HomeMy WebLinkAboutAgenda - 03-17-2015 - 8aORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: March 17, 2015
Action Agenda
Item No. 8 -a
1
SUBJECT: Presentation of Manager's Recommended FY 2015 -20 Capital Investment Plan
(CIP)
DEPARTMENT: Financial Services PUBLIC HEARING: (Y /N) No
ATTACHMENT(S):
Attachment 1. Year 1 (FY 2015 -16)
Recommended Projects
PREVIOUSLY PROVIDED UNDER
SEPARATE COVER
Attachment 2. Manager Recommended
FY 2015 -20 County
Capital Investment Plan
Available Electronically
tt . / /oranecountync. ov
/finance /budget. as�a
INFORMATION CONTACT:
Bonnie Hammersley, County
Manager, (919) 245 -2300
Paul Laughton, Financial Services,
(919) 245 -2152
This Item is a carry- forward from the
March 5, 2015 work session
cancelled due to weather.
PURPOSE: To receive the Manager's Recommended FY 2015 -20 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 2015 -20 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.
I
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 two (2) new projects in Years 1 -5 that were not part of the
FY 2014 -19 CIP. These projects include the following:
Generator Projects — includes $30,000 for design services and $100,000 for a generator at
Hillsborough Commons in Year 1 (FY 2015 -16); $100,000 in Year 2 (FY 2016 -17) for a
generator at Animal Services Facility; and $175,000 in Year 3 (FY 2017 -18) for generators at
Cedar Grove, Efland Cheeks, and Historic Rogers Road Community Centers.
9 -1 -1 Back -up Center— includes $369,499 in Year 1 (FY 2015 -16) to provide a 9 -1 -1 Back -up
Communications Center at the West Campus Office Building in Hillsborough. The NC 9 -1 -1
Board requires that all Public Safety Answering Points (PSAPs) have a back -up plan, no later
than July 1, 2015, in the event of an outage or abandonment of the primary 9 -1 -1 Center.
Other Major County projects include the following:
Southern Orange Campus (Future Planning) — Design services of $400,000 were included in FY
2014 -15, with site development infrastructure work of $3,600,000 in Year 1 (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 — A full site master plan Special Use Permit
( "SUP ") was approved in June 2014, providing the Board adopted guidance regarding
expansion and remodeling to accommodate future Human Services and other identified County
needs. The facility will be programmed to follow logical and timely development of master plan
and Space Study work group recommendations (that will be presented to the Board of
Commissioners in Spring of 2015). The Plan includes $75,000 in Year 1 (FY 2015 -16) for
schematic design services to assist in visioning the expanded space and its potential uses, and
$6,475,000 in Year 2 (FY 2016 -17) for the 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 $472,500 is included in Year 1 (FY 2015 -16), and
construction costs of $5,625,000 and $750,000 in equipment and furnishings are included in
Year 2 (FY 2016 -17). Note: construction costs for this project have been reduced from the
current CIP by approximately $1,400,000 due to the square footage reduction from 18,000 to
15,000 square feet, as well as a reduction in the number of dedicated parking spaces, from 80
to 50 spaces.
Proposed Jail — total project costs of approximately $21,600,000, with site related planning
costs of $500,000 in Year 1 (FY 2015 -16), architectural /engineering costs of $500,000 in Year 2
(FY 2016 -17), with the construction of a new 144 bed jail in Year 3 (FY 2017 -18). Note:
Construction costs for this project have been reduced from the current CIP by approximately
$4,100,000 due to building an initial 144 bed capacity, down from the 216 bed capacity in the
current CIP, with expansion potential of up to a 250 bed capacity.
t
Environment and Agriculture Center — includes $300,000 in Design Services in Year 1 (FY
2015 -16), and construction costs of approximately $3,100,000 in Year 2 (FY 2016 -17) for a new
center at the current Revere Road site. The current Center on the property will be
deconstructed to allow for a new parking area. Note: this project has moved up one year from
the current CIP.
Historic Rogers Road Neighborhood Community Center — During FY 2012 -13, the Board of
Commissioners approved the establishment of capital project for the construction of a Historic
Rogers Road Neighborhood Community Center with funds of $650,000. For Year 1 (FY 2015-
16), $260,000 is budgeted, which includes the County's 43% share of a Phase II Study, and
construction costs of $3,025,000 in Year 2 (FY 2016 -17) for the County's 43% share of
OWASA's Sewer Concept plan to provide sewer to 86 parcels identified by the Historic Rogers
Road Neighborhood Task Force.
Efland- Cheeks Community Center Upfit — includes approximately $425,000 in Year 5 (FY 2019-
20) for an upfit/interior renovation to the current facility, including new equipment and
furnishings, as well as area landscaping.
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. Year 2 (FY 2016 -17) includes $1.2 million for 2 co- builds,
both with the Town of Hillsborough. Year 3 (FY 2017 -18) includes a $600,000 co -build with the
Town of Chapel Hill. Year 4 (FY 2018 -19) includes $2.1 million for one co -build with the Town
of Chapel Hill, and one stand -alone substation. An additional stand -alone substation is planned
in Years 6 -10. Note: the initial two substations in FY 2016 -17 have been pushed back one
year from the current CIP.
Blackwood Farm Park — includes $150,000 in Year 2 (FY 2016 -17) for final design and
construction drawings, with Park construction funds of $1,900,000 in Year 3 (FY 2017 -18), and
approximately $1,100,000 in Year 4 (FY 2018 -19) for a permanent parks operations base.
Note: the parks operations base has moved up one year from the current CIP.
Soccer.com Soccer Center (Phase 11) — This represents an investment in the current facility
(formally named Eurosport Soccer Center), with $425,000 included in Year 1 (FY 2015 -16) for
possible land acquisition for future expansion; Design costs of $250,000 in Year 4 (FY 2018-
19); and approximately $4.6 million in Year 5 for the construction of new artificial turf fields,
tennis courts, parking, restrooms /equipment building, equipment, and stormwater controls.
Note: Possible land acquisition has moved up one year from the current CIP.
Millhouse Road Park — This project reflects a possible Town of Chapel Hill /County partnership
concept for this project. Includes $100,000 in Year 2 (FY 2016 -17) for design, engineering, and
preconstruction costs; and $6,400,000 in Year 3 (FY 2017 -18) for Park construction, including a
soccer field complex, walking trails, and other amenities. This joint facility is reflected in both
the Town and County's Parks and Recreation Master Plans.
M
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 2015 -16, proceeds are
estimated at $2,814,576, 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 EDD — Phase 2 Extension (Efland Sewer to Mebane) — includes $240,000 in Year 1
(FY 2015 -16) for project management funds related to the construction of the project, which will
be completed in FY 2015 -16; 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 $1,000,000 in Year 1 (FY 2015 -16) for construction of
water and sewer infrastructure in this EDD.
Eno EDD — includes $1,050,000 in Year 1 (FY 2015 -16) to begin the construction work in this
EDD, as well as an additional $750,000 in Year 2 (FY 2016 -17) due to the planned construction
timeline crossing two fiscal years. Note: this project has been moved up 2 -3 years from the
current CIP, because there is a smaller area in the eastern portion of the EDD that could be
served by gravity sewer and may offer an opportunity to begin extending infrastructure within
the next two years.
Buckhorn- Mebane EDD Phases 3 and 4 — includes $2,500,000 in Year 4 (FY 2018 -19) for the
Buckhorn- Mebane Phases 3 and 4 construction projects. Note: this project has been moved
back two years from the current CIP to allow for the operation of Phase 2 for a period of time
prior to starting Phases 3 and 4.
Economic Development Utility Extension Project(s) — provides funds of $250,000 in Year 1 (FY
2015 -16) 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 — The current FY 2014 -15 funds of approximately $3.1 million includes improvements
to the Eubanks Road Solid Waste Convenience Center (SWCC), including the relocation of the
main landfill entrance and scales from the south side to the north side of Eubanks Road; funds
of $296,035 in Year 1 (FY 2015 -16) for the replacement of a front end loader; Year 2 (FY 2016-
17) includes $519,750 for SWCC improvements at the High Rock Road site; and Year 3 (FY
2017 -18) includes $393,750 for SWCC improvements at the Ferguson Road site.
Recycling Operations — The current FY 2014 -15 includes the purchase of a replacement roll off
truck and a commercial recycling truck, and the purchase of 7,600 rural recycling carts, at a
total cost of $880,203. Year 1 (FY 2015 -16) provides for the purchase of 1,750 additional rural
carts, the purchase of a new rural curbside recycling truck, the replacement of a rural curbside
recycling truck, the replacement of a front end loader, and the construction of a recycling roll
cart distribution and maintenance building, at a total Year 1 costs of $1,177,884. Years 2 -5
includes the replacement of several other trucks and front end loader, as per the Enterprise
Fund's vehicle /equipment replacement schedule.
Construction and Demolition (C & D) Landfill — includes $252,994 in Year 2 (FY 2016 -17) to
rebuild a compactor, and $219,475 in Years 6 -10 to rebuild two dozers. 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.
Sportsplex — the current FY 2014 -15 includes funding 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 1 (FY 2015 -16) includes funds of $2,800,000 for a
new building addition that would house an indoor turf field for soccer, lacrosse, senior walking,
running, Kidsplex functions, and youth /adult flag football leagues, as well as a 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.
School Projects — Highlights
Chapel Hill- Carrboro City Schools — includes $750,000 in Preliminary Planning funds in Year 1
(FY 2015 -16) to allow the school system to be "shovel ready" for a project or projects after a
successful Bond Referendum; funds would be reimbursed from the approved Bond
Referendum funds.
Based on the Schools Adequate Public Facilities Ordinance (SAPFO) most recent November
15, 2014 projections, the following new schools /additions would be needed in Years 6 -10.
Middle School #5 to open in FY 2023 -24 (Note: the addition of 104 new seats in FY 2014 -15
from the construction of the Science wing at Culbreth Middle School delayed the need for
additional capacity at the middle school level by three years); Elementary #12 to open in FY
2023 -24. 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 — includes $478,000 in Preliminary Planning funds in Year 1 (FY 2015-
16) to allow the school system to be "shovel ready" for a project or projects after a successful
Bond Referendum; funds would be reimbursed from the approved Bond Referendum funds.
Based on the SAPFO's recent November 15, 2014 projections, the following new
schools /additions would be needed in Years 6 -10: Cedar Ridge High School Classroom
Addition to open in FY 2022 -23. 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.
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.
u
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, with the highest percentage in Year
4 (FY 2018 -19) at 14.08 %. Given the funding scenarios in the CIP for Years 6 -10, the highest
percentage in those years would reach 13.92% in Year 7 (FY 2021 -22). Note: Even though
there is new debt assumed in Years 6 -10, it is offset by the retirement of some of the County's
existing debt.
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.
FINANCIAL IMPACT: There is no immediate financial impact associated with the presentation
of the FY 2015 -20 Capital Investment Plan. It is a long -range financial planning tool with a
financial impact in FY 2015 -20, 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 2015 -20 Capital Investment Plan and provide direction to staff in
preparation of the April 9, 2015 Budget work session.
Attachment 1
Orange County CIP -Year 1 (FY 2015 -16) Recommended Projects
Fiscal Years 2015 -16
Special Revenue Fund (Article 46 Sales Tax)
Fiscal Year
2015 -16
Appropriations
Economic Development:
County Capital Projects:
Southern Orange Campus (Future Planning)
3,600,000
Southern Human Services Center (Expansion)
150,000
Southern Branch Library
472,500
Cedar Grove Community Center Library Kiosk
180,000
Roofing Projects
172,000
Information Technology
500,000
Register of Deeds Automation
80,000
Proposed Jail
500,000
Environment and Agriculture Center
300,000
Parking Lot Improvements
120,000
Life Safety - ADA
35,000
Historic Rogers Road Community Center /Infrastructure
260,000
Generator Projects
130,000
9 -1 -1 Back -up Center
369,499
Conservation Easements
250,000
Upper Eno Nature Preserve - Public Access Area
125,000
Soccer.com Soccer Center Phase II
425,000
New Hope Preserve /Hollow Rock Public Access
25,000
River Park Phase II
300,000
Little River Park Phase ll
100,000
Facility Renovations and Repairs
300,000
Total County Projects
$ 8,393,999
Special Revenue Fund (Article 46 Sales Tax)
Economic Development:
Debt Service on Infrastructure
857,287
• 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
$
1,407,287
Chapel Hill Carrboro City Schools:
Technology - Student Access Computing Devices
432,741
Improvements at Older Schools
432,741
Total Chapel Hill - Carrboro City Schools
$
865,482
Orange County Schools:
Technology- 1:1 Initiative (District -wide) and Technology Upgrades
541,807
Total Orange County Schools
$
541,807
Total Article 46 Sales Tax
$
2,814,576
Attachment 1
Proprietary Capital Projects
Water & Sewer Utilities:
Efland Sewer Flow to Mebane 240,000
Economic Development Infrastructure 50,000
Economic Development Utility Extension Projects 250,000
Hillsborough EDD 1,000,000
Eno EDD 1,050,000
Total Water & Sewer $ 2,590,000
Solid Waste:
Sanitation - Replacement of Front End Loader 296,035
Recycling Operations - Purchase additional Rural carts; new Rural curbside
truck; construction ofnew roll-cart distribution and maintenance facility; 1,177,884
replacement of Front End Loader and Recycling truck
Total Solid Waste $ 1,473,919
Sportsplex:
New Facilities Projects:
Major Expansion - Phase 213 (Indoor Turf Field and Court) 2,800,000
Parking Lot Repair /Repave 150,000
Pool Pump /Boiler 100,000
Ice Rink Repairs 75,000
Signage Upgrade 25,000
Total Sportsplex $ 3,150,000
Schools Capital Projects
Transfer from General Fund - County
Chapel Hill Carrboro City Schools:
Transfer from General Fund - W & S Utilities
Long Range Capital:
3,724,849
Solid Waste Fund Balance
Pay -As- You -Go Funds
Sportsplex Fund Balance
2,275,138
Lottery Proceeds
1,356,362
835,626
Preliminary Planning Funds
9 -1 -1 Funds
750,000
Total
$
3,860,764
Orange County Schools:
Article 46 Sales Tax Proceeds - Water & Sewer
590,000
Long Range Capital:
Debt Financing - County Capital
Pay -As- You -Go Funds
Debt Financing - W & S Utilities
1,449,711
Lottery Proceeds
569,590
520,736
Preliminary Planning Funds
Debt Financing - Schools Capital
478,000
Total
$
2,448,447
Total School Projects
$
6,309,211
Total Appropriations
$
24,731,705
Revenues /Funding Source
Transfer from General Fund - County
1,000,000
Transfer from General Fund - W & S Utilities
Transfer from General Fund - Schools
3,724,849
Solid Waste Fund Balance
904,329
Sportsplex Fund Balance
350,000
Lottery Proceeds
1,356,362
Register of Deeds Fees
80,000
9 -1 -1 Funds
369,499
Grants & Contributions
175,000
Article 46 Sales Tax Proceeds
2,814,576
Article 46 Sales Tax Proceeds - Water & Sewer
590,000
Financing:
Debt Financing - County Capital
6,769,500
Debt Financing - W & S Utilities
2,000,000
Debt Financing - Solid Waste
569,590
Debt Financing - Sportsplex
2,800,000
Debt Financing - Schools Capital
1,228,000
Total Revenues
$ 24,731,705