schedule: Schedule Select Construction Manager At Risk/ Complete Due Diligence of Waterston Site/Finalize Design Spring 2025 Complete Purchase of Waterston site Summer 2025 Complete Construction IOocuments Summer 2025 Permitting Fall 2025 Bid!Board Approval of Guaranteed Maximum Price/Start of Construction Winter 2025 Grand Opening Winter 2026/Spring 2027 ORANGE COUNTY NORTH CAROLINA Jeff Lewis, the Raleigh Business Unit leader with Gilbane, introduced himself and said a few words about Gilbane and their history. Morgan Beam with Gilbane reiterated the advantages of the construction manager at risk method. Commissioner Carter said it is fair to say that there was a lot of interest from the Board to move quickly. She said tariffs are going to change and asked if there is flexibility in the contract. She said she supports the center but wants to factor in the macroeconomics. Alan Dorman explained that there is nothing on the table tonight that would obligate the Board to build the Crisis Diversion Facility. He said this process authorizes funds to allow Gilbane to look into how much it will cost to build. Commissioner Fowler asked if the GMP would change depending on the tariffs. Travis Myren said as part of the due diligence on the site, there will be analyses and the county would carry a contingency in the budget. He said the CMAR will help identify the amount for contingencies and any risks they should prepare for in a worst-case. Commissioner Carter asked if tariffs would have to be covered by a contingency. Chair Bedford said unforeseen government actions is noted in the contract, but it is not noted who gets to stop the clock. She asked if there was flexibility and if they have managed this type of situation in the past. Jeff Lewis said Gilbane monitors these types of things on a daily basis and manages them by getting ahead and working with clients and design partners to get alternate materials and methods to mitigate. He said the fear is the unknown and something that cannot be guaranteed. He said there are choices that can be made in the future to mitigate those things. John Roberts said that section of the contract allows for adjustments to time and the maximum price. He said he is not comfortable that the contract can be worded in a way to prevent unknowns related to federal tariffs and the global economy. 38 Morgan Beam said the process has different estimating milestones throughout the process. He said that they put an initial conceptual estimate together and then as they progress, they see how those things play out. He said that there are also material lead-times that have to be known. He said there are some long lead times, and those two things give the Board an offramp during the preconstruction process. Commissioner Carter asked for clarification on the vote tonight. Alan Dorman said they are authorizing the preconstruction fee and the construction manager's fee, but they are not approving the entire construction budget. Chair Bedford said she thinks they should move forward with this because it has to be done to find out what the projected costs are. Commissioner Portie-Ascott asked if this is approved tonight and they decide to wait, if a new estimate cost more. Jeff Lewis said they will have three windows to check the estimates that are included in the preconstruction fee. Vice-Chair Hamilton she would like to hear about other delivery methods before the Board moves on. She said she would like to table this decision for another business meeting. Morgan Beam said that when they start now, the $179,000 includes those services. He said if it is paused, they would need to evaluate what they are looking for with the follow-up services. Jeff Lewis said there is some leeway and that changed a lot during COVID. He said that now, the number has some time built into it, but it is usually not a full year. He said the biggest benefit of this process is that everyone is working together to manage a budget. Chair Bedford said the set price and the opportunity to determine costs and needs up front are two advantages. Alan Dorman said CMAR is the middle ground of the three types. He said this method will have less change orders and also include the competitive bidding process. He said that you get an expert to manage the designers, the risks, and bidding out all the subcontractors. Commissioner Greene said she sat on the Chapel Hill Town Council, and they used the CMAR method. She said the GoTriangle Board of Directors also uses this method and is confident with moving forward with this. Chair Bedford said she was a commissioner when they used a CMAR for the Detention Center. She said it was helpful in several ways and provided options. Commissioner Fowler said this seems like the best choice to her. A motion was made by Chair Bedford, seconded by Commissioner Greene, that after considering the advantages and disadvantages of all delivery methods the construction manager at risk method is in the best interest of the project. VOTE: UNANIMOUS Chair Bedford asked how much money the Board is committing to spend tonight. Alan Dorman said $179,928. A motion was made by Chair Bedford, seconded by Commissioner Fowler, to: 1) Approve and authorize the County Manager to execute the contract, 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 of County Commissioners; and 2) Approve Budget Amendment#8-A. 39 Vice-Chair Hamilton asked if the $285,000 amount is already in the CIP. Alan Dorman said all construction costs are in next year's budget and this budget amendment allows them to get started immediately with the $179,000 for Gilbane to get started. He said they can get them the exact breakdown. Vice-Chair Hamilton asked if the $285,000 includes the preconstruction fee. She also asked if it includes the $250,000 that is another transfer. Travis Myren said the design fees were lower than budgeted, so they can absorb those additional costs in this current year's budget. Commissioner Portie-Ascott asked if they needed to extend the due diligence period and if funds would be necessary. Alan Dorman said that it was not included because construction funds would be available. Commissioner Portie-Ascott said she is hoping that since the market is changing, the county will not have to pay the additional due diligence $10,000. Chair Bedford said it is in the contract. VOTE: Ayes, 5 (Commissioner Carter, Commissioner Greene, Chair Bedford, Vice-Chair Hamilton, Commissioner Fowler); Nays, 1 (Commissioner Portie-Ascott) MOTION PASSES 8. Consent Agenda • Removal of Any Items from Consent Agenda • Approval of Remaining Consent Agenda • Discussion and Approval of the Items Removed from the Consent Agenda A motion was made by Commissioner Fowler, seconded by Vice-Chair Hamilton, to approve the consent agenda. Commissioner Greene brought attention to item 8-f. VOTE: UNANIMOUS a. Minutes The Board approved the draft minutes for the February 25, 2025 and March 6, 2025 BOCC Meetings as submitted by the Clerk to the Board. b. Refund Request for Overpayment of Excise Tax from Kennon Craver, PLLC, Attorneys at Law The Board approved a refund request for overpayment of excise tax in the amount of$444 to Kennon Craver, PLLC, Attorneys at Law. c. Fiscal Year 2024-25 Budget Amendment#8 The Board approved budget, grant, and capital project ordinance amendments for Fiscal Year 2024-25. d. Application for North Carolina Education Lottery Proceeds for Orange County Schools (OCS) to Drawdown Funds from the North Carolina Department of Public Instruction The Board approved an application to the North Carolina Department of Public Instruction (NCDPI) to release proceeds from the NC Education Lottery account related to FY 2024-25 debt service payments for Orange County Schools (OCS). 40 e. Application for North Carolina Education Lottery Proceeds for Chapel Hill-Carrboro City Schools (CHCCS) to Drawdown Funds from the North Carolina Department of Public Instruction The Board approved an application to the North Carolina Department of Public Instruction (NCDPI) to release proceeds from the NC Education Lottery account related to FY 2024-25 debt service payments for Chapel Hill-Carrboro City Schools (CHCCS). f. Enhanced Voluntary and Voluntary Agricultural District Designation — Multiple Farms The Board approved applications from three (3) landowners/farms to certify qualifying farmland within the Schley/Eno and Caldwell Agricultural District Regions; and enroll the lands in the Orange County Farmland Preservation Program's Enhanced Voluntary Agricultural District or Voluntary Agricultural District program. g. Schools Adequate Public Facilities Ordinance (SAPFO) — Receipt and Transmittal of 2025 Annual Technical Advisory Committee Report The Board received the 2025 Annual Report of the SAPFO Technical Advisory Committee (SAPFOTAC) and transmit it to the SAPFO partners for comments before certification in June. h. Public Safety Telecommunicators Week Proclamation The Board approved a proclamation recognizing the week of April 13-19, 2025, as Public Safety Telecom municators Week in Orange County, highlighting First Responders for the amazing work they do throughout the year. i. Approval of Performance Measures for the Countywide Strategic Plan The Board approved performance measures for the Countywide Strategic Plan. j. Boards and Commissions —Appointments The Board approved the Boards and Commissions appointments as reviewed and discussed during the April 8, 2025 Work Session. 9. County Manager's Report Travis Myren had no report for the Board. 10. County Attorney's Report John Roberts said the bill filing and bill introduction period is mostly over, except the House filed four more today, which may also impact local government land use. 11. Appointments None. 12. Information Items • April 1, 2025 BOCC Meeting Follow-up Actions List • Memorandum - Recognition of County Employee Retirements from January 1, 2025 through March 31, 2025 • Memorandum - Earth Evening: A Celebration of Earth Day 13. Closed Session None. Adjournment A motion was made by Commissioner Fowler, seconded by Chair Bedford, to adjourn the meeting at 9:56 p.m. VOTE: UNANIMOUS 41 Jamezetta Bedford, Chair Recorded by Tara May, Deputy Clerk to the Board Submitted for approval by Laura Jensen, Clerk to the Board