HomeMy WebLinkAboutORD-2009-053 - Equipment and Vehicles Capital Project OrdinanceORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: May 19, 2009
Action Agenda
Item No. ~~
SUBJECT: Capital Project Ordinance Amendments
DEPARTMENT: Financial Services
PUBLIC HEARING: (Y/N) No
ATTACHMENT(S):
School Capital Projects Fund Detail
Project Ordinances
INFORMATION CONTACT:
Name, Phone Number
Gary Humphreys (919) 245-2453
Donna Coffey (919) 245-2151
PURPOSE: To approve amended capital project ordinances appropriating additional funds for School
Capital Projects which are over budget and making various corrections to County Capital Project
ordinances.
BACKGROUND: At their February 3, 2009 meeting the Board of County Commissioners approved
the County Manager's two year plan to address additional funding needs of the School and County
Capital Project Funds. Approval of these amended capital project ordinances will make the necessary
corrections for this FY 2008-09. A similar action will be presented for Board action in FY 2009-10.
1) Projects Over budget -The following project ordinances address the capital projects in the School
Capital Project Fund where expenditures have exceeded the approved budget. See Attachment 1
for detailed information about the four projects listed below. With the exception of the transfer from
School Capital Reserve Fund in Project 1, the revenue for each of the projects listed below was
allocated to cover expenditures in prior fiscal years but the funds were not appropriated.
Capital Project Ordinance Revenue Amount Expenditures Amount
Orange County Schools
1 Pathwa s Elements 1997 Bonds ; 115,513 Construction S 33,661
" State Bonds
(6 37,409)
" Approp.Fund Bal (; 254,530)
" Tr From School
Ca ital Reserve Fd
S 210,087
2 Playground Protective Surfaces Transfer from Gen Fd ; 13,974 Surfacing ; 13,974
Chanel Hill-Carrboro Schools
3 Smith Middle Sch Cam us School Impact Fees ; 395,474 Construction S 395,474
4 Indoor Air Quali 2001 Bond Funds 61,215,111 51,215,111
Fund Total E1,658,220 ;1,658,220
2
2) Correction of Funding Source -The County Capital Project Fund project ordinances listed
below correct the method used to move funds from one project to another. In past years funds
have been moved from one project to another by intrafund transfers. This is not "best practice" in
the accounting industry and should not be done for the following reasons:
1) Transfers are only to be used for budgeted movements between funds, not for budgeted
movements within the same fund. The use of transfers within the same fund will result in an
inflated figure for both the budgeted amount of money and the actual amount of money in the
fund.
2) The use of transfers between projects can obscure the actual source of funds being used to
pay for any one project, thus making it difficult to track and properly account for the use of
restricted fund sources such as debt financing and grants.
The best practice is to reduce the funding source of the project from which funds are being moved.
Conversely the project receiving additional funding will show an increase in its fund source. In the
chart below, projects with the same number followed by a letter indicate those projects in which funds
were first reduced (project "A") and then increased (project "B"), thus correcting the inappropriate
"transfer" between projects.
The current Project Ordinance budgets for Homestead Aquatics and Southern Park are also out of
balance by offsetting amounts. Project ordinances 8A and 8D correct those balances.
The Twin Creeks (Moniese Nomp) Park Project Ordinance 6C, Lands Legacy Project Ordinance 86
and Northern Human Service Center (now Cedar Grove) -Park Ordinance 8C are being amended to
align revenues with expenditures by including the remaining funding from the April 2009 Alternative
Financing and future financing.
In addition, Central Recreation Repairs Ordinance 5A is being reduced by $51,060 to provide funding
needed to cover over expended budgets in the Greenways Development project and Homestead
Community Center project.
Capital Project Ordinance Account
(r) revenue (e) expense Amount
debit Account
(r) revenue (e) expense Amount
credit
5A Central Recreation Re airs (r) 2/3rds Bonds $111,060 (e) Transfer to other proj $60,000
5B "
Homestead Communi Ctr
(r) Transfer from other proj
$60,000 (e) Construction
(r) 2/3rds Bonds $51,060
$77,634
" " (e) Sewer Connection $17,634
6A Soccer Su erfund (r) 2001 Bonds $2,000,000 (e) Transfer to other proj $2,000,000
6B WeSt Ten Soccer Com lex (r) Transfer from other proj $1,350,000 (r) 2001 Bonds $1,350,000
6C Twin Creeks Park (r) Transfer from other proj $650,000 (r} Alternative Financing $1,000,000
" (r) 2001 Bonds $350,000
7 Greenwa Develo ment (r) 2001 Bonds $575,000 (e) Transfer to other proj $1,000,000
" (r) Transfer from other proj $425,000 (r) 2/3rds Bonds $33,426
" " (e) Construction $33 426
8A Homestead A uatics (e) Contribution to Ch Hill $2,809,508 (e) Transfer to other proj $3,175,000
" (r) 2001 Bonds $500,000 (r) Alternative Financing $500,000
86 Lands L aC (r Transfer from other proj $1,750,000 (r) 2001 Bonds $1,635,364
" " (e) Land 8 Associated Fees $2,825,300 (e) Millhouse Rd Property $300
" (e) Blackwood Property $1,268,116 (e) Other $1,408,897
(e) Lewis Heartleaf Presve $1,145 (r) Alternative Financing $2,800,000
8C Northern Human Svc Ctr Park r Transfer from other $500 000 (r) Alternative Financing $500,000
SD Southern Park (r) Transfer from other proj $925,000 ((r) 2001 Bonds $925,000
" (e) Contribution to Ch Hill $365,492
9 Bolin Creek Greenwa (r) Transfer from other proj $75,000 ((r) 2001 Bonds $75,000
Fund Total $16,591,681 $16,591,681
3
3) Project Budgets Out of Balance -The County Capital Project Fund project ordinances listed
below are out of balance, meaning the budgeted revenue for the project does not equal the budgeted
expenditure. In addition, the Capital Project Fund budget as a whole is $1,000 out of balance.
Project Ordinance 11A will balance both the projects and the fund.
Project Ordinance 10A: Equipment and Vehicles closes old activity prior to the current fiscal year.
Acquisition of vehicles is now being financed on a pay as you go basis in the General Fund.
Project Ordinance106: Conservation Easements also realigns line item budgets within the Ordinance
to cover expenditures in those line items.
Project Ordinance 11A: Debt Issuance Casts and Transfers appropriates revenue from interest
earning funds to cover past expenditures. It also provides additional funding for future expenditures
related to debt issuance costs and transfers to the General Fund for debt service. There have been
no appropriations in this project prior to now.
Im Q~
2~•a53
Capital Project Ordinance Account
(r) revenue (e) expense Amount
debit Account
(r) revenue (e) expense Amount
credit
10A E ui ment and Vehicles (r) NC DOT Funds E634,800.Z7 (e)Animal Control Veh $76,862.00
°' °' (r) USDOJ Funds 538,574.00 (e)Inform Tech Vehicles $22,600.00
" (r) Equipment Financing $3,415,031.00 a Bld S Gmds Veh 5163,425.00
" `° (r) From General Fund 5615,927.48 a Motor Pool Vehicles $302,458.00
« ~~ (r) From other Project $559,000.00 (e)San"dation Equipment $168 524.00
'~ ~~ (e)Sanitation Vehicles $391,775.00
« (e)Trans to General Fnd $100,000.00
~~ (e) Unallocated $73,114.00
N (e) Social Services Veh 516 275.00
~• ~~ (e) Health Admin Veh $77,135.00
~~ (e) Dental Health Equip 582,506.00
« (e)Env Health Equip 518,000.00
« « (e) Personal Hlth Equip $9,037.00
~~ ~ ~~ (e) OrangePubTransVeh $276 874.31
« (e)Recreation&Pks Eqp 587,389.00
(e) Recreation&Pks Veh $137,564.00
« (e)Little River Park Eqp $32,794.00
« N (e) Little River Park Veh $32 000.00
« « (e) ERCD Vehicles 546 828.00
« N (e)Planning Vehicles $56,000.00
« ~~ (e)Sheriff Equipment 5164,162.00
« ~~ (e) Sheriff Vehicles 51,319,934.50
« (e)Emerg Mgt Equip $291,468.87
N ~~ (e) Emerg Mgt Vehicles 51,393,628.07
10B Conservation Easements (r) From other project 577,019 a Unallocated 586,813
" e Tate Easement $1,050
" e Sh Easement $1,000
" e Peele Easement $84,763
11A Debt Issuance
Costsltransfers
(e) Trans to Gen Fun
$2,200,000
(r) Interest on invest
$2,499,000
e Debt Related Costs 5300,000
ti N
Fund Total 57,927164.75 57,926,164.75
FINANCIAL IMPACT: The financial impact of the recommended action is discussed in the background.
RECOMMENDATION(S): The County Manager recommends the Board of County Commissioners
approve these capital project ordinances for FY 2008-09.
aye -~aQ X53
Equipment and Vehicles
Capital Project Ordinance
19
Be it ordained by the Orange County Board of County Commissioners that pursuant to Section
13.2 of Chapter 159 of the General Statutes of North Carolina, the following capital project
ordinance is hereby adopted.
Section 1. The project authorized provides funds for the purchase of equipment and vehicles.
Section 2. The officers of the County are hereby directed to proceed with the project within the
total budget contained herein.
Section 3. The following revenue is anticipated to complete this project.
FY 2007108 Amendment FY2008/09
NCDOT Funds 5634 800.27 ;634 800.27 0
USDOJ Funds 38 574.00 38,574.00 0
E ui ent Financin 3,415 031.00 3 415,031.00 0
From General Fund 815,295.48 692 946.48 122 349
From Other Pro ects 559,000.00 481,981.00 77,019
Total ;5 62 700.75 ;5 263 332.75 ;199 368
Section 4. The following amount is appropriated for this project.
FY 2007/08 Amendment FY2008/09
Animal Control Vehicles 5173,400.00 (76,862.00) ;96,538
Information Tech Vehicles 22,600.00 (;22,600.00)
Building 8 Grounds Vehicles 163,425.00 (163,425.00)
Motor Pool Vehicles 303,380.00 (302,458.00) 922
Sanitation Equipment 168,524.00 (168,524.00)
Sanitation Vehicles 391,775.00 (391,775.00)
Transfer To General Fund 100,000.00 (100,000.00)
Unallocated 73,114.00 (73,114.00)
Social Services Vehicles 16,275.00 (16,275.00)
Health Admin Vehicles 77,135.00 (77,135.00)
Dental Health Equipment 82,506.00 (82,506.00)
Environmental Health Equip 18,000.00 (18,000.00)
Personal Health Equipment 9,037.00 (9,037.00)
Orange Public Trans Vehicles 361,430.31 (276,874.31) 84,556
Recreation 8 Parks Equip 89,290.00 (87,389) 1,901
Recreation 8 Parks Vehicles 137,564.00 (137,564.00)
Little River Park Equipment 32,794.00 (32,794.00)
Little River Park Vehicles 32,000.00 (32,000.00)
ERCD Vehicles 46,828.00 (46,828.00)
Planning Vehicles 56,000.00 (56,000.00)
Sheriff Equipment 164,162.00 (164,162.00)
Sheriff Vehicles 1,335,385.50 (1,319,934.50) 15,451
Emergency Mgt Equipment 291,468.87 (291,468.87)
Emergency Mgt Vehicles 1,393,626.07 (1,393,626.07)
Total ;5,539,719.75 (55,340,351.75) ;199,368
Section 5. This ordinance supersedes any previous Capital Project Ordinances for this project.
20
Section 6. This ordinance shall remain in effect- the Board of County Commissioners takes
action to amend the ordinance or close the project ordinance upon completion of
the project.
Adopted this 19~' day of May 2009.
~~-a9
~c
Laura Blackmon made reference to the list of tiers for monthly bills. This is a four-year
program. She said that the proposal for the Board is to monitor the first and second year to see
the impact on the neighborhoods and then reevaluate where they are.
Commissioner Pelissier asked if there is capacity in these funds for additional people.
Kevin Lindley said that the Town of Hillsborough has also agreed to let Efland customers use
part of the water assistance fund.
Commissioner Yuhasz asked that notice of these programs go out with the shut-off
notice.
A motion was made by Commissioner Yuhasz, seconded by Commissioner Hemminger
to implement an information and referral process to alert all Efland Sewer customers on how to
access Emergency Assistance programs administered by both Social Services and OCIM,
including that funding by the Town, to help eligible households pay their utility bills and monitor
and assess the demand for Emergency Assistance caused by increased sewer rates during the
first year (FY 2009-10) and use those findings to formulate recommendations to the Board
about future levels of assistance that may be necessary.
VOTE: UNANIMOUS
c. Capital Project Ordinances Amendments
The Board considered approving amended capital project ordinances appropriating
additional funds for School Capital Projects which are over budget and making various
corrections to County Capital Project ordinances.
Laura Blackmon said that last fall the staff brought forward some issues with the School
Capital Projects and the County Capital Projects. Finance has been itemizing the differences
that resulted in the staff asking for some fund balance in order to set this right.
Financial Services Director Gary Humphreys said that these are not all of the
amendments the Board of County Commissioners will see and the items have been organized
in groups. The first group is for the schools. He said that with the exception of the one on
Pathways Elementary, all of the funds were allocated to the projects but not reflected
necessarily in the budget. He said that the budget amounts are not significantly out of line with
what the schools show as their budgets.
Commissioner Hemminger verified that this had no negative impact on the schools and
is a matter of cleaning up the books.
Discussion ensued about why this is being done.
Gary Humphreys said that this involves eliminating the existing revenue source and
replacing it with the appropriate revenue source.
Commissioner Gordon said that you really cannot tell what has happened by reading
this document. She said that she would like to see the overall picture and complete prcject
ordinances. She is concerned about this because project ordinances are what implement
projects. She also wants to make sure that all stakeholders, such as the schools, department
directors, etc., are involved in reviewing these changes.
Laura Blackmon said that the project ordinances should list all of the revenues, etc., and
the Board should have all of the information it needs.
Laura Blackmon said that bond money should be spent right away and not nine years
later and Commissioner Gordon agreed.
Commissioner Yuhasz said that he would like to see the original project ordinances
because it would make a lot more sense to him. He asked that the staff bring a random sample
of these.
Chair Foushee said that it would be important for the public to know what measures
have been put in place to make sure this does not happen again. Gary Humphreys said that it
would be a matter of reviewing these on a constant basis.
Laura Blackmon pointed out that there was a lot of confusion during the conversion to
MUNIS. The project ordinances should be closed out when the projects are completed, and
this has not been happening in a timely manner.
Commissioner Jacobs asked what percentage of the 2001 bond money had not been
spent. Gary Humphreys said that the only thing left is what was authorized for the alternative
financing which was substituted for the bond money. More than 90% of it has been spent. The
majority of what is left is in Lands Legacy and Parks and Recreation.
Commissioner Jacobs said that he is not in favor of spending bond money just for the
sake of saying that it was spent. Most of it has been committed. He is tired of this
conversation. Also, regarding the $600,000 for the Soccer Superfund, the Board has asked the
Manager to meet with Chapel Hill and Carrboro and figure out a plan for spending that money.
Laura Blackmon said that she could report back on this in June.
Commissioner Jacobs made reference to the School Capital Reserve Fund and said
that the reason it was spent was because Governor Easley took more than $2 million from the
County during the budget process and there was money that could be reassigned. He said that
if this was replenished, he does not think that the Board of County Commissioners was aware
of it, and if it is something else, he would like to know what it is. Also, the Board appropriated
money from the Commissioners' Contingency toward paying for a position earlier, and he asked
for the minutes from last year's budget, and then $25,000 was put in the Commissioners'
Contingency for the Attorney search. This money should not have been in the Commissioners'
Contingency, yet there was still $40,000 in the Commissioners' Contingency, which was only
$40,000 to begin with. He said that something is not tracking.
Chair Foushee said that it would seem that an appropriate motion would be to approve
the capital project ordinance amendments that are included in the packet:
- Pathways Elementary -Orange County Schools Capital Project Ordinance'
- Playground Protective Services - OCS Capital Project Ordinance
- Smith Middle School Campus -CHCCS Capital Project Ordinance
- Indoor Air Quality -CHCCS Capital Project Ordinance
- Central Recreation Repairs -Capital Project Ordinance
- Homestead Community Center Capital Project Ordinance
- Soccer Superfund Capital Project Ordinance
- West Ten Soccer Complex Capital Project Ordinance
- Twin Creeks Park Capital Project Ordinance
- Greenways Development Capital Project Ordinance
- Homestead Aquatic Center Capital Project Ordinance
- Lands Legacy Capital Project Ordinance
- Northern Human Services Center Park Capital Project Ordinance
- Southern Community Park Capital Project Ordinance
- Bolin Creek Greenway Capital Project Ordinance
- Equipment and Vehicles Capital Project Ordinance
- Conservation Easements Capital Project Ordinance
- Debt Issuance Costs/Transfers Capital Project Ordinance
A motion as made by Commissioner Hemminger, seconded by Chair Foushee to accept
the ordinance amendments as stated above as long as there is no direct cost back to the
General Fund or Fund Balance.
Commissioner Yuhasz said that he will vote for this, but he would still like to see some
samples of what these look like after adopted. The Board agreed.
Commissioner Gordon said that she would like to urge the Board to vote against this
since it is not just a clean up of the accounts and the Board should get a complete explanation.
VOTE: Ayes, 3; Nays, 3(Commissioner Gordon, Commissioner Pelissier, and Commissioner
Jacobs)
MOTION FAILED
Laura Blackmon said that the staff would bring it back and include samples in the next
agenda.
Commissioner Jacobs made reference to the bonds and said that he has asked for
several years for information. The voters were promised in 2001 that the bonds would result in
no more than aseven-cent property tax increase. He has asked for this repeatedly and the
Board has never gotten it.
d. Process for Evaluating Town Site Suggested For Transfer Station
The Board considered a possible solid waste transfer station location on Millhouse
Road as suggested by the Town of Chapel Hill at the Board of County Commissioners work
session on May 14, 2009 and reviewed the process in relation to on-going investigation of Site
056.
Solid Waste Director Gayle Wilson said that at the May 14, 2009 meeting, Chapel Hill
Mayor Kevin Foy brought up a site on Millhouse Road as a possible site for a transfer station. It
was not a formal offer, but on the table for discussion. He said that the purpose of this item
was for the Board to give direction to the staff about this site. It is his understanding that if the
Board chooses to proceed to evaluate this site; it would be done on a parallel track with the
Howell property. Information could be brought back by June 16th. However, it is likely that the
wetlands recommendation on the Howell site would not be ready for the June 16th meeting.
Staff would like to bring this back at the August 18th meeting.
The Manager's recommendation is that the Board:
-Direct staff to conduct a preliminary evaluation of the Town site and report findings at
the June 16th BOCC meeting;
-Confirm staff will continue the COE wetlands determination of Site 056 and to return at
the August 18th BOCC meeting with the results, including the Planning Department
decision on the enhanced environmental assessment of the site; and
-Consider a final decision on the location of the transfer station at the August 18th
BOCC meeting.
PUBLIC COMMENT:
Charles Viles, Vice President of the Board of Directors of Emerson Waldorf School,
read a letter.
"Dear Board of County Commissioners,
As Vice President of the Emerson Waldorf School, I am writing to you today to express
our deep concern regarding recent developments in the site selection process for the proposed
Waste Transfer Station. Through media reports and communications with our neighbors, we
have learned that a 32-acre site immediately adjacent to our school is under some level of
discussion.
Now in our 25th year, Emerson is the academic home for 265 students from pre-k
through High School, ages 3 to 18. The vast majority of these children reside in Orange
County, Carrboro, or Chapel Hill. Our core and overriding mission is the education of children
using a curriculum and educational philosophy that is grounded equally in academics, art,