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HomeMy WebLinkAboutAgenda 04-02-24; 4-b - Presentation of Manager's Recommended FY 2024-34 Capital Investment Plan 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: April 2, 2024 Action Agenda Item No. 4-b SUBJECT: Presentation of Manager's Recommended FY 2024-34 Capital Investment Plan (CIP) DEPARTMENT: County Manager's Office ATTACHMENT(S): INFORMATION CONTACT: Attachment 1. County Manager's CIP Bonnie Hammersley, County Manager, Transmittal Letter (919) 245-2300 Travis Myren, Deputy County Manager, UNDER SEPARATE COVER (919) 245-2308 Attachment 2. FY 2024-34 Capital Kirk Vaughn, Budget Director, (919) Investment Plan 245-2153 Presentation Attachment 3. Manager Recommended FY 2024-34 Capital Investment Plan Attachments 2 & 3 To Be Provided Prior to or in Conjunction with the Meetin_g; Will also be Available Electronically at: www.orangecountVnc.qov/budget/cip PURPOSE: To present the Manager's Recommended FY 2024-34 Capital Investment Plan to the Board of County Commissioners. BACKGROUND: Each year, the County produces a Capital Investment Plan (CIP) that establishes a budget planning guide related to capital needs for the County and Schools. The 10- Year CIP 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 2024-34 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 and 4% in sales tax growth annually over the next ten years. The CIP will 2 rely substantially on debt financing to fund the projects and these required debt amounts are fully integrated in the County's Long-Term Debt Model. FINANCIAL IMPACT: There is no immediate financial impact associated with the presentation of the FY 2024-34 Capital Investment Plan. It is a long-range financial planning tool with a financial impact in Year 1 (FY 2024-25), if the first year of the CIP is approved by the Board of County Commissioners with the adoption of the Annual Budget. SOCIAL JUSTICE IMPACT: There are no Orange County Social Justice Goal impacts associated with this item. ENVIRONMENTAL IMPACT: There are no Orange County Environmental Responsibility Goal impacts associated with this item. RECOMMENDATION(S): The Manager recommends the Board receive the presentation of the Manager's Recommended FY 2024-34 Capital Investment Plan and provide direction to staff in preparation of the April 9, 2024 Budget work session. 3 Attachment 1 ORANGE COUNTY NORTH CAROLINA April 2, 2024 TO: Board of Orange County Commissioners FROM: Bonnie Hammersley County Manager Travis Myren Deputy County Manager RE: Manager's Recommended FY2024-34 Capital Investment Plan We are pleased to submit the County Manager's Recommended Capital Investment Plan (CIP)for FY2024-34 for your consideration. This memorandum describes the project costs contained in the Recommended CIP, a plan for managing and financing those costs, and a summary of the specific projects Recommended in Year 1 of the Plan. This CIP marks an important next step in implementing several recently completed, foundational planning efforts. It begins to integrate the Countywide Strategic Plan, the School Long Range Optimization Plan, the County's Long Range Facility Plan, and the Climate Action Plan. Each of these planning efforts has created a multiyear blueprint to address critical facility needs and advance the goals and priorities of the Board of Commissioners. These preliminary blueprints are represented in the CIP for FY2024-34. Countywide Strategic Plan The Board's Adopted Strategic Plan includes six strategic priorities: Environmental Protection and Climate Action, Healthy Community, Housing for All, Multi-modal Transportation, Public Education/Learning Community, and Diverse and Vibrant Economy. These priorities are represented throughout the CIP, but the most pronounced examples include investments in sustainability and clean energy, a new behavioral health crisis diversion facility, and historic investments in school facilities and public safety. Each project page contains a header that indicates alignment with the Strategic Plan and the Climate Action Plan. 4 School Long Range Optimization Plan The County invested over$980,000 to create a plan to address unmet school facility needs. These needs were identified based on the condition of the facilities and whether spaces were adequate to meet modern educational standards. A consulting firm identified the total cost of addressing all school needs at this time is over $1 billion. The Board of Commissioners carefully balanced correcting those facility deficiencies with the financial responsibility that would be passed on to taxpayers to pay for those projects. Ultimately, the Board chose to seek voter approval to issue a $300 million general obligation bond and coupled that with $100 million of cash or pay as you go funding over a ten (10) year period. The General Obligation Bond is currently represented in the CIP in three equal tranches occurring in FY2026-27, FY2028-29, and FY2031-32. The County is currently working with the school districts to develop a more detailed bond plan that will delineate the specific projects that would be funded. The additional pay as you go funding could be used for planning, design, and high priority facility needs. The funding that has historically been included for school projects in the CIP, approximately $12 million annually, can also be used to correct high priority deficiencies. Assuming that the bond is approved in November, next year's plan will contain the specific projects and their sequencing over the course of the ten (10) year planning period. County Long Range Facility Plan The FY2024-34 CIP also includes new County projects as recommended by the County's Long Range Facility Plan. A consulting firm recommended a total ten-year plan that totaled $130 million. The Board again balanced needs and costs and chose a funding plan totaling $90.1 million. The CIP recommends projects totaling $86 million in County costs. County Long Range Facility-Man Projects Recommended 1 ' Year of Construction Project I County Cost FY2025-26 Justice System Space Needs $15,479,233 FY2027-28 Cedar Grove Conditioned Storage $2,635,200 FY2027-28 Emergency Services Headquarters $31,871,484 FY2028-29 AMS Office Conversion $3,641,385 FY2029-30 Recreation Facility $21,630,703 FY2030-31 Deconstruct Old Recreation Facility $1,095,784 FY2031-32 Southern Human Services $9,628,672 TOTAL $85,982,461 The first project in this table, Justice System Space Needs, was not specifically included in the County's Long-Range Facilities Plan. Since that Plan was finalized, justice system stakeholders asked County leadership to work together to take a more comprehensive view of criminal justice system operations and to create a facilities plan that more seamlessly integrates those operations. In response to this request, Asset Management Services is organizing a Justice System Space Needs Workgroup with the appropriate County staff and criminal justice Page 1 2 5 stakeholders. The Workgroup will review existing facility needs and analyze options that include a more comprehensive view of system and how it interacts with facilities. Since this Workgroup may recommend a different set of projects or different sequence of improvements, the Recommended Capital Improvement Plan combines the projects related to the criminal justice system that were included in the Plan such as the Link Building renovation, the District Attorney's Office relocation, and improvements to the Courthouse into a single new project,Justice System Space Needs.This aggregation of project costs totals approximately$15.5 million. The cost of the Emergency Services Headquarters was also increased by $1.7 million to integrate and Emergency Medical Services Substation to serve Northern Orange County. Integrating a substation into this facility eliminates the need to construct a stand alone facility in the northern corridor that was estimated to cost $5 million. As a result, that project was removed from the CIP. The cost of the County facility projects enumerated in the table also represents the County cost of the projects after applying outside revenue. The total cost of the Southern Human Services Project, for example, is $19,628,672. However, the Health Department has over $10 million available in Medicaid Maximization funds that have been reserved to apply to this project. Medicaid Maximization funds are one-time funds that must be used to improve the programs in which the funds were earned. The Southern Human Services project will make significant improvements to the Health Department's medical and dental clinics which would be an eligible, one-time use of Medicaid Maximization funds. Climate Action Plan The Board of Commissioners approved the Climate Action Plan in November of 2023. The Plan calls for both operating and capital improvements in County operations and in the community to reduce the greenhouse gas emissions. The FY2024-34 CIP includes over $6.4 million in specific sustainability projects. Sustainability • Recommended 1 ' Year(s) of Construction Project County Cost FY2024-25-FY2033-34 EV Charging for County Vehicles $2,579,374 FY2024-25-FY2033-34 Public EV Charging Stations $500,000 FY2024-25-FY2033-34 Solar Photovoltaic Installations $2,435,812 FY2030-34-FY2033-34 Community Resilience Hubs $848,000 TOTAL $6,363,186 The project costs represented in the table do not include other sustainability related projects such as the Community Climate Change Mitigation Grant Program ($9,531,900), the premium associated with purchasing fourteen (14) electric vehicles, or the sustainability features such as Page 1 3 6 geothermal heating and cooling and solar photovoltaic systems that are already embedded in the cost estimate for new and renovated County facilities. The FY2024-34 CIP introduces a Sustainable Building Policy in the Appendix to direct County departments to when designing, constructing, and operating County buildings in a manner aligned with stated Climate Action Plan goals. FY2024-34 Capital Investment Plan Cost and Financing Overview The recommended FY2024-34 CIP represents an increase of approximately $339.2 million compared to the FY2023-33 Approved CIP. This increase is primarily attributable to the $300 million general obligation bond, $100 million in pay as you go funding for school projects, and $86 million for new County facility projects. The FY2024-34 CIP also represents an increase in investments in public safety software($2.2 million), public safety vehicles($15.6 million) and new Climate Action Plan projects ($6.4 million). The first year of the Recommended CIP, FY2024-25, totals $51.5 million in capital investments. Of this amount, $16.2 million is recommended for County capital projects, $3 million is recommended for proprietary fund spending including Solid Waste, and Sportsplex, and $32.3 million is recommended for capital improvements to school facilities. Financing Sources Of the total Recommended CIP, $631.4 million is recommended to be financed using County funded debt. Other significant sources of funds include additional pay-as-you-go funds for schools and Lottery and Article 46 sales tax proceeds $175.9 million which are also dedicated to fund school capital needs. The Plan also includes approximately $39 million in pay-as-you-go or cash funding for County Projects to support design and architectural services and smaller projects with short useful lives. Debt Modeling Although the Board only appropriates funding for projects in the first year of the Plan, the CIP is a planning tool that projects future needs and the financial capacity required to meet those needs. This is done using a debt modeling tool that projects future debt service requirements and monitors compliance with the County's debt to general fund revenue policy over the full ten- year planning horizon. Debt Service Projected Tax Rate Impact Projected debt service ultimately requires a tax rate equivalent to pay the annual installments on borrowing. Based on the Recommended FY2024-34 CIP, a total tax rate increase of 8.88 cents may be required in FY2025-26. Of this amount, 3.41 cents is necessary to support the School General Obligation Bond, 2.68 cents is required to support the $10 million per year for school pay as you go funding, 1.04 cents must be dedicated to support new County projects, and 1.75 cents is needed for the balance of the CIP that includes pays for traditional capital projects. Page 14 7 Debt Capacity Target County policy establishes a debt service capacity target of fifteen percent (15%) of general fund revenues. Based on prior borrowing approved by the Board, this target is achieved in FY2024-25 at 13.09%. However, as money is borrowed for new school and County projects, the debt to general fund revenue ratio may reach as high as 19.89% in FY2033-34 if the general obligation bond is approved by voters. Both the projected tax rate impact and the debt to general fund revenue ratio are subject to change. Both are sensitive to factors such as tax base growth and project timing. As the tax base grows, each one cent on the tax rate generates more revenue. In addition, if project implementation lags the budgeted implementation date, the taxes required to pay for that debt are also postponed. Recommended Year 1 (FY2024-25) Projects Education Capital Improvements The FY2024-34 Recommended CIP includes a total of $32.3 million in traditional school capital improvements. • Annual School Facility Repair and Improvement Projects - $12.1 million The CIP includes annual allocations for school repair and improvement projects in each year of the plan. For FY2024-25, the annual allocation is $12.1 million. This annual allocation is used to fund a variety of smaller scale capital improvements in schools ranging from accessibility and classroom improvements to technology and sustainability projects. This allocation is financed by a mix of sources including general fund pay-as-you-go funding, debt financing, additional pay-as-you-go(from lottery proceeds), and Article 46 sales tax proceeds. The Plan assumes that the amount of debt financing increases by 2% each year while the amount of Article 46 proceeds increases by 4% annually. • Supplemental Deferred Maintenance - $21.2 million The Supplemental Deferred Maintenance Program was started in FY2020-21 to address deferred maintenance and life and safety improvements in school facilities. The program was designed to finance $30 million in school projects over three years on a schedule and sequence determined by the Districts. A second $30 million was authorized in FY2022-23 for a total authorization of$60 million intended to address deferred maintenance needs. Both installments of supplemental deferred maintenance were divided between the Districts using the average daily membership percentages at the time of the authorization. Chapel Hill-Carrboro City Schools has been allocated $35.7 million while Orange County schools has been allocated a total of$24.3 million. To date, the Districts have requested and the County has authorized $30.8 million. The balance of the funds has been scheduled over the next two years. Page 15 8 Chapel Hill-Carrboro City Schools has scheduled an additional $9 million in FY2024-25 followed by one additional installment of approximately $9 million in FY2025-26. Orange County Schools has scheduled $11.1 million in FY2024-25. These authorizations will complete the total $60 million commitment by the County. County Assets The FY2024-34 CIP is continuing to recommend repair and critical maintenance of County facilities and infrastructure. Many of the County maintenance and repair projects throughout the ten-year plan were recommended in a Facility Condition Assessment report. As a precursor to the Long-Range Facility Plan, the County retained a consultant to perform a detailed Facilities Condition Assessment of each County owned facility. This Assessment identified and prioritized the replacement of heating and cooling equipment, building fagades and windows, electrical systems, and roofing and created a ten-year replacement schedule for each category based on existing conditions, age, and expected useful life. These investments are intended to improve safety, resiliency, and improve service delivery to residents. • Behavioral Health Crisis Diversion Facility Site Acquisition -$1.1 million The Board of Commissioners has prioritized access to behavioral health services as part of the Countywide Strategic Plan. During FY2022-23, the County worked with an architect and an operations subject matter expert to conduct preliminary planning and cost estimation for a Behavioral Health Crisis Diversion Facility. This preliminary planning work culminated in the conceptual design of an approximately 27,000 square foot facility carrying a total construction cost of approximately $22.7 million. The FY2023-24 CIP authorized $2.1 million for design services.The FY2024-25 CIP is recommending funds to acquire a site for the facility located in Hillsborough for$1.1 million. The County is currently working with the Town of Hillsborough to annex and rezone the property. That process is expected to be completed by the end of calendar year 2024. Once those approvals are finalized, the County would proceed with design services using the funding already authorized. Given the complexity of the facility, design and bidding will likely take another six months. Construction funds are anticipated to be authorized and work commenced in FY2025-26. • Board of Elections Storage-$296,000 This project would construct secure storage in the back of the Board of Election office building to replace the existing temporary storage containers and allow for appropriate temperature- controlled storage of voting equipment. The project would add secure storage space and a ramp for loading and unloading voting equipment. The location of this expansion is outside of the floodplain which will keep the equipment safe from floods. • Climate Change Mitigation Project- $576,169 The Climate Change Mitigation Project was established in FY2019-20 to fund initiatives to combat climate change. The Board of County Commissioners subsequently revised the allocation to 50% for a county administered competitive grant program and 50% for school- Page 1 6 9 related projects. At that time, the Board of County Commissioners dedicated a quarter-cent of the property tax rate to fund this project. In FY2024-25, the quarter-cent tax is expected to generate approximately$576,169. Climate Change Mitigation funds are transferred into this multi-year capital fund each year so that funds that are unspent at the end of the fiscal year are preserved in the fund. • Courtroom Audio and Visual Upgrades - $60,000 This project continues audio and visual improvements to the Orange County Justice Facility Courtrooms. As with the upgrades performed in FY2023-24, this upgrade will improve the audio-visual capabilities for one final courtroom to conduct hybrid court sessions. This will allow courts to continue operations when in-person appearances are impossible or impractical. The state Administrative Office of the Courts (AOC) provided a portion of the funding for audio and visual upgrades for two courtrooms in FY2023-24. However, upgrading the remaining courtrooms is the County's financial responsibility. • Electrical Upgrades-$291,344 This project is used to update electrical systems including distribution panels, interior lighting, exterior lighting, transformers, and other related electrical items. As a standard practice, each replacement will follow Leadership in Energy and Environmental Design (LEED) standards by using the most current energy-efficient materials including Energy-Star rated products and LED lighting. For FY24-25, this project would fund exterior lighting at the Passmore Center and District Attorney Building Office and replace the uninterruptible power supply (UPS) in the 911 Center. • Efland Cheeks Community Center- $150,000 The Efland Cheeks Neighborhood Association has requested that the County expand the current Community Center. The CIP recommends an appropriation of$150,000 is to enclose the back patio at the Efland-Cheeks Community Center. Orange County staff completed an internal review of the options to expand the Center and concluded that due to impervious surface restrictions, expanding the footprint community center would be cost prohibitive. An alternative to adding impervious surface is to enclose the back patio which will provide an additional 360 sq. ft. for the center for programming. The staff is currently working with an architect on the design so that construction can begin this summer. • Facades - $210,285 The Facades Project includes the replacement of exterior doors, windows, and other exterior improvements. As standard practice, each replacement will be with the most current energy- efficient materials. Replacements are based on the current condition and useful life. Funding in FY2024-25 includes repairs at Southern Human Services, Justice Facility, Hillsborough Commons, Eno Mountain Communication Tower, and Animal Services. Page 17 10 • Facility Accessibility, Safety and Security Improvements - $318,886 This project funds a variety of facility safety and security improvements throughout the County. FY2024-25 funding is requested to upgrade an elevator Gateway Center and to add security upgrades including security cameras and card readers at Animal Services, District Attorney Building, Eno Mill, Eno River Parking Deck, Southern Human Services, and Whitted Building. • Fire Alarm and Fire Suppression System Replacements-$1,079,600 This project replaces fire alarm systems, fire suppression systems, fire door repairs and replacements, and emergency exit lighting. Replacements are based on the current condition and useful life of each system. The largest single component of the FY2024-25 project ($572,000) is to expand the dry sprinkler system in the Register of Deeds Office to protect historical records from water damage if the system is activated. Other components include an upgrade to the fire alarm system at the Justice Facility, and repairs and replacements of fire doors in other county facilities. • Generator Projects-$235,400 Funding of $235,400 is requested to replace existing generators at the Orange County Fuel Station and the Southern Human Services Center to prevent service interruptions during power outages. Replacements are based on the current condition of the equipment and its expected useful life. • Heating,Ventilation, and Cooling (HVAC) Projects - $255,509 This project is a combination of Heating, Ventilation, and Air Conditioning System replacements and the controls used to regulate those systems.The replacements and repairs are prioritized based on the current age, maintenance history, and facilities served. This project would fund HVAC improvements at the Visitors Bureau Offices, exhaust fans at Animal Services, a unit heater at the AMS Inventory facility, boiler piping at West Campus office building, and professional services for the HVAC equipment serving the 2nd and 3rd Floors of the Justice Facility. Each replacement is evaluated to use the most energy-efficient systems including conversion to geothermal systems. • Interior Finish Replacements - $270,100 The Interior Finish Replacement Project is used to replace facility finishes including carpet, tiles, flooring, and interior replacement needs. The FY2024-25 CIP recommends repairs at West Campus Office Building, improvements to the public restroom AMS Office Building, the construction of a clerk's station at the Justice Facility, repair of a movable wall at the Seymour Center, and carpeting at Southern Human Services. These replacements focus on the use of recycled materials, sustainable materials, and low to no volatile organic compound products. Page 18 11 • Parking Lot Improvements- $533,742 This project is a combination of parking lot repairs, resealing, and repaving across multiple county facilities. This includes evaluating each parking lot for safety and sufficiency as well as the addition of green spaces. The FY2024-25 funding would resurface the parking lot at Southern Human Services and resurface the original spaces outside of the Robert & Pearl Seymour Center. Replacements and repairs are guided by a Parking Lot Assessment study. • Plumbing Repairs - $212,155 The Plumbing Repair project is a combination of major plumbing repairs across multiple county facilities and includes backflow preventers, hot water heaters, sinks, toilets, water fountains, and other plumbing-related items. In FY2024-25, funding is recommended to replace the Animal Services water buffer tank and to add water valves and protection around the tank, replace water heater and water fountain at the Orange County Main Library, and to update plumbing fixtures at the Efland Cheeks Community Center. Each replacement is focused on water-saving devices such as aerators and dual handles in county facilities. • Public Electric Vehicle Charging Stations-$50,000 The Climate Action Plan identified the electrification of vehicles as an important strategy to curb greenhouse gas emissions. This project would be used to leverage grant funds to add publicly available electric vehicle charging stations throughout the County. Locations have been identified using an equity-informed process with a focus on public-facing land and facilities that are owned/operated by the public sector. Suitability was measured using weighted factors to identify the best locations for new charging stations. Weighted factors included average daily traffic, future development, population density, parks, multifamily units, subsidized housing, naturally occurring affordable housing, black owned businesses, air quality, points of interest, existing charging locations. • Register of Deeds Automation - $80,000 The Register of Deeds Automation project is funded using automation fees that are specifically designated by State Statute to improve technology capabilities in the Register of Deeds Office. Each year, the County budgets $80,000 which is allowed to accumulate over time to make significant technology investments. • Roofing- $55,000 The roofing project is used to maintain and replace roofing on County facilities. These replacements and repairs are prioritized based on a Roof Asset Management Plan. The funding recommended in FY2024-25 provides $55,000 for the annual roof inspection and repair program. • Solar Photovoltaic Systems- $779,559 Installing solar photovoltaic systems at County facilities is another important strategy to meet the County's goal of using 100% renewable energy by 2050. The FY2024-2025 funding request includes a feasibility study to determine which existing structures are good candidates for a solar photovoltaic system installation. Having turn-key solar-ready projects Page 19 12 will enable the County to take advantage of federal funding from the Inflation Reduction Act (IRA), and Infrastructure Investment and Jobs Act (IIJA). This project also funds the design and install a photovoltaic system at Southern Human Services. • Electric Vehicle Charging Station for County Fleet- $225,000 The Climate Action Plan recommends that the County transition its vehicle fleet to an electric platform. The FY2024-25 project would install electric 18 vehicle charging stations at six (6) different county facilities to charge county-owned electric vehicles. Level II charging stations would be installed at the Eno River Parking Deck (3), Hillsborough Commons (2), Justice Center (2), Southern Human Services (3), Transportation Services (6), and Whitted Complex (2) where electric vehicles are already assigned or planned for next year. The installation schedule for future years will be updated based on the vehicle replacement schedule working jointly with Fleet Services to ensure all staff have access to charging stations for county- owned electric vehicles. The plan allows for a 3% cost increase for electric vehicle charging stations in future years. • Sustainability Revolving Fund -$50,000 The Capital Investment Plan has historically included an annual recommendation of$50,000 per year to design and implement sustainability and renewable energy projects on County property and provide a source of local match for competitive grants. The recent passage of the Inflation Reduction Act (IRA) and the Infrastructure and Investment Jobs Act (IIJA) are providing historic levels of funding for climate action projects, so the scope of this project will focus on providing matching funding, if required, for those projects. This project will be utilized to recognize tax credits from the IRA to supplement other county sustainability funding. The lighting upgrades and Public&Staff EV Chargers that have been funded using this project in the past have been incorporated into other CIP projects for ongoing improvements. • Vehicle Replacements-$3,619,123 The FY2024-25 request for vehicles is higher than previous years due to a recommended investment of $2.6 million for public safety vehicles including fifteen (15) replacements for the Sheriff's Office, three (3) ambulances, and three additional vehicles for Emergency Services. The remaining $1 million would be applied to (1) Animal Services vehicle; (5) AMS vehicles, (1) Criminal Justice Resource Department vehicle; (2) DEAPR vehicles, (2) DSS vehicles, (1) Health sedan, (1) Library sedan; (3) Planning vehicles, (1) Fleet Services vehicle, and Enterprise lease buyouts (2). 14 of the proposed new vehicles are scheduled to be replaced with electric vehicles. Public Safety The FY2024-34 Recommended CIP includes investments that will support the County's public safety functions to modernize information technology systems and continue to reliably and Page 1 10 13 efficiently respond to emergencies. Vehicles for the Sheriff's Office and Emergency Services are included in the Vehicle Replacement project. • Bidirectional Antenna Systems for Schools- $800,000 Bidirectional Antenna (BDA) Systems improve interior building penetration for public safety radios. This coverage is essential during an emergency occurring in a school where the quality of radio coverage can suffer due to building construction standards. $1,836,000 has been authorized in FY2022-23 and FY 2023-24 to start the installations, and this additional funding is requested in FY2024-25 would complete those installations. In addition to improving coverage in the building, these BDA's will reduce the number of towers that would have been necessary to achieve countywide radio coverage in future years. • Communication System Improvements- $50,000 New technology is mandating the phased implementation of Time Division Multiple Access functionality to improve the overall capacity of the State's emergency responder radio system. TDMA compliance is required by 2025 to maintain access to the state managed VIPER radio system. The radio replacement process was initiated in 2004, and over $5 million has been allocated over time to ensure a consistent and modern radio platform for first responders. Specifically, this project replaces and/or upgrades portable radios in Emergency Services, the Sheriff's Office, and the Health Department. Funding in FY2024-25 of $50,000 will finalize the replacement and compliance plan, including replacement of the backup radios used in the 911 center. Future radio and replacement upgrades will be incorporated into the Emergency Services Renewal & Replacement project. • Emergency Services Renewal and Replacement-$593,205 The Emergency Services Renewal and Replacement Fund is used to replace mission critical Emergency Medical Services (EMS) equipment such as stair chairs, Lucas CPR devices, EMS treatment bags, and electrocardiogram (EKG) equipment. The department has developed a long-range recurring replacement schedule to forecast specific future needs which is represented in subsequent years of the CIP. • Public Safety Software Enhancements-$2,800,000 The FY2024-25 CIP recommends $2,300,000 to pay for the County's portion of the Computer Aided Dispatch (CAD) system and integration services between the public safety software systems. The CAD system allows the 911 Center to optimize first responder dispatch and to provide data to first responders in the field. The current CAD vendor is no longer providing meaningful development or adequate support for the County's current CAD product. The existing software was procured in 2013 and interfaces with systems utilized by all County law enforcement, Fire, and EMS agencies. This CAD replacement will be implemented within the Orange County 9-1-1 Center, County law Page 1 11 14 enforcement agencies, and County fire/EMS departments. The total cost of the CAD replacement is expected to be $3,600,000. The County is anticipating $1,300,000 in support from the E-911 Fund in addition to other potential grant funded sources. This project incorporates the Sheriff's Records Management System and the Jail Management System used by law enforcement agencies and consulting services for both the Emergency Services and Sheriff's systems as this project anticipates that both software upgrades will be implemented simultaneously. Information Technology Significant information technology and communication improvements are financed through the Capital Investment Plan. These projects maintain and expand the capabilities of the County's information technology infrastructure, employ new technologies to better meet the needs of County residents, protect and secure critical data and systems, and improve internal operating efficiencies. • Information Technology Infrastructure Initiatives - $882,000 The FY2024-25 CIP recommends $882,000 in Information Technology infrastructure investments. This project would fund $500,000 in infrastructure components related to server upgrades, desktop and laptop replacements, data storage, network improvements, wireless expansion and replacements, software implementation, and cybersecurity improvements/prevention/mitigation. Of this total funding in Year 1, $282,000 will be used to replace an estimated 114 laptops and an estimated 54 desktops that are over 6 years old. $100,000 will be used for Audio Visual upgrades in Whitted BoCC Conference Room and other County conference rooms for standardization. Parks, Open Space, and Trail Development The Board has consistently funded projects for parks, open space, farmland preservation, and trail development intended to preserve natural areas of the County and promote nature activities for County residents. Funding recommendations in this category are generally guided by the Parks and Recreation 2030 Master Plan, Lands Legacy Action Plans as well as the individual plans that have been adopted and are periodically updated for each park property. The FY2023-24 CIP recommends funding for the following projects: • Implementation of Neuse River Rules for Nutrient Management- $175,000 The State-mandated Falls Lake Nutrient Management Rules call for each jurisdiction in the upper Neuse River Basin to reduce total nitrogen levels by 77% and total phosphorus levels by 40%over a period of several years to improve water quality. Compliance with these rules would be costly to each of the local governments located in the basin. However, the Upper Neuse River Basin Association has successfully secured approval of an implementation approach that would be less expensive while still protective of water quality and includes a mix of storm water controls or wetlands improvements, conservation acquisitions and practices, and other methods. Page 1 12 15 The FY2024-25 project continues the effort to reduce total nitrogen levels in Falls Lake Reservoir. This project began in FY 2022 and will be an annual effort until Phase II of the Falls Lake rules are promulgated. Efforts continue by the Upper Neuse River Basin Association jurisdictions to revisit the nutrient modeling. Changing the model may also change the mandated nutrient reductions, but at this time, the reductions as noted above remain in place. • Parks and Recreation Facility Renovations and Repairs - $255,400 The FY2024-25 funding request addresses annual and ongoing safety, lighting, park infrastructure, signage, preventive maintenance and tree/landscape improvements in the County's seven parks. FY2024-25 also includes funding to transition appropriate landscape equipment that are due for replacement from fossil fuel engines to electric to reduce GHG emissions as recommended in the Climate Action Plan. This project provides ongoing funded park needs and initiatives identified in the 2030 Parks & Recreation Master Plan. Funding is assigned based on a biennial schedule of repairs and renovations planned for in advance. Each year the master list of scheduled projects is reviewed and prioritized, and the prioritized projects are proposed to be funded from this account. Long Range Projects The FY2024-34 Plan includes several significant priority projects. • Affordable Housing The FY2024-34 CIP contains a total of $15 million in staggered funding over the ten-year planning horizon. This is intended to provide a predictable source of subsidy for affordable housing developers. • Additional Community Center Space Needs The FY2024-34 CIP projects an expansion of the Community Center in the Rogers Eubanks neighborhood in the FY2025-FY2027 timeframe. With a total cost of approximately $2.3 million, the project also anticipates a funding partnership with the Towns of Chapel Hill and Carrboro consistent with the original cost sharing agreement. • Emergency Radio System Build Out Emergency Services has continued to evaluate the most effective and efficient approach to improving emergency radio coverage using the most current technology. A new concept for tower construction has been established, and an implementation plan is proposed to be funded at$32 million starting in FY2027-28. The County's share of this project is expected to be$24 million after partnership funding from the Towns based on the number of public safety radios utilized by each jurisdiction. • Millhouse Road Park This facility is planned as a joint Orange County/Town of Chapel Hill partnership (50-50 split Page 1 13 16 funding). The general concept plan has been to develop the park to feature a soccer complex to address the demand for soccer fields in the area. The County has been in discussions with a third-party soccer organization about partnering in the first phase of this project on a more- expedited timeframe. A master plan for the facility and a Memorandum of Agreement with the Town of Chapel Hill and the potential third party, if pursued,would be initiated in the summer of 2024 to prepare for the project. • Additional School Capital Needs Although the FY2024-34 CIP includes$400 million for school improvements over the next ten (10) years, the total capital needs identified by the consultant exceed that amount, so planning needs to occur during this time to make additional capital funding available for school improvements. • County Long Range Facility Plan The County has committed to a process to identify solutions to the space issues faced by the criminal justice system. Some funding is reserved in the plan for this purpose, but the outcome of that planning process is uncertain. In addition, the complete list of projects recommended in the County's Long-Range Plan was not funded. Additional planning also needs to occur for County projects to meet long range space needs. Gratitude and Appreciation The FY2024-34 Recommended CIP is the culmination of long term planning, creative thinking, and problem solving by numerous County staff. We thank them for their valuable contributions. The County's Budget Office, led by Kirk Vaughn and supported by Christy Dodson, provided exemplary support, advice, and attention to detail. In addition to the work of the Budget Office, this document includes valuable contributions from Alan Dorman, Assistant Director of Asset Management Services, Angel Barnes, Capital Projects Manager, Chaz Offenburg, Deputy Finance Director, and Gary Donaldson, Chief Financial Officer. This year's planning process was further enhanced by the input of the County's Sustainability Manager, Amy Eckberg, who helped the team review each project proposal through the lens of sustainability. We look forward to working with you over the next several weeks to improve upon the Manager's Recommended Capital Investment Plan. Please contact us if you have any questions. Page 1 14