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they do not want a de facto moratorium because the impact fee revenue would be cut off. Chapel Hill-Carrboro is very concerned that the levels of service not be changed. Craig Benedict made reference to a de facto moratorium and said that the intent with the SAPFO is that development would be deferred to another year until the schools can accommodate it. Craig Benedict then summarized the comments of the local governments in passing the ordinance. Chapel Hill passed the MOU with the model ordinance without comments. Carrboro passed the MOU with two provisions. One is that they would like to dissolve themselves from this agreement if the Board of County Commissioners does not create a financially feasible capital improvement program. The other provision is that they are concerned about the levels of service standards and a short-term moratorium. Hillsborough conceptually approved the MOU as is but they do not know if they need to put an ordinance into effect or if they could do it informally. The Chapel Hill-Carrboro City Schools approved the MOU as it is written. The Orange County Schools passed the MOU in December of 2000, but there have been changes since then, so they have concerns about the projection methodology. Orange County has had two or three public hearings and the process is to take the MOU and model ordinance as an agenda item and pass the ordinance with any conditions and set a public hearing and to add this to the land development code. Commissioner Gordon asked Craig Benedict to go over the draft projections to show where the problems are. Craig Benedict described each projection method. Chair Jacobs asked about capacity and if people in Raleigh want to reduce class size and if this would throw us off. Craig Benedict said that this would throw off the projections. Chair Jacobs asked if it would be more prudent to have a higher level of service if reducing class size is going to be the political trend. Craig Benedict said that you can look at the impacts of new legislation and see where it affects your over capacity situation. He said that SAPFOs that have run into legislative changes have not moved their levels of service, but they have taken a breather to catch up to the new standards. Chair Jacobs asked Craig Benedict if he said that these were some of the lowest levels of service that he had seen anywhere in the country. Craig Benedict said yes. Commissioner Halkiotis said that there was an outcry from the County Commissioners' Association about 10 years ago against a mandate for construction standards statewide that would include offices for each teacher. He said that you do not have anything to fear and this has been dealt with in many ways. He said that he has a problem with people in Raleigh telling us what to do with capacities of schools. County Attorney Geoff Gledhill said that they have thought about that and the building capacity cannot be mandated by anyone other than the County Commissioners and the school boards. Chair Jacobs said that if the school system has 22 students per class and the legislature said that it should be 20, would the County Commissioners have to agree to that. Geoff Gledhill said that we did not have to agree to that for the purposes of the SAPFO. It would require an increase in the levels of services. Commissioner Gordon said that this is one of the places where it impacts the two districts differently. The Orange County schools have smaller class sizes. Chapel HiII- Carrboro schools would need to reduce class size if the legislature reduces the class size. Geoff Gledhill said that the Board of County Commissioners has to agree to that change before it affects the way the SAPFO operates.