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Home My WebLink AboutAgenda 06-09-20; Item 2 - Discussion and Decisions of FY2020-21 Capital Investment Plan 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: June 9, 2020 Action Agenda Item No. 2 SUBJECT: Discussion and Decisions of FY2020-25 Capital Investment Plan DEPARTMENT: County Manager and Finance and Administrative Services ATTACHMENT(S): INFORMATION CONTACT: A. FY2020-25 Capital Investment Plan Bonnie Hammersley, (919) 245-2300 Budget Amendment List Travis Myren, (919) 245-2308 (Any Updates to the list will be Gary Donaldson, (919) 245-2453 provided prior to the meeting) Paul Laughton, (919) 245-2152 PURPOSE: FY2020-25 Capital Investment Plan - Accept the Five Year Capital Investment Plan and Approve the Intent to Adopt Capital Funding for FY2020-21 . 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. Capital Investment Plan — Overview The FY 2020-25 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. The CIP has been prepared anticipating moderate economic growth of approximately 2% in property tax growth over the next five years, and 4% sales tax growth in Years 2-5. Sales Tax proceeds for Year 1 (FY 2020-21) are estimated to decline by 4.5% due to the current coronavirus pandemic. Many of the projects in the CIP will rely on debt financing to fund the projects. The items below include revisions made to the following Capital Projects since the presentation of the Manager's Recommended Capital Investment Plan on April 2, 2019: • At the May 14, 2020 Budget Work Session, staff included a revised Schools Capital Projects Summary reflecting adjustments made in regards to changes to the FY 2020-21 budgeted ADM percentages, based on changes made from the time of the original CIP presentation and the FY 2020-21 Manager's Recommended Operating Budget presentation. The impact of these numbers changed the CHCCS % from 60.14% to 59.99%, and changed the OCS % from 39.86% to 40.01%. 2 FINANCIAL IMPACT: The Five Year Capital Investment Plan is a long-range financial planning tool with a financial impact in FY2020-21, if the first year of the CIP is approved by the Board of County Commissioners with the adoption of the Annual Operating Budget. SOCIAL JUSTICE IMPACT: There are no Social Justice Goal impacts associated with this item. ENVIRONMENTAL IMPACT: There are no Orange County Environmental Responsibility Goal impacts associated with this agenda item. RECOMMENDATION(S): The Manager recommends that the Board accept the Five Year Capital Investment Plan and Approve the Intent to Adopt Capital Funding for FY2020-21. BOARD OF ORANGE COUNTY COMMISSIONERS(BOCC) Agenda Item 2 ATTACHMENT A 3 DRAFT-CIP Amendment List Amendment# Sponsor CIP Budget Page Department Amendment Amount 20-21CIP-001 Commissioner Dorosin 135 Educatioin Move the Durham Tech Expansion Project planning $ 1,000,000.00 up to year 1 20-21CIP-002 Commissioner Dorosin 135 Education Move Durham Tech Expansion Project phase 2 up to $ 14,000,000.00 ear 2 20-21CIP-003 Commissioner Dorosin 135 Education Move the Durham Tech Expansion Project phase 3 $ 11,547,911.00 up to year 3 20-21 CIP-004 Commissioner Dorosin Various County CIP Projects Delay the following CIP projects from Year 1 (FY 20- $ (3,200,000.00) 21)to Years 6-10: Conservation Easements ($1,000,000);Roofing Projects(25,000);EMS Substation-Morgue Project($675,000);Blackwood Farm Park($350,000);IT($900,000);Vehicle Replacements($250,000) 20-21 CIP-005 Commissioner Dorosin Various County CIP Projects Delay the following CIP projects from Year 2(FY 21- $ (8,479,526.00) 22)to Years 6-10: Soccer.com($4,589,000);some IT Infrastructure($1,500,000);Millhouse Road Park ($400,000);Lands Legacy($500,000);Lake Orange Dam($50,526);Little River Park,Phase II ($500,000);Roofing Projects($250,000);Twin Creeks Park($220,000);Old Courthouse Square ($220,000);Vehicle Replacements($250,000) 20-21 CIP-006 Commissioner Dorosin Various County CIP Projects Delay the following CIP projects from Year 3(FY $ (14,868,385.00) 2022-23)to Years 6-10: Millhouse Road Park ($6,400,000);Twin Creeks Park($3,780,000); Conservation Easements($1,000,000);Blackwood Farm Park($300,000);Fairview Park($2,000,000); Courthouse Square($390,000);IT($748,385); Vehicle Replacements($250,000) 20-21CIP-007 Commissioner Price 135 Education Move the Durham Tech Expansion Project planning $ 1,000,000.00 up to year 1 20-21CIP-008 Commissioner Price Various County CIP Projects Remove the following CIP projects from Year 1 (FY $ (1,100,000.00) 20-21): EMS-Substation-Morgue project ($675,000);Millhouse Road Park($300,000); Roofing Project($25,000);Vehicle Replacements ($100,000) 20-21CIP-009 Commissioner Price 135 Education Move Durham Tech Expansion Project phase 2 up to $ 14,000,000.00 year 2 20-21CIP-010 Commissioner Price Various County CIP Projects Delay the following CIP projects from Year 2(FY 21- $ (6,041,300.00) 22)to Years 6-10: Soccer.com($4,589,000);some IT Infrastructure($382,300);Little River Park,Phase II($500,000);Roofing Projects($250,000);Twin Creeks Park($220,000);Vehicle Replacements ($100,000) BOARD OF ORANGE COUNTY COMMISSIONERS(BOCC) Agenda Item 2 ATTACHMENT A 4 DRAFT-CIP Amendment List 20-21CIP-011 Commissioner Price 135 Education Move the Durham Tech Expansion Project phase 3 $ 11,547,911.00 up to year 3 20-21 CIP-012 Commissioner Price Various County CIP Projects Delay the following CIP projects from Year 3(FY $ (10,930,000.00) 2022-23)to Years 6-10: Millhouse Road Park ($6,400,000);Twin Creeks Park($3,780,000); Blackwood Farm Park($300,000);Courthouse Square($350,000);Vehicle Replacements ($100,000) 20-21CIP-013 Staff 44 Roofing Projects Remove$25,000 from Year 1 (FY 2020-21)and $ (275,000.00) $250,000 from Year 2(FY 2021-22)related to the Design Costs and Roof Replacement of the Main Library 20-21 CIP-014 Staff 53 EMS Substations Reduce the Morgue portion of the EMS Substation $ (675,000.00) project in Year 1 (FY 2020-21)from$1.2 million to $525,000 20-21 CIP-015 Staff 82 Solid Waste Projects Defer Recycling Operations-Vehicle/Equipment $ (570,800.00) Replacements of$570,800 from Year 1 (FY 2020- 21)to Year 2(FY 2021-22)