Orange County NC Website
Browse       Search
7 <br /> be made as a reimbursement of expenses incurred by Orange County in addition to their share of <br /> shortfalls for the then current fiscal year in which a notice of revenue shortfall is provided." This <br /> is change requested by Durham County that allows them to work their budgets appropriately. <br /> Chatham County made a change that specifies that the fiscal year payments for the <br /> partner counties shall not exceed $30,000 per fiscal year. <br /> Alamance County made a change that "any shortfall payment made shall be reimbursed <br /> to the Parties from profits made in subsequent years." This also relates to the change made by <br /> Orange County in number 17, "during the term of this Agreement any profits generated may be <br /> used for the repayment of any shortfall payments made by the Parties during the term of this <br /> Agreement." <br /> In section 15, initially a couple of the other counties were interested in owning some of the <br /> personal property that is purchased by the grant funds. John Roberts said that he objected to <br /> this because Orange County is administering these grant funds and Orange County got the <br /> grants and is responsible for the property that is purchased with the grant money. This change <br /> says that any property purchased for this will remain Orange County's property except in <br /> instances where the respective parties have purchased something. <br /> Frank Clifton said that there was an assumption in the beginning that they could do a <br /> 501c-3 but that did not work out yet, so there is $1 million in grant funding that needs to be spent. <br /> The key will be identifying the people that represent the initial body that takes on the 501c-3. <br /> Once this is established, then the County can be compensated for its building. <br /> Commissioner Gordon said that she is in favor of this processing center, but her <br /> questions have to do with the financial arrangements. She is concerned about the deletion of the <br /> third "Whereas" paragraph that "Orange County agreed to dedicate the facility at 500 Valley <br /> Forge Road to the Center, with compensation to be mutually agreed upon by the Parties prior to <br /> its opening for operation." She said previously when the Commissioners voted on this, the <br /> resolution that was passed included a statement that there would be compensation for the <br /> building. According to her reading of the current agreement, it appears that Orange County is <br /> responsible for everything except in the case where there is a shortfall for the operating <br /> expenses, and then the partner counties will contribute 60%. As far as she can see, Orange <br /> County is responsible for maintenance, insurance, and everything in the cost category except <br /> when someone is hired. However, based on the information in the agenda packet, it is not clear <br /> what is in the operating budget. She said that she understands that they want to get this started, <br /> but when you look at all of the language, Orange County has a lot of responsibility compared with <br /> the partners, including when there is a shortfall. She would like to see the three year budget. <br /> She said that this should be formed as an enterprise fund and there should be some provision <br /> that Orange County will start to get lease payments because Orange County owns the building. <br /> Noah Rannells said that they have been working hard to come up with a budget since <br /> there are few models to follow. The big concerns on the budget are utility costs and once the <br /> center is up and running, they can get these numbers to share with the boards. He can itemize <br /> the rest of the budget, but in terms of the utility cost, he does not have a strong base to share. <br /> Commissioner Gordon said that it is a five-year commitment and the first year is covered, <br /> but she wants to know about the next 4 years. Frank Clifton said that he would bring whatever <br /> the staff has, but it will all be guesstimates. The reality is that this facility was dreamed as an <br /> opportunity for the agricultural community to process foods for retail markets. The budget is <br /> based on a limited amount of staffing (one person) to manage the facility. The people using the <br /> facility will be paying per hour to use the facility. The amount of usage and the utilities will <br /> depend on what types of processors come in to use the facility. The grant funding available <br />