Loading...
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. z 01 2 1 . z = rali ical 14 Z F g 0,4 41 154 >-- z 0 _ 1.., o � Zz � - o 1 5 4 I CI 7 4 c.) p i v i c\1 g ,.,° 1 0 si ,w, tl ,i, . 0., g L " 04 (..) we o _Y3, ,41 Imo 1 W V ''' PA 44 Q 0 i „ N....e V p4 0 4,4 rg, i,� . 3 .L.1 , 1 z R., 0 N 0 = Pml *1 0 co ii it4 Z ,-1 o. 0 _ Cci OW. ° O z in w 111 in 4E; ;m E-1 (24 46 11141 fasi 711) g lw 5 $4 ct •ft) ;14 5 04 -4•; (264 •2 5 ›.) it4 im• •%14 0 ail, 0 %.4 04 0 E all o C24 z ;.0 o ;14 $24 CI) Cn -,-' ■ r = m 0 JCL � �X X X 0>. 000 00 a a) +, 000 00 a C L O N N >1 C c m >_ 00 co0O03 CO03 U 0 - LL }F N,- M CO CI *' N (O V M M 7 M U C > .a N d z w 11 l O N d L ›-N J ›- 0 N 14 , _ �: LL 2 a) r cc) i—' /1 icil . . . ) O kw.... . (I U< r � "*' r.- ›- O 6k 0 - ; . OPA L N m M d N r 1. L } f0 C 0 0 R� • m" Q >� — 0 0 >- U p 3 ++ f/) N N a 2 C (� /� ,_ -0 C 0 f�/� it I> D 0 to a 0 `v to D - .O V! -- L U N 0 U Q L N dO 0) ,� Q• � t E 0 C f/) C 0 L 0 } yN Q aaQ N m � 'NU t ° ia 0 it > 73 • N N m L 0 4)03 0LOw o0 } 14 C -0 • U (7) N C LL 0 O N N,- M CO� M diotl (T3 D `‘W C ++ O 0 0 2 } a N M M (�7 Cli w LC m ° m ° a iz III ^�, U f . -0 C N 0 co c do r! E ,-,W > r C C L - - .� I— N U C N U 0 L 5 C = 0 C U aN } 0 L E - m it L ' _-1 O - 0 6 •� N -0 N a 0 N •� CO CO @ 0 °0 00 0o 00 O 0. N U O C V i C 0 } p o 0 o 0 Cf: C 0 CO < CO N— r• 67 —0_ DI- — a le-, '. D = 8 S c9) A W co• Q E U 0 _c `•~ 3 , '~ '0 0 L L 0 N � *' N CO W 7, C U t L L U N 0 N N 0 +' -0 L 0 0 v 7 +, N N Q C N 0) .5, O - 0 U \ C L m N 0 0 0 " mN @ 0 0 ._ } � L U C 0 U �_ Q L L +, o 01 d O N '0 0 0 0 (6 d Q) a U m (� — _ Q. 2 L V 0 C > N U V O CA 7 i a 0 Q j o U C U Z i > i C Q C 0 — N `o +' m m m c m a k m m it IIII CD u ii co 0 L. 7 i U L }, N Q N +, L -0 +, ao3a 000z Omc (3,� 0 O. IL Q a U O N N +, N Z 3 w m ( LLB Z 0 Z a �• O > 0 -C N N O. N 0 0,0 0 0. 0,v(;)... w c) m Q k T.P1.11 L 0 0 0 0 +—' N (0 Z Q-1aOW ctiti0 Qa0Cc2 a � � ocn +� ma . au_ w z §. N o ca H 1201 0 c a -0 til •� c c >z LL u c 14%w No a Nei'! M Z LUL qt PT4 •• ggri ti X .i. ., al • En mr_Ti ›- . o PT4 g al -Co v Ln N Z F "h" 14 Z 414 14 lEm° P641 1.4 M CO_ N c N gloi14 u° co . iv 414 O O N CI) V LLLL M s— N to to -) N 0 0 a) 10 Ill M — C C u 00 CL- LL r1 N N i Cl KO O X 0 O at V' fll 15 J N v V 401 at O "1 2 n 6 N. N i N a '♦- N 12•1 0 i on C �O > E " o � N LLB O IW ■■A� w EM° FA 0 111 PO N 3 En c) t C 3 01 +• O * V co• . O H N C I.0 vii . M PA Lg g- o 5 * 0 ® A M D Alligli CO V 0 .0 Z. 0 cn C oo ° O ii. N Q .1 5 E -a 4o x d ...II I. 44/4 P't S S O v EMI =1 X il a {n "I Z 4 f co 00 41t4 i;T-0 • c pi. of 1 3,1 ,_. Ciii) i- gt . L' 0 0 " . °- N L O ry � O .r+ N 0 c Li. in O o c * uiil r. V yt . M v' A� 4.0 111 .0 a o 7 0 0 L N 00 .O It• WO 0 z w cl +, w _u 00141 = a a• _a c a) E-1 a 0 { 1 '4 PA N X ki.al N • • r-I E0 r" U. U. E 1E5 PA r-I N ■ N l' ;4 04 U- 11-0 ,4 14 v N 4t4 Er- th 1_, EI al Li. >_ PiiIii rami m <4 = r-I rob-1 c) >- alrC-1 I IND ■ U- C: all o 0 0 0 0 ?,_ �n C VI C VI C N N r-I el laill • a z Ito PT4 osi Xilo 924' I cn 1-11 ;11,0 44 CI) 5 610 to 0 ea 0 cc' r 1 QD 0 •—• 0 I w ati 0 14 PO •,) to d S <4 0 -w. co lc ..."1 co cio Emi 7:11 4 9) IT0 p—ii ;To Q 44\- 04 .,,, lw I 44 ° 44 d.9 CD / o .2 o 5 in 6 4) N „,t .2 o ci, I 111 0 1141 o. -4=1 IND 0 t... CD *f - ri foil ••=i 11-7 (3) 0 - 0 $2. 44 0 N imIli WI Ci) Ci) Pro c„) 441 0 0 0 co CD ° o Po o � X it, it, I ti: Z oo pp, ea PT4 X ite -..da i 0 co I r•lo 42 Oci 0 Zo 0 C:). ea 0 2 0 CI) Cn .•••• — IC 1 ..w cn oz:: E P4 Eat' +4 c),.., 4 g 0 r* 5 6 ;•44 1 0. 04 cp Im• u r' 4'4 -..D 0 _:: V 5 11 ii o .70° 0 74 0 11 p-1 w GD > 2 'A us% ail ozi 4e4 '' Q›,) 'AD tk.,,, 84) Ft.., .$24..4 •0-0 C) in 4e4 0 --' o 0 0 •,•••"' 4 ;i41 cs) t9 I:: Go 0 0 0 P% Cil 061 11 E 0 CI) 4.4 •-•4 "a t"IP i 0 0 Ci) Pr', as o 1-1 Po) ti: w 0 c.0 fino 4 � 0 o w 0 Q "4 � U w PA w g Cn 0 NOA A A A A A ;%4 r:61 441 co 44,Z 0 P•1 0 0 Z ° 0 ° o PT4 °c � rL o 0 4e, 1 c, ,at 0 o I w co 1-11 $01 cn sv Ea r.N4 •- 9?- "ir-, Imo ,-- 1 ifr , ro••• 1 0 ,‘, alo i_o 14 0 0.0 co - ;•ii s 04 0 p—ii 0.0 ,-, 0 41) cn kw.. 04 a4 lc '"1 4 co 4a 0 4e4 w 1E1 c) 1 -4',..,,, g .-4 i", cs ot rw z •,isi ;.4 (14 AI 44 rano 14 kim cp 4e4 cn 4i cis 0 p. -Ri , 1004 0 0 0 o o 0 0 w 0 . o g 49 61? *I A 0 (v1-4 i) •CL:ti g 11 IND I OA, • PW pe 01,,N4 8 , 0 ti 0 41 — i,-1 fid C., K1 � W � aCwxav� tom 0 w P4 raloil 0 N � C O 0.1 � o 4 •Tr Z ea 0). w I co 0 cp os EI ro iz •..i., c, cn 0 X c, A\‘' CIZ fr4 SM 44 ° 0 @ SMNI"I 5 g'io . o = ...., ,-0 . = . alto gv Ate ..t v—ii !•-, '4; 011 0 I = .ya, NI ,F.! 444 4 "c5 (i) it- , 05 ,,,,000 in 0 46- 1 44. .z in 4t4 0 4,) 0 I in 1 -11::: Il 4 Eh , .0=0 A 1 CD CS 0 Ili CP 5 as 0 .4ma ...° 0 " 4r4 F •.•i •,, 0 --W 51; V z tom, -wi :"ar4 0 0 .4.11 1::: 0 o Od 0 0 Z ""I 04 f■4I NI 0 0 ,%•%, 1■1 r 1 riso 0 co ....0 •F-4 w .... ..ial 1-0 0 N ..d 0 i,-1 u c_, in „ •—• 0 t 1 ,s,v • r" , ••=0 c„,) .-41 vir „..„ 0 t.. c) C I,) ms �O :� 0 u p o � E ,L .*ki ,. .0 44 ei mP-P0 .• A A A A A A! A 414 4Q44 M 0 a il); E-0 ° Z � o cp 0 iio X > 0 iio o to iTi• iTto CI) k te 44 CL• 1 0 0 PA � �1 0 if o o �• cp 0 4%ki V' I 14 Z d 1-0 1 Ts P 40), 0 , , 4t4 t a) o i 0 6 E-0 z .-0 , , 0 in 4sa " 1-1 F., ",, -4a, cfs ii4 (14 4• 0 > 4 a) , V 41,4 1/) c) ri4' A .417 a 0 ,..., ,..,, ,„, . (.... al 0 co ›, (14 g bo t%iiii p—ii 11-1 ;4e, Q u 5 , ,—• „.4.1 =1 ,,I cn is i.1 av 0 o cs I c i',.., '4> = 0 v '4.5 Nix4 = cng el' tio •IA A A A 44 C) PTO a 0 fli X X glig oo o ce, evi 1-1 iv z fr4 0 ,-11 X ea, II I 9 w w in to 0 • S 51. cp 0 -1w1 oa, 0 X X 0 , Po 0 0 1 Ci) ke, it, 0 imi P i; '14 5 >4 X WI al *Ai ;94. 0 tiV 0 W ct Cki 1 ise i 44 . 100 4 iro 11 4$ 0 >1) &4 I ° Witi' 64X1124 . 1"1 4 C) .1"I +41 40 CP) 4 44 446 ..4 5 CI PO ° 41t .0 4 ,e-;', o 0 9, I 1 -4•! ro ii 4 Q .2, EI ^' O s 0•1 $14 = ,. cii) e.i.; 2Q — os ,.. Icfs 0.,, 04 4 ›, ;.; 0 .:0000 •Fia) 40 4c11 ,,,,I A04-4 (/) .20s7goost ,, o u 4 0 � ,., . 0.'i a +� � °S $4 c9 1241-415 EU) EA in 0 > 15 i w N os 1 $.• ki — ,b4 0 0 iv ,,15 u 1 t, . uc0012Ecnot-or. uo4 •- ocn� DUCi0 = ,-11 f � A � w � � agvvvv tNi 4 t sii A A A A A 04 A A A A A A A In 0 4 Po 00 co i•I Gi5 cei 4 44- z X Ea ite 1 PT4 I I ca i•I in cp t x0 40- CD 0 )01 r.• g 1 V 0 cl) Cn ikw as 0 te LI cro 6 x $.0 0 0 " fr41 = I r" = g 0 1g _1_3(1) 16 $14 I es 0 I:4 .5 $141 (a O■il w (1) 1 069- 00s t24 4 4t4! � .,44 � 74 � "� +p to ' •-0 69 � EI 0 QQ .,4E.14.; Q0 ,,v i tv 014 r:14 414I4 44■; g *(1) ° 0 *a, 0 O •1 oin .. regoot 0 4e4 .7' , . 4 -ww Iwo p eomo U Nv CD U 'W Z . 1 Z 12101 5 t g •- 0 ,_, *I g24 *I 5 'a Cn P CA 0 7D *I tv s dl rn $41 ,..N4 u 0 0 V Q I c) C* P -ii" 0 $4 0 ,4 *." Cn t• 1-1100Xcioli,,,, ww00073 = 'mil 0 o r % 4.. .. .m 0 0 f* N %-01-4hr4p-or14 (1404cncnci) *kip 0 .ii A A A A A A A A A A w4; 401 w zx_ 1 fa4 z PA In Ci) G■l 1. 1 In G■ G■i PA ta ta ea r4 r, t , . , . N . Ch (1) En- (/) C\i 1-1 '`11) Ca) I +4 �, I O I g 0 g 4 Lez 4g4! .. 1-1 ,_ •• © a� cp ° inng O•* I O g cl 0 - O N Z a 111 � 4 •� ESL O 04 I� 14 .2 , E A 4 ., 7: - C.) I +a ro I -I 1.1 g C.) I -1-a ro c\i ti) O •� pWMC/ �+ M- � 0CDMC/ g l--1 4 Ak % + � C�,a •� C I a t +� C�,a •C C I cii) pip T.1 CZ g cDP ...i •v■i tn I elartZ O •O cz v) c„) (/) •/-10 v) 0 "l'a 0 eV4 al A:all. k " +D 0 •'— -2'3 0 04 N 4w:s O � +' P +a C..) CIS •- 42 + CZ Zc.)rli E cd to) owl .1,4 •_ , 4.1 E as 1_, 04 E 0 nr U) q rn O ' PI M ti p-- 0 7,:.1 A-a 0 tiP IZ Cli +CijCi) ti . C) 2 0 1.P., ;-I Gli g ci)I—I u c cl i cn v O 'a g o (2) 0p4 -irlirligcncncLop=“41.:iirlirligcncnci) NI $4414kilA A A A A A A A A N A A A A A A A A A 1°1 P4 jims 411 44 44 4 M ti 0 tao W cc km i W `g [--r 741 I., a) 4'1 t41 CI? Z 41 OZ W 4t 14 0 4 0 _p U ,o to 4 cz ,-0 74: Z r=c) 0 0 4-14 0 u) 1-4 0 cn (4) g W ca,) o4 c/D co co c) iv iv 4e4 W E z 0 ci) En� m � ca tkA � W > � E Cloi g 4 4'1 l'i cl) -54 ,`4'1 .-P 414 cZ o i— i-rca. ic, ,, c' Ci) Po Z' 4 sc7 z 1 ,"0 , ,,'—' ' .a c-)N �, E� ct .c, -2 W C) F7 +D g 14 0 C4 A-D c..) tz,e‘1 IND c.. w .2 0 — oi, cu -p 1-11 k A ., p;,, o ts to-0' o o o al ot LI 1 714 1 ,..,'—' C \lq 'rg Z G4 g .. 44 G4 o G4 w <1 ; 1 A0) W (2-1 •- Z in cz fr4 A CD W 0 •1.4 Ci) VI ;14 •- .- E eE in f�1 1 • 0 4t4 .1.4 •4 ci-ii co (A P. 4e4 o Pcs ;0 4 ge '') V ° :2 0 6 M■l i! . 44 fli •,,p4 0 0 pP, p.1,<4 Fl• 12" 0 0 g IP 4, cl3 Z Z t o Ini 4 5 0 0 tv N 4 c) C) N a 0 8 eq. 0 1401000 o E , o cso Soo 1.4 al z QQOOOA Q A A A A ; II I=1 0 19 Attachment 2 mum mum IIVIIVIIVIIVIIVIIVIIVI" E El 00000 MBE 00 00 0000 10000000 01, 1111 m 01�11 100 01 01110 1011111111v 00111 1111E° Erm"44 1000 11 00 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. 20 • 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. Page 12 21 • 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. Page 13 22 • 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. Page 14 23 • 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 Page 15 24 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 Page 16 25 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 Page 17 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. Page 18