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Home My WebLink AboutAgenda - 11-02-2006-8aORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: November 2, 2006 Action Agenda Item No. ~-p SUBJECT: Public Hearing and Consideration for Approval: Expanded County Campus Proposal DEPARTMENT: Purchasing/County Attorney/ PUBLIC HEARING: (Y/N) Yes Budget/ Finance ATTACHMENT(S): Site Plan Renderings of Buildings Agreement of Intent October 11, 2006 Memorandum from Budget Director Regarding Capital and Debt Related Matters INFORMATION CONTACT: Pam Jones (919) 245-2652 Geoffrey Gledhill (919) 732-2196 Donna Coffey (919) 245-2151 Ken Chavious (919) 245-2453 PURPOSE: To receive public input regarding the development of an expanded county campus in downtown Hillsborough; to approve and authorize the Chair to sign an Agreement of Intent to purchase the Project as defined in the Agreement of Intent; to lease with option to purchase the Auxiliary Project as defined in the Agreement of Intent; and to exempt the professional design services and construction manager at risk contracts from the qualifications- based selection process. BACKGROUND: In 2000, the County prepared an analysis of countywide departmental space needs through the year 2020. The study, updated in 2004, reinforced the need for additional space in several areas. The recommendations included the need to create a new or expanded county campus in Hillsborough. The Board Chair and Vice-chair have been meeting with staff to develop recommendations for solutions to the countywide departmental space needs. Their work is nearing completion and final recommendations for the group will be presented during fihe Board's worksession on 11/9. The recommendations include the need to expand the existing county campus in Hillsborough. Recently George Horton, a local developer, approached the County with a proposal to expand the County's downtown Hillsborough campus with new buildings roughly adjacent to the existing County courthouse, jail and office complex rather than to create a new campus at a separate location. This allows the County to utilize existing campus buildings and to promote walkability among County facilities while adding the needed space as indicated by the earlier studies. The Site The project site is located on the old Southern States property, the Gateway building property and several other parcels. Combined, the project sits on parcels of land totaling approximately 3.35 acres located at the southern edge of the Historic District of Hillsborough. The combined parcels will have access to the proposed new Nash &Kollock Street to the south, Churton Street to the east, and Margaret Lane to the north. The site is predominantly clear of trees and has 20 feet of fall from the north to the south of the property. The proposed Gateway Center will be constructed in the southeastern corner of the property at Churton and Nash &Kollock Street. This intersection will be signalized as a part of this project and synchronized with the existing signals on Churton Street. Traffic Impact Studies, performed by SEPI Engineering, Inc, an outside consultant employed by~the builder, have allowed implementation of determined traffic storage needs for left and right turns in the approved Gateway plans. The attached Agreement of Intent outlines the project components as follows: The Project Phase 1 -Two-story public library (23,454 sf) to be purchased by County to be located on the land identified as Orange County PIN 9874051759. Phase II -Three-story office building (46,716 sf) to be purchased by County to be located on the land identified as Orange County PIN 9874051759. Phase III -Parking facility with 134 spaces licensed exclusively to County and a minimum of 201 to be~ retained by Telesis Construction Management (TCM) to be located on the land identified as Orange County PINs 9874051759, 9874052643 and 9874053603. Although yet to be finalized, the general look of the exterior of the office and library buildings is reflected in the attached renderings. The Auxiliary Project The Gateway Center Building (a condominium) to be located on the land identified as Orange County PINs 9874054586, 9874054682, 9874053673 and 9874053450. Floor 1 (11,423 sf) to be purchased by Weaver Street Market. Floors 2 (11,423 sf) and 3 (11,423 s.f.) and 41 additional Project Parking facility parking spaces -- available for lease by County for 366 days with an option to purchase at the end of the lease period at a previously agreed upon price (see page 5). A rendering of the Gateway Center, as approved by the Town of Hillsborough, is attached. Sustainable Design Elements Consistent with ,the County's policy to design buildings in keeping with sustainable design elements presented in the Triangle J-High Performance Building Standards, the County has included several sustainable design elements in the current design of the building: • Day-lighting through the use of windows around the perimeter of the building. Potentially, light tubes may be used to lighfi interior spaces on the upper floor. • Low water use toilet facilities, including waterless urinals. • Energy-efficient systems design for HVAC equipment, including high-efficient pumps, motors and fuel-burning equipment. • Use of grey water (cisterns) for flushing and irrigation. 2 • Potential use of motion sensors and automatic cut off devices for sinks, lavatories and toilets. • T-8 energy efficient florescent lights. • Compact florescent fixtures in lieu of incandescent fixtures. • Use of motion sensors in lieu. of switches for lights. Additional sustainable elements may be bid as alternatives during the construction process as the County chooses. While these are elements that are added into the building construction, environmental considerations were given equal attention during the siting of the building. For example: • The site provides County employees and those availing themselves of County services the opportunity to walk to and from other downtown county campus buildings, restaurants, the proposed Weaver Street Market, retail stores, a hardware store, a pharmacy, and to otherwise avoid the use of their cars during the work day. It also connects to the proposed "Riverwalk", a Town trail system that will be adjacent to the new complex and accessible by a short walk; and • The development of the site will include a stormwater control system to detain the storm runoff to preconstruction conditions. In addition, the controls will filter the water to remove nitrogen contents prior to releasing back into the natural hydrology (especially important because of the proximity of the properties to the Eno River). This will be accomplished by underground sand filtering and storage. Collected water will be reused; and • By using multi-story buildings, the size of the footprint and the amount of land disturbance is minimized. Use of the Space Space Study recommendations will be presented to the Board of Commissioners during a work session on November 9. The preliminary recommendations achieve consolidation of land services departments including Planning and Inspections, Environmental Health, Register of Deeds, Land Records/GIS, Tax Assessor, Revenue, County Engineer and Economic Development to the Gateway and County office buildings. The Personnel Department- will also be relocated to these facilities. The main Library will be relocated from the Whitted Building. County Commissioners will discuss allocation options for the new space as well as the options for backfilling the vacated space during the November 9 work session. Construction Manager at Risk (CM at Risk) Contracting The Project would be constructed by Telesis as a Construction Manager at Risk (CM at Risk) to the County. Under this construction method, the CM at Risk constructs the project for the .County while observing the public bidding requirements as the law dictates. The Legislature authorized use of CM at Risk for local governments in 2001. Several local governments have utilized this method of contracting with success. Dare County, for example, recently completed its new Justice Facility via a CM at Risk contract. In the case of the Project, use of a CM at Risk contract meets the needs of Telesis in constructing the space, while facilitating an extraordinary opportunity for the County to meet its long-term space needs. Orange County is currently employing the CM at Risk concept in developing the Central Orange Senior Center. The CM at Risk method of contracting (G.S. 143-128.1) requires that the public owner contract directly with the design professionals.. The design professionals associated with this project include the following: 4 Architect: (1) Brockwell Associates, Inc. (Durham, NC). (2) Library space planner to design interior of Library building. This firm will be chosen in tandem with Telesis for design of library interior. The cost of the interior space planner for the library will be in addition to project costs cited herein. Structural Engineers: Gardner & McDaniel, PA (Durham, NC). Mechanical/PlumbinglElectrical Engineers: Engineered Designs, Inc. (Raleigh, NC). Civil Engineers (including planning/surveying): Summit Consulting Engineers, PLLC (Hillsborough, NC). The architects and engineers cited above have a demonstrated ability to carry out the Project and will work well with Telesis. Further, the aggressive timeline that is necessary in order to accomplish the Project can be maintained by utilizing the design firms that have worked on the concept plan for the Project. For these reasons, the County Commissioners are requested to exempt the Project from the qualifications-based selection process as allowed by G.S. 143-64.32. The Auxiliary Project (The Gateway Center) will be constructed by Telesis and condominiumized by Telesis. Once the Gateway Center is complete, the County will lease for a year and one day a condominium consisting of the top two floors of the building and the use of 41 additional parking spaces in the parking deck that is part of the Project. The County will have, at the end of the lease period, the option to purchase what it will lease at a predetermined price. Development Timeline The Auxiliary Project has already received regulatory approvals by the Town of Hillsborough and will move forward quickly. The developer intends to begin construction of the Gateway Center within the next few weeks, with completion anticipated by November 2007. The Project, which includes the office building, library building and parking deck will begin after regulatory approval from the Town has been received. The current anticipated completion date for the Project is May 2008. The County, in partnership with Telesis, will program the interior of the buildings to accommodate the needs of the specific occupant departments. FINANCIAL IMPACT: Annual Operating Costs The County would lease the Auxiliary, Project, with scheduled completion in late 2007, for a period of one year at a cost of $47,120 per month, the equivalent of $24.75 per square foot (annual cost of $565,440 spread over fiscal years 2007-08 and 2008-09). During the lease term, the County would determine whether to proceed with the purchase of what it was leasing at the end of the lease term. In addition, the Developer will assess annual parking deck mainfienance fees at $65 per space, subject to annual CPI adjustment: These fees, anticipated to begin at the completion of the project, would be included in the 2008-09 fiscal year budget at a projected cost of $11,375. 4 Capital Related Costs The fixed cost to purchase the Project, which includes the office building, library, and space for citizens and staff at the parking facility, stands at $17,939,079, while the Auxiliary Project has a price tag of $5,490,449. Debt issuance plans discussed and endorsed by the Board on September 14, 2006 contemplated the issuance of $25 million for a County Campus and Library project. However, the issuance dates based on the Agreement with Telesis require that funding for purchase be provided earlier than originally discussed. Staff have had conversations with the Local Government Commission staff (LGC) regarding funding options that the County may exercise in order to: 1) maintain the County's self-imposed limit on annual debt service payments to no more than 15% of annual General Fund expenditures; 2) assume no more than a 7% growth rate in annual General Fund expenditures; and 3) ensure that future debt capacity is sufficient to meet upcoming County and School capital needs, while taking advantage of this extraordinary opportunity to meet many of the County's long-term space needs. There are a variety of viable funding options available. The option that will ultimately be pursued is contingent upon the timing of the delivery of the various components of the Project and the Auxiliary Project. As project timelines for the Project and the Auxiliary Project, as well as other projects that the Board has endorsed for additional debt financing become more defined, staff will provide updated debt issuance schedules and other relevant information to the Board for its consideration. As a point of reference, full year debt service payments (principal and interest) associated with borrowing $25 million at 6 percent annual interest rate over 20 years range from $2.9 million in the first year to $643,750 for the final payment. Financial impacts in future fiscal years would depend on actual timing of debt issuances and structure of payback. The October 11, 2006 memorandum from the Budget Director included as an attachment to this agenda abstract provides additional financial information related to County capital and debt related matters. RECOMMENDATION(S): The Manager recommends that the .Board receive public input regarding the Project and the Auxiliary Project; exempt the professional design services and Construction Manager at Risk contracts from the qualifications-based selection process as allowed by G.S. 143-64.32; and approve and authorize the Chair to sign the Agreement of Intent. 6 THE SITE 1.UliiiARET VANE ~ I ~~~ i ~ ~ ~_- ~'~ i I ` -~' 4 ~ I I ( -;n i __ _..... __ 2 I m + ~ -1 ~ ~ i ~ ~ = 1' _ !' - _ '~$~~ ~' ~ ,_ ~~ --- ,.._.. ~.- -~ _ ~ _1 /ti ~~,. t __ _. ... 111 ;~re'~minary S;-e roan;~er Orange Ccurt~ Co;-;~Iex 7 THE GATEWAY CENTER ~_ ~. ,.. Q ;. ;. .,, ~~ j ' ~: -, !~ ( ~ ~° ~ .-..- ~,..'. ~ ~~ ti.", i.:µ4 .. ,- , ~ - ~- ;- ~orrF: ~~E~~.arro~ ,:s-~,~-,- .THE PUBLIC LIBRARY THE OFFICE BUILDING 10 NORTH CAROLINA ORANGE COUNTY AGREEMENT OF INTENT This Agreement of Intent for Construction Management at Risk Services and for Purchase and Sale as to the Project (as hereinafter defined) and for Lease and Option to Purchase as to the Auxiliary Project (as hereinafter defined) is made and entered into as of this day of , 2006, by and between Telesis Construction Management, LLC, 1000 Corporate Drive, Suite 109, Hillsborough, NC 27278, a North Carolina Limited Liability Company ("TCM") and Orange County, North Carolina, P.O. Box 8181, Hillsborough, NC 27278, a body politic and corporate ("County") RECITALS A. "TCM" is a contractor, licensed to do business in the State of North Carolina and qualified to perform the construction manager at risk services described in this Agreement in full compliance with North Carolina law. B. TCM owns or will own certain Property described herein by Orange County PIN upon which TCM will, as described herein, assist with the design and manage the construction of certain improvements (together with the Property, the "Project"). C. County desires to contract with TCM and other professionals identified herein for the design, construction management and construction of the Project that is described herein. D. County desires to purchase as specified herein from TCM, and TCM desires to sell and convey to County, the Project in the manner described herein. 11 E. County also has an interest in leasing the second and third floors of the adjoining Gateway Center Building (a condominium) and, in obtaining an option to purchase the same for a sum certain (the "Auxiliary Project"). NOW, THEREFORE, in consideration of the premises, the mutual promises and agreements hereafter set forth, the parties hereto agree that the following are the material terms upon which County and TCM will contract for the design, construction management and construction of the Project and upon which County and TCM will purchase and sell the Project, including the buildings and associated property rights. Project. (including public and private elements): Phase I -Two story public library (23,454 sf) to be purchased by County to be located on the land identified as Orange County PIN 9874051759. Phase II -Three story office building (46,716 sf) to be purchased by County to be located on the land identified as Orange County PIN 9874051759. Phase III -Parking facility with 134 spaces licensed exclusively to County and a minimum of 201 to be retained by TCM to be located on the land identified as Orange County PINs 9874051759, 9874052643 and 9$74053603. 2. Design Professionals. Architect: (1) Broclcwell Associates, Inc. (Durham, NC). (2) To be determined by County and TCM for design of library interior. Structural Engineers: Gardner & McDaniel, PA (Durham, NC). Mechanical/Plumbing/Electrical Engineers: Engineered Designs, Inc. (Raleigh, NC). Civil Engineers (including planning/surveying): Summit Consulting Engineers, PLLC (Hillsborough, NC). -2- 12 l . 3. Project Construction Method. Construction management at risk contract. (G.S. §143-128(al)(4)). 4. Construction Manager at Risk. TCM to contract with the County as provided in G.S. §143-64.31. TCM: (1) will provide construction management services for the Project throughout the preconstruction and construction phases, and (2) will guarantee the cost of the Project will not exceed the budgeted Project Cost of $17,939,079. ~ This guaranteed Project Cost will be adjusted in the event (1) ,the County introduces any changes to the scope of the work envisioned by TCM and the design professionals2 or (2) TCM is delayed in the commencement of construction by reason of the public bid process or by reason of matters reasonably beyond TCM's control. TCM remuneration: retention of private elements and the amount by which the budgeted Project Cost exceeds actual Project Cost incurred. 5. TCM Construction Method. TCM will publically advertise, prequalify and accept bids on a single prime basis from licensed general contractors. TCM and the County will develop mutually agreeable prequalification criteria including, but not limited to: 1This sum to be reduced by those portions of the contract balances remaining to be paid to design professionals whose contracts must be assigned to the County pursuant to G.S. §143-64.31. 2The Project budget contemplates that TCM will deliver a shell and the upfitted space, the latter as specified by the County. The Project budget includes an upfit allowance of $35/ft2 for the office building interior and an upfit allowance of $55/ft2 for the library interior. The Project Cost will be adjusted to the extent the office building and library interiors upfit costs exceed the budgeted office building and library interior allowances contained in the guaranteed Project Cost: The interior upfit costs shall be identified in the bid documents and the cost to upfit the interiors shall be identified in the construction bid(s). -3- • construction quality history. • experience and performance history. 13 • ability to complete each element of the Project within its respective Contract Time. • ability to complete the entirety of the Project within the budgeted Project Cost. ' • cost of construction oversight. • financial stability. • stability of principal subcontractors (electrical, mechanical, plumbing, framing, masonry, sitework). • bonding capacity and rating of surety. • value engineering experience. • minority business participation plan in compliance with G.S. 143-128.2. • amenability to contracting pursuant to modified AIA Contract Documents to be prepared by TCM. TCM will require the single prime general contractor to furnish 100% performance and payment bonds which name TCM's construction lender, TCM and the County as joint obligees. TCM will reserve the right to withdraw from the Project without penalty or liability in the event TCM determines, in its discretion, that the lowest responsible, responsive bidder is nonetheless unacceptable to TCM. 6. Project Completion Schedule. Office building/ library/parlcing facility) substantial completion 05/2008 Closing of purchase of office building and library 05/2008 Licensure of parking spaces to County 05/2008 -4- 14 7. Takedown Schedule and Requirements. 05/08 Office building/ library and associated parcels of land $17,939,079 05/08 Parking facility $1.00/year plus prorated annual maintenance cost pass- through.3 8. Auxiliary Project. a. Profile. Gateway Center Building (a condominium) to be located on the land identified as Orange County PINS 9874054586, 9874054682, 9874053673 and 9874053450. Floor 1 (11,423 sf) to be purchased by Weaver Street Market. Floors 2 (11,423 sf) and 3 (11,423 sf) and 41 additional Project Parking facility parking spaces -- available for lease by County for 366 days with an option to purchase at the end of the lease period. b. Auxiliary Project Completion Schedule Gateway Building substantial completion 11/2007 41 additional licensed Project Parking facility parking spaces 5/2008 c. Takedown Schedule and Requirements. Lease: 3In 2006 dollars, estimated to be $65.00 per space. -5- 15 11/2007 Lease of Floors 2 and 3 24.75/ft $47,120/ month 5/2008 41 additional $1.00 for Project Parking facility parking balance of spaces Lease term plus prorated annual maintenance cost of pass through. If option to purchase exercised: 11/08, Floors 2 and 3 of condominium 11/08 41 additional Project Parking facility parking spaces 22,846 sf. $ 5,490,449 9. Contin eg ncies. $1.00/year plus prorated annual maintenance cost pass through. Successful assignment to County of Design Professional Contracts between TCM and the Design Professionals. TCM's completion of all contemplated transactions with Weaver Street Market. Land use approvals by Town of Hillsborough. Satisfaction of construction loan underwriting criteria of TCM lender. LGC and underwriting approval of debt structuring of Orange County debt so that it complies with Orange County's policies of 15% of General Fund Budget debt service payments and 7% annual growth of General Fund Budget. Execution and delivery of Contract Documents mutually agreeable to TCM, the single prime general contractor, the contractor's surety, TCM's construction lender, the County and the County's lender, if necessary. -6- 16 No violation of law (including environmental) with respect to the Project, the Auxiliary Project or any portion of either shall exist as of the date of lease and as of the date of sale closing of either or any portion of either. The obligations of the parties to this Agreement as described in this Agreement are expressly subject to, and contingent upon the execution of all necessary further Agreements, in form and substance acceptable to the parties, in the sole and absolute discretion of each. The parties agree to promptly and in good faith negotiate the terms and conditions of all necessary further agreements. By: ATTEST: Donna S. Balser, Clerk to the Board of Commissioners By: ,ATTEST: ORANGE COUNTY, NORTH CAROLINA Barry Jacobs, Chair, Orange County Board of Commissioners Telesis Construction Management; LLC George A. Horton, III, Member/Manager -7- To: Board of County Commissioners Rod Visser, interim County Manager From: Donna Dean Coffey, Budget Director Re: Capital and Debt Related Matters Date: October 11, 2006 The attached materials are offered as additional information that will hopeful{y clarify lingering questions about capital and debt related materials that you received ducjng August and September. Pages 1 through 3 of this memo surnrnarize staffs understanding of capital and debt-related actions and endorsements that the Board has made since the beginning of the fiscal year. Page 4 offers a guide for understanding the Annual Debt Service Gapacit}r and Tax Rate impact spreadsheet (page 5). Fee! free to contact me if there are questions or if my understanding of the Board's recent actions differ from yours. Background Information Orange County's major funding sources far school and County capital projects include pay-as-yau-go monies (examples include dedicated sales and property taxes, school construction impact fees and Public School Building Fundsj and debt financing. The County has several capital•related policies in puce that govern planning and funding capital projects and debt management. Recently the Board has focused discussions on school and County capital projects that require funding beyond the amount of money that pay-as-you-go resources generate - i.e. projects that require debt financing. Most recent discussions have centered around "affordability" -what capital projects can the County afford to fund with respect to debt service as well as on-going annual costs? The August 31 BOCC Work Session was the first step in providing a picfure of what the County could afford with regard to funding capital and operating costs of future County and School capital projects. Therefore, materials prepared for that work session offered a wholisttc view of total amounts of debt that the County could afford in future years without regard to individual project timelines or cash needs. At the August 31 Work Session, the Board provided direction regarding specific projects_ That direction allowed staff to take the next step and project specific cash flaw requirements and funding needs far individual projects with face value debt of $92.Z million that the Board wished to pursue over the next three or so years. Chart 1idenGfies those projects. The outcome of that step was the Capital and Debt Work Book presented at the September 14, 2006 work session. In addifian to providing historical data, the work book also offered financial data including projected annual costs (including debt service and tax rate impacts) for individual school and county projects. 10/11/06 17 Page 1 of 5 18 10/11106 Proposed ScheduIo of County and School Capital Project Debt Issuances (Alphabottcal Order by Project Titlei Fall 2006 through Spring 2009 osed ~o BOCC Endorsed Project Totai Chart 1. Non-Enterpriso Fund Projects with Cost p issuance Aiternattvo (BOCC Estimates and Timelines . Date 2001 Bonds Financing Endorsed) i Affardabie Housing Spring 2008 $1,400.000 $0 $1,400,000 2 An(mal Services Fadifty Construction Fall 2007 $0 $5,000,000 $5,000,000 3 Central Orange Senior Center (to be Spring 2007 $0 $2,500,000 52,500,000 constructed in tandem with SpartsPlex} 4 CHCCS Carrboro High School (formerly Nigh Spring 2007 $0 $9,000,000 $9,000,000 Sd1oo1 #f3 CHCCSEtementary#10 5prlng2007 50 $22,102,023 522,102,023 8 CHCCS Renovations Unfunded from 2001 Spring 2007 $0 $3,450,000 53.450,000 Bond 7 County Campus and Ubrary Development Summer 2009 $0 $25,000,000 $25,000,000 ' 8 EBand Water and Sewer (8uckhom Spring 2007 $0 $400,000 $400;000 EDD/Gravel) Hilts 9 Greenways Development Spring 2008 5575,000 $0 5575,(100 10 Homestead Aquatics Spring 2008 $3.175,000 $0 $3,175,000 11 Jaii S rin 2007 50 5600.000 $600A00 1 Justice Faaltty (inducting Farmers Market & Spring 2007 $0 510,200,000 $10,200,000 River Park 13 Lands Lea S do 2008 $1.750,000 $0 $1.750.000 14 Satellite Cam us for DTCC S rtn 2007 $0 $3,000,000 53,000,000 15 Sateii{te Campus for DTCC - Sustatnabte Spring 2007 50 $408,000 $408,000 Desi n Elements 16 Sateilita Campus for DTCC -Park 13 Rlde Lot Spring 2007 $0 $180,000 5180,000 17 Twin Creeks/Elemenhary #10 [nfrastructure Spring 2007 $0 $1,250,000 $1,250,000 18 West Ten Soccer Cam tex Cam lotion S rin 2007 $0 52 267 000 $2 67 000 19 Total 56,900,000 $85.357 023 592,257,023 Proposed BOCC Endorsed project Total Chart 2. EnierpHsa Fund Debt Issuances Issuance Date Alternative 2001 Bonds Financing (BOCC Endorsed) Sportsplex Addition (to be constructed In 1 tandem with Central Orange SeNOr Center - ~ Spring 2007 50 $1,500,000 $1,500,000 see footnote 7{a) above) im) 2 Solid Waste Operations Center Spring 2007 $0 $2200,000 $2,200,000 In addition to financial data related to capital projects that the Board endorsed for funding in the nextthree-to- four years,'the September 14 work book identified "an-the-horizon" projects. These projects, whose timetables extend beyond the immediate three-to-four year planning period, are ones that the Board has discussed aver the past year and identified as priorities for future years capital funding. Chart 3 offers a listing of these projects. * Estimated Cost currently undergoing ananlysis Page 2 of 5 19 10/11/06 Chart 3. Projects on the Horizon {Cost and Timeline Estimates Being Developed) R E 7 E c i[ 11 1e 1~ 14 Agriculture Center CHCCS Eiementary#11 (Based on November 15, 2005 SAPFO pro}actions, CHCCS would reach 10fi.4°k Elementary level o Service in school year 2011-12)t~t CHCCS Middle School #5 {Based on November 15, 2005 SAPFO projections, CHCCS would reach 1013.3°~ Middle 5chooi level of Service in school year 2012-13)ttl CHCCS Carrboro High Addition {Bawd on November 15, 2005 SAPFO protections, CHCCS would roach 110.3'35 High 5chaol Level of Service in schoot year 2014-15)i't Etiand Water and Sewer -Central EftandMarthem Buckhom Expansion of Efiand Gheeks Communi Canter Fire Training facility Heritage Gentet t.R~ra Fadli Naw Hope Park ®Biackwood Farm Northeast Regional Park Parks Operations Base f4enovattans of buildings being vacated SHSG Dental Clinic p) in atxordance with Orange County's Schools Adequate Public Faatiiies Ordinance {SAPFO), ten-year student membership projections era updated annually in November. The timing of new school canstrudion as subject to change with each annual update. Levels of Service as defined by SAPFO allow for 105°k of capaaty for elementary,107~° of capadty for n'tiddie school and 110% level of gpadty for high school. The Schaal Collaboration Work Group is currently revtewing the County's School Construction Standards - after Comm~ssianars approve updates to the Standards, costs Can be assaUated with the new schools. Page 3 of S 20 Rnarlarc [~nrrrw to Onnual r~wFst Sarvir_a Caeacity and Tax Rate imeaet .General Fund oniv Chan COi~ Column Title Description of Contents umn A Fiscal Year The County's fiscal year runs from Jufy 1 through June 30. For years 1999-00 through 2006-07, this column reflects the original B Total General Fund budget EOCC approved General Fund t3udget. in accordance with BOCC direction provided at the August 31, 2006 work session, fiscal years beginning with 2007-OS reflect a 7 percent annual increase. Far years 1999-00 through 2006-07, this column reflects the actual percentage Increase in the County's total General Fund. In C Annual % Increase accordance with t30CC direction provided at the August 31, 2006 work session, fiscal years beginning with 2007-OS reflect a 7 percent annual increase. In accordance with the County's current Debt Management Policy, annual General Fund debt service payments are to be no more than D Total Debt Service Capacity 15 percent of total General Fund. The amounts shown in this column equate to 15 percent of each year's total General Fund budget {column B multiplied by 15°!0} Nola: columns E through J are relevant to currently issued debt and debt planned for issuance between fiscal years 2006- 07and 2009-10 (as endorsed by Commissioners on September 94, 2006) E General Fund Debt Service for Currently Amounts in this column reflect the total General Fund debt service Issued Debf payments for debt that the County issued on or before June 30, 2006. Amounts in this column reflect projected debt service payments forth prgjecis ($92.2 million face value debt) that the BOCC endorsed for F Projected Additional Debt Service by Fiscal future debt funding at the September 14, 2006 work session. Chart 1, Year above, provides a list of individual projects. Debt payback projections are based on 6 percent annual interest over a twenty year financing period with fixed principal payments. G Total Debt Service This column reflects a total of debt service for currently issued debt plus projected additional debt service (column E plus column F} Remaining Debt Service Capacity After Amourits rn this column reflect the debt service capacity that remains H Issuing Additional Proposed Debt after rsswng the additional proposed $922 million in face value debt (column D minus column G} Note: Columns 1 and J reface fa projected tax rate impacts of projected additional debt service, operating and staffing of new facilities. Staff is curren#ly working an deve%ping operaGonat ca-efilcrencies to determine future operating, maintenance and staffing needs of individual capital projects. Amounts 1n this column reflect the projected tax rate increase Tax Rate Impact of Additional Debt Service aftributed to additional debt issued ($92.2 million} in accordance wish BOCC direction on September i4, 2006 (column F divided by column J) Amounts'reflected in this column project how much money each J i Cent Equivalent penny on the tax rate would generate each year. Staff anticipates that assessed property valuation in non-Revaluation years would increase at 3 percent and at 15 percent in Revaluation years. Note: Columns K through M identify a range of debt service and borrowing capacity beyond the currently Issued debt and debt planned for issuance between fiscal years 2006-07 through 2009-90 Amounts to this column reflect the amount of debt service capacity that would remain each year after the debt service amounts identified K Debt Service in column G were paid. For presentation purposes, it is assumed that 100 percent of prior year debt capacity is issued. Amounts in this column represent the face value debt that the County L Borrowing Capacity Range would be able to txrrraw with the annual debt service capacity ident~ed in column K 10/i1106 Page 4 of 5 10/11N6 Annual Debt Service Capacity and Tax Rate Impact-General Fund Only(Assumes 7%Annual Growth) Based on County s Currant Debt Management Policy of Annual Debt Service Being No Mom Than 15%of Total General Fund Budget and Assuming 7%Annual Increase to County s General Fund Budget Range of Debt Service and Borrowing Capacity Beyond Currently issued Debt and Debt Planned for issuance Between Fiscal Years 2006-07 and 2009-10(As endorsed by BOCC on September Currently Issued and Projected Additional Debt Service 14,2006) (Projects Identified in 9114106 Capital and Debt Work Book) A B C D E F G H I J K L M `:Pm]ectadTauRatelmpactof'i_; :.:.:.:.•,: ::...•.. Projects an fl-ed in Septem6er.14, Additional Proposed General Fund Debt Service :20pBCepilel and;De6t Y4toik gook. :.Borrowing city.Range_ Total Debt Walk Book and General Fund Debt BOCC) Service Capacity Service for Currently (based on Issued Debt(does a ( roeAdditional P clad i Annual I Tote Qenorai Ann a /o Count u s current Y Include future anticipated inG t :Deb•Sa Da scat t Service. Debt Service B Fiscal .:Cu.`uletiv Tax.°'�? ?'�i?c�'' � ?>' Fund Budget Increase Debt Management y Remaining Debt Service::=---m - -:.e,.:.-•;; z:- debt beyond what was Total Deb g Year(Per T Debt :cRatelm actofS:: r.:�. '�.''.'r`�>'�"�� ' • ' ''•�• `'• Poltcyoft5%of ( n outstandln0 es otJuna projects Identified In (Currently Issued Debt After Issuing :Additional Debt: : : 'cent>ai:.: total General 30.2006 Additional Proposed :..._.....:........:.<:,:..:... .:........:....:...,.. ::,::,From,::.';::;'. :':•':To, Fund) j Septemberld,Z006 Pius Additiona(} Deb c 9endce..(co/umn f:3;eyulvatent Capital and Debt Work column a column t Column d minus p ( >) dfvtdedb column .:... .•...,.�,::.i•:•` column 81 y:..: Back o 800 o Work k and Endorsedb BOCC r 1 1999.OD $100 215 148 2000-01 5108 982 42T 8.75% $16 34T 354 20Di-02 $117739561 0.04% $17660934 2002-03 $118187 050 1.23% $17 878 058 2003-04 $126,972,622 8.21% $19.345,878 2004-05 $136,408,768 5.77% $20,461,315 1 IS 2005.06 $149,866,874 9.86% $22,476,531 2006-07 $103,473,184 9.09% $24,520,976 y 22Fi�9-$ � $0 $22,595,787 $1,925,181 k >z': 0,00• �+i'�S1 Z07 t)00 2007 08 $174,916,307 7.00°Iv $25,237,446 fi$2 Q 3T $3,377,331 $25,468,869 $768.678 2008-09 $187,160,448 70% $28,074,007 +�0,+18* $7,058,387 $28.008,435 $67,032 '.: - ,561, „-.`.•51,280,6p6 2009-00 $200,261,68D 7.00%v $30,039,262 $7,184,881 $26,798,409 $3,242,843 !:��:;:;:.;.,::: 4�B`:'�,•';C?�;:$1;472,682< j%':i.`:fEt)$3242,643: aj;:;,$2900DODD:':(td`.$300000gD k014-15 $214,279,987 7.OD°!v $32,142,000 �SrB,'{3i32 �1x $9,680,31D $28.412,791 $3,729,208_ s 22927 69 D v 3 9 >:9, 7 T.D % $34,91, 40 >.•. 31b,- 2 $9,474,489 $25,833,816 $8,558,123 '8.05e::: $1,6B2;283 i t' >$4 828 ......:..:. $246,329,169 7.00°/v $36,798,376 _=- -` 7:4;T 7;85D $9,197,418 $23,945,268 $12,854,108 tS ;'=5.72'.}':3:$1,809;130. ;'t=::i`_`;il^ 391000 1900, -� ._._. ,..:,E4r285,984: s :;:!$38,000,0�0,:; 5... . $282,602 211 7.00°h $39,375,332 $8,920.347 $23,350,764 $16,024,568 ;5::>:: ?i::? 4.82:: ';ri$1850,50D::;;'. :::::::; 31T0 80. ;i '•, sS28 0dD 000: goo OQQ, t' f 28 877 3 :::::.;:;:•rat Fts:;:........_,., ,,..:......;.._._:..::::._..;.,. ..... ........: :-.:.,.:.............. . $ D, 56 7.00% $42,131,605 �.tS,BOyry;tb 58,643,278 $22,484,096 519,64T,6O8 ............ � ,........... 4,�3 : 51,906,015! iZ:` ;_+$3,t322,9A1 St::i!�`.;d�32,000,000;:.?.`•:;$33,t1Q0,tiQD. $30D,538,781 7_00% $46,080.817 ��" � xd ,1il"J70f6RE $8,36B,205 $21,736,788 $23,344,051 F 2•• .1 p: a$321,576,498 7.00%v 548,238,474 ,. f. .; r7At13 }3 $8,089,i34 $20,831,946 527,404,529 :`' F'i:A.D0:`(i'3$2022091it?`'`' fl ' :::1.:' 50d000�� ;;$344,086,850 7.00% $51,613,028 $1275i g+Q&1. $7,812,053 $20,572,126 $31,040,9t13 336• ::: $2,326,405 :a:;S3,838,379 :..:532,000,000. ''�$33,ODO,gOD. N F-� Page 6 of 5