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HomeMy WebLinkAboutMinutes - 20081113 APPROVED 12/1/2008 Orange County Board of County Commissioners BUDGET WORK SESSION Thursday, November 13, 2008 7:30 pm The Orange County Board of Commissioners met for a Work Session on Thursday, November 13, 2008 at 7:30 p.m. at the Southern Human Services Center in Chapel Hill, 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: COUNTY STAFF PRESENT: County Manager Laura Blackmon, Assistant County Managers Willie Best and Gwen Harvey, and Deputy Clerk to the Board David 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 1. 2009-19 County Capital Investment Plan Chair Jacobs called the meeting to order at 7:32 pm. Laura Blackmon said that the staff presentation was made at the last Board meeting. She asked for direction from the Board on the County CIP. Commissioner Gordon made reference to the increase of the budget from last year to this year and noted that some of the project cost figures have increased. She asked the staff to look at those and see if there could be any savings. Chair Jacobs made reference to ADA improvements and said that if he were disabled, he would be offended that Orange County is taking its time to make buildings accessible. He asked about Appendix C and how the money is allocated. Public Works Director Wilbert McAdoo said that the first point was to look at building access and the number of people that come to the building. Chair Jacobs asked for a document that shows what is being done and how much of it can be done in a short period of time. He suggested inviting someone who is in a wheelchair to the building to see if they can get in. Wilbert McAdoo said that this was done and this is how the priority list was developed. Commissioner Gordon asked clarifying questions about why some budget items increased from last year so significantly. These questions were answered by Purchasing and Central Services Director Pam Jones. Commissioner Gordon said that she would like to find savings in these projects so some of the money could be re-allocated. Chair Jacobs said that almost all of the park spending is pushed out to the end of the 10- year period. He suggested putting all park projects on the same page and having a conversation about them in the near future. Parks need to be acknowledged as a higher priority. Commissioner Gordon said that there is $275,000 for stabilization of Blackwood Farm at New Hope, and at one other proposed park but the source of that money is the Twin Creeks Park bond. She does not want to make that kind of allocation because of the promise to the voters to use the bond money for Twin Creeks Park. There is no Twin Creeks Park. She said that the $275,000 should come from someplace else and the bond money should be left in the Twin Creeks bond. Laura Blackmon said that staff was looking at not having enough money to develop even the first phase of Twin Creeks Park. The suggestion was that the funds be used to stabilize the two facilities at Blackwood Farm. Environment and Resource Conservation Director Dave Stancil said that the Board, before the summer break, authorized $150,000 of the Twin Creeks funds to go into the work that is ongoing at the barn and the house at Twin Creeks. Commissioner Gordon wants to have a conversation about what to do about Twin Creeks. Commissioner Gordon pointed out that the County Campus and Library project is over budget by $150,000. Laura Blackmon made reference to Capital Repairs and Replacements and said that this was being funded by the additional penny and it has not been funded in the past. Chair Jacobs continued reading through each item. Chair Jacobs asked about the Efland sewer extension and if there was going to be an update on this. Laura Blackmon said that staff was working on this. Commissioner Gordon made reference to Reserve for Future Land Purchases and said that she would like to see this labeled "Lands Legacy/Reserve for Future Land Purchases." Regarding Library Facility, Commissioner Nelson made reference to the project description and partnering with the town and said that a policy has not been set in this regard. He said that his preference is that he does not want to see "policy decisions" made in the CIP. He does not want to see a policy imbedded in the CIP. Commissioner Gordon said that originally she had thought that this line item was for Southwest Orange-Carrboro Library. After reading it, she thought it was a reserve just for libraries. She would like to take a serious look at the Southwest library. Commissioner Gordon asked that the Mountains to Sea Trail be listed as "Lands Legacy/Mountains to Sea Trail." Chair Jacobs made reference to the Northern Human Services Center Renovation and that there has been discussion about reworking how the building is being used. He asked to flag this. Chair Jacobs made reference to Northern Park and that during the budget process there was discussion about having a soft opening in October and a grand opening in the spring. Laura Blackmon said that there is still some construction and there is concern about access on an active construction site. Parks and Recreation Director Lori Taft said that there have been delays due to the weather and decisions about lighting on the field. She said that she is holding fast to the date of mid-April for the grand opening. Chair Jacobs would like to see a follow-up decision or an explanation. Regarding the Public Works campus, Commissioner Gordon said that she would like to have a discussion about the master plan. Wilbert McAdoo said that parking and storage was needed, as well as expansion of office space. Chair Jacobs asked staff to track what the County is paying for rent at Carr Mill Mall and how that might relate to paying debt service for a dental clinic. Regarding Twin Creeks, Commissioner Gordon would like to do something like a linear park there so that at least people can walk around there. She would also like to find out whether we have enough funding to build the soccer fields there. Chair Jacobs said that there is a suggestion for another use for the soccer money. Commissioner Foushee asked for staff to go back and look at the items flagged to determine how much can be pulled to amount to the $275,000 to go towards the stabilization projects and not use the bond funds for Twin Creeks. Chair Jacobs made reference to the Reserve for Future Land Purchases and if this tracked purchasing conservation easements. Dave Stancil said that this fund is open-ended and could be used for a lot of different types of land purchases. Donna Coffey said that staff could bring a follow-up list of flagged items at the December 1st meeting. 2. Review of Capital Project Funds Financial Services Director Gary Humphreys made reference to the abstract and the chart on the second page. The net shortfall amount was an estimate and is still about $780,000 for county projects. The total of both funds (school capital and County capital project funds) is a $5,921,689 shortfall. Chair Jacobs said that there was some alarm at this at the last meeting and he asked Gary Humphreys to explain this again. Laura Blackmon said that the staff had a superintendents' meeting yesterday and the same information was provided. Gary Humphreys and Laura Blackmon walked through what happened and why there was a difference between the budgeted and actual revenues during fiscal year 2003. Commissioner Nelson said that a citizen asked him exactly what happened and who did not do their job. Laura Blackmon said that there was a difference in a way some of the accountings were done. On the one hand, it happened when the software was changed. She does not think that there was any malfeasance. The money was there, but needed to be accounted for. Commissioner Nelson asked if the people who were responsible for this had left and Laura Blackmon said that she would say yes. Commissioner Nelson said that people are really upset about this and he needs to be able to answer the questions about who is responsible. He asked if there was still a plan to issue bonds to replace this $5 million. Gary Humphreys said that it is not to replace money but to complete the park bond projects. Laura Blackmon said that the bond monies have not been spent and the projects have not been completed. Chair Jacobs said that he was struck by the goal of the 15% fund balance, which he never recalls ordering. His sense is that somehow the fund balance was fluffed up so that it looked larger than it was. Laura Blackmon said that it was her understanding that 15% was a target, but she did not go back and research to see if the Board adopted that before she arrived. Commissioner Gordon and Commissioner Foushee spoke in support of some type of internal control so that this does not happen again. The issue of the revenue shortfall will come back to the Board as a separate package, along with policies and procedures, which will take some time to develop. 3. Properties Subject to Potential Divestiture The Board decided to address this another time, but Commissioner Nelson had some questions. Commissioner Nelson said that it would help him if there were recommendations about which properties the staff thinks are worthwhile to keep and divest. 4. Presentation of Schools' 2009-19 Capital Investment Plan - Chapel Hill-Carrboro City Schools CHAPEL HILL-CARRBORO CITY SCHOOLS 2009-19 CAPITAL INVESTMENT PLAN 2009-10 CIP Funding Allocation •ADA Requirements 50,000 •Abatement Projects 195,000 •Electrical Systems 100,000 •Fire/Safety Systems 175,000 •Indoor Air Quality 195,000 •Mechanical Systems 559,709 •Rental Space/Mobiles 120,000 •Roofing Projects 1,218,790 •Window Replacements 206,210 •Technology 1,210,000 •TOTAL 4,029,709 2009-19 CIP Funded Projects •Lincoln Center Infrastructure Replacements -Windows 2009-10 -Roof 2009 to 2011 -HVAC and Exterior Improvements 2010-11 -$1.6 million over two years •Lincoln Center improvements result in New Central Office and Conversion of Lincoln Center into an Educational Facility removed from the Unfunded Section 2009-19 CIP Funded Projects •Elementary School #11 -$32.9 million Budget Estimate -$974,000 approved for Professional Fees -Development plans are progressing on schedule to open school in 2011-12 2009-19 CIP Unfunded Deferred Maintenance and Improvement Projects •CIP Funding reduced by $6.4 million due to deteriorating financial projections and budgeted financing for Elementary School #11 Deferred Maintenance and Improvement Projects of$5.7 million include: -classroom casework replacements at CHHS, Phillips, and Seawell -lighting improvements at Culbreth, Phillips, Ephesus, FP Graham, and Seawell -Culbreth HVAC distribution upgrades and digital controls at McDougle campus, Glenwood and Culbreth -anticipated roof replacements at Glenwood and Phillips -CHHS stadium field's synthetic surface and gymnasium bleacher replacement -parking lot and driveway repairs at CHHS, Seawell, Estes Hills, and Phillips 2009-19 CIP Unfunded New Schools and Facilities • Projects Removed from Unfunded Section -Elementary School #11 -New Central Office -Conversion of Lincoln Center into an Educational Facility 2009-19 CIP Unfunded New Schools and Facilities •Carrboro High School (adjusted from spreadsheet) -Cultural Arts additions $8.6 million open 2010-11 -Classroom addition $17.5 million SAPFO required in 2015-16 -Athletic Facilities addition $4.6 million open 2015-16 2009-19 CIP Unfunded New Schools and Facilities •Middle School #5 -Budget Estimate $50.7 million -SAPFO required in 2013-14 •Elementary School #12 -Budget Estimate $44 million -SAPFO required in 2017-18 2009-19 CIP Unfunded Existing Schools and Facilities •Lincoln Center Addition -Budget Estimate $6.6 million -open in 2015-16 'Culbreth Middle School Science Labs -Budget Estimate $4 million -open in 2015-16 'McDougle Middle School Auditorium -Budget Estimate $6.6 million -open in 2015-16 - Orange County Schools Orange County Schools Capital Investment Plan 2009-2019 CIP Process •10-Year Projection •Assessments Based on Unconstrained Resources •Inputs ➢Board of Education Superintendent&Associate Superintendent Principals Maintenance Director Strategic Plan Ages of School Facilities SCHOOL YEAR OPENED CPES 1956 CES 1952 ECES 1952 GABES 1974 HES 1952 NHES 1991 PES 2000 ALSMS 1995 CWSMS 1968 G H MS 2006 CRHS 2002 OHS 1962 PAAS 2007 Ages of Ancillary Facilities FACILITY YEAR OPENED Board of Education 1971 Maintenance Office 1940 Transportation Office 1971 2008-2009 Funding Received CIP Recurring Capital $2,281,700 $991,630 Prioritization of Projects •Renovating Older Buildings •Health/Safety Issues (HVAC and air quality) •GREEN Retrofitting •Equity Issues (updating science, auditoriums) Commissioner Gordon spoke in support of upgrading science and math facilities at the middle school level, especially Stanford and Culbreth. Chair Jacobs asked about the unfunded projected elementary school and suggested purchasing some land. George McFarley said that OCS is looking in the western part of the County for some land. The goal is for the school to open in 2014. A motion was made by Commissioner Gordon, seconded by Commissioner Nelson to adjourn the meeting at 9:47 pm. Barry Jacobs, Chair Donna S. Baker, CMC Clerk to the Board