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b. Agreement with Robert Segal, CPA, for School Efficiency Study <br />The Board considered approving an agreement with the firm of Robert Segal, CPA, to <br />carry out an examination of opportunities for achieving budgetary efficiencies in the operations <br />of Orange County and the two school systems, subject to final review by staff and the County <br />Attorney, and authorize the Manager to sign. <br />Rod Visser said that this is a follow-up to the discussion at the September 27, 2004 <br />joint work session between the County Commissioners and the two school boards where the <br />County Commissioners had indicated that they were interested in pursuing the Robert Segal, <br />CPA firm to come in and work on behalf of all three entities to find additional revenue, to <br />reduce expenses, or to find ways for the three entities to achieve some economies of scale in <br />purchasing, etc. This agreement would be specifically between the Board of County <br />Commissioners and the firm that would enable Robert Segal to look at the County's financial <br />records and see if there are any opportunities for savings. The firm will also enter into similar <br />agreements with the two school boards. <br />Chair Jacobs asked if CHCCS passed a resolution authorizing Mr. Segal to work with <br />them on these matters. Robert Segal said that at their last board meeting, they authorized Dr. <br />Pedersen to initiate a final agreement. It is his understanding that the superintendent will <br />present the final agreement Thursday night, the 21St <br />Commissioner Brown read from the letter of agreement, "Segal agrees to maintain strict <br />confidence of all information received...." She said that this does not apply and she would like <br />to see it removed because it is all public information. <br />Geof Gledhill said that there are things in Orange County records that are not public <br />records (i.e., income and expense data for tax determinations), and he suggested that it be <br />made subject to the public records laws of North Carolina. The Board agreed. <br />Geof Gledhill read some language that he would add to the letter of agreement, as <br />follows: "Segal agrees to maintain, as provided by the North Carolina Open Records Law, in <br />strict confidence, all information received." <br />In answer to a question by Commissioner Gordon, Rod Visser said that the Board has <br />discussed in the past that as the firm is looking into this, issues might present themselves that <br />represent possible opportunities for efficiencies. The firm works on a contingency fee basis, <br />where they retain a certain percentage of savings. If there were an efficiency opportunity that <br />does not lend itself to a percentage of savings, the County would pay a retainer or a certain <br />amount (such as an hourly basis) to Mr. Segal for the work. <br />Chair Jacobs said that the Board also wants Mr. Segal to analyze, without necessarily <br />doing it for the purpose of achieving efficiencies. He suggested the language, "in obtaining <br />operational efficiencies and comparisons." For example, if one school system has one <br />computer for every six students and the other one has one computer for every one student, <br />this is a comparison that the County wants to make because of the issue of equalizing funding. <br />This has nothing to do with whether Mr. Segal has identified efficiency. <br />John Link said that there would be a cover letter to both school systems amending this <br />language for their adoption as well. <br />A motion was made by Commissioner Halkiotis, seconded by Commissioner Brown to <br />approve an agreement with the firm of Robert Segal, CPA, to carry out an examination of <br />opportunities for achieving budgetary efficiencies in the operations of Orange County and the <br />two school systems, subject to final review by staff and the County Attorney, and authorize the <br />Manager to sign. <br />VOTE: UNANIMOUS <br />c. Appointments <br />