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HomeMy WebLinkAboutORD-2024-031 Durham Tech Orange County Campus Expansion Sustainability Enhancements and Approval of Budget Amendment #2-A 1 ORD-2024-031 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: October 15, 2024 Action Agenda Item No. 6-a SUBJECT: Durham Tech Orange County Campus Expansion Sustainability Enhancements and Approval of Budget Amendment #2-A DEPARTMENT: County Manager ATTACHMENT(S): INFORMATION CONTACT: 1. Durham Tech Memorandum Kirk Vaughn, 919-245-2153 2. Year-to-Date Budget Summary JB Buxton, Durham Tech, 919-536- 7250, ext. 6003 PURPOSE: To consider approval of a Durham Tech Orange County Campus expansion funding request to meet sustainability goals and consider approval of Budget Amendment #2-A. BACKGROUND: In designing its upcoming expansion to the Orange County Campus, Durham Tech identified four sustainability targets to achieve as compared to standard building construction. These are: • 25% reduction in energy use and associated carbon emissions • 35% reduction in indoor water use • 45% reduction in lighting energy use • 100% reduction in outdoor water use In order to acheive these goals, the Community College identified two purchases that were outside of the original scope of the construction, and would require additional funding by the County. The first is the purchase of an all electric heat pump HVAC system. This would incur an additional $159,000 above the scope of the initial budget. The second purchase is to convert all light fixtures in the current facility to LED. The cost of installing LEDs in the expansion is already funded. The conversion in the existing facility would have a cost of $116,000, and would have an estimated return on investment in less than eleven (11) years. These two purchases would require approval of Budget Amendment #2-A, adding $275,000 in additional debt financing to the current project budget of $11 million for the expansion. This would amend the following project ordinance in the School Capital Fund as follows: 2 Durham Tech Orange County Campus Expansion ($275,000) - Project# 55000 Revenues for this project: Current FY 2024-25 FY 2024-25 FY 2024-25 Amendment Revised Debt Financing $11,000,000 $275,000 $11,275,000 Total Project Funding $11,000,000 $275,000 $11,275,000 Appropriated for this project: Current FY 2024-25 FY 2024-25 FY 2024-25 Amendment Revised Project Expenditures $11,000,000 $275,000 $11,275,000 Total Costs $11,000,000 $275,000 $11,275,000 FINANCIAL IMPACT: The approval of Budget Amendment #2-A would add $275,000 to the School Capital Fund. The additional borrowing will cost the County an estimated $429,688 over twenty (20) years, with a peak annual cost of $27,500. The proposed additional funding is not estimated to change the tax impact for the ten-year Capital Investment Plan. ALIGNMENT WITH STRATEGIC PLAN: This item supports: • GOAL 1: ENVIRONMENTAL PROTECTION AND CLIMATE ACTION OBJECTIVE 1. Identify the priorities and resources necessary to implement the Climate Action Plan. OBJECTIVE 2. Invest in our infrastructure to reduce the environmental impact of the County fleet/facilities and improve safety. RECOMMENDATION(S): The Manager recommends that the Board receive the funding request from Durham Tech to meet sustainability goals with its Orange County Campus expansion and consider approval of Budget Amendment #2-A to fund the two proposed purchases outlined above.