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HomeMy WebLinkAboutAgenda - 05-14-2015 - 1 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date:May 14, 2015 Action Agenda ItemNo.1 SUBJECT: To Continue Review and Discussion of theManager’s Recommended FY 2015-20Capital Investment Plan (CIP) No DEPARTMENT:PUBLIC HEARING: (Y/N) Financial Services ATTACHMENT(S):INFORMATION CONTACT : Attachment A.Year 1 (FY 2015-16)Bonnie Hammersley,County Recommended ProjectsManager,(919) 245-2300 Paul Laughton, Financial Services, (919) 245-2152 Previously Provided Under Separate Cover - Also Available Online: Manager Recommended FY2015-20 County Capital Investment Plan http://www.orangecountync.gov/departments/ county_budgets.php PURPOSE: To continue review and discussion of 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.Attachment A includes the Year 1 (FY 2015-16) Recommended Projects. Capital Investment Plan – Overview The FY 2015-20CIP 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 becameeffective April 1, 2012. 2 The CIP has been prepared anticipating continued sloweconomic 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. Tonight’s work session discussion will be focused on County Capital projects not discussed at the April 9, 2015 work session, Special Revenue Projects (Article 46 Sales Tax), Proprietary Projects (Water and Sewer, Solid Waste, and Sportsplex), Debt Service and Debt Capacity, and Year 1(FY 2015-16) Capital Projects. County Capital projects (not discussed at the April 9, 2015 work session)– Highlights The following County Capital projects will be discussed at tonight’s meeting: HVAC Projects (CIP page 26) Roofing Projects (CIP page27) Information Technology (CIP page 28) Register of Deeds Automation Project (CIP page 29) Government Services Center Annex (CIP page 33) Parking Lot Improvements (CIP page 34) Court Street Annex (CIP page 36) Generator Projects (CIP page 39) Orange County Radio/Paging Systems Upgrade (CIP page 40) Communication System Improvements (CIP page 41) 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 Elfandsewer 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. 3 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 Departmenthas 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 2014-15includes funding for a Mezzanine addition at the pool areato include dedicated member change areas and lockers, workout rooms, and a senior/adult cardio strength center. Year 1 (FY 2015-16) includes $2,800,000 for a new building addition that would house an indoor turf field for soccer, lacrosse, senior walking, running, Kidsplex functions, and youth/adult flag football leagues, as well as a basketball court, including bleacher seating, for youth and adult basketball leagues, court based fitness programs, volleyball, and Kidsplex activities. Projected revenue from these new projects would generate enough funds to cover the additional annual debt service needed for these projects. FINANCIAL IMPACT: There is no immediate financial impact associated with discussion of the FY 2015-20Capital Investment Plan. It is a long-range financial planning tool with a financial impact in FY 2015-16, if the first year of the CIP is approved by the Board of County Commissioners with the adoption of the Annual Budget. 4 RECOMMENDATION(S): The Manager recommends the Boardcontinue their review and discussion ofthe Manager’s Recommended FY 2015-20Capital Investment Plan and provide direction to staff. Attachment A 5 Orange County CIP - Year 1 (FY 2015-16) Recommended Projects Fiscal Years 2015-16 Fiscal Year 2015-16 Appropriations County Capital Projects: Southern Orange Campus (Future Planning) 3,600,000 Southern Human Services Center (Expansion) 150,000 Southern Branch Library 472,500 Cedar Grove Community Center Library Kiosk 180,000 Roofing Projects 172,000 Information Technology 500,000 Register of Deeds Automation 80,000 Proposed Jail 500,000 Environment and Agriculture Center 300,000 Parking Lot Improvements 120,000 Life Safety - ADA 35,000 Historic Rogers Road Community Center/Infrastructure 260,000 Generator Projects 130,000 9-1-1 Back-up Center 369,499 Conservation Easements 250,000 Upper Eno Nature Preserve-Public Access Area 125,000 Soccer.com Soccer Center Phase II 425,000 New Hope Preserve/Hollow Rock Public Access 25,000 River Park Phase II 300,000 Little River Park Phase II 100,000 Facility Renovations and Repairs 300,000 Total County Projects$ 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 A 6 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 of new 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 2/3 (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 Chapel Hill Carrboro City Schools: Long Range Capital: Pay-As-You-Go Funds 2,275,138 Lottery Proceeds 835,626 Preliminary Planning Funds 750,000 $ 3,860,764 Total Orange County Schools: Long Range Capital: Pay-As-You-Go Funds 1,449,711 Lottery Proceeds 520,736 Preliminary Planning Funds 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