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HomeMy WebLinkAboutAgenda - 11-01-2016 - 7-b - Reimbursement Resolution for Capital Projects and Equipment Costs 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: November 1, 2016 Action Agenda Item No. 7-b SUBJECT: Reimbursement Resolution for Capital Projects and Equipment Costs DEPARTMENT: Finance and Administrative Services ATTACHMENT(S): INFORMATION CONTACT: Attachment 1. Reimbursement Gary Donaldson, (919) 245-2453 Resolution Paul Laughton, (919) 245-2152 Attachment 2. Internal Services Fund Vehicle Listing for FY 2016-17 PURPOSE: To approve a Resolution providing for reimbursement of Capital Project and Equipment costs. BACKGROUND: At the June 16, 2016 meeting, the Board of County Commissioners (BOCC) approved the financing of various projects and equipment as part of the Capital Investment Plan (CIP) projects for FY 2016-17. 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. Final approval is scheduled for Spring 2017. The costs of these Project Components is $15,911,700 in the County Capital Fund, $789,722 in the Vehicle Replacement Fund, $1,000,000 in the School Capital Fund, $662,717 in the Solid Waste Enterprise Fund, and $2,800,000 in the Sportsplex Enterprise Fund, for a total of $21,164,139 Attachment 2 is the approved list of County vehicles to be purchased through the Internal Services Fund as part of the equipment portion of the financing. This list was provided to the BOCC in June 2016. 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 Commissioners in Spring 2017. 2 SOCIAL JUSTICE IMPACT: There is no Orange County Social Justice Goal associated with this agenda item. RECOMMENDATION(S): The Manager recommends the Board approve the Reimbursement Resolution. 3 RES-2016-069 Attachment 1 Orange County -- Reimbursement Resolution for 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 costs (not including allowances for reserves and financing costs) is approximately $15,911,700 in the County Capital Fund, $789,722 in the Vehicle Replacement Fund, $1,000,000 in the School Capital Fund, $662,717 in the Solid Waste Enterprise Fund, and $2,800,000 in the Sportsplex Enterprise Fund, for a total of$21,164,139. 3. Funds for the early Project expenditures may come from the County's General Fund, or any other County fund. 4. The County intends for the adoption of this resolution to be a declaration of its official intent to reimburse itself from financing proceeds for Project cost expenditures. I certify as follows: that the foregoing resolution was properly adopted at a meeting of the Board of Commissioners of Orange County, North Carolina; that this meeting was properly called and held on , 2016; that a quorum was present and acting throughout this meeting; and that this resolution has not been modified or amended, and remains in full effect as of today. Dated this day of , 2016. [SEAL] Clerk, Board of Commissioners Orange County, North Carolina 4 Exhibit A — Project Components Project Component Estimated Cost ($) Prior Year(s) Budgeted Projects: Detention Facility design work (FY 2014-15 and FY 750,000 2015-16) Conservation Easements acquisitions (FY 2015-16) 250,000 Parking Lot Improvements (FY 2015-16) 120,000 Planning & Agricultural Building (FY 2015-16) 300,000 River Park Development (FY 2015-16) 300,000 FY 2016-17 Budgeted Projects: Seymour Senior Center renovations 990,000 Passmore Center renovations 550,000 Roofing Projects 194,700 Information Technology (infrastructure and software) 1,000,000 Detention Facility design, architectural, and engineering costs 500,000 Facility Accessibility and Security Improvements 319,000 Generator Projects 375,000 Rogers Road sewer improvements 5,680,000 Affordable Housing land banking 1,000,000 EMS Substation construction 500,000 9-1-1 Center improvements 380,000 Communication Systems Improvements (radio 166,000 replacements for Emergency Services) Blackwood Farm Park design work and improvements 1,140,000 5 Cedar Grove Park renovations 60,000 Conservation Easements acquisitions 500,000 Mountains to Sea Trail construction 153,000 River Park Development—Phase II 50,000 Little River Park—Phase II 50,000 Hollow Rock Nature Park 112,500 Fairview Park Access and Parking improvements 325,000 Parks and Recreation Facility Renovation and Repair 146,500 Total County Capital 15,911,700 Vehicle Replacements 789,722 School Capital—Improvements to Older Schools 1,000,000 Solid Waste—Equipment Replacement 562,717 Solid Waste—Planning for Alternative Waste 100,000 Disposal Sportsplex—Field House construction 2,800,000 TOTAL 21,164,139 6 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. The current internal services fund is still being subsidized by the general fund. In the spring and summer of 2016, staff will be working with a recognized fleet services consulting firm to fully optimize the internal services fund model for Orange County. This optimization will influence recommendations for the internal services fund starting in FY 2017-18. Recommendations for vehicle replacements are based on vehicle age, mileage, maintenance costs, fuel efficiency, and departmental mission need. The average age and accumulated mileage of the recommended replacements are 12 years and 161,754 miles, respectively. The vehicle replacement process is a dynamic process that unfolds over the course of a year. During the replacement cycle vehicles originally listed for replacement may ultimately not be selected for replacement as other fleet vehicles become a higher priority for replacement. The FY2016-17 approved vehicles involves public safety vehicles only in anticipation of the significant structural optimization expected within the Fleet Internal Services Fund to be recommended for FY2017-18 and beyond. Recommended replacement vehicle platforms are the Dodge Charger for the Sheriff's office patrol vehicle (high performance highway and street use); the Dodge Durango All Wheel Drive for heavy all- terrain use and for emergency operations support in inclement weather; the four wheel drive Ford F250 for heavy utility use within Animal Services Operations; and the Ford F550 chassis/Horton medical service carriage package for the ambulance need. Specialized vehicle platforms are also included to meet specific departmental service needs. All platforms are evaluated for department mission utility, durability, maintenance standardization, and fuel efficiency. The list below outlines approved vehicle requests for FY 2016-17. Pricing is based upon the current state contract rates. The Board of Commissioners approved this vehicle list, and the financing amount of $789,722 as part of the FY 2016-17 Budget Ordinance, to allow these vehicles to be ordered and placed into service in the early fall of 2016. 7 FY 2016-17 Approved Vehicles Department Item Description Cost (1) Ford F250 Truck 4x4, includes aftermarket upfit costs Animal Services Replaces: $45,648 #668-2005 Chevrolet Silverado 1500 (2) Dodge Durango SSV All Wheel Drive, 4X4 Replaces: $78,949 #660—2006 Ford Expedition #661 —2006 Ford Expedition Emergency Services (1) Ambulances—Supplied by Horton Emergency Vehicles (Ambulance platform is built on Ford F550 Cab and chassis with 4x4) $235,000 Replaces: #714 -2007 Ford F-450 Ambulance (15) Dodge Charger Police Package Rear Wheel Drive Sheriff $430,125 Replaces: 15 patrol vehicles to be identified later FY 2016-17 Approved $789,722 Total: FY 2016-17 Source of Funds: Short-term Installment Financing ($789,722) Note: 1. Does not reflect vehicles attached to new position requests. Such requests were evaluated as part of the operating budget process.