Agenda - 01-21-2010 - 7a - Laserfiche WebLink

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2 future budgetary responsibility "if' the non-profit does not breakeven, remained as issues to be resolved. Initial operational budget projections `estimate' the processing center to have expenses of $150,000 per year with one staff person. Revenues are projected to cover most of that expense, but should revenues not cover the full operational costs, the four counties would bear the operational subsidy based on the interlocal Cooperation agreement. The following is recommended: The creation of the 501(c)3 non-profit corporation be deferred until the project is constructed, and we have developed and tested a successful business plan. 2. At this time, the four counties, via a simple interlocal cooperation agreement, establish a `project partnership' based upon the following premises: A. Orange County remains the lead agency until the 501(c)3 is created. We will be responsible for legal, day-to-day oversight, accounting, and personnel support for those non-permanent employee(s) that manage the project until it becomes a non- profit corporation. B. Orange County will be the lead grant recipient and administrator of grant funds including accounting and reporting requirements. C. The four counties will share in the operational budget expense, minus any revenues, earned by the facility, on the basis of Orange County, 40%, and the other three partners, 20% each. We will develop a first year operational plan that all three counties agree to support financially and do a forecast for the following two years as a commitment of the parties. If successful after start-up, the project can be transitioned to a 501(c)3 non-profit organization. If not, each member county can decide to opt out or participate at a larger level "IF' the facility continues to operate as a local government function serving a desired need for services in support of each county's agricultural base. D. Orange County is providing the building at this time without compensation and will continue to do so until some decision is made regarding the creation of a 501(c)3 non- profit or the parties otherwise determine the future of the project. FINANCIAL IMPACT: Upon justification of revenue shortfall of the Piedmont Food & Agricultural Processing Center, 40% of the revenue shortfall will be charged to Orange County and 20% each to Alamance County, Chatham County, and Durham County, up to a maximum of $150,000 for the total budget of the Piedmont Food & Agricultural Processing Center. RECOMMENDATION(S): The Manager recommends the BOCC receive the update, provide any comments and questions to staff, and authorize staff to submit a draft Interlocal Cooperation Agreement to partner county Boards of County Commissioners for their review and approval.