AGENDA #4d
TO: Mayor and Town Council
FROM: W. Calvin Horton, Town Manger
SUBJECT: Budget Ordinances for Town Operations Center Capital Project
DATE: November 24, 2003
The attached two budget ordinances would establish and amend multi-year capital project ordinances for the design and construction of the planned Town Operations Center based on the project budgets approved by the Council on October 27, 2003.
Ordinance O-1 would establish a new multi-year project budget for the Public Works and Public Housing portions of the project.
Ordinance O-2 would amend an existing multi-year project budget already established for the Transportation operations facility in accord with established procedures for accounting for projects with major federal and State grants.
BACKGROUND AND DISCUSSION
On October 27, 2003, the Council approved a project budget for the Town Operations Center totaling about $42,623,000 which includes new facilities for Transit operations, Public Works operations and Public Housing maintenance. Attachment A is a summary of the budgets approved by the Council for each portion of the project. Below is a brief description of the project ordinances we now recommend to account for the Public Works and Transportation portions of the project.
Public Works Operations Center Project Budget
Attached budget ordinance O-1 would establish a new multi-year project ordinance to account for the Public Works portion of the project. Expenditures to date have been accounted for in the Public Works Bond Fund established some years ago and have been funded primarily from the remaining 1996 Public Works bond funds. We now recommend establishing a new project ordinance to account for all future expenditures. This multi-year ordinance could be amended as needed by the Council.
We recommend a project ordinance for the Public Works portion of the project that totals $24,391,000. This amount includes about $24,305,000 as approved by the Council on October 27, $33,000 for additional conceptual and budget work by Corley, Redfoot and Zack between September 8 and October 27, and $53,000 for a pending right-of-way purchase.
Transportation Operations Center Project Budget
Attached budget ordinance O-2 would amend an existing multi-year project ordinance previously established to account for the initial conceptual design for the Transportation operations portion of the project. This multi-year ordinance could be amended as needed by the Council.
We recommend a total addition now of about $18,318,000 to this project ordinance based on the budget approved by the Council on October 27. Revenues for the project would include estimated sales tax refunds, local matching contributions from the Transportation Capital Reserve Fund, anticipated federal and State grants and proceeds from the Certificates of Participation.
Although there is uncertainty about the amount and timing of federal and State grants for the Transportation portion of the project, we believe that we could eventually receive a substantial portion of the total costs of this project from federal and State grants. The maximum amount that could be received from State and federal grants would total 90% of costs.
At this point we have received State and federal grant awards totaling about $1,483,000 for the initial engineering and design costs. Therefore, we recommend amending the project ordinance budget to reflect federal and State grants of $1,483,000, a contribution of $1,965,000 from the Transportation Capital Reserve Fund, $402,000 from sales tax refunds, and the balance of about $14,6856,00 to be funded from Certificates of Participation. The project ordinance could be amended as needed by the Council to accommodate additional federal and State grants that may be awarded in the future and lesser amounts funded from Certificates of Participation.
RECOMMENDATION
We recommend that the Council enact the attached capital project ordinances as discussed above to establish project budgets for the planned Town Operations Center project as approved by the Council on October 27, 2003.
AN ORDINANCE ESTABLISHING A CAPITAL PROJECT ORDINANCE FOR A NEW PUBLIC WORKS OPERATIONS CENTER (2003-11-24/O-1)
BE IT ORDAINED by the Council of the Town of Chapel Hill that, pursuant to Section 13.2 of Chapter 159 of the General Statutes of North Carolina, the following project ordinance is hereby established as follows.
SECTION I
Funds available for this project include proceeds from the issuance an of installment contract such as Certificates of Participation, local contributions from the Town, sales tax refunds and potential grants and agreements from federal or State agencies.
SECTION II
The Manager of the Town of Chapel Hill is hereby directed to proceed with the implementation of the project within the terms of any approved financing agreements executed and the funds appropriated herein.
SECTION III
Initial revenues anticipated to be available to the Town to complete activities as outlined in the project budget are as follows:
Amount
Proceeds from Certificates of Participation 23,850,000
Sales Tax Refunds 541,000
Total 24,391,000
SECTION IV
Initial amounts appropriated for the project are amended as follows:
Amount
Public Works and Public Housing Operations Center 24,391,000
SECTION V
The Manager is directed to report annually on the financial status of the project in an information section to be included in the Annual Budget, and shall keep the Council informed of any unusual circumstances.
Copies of this project ordinance shall be entered into the Minutes of the Council and copies shall be filed within 5 days of adoption with the Manager, Finance Director and Town Clerk.
This the 24th day of November, 2003.
AN ORDINANCE TO AMEND THE CAPITAL PROJECT ORDINANCE FOR A NEW TRANSPORTATION OPERATIONS CENTER (2003-11-24/O-2)
BE IT ORDAINED by the Council of the Town of Chapel Hill that, pursuant to Section 13.2 of Chapter 159 of the General Statutes of North Carolina, the following grant project is hereby amended as follows.
SECTION I
Funds available for this project include local contributions from the Town’s Transportation Capital Reserve Fund, grants and agreements from the Federal Transit Administration, and potential proceeds from debt financing agreements.
SECTION II
The Manager of the Town of Chapel Hill is hereby directed to proceed with the implementation of the project within the terms of grant agreements executed with the Federal Transit Administration and the funds appropriated herein.
SECTION III
Revenues anticipated to be available to the Town to complete activities as outlined in the project budget are hereby amended as follows:
Current Revised
Budget Budget
Town of Chapel Hill (local match from
Transportation Capital Reserve Fund) 172,950 1,964,950
Federal and State Grants 44,577 1,483,000
Proceeds from Certificates of Participation 0 14,685,577
Sales Tax Refund 0 402,000
Total 217,527 18,535,527
SECTION IV
Amounts appropriated for the project are hereby amended as follows:
Current Revised
Budget Budget
Transportation Operations Center 217,527 18,535,527
SECTION V
The Manager is directed to report annually on the financial status of the project in an information section to be included in the Annual Budget, and shall keep the Council informed of any unusual circumstances.
Copies of this project ordinance shall be entered into the Minutes of the Council and copies shall be filed within 5 days of adoption with the Manager, Finance Director and Town Clerk.
This the 24th day of November, 2003.
TOWN OPERATIONS CENTER
PRELIMINARY BUDGET
October 27, 2003
Public Works/Housing Transit TOTAL
Construction $17,264,754 $12,788,100 30,052,854
Equipment 1,719,080 1,828,200 3,547,280
Subtotal (a) $18,983,834 $14,616,300 $33,600,134
Off-site (utilities, roads, signals) 1,626,900 1,646,900 3,273,800
Demolition 126,500 126,500 253,000
Subtotal (b) $20,737,234 $16,389,700 $37,126,934
10% Design, value engineering,
testing 2,073,723 1,638,970 3,712,693
Subtotal (c) $22,810,957 $18,028,670 $40,839,627
1% for Art 228,109 180,286 408,395
Subtotal (e) $23,039,066 $18,208,956 $41,248,022
Relocation expense 44,000 13,000 57,000
Removal underground tanks 75,400 96,000 171,400
Subtotal (f) $23,158,466 $18,317,956 $41,476,422
Public Housing Maintenance* $1,120,400 1,120,400
Subtotal (g) $24,278,866 $42,596,822
Addition for Millhouse widening** $25,775
SUBTOTAL# $24,304,641 $18,317,956 $42,622,597
Sales Tax Refund - 540,700 - 402,000 - 942,700
TOTAL# $23,763,941 $17,915,956 $41,679,897
# Approved Oct. 27, 2003
* Including 10% for design, value engineering and testing
** Including 10% for design, value engineering and testing and 1% for art