HomeMy WebLinkAboutAgenda - 04-04-2017 - 4-g - Presentation of Manager’s Recommended FY 2017-22 Capital Investment Plan (CIP) 1
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: April 4, 2017
Action Agenda
Item No. 4-g
SUBJECT: Presentation of Manager's Recommended FY 2017-22 Capital Investment Plan
(CIP)
DEPARTMENT: County Manager and
Finance and Administrative
Services
ATTACHMENT(S): INFORMATION CONTACT:
Attachment 1. FY 2017-22 Capital Bonnie Hammersley, County
Investment Plan Manager, (919) 245-2300
Presentation Travis Myren, Deputy County
Attachment 2. County Manager's CIP Manager, (919) 245-2308
Transmittal Letter Gary Donaldson, Financial
Services, (919) 245-2453
UNDER SEPARATE COVER Paul Laughton, Financial Services,
(919) 245-2152
Attachment 3. Manager Recommended
FY 2017-22 Capital
Investment Plan
Available Electronically at:
http://www.co.orange.nc.us/departments/f
finance and administrative services.php
Hard Copies to be Provided at the
Meeting
PURPOSE: To receive the Manager's Recommended FY 2017-22 Capital Investment Plan.
BACKGROUND: Each year, the County produces 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 2017-22 CIP includes County Projects, School Projects, and Proprietary Projects. The
School Projects include Chapel Hill-Carrboro City Schools, Orange County Schools, and
Durham Technical Community College — Orange County Campus projects. The Proprietary
Projects include Water and Sewer, Solid Waste Enterprise Fund, and Sportsplex projects.
2
The CIP has been prepared anticipating slow to moderate economic growth of approximately
1% in property tax growth and 4% in sales tax growth annually over the next five years. Many
of the projects in the CIP will rely on debt financing to fund the projects.
SOCIAL JUSTICE IMPACT: There is no Orange County Social Justice Goal impact associated
with this agenda item.
FINANCIAL IMPACT: There is no immediate financial impact associated with the presentation
of the FY 2017-22 Capital Investment Plan. It is a long-range financial planning tool with a
financial impact in FY 2017-22, 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 2017-22 Capital Investment Plan and provide direction to staff in
preparation of the April 6, 2017 Budget work session.
p I
COUNTY MANAGER'S RECOMMENDED
FY2017-22 CAPITAL INVESTMENT PLAN
(CIP)
• ORANGE COUNTY
NORTH CAROLINA
•
• BOARD OF ORANGE COUNTY COMMISSIONER MEETING
� WHI7TED FACILITY - HILLSBOROUGH
APRIL 41, 2017
4
FY2017-22 CAPITAL INVESTMENT PLAN
Document includes,0
�
Transmittal Letter
� CIP Summaries
�o. County Projects-al
�
Propr* etary Pr oj��ts
,io School P roj�cts
�o Appendices
0
FY2017-22 CADITAL INVESTMENT PLAN
Environment and Agriculture Center
Project Category: County Capital Project Status: Active Project Type
Functional Service Support Services Proposed Bid TBD New X
Area: Award Date:
Department: Asset Management Starting Date: 7/1/17 Expansion X
Services
Project Number: 10028 Completion Date: 6/30/18 Renovation X
Re lacement
Project Description/Justification: FY 2017-18 funding reflects a
renovated Environment and Agriculture Center (EAC) on Revere
Road. The architect has completed a comprehensive visioning study
of the facility including a structural report finding the facility structurally /
sound. A completed report has been provided to the BOCC. In addition
to this renovation option the report outlines new construction options
either at the Revere road site or in a similar area on the northern
periphery of Hillsborough_ The funding for the roof renovation has been
included in this CIP project; if funds are not appropriated for this
project the roof coating cost will be added into the Roof & Building T_
Facade project for FY2018-19_
FINANCIAL SUMMARY
Current Year 1 Year 2 Year 3 Year 4 Year 5 Five Year 6
Prior Years Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Year to
Project Budget Funding 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 Total Year 10
Expenses
Land/Bui lding
Professional Services 300,000 -
Construction/Repairs/Renovations 3,282,000 3,282,000
Equipment/Furnishings 102,500 102,500
Total Project Budget: 300,000 - 3,384,500 - - - - 3,384,500 -
Funding Sources
Transfer from Genera/Fund - -
Transfer from Other Projects
Debt Financing 300,000 - 3,384,500 - - 3,384,500
Total 300,000 - 3,384,500 - - - - 3,384,500 -
Impact on Operating Budget
Personnel Services
Operations
Recurring Capita/
New/Add'/Revenue -
Total Operating Costs - - - - - - -
I
FY201722 CAPITAL INVESTMENT PLA6N
EXPENDITURES
Year 1 : FY 2017-18 Years 1-5: FY 2017-2022
$27,504,042 $27434235537
Schools
28.3%
Schools County
, . .
,OWN"
Proprietary
Funds
13.5% 6A
16 Ems— Ali, Proprietary
Funds
5.7
I
FY201722 CAPITAL INVESTMENT PLA7N
FUNDING SOURCES
Year 1 : FY 2017-18 Years 1-5: FY 2017-2022 io
$2755043042 $27454235537 Article 46
Other Funding Transfers from Other Transfers Sales Tax
Sources General Fund Funding from General Proceeds
2.796
2.096 Debt-Other ?9� 6 Fund 696 s 3.196
Article 46 3.0% Proprietary
Sales Tax Funds
Proceeds 2.796
Debt-Schools 6.0% Debt- Lottery
17.7% Proprietary Schools Proceed
Debt-Other Funds
11.196 21596
10.4% 2.8%
Lottery
Proceed
4.9%
Bari,
Debt-County
Debt-County
3.170
53.5%
FY20117-22 CAPITAL INVESTMENT PLAN
DEBT CAPACITY
25%
20%
15%
-+--Annual Debt
10% -a-Debt Policy
5%
0%
FY17-18 FY18-19 FY19-20 FY20-21 FY21-22
O
FY2017-22 CAPITAL INVESTMENT PLAN
Continuation Funding:
FY201748
➢ Detention Facility - $622,114
a Environment & Ag Center - $3.4M
s Solid Waste - $990,268
a Sportsplex - $465,000
0
i
FY2017-22 CAPITAL INVESTMENT PLAN
Policy Priorities:
FY201748
Community Centers - $75,000
a Economic Development - $2.3M
s EMS Substation Co-location - $845,000
a Facility Accessibility & Security - $30,000
�o Rural Broadband - $500,000
School Capital Improvements - $7.8M
O'
i
FY2017-22 CAPITAL INVESTMENT PLAN
Parks, Open Spice, and Trail
Development:
FY2017-18
�o Blackwood Farm Perk - $100,000
➢ Fairview Park - $50,000
�o Hollow Rock Nature Park - $10,000
a Perk Renovation & Repairs - $191,000
➢ Soccer Center Phase II - $300,000
0
i
FY2017-22 CAPITAL INVESTMENT PLAN
Information Technology and
0
Communications:
FY201748
➢ BOCC Initiatives
a Fiber Connections - $1 .2M
;o Infrastructure - $700,000
s ITGC Initiatives - $510,000
a Mobile Radios - $920,000
PS Communication Upgrades - $1 .4M
s Register of Deeds Automation - $400,00
FY2017-22 CAPITAL INVESTMENT PL,&N
Critical Infrastructure Improvements:
FY201748
s Facility Enhancements - $450,000
r HVAC Projects - $122,000
)o SHSC Renovation- $4.OM
ro Roofing and Facade - $102,444
FY2017-22 CAPITAL INVESTMENT PLAN
Future Capital Projects:
FY2018-19
Affordable Housing - $2,65M
rDetention Facility - $12.5M
r Community Centers - $100,000
EMS Substations - $1.5M
> Information Technology - $1.1M
Mobile Radios - $805,000
. P$rks Projects - $5.2M
> PS Communication Upgrades - $3.8M
zRenovation and Maintenance - $1.OM
School Capital Improvements - $48.4M
Solid Waste - $1.3M
y Southern Branch Library - $5.6M 0
SHSC Renovation - $5.2M
FY2017-22 CAPITAL INVESTMENT PLAN
Future Capital Projects:
FY2019-20,
: Community Centers - $1M
1Detention Facility - $7.5M
:EMS Substations - $700,000
. Information Technology - $1. 1M
�* Parks Projects - $17.0M
BPS Communication Upgrades - $3.8M
Renovation and Maintenance - $1 . 1M
School Capital Improvements - $8.8M
Solid Waste - $2. 1M
�* SHSC Renovation - $5.2M 0
FY2017-22 CAPITAL INVESTMENT PLAN
Future Capital Projects:
Fx2o2a21
Detention Facility - $7.5M
EMS Substations - $1.5M
Information Technology - $1.1M
Parks Projects - $13.6M
PS Communication Upgrades - $2.4M
Renovation and Maintenance - $1.2M
School Capital Improvements - $58.5M
Solid Waste - $1.3M
Sportsplex - $1.5M
FX2021-22
Economic Development - $2.2M
EMS Substations - $600,000
Information Technology - $1.1M
Parks Projects - $2.5M
PS Communication Upgrades - $2.4M
Renovation and Maintenance - $2.5M
Solid Waste - $2.2M
Southern Orange Campus - $2M
School Capital Improvements - $19.5M
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FY2017-22 CAPITAL INVESTMENT PLAN
NEXT STEPS:
BUDGET WORK SESSION 0
Review Capital Investment Plan April �
(CIP) Projects
Schools, Outside Agencies and May 25
Prioritization CIP projects
Budget Amendments and Resolution June 15
of Intent to Adopt
BOCC REGULAR MEETING D
FY2017-18 Operating and CIP Budget June 20
Adoption
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FY2017-22 CAPITAL INVESTMENT PLAN
Document Availability:
�oo Clerk to the Board of Commissioners
�oo County Finance and Administrative Services
Office
�o Orange County Libraries
�o Orange County Website
a www.orangecountync.gov
19
Attachment 2
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March 30, 2017
TO: Board of Orange County Commissioners
FROM: Bonnie Hammersley
County Manager
RE: Manager's Recommended FY 2017-22 Capital Investment Plan
I am pleased to submit the County Manager's Recommended Capital Investment Plan (CIP) for FY 2017-
22 for your consideration. The CIP serves two important functions. First, it authorizes capital
appropriations for the next fiscal year. If approved by the Board, County staff will proceed with
implementing these projects during the next fiscal year. The second purpose of the CIP is to plan for the
future. The Plan contains detailed recommendations for capital projects five years into the future and
more general descriptions of projects that would occur in the subsequent five years, projecting a total of
ten years into the future.
Recommended capital expenditures for FY 2017-18 total $27.5 million. Of this amount, $16 million is
recommended for County capital projects, $3.73 million is recommended for proprietary fund spending
including water and sewer projects, Solid Waste, and Sportsplex, and $7.78 million is recommended for
school capital improvements.
The recommended FY 2017-18 CIP represents a decrease of approximately $41 million compared to the
FY2016-17 Approved CIP. The FY2016-17 CIP included the first of three $40 million allocations ($120
million total) of general obligation bond funding for school capital projects and the first of two $2.5
million allocations ($5 million total) to fund affordable housing projects. When the bond funds are
excluded from this comparison, the total Recommended FY2017-18 CIP represents a decrease of
approximately$1 million compared to last fiscal year.
This memorandum describes projects that are recommended in the first year of the FY2017-22 CIP and
other significant changes that are recommended compared to the CIP approved last fiscal year.
Continuation Funding
Continuation funding is recommended for projects that are either currently underway or those for
which planning funds were appropriated in prior years.
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• Conservation Easements—Restructure Budgeting
The CIP recommends continuing funding for conservation easements as part of the Lands Legacy
program. However, due to the timing and funding requirements of easement acquisitions, the
$500,000 in annual funding has been consolidated to occur every other year in $1 million
increments. This appropriation is intended to provide matching funds for State and Federal
grants to acquire conservation easements to protect prime or threatened farmland, sensitive
natural areas and wildlife habitat, or water quality buffer lands in water supply watersheds.
• Detention Facility-$622,114
Planning work for a new Detention facility is recommended to continue in FY2017-18 with
construction funds budgeted to occur over two years, FY2018-19 and FY2019-20. This
represents a one year delay in the construction schedule based on continuing negotiations with
the State of North Carolina on an acceptable ground lease for the facility. If those negotiations
are unsuccessful, the professional services funds would be used to evaluate alternatives such as
building a new facility on the existing site. The total amount of funding recommended for this
project is consistent with prior years.
• Environment and Agriculture Center-$3.38 million
On March 21, 2017, the Board reviewed options for renovating or replacing the Environment
and Agricultural Center. The Board directed staff to proceed with renovating the facility on the
Revere Road site as the preferred option recognizing the need to add approximately $235,000
to the project costs. Concurrently, the Board asked staff to investigate potential alternative
sites along the Cornelius Street corridor in Hillsborough. Staff will report on those alternatives
prior to executing a construction contract for facility renovation. The amount of funding
recommended in the FY2017-18 CIP is consistent with the updated renovation costs. If an
alternative site is chosen, the funding amount will need to be amended.
• Southern Branch Library—New Schedule
In 2016, the Board authorized the County Manager to initiate discussions with the Town of
Carrboro Manager to create a development agreement for joint use of a facility at 203 South
Greensboro Street. The facility would include space for the County's Southern Branch Library as
well as Town offices and potentially other tenants. Based on the Town's schedule for
determining its space requirements and the integration of those requirements into facility
planning, funding for the construction phase of this project is recommended in FY2018-19.
Along with the recommended capital commitment for design and construction costs, the CIP
continues to recognize the additional operating expenses that will be required to operate this
branch, currently estimated at approximately$1.3 million annually.
Policy Priorities
The Board of County Commissioners adopted a variety of policy priorities in 2016 consistent with
existing Board goals. The CIP recommends funding associated with many of those priorities as well as
funding for projects that have been introduced and approved conceptually as part of the Board's regular
legislative process.
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• Community Centers-$75,000
The Cedar Grove Community Center opened in June of 2016. Funding proposed for FY2017-18
would install shower facilities at the Center for community members using the gymnasium and
exercise equipment.
• Economic Development—Water and Sewer Projects-$2.3 million
The Board expressed interest in defining economic development objectives and increasing the
number of living wage job opportunities in the County through economic development. The
County has previously appropriated over $7.4 million to build out water and sewer
infrastructure in the Buckhorn, Hillsborough, and Eno Economic Development Districts to
stimulate commercial and industrial development and job creation. The recommended CIP for
FY2017-18 adds $1.4 million to transfer the Efland sewer flow from the Town of Hillsborough to
the City of Mebane for more cost effective treatment and to increase the service area. The CIP
also adds $380,000 to the Hillsborough Economic Development District sewer and water
extension project due to revised cost estimates. Finally, the CIP adds $490,000 to the Eno
Economic Development District project for construction and project management.
• Emergency Medical Services(EMS)Substation Colocation-$845,000
The Board has encouraged intergovernmental cooperation with our municipal partners. The
FY2017-18 CIP recommends working with the Orange Rural Fire Department and the Town of
Hillsborough to collocate an EMS substation with a fire station and police substation. The
colocation opportunity reduces the initial cost of construction and promotes operating
efficiency through the use of shared community space. The new facility would be located in the
Waterstone development on land that is currently owned by the Town of Hillsborough. The
agencies are currently drafting an Interlocal Agreement that would govern the development
process and ongoing operating obligations of the parties once the facility is complete. The new
Waterstone EMS Station would replace the station currently located at the New Hope Fire
Station #2. This project also funds sprinkler system installations at the EMS Station on Revere
Road and the Eno Fire Station #2 which will house an EMS unit to provide a safe sleeping
environment for EMS staff and funds a station location study for future EMS station building
projects.
• Facility Accessibility and Security Improvements-$30,000
One component of the Space Study Work Group focused on facility safety and security. The CIP
recommends $30,000 in FY 2017-18 to fund access control systems at facilities housing the
Visitors' Bureau and Skills Development Center, Animal Services, court functions, and social
services functions. These access control systems will provide electronic access control and video
surveillance in security door access and camera installations.
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• Rural Broadband-$500,000
The Board has emphasized the need to improve broadband access to unserved and underserved
households. Many of these households are located in the northern and western portions of the
County. Although the County is not legally authorized to provide this service itself, current legal
advice suggests that the County could participate in a public private partnership that provides a
financial incentive for private providers to serve areas that would not offer a sufficient return on
investment to serve exclusively with private funds. The FY2017-18 CIP recommends $500,000 to
offer as a financial inducement to serve unserved households in northern Orange County.
Under this model, the County would conduct a competitive process to identify broadband
providers to participate in a public private partnership to build facilities and connect households
in Northern and Western parts of Orange County. Current research suggests that approximately
750 households could be served with this level of investment.
• School Capital Improvements-$7.78 million
The recommended CIP includes a total of$7.78 million to finance school capital improvements
and deferred maintenance. This amount is consistent with prior year allocations. This funding
comes from a mix of sources including lottery proceeds, Article 46 sales tax proceeds, and $1
million in debt financing specifically targeted at facility improvements in older schools. The first
$40 million allocation of a total $120 million in referendum approved bond proceeds was
approved in FY2016-17 with two subsequent allocations recommended to occur in FY2018-19
and FY2020-21.
Parks, Open Space,and Trail Development
The Board has consistently expressed support for parks, open space, and trail development that
preserve natural areas of the County and promote nature activities for County residents. This support is
represented by the Parks and Open Space Master Plan as well as the master plans that have been
adopted for each individual park property. The FY2017-18 CIP recommends funding for the following
projects:
• Blackwood Farm Park-$100,000
As the use of Blackwood Farm Park continues to increase, the FY2017-18 CIP recommends
$100,000 for mowing equipment to maintain the grounds and the creation of a disc golf course
to provide an additional recreational resource at the park.
• Fairview Park Site Mitigation and Improvements -$50,000
The Board of Commissioners approved a plan to create a new access entry and parking lot for
Fairview Park. That work is now completed. The funding proposed for FY2017-18 would
complete a site assessment to determine the scope of future landfill mitigation on the site.
These expenses would be reimbursed by the State Division of Environmental Quality.
Remediation funds with offsetting State support are programmed in FY2019-20, and new park
facilities are contemplated in FY2021-22.
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• Hollow Rock Nature Park(New Hope Preserve)-$10,000
The Hollow Rock Nature Park is a joint effort by Orange County, Durham County, and the Town
of Chapel Hill. Funding is recommended in FY2017-18 to deconstruct a dilapidated house
located on the property. Fifty percent of the cost is offset by a contribution from Durham
County. The CIP also recognizes increasing personnel costs of$47,000 associated with the first
full year of operating expenses.
• Soccer.com Soccer Center Phase Two-$300,000
Additional land was acquired in 2016 to expand the Soccer.com Center. The FY2017-18 CIP
includes $300,000 for professional design services for facility expansion expected in FY2019-20
for approximately $4.6 million. The expansion would construct two to four additional fields,
additional parking, restrooms, concessions, stormwater controls, and other amenities.
Information Technology and Communications
Significant information technology and communication improvements are financed through the Capital
Investment Plan. These projects maintain and expand the capabilities of the County's current
information technology infrastructure, employ new technologies to better meet the needs of County
residents, protect and store critical data, and improve internal operating efficiencies.
• Board of County Commissioners Technology Initiatives-$50,000
An additional $50,000 is recommended to fund technology priorities defined by the Board of
County Commissioners that may not be included in the other requests.
• Communication System Improvements-$920,000
The County has been engaged in a multiyear effort to replace its radio communication
equipment. For FY2017-18, $920,000 is recommended to begin the replacement of radios in the
Sheriff's Office. The first phase of the project would replace approximately fifty percent (50%)
of the most critical portable and vehicle mounted units while funding recommended in FY2018-
19 would complete the replacement of the remaining units at a cost of approximately$805,000.
• Fiber Connections for County facilities—Phase 1(Hillsborough) $1,160,000
The FY2016-17 recommended funds to engage an engineer to evaluate the possibility of
connecting County facilities with County owned fiber as an alternative to commercial network
connections. The County currently spends approximately $17,000 per month for these
commercial connections. County owned fiber installations would also offer the opportunity to
partner with municipalities and other public and private interests to share in the cost of the
fiber backbone. The FY2017-18 CIP recommends partnering with the Town of Hillsborough to
create a backbone that facilitates connections for the Whitted facility, Revere Road building,
Emergency Services Building, and Hillsborough Commons. Other County facilities located in
Hillsborough are already served by County owned fiber. Future investments could include
building out a north-south network from Cedar Grove to Carrboro and an East-West network
from the Buckhorn/Mebane Economic Development District to the Eno Economic Development
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District. The broader project would also be coordinated with other public sector entities to
leverage existing fiber resources and reduce the cost of installing fiber independently.
• Information Technology Infrastructure-$700,000
The FY 2017-18 recommendations for Information Technology Infrastructure would fund server
upgrades, end user device replacements, data storage, network improvements, and the
continued deployment of wireless capabilities.
• Radio/Paging System Upgrade-$1.4 million
The County has been working with police, fire, and other first responders to define needs for a
new emergency communications radio and paging system. The new system would improve
coverage and capacity while accommodating growth in the County's overall emergency
response system. Through the work of a consultant, an intergovernmental work group has
recommended collaborating with Durham County to construct and operate a new system. This
allows the County to leverage Durham County's core control equipment to prevent duplication
and unnecessary costs. The funds recommended for FY2017-18 would purchase engineering
services to create a detailed system design. The County has initiated discussions with each of
the Towns to share in the cost of the system.
• Register of Deeds Automation-$400,000
The Register of Deeds is pursuing a replacement of the software that is twelve years old and is
not able to provide the functionality to meet the needs of the department. This project will be
funded using automation fees that are specifically designated by State Statute to improve
technology capabilities in an Automation Enhancement and Preservation Fund.
• Technology Improvements-$510,000
The FY2018-18 recommendation includes technology improvements that have been
recommended through the Information Technology Governance Council. These new
technologies include a Crisis Damage Assessment application, video technology for the Sheriff's
Office to improve security and communication, a new electronic health records and billing
system, an update to the Department of Social Services' Laserfiche module which is no longer
vendor supported, an automatic vehicle location system for Animal Services, and Fleet
Maintenance Software designed to streamline and track service requests from departments.
Critical Infrastructure Improvements
The Recommended CIP also includes infrastructure investments that are important to the continued
safety, security, and maintenance of County facilities and operations.
• Government Services Annex-$350,000
The Government Services Annex currently houses the Board of Elections. Due to its location,
the building is vulnerable to flooding during extraordinary rain events. The CIP recommends
$350,000 in FY2017-18 to replace the current HVAC systems and to relocate the electrical
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distribution system from the basement to the first floor to protect the system from potential
water intrusions.
• Lower Link Center Remodel-$15,000
The FY2017-18 CIP includes funding for professional services to design a remodel of the lower
level of the John Link Jr. Government Services Center. The remodeled space could be used as a
replacement facility for the Public Defender's Office and as expansion space for the Criminal
Justice Resource Office. As the Criminal Justice Resource Office is projected to grow, its current
office space in the Courthouse will become inadequate. If the Public Defender were to vacate
the offices located at 129 East King Street, that facility could be repurposed or sold. A total of
$160,000 is recommended in FY2018-19 to complete the remodel.
• Old Courthouse Square—Building and Grounds Improvements-$85,000
The FY2017-18 CIP proposes to continue building and grounds improvements that were initiated
in FY2016-17. The FY2017-18 proposed projects include engaging a landscape architect to lead
a public input process, developing a master site plan, completing the second phase of an
archeological study, and retaining a structural engineer to recommend improvements to the
facility's overall structural stability.
• Southern Human Services Campus Improvements-$4 million
The FY2017-18 CIP combines projects related to the Southern Human Services Building and the
Seymour Center into one Campus Improvement Project. The combination of these projects is
intended to enhance construction efficiency on the site. The $4 million recommended in
FY2017-18 would complete access and site improvements for the campus including
straightening the main entrance road, improving stormwater facilities, adding parking to the
Seymour Center, and improving the traffic flow around the Human Services Center. Following
those access and safety improvements, facility renovation would begin in FY2019-20 which
would provide approximately 13,000 square feet of additional space for dental and medical
services and add 2,200 square feet of programmable space to the Seymour Center. These
facility improvements are currently estimated to be approximately $5.2 million and are
recommended for FY2019-20.
• Other Critical Infrastructure Improvements for 2017-18
o HVAC Projects - $122,000 to replace aging HVAC equipment at the Visitors' Center in
Chapel Hill, the Dickson House in Hillsborough, and a partial replacement of equipment
at the Seymour Center in Chapel Hill.
o Roofing and Building Facade Projects - $102,444 to replace roofing at the Visitors'
Center in Chapel Hill and the Whitted Facility in Hillsborough. These improvements are
consistent with the recommendations of the Roof Asset Management Plan updated in
FY2016-17.
Financing the Capital Investment Plan
The Recommended Capital Investment Plan for FY2017-18 totals $27.5 million in expenditures. Of that
amount, $22.5 million is recommended to be financed by County funded debt. Other significant sources
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26
of funds include Lottery Proceeds and Article 46 sales tax proceeds. Both of these sources are dedicated
to fund school capital needs and are estimated to contribute over $2.9 million to the resources used to
support the CIP.
Debt Capacity Target and Next Steps
County policy establishes a debt service capacity target of fifteen percent (15%) of general fund
revenues. The proposed debt service for FY2017-18 is expected to result in a debt service capacity
percentage of 12.8%. However, the projected debt service particularly associated with bond projects is
expected to exceed the County's current capacity target. As the Board considers the CIP, staff will
identify the years in which the debt capacity target is exceeded and work with the Board to prioritize
projects so that the Board is comfortable with the current and planned debt service capacity.
Finally, I would like to thank each of the department directors who contributed their creativity and
professional insights throughout this process. I would also like to thank the County's Finance and
Administrative Services team most notably Chief Financial Officer Gary Donaldson, Deputy Finance
Director Paul Laughton, and Budget Analyst Darrell Butts. Their sharp financial acumen, attention to
detail, and impressive work ethic shaped and produced the document we are introducing today for the
Board's consideration.
I look forward to working with you over the next several weeks to improve upon the Manager's
Recommended Capital Investment Plan. Please contact me or the Deputy Manager with any questions.
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