AGENDA #1b
MEMORANDUM
TO: Mayor and Town Council
FROM: W. Calvin Horton, Town Manager
SUBJECT: Preliminary Report on the 2005-2020 Capital Improvements Program
DATE: March 23, 2005
The attached resolution would refer the Preliminary Report on the 2005-2020 Capital Improvements Program to Town Advisory Boards for review and recommendations. Advisory Board recommendations will be included in the Council’s materials for the May 18, 2005 public hearing. Comments from tonight’s Forum would be referred to the Town Manager.
INTRODUCTION
The presentation of this preliminary report is one of the initial steps in the Council’s annual adoption of a 15-year capital spending plan. The schedule for adoption of the 2005-2020 Capital Improvements Program includes the presentation of the Town Manager’s recommendation on May 9, 2005, and Council consideration on June 27, 2005.
DISCUSSION
The Capital Improvements Program, a 15-year plan for financing the Town’s major capital and infrastructure requirements, identifies and prioritizes capital projects and potential funding sources. Key sources for determining capital projects include the 2000 Facility Condition Assessment, the Library Master Plan, the Parks and Recreation Master Plan, the Greenways Master Plan, special studies, the Comprehensive Plan, and ideas from the Council, citizens, and staff.
The Capital Improvements Program includes projects that are funded through the Town’s Capital Improvements Fund, and also those projects that are funded through bonds, State and federal grants, and other sources. The Capital Improvements Program does not include all of the capital projects in the community – such as the capital needs of the Chapel Hill-Carrboro City School System, the Orange Water and Sewer Authority, or the Orange Regional Landfill, which was transferred to Orange County in 2000. Projects in the Transportation Improvement Plan also are not listed in the Capital Improvements Program, except where local matching funds are required.
The Preliminary Capital Improvements Program was developed using a set of priority ranking criteria to evaluate projects (please see Attachment 1). The preliminary capital budget for 2005-06 and projected future expenditures are shown in the following tables:
· Table 1A, the “base budget” which includes only those Capital Improvements Fund projects which the Town is contractually obligated to fund.
· Table 1B, a list of projects included in the preliminary recommendation for funding in 2005-06 or identified for funding in future years using the Capital Improvements Fund. The $1.745 million total for 2005-06 is based on the capital program budget projection in the adopted 2004-05 Budget.
· Table 2, a list of projects for which grants or other funds will be used.
· Table 3, a plan for projects financed using 2003 Bonds.
· Table 4, a plan for capital projects using Stormwater Management Funds.
HIGHLIGHTS
2005-06 Capital Improvements Fund Budget
We have included a 2005-06 “base budget” (please see Table 1A) that reflects only those projects which the Town is contractually obligated to fund in the next fiscal year.
The Preliminary Capital Improvements Program (please see Table 1B) proposes a $1.745 million Capital Improvements Fund budget for 2005-06; the total reflects the capital budget projection for 2005-06 as shown in the current Capital Improvements Program.
New projects identified for funding in 2005-06 include renovation of the Chapel Hill Community Center, installation of generators at Town Hall and the Police Departmnt, completion of a building condition study, replacement of HVAC units at Town Hall, and installation of a new phone system at Town Hall.
Other Funds
Major ongoing projects financed by sources other than the Capital Improvements Fund and the 2003 Bonds include the development of the Town Operations Center, the Aquatics Center and Southern Community Park (see Table 2). Other projects include capital maintenance at the Wallace Parking Deck, public housing renovations and a new Library material controls system.
Bonds
Bonds totaling $29.36 million were approved by voters in November 2003, for use on a variety of projects including sidewalk improvements, greenway construction, open space purchases, library expansion, and energy efficiency improvements at Town facilities. Table 3 shows the projects that are being funded by the $4 million bond sale in November 2004, and those that would be funded in future bond sales planned for 2006, 2008 and 2009.
Stormwater Management Funds
We propose allocation of stormwater management funds for certain capital projects. Examples of projects include drainage infrastructure repairs, culvert replacement, stream repairs, stream debris clearing, and emergency repairs.
CAPITAL IMPROVEMENTS FUND: PROJECTS PROPOSED
FOR FUNDING IN FISCAL YEAR 2005-06
Projects proposed for new funding in the 2005-06 fiscal year are described below. The project numbers are the same as the project reference numbers in the attached tables (Tables 1A and 1B).
Contractual Obligations
Projects identified for Capital Improvements Fund funding in 2005-06 include six that are under contract. These projects comprise the base budget as shown in Table 1A. The projects are shown in bold typeface in Tables 1A and 1B.
2. Roof Replacements - Town Hall, Fire Station # 2 & Fire Station # 3 - Installment Payments, $37,000. This amount will be an annual payment on 10-year installment debt principal of $265,000. This project paid for roof repairs completed at Town Hall and Fire Stations 2 and 3. Work was completed in 2004.
21. IFC Shelter: Exterior Capital Repairs - Installment Debt Payments, $57,000. The $450,000 10-year installment debt principal includes a number of exterior repairs, including roof repairs and replacement of windows – needs identified in the 2000 Facility Condition Assessment. Work was completed in August 2004.
22. Museum Roof: Capital Repairs - Installment Debt Payments, $8,000. This amount represents an annual payment on 10-year installment debt principal amount of $60,000. This project funded the replacement of the roof on the Chapel Hill Museum in 2002.
40. Hargraves Center/A.D. Clark Pool Capital Repairs - Installment Debt Payments, $157,000. This is an annual payment on 10-year installment debt principal of $1,200,000 related to the renovation of Hargraves Center and the A.D. Clark pool facility completed in 2003.
41. Tennis and Basketball Courts: Capital Repairs – Installment Debt Payments, $31,000. This amount represents an annual payment on 10-year installment debt principal of $240,000 which funded repairs made to tennis and basketball courts at Cedar Falls, Community Center, Hargraves, Umstead, Homestead, and Oakwood parks. Work was completed in 2004.
Council-Approved Projects
3. Generator for Police Headquarters, $225,000. Funding would purchase and install an emergency backup electric power generator at the Police Department on Airport Road. The project would be completed in fiscal year 2005-06.
4. Generator for Town Hall, $70,000. The amount proposed for 2005-06 would be added to $29,000 in reappropriated unspent funds budgeted for Town generators in 2004-05. The project would install a generator to supply power for computer and telecommunication services (servers, telephone and network systems) in the Information Technology and Finance Department spaces at Town Hall during power outage emergencies. The project would be completed in fiscal year 2005-06.
37. Traffic Signal System Upgrade (Town Share), $90,000. The project would upgrade the traffic signal system with new technology to improve traffic signal operations. The $90,000 in Town funds would be combined with $360,000 Surface Transportation Program/Direct Allocation funds (see Table 2, Reference # 66) to provide the local match. Total cost of the Transportation Improvement Program project is estimated to be $4.7 million.
45. Cemetery Beautification, $20,000. Funding would help implement cemetery improvements approved by the Council on December 6, 2004.
Other Identified Needs
The Preliminary Capital Improvements Program proposes funding the following projects in order to address key capital needs, including facility maintenance, infrastructure repairs and improvements, and replacement of outdated equipment.
5. Building Condition Assessment Program, $65,000. This project would update a detailed inspection/assessment study of the Town's buildings. The last assessment was conducted in 2000.
6. Extraordinary Maintenance, Emergency Repairs, $76,000. From time to time, unanticipated failures occur in building systems that require immediate emergency repairs. Examples of projects include roof repairs, HVAC system repairs, asbestos/lead abatements, vandalism remediation, swimming pool mechanical system repairs and hazardous material spill abatements.
9. Fire Station #2 Capital Maintenance, $75,000. This project includes replacement of the existing concrete driveway and asphalt parking lot, plumbing repairs, foundation repairs, and new interior paint at the fire station on Hamilton Road.
15. Parks and Recreation Administration Capital Maintenance, $30,000. The following projects identified in the Facility Condition Assessment would be completed at the Parks and Recreation Administration Building at Plant Road: replace interior doors, the overhead bay door, and cabinets and countertops.
18. Town Hall: Replacement of HVAC Units, $280,000. This project would replace the 16-year-old rooftop HVAC units at Town Hall; HVAC units typically are replaced in 15-year cycles. Repairs to the Town Hall units are being made more frequently. In addition, the project would use $90,000 in Bond funds (see Table 3, Ref #85) to add of a computer-controlled energy management system, which could be funded using the Town’s 2003 Energy Efficiency Bonds.
32. Curb Repairs: ADA Compliance, $25,000. Approximately 70 locations still need access ramps in order to meet Americans with Disabilities Act standards.
33. Capital Repairs - Bike Paths, Paved Trails and Public Parking Areas, $40,000. Funds would pay for repair and maintenance of existing paved pedestrian paths, trails and parking lots. Needed repairs have been identified at fire stations, public housing developments, Parks and Recreation facilities and other locations.
34. Small Park Improvements, $50,000. These projects would provide for improvements, repairs and replacement of equipment in Town parks. Examples of potential projects include bleacher replacements, replacement of playground equipment and turf repairs at athletic fields.
38. Replacement of Town Hall Telephone System, $100,000. The Town Hall telephone system has limited capacity and features needed to serve users at Town Hall. Repair parts are becoming increasingly difficult to find for the current system. A system upgrade or replacement will be necessary to support future telephone system requirements and future compatibility with the new Town Operations Center system.
47. Community Center Capital Repairs – Installment Debt Payments, $224,000. The principal amount of $1.44 million includes funding for repairs and building improvements, including the addition of HVAC for the gymnasium and new office spaces.
48. Greenways, $35,000. Major repairs are anticipated for various projects including Tanyard Branch, Bolin Creek, and Dry Creek Trails.
49. Library Capital Maintenance, $50,000. Funding would pay for exterior paint, replacement of HVAC controls and replacement of a gas-fired boiler at the Library.
OTHER FUNDS: 2005-06 PROJECTS
Following are projects for which we anticipate using funding in 2005-06 from sources other than the Capital Improvements Fund and the Town’s 2003 Bonds (see Table 2). The project numbers correspond with the reference numbers in Table 2.
54 to 56. Town Operations Center – Transit Facility, $3,920,000 (Federal Transit Administration), $723,000 (Local Match). Funding has been secured for the development of the transit facility at the Town Operations Center.
58. Wallace Parking Facility Capital Maintenance, $155,000 (Parking Fund). The funding would address needs identified in the 2000 Facility Condition Assessment, including maintenance to the concrete ceiling, installation of an upper deck sub-grade drainage system, lighting fixture repairs, and replacement of the irrigation system.
59/60. Transit Transfer Center: Feasibility Study, $30,000 (Federal Transit Administration), $8,000 (Transit Capital Reserve). The study would examine the feasibility of developing a transit transfer center at Town Parking Lot 2 as shown in the conceptual master plan for Lot 2 developed as part of the Downtown Economic Development Initiative. The study would include an analysis of bus movements on and off site, timing, signalization changes, and optimal route reconfiguration.
61/62. Comprehensive Public Housing Renovations, $680,000 (Capital Fund Program and Community Development Block Grant Program). The funding would pay for work identified in the Council-approved five-year plan for improving public housing apartments.
67. Library Internet Access Improvements, $15,000 (Library Gift Funds). The funding would be used on a project to expand the public computer lab, provide on-line reference service and improve wiring in the facility.
68. Library Materials Control System, $150,000 (Library Gift Funds). Project would install a radio-frequency identification system to handle inventory control, speed up the checkout process and provide patrons with the option of self-checkout.
78. Morgan Creek Trail, $80,000 (Metropolitan Planning Organization/Direct Allocation). Greenway is to be built from U.S. 15-501 to Smith Level Road.
79. Pritchard Park, $20,000 (Parking Lot Lease Payments). Funds would be allocated to help build Pritchard Park and the proposed art garden.
80. Southern Community Park, $1,000,000 (1997 and 2001 Orange County Parks Bonds). The Council has approved a special use permit for the park south of Southern Village; the park will feature three athletic/soccer fields, a youth baseball field, play areas, picnic facilities, trails, and courts. The project is a cooperative venture with Orange County.
82. Carolina Sport Art Building and Grounds, $14,000 (lease payments). This project funds repairs to the Town-owned Carolina Sport Art building and grounds on Homestead Road.
2003 BOND PROJECTS
In November 2003, voters approved $29.36 million in bonds for a variety of projects. Bond projects are assigned to five individual categories as follows:
$5,600,000 Sidewalk and Street Improvement Bonds
$5,000,000 Parks & Recreation Bonds
$2,000,000 Open Space Bonds
$500,000 Public Building Bonds
$16,260,000 Library
The Council adopted a plan for the issuance of the Bonds on April 14, 2004. Table 3 shows a schedule for implementing bond projects (Ref #83 to #97) based on the bond sale schedule adopted by the Council.
STORMWATER MANAGEMENT FUND PROJECTS
The stormwater projects were selected based on a staff assessment of needs which pose the highest risk for a hazardous or potentially otherwise dangerous situation to the public if left unaddressed.
98. Curb and Gutter/Drainage Infrastructure Improvements, $50,000. This level of funding on an annual basis would pay for projects to improve drainage infrastructure throughout the Town.
99. North Street Inlet and Culvert Replacement, $30,000. This project would replace two curb inlets and a culvert in the North Street (200 feet east of the Airport Road intersection) right-of-way which are marginally operational. Failure of the storm sewer network would result in road flooding and potential pavement failure.
100. Rosemary Street Junction Box and Network Replacement, $20,000 (design costs). This funding would pay for the engineering design work associated with replacing the pipe network and junction boxes in the Rosemary Street right-of-way near Pritchard and Church Streets. Replacement would prevent failure of the pipe network, which would result in significant impact on traffic circulation on a major arterial.
101. Upgrade Booker Creek Road Double Corrugated Metal Pipes, $20,000 (design costs). This project would pay for engineering design for upgrading the existing double corrugated metal pipes northeast of intersection with Foxwood Drive which are marginally operational. Failure of the pipes would result in possible road failure and hazardous traffic conditions.
102. Willow Drive/Estes Drive Drainage Improvements, $30,000 (design costs). The funding would pay for design work for installing a storm sewer on Willow Drive from Estes Drive to Connor Drive and making improvements to the storm sewer infrastructure at the intersection of Willow and Estes Drives. Intersection floods during frequent rain events causing hazardous driving conditions.
PUBLIC FORUM COMMENTS
On January 26, 2005 the Council held a public forum on the budget and capital program needs. At that time, the Council received Advisory Board comments. One additional advisory board has submitted comments since the public forum (please see Attachment 2 for recommendations from the Parks and Recreation Commission).
FUTURE STEPS
The Manager’s Recommended Capital Improvements Program will be submitted to the Council on Monday, May 9, 2005. On Wednesday, May 18, 2005, a public hearing will be held to receive citizen comments on the Recommended Capital Improvements Program. The Town Council is scheduled to consider adopting the Budget and Capital Improvements Program on Monday, June 27, 2005.
We recommend the Council adopt the attached resolution referring this document to Town advisory boards and refer comments from tonight’s forum to the Town Manager.
ATTACHMENTS
Table 1: Capital Improvements Fund Projects (p. 12).
Table 2: Other Sources (p. 18).
Table 3: 2003 Bond Projects (p. 19).
Table 4: Stormwater Management Fund Projects (p. 20).
A RESOLUTION REFERRING THE PRELIMINARY REPORT ON THE CAPITAL IMPROVEMENTS PROGRAM (2005-03-23/R-1)
WHEREAS, the Council of the Town of Chapel Hill has received a Preliminary Report on developing a 2005-2020 Capital Improvements Program;
NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council hereby refers the Preliminary Report for comment and recommendations to the following advisory boards:
Bicycle and Pedestrian Advisory Board;
Community Design Commission;
Greenways Commission;
Historic District Commission;
Housing and Community Development Advisory Board;
Library Board;
Parks and Recreation Commission;
Planning Board;
Public Arts Commission; and
Transportation Board.
BE IT FURTHER RESOLVED that the Council requests that the advisory boards complete their review and recommendations for consideration at the Council Public Hearing on Wednesday, May 18, 2005, regarding the Budget and Capital Improvements Program.
This the 23rd day of March, 2005.