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HomeMy WebLinkAboutAgenda - 03-15-2006-2ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: March 15, 2006 Action Agenda Item No. 2 SUBJECT: Budget/Capital Investment Plan (CIP) Drivers Discussion DEPARTMENT: Manager/Budget/Public Works PUBLIC HEARING: (Y/N) No ATTACHMENT(S): Table - Emerging Funding Considerations INFORMATION CONTACT: 2006 CIP Priorities and Drivers List John Link or Rod Visser, 919-245-2300 2/15/06 Budget Director Memo Excerpt Donna Dean, 919-245-2151 Projects Completed or to be Complete by Wayne Fenton, 919-245-2628 6/30/06 PURPOSE: To discuss programs, services, projects, and other factors that have the potential to create major impacts on the formulation of the 2006-07 County operating budget and 2006-16 Capital Investment Plan (CIP); and to provide guidance and direction to the Manager and staff concerning the Board's relative priorities among these operating and capital budget elements. BACKGROUND: At the January 20, 2006 annual planning retreat, the Board received a presentation on operational and capital considerations that may constitute significant "budget drivers" for the 2006-07 and 2007-08 fiscal years. Since that time, staff have actively assessed other possible budget factors, and have received additional input from Commissioners.. That information has been incorporated into the updated lists of budget and CIP drivers provided as attachments to this abstract. These by no means constitute either complete or final lists, as circumstances may develop during the coming months that would lead to items being added to or deleted from these lists. Moreover, it is unlikely that every item that may be mentioned will be able to be addressed in the next two fiscal years, at least to the full extent of current cost estimates. The Board of Commissioners' ongoing discussions about budget and capital priorities will provide important guidance to the Manager and staff in shaping the degree to which various potential budget drivers on the menu will be funded. Staff plan to supplement the materials provided as background with this abstract by means of a PowerPoint presentation at this March 15 work session. In addition to general BOCC discussion and guidance about budget and CIP drivers, staff recommend that the Board specifically allocate time to discuss the following subjects. Efland/Buckhorn/Middle School Water & Sewer Infrastructure As discussed at several recent BOCC meetings, staff estimate that the County will need approximately $1.5 million in additional capital funding to complete the Central Efland Water & Sewer Infrastructure project, with the reconfiguration of federal grant funding and the use of local County funds to complete water and sewer line extensions to the new Gravelly Hill Middle School, Staff will explain at this work session a variety of approaches the Board may wish to consider to generate the necessary additional infrastructure funding, including: 1) reallocation of unobligated capital project allocations from 2005-06 and preceding years (pursuant to the table on page 1 of the Budget Director's memo that was previously distributed for the February 16 BOCC work session); 2) earmarking of 2006-07 pay-as-you-go County capital funds; 3) debt financing by inclusion in the next planned alternative financing in late 2006 (the County would "front" the money and reimburse itself from alternative financing proceeds, after they have been issued); or 4) some combination of the above approaches The Board's guidance on the preferred approach(es) would help staff in crafting the appropriate capital project ordinances to implement the necessary capital appropriations at a subsequent Board meeting. The BOCC need not take specific action at this March 15 work session to appropriate the funds. Phasing In of 60-40 Capital Funding Policy Impacts The 2005-06 approved budget did not include full funding for the so-called 60-40 capital funding policy governing capital revenue allocation between school and County capital projects. Full funding of the policy adopted in May 2005 will require earmarking of the proceeds from an additional cent on the ad valorem tax rate for school recurring capital and an additional cent on the tax rate for County long-range capital, totaling approximately $2.4 million, Given the magnitude of potential impacts from the budget driver list the Board has previously discussed, the BOCC may wish to direct the Manager and staff to develop and present operating and capital budgets that would phase in the additional funding over a two or three year period, County Facility Needs Improvements In March 2005, staff presented a report to the BOCC that identified nearly $18 million in pending needs for repairs and maintenance to all existing County facilities (e.g. roofing, HVAC, flooring, parking lots, etc). These accumulated needs were actively considered by the Board in establishing the aforementioned 60-40 funding policy last year. With the additional capital funding provided by the Board for 2005-06, staff have been able to complete or set in motion a wide range of facility improvement projects that have begun to make a dent in the repair and maintenance backlog. Furthermore, it is timely for staff to report on some of the specific measures that have already been implemented in consonance with the energy conservation initiatives undertaken with the valuable leadership of Commissioner Halkiotis in recent months, FINANCIAL IMPACT: As noted in the attached background documents and in the staff presentations at this work session, RECOMMENDATION(S): The Manager recommends that the Board receive and discuss the information about potential budget and CIP drivers, and provide appropriate direction to the Manager and staff regarding the Board's priorities for funding in the 2006-07 operating budget and 2006-16 CIP. 00 O O N a C m n cz? N i m } m h L1, T - n y N N A N c N > ? 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[?l l7 M CJ M lry CI P P P P V P E 0 U O m 0 N N n> W N E d m O ° °v N L m 3 Q Ot O m N a N Y 3 °o n N c V N N O O N N L. m c N U U m a m D n O a m E N u i 2006-16 Capital Investment Plan Priorities and Drivers 1 Efland/Buckhorn Community Water and Sewer (including options for funding project completion) 2 Conservation Initiatives (including, but not limited to, energy and water) 3 Americans With Disabilities Act (ADA) Compliance 4 Structural Integrity of Existing Facilities (examples include, but are not limited to, roofs, water proofing, exterior reservation 5 Emergency Power Sources (examples include, but are not limited to, generators, generator-ready facilities, etc.) 6 Emergency Communications (examples include, but are not limited to, 800 megahertz radios and mobile communications devices for Sheriff, Emergency Services, Fire Departments, etc.) 7 Information Technology Needs (examples include, but are not limited to, field use (ruggedized vs, non-ruggedized equipment, replacement of legacy systems, network security and stability, etc.) 8 Alternative Fuel Vehicles 9 Solid Waste Convenience Centers Relocation 10 West 10 Soccer Complex Completion 11 Projects Identified in County Space Study 12 CHCCS Elementary #10 (including road/water/sewer infrastructure and school construction) 13 Orange Count Library 14 15 16 17 18 ilo To: John Link, County Manager From: Donna Dean, Budget Director Subject: Possible Options for Additional Funding for Efland Water and Sewer Date: February 15, 2006 Per your request, I have reviewed options for additional funding necessary to complete the water and sewer infrastructure in Efland. Possible solutions include (1) "deferring" currently available monies from County projects, (2) including monies in the alternative financing plans scheduled for issuance in April 2006, or (3) some combination of item 1 and 2. Any deferments that the Board pursues would be reinstated in the upcoming 2006 2016 CIP. Option 1. Borrow from Currently Available Funding in County Projects My review of County projects with available (unspent) funds included those funded with pay-as- you-go monies and 2004 two-thirds net debt reduction bonds (approved by the Board and issued in 2004). The review was centered on two areas - (1) availability of unspent funds and (2) criticality and timeline of current County projects. Examples of these projects include parking improvements at Whitted Human Services Center, equipment and vehicle replacements, Carrboro Library, roofing repairs, Central Recreation and Gym repairs, Jail renovations, water reduction systems and Blackwood and Cate Farm stabilization. The chart below offers my observation of projects, all or portions of which the Board may choose to defer (and replenish at a later date according to a schedule that facilitates timely completion of the affected project) to meet the funding shortfall for the water and sewer project: County Project Potential Funding Available to Offset Efland Water/Sewer Shortfall Source of 1+1 Funding Americans with Disabilities ADA Projects $50,000 PAYG Animal Shelter Repairs $29,000 PAYG Blackwood Farm Structure Stabilization $75,000 2004 Two Thirds Building Ent Access $50,000 PAYG Capital Repairs/Replacement (Emergency) Reserve $25,000 PAYG Carrboro Libra $50,000 PAYG Cate Farm Structure Stabilization $125,000 2004 Two Thirds Central Recreation Repairs $635,000 2004 Two Thirds Court Street Annex/112 N. Churton Street Repairs $25,000 PAYG Dickson House Repairs $7,500 PAYG Elevator Repairs & Improvements $70,000 PAYG Equipment and Vehicle Re lacemetns $267,000 PAYG Fire Alarm Systems $15,000 PAYG Flooring Replacements $241,000 PAYG HVAC Replacements $258,000 PAYG Historic Courthouse Repairs $15,000 PAYG Jail Renovations $625,000 2004 Two Thirds OHS Tennis Court Resurfacing $15,000 PAYG Painting Interior & Exterior of Facilties $127,000 PAYG Parkin Lot Repairs/Paving $140,000 PAYG Parks Operations Base $230,000 2004 Two Thirds Roofing Projects $200,000 PAYG Si na a $10,000 PAYG Solid Waste Convenience Centers Repairs $40,000 PAYG Utilities Extension Development $25,000 PAYG Water Demand Reduction Systems & Equipment $60,000 PAYG Waterproofing & Drainage $221,000 PAYG School Park Reserve Funding (2) $391,300 PAYG Total $3,942,800 PAYG = Pay-As-You-Go Funds; 2004 Two-Thirds = 2004 Two-Thirds Net Debt Reduction Bonds t2I Monies transferred from School Park Reserve to General Fund in June 2005 G_. PROJECTS COMPLETED OR TO BE COMPLETE BY END OF 06130/2006 Animal Control • Interior painting - Complete Animal Shelter • Installation of new cabinetry • Interior and exterior painting for kennels New Courthouse • Window repair and repainting - Battle Courtroom - Completed with in- house resources • Window repainting - in progress - In Progress with in-house resources EMS 911 Center • Parking area improvements • Will be revising the scope of work for HVAC system replacement to address basement level only, with move of most admin staff to new "Tweeter" building Clerk of Courts Annex • Wheelchair/access lift bid specifications completed Government Services Center • Installation of emergency power generator • Renovations and reconfiguration of space in Register of Deeds Central Recreation Building 0 Window bid specifications complete Planning & Agriculture Building • Exterior painting • Some interior painting • Re-stripping of parking lots lines, including clear delineation of parking for handicapped persons • Installation of ramp and walkway system for ADA compliant exit from Food Lab exterior door Jail • Replacement of booster water heater for kitchen Richard E. Whitted Human Services Center • Repairs to landing at Library entrance (first floor) Northern Human Services Center • Assisted with installation of kiln and creation of kiln room Southern Human Services Center • Installation of emergency power generator • Creation of additional workspace in lobby area Moody Building • Installation of carpet tile Conservation related • Have completed caulking and weather-stripping of windows and doors Have installed 20-25 programmable thermostats of 45 total identified for "round 1" • Have set back water heater temperatures where possible • Have insulated water heater tanks where applicable • Have installed timers on large electric water heaters • Limited delamping completed in select locations • Replacement of older T-12 bulbs and ballasts with more efficient T-8 - Government Services Center, Planning & Agriculture building • Most remaining incandescent bulbs replaced where feasible • Installation of additional waterless urinals • Verification of use of low flow fixtures wherever feasible • Verification of use of aerators Various • Roof asset inventory and assessment update - status - contract review with County attorney • Coordinating supply and installation of emergency power generators for EMS 911 Center and Eno Mountain Communication tower building