HomeMy WebLinkAboutAgenda - 03-03-2015 - 6mORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: March 3, 2015
SUBJECT: Reimbursement Resolution for FY 2014 -15 Capital Pro
DEPARTMENT: Finance and Administrative
Services
ATTACHMENT(S):
Attachment 1. Reimbursement
Resolution
Attachment 2. Internal Services Fund
Vehicle Listing for FY
2014 -15
Action Agenda
Item No. 6 -m
and Eauipment
PUBLIC HEARING: (Y /N) No
INFORMATION CONTACT:
Paul Laughton, (919) 245 -2152
PURPOSE: To approve a Resolution providing for reimbursement of FY 2014 -15 Capital Project
costs.
BACKGROUND: At its November 6, 2014 meeting, the Board of County Commissioners
(BOCC) received preliminary information for the financing of various projects and equipment as
approved as part of the Capital Investment Plan (CIP) projects for FY 2014 -15. Additionally,
there were some previous year capital projects, although approved as budgetary, for which the
financing was not issued due to the project schedules. The attached Reimbursement
Resolution (Attachment 1), including the Project Components listed on Exhibit A, allows the
County to advance funds, if needed, for these initial project costs and equipment, and then
reimburse itself from financing proceeds once final financing has been secured and approved by
the Board of County Commissioners later this Spring.
Also attached (See Attachment 2) is a final list of County vehicles to be purchased through the
Internal Services Fund as part of the equipment portion of the financing. The initial list provided
to the BOCC in June 2014 totaled $775,119. The updated list totals $756,388. This decrease
of $18,731 is attributed to a change in the type of ambulance for Emergency Services.
Attachment 2 explains this change in more detail.
FINANCIAL IMPACT: As stated in the Background section, this Reimbursement Resolution
allows the County to advance funds for these initial project costs and equipment, and then
reimburse itself from financing proceeds once final financing has been secured and approved by
the Board of County Commissioners later this Spring.
RECOMMENDATION(S): The Manager recommends the Board approve the Reimbursement
Resolution.
RES- 2015 -015
2
Attachment 1
Orange County -- Reimbursement Resolution for FY 2014 -15 Capital Projects and
Equipment
WHEREAS --
The County intends to undertake a Project (as described below), use its own funds
to pay initial Project costs, and then reimburse itself from financing proceeds for these
early expenditures. The Manager and the Finance Officer have advised the Board that it
should adopt this resolution to document the County's plans for reimbursement, in order
to comply with certain federal tax rules relating to reimbursement from financing
proceeds.
BE IT RESOLVED by the Board of Commissioners of Orange County, North
Carolina, as follows:
1. The Project is the acquisition, construction and equipping of the public
assets and improvements described on Exhibit A.
2. The County intends to advance funds for initial Project costs, and then
reimburse itself from financing proceeds. The expected primary type of financing for the
Project (which is subject to change) is installment financing under Section 160A -20. The
financing may include more than one installment financing, and may include installment
financings with equipment vendors and installment financings that include the use of
limited obligation bonds.
The expected maximum amount of obligations to be issued or contracted for the
Project (not including allowances for reserves and financing costs) is approximately
$16,236,703.
3. Funds for the early Project expenditures may come from the County's
General Fund, or any other County fund.
4. The County intends for the adoption of this resolution to be a declaration of
its official intent to reimburse itself from financing proceeds for Project cost
expenditures.
Exhibit A — Project Components
Project Component
Estimated Cost ($)
Improvements to Cedar Grove Community
Center
2,822,226
Southern Orange Campus — planning and
improvements
400,000
HVAC projects at various County facilities
355,999
Roofing projects at various County facilities
179,010
Information technology (including central
permitting software)
1,250,000
Communications systems improvements,
especially for the Sheriff's department and
emergency services systems
122,000
Soccer.com soccer center — improvements
and land acquisitions
125,000
Lands Legacy acquisitions
2,400,000
Efland water and sewer improvements
4,581,400
Sportsplex — pool mezzanine
950,000
Improvements for Eubanks Road solid waste
convenience center
1,097,012
Vehicle replacements
756,388
In -car camera replacements for Sheriff's
office
517,798
Board of Elections equipment
679,870
TOTAL
16,236,703
4
Attachment 2
Vehicle Replacement - Internal Service Fund
Purpose of Fund
In FY 2012 -13, the Commissioner Approved Budget established a second Internal Service Fund, for
County vehicle purchases. Internal Service Funds are an accounting device used to accumulate and
allocate costs internally among the functions of the County. Historically, the County has used an
internal service fund to account for one activity - its employee dental insurance program. With the
creation of this Vehicle Replacement Fund, vehicles purchased occur through this fund instead of the
departments' operating budgets. The change centralizes vehicle purchases, which increases the
effectiveness of vehicle performance and cost monitoring.
Recommendations are founded upon vehicle age, mileage, maintenance costs, fuel efficiency, and
departmental mission need. The average age and accumulated mileage of the recommended
replacements are 13 years and 143,000 miles, respectively.
Recommended replacement vehicle platforms are the Toyota Prius for administrative, highway and
street use; the Chevrolet Equinox for moderate all- terrain use; the Chevrolet All Wheel
Drive Equinox for heavy all- terrain use; the Ford Transit Connect for highway utility, service and light
cargo use; the Ford F150 (both two and four wheel drive) for heavy utility use with the 4x4 option for
heavy all- terrain use for Environmental Health, Emergency Services, and DEAPR missions; and the
Dodge Durango or Dodge Charger for non -jail law enforcement use. All platforms are evaluated for
department mission utility, durability, maintenance standardization, and fuel efficiency.
The initial Vehicle Replacement list was provided to the BOCC in June 2014 and totaled $775,119.
The updated list totals $756,388. The decrease of $18,731 is mostly attributed to a change in the type
of ambulance for Emergency Services. The medium duty ambulance that the department currently
utilizes is on a Freightliner chassis that does not have airbags for drivers, has a harsh ride for patients,
and the maintenance requirements have not met the County's expectations. The recommended
replacement ambulance is a Four Wheel Drive ambulance on a Ford F -550 chassis with both front
and rear airbags, provides a very comfortable ride for patients, access to the supplier's mobile
maintenance services, access to a maintenance facility in Richmond, VA that is only 2.5 hours away
for significant maintenance issues, and the chassis can be serviced locally in Hillsborough.
The list below outlines the final recommended vehicles for FY 2014 -15. Pricing is based upon current
FY 15 State Contract rates.
FY 2014 -15 Recommended Vehicles
Department
Item Description
Cost
Asset Management
Services
Ford F150 4x4 — Replaces #342 1995 Ford F15
$20,244
2 Ford E250 4x4 — Replace #625 2004 Chevrolet Silverado
Animal Services
1500 and #669 2005 Chevrolet Silverado; includes
$90,183
aftermarket upfit costs
Department of
Environment, Agriculture,
Ford F150 Regular Cab 4x4 — Replaces #533 1996 Chevrolet
$20,244
Parks and Recreation
pickup
Ford F150 4x4 — replaces #659 2006 Ford Expedition;
$37,900
includes aftermarket upfit costs
2 Chevrolet Tahoe's 4x4 — replaces 2006 Ford Expeditions
$84,642
Emergency Services
#660 and #661; includes aftermarket upfit costs
Ambulance — Ford F -550 chassis 4x4 to replace #633, a
Wheeled Coach ambulance (Emergency Medical Services);
$233,681
includes aftermarket upfit costs
Health
Toyota Priuses — Replaces #410 1998 Crown Victoria
$21,800
Sheriff
4 Dodge Durango's and 3 Dodge Chargers - replacements
for Ford Crown Victoria Interceptors (Non -Jail Operations)
$204,715
Social Services
Toyota Prius — replaces #527 2001 Ford Taurus
$22,360
Tax Administration
Chevrolet Equinox All Wheel Drive — replaces #515 2001
$20,619
Chevrolet Malibu
FY 2014 -15 Recommended Total: $756,388
FY 2014 -15 Source of Funds: Short -term Installment Financing /Internal Reserves $(756,388)
Net County Cost: $ -