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Craig Benedict referred to a handout— School APFO Memorandum of Understanding Elements. He explained the seven elements on the handout, which is incorporated in these minutes by reference. The base elements are the levels of service (elementary — 105%, middle — 107%, and high — 110%); membership date (November 15`h); and building capacity (not including portables). The variables include the capital improvements program (as approved by BOCC in June each year); student growth rate (average of five models); student projections (approved methods and average of five model projections); and student generation rate (Tischler and Associates, 2001). It was always intended that there would be two separate agreements, one for each school district. The aspects within both agreements are equitable. He said that the consensus on the 5 models is that it is best to average them all because there are some conservative and some aggressive models. Chair Jacobs asked whose consensus this was and Craig Benedict said the Schools and Land Use Council and the School Facilities Task Force. Commissioner Gordon said that the School Facilities Task Force spent a lot of time on projections and levels of service. One of the things is that the two school districts have a different number of students and a different growth rate. This can affect the percentage rates of the level of service. The task force got through all of the other issues except the level of service. Craig Benedict said that what the discussion has been reduced to over the last few months is now that they have new membership projections, if the ordinance is implemented in February 2003, would we be over the levels of service. The answer was yes for Orange County middle schools. In the Chapel Hill-Carrboro district, schools will come on line before any de facto moratoriums will occur. There are four ways to resolve the levels of service issue — start off with a higher level of service and then lower it when a new school comes on line (not preferred), change the capacity of the schools, adjust the capital improvement program, or delay implementation of the ordinance until the levels of service are met. Commissioner Gordon said that the CIP change of having the third high school for Chapel Hill-Carrboro has not been approved yet. There would be a de facto moratorium if the third high school were not approved. Craig Benedict said that the drawback for delaying implementation is that if one area implements delay then development would go to the place of least resistance. Commissioner Halkiotis said that this has come a long way since the attorneys met about this and this document has made significant progress and it is time to move on with it. John Link said that an important point was made that these levels of service are district-wide and not for each school. His concern is that all understand this and reinforce it. He said that people think the whole school system is overcrowded when only two or three schools are overcrowded. He said that we should make it clear that we are pursuing a system-wide process. He made reference to attachment 1-h, which shows the capacity of each school. Craig Benedict said that attachment 1-h is the certified capacity numbers. He then described attachment 1-g. He said that the actual measure of how many seats are available before you go over the level of service will be from 105% for elementary schools, 107% for middle schools, and 110% for high schools. Commissioner Gordon said the Schools and Land Use Council had discussed if we should convert some of the elementary seats to middle school seats in the Orange County Schools. Orange County schools were worried about the revenue stream and