HomeMy WebLinkAboutAgenda - 04-11-2013 - 3ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: April 11, 2013
Action Agenda
Item No. 3
1
SUBJECT: To continue review and discussion of the Manager's Recommended FY 2013-
18 Capital Investment Plan (CIP)
DEPARTMENT: Finance and Administrative PUBLIC HEARING: (Y /N) No
Services
ATTACHMENT(S):
Attachment A. Budget Comparisons of
Prior Capital Investment
Plans
Attachment B. Proposed Environment
and Agricultural Center at
Blackwood Farm Park
Attachment C. Presentation of Proposed
Sportsplex Projects
INFORMATION CONTACT:
Frank Clifton, County Manager,
(919) 245 -2305
Clarence Grier, Finance and
Administrative Services,
(919) 245 -2453
Paul Laughton, Finance and
Administrative Services,
(919) 245 -2152
PURPOSE: To continue review and discussion of the Manager's Recommended FY 2013 -18
Capital Investment Plan.
BACKGROUND: For over 20 years, the County has produced a Capital Investment Plan (CIP)
that establishes a budget planning guide related to capital needs for the County as well as
Schools. The current CIP consists of a 5 -year plan that is evaluated annually to include year -to-
year changes in priorities, needs, and available resources.
The Manager's Recommended FY 2013 -18 Capital Investment Plan was presented to the
Board of County Commissioners at their March 12, 2013 Work Session. The following were
items discussed that staff was directed to bring back as informational items to the meeting
tonight:
• Attachment A reflects a comparison by Function of the Manager's Recommended FY
2013 -18 CIP with the FY 2012 -17 and FY 2011 -16 Capital Investment Plans.
• Attachment B provides a summary of a proposed Environment and Agricultural Center at
Blackwood Farm Park, including a permanent Parks Operations Base, to be phased in
over a three year period (FY 2015 -16 through FY 2017 -18). See page 37 in the CIP
document for a complete funding scenario for this building and park facilities.
• Chapel Hill- Carrboro City Schools submitted as part of their unfunded new facilities
projects a Science Wing Addition at Culbreth Middle School totaling $4,971,676. The
majority of construction costs would occur in FY 2014 -15, with an anticipated opening
date of August 2015. Currently, this project is not included in the Manager's
Recommended FY 2013 -18 CIP. The impact of including this project in the CIP would
increase annual debt payments by a total of $477,281 ($57,600 in FY 14 -15, $427,588 in
FY 15 -16, and $477,281 starting in FY 16 -17 and future years). To pay for this, one or
several other projects would need to be deferred to Years 6 -10 or removed entirely in
order to accommodate this increased debt.
Also, at the meeting tonight, John Stock, CEO of Recreation Factory Partners, the operator of
the Sportsplex, will provide a short presentation of the planned lobby renovations, as well as the
proposed new building additions that are proposed in the CIP for the Sportsplex. (See
Attachment C).
Capital Investment Plan — Overview
The FY 2013 -18 CIP includes County Projects, School Projects, Proprietary Projects, and
Special Revenue Projects. The Proprietary Projects include Water and Sewer, Solid Waste
Enterprise Fund, and Sportsplex projects. The Special Revenue Projects include Economic
Development and School related projects funded from the Article 46 (1/4 cent) Sales Tax
proceeds. The Article 46 Sales Tax was approved by the voters in the November 2011
election, and became effective April 1, 2012.
The CIP has been prepared anticipating continued slow economic growth of between 1 -2%
annually over the next five years. Many of the projects in the CIP will rely on debt financing to
fund the projects.
County Capital — Highlights
The County Capital section includes four (4) new projects that were not part of the FY 2012 -17
Approved CIP. These projects include the following:
Environment and Agriculture Center — The age and condition of the current facility require
significant investment for on -going use, including replacement of the roof, HVAC equipment,
and asphalt repair /improvements. Year 5 (FY 2017 -18) reflects funding of $1,353,508 for these
repairs /replacement. This is one of several facilities that was discussed with the Board of
Commissioners at their February 12, 2013 work session.
Government Services Center Annex — includes $350,000 in Year 5 (FY 2017 -18) for HVAC
replacement. This is one of several facilities that was discussed with the Board of
Commissioners at their February 12, 2013 work session.
Historic Rogers Road Neighborhood Community Center — During FY 2012 -13, the Board of
Commissioners approved the establishment of a capital project for the construction of a Historic
Rogers Road Neighborhood Community Center with funds of $650,000. The project is
K
contingent on both an Interlocal Agreement with the Towns of Chapel Hill and Carrboro, and the
approval of a contract with Habitat for Humanity for the construction and operation of the
Community Center. No additional funding is included in the Manager's Recommended FY
2013 -18 CIP.
Little River Park (Phase 11) — based on the Little River Park master plan, and infrastructure
improvements needed, this project would pave the road and expand parking, repave the ADA
loop trail with funds of $175,000 in Year 3 (FY 2015 -16), and add a new maintenance shed and
new playground in Years 6 -7. Funding is shared 50% with Durham County for this project.
Other Major County projects include the following:
Southern Orange Campus (Future Planning) — Design services of $400,000 are recommended
in Year 2 (FY 14 -15, with site development infrastructure work of $3,600,000 recommended in
Year 3 (FY 15 -16) for campus buildings not associated with the existing Southern Human
Services Center (SHSC). Expansion of the existing SHSC is included in a separate CIP project.
Southern Human Services Center Expansion — includes expansion of the existing SHSC,
contingent upon approval of the Special Use Permit (SUP) modification that will guide use of
this site. Funding of $6,650,000 is recommended in Year 4 (FY 2016 -17) for this expansion,
which includes a Dental Clinic.
Southern Library — includes $600,000 in Year 1 (FY 2013 -14) for possible land purchase and
design costs, $525,000 in Year 3 (FY 2015 -16) for site work /engineering, and construction costs
of $7,000,000 to be spread over two fiscal years ($3,500,000 in Year 4 and $3,500,000 in Year
5).
Proposed Jail — total project costs of $30,000,000, with site related planning costs of $500,000
recommended in Year 3 (FY 2015 -16), architectural /engineering costs of $500,000 in Year 4
(FY 2016 -17), with the construction of a new 250 bed jail recommended in FY 2017 -18 at an
estimated cost of $29,000,000.
Blackwood Farm Park — Funds for construction of an Agricultural, Environment, and Parks
Center, including a permanent parks operations base, are planned for two phases ($3,000,000
in Year 3 and $2,000,000 in Year 5), with design, engineering, and preconstruction funds
totaling $600,000 in Years 1 and 2. The bulk of Park construction is recommended in Year 4
(FY 2016 -17) with funds of $1,300,000.
Eurosport Soccer Center (Phase 11) — This represents an investment in the current facility, with
additional restrooms and parking in Year 2 (FY 2014 -15), as well as conversion of one field to
artificial turf with funds of $800,000 in Year 3 (FY 2015 -16). Possible land acquisition and
design are recommended for Year 5 (FY 2017 -18) with funds of $675,000, with the expansion
of the facility projected in Years 6 -7.
Millhouse Road Park — The recommended budget for this project reflects a possible Town of
Chapel Hill /County partnership concept for this project. Funds of $100,000 for design,
engineering, and preconstruction costs are recommended in Year 2 (FY 2014 -15), with park
construction funds of $6,400,000, including a soccer field complex, walking trails, and other
amenities, recommended in Year 3 (FY 2015 -16).
M
Future EMS Stations — Funds of $875,000 each in Years 1, 3, and 5 of the CIP are included for
the construction of three (3) stand -alone new substations for Emergency Services, with a fourth
substation planned in Year 7. The cost is for the facility and infrastructure, and assumes
construction on County -owned property. Locations will be identified as part of the process for
facility siting, and may include co- locating with cell towers or with other County operations,
which could possibly reduce the costs. Funding amounts could change on a site -by -site basis.
Communication System Improvements — includes continued phasing in of Emergency Services
800 Mhz radios in Years 1 -4 of the CIP, with replacement of Sheriff radios of $920,000 in Year
5 (FY 2017 -18). Year 1 (FY 2013 -14) also includes financing of P25 Compliant Radio System
Consoles totaling $832,268 and replacement of the main 9 -1 -1 switch - NextGen Phone System
of $402,000 (debt service to be paid with E -9 -1 -1 funds on both of these), and the financing of
P25 compliant portable radios for the rural fire districts (debt service to be paid by the General
Fund). The purchase of the P25 compliant consoles and radios ensures integration to the new
platform that the North Carolina State Highway Patrol /VIPER is scheduled to place in service
during the second half of 2013. (NOTE: At the March 19, 2013 BOCC meeting, the BOCC
approved Budget Amendment #8 -A for the purchase of twenty -seven portable radios at a
discounted price of $89,077. With this purchase, the $143,000 currently in FY 2013 -14 for
800 Mhz Radios can be removed from this project. Also, at the same meeting, the BOCC
approved Budget Amendment #8 -B to purchase eleven P25 Compliant radio consoles in
the 9 -1 -1 Center with a 30% down payment in the current fiscal year towards this
purchase. With this down payment, $231,026 can be removed from this project in FY
2013 -14).
Special Revenue Projects (Article 46 Sales Tax Proceeds) — Highlights
The Special Revenue section includes anticipated revenue from the Article 46 (1/4 cent) Sales
Tax, with 50% of the proceeds for Economic Development initiatives and 50% for Education
(allocated by the ADM count of the two school districts). In FY 2012 -13, proceeds are
estimated at $2,600,000, with 1.5% growth assumed in subsequent years. A summary is
provided within the Special Revenue Projects section of the document listing the recommended
uses of these proceeds.
Proprietary Projects — Highlights
Water & Sewer Utilities — Year 1 (FY 2013 -14) reflects continuation (work began in FY 2012 -13)
of the McGowan Creek Pump Station rehabilitation project costs ($621,250) in the Central
Efland /North Buckhorn Sewer Expansion project, in order to take advantage of remaining State
Revolving Loan funds. Year 2 (FY 2014 -15) reflects funds of $3,426,000 of the Buckhorn EDD
— Phase 2 Extension ( Efland Sewer Flow to Mebane) for construction of this project. This
project has been moved up one year from the previously approved CIP. Funds of $1,750,000
are recommended in Year 2 (FY 2014 -15) for the construction work on the Eno EDD project,
and funds of $2,500,000 are recommended in Year 3 (FY 2015 -16) for the Buckhorn- Mebane
Phase 3 and 4 construction projects. Both of these projects have been moved back one year
from the previously approved CIP.
Solid Waste — includes recommended funds of $3.16 million in Year 1 (FY 2013 -14) for
construction closure costs associated with the Municipal Solid Waste (MSW) Landfill. The
Landfill closes on June 30, 2013, but the construction closure costs will occur during FY 2013-
14 due to the delay by the State on approval of the closure plan. Recommended funding for
Recycling Operations has changed significantly from the previously approved CIP, with funding
based on a plan to move to franchising /privatization of curbside services.
Sportsplex — includes funding in Year 2 (FY 2014 -15) for a Mezzanine addition at the pool area
to include dedicated member change areas and lockers, workout rooms, and a senior /adult
cardio strength center. The operator of the facility has proposed two new projects, which are
included in Years 3 and 4. A new building addition is proposed in Year 3 (FY 2015 -16) at a cost
of $1,900,000 that would house an indoor turfed field for soccer, lacrosse, senior walking,
running, kidsplex functions, and kickball. A second new building addition is proposed in Year 4
(FY 2016 -17 at a cost of $900,000 that would house a regulation sized high school /college
basketball court, including bleacher seating. The operator's revenue projections from these
new projects would generate enough funds to cover the additional annual debt service needed
for these projects.
School Projects — Highlights
Chapel Hill- Carrboro City Schools — Based on the Schools Adequate Public Facilities Ordinance
(SAPFO) most recent November 15, 2012 projections, a new Middle School #5 would be
needed in FY 2017 -18, so funds are recommended in Years 2 -5, with most of the construction
funds in Year 4 (FY 2016 -17) to accomplish this target opening date. Pay -As- You -Go (PAYG)
funds are estimated at a 1.5% annual growth rate and the Lottery Proceeds are held constant
throughout the 5 -year CIP period.
Orange County Schools — Consistent with the current approved CIP, funds of $3,328,750 are
recommended in Year 2 (FY 2014 -15) for the construction of an auxiliary gym at Cedar Ridge
High School, as well as recommended funds of $12,282,960 in Year 3 (FY 2015 -16) for the
construction of a 20 classroom addition wing to address over capacity issues at Cedar Ridge
High School. 1.5% annual growth in PAYG funds and constant Lottery Proceeds are assumed
throughout the 5 -year CIP period.
Note: Within the School Capital Projects section, there are three summaries provided that
reflect: (1) the Recommended projects, (2) the Requested, but Unfunded projects, and (3) the
total amount of the Recommended and Unfunded projects.
Appendices — Highlights
County Debt Service and Debt Capacity — Based on the Manager's recommended funding, the
County's annual debt service as a percent of the General Fund budget would remain under
15% until FY 2017 -18, when it would reach 15.65 %.
Note: An additional summary is provided in the Appendices section, which reflects the debt
service percent if all the Recommended and the Requested, but Unfunded projects were
included during the FY 2013 -18 CIP period. This would increase the percentage to 16.75% in
FY 2016 -17, and to 18.04% in FY 2017 -18.
Water and Sewer Projects Debt Service (to be paid with Article 46 Sales Tax proceeds) — based
on the current allocation for debt service for Economic Development initiatives, the accumulated
amount of revenue earmarked for debt service is adequate to cover debt service payments
through the 5 -year CIP period.
Active County Capital Projects — also included in the Appendices section is a list of all currently
active County Capital projects reflecting available balances as of February 28, 2013.
FINANCIAL IMPACT: There is no immediate financial impact associated with the FY 2013 -18
Capital Investment Plan. It is a long -range financial planning tool with a financial impact in FY
2013 -14, if the first year of the CIP is approved by the Board of County Commissioners with the
adoption of the Annual Budget.
RECOMMENDATION(S): The Manager recommends the Board of County Commissioners
continue their review and discussion of the Manager's Recommended FY 2013 -18 Capital
Investment Plan and provide direction to staff in preparation of the May 9, 2013 Budget work
session.
Orange County Capital Investment Plan Projects
Historical Comparison of County -wide Appropriations
1. 2013 - 18 Manager Recommended CIP
Year 1: 2013 - 2014 Years 1 -5: 2013 - 2018
$18,732,364 $209,026,906
Millions
$5.9
$ 6.0
$5.1 $5.1
$5.0
$4.0
$ 3.0 $2.6
$ 2.0
$1.0
County Schools Proprietary Article 46
Funds Sales Tax
2. 2012 -17 Approved CIP
Year 1: 2012 - 2013
$45,484,182
Millions
$30.0 $26.5
$25.0
$20.0
$15.0
$9.8
$10.0 $6.7
$5.0 - Id $2.5
$ County Schools Proprietary Article 46
Funds Sales Tax
3. 2011 - 16 Approved CIP
Attachment A7
Millions
$90.0 $87.7
$81.4
$75.0
$60.0
$45.0
$30.0 $26.4
$13.6
$15.0
County Schools Proprietary Article 46
Funds Sales Tax
Years 1 -5: 2012 - 2017
$193,272,983
Millions
$80.1
$80.0 $71.3
$ 60.0
$40.0 $29.4
$20.0 $12.5
County Schools Proprietary Article 46
Funds Sales Tax
Year 1: 2011- 2012
$15,022,075
Millions
$7.9
$8.0
$6.0
$37.7
$4.5
$4.0
$ 20.0
$2.7
$2.0
31% 27%
$
County Schools Proprietary
County Schools Proprietary
Funds
Attachment A7
Millions
$90.0 $87.7
$81.4
$75.0
$60.0
$45.0
$30.0 $26.4
$13.6
$15.0
County Schools Proprietary Article 46
Funds Sales Tax
Years 1 -5: 2012 - 2017
$193,272,983
Millions
$80.1
$80.0 $71.3
$ 60.0
$40.0 $29.4
$20.0 $12.5
County Schools Proprietary Article 46
Funds Sales Tax
Years 1 -5: 2011 - 2016
$121,937,077
Millions
$51.9
$50.0
$40.0
$37.7
$32.3
$ 30.0
$ 20.0
743%o 1
$10.0
31% 27%
County Schools Proprietary
Funds
Attachment B
Proposed
Environment, Agriculture & Parks Center' at Blackwood Farm
Projected Cost (Rough Estimate): $5,300,000
Proposed Timeframe: July 2015- June 2018 (Two phases)
Location: Northeast corner of Blackwood Farm Park
Projected Uses:
Phase I (2015 -16)
• Offices for all agricultural agencies (Cooperative Extension, USDA Farm
Services Agency, USDA NRCS, USDA RD) and the Department of
Environment, Agriculture, Parks and Recreation (including Soil and Water
Conservation District office, excluding until Phase II Parks Division staff)
• Foods Lab / Meeting Room (capacity = 75 persons)
• Conference Room (capacity = 25 persons)
• Environmental Education Kiosk and Exhibit Area
• Environmental Education classroom
Phase II (2017 -18)
• Parks Maintenance Shop and Parks staff offices (indoor)
• Parks maintenance Shed (outdoor /covered)
• Parks Equipment Area (outdoor /fenced)
• Outdoor classroom (in park located adjacent)
1 Would ultimately include all staff from current Environment & Ag Center (Revere Road),
Parks Operations Base (Millhouse Road), and some staff from Central Recreation Center.
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Enlarged Northeast Area of:
"Future" Blackwood Farm Park
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10
ORANGE COUNTY Orange County SPORTSPLEx Attachment C
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Sportsplex: Situation Analysis
I
Under RFP management, the Sportsplex has grown revenues 75% over 6.5
years...... sustainable annual growth of 10 %.
Annual operating costs have been controlled at the same levels they were at the
contract inception in 2005. RFP has a proven record of leveraging its staff and
management to support significant growth.
Over the contract term Sportsplex financial performance has improved from annual
losses of ($800,000) prior to RFP, to consistent annual net operating results of
$400,000. A $1,200,000 improvement!
Sportsplex currently has a $1,100,000 Fund Balance
But..... Because of growth we lack space for rapidly growing programs for children,
adults and senior.
RFP can meet growth needs and achieve similar incremental financial results
through a four stage physical expansion of the existing Sportsplex facility.
11
ORANGE COUNTY
SPOR TSPLEx What is needed to make
SP�R
ii
Vision a Reality
❑ Four Phase Renovation /Expansion
Lobby (+ $110,000)
Fitness Mezzanine over Pool ($950,000)
Multi -use Turf ($1,900,000)
Versatile Court ($900,000)
ORANGE COUNTY
SPORTSPLEX
_.l
Lobby Renovation
Ir I :Ir
12
• Addition of 1,843 sq. ft. of Group X and Specialty training space.
Modest cost and 18 month year payback.
• Movable wall design divides the main GroupX room into 5 distinct
venues — significant program flexibility and Kidsplex space.
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13
ORANGE COUNTY
SPORTSPLEX
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lobby Renovation
Ir
FY12/13 CIP includes $165,000 for Lobby cosmetic facelift.
( Flooring, Paint, Lighting).
Design review revealed opportunity to add 1,843 sq. ft. of programmable
Group X and Specialty training space at an modest incremental cost of
$110,000
A movable wall design can divide the main Group X room into 5 distinct
venues — facilitates significant program flexibility, lobby events and Kidsplex
space.
This investment results in incremental programming and membership
revenue growth of $312,000 in the first year after completion.
Leveraging staff and overhead, results in $200K annual contributions to the
Fund Balance - (18 month payback)
ORANGE COUNTY
EX Pool Fitness Mezzanine
(overlooking pool)
14
• Highly cost effective mezzanine construction process resulting in
high return on investment
• 5,400 sq . ft.
• Cardio for Adults
• Senior Programs
• Member lockers
• Weight loss room
Lj Y-
Theraaeutic Massage
--
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ORANGE COUNTY
SPORTSPLEX
Fitness Mezzanine
15
5,400 additional sq. ft. connected to existing ice rink mezzanine)
Private member change area compatible with Fitness Club
projected to grow to 6,000 Members
Dedicated rooms for Spin /Row /Therapeutic Massage plus 1,800 sq.
ft. for recumbent equipment, low intensity /impact strength area
for older adults and seniors
No Change in CIP Funds for FY14/15 ( $950,000)
670 additional members annually
Five year revenue generation
contribution to Fund Balance
(3.5 year payback)
Of $11694,00 and $112501000
ORANGE COUNTY
SPORT Revenue /Income Generation
SP�R
from Turf Addition
Annual member growth $184,250
Five Year membership growth
Programming Revenue Growth over 5 years
Total Five Year
Revenue Growth
Five Year Contribution to Fund Balance
Approx. 5 %2 Year Payback
$921,250
$ 3,600,000
$4,521,250
$1,750,000
16
ORANGE COUNTY
SPOR TSPLEx Revenue /Income Generation
SP�R
•l
from Court Addition
Annual member growth $184,250
5 Year membership growth
Programming Revenue Growth over 5 years
5 Year Incremental
Revenue
Five Year Contribution to Fund Balance
Five Year Payback
$921,250
$836,000
$1,757,250
$900,000
17
ORANGE COUNTY
SPORTSPLEX
Summary
18
By leveraging RFP resources, the combined net contribution to the Funds Balance over
the 5 year CIP period is $3,130,000, however including FY18/19, the total contribution to
the Funds Balance is $4,100,000, which fully pays back the $3,860,000 CIP costs within a
true five vear fiscal horizon.
Sportsplex membership will grow from 4,000 to 5,740 (43.5 %). Combined with
significant new programming revenue, these projects will generate $6,100,000 in
incremental revenues over the 5 year CIP planning period.
Together with existing programming annual Sportsplex revenues will be $5,000,000 and
Annual contributions to the Fund Balance of $1,400,000 can be re- invested in Orange
County recreation and wellness.
State of the Art Recreation, Sport and Fitness Venue featuring Ice, Pools, Turf, Court,
Fitness and Child Development /Care.
Multigenerational community meeting and gathering facility for kids, families and
specialized resources for aging adults and seniors, with 60,000 monthly customer visits
stimulating health, wellness and activity.
Creation of a world class private /public partnership model for multi - generational and
diverse programming all under one roof.
ORANGE COUNTY
SPORTSPLEX
Revenues
Lobby
Mezzanine
Tu rf
Court
Total Income
All Expenses
Contribution to Fund Balance
19
Business Case Summary
199,700 375,420 636,550 938,500 ( *)980,000
( *) Source: (Lobby $200,000); (Mezz $250,000); (Turf $350,000); (Court $180,000)
Results Over 5 Years ( Lobby $1Mil); (Mezz $1.25Mil); (Turf $1.75Mil); (Court $900K)
Add
Add Lobby
Mezzanine
Add Turf
Add Court
FY13/14
FY14/15
FY15/16
FY16/17
FY17/18
312,000
390,000
415,000
420,000
425,000
220,000
368,500
368,500
368,500
629,250
713,000
777,250
324,250
358,250
312,000
610,000
1,412,750
1,826,000
1,929,000
112,300
234,580
776,200
887,500
949,000
199,700 375,420 636,550 938,500 ( *)980,000
( *) Source: (Lobby $200,000); (Mezz $250,000); (Turf $350,000); (Court $180,000)
Results Over 5 Years ( Lobby $1Mil); (Mezz $1.25Mil); (Turf $1.75Mil); (Court $900K)