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Agenda - 10-07-2008 - 6c
1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: October 7, 2008 Action Agen a Item No. - G SUBJECT: Contract with NC Agricultural Development and Farmland Preservation Trust Fund for the Regional Value-Added Shared-Use Food & Agricultural Processing Center DEPARTMENT: Economic Development PUBLIC HEARING: (YIN) No Cooperative Extension -- ATTACHMENT(S): INFORMATION CONTACT: Contract Brad Broadwell, 245-2325 BOCC Resolution Feb. 19, 2008 Noah Ranells, 245-2330 BOCC Minutes Feb. 19, 2008 Fletcher Barber, 245-2050 BOCC Minutes Feb. 12, 2008 Partner County July 17, 2008 Meeting Agenda ' PURPOSE: To approve a contract with the NC Agricultural Development and Farmland Preservation Trust Fund fora $132,000 grant for the Regional Value-Added-Shared-Use Food and Agricultural Processing Center. BACKGROUND:. On December 11, 2007, the BOCC authorized staff to submit a grant application to the NC Agricultural Development and Farmland Preservation Trust Fund to support the implementation of the November 2007 Feasibility Report. This project will build capacity for local farmers to meet the increasing consumer demand for retail and wholesale marketing of locally grown farm products in the Piedmont region of North Carolina. At a BOCC Work Session on February 12, 2008, designation of the 500 Valley Forge Road property and funding for implementing the feasibility study completed in November 2007 were discussed by the BOCC. At the February 19, 2008 regular meeting of the BOCC, a resolution was unanimously approved to "...formally allocating the former Orange Enterprise Building on Valley Forge Road in Hillsborough for development of a regional value-added shared-use food and agricultural processing center". In addition, it was resolved that "...the shared monetary compensation for the Valley Forge property will be determined later and request that equitable fiscal support among partners be pursued that recognizes the allocation of the Orange Enterprise building owned by Orange County." The compensation issue for the facility was shared with the commissioner group that is guiding this process on July 17, 2008. At that time, the Valley Forge building was assessed at $250,973 and the land at $176,847. The commissioner group will consider the funding issues pending the outcome of the various grant applications. The center will accommodate a range of processing needs and allow for future expansion. Business development support and education (especially training for new food-based businesses), developing business plans, and meeting food safety requirements will allow the center to engage rural farm communities with the opportunities offered by the center. Revenue projection from user fees that provide incentives for sourcing locally grown farm products is $150,000 by year 3 of operation, with gross income for clients using the facility estimated at $2,651,000 per year. This facility will have the potential to serve farmers from 16,214 farms in 22 counties within a 75-mile radius of Hillsborough, North Carolina, representing almost 30% of farms statewide. Farmers and their rural communities as well as tobacco processing and marketing communities can benefit from participating in training and education programs, adding value to and marketing local farm products. Within the 22-county area, this center can enhance the capacity to process local farm products for the 3.3 million individuals who are potential customers for the products created at the center. The short-term goal of the project is to open a regional value-added shared use food and agricultural processing center in January of 2010 with a range of programs and equipment. The success of the short term goal will be measured by client use and revenues generated by the center, as well as training and assistance to farmers and other food entrepreneurs. The long term goal is to become financially independent by 2013. This will be accomplished by building the capacity to process and market North Carolina agricultural products, thereby. increasing the number and diversity of farm operations that help to sustain the Piedmont region. Staff from EDC and Cooperative Extension have continued efforts to fund the implementation of the November 2007 feasibility report. A $132,000 Agricultural Development and Farmland Preservation Trust Fund grant was awarded to this project on June 20, 2008, and the contract is attached. Partnering counties (Alamance, Chatham, & Durham) have each provided $2,500 towards the feasibility report and have each passed resolutions to continue the partnership through implementation of the feasibility study. Chatham County's grant writing specialist was especially helpful in preparing grant applications to Golden Leaf Foundation and the Tobacco Trust Fund Commission. Orange County has provided $5,500 and staff support to this project. FINANCIAL IMPACT: The financial impact associated with signing this contract involves the commitment of the property and building at 500 Valley Forge Road and precludes the use of the building for other purposes. In addition, staff will continue to devote time towards the implementation of this project. Given the total $1,218,500 cost of establishment and first year of operation, the project needs an additional $1,046,000 to fully implement the feasibility study. All grant funds will be guided with assistance from a 501(c)3 non-profit group to be developed from the 40-member advisory group and a 65-member producer group. A $567,000 request to Golden Leaf Foundation would fund $268,000 for renovation costs of the facility and $299,000 for purchase and installation of equipment necessary for the center to function. The Tobacco Trust Fund request would fund $357,000 for purchase and installation of equipment and $122,000 of first year operating costs. Staff met with Golden Leaf Foundation representatives to discuss the proposal on September 16, 2008. Both grant programs will announce recipients in October or November of 2008. The Golden LEAF grant is to be used in 12 months and the Tobacco Trust Fund grant is for up to 24 months. RECOMMENDATION(S): The Manager recommends the Board approve the contract for a $132,000 grant for the Regional Value-Added-Shared-Use Food and Agricultural Processing Center, subject to final review by staff and the County Attorney, and authorize the Chair to sign the contract document. 3 ~ ~ North Glaralina ~-~ricultural Ctevelopment ~ , '~°~'• farmland Preservation Trust ~ulnd . ~ ;+ r• ,:art ,. ~:.4,: v ~ QM:.SrLTeTrtTkr rcln.r ~c.twcz:~.c.cnla~ac •.•:,as - pug,u~15, 200tf BrvCt hodR'w^ ~~,~~,,,..,^ (Y ~ , Ms. Laura~lackrnonlCaun Mane er „ Orange County ~- - -- -_.....-- --- -' ~,ra e^^avs LIIf,nlttX.ulT1t,R PQ Box 8181 NC 27278 Hinsbofough q..m,^ , c«T,c°to pear Ms, Laura Blackmon: ~N1RM4\fJRSiL\ t>~~ITT OFFER OF AWARD M1I{3TIFICATIC}N -CYCLE I ^.m®gGeaMr ,I>z~n~:...a 9'dlr Gaikc ..•er^.: ,~,~In ,acsuanlc I n.,,ce ~c wam^v H.,Mn.^n ,r,occm In. aocmcTlxn n„wac 8o6-Y ~4'! ~C,yoea fFIIai~2 i~~irs „A92tiATp:~ ~.~~ .,..axnrn¢cituT.,~~ Iveuve Yd Joan, Ei.0. scmc,c ~.,crcccr.ru, !^a1 Macr ~zacar m ~ d v,smwoa^Rw~c ~ar„r ro~^^ CVNR ra .'IAIt1L' T. v,. Vt ~y Pe1en^n u ,ccmr:naxs,,,,~:c G,TYT:,rBab^rJro0+ It is with great pleasut8 that the NC peparlmeni of Agriculture and Consumer g~rices offers to you 5732.000 for ricuitu ate, hortic~ulturat; nd fr~reSUands to fosterr tNe growth, deiuaiopme ~ tin of qualifying ag sustainabTitir ~ family farms. This finanCiat assistance tray been made possible by the Departmen s Agriwttural Development and Farmland Pt+esi~~on {ADFPa Trust Fund foam the 2087-200$ Session afthe Nrrth Carding General Asseml•-ly's budg ~ryclased are two original eontracta far your review and acceptance- By s'gning and dating these documents you arm agreeing to the specific stipulations; the general terms and conditions; and ~ sitter 19, rt20DB. requirements. It rs requested that you return the original contracts and checklist by p making sure that the contracts and~certaikefore the are retumed@ o your ApFP Thus Fund Co r~~qurreld dacurnents $re notarized. as app Administratvr_ the Department, one original Contract wits be forwarded to you for yQUr records• For Upon final execution by Rln .~~, and a "Request far Qaymont" form will tre forwarded to YQu your o4rrven'rence, all apprtapriate rape - 9 along with your copy of the fully executed lease co Inlact the Contract Admini tratar at 949{7ttt~r~ t4 the forrns cx~rttsined in your offer packet, p or 919-733-2018 eict. 25i. You are invited to aitend Your choice ~ two ADFP Trust Fund wr~rkshops elan' designed to anawec your questions. These win tae held from 1 pm urrtit ~- pm on September 9, 20418, at the IredQil County Agrrcuibural Center in Statesville and on Septembe+' 10, 2DD8, at the .}ahnskan County A,gricullural Center in Smrthfield- 1 would like to take this rippodundY to thank you for participating in the North Carr~lina Agriruitural Development a,-,d Farmland Preservation Trust Fund's grad program. which has been est2kbtislted to pramate profitable and su3tainabla agncutture, conservation agreements, and agricultural oonservatikrn easements. ~cnt v .: *,ycas a +w.'+ ~ u,7wm aoaa p~ye,t$bcyn Jr. q ~ ai.,TRT w7Y1G J^cYieTUO^cR'~ mv~~cnrtcovilc ,. AlmuTiwWa. Pr.a pAae^e Wider u~mc Qwas+~,.cc cnn'reTa:nn 9Eee W^aM^a ,.•c.,cunnmu Sincerely, ' r Steven W. Troxier Commissioner of Agriculture Encbsures -Tw6 [Hfcr PBCJtet& Cc: Sandi+~ummings, DeperUrtienral Cranks and Corrtrdds Administrator PHpt~• {9'19j ~T ~. F'~ (974J T18-0C96 tOCA770M: ~,J~iLY7G 2 YYEST EUENT4N Sr• 7001 MU11L SERVI!"E GEAR EMR1L' ~94~P~ID~~ F~•EIOrL NC ~~ Rpf.E1GAi, NC?7849-'1067 4 North Carotins Itepsriment of Agricuttare and Consumer Servlcec A~gcitul~turst Diwetopment and Fsrrnland Preservation 't'rust Fund Z00?-20Q8 Contract A~reem~enk Dotume>i#stioa Checklist 7This Contract ~.~eE-ment Documcntation Checklist is providarl as a means to ensure t1~at alt Contract A~emeuis are submitted with the req,irircd infornsltion. Failure to include all informarion may cause delays with the execution of the Contract A~ment. This document must be completed and filed with. submission of the 20c!?-2008 ppntract a~rnent -----...__'n inns CAD07108 J. DeQartmental Use Only $TAtTE dF NCRTiH CARt~L.INl~ County of Uyake fir. nc~nt Co [Node: CUFA~lOU~er_ Contract ~ 1t-t]~M-A~FR-X08-05~'i IdC 1~rioultural pa~ioprnent and Farmland pr~,artration Trust Fund and between the North Carolina Department of AgriculUue and Cansttmer This ~ntract is hereby entered into tyy Services {Agency} and C-range Ccwnty {,Grantee). The Grantee's federal tax identification nurn~r is 5860610327_ e Granteer is physicatiy located in Qrange f ountY and is further located at 5aa +f.~U Financial assistance provided to the grantee under this c:onntract is fc~r Project # AD -1-~QFf-06-057 and for agr9cuiturai development to foster the growth, development, acrd sustainability of family farms- -The Grantee's fiscal year begins July i and ends June 30. Qn an annual basis, the Agency may eutemtlathbe p ropriate due o changes and to incorporate any other +changes that y policies, and procedures. t. CorrtraCt Documents: This Contract consists of the following dtxumertts: ency, for the purposes of a time extertsivn inapplicable rules and regulations, a, This Contract b. The General Terms and CQndit'oong tAttact-ment Ajt c. The Scope of Wtxk, description of services, or Grantee's proposal (Attachment B} . d. The Line Item Budget and Budget Narrative {Attachment Cj e. The Project Timeline (Attachment D} f. The Ownershipl~taintenance A~grearnent {~httachment E) These documents consCdute the entire agreement between the Rarties and supersede art prior Drat ur written statements or agreements_ 2. Precedence Among Contract Documertte: in the everrt of a conflict tsetween ce she I pt+evail The order of pra~dence she i be the order ~f docutmerds su sted wiitt the highest relative preceden in Paragraph 1, above. dencxthel f there are mu tiP enC~ Amendments, the dmast anent amendment hall have having the lowest prece file highest precedence and the oldest amendment shall have the lowest y~recedence. S, Et1f~CtiVe Period: This Contract shall be effective on July 1, 2aa~a, and shall terminda~ ~ ~nntghe 06ene ~'I Terms and Conciitionsd8s mutually agreed upon, through a written amendment as pro+l descttb~3d in Attachment A- 4. Grdrit~ee'S [7FUties; The Grantee shall ~oonduct activities as described in F4ttachmettt B, Scope of Wow, and in accordance with the apprctved budget in attachment C, the aF-proved timeline in Attachment O, and the fl+n+nershipdMaintenance Agreement in Attachment E_ in addition, the Grantee shall complete the activities as specified below. a, The Grantee sha8 be responsible for. the acquisition cif al! permits and licenses required in the pertcxn+arti'ce of the aforemertiY~oned activities ~ coal ren u~ahons a Scoi~ ~ 1Nork and for ensuring compliance with ail applicable Federal, Slate, county, and 1 9 wi ro rase n;ports quartetty- b, The Grantee shall also provide the Agency itt p g MS3NCR FaRn OOD€!A Gt~a+t [loiter Sheet Revised 08108 Page 1 t~ 12 Eti: 912005 Revised 5106~ 7Nf7 tO The Grantee shall also submit a fmal grant report; the Agency will retain 2096 of the grant amount unfit this report is received and approved by the Agency. The Grantee shalt complete all reports m a prescribed format, which shell tier provided by the Agency. $. A,g~ancy's puties~ the Grantee in the manner and in the amounts Specified in #t1e Contr~rd t~octrments, The total Trig agency shalt pey to the Grantee under this Contrail shall not exceed $~32AOg_ This amount Qortsisffi of amount paid by the Agency $132,Qf7t0 in State funds. a_ Thera are no matching requirements from thg Grantee. [X j b. The Grantee's matching requirement cS~h*~~0.'~ich shall consist oF: ~ j cash and in-kind [?4 Cash arrdfor In-kind The total contract amount is $171,6{7(1. 6. Conflict of Inter~sst policy: The Agency has determined that the i;rantee is not subject to N.C.G.S. 1430-6-23(b) 0007). ?. gtaterreent of Na Overdue Tax Detns: The Agency #~as detenningd that the Grarrteg is not subject to IV.C.G.S. 143C-6-23{c~. $, ~,gve~sion of Unexpend+ad Funds: Any unexpended grant funds shall revert tra the Agency upon termination of this Contract. 9. Rsporking R+a~qulr®men#s. The Agency has determined that the Grantee Is not subject ie thg reporting requirements mandated by N.C.G.S. 1430-B-23. fp. P~ryment Provisions: Upon execution of this Contract, the Grantee shall submit to the Agency Contract Administrator a completed "Request For Payment" form, to be prr~vided by the Agency, fvr an amount not to exceed $26.000. Thereattoer, ~tl~"tnr~u~s f~ payment" forms shall be submitted nr~ more often than monthly and strati bg supported by app pd other types of tilling documents. The (grantee may request frCxn the Agency ail remaining funds less 2D95 caf the awarded grant amount (refer to paragraph 4~ Line c). At a later data, but prior to the expiration date of thg Contrail, the Grantee may request the final payrtti+ent, which is the remaining 20°x6 of the awarded grant smog nt, ~~ths Grantee's submission of a final grant report determined to be in compliance with the Agency's report' g PeG The Grantee shaft submit alt requests for payrn ~ ;~ r~I payrn~ei'rt~s are cor tint upon f nil ova abityretahng to this contract period, to the Agency no later than Vf this Contract is terminated prior to the cxiginai end date. the G~ntgnc within G0 ctaysnot ihe~cantract termi~nafion form. All unexpended funds shall be returned by the Grantee to the Ag y date. The Grantee shall also provide the Agency withl be sd b the Agency Po dgtermmeththe a9rnourrt,wiU~ri ~ fi0 days of the contract termination date- The float report y expended funds ttt be r+etumed to the Agency try the Grantee. Payment shall be made in accordance with the Contract t]acuments and as described in the 5cxrpe of 'Work, Attachment B. M58rJCD Form ON7tt61~ Grant ('.over Shut R~evi~ed OSIOS Eff. 9Y204'15 Page 2 of 12 Revised 5!0&, 7147 11. Contrac# A-dministratc~rs: n one Party to the other and aA questions about the contract 'From one Alt notices permitted ar required tc> 6e give by party to the other shawl bed ~~. tNotir~e wia be deemed to be eve onr ttte date ~tls acha~ally deliv red to prepaid, and addressed as set hone numbef; fax number. and ernm'i address the receiving imrtY. The name, post office address, stree# address, telep m chap a the name, Post of the Parses' respective initial Contract Administrators are set out below. Ether Party aY g . OfliCe address, street address, telephone number, fax number, or ema~ address of its Contrad Admmistrator ay 9wmJ timely written notit~e to the other Party_ -• -- NC p~artment of Agritaultwe and ADFP Trust Fund 'tU01 Mail Service Cer-ter. Raie-9h, FdC 27ti'g9-1Qg1 Telephone (91g) ?15-120fi Fax {919} 733-12Q4 ., For thrar Agency- IF DELIVERED YY AB NY geryd~ NC pepartinent of ASriG ADFp Trust Fund 2'~1est Edenton Street Raleigh. MC 2?t3{i1 Fcrr the Grantee: Consumer t.aura t3laGanon. +..w~ ~~~ orange County pC1 Box 81$1 HtEisborough, NC 27278 Telephone 919242300 Fax Wl~i-~-' 12. pisbur$emerrt~: As a condition of this Contract, Grantee acknowledges and agrees to make distwrsernents in accordance with the following requir~StYterts_ a. implement adequate intersentedtfw payme ~t to determi e: tr_ Pre-audit ail vouchers pre 1Jalidity and dvcuracy of payment Payment due date Adequacy of documentation supporting Payment Legal'~ty of disbursement fates; v. Assure adequate control of signature stampsJp d. Assure adequate control of negotiable InsUvmenta; and e. ImpVernent pror,~adures to insure that account balance is solvent and reconcile the account monthly. 13. QutsauNCing: The Grantee certifies that it hasfurthefied t ~thtelt~t lt~uvill nlot ou$tscrur~e any such,obs tlurinp the ter m o th soContratct other countries, if any. Grantee ~ without providing votive th the Agency- Grant Cover Sheol Re+riSed 08t0a3 Page 3 of 72 off. 9'2045 Revised 5RiB, TIffT 0 i4. Signature W The undersigned represeot and warrant that they are authorized to bind their principals is the terms aE this agreement. In Wgness Whereof, the Grantee and the AelencY have executed iris Contract in dupiicate ariginais, with one original being retained Dy each party. Orange County gate ~irnratutiei cyt' I~uthorized RePreSetttatlve Printed Name WITNESS signature Printed Name North Darolina Depoartment of ~kgricutture S. Donsumer Seri-Ices signature: vF Authorized Representative Title Date - Date f:hlef Deputy Commissioner ~r:a:.,~ ry, ~,l~vw ~nuu~ Printed Name ru~S&N~p Fpm Oplr9A {,Pant Cover Sheol Elf. 9t2QU5 Revised 3f06, 7107 cAD Revised 081OB pegs 4 of 12 t Atbatchmettt A Genera! Terms artd t;onditiorrs DEFI~IITIpNS Unless indicated othentsrise from the context, the following terms shall have the following meanings in ittis Contract. Ail defmitians are from g NCAC 3M.01 t?2 unless otherwise noted. If the rule or statute tha# is the source of the definition is changed by the adopting authority. the change shall be incorporated herein {1} "Agency" (as used in the ron#ext of the definitions below} shall mean and include every public office. public offitaer or official (State or local, elected or appoint ~~,nastitud~ rtmen~t, commission, bureau, authority or other unit of government of the State ar of any county, unit, special district ar other political subagency of government. For other purposes in this Contract, A,genc~ shall mean the entity identified as one of the parties hereto. {2} "Audif" means an examination of records or financial accounts to verify their accuracy. {3} "Certification of Compliance" means a r>rp~ prouided try the Agency to the t3ffice of the State Auditor that states that then Grantee has met tthhS reporting requirements estattlished by Subchapter and included a statement of certiticatlon by the Agency and copies of the submikted grantee reporting package. {q} '•Compliance Supplement` refers to the North Carolina State Compliance Supplement, maintained by the Swithirt the North Carolina Finance Agency Department of State Treasurer that has been develtaped in cooperation with agenraes to assist the local auditor in identifying program compliance requirements arx! audit procedurets for testing those requirements. (5} "Contract° means a legal instrument that is used to reflect a relationship between the agency, grarrtee, and subgrantee. {B} "Fiscal Year" means the annual operating year of the non-State entity. (7) "Financial Assistance" means assistance that non~tate entities receive or administer in the fornn of {fronts. Ioarfs, loan guarantees. property {including donated surplus property}, popperafive ardr~ents, interest subsidies, insurance, food commodities. direct appropriations, and other assistance. Financial assistance does not inGude amounts reaeivQd as reimbursement for senricaes rendered to individuals for iuledican'e and Medicaid patient senrlr~es. i8) "Financial S'tatement' means a report Providing financia! statistics relative to a gi-ren ~ of an organization's operations or status. {9} "~rarti° means financial assistance provided by an agency, grantee, or subgrant ~ tl~ipates ono activities whereby tht3 grantor' programmatic involvement with the grantee or ~bgrantee during the performance of the grant. (10) "Grantee" has the meaning in hI.C.G.S. 143G-8- 23{a}(2r a non-State entity 'that reoei'Je~s a gran4 of State funds from a State agency, department. or institution but does not include ar~y non-State entity subject to the audit and other reporting requirements of the Kcal Government Commission. For other purposes in this Contract. "Grantee' shall mean the entity idenfified as one of the parties hereto. 411}»Grent~•» means an entity that provides resources, generally financial. to another entity in order to achieve a specified goal or objective. (12) "Non-StatE F~tli~l° has the meaning in M-C_G.S. 1430-7-1(d}(18}: Arry of the following that is not a State agency; ,ion individual. a firm, a partnership, an association, a county, a corporation, or any other organization acting as a unit. The kerrn includes a unit of local government and public authority. (13} "Piyblic J~,uthority" has the meaning in hi.C.G.S. 1430-1-1(d~22). A municipal corporation that is not a unit of local government or a local governmental authority, board, commission, cx~uncil, or agency that {i} is not a municipal corporation and (ii} operates an an area, regional, or multiunit basis, and the budgeting and ac.oounting systems of which are not fully a part of the budgeting and accounting systems of a unit of local government. (14} "Single Audit means an audit that includes an examination of an organization's financal statarnents, internal controls, and compliance with the requirements of Federal or State awards. {15} "Special Apprflptiativn" means a legislative act authorizing the expenditure of a designated amount of Public funds for a specific purpose. (161 'State Funds" means any funds appropriated by the filorth Carolina General Assembly cr collected by the State of North Carolina. State funds include federal financal assistance Nt3fJ Form OOQ~ Grants ~etieral Terms and Cortd'~Ums-Public S~e4kor Entities Eft. 9t2Gt]5 Revised 7E2bbT Rage ~ of 12 i~ received by the .State and transferred ar disbursed tiQ non-State entities. Bath Federal and State funds maintain their identity as they are subgranted to other ~ganiza6ons. Pursuant ~ N,C,G,$, 143C-6-23{an1y, the terms 'State grant funds" and "Stale graniS" do not include any payment made by the tJiedieald program, the Teachers' and State Employees' Compr+etiensive Major Medical Plan. or other Similar medical programs. {17} "Subgrantee" has th ~ non-State entity N. C_ G _S_ 1430-6-23{a}(3r that receives a grant of State funds from a . grantee or' from another subgrantee but does not include any nonState enh ements oof the Lora and other reporting equ Govemment CArrimission. (1$) „Unit of Eocat Govemment has the mmuni pal N.C.Ca.S; 1430-1-1{dyj29): t;crrporation #hat has the pourer to levy taxes, including a consolidated city-craunty as defined by M.C,G.S. 16pg-~{i}, and all beards, agencies, commissions, authorities, and institutions thereof that era not municipal carporatitxns_ ~talationships of the Parties InclQpendent Contractor: The Grantee is and shall be deemed to be an independent contractor in the performance of this Contract and as such shall be wholly responsble far the work to be performed and for the supervision of its empk~yees_ The Grantee represents that it has, or shall secure at its own expense, all personnel required in performing the services under this agreement. Such employees shad net tse employees of. or have any individual contractual nelatianship with, the Agency_ Subaantracting~ The Grant~e+s shall not subcontract any of the work corrtemplated under this Contract without prier written approval from the Agency. Any approved subrxintract shalt be Subject to all oonditiens of this Contract, t3nly the subcontractors ar subgrantees specified in the contract documents are to be considered approved upon award of the contract. The p~gency shall not be eb6gated to paY fer any work performed by any unapprm~ subcontractor or subgrantee. The Grantee shall be responsible fur the performance of all of its subgrantee5 and shall not be relieved of any of the duties end responsiblities of this Contract Sut>`granteas: The Grantee has the rosy v deb all ensure that all subgraniee5~ ttte Garantee to Qpmpiy information necessary to perm. watt, the standaMs set forth in this Contract. A$signmertt: No assignment Of #Ite Grantee's obligations or the Grantee's right to receive payment hereunder shall be permitted- Flaweaer, upon written request approved by the issuing purchasing authority. the State may, ia7 Forward the Grantee's payment cttedc{s} directly do any person or entity designated by the +Grantee, r5r {b} Include any person ar +entity designated by Grantee as a joint payee on the Grantees payment checkis}- In no event shaft such approval and at;tton obligate the State to anyone other than the Grantee and the Grantee shall remain respansifsle for fulfillment of all contract obligations- Beneifieiarles: apt as herein specifically provided ethervuisa, this Contract shall inure to the benefit of and be binding upon the parties hereto and their respective successors. it is expressly understood and agreed that ttte enforcement of the terms and conditions of this Contract, and all rights of action relating to such enForoemsnt, shall tie strictly reserved to the Agency and this named Grani>ee. hlothing pr~ntained in this document shall give or allow any claim or right of action whatseevar by any other third person. It i5 the express intention of the Agency and Grantee that any such person or entity, other than the Agency or the Grantee, reoeivtng senriceS or benefits under this Contract shall be deemed an incidental beneficiary only. 6nde9mnlty Indemnification: The Grantee agrees is indemnify and hold harmless the Agency, the State of Nerth Cari~lina, and any of their offiioers, agents and employees, from any claims of third parties arising out t5f any act or omission of the Grantee in connection with the perfomranr~.e of this Contract to the extent permitted by law. f7iefault and Tenninatian Terrnina~tion by (+i<utUal +Cansent: The ~ many terminafis this Contract by mutual taonsent with t30 days notice to the ether party, or as etherwise provided by Is~w T~armination for C~iuse: If, through any cause, the Grantee shall fail to fulfill its obligations under this Contract in a timely and proper manner, the 1~gency shall have the right to terminate this Contract by giving written notice to the Grantee and specifying the effeGtirre date thereof. In that event, alt finished or unfinished deliverable items prepared by the Grantee under this Contract shall, at the option of the Agency, berome its property and the Grantee shat) ba enti~ledtisfactory t+,vorlc and equitable cximpensa6on for arty rxxrtpleted pn sudl materials, minus arty payment +~' connpensation previously made. Notwithstantting the foregoing provision, the Grantee shall nosth ned1eby t e liability to the Agency for damages NGfl Form 000982 GrardS (,,gp~brdl Terms and C«diions-Pubric 3ecior En6ii06 Pa~gr: 6 t7# 12 Eif_ 912005 Rerr~d 7007 Agency by wtrtue of the Grantee's breach of this agreement, and the Agerncy may' withhold any payment due the Grantee for the purpose +b1` setoff arn47 such #irne as fie exact amount of damages due the Agency from such brrrach ~b the Grantee sha~be an act of deef~lt for bankruptcy y under this Contract_ Waiver of befauit: Waiver by the Agency of any default cs` breach in vompGance with the terms of this Carrtract by the Grantee shall not tae deem+ad a yvaiver of any sutasequerrt defaulk or breach and shall not be ca~strued to be modification of the terms of this Contract unless stated to be such in writing, signed by an authorized representative of the Agency and the Grantee and attached to the contract.' hvailafiility of Funds: The parties ant taf the sums agree and understand that the payrn specifred in this Contract is dependent and contingent upon and subject to the apprr~priation, allocation, and availabii'ity of lands foT this purpose to the Agen+;Y• Faroe Ma~euru: Neither partly shall he deemed to be try defaui# of its obligations hereunder if and so long as it is prevented from perharming such obligations by any act of war, hostile foreign action, nuclear exlstosian, riot, strikes, civil insumeation, earthquake, hurricane, tornado, or ott'rert catastrophic natural event car act of God. Surviual of Pir+omises: A11 promises, requirements, terms, conditions, provisions, representations, guarantees. and warranties contained herein shall survive the contract expiration or terrnlnation date unless speaficaily provided otherwise herein, or unless superseded by applicable federal ar State stakt-tes of limitation. Intellectual Rmper'ty Rights Copyrigtrts and Ownership of Deliverables: All deliverable item$ produced Pursuant to ibis Contract era the exclusion property of the A9enCY• The ~-'mntee~~ not assert a claim of copyright or other property in such deliverables_ Compliance vMith Applicable ~ws Compliance with Laws: The Grantee shall comply with all laws, cxdinances, codes. rules, rrgulations, and licensing requirements that are applicable to the Qcxaduct of its business, Including those of federal, state, and Iocat agencies having jurisdiction andtar authority. E+qusi Empioym~rrrt t~pparturtir#Y: The Grantee shall rorrtply with all federal and State laws relating to equal employment opportunity_ hlfi+0 Form Qf)oQB2 Oranis rener~t Tertnrs and Gcnd~ions~ubYO SecE Elf. 9P1005 Kevisa3d ?tZpOT Ganfideittiai~- Confidenti'atgY Any information. data. instruments. documents, studies or reports given to or prepared or assembled by the Grantee under this agreement shall be kept as c,anfidentia) and not divulged yr made available t4 any individual cr argarirr~tion without fhe prior wn'tten approval of the Agency. The Grantee acknowledges that in receiving, storing, pr+ocessmg ar otherwise dealing with any confidential informaton it w81 safeguard and not further disclose the information except as Mherwise prcaVided in this Contract. Oversight AcCes~s #cr Rersans and Records: The State Audikor shall have access trt persons and records as a result of ail contracts rat grants entered into by State agencies or political subdivisions in aodordance with N.C.G.S 147- 64.7. Ariditianatly, ~ the Sate ons and re orris as a Agency shall have access tca pars result of ail contracts or grants entered into by State agencies or political subdivisions. Retard Reben#ion: f~ecords shall not be destroyed, purged or disposed of without the express written consent of the Agency- State basic records retention pdicY requires all grant rectards to be retained fear a minimum caf five years or until ail audit exceptions have been regoly~, whichever is longer_ If the contract is subject #~+ Federal policy and regulations. record retention may be icnger U~an five years since records must be retained for a period of three~ years fcitovving submission of the final Federal Financial Status Refrort, if applicable, or three years following the submission of a revised final Federal Financial Status Report. Also. if any litigation, claim. negotiation, audit, disallowance action, or other action involving this Contract has been started before expiration of the five-year retention period described above, the records must be retained until oompletican of the action and resolution of ail issues which .arise from it, or,until the end of the regular frve- year period described shave, whichever is later. Miscellaneous Choice of (.aw: sions,~as'dweu ashth n'ghts end duties of its terms or pr+o~ the. laws of the parties to this Contract, are governed by Nortiti Carolina. 1'he Grantee, by signing this Contract. agrees and submits, solely for matters concerning this Contract, to the exclusive jurisdiction of the r.~vurts of North Carolina and agrees. so-ehr for such purpose, that the exclusive venue for any legal proceedings shall be +Atake County, North Carolina. The plaraa of this Contrast and all transactions and agreements relating bo it, and their sites and forum. shall be Vltake County, North Carolina, where ail matters, whether sounding in contrset or tart, relating th the validity, construction, interpretation, and enfarcemerrt shall be determined. K Enid pggg 7 pr 12 to Arnendrnen#: This Contract may not be amended grapy or by perforrnanc:e. Arty amendment must be made in wrdten form artd executed by duly authorized represerrtad++es aF the Agency and the Grantee. $everabil'ity: In the event that a court of competent Itrnsrl,cUon holds that a P~ G bls r law eaectt suah Cantcact violates any aPP ~ pravisron or requirement shall continue to be enforced tv the extent it is not in violation of law or is not triherwise unenforc~eabie and all ether pr~avisions and requirements of this Contract shall remain in full fare and effect. Headings: The Section and Paragraph hearings in these General Terms and £onditions are not rna#erial pares of the agreement and should not be used to oan$true the meaning ther+®of. Tirete a~f th~a Essence: Time is of the essenoB in the performance of this Contract. Carte crf ProperRy: The Grantee agrees that it stroll be responsible for the proper custody and care of any property furnished to it for use in connection +enth the perFcxmanoe aF this Contract and will reimb At the Agency for toss of, or damage to, such property, termination of this Contract, the Grantee shall contact the Agency fior instructions as to the ~dispasitian of such property and shag comply wfth these instructions. traYel Expenses: Reimbursement to the Grantee fcx travel mileage. meats, lodging and other travel expenses inrarrred in the perforrnarrce of this Contract shalt be reasonable and supported by docum+antation. State rates should be used as guidelines. tntemational trav+et shall not be reimbursed under this Contract. galeslUse Tax Refunds: 1faelk iblthe orth CaroGrta subgrantees sha~IL (a} Departmerst Qf Revenue for a refund of all sates and use taxes paid by them in the p~ertorrnance of this Contract, pursuant to Fd.C.G-S. 1d5-164.14; and fib) exclude all refundable sales and use takes from all reportable expenditures before the expenses are entered in ttreir reimbursement reports_ pdrrertesing: The Grantee shall rat use the award of this Contract as a part of any commercial advertising. rt[,Q Form OD~9B2 fixertts Ger~erai Terms end CendrTions-Publrc 5et#a' Erdi6e6 pp~, S of 12 Eff: ~IfZ005 Reuis9d Ff 2t1o7' !3 Attachment B The goal of this project is to establish a regional shared use food and agricultural processing center serving target farmers and food entrepreneurs in 22 counties within a 75 mile radius of Hillsborough, including Alamance, Caswell, Chatham, Davidson, Durham, Forsyth, Franklin, Granville, Guilford, Harnett, Johnston, Lee, Moore, Nash, Orange, Person, Randolph, Rockingham, Stokes, Vance, Wake, and Warren Counties. Alamance, Chatham, Durham, and Orange Counties formed a core regional partnership to fund and complete the feasibility study that quantifies demand and projected revenue, identifies suitable sites, specifies costs and steps to develop the facility, and estimates operational costs once the facility is open. Orange County, as the lead fiscal agent for the project, seeks the investment of the NCADFPTF as the project moves from the feasibility phase to the development phase. Project partners will continue to seek broader funding support to complete development of the facility, purchase the necessary equipment, form anon-profit entity to manage the facility, and open for business in 2010. The regional center will be developed as a multi-use value-added and agricultural processing facility. This choice of hybrid facility design will maximize the number of farmers, food processors, and caterers who can develop. new business ventures. In addition, the center will seek to foster business networking and strategic alliances among the farmer, food processor, and caterer clients. Existing shared-use facility models nationwide and in Buncombe, Ashe, and Madison Counties were examined for cost estimates and lessons learned in the February 2007 study, Developing Shared-use Food and Agricultural Facilities In North Carolina, http•//smithsonmills com/ncshareduse.pdf. Orange County currently owns property and a building that was recommended as the most suitable location for the center, and County Commissioners have dedicated the building for this processing center. Orange County will also provide in-kind staff time to help manage the project. County Commissions in Alarnance, Chatham, Durham, and Orange, as well as respective county Voluntary Agricultural District boards are currently reviewing the results of the recently completed feasibility study as they consider an official endorsement and further direct investment in the project. Support from the NCADFPTF will allow this project to hire a developer to lead efforts until the facility opens for entrepreneurial development. This individual will be responsible for overseeing every part of the development phase, including fundraising, facility renovation, equipment acquisition, and developing targeted programs for clients. NCADFPTF funding would also allow the county to hire an architect to develop blueprints and oversee bidding for construction services from a general contractor to begin facility renovation. Finally, this funding would allow us to begin the facility renovation phase itself, including demolition, clean-up, cleaning and sealing of the slab floor, and framing and drywall. The success of the project will be measured first by the pace of development, with a target to open for business in the fall of 2009. Next, the measure of success would be in the revenue that the center creates. Based on the initial surveys, client use at the facility is estimated to reach 142 production hours per week after the end of the first year of operation. On a 50-week basis and at an average use fee of $22 per hour, the facility is estimated to generate more than $150,000 in fees in its second or third year of operation. In the same timeframe, gross income for clients manufacturing at the facility is estimated at $2,651,000 per year. Ultimately, the project's success will be measured by the number and diversity of farm operations that it helps to sustain in the Piedmont region. Page 9 of 12 ii a C .~ ii S G W n ~p N r {~j. •~ d w a z J ,4` G] Q a J ~~ ~Q Q 3 az~i #~ a ~'~ ~~ ,,.. c •~ w Z ~~~ E '~ ''~ '~¢ ~~~ ~~~~ ~3~=c ~ ~'~~ ~~ ~~ ®~gca~ ~$~~s E~~c~ ~o$'mI •$~~ I ~~~Ei 76 ~ ~; rd. ~~ ~~~~ ~~ ~- ~.~ ~ ~~~~ ~+ ~ ~5 ~ ~~ A ~. ^~ ~1 l'~ s .~, a ~' ~~ ~ d ~g . 8 ~ ~ I ~" ~. O. ~'C r~ z t~ '~' z ca a 4 N D 0 ap a Attachment D Vaar ~ nnaTf'P.f Activity Convene Adviso Committee 2007 Q3 2007 Q4 2008 Q1 2008 Q2 2008 Q3 2008 Q4 2009 Q1 200 Q2 Conduct feasibili stud Formal commitments by county boards Pursue ant fundin Dedicate Orange County property to rocessin center use Contract lead ro'ect develo er Bid & contract architect service Bid & contract construction services Develo non rofit mana ement enti Renovations Equipment Purchase & Installation Begin transition to Non-profit Entity Recruit Executive Director Outreach to establish network of agricultural, food, & economic development professionals Prepare for opening in January 2010 A1~FP Grant Reports ~~ Page 11 of 12 C~ A-'L#,SC~'in1@t'i~ E G1~dNERSH111~1NI~11~ITEI~iAh1CE ~tai~~E1~lENT Grantee shalt retain ownership cf the materials and equipment Ru~~ with grant funds for a period of not less than flVe years from date of purchase and strati maintain purchase-~i equipment in gad wa+'~ing 'fir during that time. Any changes fo thi5.agreernent shall require approval hY the North Caaroluta department of Agricutture and Consumer services. P2rge 12 of 12 ORANGE COUNTY BOARD OF COMMISSIONERS ~~~_ RESOLUTION ~ ~ '~) Support for a Piedmont Regional Shared Use, Value Added, ~--~ Food and Agricultural Processing Center WHEREAS, the recent tobacco buyout program has left many farmers seeking economically profitable alternative enterprises to allow them to remain farming; and, WHEREAS, the proximity of Alamance, Chatham, Durham,.and Orange counties to markets for value added products is significant given existence of local farmer's markets, grocers, restaurateurs, and food service managers that buy local farm products; and, WHEREAS, added value products provide a means to retain economically viable, thriving farms in Alamance, Chatham, Durham, and Orange counties, benefiting our rural character and agricultural heritage, and contributing to the health and high quality of life; and, WHEREAS, shared use value added processing centers require careful planning and strong collaborations to be successful; and, WHEREAS, a feasibility study funded by Alamance, Chatham, Durham, and Orange . counties, as well as Weaver Street Market and Whole Foods, was completed in . November 2007, and, WHEREAS, the survey respondents included 36 percent fruit and vegetable growers, 27 percent livestock praducers, and 28 percent specialty food producers, caterers, or restaurateurs, who together currently produce 74 food items, and in the future desire to produce 112 distinct products, and, WHEREAS, the feasibility study indicates client use at the facility can reach 142 production hours per week in one year and would generate more than $150,000 in fees in years Z and 3 of operation, and gross income generated by clients using the facility would be between $800,000 and $1.2 million per year; and WHEREAS, the feasibility report detailed 13 action items that will ensure that the center can open in 2009; NOW, THEREFORE BE IT RESOLVED that the Orange County Board of Commissioners: 1) Agree to participate in a regional, multi-county value-added shared-use food and agricultural processing center; 2) Formally allocate the former Orange Enterprise Building on Valley Forge Road in Hillsborough for development of a regional value-added shared-use food and agricultural processing center; 3} Recommend that the governing board of the Center become a 501(c)3; and 4) Agree that the shared monetary compensation for the Valley Forge Road property (item 2 above) will be determined later and request that equitable fiscal support among partners be pursued that recognizes the allocation of the Orange Enterprise Building owned by Orange County. This the 19th day of February 2008. . Ja o , Ch it Orange Cou rd of mmissioners l6 APPRQVED 4/•15/200.8 MINUTES ORANGE GOtJNTY BOARD'OF COMMISSIONERS. REGULAR' MEETING' February 19, 2008 7;30 p.m. The Qrange County Board of Commissioners met in regular session on Tuesday, February 19; 2ijp8 at: 7:30 p.m. in the F, Gordon Battle Courtroom in Hillsborough, North Carolina. COUNTY COMMISSIONERS PRESENT: Chair Barry Jacobs and Commissioners Moses Carey; Jr.; Valerie P. Foushee, Alice M, Gordon,, aril Mike Nelson COUNTY COMMISSIONERS ABSENT; COUNTY ATTORNEYS. PRESENT: Geoffrey Gledhill COUNTY STAFF RRESENT: Assistant County Managers 1Nillie Best and Gwen Harvey; 'COUNTY STAFF ABSENT: County Manager Laura Blackmon ~, Additions or Changes to the Agenda Chair Jacobs said that Commissioner Nelson was ill, but was going to try and make the meeting. The yellow sheet was an additional resolution; item 3-d, Resolution for a Regional Ualue- Added Shared .Use Food and Agricultural Processing Center. Chair Jacobs said that this should probably go onthe consent agenda as.item 4-p. The Board agreed to leave if as a: resolution, item 3-d. The pinksheet relates to the. item on :the farmers' market. The light green sheets were for revised applicants for the Hillsborough Board of Adjustment. There were several handouts regarding the citizen survey on tax proposals for locale revenue options. Chair Jacobs reviewed the water supply levels: Chair Jacobs suggested pulling item.10-d, Appointments for Durham Technical Community College, and adding it to the March 6th agenda. Commissioner Gordon asked to also defer the. Qrange County Planning Board appointments because the County is still advertising. for this. Chair Jacobs said thafthere are plenty of applications for at-large. The Cheeks Township position could be deferred. Discussion ensued and the Board agreed to. leave this item on the agenda until that point in the agenda. ` Geof Gledhill read a prepared statement with respect to-a settlement and claim; "At one of your late 2007 meetings, during a closed session, the Board of County Commissioners- approved the settlement of a .claim relating to the installation of a well on property owned by Mr. Michael Todd Goo.per. The .claim resulted from the formal abandonment of a well serving Mr. Cooper's house. after the house was destroyed by fire: As part of the rebuilding of Mr. Cooper's house a mistake was made and Mr. Cooper was advised that his new home was eligible to be connected to the new public. water system built to serve the Buckhorn EDD; thus. he abandoned his old well. Orange County contributed $2,566, :approximately half of the cost, of a new: well ~`~ . . ~:. WHEREAS, the; firstsession of tFie unofficial association was. held at the Aflant~c;.Hote "m" Morehead City an August 19, -19.08, where..C. E: Foy was elected .as president;; and., VI[HEREAS, the North;Carolina General Assembly passed an act an March 8, 1.909.estab6sh.ng trie association ;on behalf ;of";counties;; NC11N THEREFORE, be it: resolved that; the Orange County. Board! of Coiimmissioners,iecognize C{', ~ and celebrate 100 Years of Community Unity' 'in tnbute to he centennial, of e; North .Carolina Association of :County Commissioners.. Thrs the:19"' day of Febt`uary" :.200.8:: VtQTE: [.INANIMUUS Char:Jacap said that: he neglected to:mention that:"County' Manager L"aura Blackmon was ill this:euening: Processing teenier. g .. ~. , ._. ,., . Th'e Board considered a :resolution 1)<Agreeirig to participate m a re tonal, multi coup value=added shared=use food and agnctltural processing center, 2) Formally allocating the former Orange Ente,rpnse Building on Valley Forge Road in Hillsborough for development of a ~egiarial value=added shared use food-arid agricultural processing center,; 3) Recommending that the governing, board of: the Center become a 501(c)3, and 4) Requesting that Equitable: .. fiscalsuppbrt:among partners be pursued that: recognizes:`tte allocation ;of the; Orange., ... Enterprise building_ awned 6y Orange County. - Chaar Jacobs: said that this is an'outgrowl:h of the work session last week and is meant to reflect'ahe discussion by the Board The resolution is, as minimalist as possible; understanding; thatthere will be more discussion later Commissioner Gordon said that,'she wants to discuss more specifics about thee. allocation of the :t'7range: Enterprise: building, She said :that this is 4-6 acres with a bwlding that is between $400 500,000 appraised rralue If the County~sold it,:t could probably get about $'l million . She: would like to' add some specific language that the County agrees that the "shared monetary compensation. of the Valley Forge property will be determined later" She said:'that it is not exactly straigf~iiforward how much ~ is worth ~ Right now it is stated that-Urange County will lease this bulding'for $1 'a, year.: She wants to indicate to: the other jurisdictions that the shared.: monetary: compensation will be:;determined later :Orange County needs to receive monetary compensation A tiotiori was made by Commissioner~Gordon, seconded 6 Commissioner Nelson to Y approve a resolution 1) Agreemg;ao participate in a regwnal;, mult~=county value-added shared- use food algid agricultural processing center, 2) Formally allocating the former Orange: Enterprise Building ora Valley," Forge`Road-in. Hillsborough for c3evelopment:of=a regional:"value-added shared use; food :and agncultural processing center,: 3) Recommending that the: governing board; .:~ of tFe Center l?ecome;a 501(c)3 and ~#4 amended, by Corii'missioner Gordon;; 4~ Agreerng Fiat tiie shared'rnonetary compensation fog the Valley Forge property will be determmed:tafergnd request that :equitable fiscal support among partners be pursued: hat recognizes the,allocatiori of theOrange Enterprise building owned by Orange County:: a~ UfJTE UNANIMOl1S ..:. .,..., Char ;Jacobs said that the: Board has :beard from. two;:courities and:tl~e hope is to get't; is item into:'the: legislative:. package: 4. Consent Agenda A motion was made',byCommissioner,Foushee, seconded. by CommissronerCarey to approve; those items ;on the consent agenda as stated. Jielow: a.:; M= The Baa~d approvedahe minutes:-from December 11:, :2007;. January 15 (5:30 p.~m. and p~m ):and 16,'2008 :as submitted: by the Clerk to,the Board: 1. 7:30 Committee to a second full term enamg!:~anuary emu,; z~, c. Ja~t.lnspectiorr Renart The Board receNed'the ~ail,'nspection report"for.January 28:;':20.08' from the North Carolina Department ofi Health and Human, Seru~ces; d., Motor Vehicle Property Taxi ReteaselRefunds The=Board.. adopted a refund resolution,. which is incorporated by: reference, related to 52 .. requests for' motor vehicle property tax releases. or refunds in accordance; with: North. Carolina.. General Statutes: e. NC-State Firemen's and Rescue SQUad Annual',Certif cation Roster The.Board' approved`the °certificat~on; requirements for the fire marshal and staffto participate;'in the North Carolina 'State: Firemen's: Association for the ,year 200T'and authorized the Chair to sign the certification; documents::. f Encroachment Agreement for County Campus Netutiark Fiber Connection. The Board. approved; a Two Party;Right-of Way Encroachment Agreement among ~ran9e` County; the North Carolina Department,of Transportation :(NCDOT) and: the Town :af. Hillsborough that allows the construction of.a bored pathway for County network com:municationsfiber to connect the GatewayCourty Campus;faclitiesandguthorized the Chair to sign!. ,g_ CostAllocation plan Contract The Board approved a contract:fqr the preparation of the C:ounty's:~:200Z Cost allocation an. with Tim Mckinrne & Associates,.lnc: and authorized the Cha~rto sign. h Contact with Rg Engineeri'nq Inc far Structu'~al Ena~neering Serv~ces.to Stabilize: and Ret~air Barns at Fsuture:"Park Sites ,. This'Item was removed and. placed at the end of the;cansent agenda forseparate consideration: i Bid Award for Two (2140 Cubic°Yard Frant Loader Refuse Trucks The Board awarded a bide for the purchase of~two (2) 40 Cubic Yard High, Compaction Body -. .. Front Loade,"r Refuse Trucks from Piedmont:Peterbi(t`of Greensboro, North Carolina a# a coast of: $40.1,;592 and authorized the Purchasing Director to-:execute the necessary paperwork L Contract Award, Construction Manacaer'at Risk Services, Animal. Services Fac~h l"he Board approved: a contract with:Clancy:& Theysas Orange Couni:y's Construction Manager at Risk (CMAR) for the co:nstructian of the site grading package for the: Orange County Animal; Services FacUtyat`the Guaranteed. Maximum' Price: of $1:,3.08,733;, sub1ect to final review and approval byfhe County Attorney and auttior'~zed the Chair'"to sign. k. Establishrnent'of arr Interlbcal Agreement Committee for fhe.HillsborouahArea= ....... .; ...:.~ ... ~:: .. i ~i APPR01(ED 4/15/2QQ.8 Orange Counfy Board of County Commissioners WORK SESSION Tuesday, February 12,; 2Q08 7:30 pm Lirik Government Services Center, Hillsborough, NC The Orange;County Board of Commissioners met fora 1Nbrk Session on Tuesday, February 12'; 2008 at 7:30 p:m. at the Link G9vernment Services Center in Hillsborough, N.C.. COUNTY COMMISSIONERS PRESENT: Chair Barry Jacobs and Commissioners Moses Carey; Jr., Valerie Foushee, Alice M. Gordon, and Mike Nelson COUNTY :COMMISSIONERS ABSENT: COUNTY ATTORNEY"PRESENT:. Geof Gledhill COUNTY STAFF, PRESENT County Manager Laura. Blackmon, Assistant County Managers Vllillie Best and Gwe.n'Harvey, and Deputy Clerkto the Board Ravid Hunt (All other.. staff members will. be identified appropriately below) NOTE: ALL DOCUMENTS REFERRED TO" IN THESE MINUTES ARE IN THE PERMANENT AGENDA FILE'IN THE CLERK'S OFFICE. The meeting was called to .order at 7:32 pm. ~. Orange County Housing Authority Bylaws'<Revision Jabrina Robinson, Vice-Chair of the Affortlable Housing Advisory Board, highlighted th,e significant changes to the bylaws. She said that when the AHAB met with the Board of County, Commissioners in August, the Board asked the AHAB to go: back and review the bylaws of the Orange County Housing Authority to bring them up to date with some. of the goals discussed: for' the Housing Authority. Most of the changes are minor. The first section is in Article II. It was decided that the Board of Commissioners ofthe Authority shall consist of seven members. Commissioner Gordon' made reference to Article. I, Section 3, and suggested that it should say, '`at such other place rn Orange County..." Geof Gledhill said that it could meet outside of ©range County and there. is no law preventing it from .doing so. Commissioner Gordon said that the preference would be to meet in Orange County. .Commissioner Gordon asked if the members had to be .called commissioners.. Jabrina Robinson said that ny statute they are def ned as board of commissioners. Chair Jacobs suggested saying the Housing Authority Board of Commissioners to. differentiate from other commissioners. Chan Jacobs asked about the purpose of no ,eommissionerbcing a.County official, Jabrina Robinson said that this is designated by statute. Jabrina Robinson made reference to revisions to Article III, Section 5, and that the Executive Director shall be appointed by the. C)range:County Manager; and compensation will also.. be determined by the County Manager: Commissioner Gordon asked where the purpose of the Housing Authority was outlined and Geof Gledhill said that it is'in the charter: Commissioner Gordon suggested that this should be outlined in the general statute. She also suggested :changing; "chairmen" to "chair" throughout the. document. ~v~ Chair Jacobs asked if this group. really needs to meet monthly. Jabrina. Robinson aid that the opportunity is therefor into meet monthly, biat it snot required or envisioned on a regular basis. Chair Jacobs made reference to_Articfe IV, Section 2, and suggested that it say, "Meetings. shall be held with notice....." This leaves it flexible without there being predetermined monthly meetings. Laura Blackmon pointed out Article. II, Section 4, and said that the #erms are 3 years, instead of not less than 2 or more than 5. Chair Jacobs said that this should be consistent with all of the other boards. "Commissioner Gordon asked to hear from Geof Gledhill on the purpose of the Housing Authority Geof Gledhill read the purpose. Housing and Community Development Director Tara Fikes arrived at 7:49 pm (she was stuck in Wh'ttted elevator,. power outage). Ghair Jacobs. asked if there could.. be :a position' for someone from Human Rights 'and Relation"s because: it investigates housing. Jabrina Robinson said that there has not been discussionabout his department directly, only in recruiting. different. rnembers~.. Chair Jacobs suggested that the authority think about other groups within County government. Geof. Gledhill made reference to an earlier question about appointing County officials and said that it is not defined and could include elected officials and staff. He said that it would be a good idea to track the language in'the stafute. Chair:Jacobs suggested Leaving a couple of seats on the authority for members of other County boards and commissions. 2. Regional Value Added Shared Use Food & Agricultural Processing Center ~- Will'ie B.estmade reference to the. back page of the abstract under Financial Impact and said that the consultant from Smithson Mills, said that instead of "in profit per year," it should. say, "in revenue to the clients:' to the Report on the Feasibility of Establishing a Regional Shared Use f=ood & Agricultural Processing Facility Serving Alamance, Chatham, Durham, 'and Orange Counties by Smithson Mills. Noah. Ranells said that the objective of this meeting is to discuss some more and ask questions of staff, Some of the first items to consider ate consideration of the ~,ecommended site, which is the Orange Enterprises building:on Valley Forge Road; a resolution indicating continued interest,to participate as amulti-jurisdictional county effort; and trying to pursue initial grant funding. I-le reminded the Board that it authorized staff to submit a. grant'proposaf to ttie. North Carolina Agricultural Development Farm and. Presentation Trust Fund in December> There has been no word on this to date. Commissioner Nelson asked about the total .of $50,0.00 and where tfe rest of the money was coming from. Noah:Ranellssaidthat as.grant opportunities arise; there are.cycles far proposals and funding sources. The staff is considering opportunities to get this almost fully: funded by grant funds. p ,p y Commission, er Nelson asked about financial artici .ation b the other counties. Noah f;anells said that the degree of financial participation is up for discussion. The degree of participation as discussed in the stakeholder group has been seed money,, $3,000-5;000 to try and make sure there is a strong'start to a Rroject Manager. Chair Jacobs said that he talked to 12epresentative Faison today and he introduced a. bill; as did Senator Kinnaird, and talking about making this one.. effort and bringing in Caswell and Person'Counties. The Vice-Chair of the Alamance County Board of Commissioners has already talked to Representative. Coie and some other Representatives are very supportive. He thinks that`there are some promising avenues for funding. ~3 Commissioner Nelson asked about the annual fees after the startup. is complete and if $150,000: would cover it. The representative :from Smithson Mills said that in Asheville the operating expenses .there are. app. roximately $:130,000 a year; and $70,000 of that is the Facility Rirector (salary of $50,000 with benefits). Th.e community college receives rent of about $35,000 a :year. The balance is dedicated to equipment repairs, minor equipment acquisition, cleaning fees; etc. He said that., based on the demand measured in this region, which is substantially liigherthan Asheville., he believes that the project can approach or meet a break- evenstatus within a few years. Commissioner Nelson asked about the Valley Forge site and said that,.. if grange County were chipping hat in, whatwould'the othercounties be contributing. Noah Ranells said that those- discuss9ns have not occurred yet: Chair Jacobs said that this :could be brought up once everyone is brought to -the table. He is sure that there. is a willingness to contribute: Commissioner Nelson made reference to the management entity and asked who would: set this up a'n'd if it would spin off into its own authority. Noah Ranells said that the options for development of the management authorifiy laywith the commissions. of each county as well as the stakeholder group.. These. two entities. would come together and form this administrative becly. The repre. 5entative from Smithson Mills strongly recommended establishing a 501 (c) 3 with appointees from various commissions because it is more flexible. and works: better. Commissioner Nelson asked abotat the lease arrangement and said that his main concern is that he does 'not believe in giving space :away: However,. this is an exciting project and he would. like to find a way to do this. He would prefer tliat.this entity pay rental, even if it means the County is contributing financially owards the operating expenses for thefirst few years. He does not think hat it is a wise idea from a business standpoint to set up a business and not have them paying all of the op.eratio'n:costs that a real. business would pay. He said thatit is hard to justify giving properly away. Char`r Jacobs. suggested f .tying to scale it up to the. place thafi the County wants: By process of elimination, it is going to be way more convenient to CGrange County producers: So Orange; County will have the biggest advantage for the economic-development opportunity: With that understanding, he thinks that something equitable could be built in. Noah Ranells made reference to a previous question and said that there is about $300,000 in e'quipm'ent and $400,000 in renovation costs for the. initial phase.. He said that this is a business incubator and would spawn economic develapment. Laura Blackmon said fihat there will be concerns from other counties about the County getting the building renovated and the value that would be added to that. The representative from Smithson Mills said that there is a way to structure it so that the value of-the building can beta match.. The agreement in Asheville is $1 a year, with a $35,000 a year utilities and maintenance fee, Commissioner Gordon said that this is an exciting opportunity, She asked if there was a hope to do marethan break even. Noah Ranells said that this is an incubator and it will graduate people :out. The long-term financial planning is a little uncertain. Commissioner Gordon said. that she thinks that the County'should be able to get some. money back. She.said that the value of the building, would be about $50.0,000. She does nat think that the. County is affluent enough to be able to afford to give this property.away. In order to get he costs down, she would like to assess whaYthe property is really worth and then ask the other counties to subsidize ittoa. She thinks that every ather county involved in this has a lower tax rate. She. also has a concern aboutgiving space away. She wants to talk to the other counties, factor it in, and make it fair. Chair Jacobs said that he has heard that the Board has no objections with proceeding, no objections with :allocating. the building, no objections to seeing the board become a 501 (c) 3, ~~ and hat there should be some equitable financial relationship whereby Orange County gets some. money back. These four items could be put on an agenda. and the other counties could be informed that Orange County is committed to the project and, that these four items wQUld be. put on an agenda. He directed the. Manager to put this in the form of an agenda item in a' subsequent meeting. Noah Ranells said that staff would .continue to seekout funding opportunities. 3: Local Revenue Clptions Referendum Rod Visser said that the Count~r Commissioners' timeline:for making a decision on this is Tuesday night's meeting,. February 19t . He said that he just came from the sixth meeting of the. Local Revenue Options Committee, and it is in the process of wrapping up the, initial report to the'County Commissioners. This report will. include a list of pros. and cons, observations, comments; etc. There will. be no recommendation because the County Commissioners asked that there not be one. Laura Blackmon said thaf fhe purpose of having this item on the agenda was to see if there were other questions. The meeting on the 19th`will be the pros and cons: and comments; th.e results of the poll, and the decision. :Chair Jacobs said that he did' submit a question to the:County Attorney, which he copied all of the Commissioners on. Geof:Gledhill said. that, he put mote in, the letter than was: asked: He said that ore of the-things that'he has learned is what happens tb the. other half of the two percent excise tax that is already on the books. This goes to the State in a week. Thee question from Chair Jacobs was what exemptions there coukl.te under the law for a land transfer tax,` if the voters approved it. The answer is That ransactions involving property subject to affordable housing or homestead. exemptions would not be exempt from the-'tax: Chair Jacobs said that the County could assist people in this situation by a reimbursement through the general fund and Geof Gledhill said yes. Right now, the County does not reimburse anyone for the excise tax: There is also nc provision in the law to allow local exemption of this tax,. Chair Jacobs said that at fihe public hearing the Board heard about counties near thee. coast that have had tremendous success .using, the real estate transfer tax. He would like to know how transfers in Orange: County have tracked over the last few years. He has heard thaf they have not changed significantly; even in the down housing market. He would like this information. He would also like. to know how many of the affordable units are transferred in an average year Budget Director Donna Coffey aid that she had this information an affordable housing and would provide it late. Rod Visser said that staff would try to get this information by Thursday when the agenda packets are sent out. Commissioner Goctlon said that she wants.to-make sure that there is not'an additional burden on affordable housing. Chair Jacobs said that the'Co'unty Commissioners are interested, in helping lower income people, especially seniors, deal with property taxes. As changes are made in taxation, he wants to know what is being done to the environment of people who are living in,affordable housing. Commissioner Nelson asked about the education process. Rod Visser said that the committee has not talked too much about that yet because it has .been approached iri two phases. The first phase is the committee educating itself about the mechanics of the two revenue options. He said that he would see it being; similar to the .education of bond referenda.. Commissioner Nelson said that he has same concerns because obis is very`difierent from bond referenda. He said that there are- a. lot of politics. related to this and a large amount of money that realtors and homebuilders have put into this. He said that the County cannot run this like if has run other bond referenda. He has concerns about not having enough time'to do it Piedmont Value-Added Shared-Use Food & Agricultural Processing Center ~~ July 17, 2008 Agenda 1. Introductions 2. County Resolutions a. Alamance County b. Chatham County c. Durham County d. Orange County i. "...Agree that the shared monetary compensation for the Valley Forge Road property (item 2 above) will 6e determined later and request that equitable fiscal support among partners be pursued that recognizes the allocation of the Orange Enterprise Building owned by Orange County" ii. Assessed Value 1. Land (4.66 acres) $176,847 2. Building (10,400 sq. ft.) $250,973 3. Funding a. Capital Funding Needs i. Project Manager recommended at 10% of development cost ii. Renovation $400,000 iii. Essential Equipment, Installed $299,000 iv. Recommended Equipment„ Installed $357,000 b. Operations & Maintenance i. Salaries, utilities, & maintenance $122,000 per year (est.) ii. Equipment Purchase $ 50,000 per year c. Funding Options i. NC Agricultural Development and Farmland Protection Trust Fund; $132,000 awarded, to be complemented by additional grant funds ii. US Transportation HUD Appropriations; $1,200,000 requested; Floor vote anticipated February 2009 iii. Golden Leaf; RFP deadline Aug 1, 2008; anticipated request $400,000 iv. Tobacco Trust Fund; deadline Aug 1, 2008; anticipated request $400,000 4. Governance a. Transition to Non-Profit Majority Producer Entity b. Update on Caswell & Person County Participation