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HomeMy WebLinkAboutAgenda - 10-18-2005-5dORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: October 18, 2005 Action Agenda Item No. 5-d SUBJECT: Approval of School and County Capital Project Ordinances DEPARTMENT: Budget PUBLIC HEARING: (YIN) No ATTACHMENT (S): Attachment 1. County Capital Project Ordinances Attachment 2. School Capital Project Ordinances by School District (under separate cover) INFORMATION CONTACT: Donna Dean 245-2151 PURPOSE: To approve Schcol and County capital project ordinances for fiscal year 2005-06. BACKGROUND: On June 23, 2005, the Manager presented recommended 2005-15 Capital Investment Plans (CIPs) for the County as well as both School systems, While the Board discussed the plans during budget deliberations throughout June, there were a number of capital and debt related matters that the Board chose to discuss further at a fall 2005 work session. To that end, Commissioners approved some Level 1 County and school capital projects for fiscal year 2005-06 on June 23, 2005, while delaying action on other capital matters until fall 2005, Items deferred to the fall work session included additional review of the County's capital funding policy, revised fiscal year 2005-06 funding recommendations far County capital projects, and an updated debt issuance schedule and debt capacity charts. As a point of clarification, the Board of Commissioners' November 2001 capital funding policy defines project "levels" as follows: • Level 1 projects are those that involve a relatively small scope of work -thereby allowing the Commissioners to approve the entire project ordinance at one time. • Level 2 projects are major projects that require several phases to complete. For these projects the Board of County Commissioners approves afour-phase appropriation process to include: o Concept/Pre-Planning Phase -includes preliminary programming and design work that would result in conceptual drawings and preliminary cost estimates, o Planning Phase -includes siting and infrastructure o Design and Construction Approval Phase -includes final design, equipment, furnishings, non-recurring start up cost, technology and contingency z o Final Accounting Phase -Upon completion of the project, school and county staff will reconcile actual project expenditures with approved budget and provide the BOCC with a "final accounting" of the project, Many of the Level 1 capital project ordinances approved by the Board in June did not involve new funding appropriations, but merely extended the project timelines through June 30, 2006. Other County and school projects received new funding for the current fiscal year where appropriations needed to be in place in order to accomplish work during summer 2005. At the September 13, 2005 Board work session, Commissioners approved fiscal year 200.5-06 County capital funding appropriations along with 2004 two-thirds net debt reduction bond allocations for County capital projects. Both school systems have requested Commissioner approval of the remaining Level 1 projects that the Board deferred in June, As stated earlier, approval of Level 2 projects, those projects that require several phases to complete, will be requested at the appropriate times in accordance with the Board's adopted School Planning and Funding Policy over the life of the major project, Examples of Level 2 projects include OCS Middle School #3 and CHCCS High School #3. With regard to County owned vehicles and equipment, the County has historically funded those through its ten year Capital Investment Plan (CIP). Examples of the types of purchases made with annually appropriated monies include replacement of same portion of the Sheriffs vehicle fleet and Emergency Services vehicles, including ambulances, as well as replacement of other County department vehicles and major equipment (not including Information Technology-related equipment). For the current fiscal year, the BOCC-approved CIP includes plans to purchase County equipment and vehicles through a combination of alternative financing arrangements as well as pay-as-you-go-funding. Over the coming months, the Manager and Budget Staff will work with individual departments to explore various options far meeting departmental equipment and vehicle needs. The Manager will approve all individual vehicle and equipment purchases prior to the items being ordered, At this time, staff anticipates the need to pursue funding arrangements that include athirty-six month period and another for a period of fifty-nine months. The life expectancy and cost of the equipment or vehicle would determine whether it was financed for the shorter or longer-term period. Staff also plans to explore options for alternative fuel vehicles and incorporate those options as feasible. FINANCIAL IMPACT: The financial impact is included on the individual County and School capital project ordinances, RECOMMENDATION(S): The Manager recommends that the Board of County Commissioners approve the attached County and School Capital Project Ordinances.