TO: Mayor and Town Council
FROM: W. Calvin Horton, Town Manager
SUBJECT: Town Operations Center Budget Amendment
DATE: May 12, 2003
The attached budget ordinances would amend the existing project budget for the Town Operations Center to provide a change order for the preliminary design contract and other costs associated with the expansion of the site, as well as the costs of value engineering.
In December 2002, the Council approved a design contract with Corley, Redfoot, Zack for a needs assessment, site analysis and conceptual plan for Chapel Hill’s new Town Operations Center. A project budget was also established that included funding for the $303,000 contract, a traffic impact study and a contingency account.
On March 5, the Council authorized the development of a concept plan pursuant to a design approach developed during an intensive design workshop during the week of February 17. The design approach focused almost all of the development south of the zoning jurisdictional boundary, thus limiting disturbance of the Rural Buffer to an auto impound lot and some outdoor materials storage for Public Works. The result was a tight site design for the southern area, with little natural area available for stormwater management, with only one means of access and with the need to build a parking deck to accommodate the vehicles of employees and visitors.
On April 24, the Council approved the acquisition of an additional 13.13 acre parcel of land that lies between the western boundary of the southern part of the site and Millhouse Road. A contract to sell has been executed by the current owner and the Town at a cost of $25,977 acre. Attachment A shows the original site and the expanded site. We recommend financing the purchase of this additional land through an installment contract which will require approval by the Local Government Commission. We prose to begin the steps required for this approval process at the Council’s regular meeting on May 23.
The Council has indicated its interest in value engineering at a very early stage in the design of this project. We have reached agreement on a scope of work which we believe will be useful at this stage of site planning and conceptual design for a cost of $21,000.
The addition of this parcel provides an opportunity to eliminate the expensive parking deck, add natural means of stormwater management, preserve some specimen trees and provide another means of access. Such redesign will take time and will require another intensive design workshop. A Phase I environmental survey will be necessary, as well as more boundary and tree survey work, soil borings and an additional site analysis that includes a wetlands delineation.
We expect the additional work to cost up to a total of $99,014 including:
$65,000 Change Order to the design contract, including soil borings, ground
survey and wetlands delineation
1,414 Change Order to the Traffic Impact Study contract
2,600 Phase I Environmental Study
21,000 Value Engineering
9,000 Contingency of 10%
We propose that these additional costs be split evenly between the transit and non-transit sources, in the same manner as the project costs have been shared to date and as the Federal Transit Administration has approved. The Transportation Fund’s Capital Reserve could provide the 10% local matching share ($4,950) of the 50% transit share of these costs totaling $49,507, with the balance of the transit share being funded from future transportation grants.
The 50% non-transit share could be provided in part from the Housing Fund. As of July 2003, when HUD Capital Grant funds are received, $21,840 will be available from the Housing Fund. This sum is based on the proportion of floor area represented at this stage of planning by the Housing Maintenance operation.
The remaining 27,677 of the non-transit share would be provided from fund balance in the General Fund. The attached budget ordinances would amend the existing budgets already established for this project.
We have noted before that we recommend long-term financing of the cost of the Town Operations Center, beyond what can be paid for by State and federal grants and our transit system partners. We believe that long-term financing is an equitable means of sharing the cost of an expensive and long-lived facility such as this one, with many of those who will benefit from it in the future. Issuance of General Obligation Bonds is one possible means of financing. Installment debt is another. We will report on financing options in June.
The Manager recommends that the Council enact the following budget ordinance that would increase the Town Operations Center project budget by $99,014.
AN ORDINANCE TO AMEND "THE ORDINANCE CONCERNING APPROPRIATIONS AND THE RAISING OF REVENUE FOR THE FISCAL YEAR BEGINNING JULY 1, 2002” (2003-05-12/O-2)
BE IT ORDAINED by the Council of the Town of Chapel Hill that the Budget Ordinance entitled "An Ordinance Concerning Appropriations and the Raising of Revenue for the Fiscal Year Beginning July 1, 2002" as duly adopted on July 26, 2002, be and the same is hereby amended as follows:
APPROPRIATIONS Budget Increase Decrease Budget
Transfer to Public Works
Capital Project Bond Fund 18,000 27,677 45,977
REVENUES Budget Increase Decrease Budget
Fund Balance 1,751,561 27,677 1,779,238
This the 12th day of May, 2003.
AN ORDINANCE TO AMEND THE CAPITAL PROJECTS ORDINANCE FOR RENOVATIONS AND IMPROVEMENTS TO PUBLIC WORKS FACILITIES FUNDED FROM 1996 BONDS (2003-05-12/O-3)
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 that the following capital project established for Public Works Facility renovations funded from 1996 bonds approved by the voters in November 1996 is hereby amended as follows:
The capital projects as authorized by bond referenda approved in November, 1996 and as determined by the Town Council, includes the capital costs of renovating and adding facilities to support Public Works operations.
The Manager of the Town of Chapel Hill is hereby directed to proceed with implementation of these projects within terms of funds appropriated here.
Revenues anticipated to be available to the Town to complete the project are amended as follows:
Amounts appropriated for the project are amended as follows:
Public Works Renovations and Improvements $518,000 $ 545,677
The Manager is directed to report annually on the financial status of the project in an informational section to be included in the Annual Budget, and shall keep the Council informed of any unusual occurrences.
Copies of this 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 Clerk.
This the 12th day of May, 2003.
AN ORDINANCE ESTABLISHING A CAPITAL PROJECT ORDINANCE FOR A NEW TRANSPORTATION OPERATIONS CENTER (2003-05-12/O-4)
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.
Funds available for this project include local contributions from the Town’s Transportation Capital Reserve Fund and potential grants and agreements from the Federal Transit Administration.
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.
Revenues anticipated to be available to the Town to complete activities as outlined in the project budget are hereby amended as follows:
Town of Chapel Hill (local match from
Transportation Capital Reserve Fund) 168,000 172,950
Federal Grant 0 44,577
Total 168,000 217,527
Amounts appropriated for the project are hereby amended as follows:
Transportation Operations Center 168,000 217,527
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 12th day of May, 2003.