HomeMy WebLinkAboutAgenda - 03-11-2014 - 3 1
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: March 11, 2014
Action Agenda
Item No. 3
SUBJECT: Presentation of Manager's Recommended FY 2014-19 Capital Investment Plan
(CIP)
DEPARTMENT: Financial Services PUBLIC HEARING: (Y/N) No
ATTACHMENT(S): INFORMATION CONTACT:
Attachment A. Year 1 (FY 2014-15) Michael Talbert, Interim County
Recommended Projects Manager, (919) 245-2453
Clarence Grier, Financial Services,
UNDER SEPARATE COVER (919) 245-2453
Attachment B. Manager Recommended Paul Laughton, Financial Services,
FY 2014-19 County (919) 245-2152
Capital Investment Plan
Available Electronically
http://oranpecountync.go v/finan
ce/budpet.asp
PURPOSE: To receive the Manager's Recommended FY 2014-19 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. Approval of the CIP commits the
County to the first year funding only of the capital projects; all other years are used as a
planning tool and serves as a financial plan.
Capital Investment Plan — Overview
The FY 2014-19 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.
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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 five (5) new projects in Years 1-5 that were not part of the
FY 2013-18 CIP. These projects include the following:
Cedar Grove Community Center Library Kiosk — includes $180,000 in Year 2 (FY 2015-16) to
provide patrons an automated material kiosk at the Cedar Grove Community Center providing
24 hour electronic access for checking in and out materials.
Parking Lot Improvements — includes repair, resurfacing, and/or replacement of asphalt and
concrete parking areas, including necessary curb and gutter systems at the following locations:
$120,000 in Year 2 (FY 2016-15) at 501/503 W. Franklin Street; $510,000 in Year 4 (FY 2017-
18) at Link Government Services Center/Annex and the District Attorney building; and 3
additional properties ($2,750,000 in Years 6-10).
Life Safety — ADA — provides $25,000 in Year 1 (FY 2014-15) for the installation of automated
access doors at West Campus and the Seymour Senior Center; $25,000 in Year 2 (FY 2015-
16) for fire alarm system improvements/replacement at the Historic Courthouse; $60,000 in
Year 5 (FY 2018-19) for elevator improvements at the Historic Courthouse; and additional fire
alarm system design and installation at 4 locations ($65,000 in Years 6-10)
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. For Year 2 (FY 2015-
16), $3,025,000 is recommended, which represents the County's 43% share of the Sewer
Concept Plan costs to serve 86 parcels.
Park and Recreation Facility Renovations and Repairs — provides funding each of Years 1-5 for
the scheduling of planned renovations and repairs to facilities; a total of $900,000 is included
over these five years.
The County Capital section also includes two (2) new projects in Years 6-10 that were not part
of the FY 2013-18 CIP. These projects include the following:
Main Branch Library Remodel— the need for an upfit and re-design of the Main Branch Library
was identified both in the County Space Needs Study and the 2012 Community Needs
Assessment portion of the Library's strategic plan. To accommodate current and future users,
the library must make better use of the existing space by focusing on maximizing its flexibility
and adaptability. Includes a total of $1,200,000 in Years 6-10 for design, construction, and
equipment/furnishings.
Court Street Annex — includes $100,000 in Years 6-10 for the replacement of the main
distribution panel and electrical circuits throughout the building to meet modern standards.
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Other Major County projects include the following:
Cedar Grove Community Center— includes $2,000,000 in Year 1 (FY 2014-15) for construction
and adaptive reuse of the former Northern Human Services Center. Final Board decisions
regarding use or disposition of the classroom wings will determine the finalized design and cost
estimates for the project.
Southern Orange Campus (Future Planning) — Design services of $400,000 are included in
Year 1 (FY 2014-15), with site development infrastructure work of $3,600,000 in Year 2 (FY
2015-16) 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 included in Year 3 (FY 2016-17) for this expansion, which
includes a Dental Clinic.
Southern Branch Library — funding of $600,000 was approved in FY 2013-14 for possible land
purchase; Design and engineering work of $525,000 is included in Year 2 (FY 2015-16), and
construction costs of $7,000,000 and $755,000 in equipment and furnishings are included in
Year 3 (FY 2016-17). Note: this project moves up one year from the current CIP.
Proposed Jail — total project costs of $30,000,000, with site related planning costs of $500,000
recommended in Year 2 (FY 2015-16), architectural/engineering costs of $500,000 in Year 3
(FY 2016-17), with the construction of a new 250 bed jail recommended in Year 4 (FY 2017-18)
at an estimated cost of$29,000,000.
Emergency Services Substations - funding for this project will enable the construction of 4 new
co-built EMS stations and 2 stand-alone substations in geographical areas across the County
that will help reduce response times, which averaged 9:45 at the end of 2013. Year 2 (FY
2015-16) includes $1.2 million for 2 co-builds, one with the Town of Chapel Hill in the Glen
Lennox area, and one with the Town of Hillsborough in the Waterstone development area.
Year 3 (FY 2016-17) includes $1.2 million for 2 additional co-builds, one with the Town of
Chapel Hill in the Weaver Dairy/Martin Luther King area or Franklin Street/Elliott Road area,
and one with the Town of Hillsborough in a northern location yet to be identified. Also, includes
$1.5 million in Year 5 (FY 2018-19) and in Years 6-10 for stand-alone substations. Note: there
is a map of the current and proposed substations included in the CIP document.
Blackwood Farm Park — includes $147,400 in Year 1 (FY 2014-15) for amenities such as trail
construction, parking, restrooms, dock, signage, disc golf, and security cameras. Park
construction is included in Year 4 (FY 2017-18), with $5.6 million for the construction of an
Agricultural, Environment, and Parks Center, including a permanent parks operations base,
included in Years 6-10, pending final decisions from the Board regarding the Space Needs
Analysis Study.
Eurosport Soccer Center (Phase 11) — This represents an investment in the current facility, with
$141,000 included in Year 1 (FY 2014-15) for restrooms and other current facility
improvements; $425,000 in Year 3 (FY 2016-17) for possible land acquisition for future
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expansion; and $4.6 million in Years 6-10 for the construction of new artificial turf fields,
parking, restrooms/equipment building, equipment, and stormwater controls.
Lands Legacy Program — includes $2.4 million over a two-year period ($400,000 in Year 1 and
$2,000,000 in Year 2) for continued conservation and protection of the County's most critical
natural and cultural resources. Note: Prior 2001 Bond authorization of $2.4 million lapsed in
2010, so new financing is recommended in Years 1 and 2.
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 3 (FY 2016-17), with Park
construction funds of $6,400,000, including a soccer field complex, walking trails, and other
amenities, in Year 4 (FY 2017-18). Note: this project has been pushed back two years from
the current CIP to be consistent with the Town's Parks and Recreation Master Plan.
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 2013-14, proceeds are
estimated at $2,732,000, 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:
Buckhorn Economic Development District (EDD) — Phase 2 Extension (Efland Sewer to
Mebane) - reflects funds of $4,300,000 in Year 1 (FY 2014-15) for construction of this project;
this represents an increase in previous anticipated costs due to revised estimates for design
and construction; this continues to fit into the long range strategy to ultimately turn over the
operation of the Elfand sewer system to the Town of Mebane.
Hillsborough EDD - reflects funds of $150,000 in Year 1 for design and easement purchase,
and $1,000,000 in year 2 (FY 2015-16) for construction of water and sewer infrastructure in this
EDD. Note: this project has moved up several years due to projected growth and economic
activity in the Hillsborough EDD area.
Eno EDD - includes $1,750,000 in Year 5 (FY 2018-19) for the construction work in this EDD.
Note: based on recent feasibility studies to provide sewer service to this area, this project has
been pushed back several years from the current CIP.
Buckhorn-Mebane EDD Phases 3 and 4 - includes $2,500,000 in Year 3 (FY 2016-17) for the
Buckhorn-Mebane Phases 3 and 4 construction projects. Note: this project has been moved
back one year from the current CIP to allow for the completion of Phase 2 prior to starting
Phases 3 and 4.
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The Water & Sewer section also includes two (2) new projects in Years 1 and 2 that were not
part of the FY 2013-18 CIP. These projects include the following:
Economic Development Infrastructure — this project reflects the FY 2013-14 funding of
infrastructure for the Morinaga Company, which consists of design for the extension of water,
sewer and roadway infrastructure to the site from surrounding existing utility system and
construction of the water and sewer extension. This project is funded by $250,000 from Article
46 Sales Tax proceeds, and $750,000 in CDBG funds. This new project also includes $50,000
in Year 1 for EDD zones right-of-way-accesses, and $50,000 in Year 1 for public-private
participation in EDD zones and rural broadband related access.
Economic Development Utility Extension Project(s) — provides funds of $250,000 in Years 1 and
2 for future economic development projects that are currently being considered, but have not
been finalized. If no project develops in the coming year, which requires utility extension, the
funds would be available for future years as needed.
Solid Waste:
Sanitation - includes funds of $2,428,283 in Year 1 (FY 2014-15) for Solid Waste Convenience
Center (SWCC) improvements at the Eubanks Road site (the cost has increased by
approximately $1.1 million from the current FY 2013-18 CIP due to the movement of the scale
house operations and associated site improvements, extending water and sewer to the site,
additional stormwater structures, purchase of two additional stationary compactors, and a larger
household hazardous waste building). Year 1 also includes $206,944 for the replacement of a
Hook Lift truck; Year 2 includes $495,000 for SWCC improvements at the High Rock Road site;
and Year 3 includes $340,000 for SWCC improvements at the Ferguson Road site. Years 6-10
includes $212,028 for SWCC improvements at the Bradshaw Quarry site.
Recycling Operations — the current FY 2013-14 includes the purchase of 2 rural curbside trucks
and the purchase of 19,500 urban recycling carts, at a total cost of $1,602,139. Year 1 (FY
2014-15) provides for the purchase of 7,000 rural carts, as well as the replacement of two
trucks. Year 2 (FY 2015-16) provides for the purchase of 2,000 additional rural carts.
Note: the Solid Waste Management Department has instituted a re-build program for its heavy
pieces of equipment (not trucks) rather than being replaced. Re-building, or overhauling, is
significantly less expensive than replacing with new equipment, thereby extending its life and
reducing costs. Results of this re-build program are reflected in reduced equipment costs
shown in the CIP, when compared to the current CIP.
SportsPlex— includes funding in Year 1 (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. Year 2 (FY 2015-16) includes funding of $1,900,000 for a new building
addition that would house an indoor turfed field for soccer, lacrosse, senior walking, running,
Kidsplex functions, and youth/adult flag football leagues. A second new building addition
includes funding of $900,000 also in Year 2 for a second new building addition that would
house a regulation sized high school/college basketball court, including bleacher seating, for
youth and adult basketball leagues, court based fitness programs, volleyball, and Kidsplex
activities. Projected revenue from these new projects would generate enough funds to cover
the additional annual debt service needed for these projects.
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School Projects — Highlights
Chapel Hill-Carrboro City Schools — Based on the Schools Adequate Public Facilities Ordinance
(SAPFO) most recent November 15, 2013 projections, the following new schools/additions
would be needed: Middle School #5 to open in FY 2020-21; Elementary #12 to open in FY
2020-21; and Carrboro High School Additions to open in FY 2023-24, and these funding
impacts are reflected mostly in Years 6-10. Pay-As-You-Go (PAYG) funds are estimated 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 — Based on the SAPFO's recent November 15, 2013 projections, the
following new schools/additions would be needed: Elementary #8 to open in FY 2023-24; and
Cedar Ridge High School Classroom Addition to open in FY 2022-23. 1.5% annual growth in
PAYG funds and constant Lottery Proceeds are assumed throughout the 5-year CIP period.
Note: Funds to address both school systems' Facilities Assessment Report needs are not
included in the Recommended CIP. The Reports reflected needs totaling approximately $330
million for both school systems. The size and timeframe of a future Bond Referendum and/or
Alternative Financing that could possibly address facility needs has not yet been decided by the
Board of Commissioners.
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 the
15% Debt Service Policy throughout the 5-year CIP period, but given the funding scenarios
currently in the CIP for Years 6-10, it would reach 15.44% in Year 6 (FY 2018-19) and rise to a
high of 19.15% in Year 8 (FY 2021-22).
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 26, 2014.
FINANCIAL IMPACT: There is no immediate financial impact associated with the presentation
of the FY 2014-19 Capital Investment Plan. It is a long-range financial planning tool with a
financial impact in FY 2014-157 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 receive the presentation of the
Manager's Recommended FY 2014-19 Capital Investment Plan and provide direction to staff in
preparation of the April 10, 2014 Budget work session.
Attachment A 7
Orange County CIP -Year 1 (FY 2014-15) Recommended Projects
Fiscal Years 2014-19
Fiscal Year
2014-15
Appropriations
County Capital Projects:
Cedar Grove Community Center 2,000,000
Southern Orange Campus(Future Planning) 400,000
HVAC Projects- Geothermal 202,500
Roofing Projects 179,010
Information Technology 500,000
Register of Deeds Automation 80,000
Life Safety-ADA 25,000
Viper Radio System 500,000
Communication System Improvements 122,000
Blackwood Farm Park 147,400
Conservation Easements 250,000
Eurosport Soccer Center Phase ll 141,000
Lands Legacy 400,000
New Hope Preserve/Hollow Rock Public Access 125,000
Facility Renovations and Repairs 256,500
Total County Projects $ 5,328,410
Special Revenue Fund(Article 46 Sales Tax)
Economic Development:
Debt Service on Infrastructure 836,490
•Buckhorn EDD Phase 2
•Buckhorn-Mebane EDD Phase 3&4
•Efland Sewer Flow to Mebane
Infrastructure (Utility Service Agreement w/Mebane) 50,000
Collaborative Outreach 20,000
Small Business Loan Pool 200,000
Collateral Materials 20,000
Innovation Centers 100,000
—Launch Chapel Hill"Incubator
Agricultural Economic Development 60,000
Business Investment Grants 100,000
Total Economic Development-Article 46 Sales Tax $ 1,386,490
Chapel Hill Carrboro City Schools:
Technology-Student Access Computing Devices 426,345
Facility Improvements at Older Schools 426,345
Total Chapel Hill-Carrboro City Schools $ 852,690
Orange County Schools:
Technology- 1:1 Initiative (District-wide) 533,800
Total Orange County Schools $ 533,800
Total Article 46 Sales Tax $ 2,772,980
Attachment A $
Proprietary Capital Projects
Water&Sewer Utilities:
Economic Development Infrastructure 100,000
Economic Development Utility Extension Projects 250,000
Efland Sewer Flow to Mebane 4,530,000
Hillsborough EDD 150,000
Total Water&Sewer $ 5,030,000
Solid Waste:
Sanitation -SWCC Improvements(Eubanks Rd), Truck replacement 2,635,227
Recycling Operation-Purchase of Rural carts;2 Truck replacements 814,059
Total Solid Waste $ 3,449,286
Sportsplex:
New Facilities Projects:
Major Expansion-Phase 1 (Pool Mezzanine) 950,000
Pool wall reglaze 125,000
Tilt up Panel(exterior wall system) 100,000
Total Sportsplex $ 1,175,000
Schools Capital Projects
Chapel Hill Carrboro City Schools:
Long Range Capital:
Pay-As-You-Go Funds 2,290,782
Lottery Proceeds 828,944
Total $ 3,119,726
Orange County Schools:
Long Range Capital:
Pay-As-You-Go Funds 1,434,067
Lottery Proceeds 507,336
Total $ 1,941,403
Total School Projects $ 5,061,129
Total Appropriations $ 22,816,805
Revenues/Funding Source
Transfer from General Fund- County 1,218,810
Transfer from General Fund- W&S Utilities
Transfer from General Fund-Schools 3,724,849
Transfer from Other Capital Projects 207,600
Solid Waste Fund Balance 643,003
Sportsplex Fund Balance 225,000
Lottery Proceeds 1,336,280
Register of Deeds Fees 80,000
Grants& Contributions 250,000
Grants-Solid Waste Fund 75,000
Article 46 Sales Tax Proceeds 2,772,980
Article 46 Sales Tax Proceeds- Water&Sewer 500,000
Financing:
Debt Financing- County Capital 3,572,000
Debt Financing- W&S Utilities 4,530,000
Debt Financing-Solid Waste 2,731,283
Debt Financing-Sportsplex 950,000
Attachment A 9
Total Revenues $ 22,816,805