AGENDA #2
BUDGET WORKING PAPER
TO: W. Calvin Horton, Town Manager
FROM: Bruce Heflin, Assistant Town Manager
SUBJECT: Capital Improvements Program Priorities
DATE: March 8, 2006
This budget working paper describes proposed Capital Improvements Program funding priorities for 2006-07.
BACKGROUND
The Capital Improvements Program is a 15-year plan for financing the Town’s major capital and infrastructure requirements. The plan identifies and prioritizes capital projects and potential funding sources, including the Capital Improvements Fund, Bonds, State and federal grants, and other sources.
The recommended 2006-21 Capital Improvements Program includes a $1.7 million Capital Improvements Fund budget for 2006-07. This report provides detail as to how the preliminary 2006-21 Capital Improvements Fund budget was prepared and how projects have been prioritized.
DISCUSSION
The Preliminary Capital Improvements Program includes two Capital Improvements Fund scenarios for 2006-07: a “base budget” and a $1.7 million budget. The base budget reflects only those projects which the Town is contractually obligated to fund in the next fiscal year. The $1.7 million budget was based on the capital program budget projection in the adopted 2005-06 Budget.
We developed the preliminary $1.7 million Capital Improvements Fund budget based on our assessment of the most urgent capital needs and the priorities of the Council. The capital projects we identified emphasize repairs to Town facilities, including buildings, greenways and parking lots. Other projects address safety issues, energy efficiency, provide required local matching funds, and replace aging systems.
PRIORITIES
In the tables below we prioritize Capital Improvements Fund projects we identified for funding in the Preliminary Capital Improvements Program.
Table 1: Base Budget, $283,000
The Town is contractually obligated to fund the following in 2006-07. The $283,000 funding level would meet contractual obligations only.
|
Priority Ranking |
Project Name/Description of Need |
Preliminary CIP: 2006-07 |
Running Total |
|
1 |
Roof Replacements Town Hall, Fire Stations #2 and #3 $265,000 10-year installment financing paid for roof repairs completed at Town Hall and Fire Stations 2 and 3 in 2004. This is the third payment of 10 installments. |
$37,000 |
$37,000 |
|
1 |
IFC Shelter – Exterior Capital Repairs: Installment Debt Payments $450,000 10-year installment financing funded a number of exterior repairs completed in August 2004, including roof repairs and replacement of windows at the Old Town Hall/IFC Shelter. This is the third payment of 10 installments. |
$56,000 |
$93,000 |
|
1 |
Museum Roof: Capital Repairs – Installment Debt Payments $60,000 10-year installment financing funded the replacement of the roof on the Chapel Hill Museum in 2002. This is the third payment of 10 installments. |
$8,000 |
$101,000 |
|
1 |
Hargraves Center/A.D. Clark Pool Capital Repairs $1,200,000 10-year installment financing funded the renovation of Hargraves Community Center and the A.D. Clark pool facility in 2003. This is the fifth payment of 10 installments. |
$152,000 |
$253,000 |
|
1 |
Tennis & Basketball Court Capital Repair Installment Payments $240,000 10-year installment financing funded repairs made to tennis and basketball courts at Cedar Falls, Community Center, Hargraves, Umstead, Homestead, and Oakwood parks. Work was completed in 2004. This is the third payment of 10 installments. |
$30,000 |
$283,000 |
Table 2: Capital Program Priorities
The table below lists projects in addition to those shown in the base budget (Table 1) in recommended order of priority. The priority ranking emphasizes funding capital repairs and maintenance of Town facilities, including buildings, parks and greenways.
|
Priority Ranking |
Project Name / Description of Need |
Preliminary CIP: 2006-07 |
Running Total (continued) |
|
1 |
BASE BUDGET (See Table 1) |
|
$283,000 |
|
2 |
Extraordinary Maintenance, Emergency Repairs The Town frequently must make unanticipated repairs at Town facilities such as roof repairs, HVAC system repairs, and swimming pool mechanical system repairs. Comment: Extraordinary maintenance funds are critical to Town operations. For example, these funds were used to make major repairs to the Town Hall air conditioning system. |
$85,000 |
$368,000 |
|
3 |
Curb Cut Improvements - ADA Compliance The Town is retrofitting curb ramps by installing truncated domes that alert pedestrians with vision impairments of their approach into a street. The inclusion of funds in the Town’s annual CIP confirms our commitment to meeting ADA requirements as presently interpreted to include truncated domes. We also believe that this plan satisfies legislative intent. Comment: The Town is legally required to complete these projects. |
$25,000 |
$393,000 |
|
4 |
Community Center Capital Repairs– Installment Debt Payments $224,000 included in the 2005-06 CIP represents the first annual payment on $2 million in installment financing which would pay for repairs and building improvements, including the addition of HVAC for the gymnasium. Comment: The project would address needs at a popular community facility that is in poor condition. |
$310,000 |
$703,000 |
|
5 |
Jay Street Paving The project would pave a currently unpaved portion of a Town maintained street. A reduction in air-borne dust pollution could also be achieved by this project. Comment: The Town Council approved a paving petition for Jay Street in March 2004. |
$16,000 |
$719,000 |
Table 2 (Continued): Capital Program Priorities
|
6 |
Town Hall: Replacement of HVAC Units The 16-year-old rooftop HVAC units are at the end of their life cycle; HVAC units typically are replaced every 15 years. Repairs to the units are being made more frequently. There is an opportunity to use an additional $90,000 in Energy Bank Bonds to add a computer-controlled energy management system. Comment: The new units likely would require fewer costly repairs compared to the existing system; it also would improve energy efficiency at Town Hall. The total yearly savings that could be achieved through the installation of this system is approximately $15,000 to $20,000. |
$280,000 |
$999,000 |
|
7 |
Town Hall Vestibule Doors Comment: Town Hall currently does not have ADA compliant entrances. |
$135,000 |
$1,134,000 |
|
8 |
Mobile 800 MHz Radios for Fire Apparatus and Command Vehicles Project provides for the purchase of sixteen (16) 800 MHz radios to complete the transfer to an 800 MHz system. This will result in greater radio dependability and interoperability and allow for better and safer communications by allowing multiple channels for operations and capability to communicate with other agencies in the county and region. Comment: The current radio infrastructure is failing and is no longer dependable. |
$68,000 |
$1,202,000 |
|
9 |
Fire Station #3 Capital Maintenance Project includes replacement of the overhead door, HVAC duct replacement, and foundation repairs. Comment: These repairs will help to eliminate moisture infiltration and mold in the building. |
$95,000 |
$1,297,000 |
Table 2 (Continued): Capital Program Priorities
|
10 |
Fire Station # 2 Capital Maintenance Project includes replacement of the overhead door, foundation repairs and new interior paint. Comment: The overhead door is of particular concern given that its malfunction can adversely impact response times. |
$163,000 |
$1,460,000 |
|
11 |
Small Park Improvements Projects include improvements, repairs and replacement of equipment in Town parks. Examples: bleacher replacements, replacement of playground equipment and turf repairs at athletic fields. Comment: This funding is critical to maintaining park facilities. |
$60,000 |
$1,520,000 |
|
12 |
Building Condition Assessment Program This would update the Town’s inspection / assessment study of the Town's buildings, last conducted in 2000. Comment: The 2000 Facility Condition Assessment is outdated; updating the list of deferred maintenance items will be important to programming capital funds. |
$65,000 |
$1,585,000 |
|
13 |
Parking Lots/Bike and Pedestrian Paths/Greenway Trails Funds would pay for repair and maintenance of existing paved pedestrian paths, trails and parking lots; needs have been identified at fire stations, Parks and Recreation facilities and other locations. Comment: Proposed funding level would address only a small portion of the backlog of existing asphalt repair needs. |
$50,000 |
$1,635,000 |
|
14 |
Greenways Funding would help repair greenways. Comment: Funding has helped restore trails with natural surfaces and will be used to replace aging stairs and bridges on the Tanyard Branch and Battle Branch Trails. |
$45,000 |
$1,680,000 |
|
15 |
Cemetery Beautification Funding would help supplement cemetery improvements approved by the Council on December 6, 2004. |
$20,000 |
$1,700,000 |