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HomeMy WebLinkAboutAgenda - 05-23-2013- 1 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: May 23, 2013 Action Agenda Item No. 1 SUBJECT: Continuation of 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): INFORMATION CONTACT: Frank Clifton, County Manager, Attachment A. HVAC Project (919) 245-2305 (Revised CIP page 21) Clarence Grier, Finance and Attachment B. Emergency Services Administrative Services, Substations Project (919) 245-2453 (Revised CIP page 36) Paul Laughton, Finance and Administrative Services, Attachment C. Overall Capital Investment (919) 245-2152 Plan Summary (Revised CIP pages 1-2); County Capital Projects Summary (Revised CIP pages 9- 10); County Capital Operating Impact Summary (Revised CIP pages 11-12) Attachment D. County Debt Service and Debt Capacity 10-year Schedule (To be provided under separate cover at the May 21 regular meeting) Attachment E. Master Plan for Blackwood Farm Park (To be provided under separate cover at the May 21 regular meeting) PURPOSE: To continue review and discussion of the Manager's Recommended FY 2013-18 Capital Investment Plan. 2 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 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 voters in the November 2011 election, and became effective April 1, 2012. The CIP has been prepared anticipating 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. The Manager's Recommended FY 2013-18 Capital Investment Plan was presented to the Board of County Commissioners on March 12, 2013, and follow-up discussion occurred as part of the April 11, 2013 work session and May 9, 2013 budget work session. At tonight's meeting, staff is prepared to review and discuss Sections of the document (Special Revenue Fund - Article 46 Sales Tax), and the Proprietary Funds (Water & Sewer, Solid Waste, and Sportsplex) that were not discussed at the May 9t" work session, and continue discussion of other projects, as needed. The following projects were flagged at the May 9t" meeting for possible changes from the Manager's Recommended project funding, and the revised scenarios are provided for review and further discussion at tonight's meeting. • Attachment A reflects a revised HVAC Project by moving $20,000 from FY 2015-16 (Year 3) to FY 2013-14 (Year 1) for HVAC replacement at Efland Community Center. • Attachment B reflects a revised Emergency Services Substations Project by eliminating the $875,000 in FY 2013-14 (Year 1). • Attachment C reflects updated CIP Summaries based on the above project scenario changes. • Attachment D reflects updated County Debt Service and Debt Capacity tables, based on the above project scenario changes, and reflect Debt Service payment projections over a 10 year period. Past versions of the tables only reflected Debt Service payments over a 5 year period. (Note: to be provided under separate cover at the May 21St regular meeting) • Attachment E is the Master Plan for Blackwood Farm Park. (Note: to be provided under separate cover at the May 21St regular meeting) The following projects were flagged and discussed further at the May 9t"meeting, but no funding changes were made: 3 • Blackwood Farm Park— Year 1 funding of $100,000 remains in the project, but will be used, if needed, for additional analysis of the Blackwood Farm Park project and the Environment and Agriculture Building, instead of design work at Blackwood Farm Park. • Southern Library— Year 1 funding of $600,000 remains in the project and funding remains the same as revised for the May 9t" meeting. • Lands Legacy — Year 2 funding of $2,400,000 remains in the project. • Culbreth Middle School Science Wing — funding remains the same as revised for the May 9t" meeting • Cedar Ridge Auxiliary Gym — funding in Year 2 remains in the project. • Environment and Agriculture Building — funding in Year 5 remains in the project, but this project will be part of additional analysis along with the Blackwood Farm Park project. 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 Operating 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. 0 Total 617,223 1,759,200 298,883 221,383 168,883 168,883 168,883 1,026,916 3,228,340 Project Description /Justification In the absence of compelling reasons to the contrary, geothermal is projected for all HVAC replacement projects recommended in this Plan. While initial costs come at a slight premium over conventional systems, the on -going operational cost savings (30 -35% annually) and the speed at which the premium capital cost is recovered, outweigh the initially more expensive installation. For example, the Justice Facility, whose system has been in use since 2008, is on track to recoup the premium cost by 2016 and is experiencing a 30% savings in annual heating and cooling costs. The Link Government Services Center geothermal project was completed in 2012 and is realizing energy reductions similar to the Justice Center. The Link Center project was partially funded by ARRA grant funds. The system was sized in a manner that will accommodate any future development of the north end of the first floor. The remaining components of the Community Geothermal Project, approved for funding in 2012/13, and currently in the design phase, will serve the remaining facilities on the "East Campus ", including the Jail, District Attorney's office, Historic Courthouse, and the Court Street Annex. Staff will continue to investigate opportunities for grant funding for geo - thermal projects. If grant funds become available, project timelines may move up. UPDATE: The timing of work for remaining east campus buildings has been revised as follows: 1) the well field required to serve the Historic Courthouse, Jail, Court Street Annex and DA Building will be constructed in its entirety; 2) interior work will be completed for all facilities excluding the Jail, for which interior work will be completed following occupancy of the proposed new Jail (2016/17). This will allow interior work at the Jail to be completed at lower occupancy levels; All pricing has been updated to reflect actual costs from Link Center construction. 11/14/2012 update: Geo- thermal to serve the Southern Human Services Center may be included as part of the Southern Campus development project. County Capital Projects - REVISED (5/16/13) Attachment A Fiscal Years 2013 -18 Project Name HVAC Projects Project Status Approved Functional Service Area Governing and Management Starting Date 71112000 Department Asset Management Services Completion Date Ongoing Current Year 1 Year 2 Year 3 Year 4 Year 5 Five Year 6 Prior Years Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Year to Project Budget Funding 2012 -13 2013 -14 2014 -15 2015 -16 2016 -17 2017 -18 Total Year 10 Appropriation Construction /Repairs/Renovations 617,223 Community Geothermal (DA Bid, Jail (wells only), Historic Courthouse, CSA) 1,709,200 Jail (distribution equipmenbsystem only) - 752,400 Efland CC HVAC Replacement 20,000 20,000 Battle Courtroom geo- thermal HVAC 50,000 - SHSC - proposed for geo- thermal replacement - 858,360 Hillsborough Commons - equipment replacement 45,000 30,000 75,000 503 W Franklin (SDC) - equipment replacement 30,000 22,500 52,500 WCOB - backup for cooling system for /T room, c/w notification system 35,000 35,000 Total Project Budget Geothermal 617,223 1,759,200 130,000 52,500 182,500 1,610,760 General Fund Related Operating Costs Personnel Services Operations New Debt Service 168,883 168,883 168,883 168,883 168,883 844,416 1,617,580 Total Operating Costs - 168,883 168,883 168,883 168,883 168,883 844,416 1,617,580 Revenues/Funding Source Transfer from General Fund 617,223 130,000 52,500 - 182,500 General Fund - Debt Service 168,883 168,883 168,883 168,883 168,883 844,416 1,617,580 Available Funds Within the Project Grant Funding ECCBG Debt Financing 1,759,200 - 1,610,760 Total 617,223 1,759,200 298,883 221,383 168,883 168,883 168,883 1,026,916 3,228,340 Project Description /Justification In the absence of compelling reasons to the contrary, geothermal is projected for all HVAC replacement projects recommended in this Plan. While initial costs come at a slight premium over conventional systems, the on -going operational cost savings (30 -35% annually) and the speed at which the premium capital cost is recovered, outweigh the initially more expensive installation. For example, the Justice Facility, whose system has been in use since 2008, is on track to recoup the premium cost by 2016 and is experiencing a 30% savings in annual heating and cooling costs. The Link Government Services Center geothermal project was completed in 2012 and is realizing energy reductions similar to the Justice Center. The Link Center project was partially funded by ARRA grant funds. The system was sized in a manner that will accommodate any future development of the north end of the first floor. The remaining components of the Community Geothermal Project, approved for funding in 2012/13, and currently in the design phase, will serve the remaining facilities on the "East Campus ", including the Jail, District Attorney's office, Historic Courthouse, and the Court Street Annex. Staff will continue to investigate opportunities for grant funding for geo - thermal projects. If grant funds become available, project timelines may move up. UPDATE: The timing of work for remaining east campus buildings has been revised as follows: 1) the well field required to serve the Historic Courthouse, Jail, Court Street Annex and DA Building will be constructed in its entirety; 2) interior work will be completed for all facilities excluding the Jail, for which interior work will be completed following occupancy of the proposed new Jail (2016/17). This will allow interior work at the Jail to be completed at lower occupancy levels; All pricing has been updated to reflect actual costs from Link Center construction. 11/14/2012 update: Geo- thermal to serve the Southern Human Services Center may be included as part of the Southern Campus development project. County Capital Projects (REVISED 05/16/13) Fiscal Years 2013 -18 Attachment B 5 Project Name Emergency Services Substations (3 locations TBD) - 875,000 - Project Status Proposed Functional Service Area Governing and Management Starting Date 7/1/2012 Department Asset Management Services Completion Date 613012020 Current Year 1 Year 2 Year 3 Year 4 Year 5 Five Year 6 Prior Years Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Year to Project Budget Funding 2012 -13 2013 -14 2014 -15 2015 -16 2016 -17 2017 -18 Total Year 10 Appropriation 1,260,000 Total Operating Costs - - - 84,000 84,000 Land /Building 1,260,000 - - - Construction /Repairs /Renovations 50,000 - 875,000 875,000 1,750,000 875,000 Total Project Budget: 50,000 - - 875,000 - 875,000 1,750,000 875,000 General Fund Related Operating Costs Personnel Services Operations New Debt Service - - 84,000 84,000 168,000 1,260,000 Total Operating Costs - - - 84,000 84,000 168,000 1 1,260,000 Revenues /Funding Source Transfer from General Fund 50,000 - General Fund - Debt Service - - 84,000 84,000 168,000 1,260,000 Debt Financing - 875,000 875,000 1,750,000 875,000 Total 50,000 - - 875,000 84,000 959,000 1,918,000 2,135,000 Project Description /Justification Funding for this project would allow construction of three (3) stand -alone new substations for Emergency Services, in response to identified service needs. Cost is for facility and infrastructure and assumes construction on County -owned property. Design will allow for fully enclosing ambulances within conditioned space to increase the longevity of vehicles and on -board equipment and supplies. One facility would be constructed every two years through FY 19 -20, beginning with FY 2015 -16. Locations will be identified as part of the process for facility siting, and may include co- location with cell towers or other County operations in some instances, which could reduce the costs. Funding amounts could change on a site -by -site basis. Orange County Capital Investment Plan- Plan Summary - (REVISED 05/16/13) Attachment C Fiscal Years 2013 -18 Current Year 1 Year 2 Year 3 Year 4 Year 5 Five Year 6 Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Year to 2012 -13 2013 -14 2014 -15 2015 -16 2016 -17 2017 -18 Total Year 10 County Capital Projects Special Revenue Fund (Article 46 Sales Tax) Economic Development Chapel Hill Carrboro City Schools Orange County Schools Proprietary Capital Projects Water & Sewer Utilities Solid Waste Sportsplex Schools Capital Projects Chapel Hill Carrboro City Schools Orange County Schools Total Revenues /Funding Source Available Project Balances Transfer from Capital Reserve Transfer from General Fund - County Transfer from General Fund - W & S Utilities Transfer from General Fund - Schools Transfer from other Capital Projects County Capital Fund Balance Visitors Bureau Fund Balance Solid Waste Fund Balance Sportsplex Fund Balance Recycling - 3R Fee Lottery Proceeds QSCBs Register of Deeds Fees 9 -1 -1 Funds Grants & Contributions User Fees /Donations Article 46 Sales Tax Proceeds Article 46 Sales Tax Reserve Funds 7,708,351 6,036,242 7,478,510 18,109,569 11,068,500 40,191,308 82,884,129 47,329,760 1,300,000 1,319,500 1,339,293 1,359,382 1,379,773 1,400,469 6,798,417 7,215,590 790,500 801,900 813,471 825,216 837,136 849,236 4,126,959 4,441,123 509,500 516,850 524,310 531,882 539,568 547,369 2,659,979 2,862,494 4,811,146 896,250 5,536,000 2,500,000 185,000 150,000 9,267,250 1,000,000 931,208 3,513,936 2,623,992 1,796,554 2,225,730 1,308,072 11,468,284 9,263,952 660,000 710,000 1,175,000 2,150,000 1,210,000 375,000 5,620,000 4,221,038 24,605,782 3,730,742 7,019,146 3,717,815 4,403,855 9,956,579 28,828,137 104,130,625 1,940,417 1,947,918 5,298,179 14,274,223 2,013,424 2,035,917 25,569,661 32,007,177 450,000 164,000 164,000 50,000 1,254,397 1,315,000 1,176,510 887,000 907,000 712,800 4,998,310 5,207,500 420,900 275,000 350,000 150,000 775,000 3,724,849 3,724,849 3,780,722 3,837,433 3,894,994 3,953,419 19,191,417 20,674,606 623,000 425,000 425,000 585,387 3,363,936 722,069 754,119 1,124,726 785,756 6,750,606 4,221,038 660,000 710,000 225,000 250,000 310,000 375,000 1,870,000 345,821 214,055 753,918 1,101,004 522,316 2,591,293 5,042,914 1,321,350 1,353,811 1,353,811 1,353,811 1,353,811 1,353,811 6,769,055 6,769,055 75,000 75,000 80,000 80,000 80,000 80,000 395,000 400,000 716,504 198,000 30,000 228,000 10,000 225,000 300,000 3,412,500 242,500 125,000 4,305,000 3,082,500 - 125,000 2,600,000 2,638,250 2,677,074 2,716,480 2,756,477 2,797,074 13,585,355 14,519,207 185,000 185,000 A 7 (1) Orange County has established three Proprietary Funds used to account for services provided to customers. All three Funds are established as enterprise funds and fees are imposed on customers to pay for the full cost of providing the services. The Water & Sewer Utilities Fund accounts for revenues and expenses related to the provision of sewer service. The Solid Waste Fund accounts for the revenues and expenses related to the provision of solid waste disposal and recycling activities. The Sportsplex Fund accounts for the revenues and expenses related to the services provided at the Triangle Sportsplex. All three funds are included as supplemental information and are not funded by the General Fund. Revised CIP pages 1 -2, 9 -10, 11 -12 Current Fiscal Year 2012 -13 Year 1 Fiscal Year 2013 -14 Year 2 Fiscal Year 2014 -15 Year 3 Fiscal Year 2015 -16 Year 4 Fiscal Year 2016 -17 Year 5 Fiscal Year 2017 -18 Five Year Total Year 6 to Year 10 State Revolving Loan Funds 134,200 621,250 621,250 Financing: Debt Financing - County Capital 4,529,450 3,056,000 5,922,000 13,700,069 9,839,000 38,848,508 71,365,577 38,514,760 DebtFinancing - W &S Utilities 4,256,046 5,186,000 2,500,000 7,686,000 1,000,000 DebtFinancing - Solid Waste 150,000 1,687,868 288,517 2,126,385 DebtFinancing - Sportsplex 950,000 1,900,000 900,000 3,750,000 Debt Financing - E -9 -1 -1 1,003,242 1,003,242 DebtFinancing - Schools Capital 21,500,000 600,000 7,182,792 12,800,794 1,168,474 6,685,266 28,437,326 108,694,141 Total 43.256.904 1 19.473.338 31.807.901 45.264.641 23.862.986 56.813.950 177.222.816 1 208.250.721 (1) Orange County has established three Proprietary Funds used to account for services provided to customers. All three Funds are established as enterprise funds and fees are imposed on customers to pay for the full cost of providing the services. The Water & Sewer Utilities Fund accounts for revenues and expenses related to the provision of sewer service. The Solid Waste Fund accounts for the revenues and expenses related to the provision of solid waste disposal and recycling activities. The Sportsplex Fund accounts for the revenues and expenses related to the services provided at the Triangle Sportsplex. All three funds are included as supplemental information and are not funded by the General Fund. Revised CIP pages 1 -2, 9 -10, 11 -12