to year to. reflect the County. Funds in Strategic

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1 Five-Year Capital Improvement Plan Introduction The proposed five-year Capital Improvement Plann (CIP) forr FY throughh FY is the County s compilation of a long-term list of significant projects funded by General Funds in Budget Control 036, Capital Projects. As it is not possible to anticipate all needs and funding sources, the information in this document will be updatedd from year to year to reflect the changing needs and the fiscal outlook of the County. The Capital Improvement Plan will aid the County in its assessment of the best use of County General Funds and provide goals to meet in the development of capital assets while maintaining long term financial stability. Thee assessment processs is an ongoing process influenced by many changing factors such as service needs, available resources due to the changing economy, Board priorities, legal mandates, age and conditionn of existing buildings, and healthh and safety considerations. The five-year CIP provides information about capital projects requiring County General Funds in the amount excess of $150,000 or more. The CIP is not a budget document but rather a planning tool to be used in conjunction with the budget document and the County Facilities Master Plan. This November Capital Improvement Plan for County General Funds will serve as the base for the plan for FY throughh FY Capital projects implemented within County special funds such as OC Engineering, OC Waste & Recycling, John Wayne Airport and OC Parks are not updated for in this Strategic Financial Plan. These special funds do not require any General Fund support. The focus of this Strategic Financial Plan is General Fund only. County departments that directly fund capital projects within their own agencies were also not included in Budget Control 036. As this plan is further developed, information regarding the background, stage of development, budget status, implementation status, additional funding sources, any projected cost savings, projected costss and impacts on each General Fund capital project will be included. But for the purposes of thee strategic planning document, a high level countywide summary of the five-year plan is included. 45

2 Highlights Cogeneration Plant The County issued $32.7 million cogeneration bonds in 2006 to construct 10.4 MW cogeneration electricity plant. The cogeneration plant at the County s Central Utility Facility (CUF), completed in October 2009, installed new electrical generating turbines (powered by natural gas) and their auxiliary equipment to produce 10.4 MW electricity. The cogeneration plant replaces the use of Southern California Edison in the Civic Center Campus. Budget Control 040 includes approximately $4 million annual debt service payment for cogeneration bonds, which will end in June Central Utility Facility The scope of the Cogeneratio on Plant project did not include upgrades to Central Utility Facility (CUF) infrastructures. The CUF was constructed in 1968 and the infrastructure has exceeded its life expectancy. The present systems are becoming a greater liability to operations. The replacement of CUF infrastructure includes replacement of equipment and piping at CUF and replacement off underground piping at Civic Center area and facilities. CUF provides electricity to County facilities and two court facilities in the Civic Center Area. CUF also provides hot & chilled water and steam to all County and other government facilities. The 2010 SFP included a Strategic Priority to replace the infrastructure of the CUF at an estimated cost of $33.9 million from FY through FY This is a multi-phased project to replace aging infrastructure at the CUF. Each phase includes a series of projects that are related and are best addressed as a group. Beginning in FY , the first phase was budgeted in FY and FY -12 to include the replacement of substation A motor control, distribution panels and transformer; and the replacement and upgrade of the electric and steam feed water pumps at the CUF. Subsequent phases will include: the initial engineering to develop a CUF Renovation Plan and will include installation of new steam and chilled water metering; installation of sixx (6) new skid mounted primary loop chiller/absorber supply pumps and all correlated electrical feed equipment and piping systemss for improved flow controls to chillers andd absorbers; the removal of Chillers CR2 and CR3 and the installation of two (2) new steam turbine driven chillers and a new absorber for improved chilled water supply; and the replacement of the chilled water east-loop connecting Civic Center buildings with the CUF for continued reliable operation of the system. The 2010 SFP also included a Strategic Priority to replacee the cooling tower and water pumps at the CUF at an estimated cost of $9.6 million, which would greatly increase the efficiency of plant operations. 46

3 Currently, the CUF has no sinking fund to fund these types of large capital projects. The capital projects can only be fundedd using a pay as you go method or issuance of bonds. Effective FY , the non-billable Fund Reserves. In FY , $238, 000 was added to General Fund Capital Projects Reserves, which will not be sufficient to replace CUF portion of cogeneration revenue will be accumulated annually in General infrastructure. The County Executive Office and OC Public Works willl continue work together to identify and securee funding source for CUF infrastructure projects. Annual Maintenance and Repair Plan Each year OC Public Works submits a list of projects related to the maintenancee and repair of all county facilities. Requestss of $38.5 million for the period FY through FY cover the following component t needs: Projects Central Utility Facility Electrical Equipment Elevators Fire Alarm Systems Generators HVAC Equipment LonWorks Miscellaneous Card Access Roofs Total Amount Requested (in millions) $ $ 38.5 The Annual Maintenance and Repair Plan has increased by $5.4 million due to additional maintenance and repairs of generators, HVAC equipment, and card access systemss in County buildings. In prior years projects have been deferred, cancelled or transferred and now require attention to keep the County buildings operational. Facilities Master Plan (FMP) On October 17, 2006, the Board adopted the Facilities Master Plan (FMP) authored by Gensler & Associates, and approved its fifteen (15) initiatives. In FY , the Board approved $6.3 million to pursue the FMP initiatives. In FY , $4.7 million was budgeted for the FMP. However, many FMP projects were subsequently deferred as part of budget reductions later that year. As other opportunities were identified, the Board modified some of the original directives. Due to continuing budget constraints, 47

4 FMP implementation expenditures were minimized to $101,956 in FY and $117,628 in FY The FMP was not budgeted in FY 11-12, but a mid-year budget adjustment may add appropriatio ons. In September, staff and consultants reported on the real estate market, the status of the FMP and opportunities for Board consideration in 2012 and The Board directed OC Public Works Real Estate to return promptly with a matrix of information about current and future County real estate needs and recommendations supported by the data. Many of the FMP s original fifteen actions have been completed. Initiatives still underway include: 1) moving the County Real Estate Database into the MaintStar software platform (approved for FY -12); 2) repurposing or replacing Building 16 (awaiting Board direction); 3) relocation of the County s Fruit Street operations to other County properties (pending Board direction); 4) exploring future usess of the former South Justice Center property; 5) construction of a new Animal Care Facility (OCCR is negotiating to locate the new facility on 5 acres off the former Tustin Marine Base); 6) pursuing interim uses for the El Toro 100 acre parcel; and 7) replacement of the Public Health Facility on 17th Street in Santa Ana. Sheriff Facility Issues Each year the Sheriff-Coroner submits a list of projects related to the maintenancee and repair of all Sheriff-Coroneidentify significant planned maintenance projects equired over the next five facilities. An annual Maintenance and Repair Plan (MRP) is used to years at the various Sheriff-Coroner facilities. Deferred maintenance projects, those significant maintenance projects that have been deferred from earlier MRP submissions, are also included. These MRP and deferred maintenance projects for the period FY through FY total $25 million and include infrastructure, facility, systems, and equipment maintenance and replacement to prevent catastrophic failures that would negatively impact various Sheriff-Coroner buildings and facilities. The Sheriff s Department develops an annual Capital Improvement Plan to identify various types of improvements required at Sheriff-Coroner facilities. Capital projects totaling over $27 million for the period FY through FY include new facilities, safety and security enhancements, equipment and system improvements, facility improvements, and responses to mandatedd requirements (please see following page). 48

5 Projects New Facility Safety & Security Equip/System Improvements Facility Improvements Mandate Requiremen nts Total Amount Requested (in millions) $ $ 27.1 The new facility includes an alternate EOC for the County of Orange. This total does not include the James A. Musick Facility or the Southh County sub-station. The County is submitting an application to the State for potential funding of $100 million for the Phase I expansion of 512 beds at the James A. Musick Facility. A new South County sub- specifically for this type of planned project. Safety and security items refer to facility and station, although not yet identified, will utilize funding that is already available systemss improvements that directly impact operational, staffing, and facility safety and security. Equipment and System improvements relate to upgrades, replacements, or improvements of equipment and systems used for facilities and operations. Facility improvements refer to modifications and improvements to facilities to support operational and facility needs. Mandates include work att various Sheriff-Coroner facilities that are driven by other authorities having jurisdiction.. The Musick Master Plan is also expected to be complete in the first six months of Progress on the Master Plan continues, with focus overr the last two years on Cooperation and Agreement points with the cities of Lake Forest and Irvine that will be folded into the CEQA review process. Criminal Justice Facilities Many of the routine capital maintenance e and project needs have been accommodated in the Fund 104 Criminal Justice Facilities budget. This fund is made up of revenues collected from court surcharges and penalty assessments on parking violations and criminal fines. Larger scale projects for Probation Department facilities have previously been funded through the Fund 104 Criminal Justice Facilities budget and the Budget Control 036 Capital Projects budget. The Probation Department completed comprehensive capital needs studies for Los Pinos, Joplin, and Youth Guidance Center. The comprehensive capital needs study for Juvenilee Hall was completed in The total cost for the Probation Facilities Capital Improvement Plan is $8.7 million, which is $1.4 million more than the prior SFP because 49

6 of additional projects required for the Probation facilities. The SFP for Fund 104 includes $31.5 million in revenue over five years, which will be used for debt service payments on the Sheriff s Forensic Science Building ($13.2 million), Probation Facilities Capital Improvement Plan ($ $8.8 million), Sheriff Deferred Maintenancee ($5.5 million), and unallocated contingencies ($4 million). Summary General Fund In FY -12, through the first quarter budget report, capital project appropriations in Capital Projects Budget Control 036 equate to $9.6 million in projects. Total five-year (and any net project costs summarized in this SFP are $41.9 million. These projects subsequently identified) will be evaluated for funding during the FY Annual Budget process which is currently ongoing. Project needs and related cost will be evaluated again during the next Strategic Financial Planning cycle will begin in July Summary Non-General Funds This year s Capital Improvement Plan does not include capital improvement needs for the County s balanced funds including: OC Engineering, OC Parks, OC Waste & Recycling, John Wayne Airport, OC Dana Point Harbor, OC Watersheds, Newport Bay Tidelands, Santa Ana River, and others. As stated in the Executive Summary, the primary focus of the SFP was to identify General Fund fiscal gaps and needs. The five-year Capital Improvement Plan for the non-general Funds will be updated during the 2012 Strategic Financial Plan process (and current needs will be accessed as part of the FY budget process). 50

7 County of Orange Capital Improvement Plan for SFP General Fund Capital Projects - Agency Financing FY FY FY FY FY FY Total Description Sources Budget Forecast Forecast Forecast Forecast Forecast Forecast Capital Projects Appropriations Countywide Capital Projects General Fund $5,948,534 $10,775,482 $6,218,105 $13,302,941 $4,267,124 $3,910,705 $38,474, MHz Capital Projects 15L-Sheriff Communications 501, Annual Maintenance/Repair Plan Contingencies General Fund 572, ,481 1,962,760 1,067,490 2,683,407 1,837,111 7,740,249 Transfer to 14Q - Sheriff Deferred MRP General Fund 2,055,040 2,400,000 2,400,000 2,400,000 2,400,000 2,400,000 12,000,000 Department Capital Project Needs General Fund 491, ,000 2,500,000 2,000,000 2,750,000 2,000,000 9,550,000 Total Appropriations/Reimbursements $9,568,273 $13,664,963 $13,080,865 $18,770,431 $12,100,531 $10,147,816 $67,764,606 Revenue Sources Countywide Capital Projects - Reimbursements $0 $4,567,722 $3,872,052 $9,366,832 $2,414,824 $171,538 $20,392,969 Bond Financing - Cogeneration Project Reimbursement Transfer from Fund Criminal Justice Facilities 1,000,000 1,030,000 1,060,900 1,092,727 1,125,509 1,159,274 5,468,410 Reimbursement from Sheriff Communications 15L-Sheriff Communications 501, Total Revenue $1,501,032 $5,597,722 $4,932,952 $10,459,559 $3,540,333 $1,330,812 $25,861,379 Net County Cost $8,067,241 $8,067,241 $8,147,913 $8,310,872 $8,560,198 $8,817,004 $41,903,228 CIP Summary Appropriations $9,568,273 $13,664,963 $13,080,865 $18,770,431 $12,100,531 $10,147,816 $67,764,606 Revenue Sources 1,501,032 5,597,722 4,932,952 10,459,559 3,540,333 1,330,812 25,861,379 NCC $8,067,241 $8,067,241 $8,147,913 $8,310,872 $8,560,198 $8,817,004 $41,903,228 Capital Projects Agency 036 NCC Limits $8,067,241 $8,067,241 $8,147,913 $8,310,872 $8,560,198 $8,817,004 $41,903,228 NCC Savings from Cap Project Reductions $0 $0 $0 $0 $0 $0 $0 Note: The above SFP information does not commit the County for funding. The funding is committed through the annual budget process and the above information is subject to change at that time.

8 52 County of Orange Capital Improvement Plan for SFP Criminal Justice Facilities - ACO Capital Projects Fund 104 FY FY FY FY FY FY Total Description Budget Forecast Forecast Forecast Forecast Forecast Forecast Capital Projects Appropriations Debt Services - Forensic Science Building $2,629,989 $2,626,852 $2,623,608 $2,619,815 $2,617,157 $2,612,919 $13,100,351 Debt Service Admin Fee 10,000 10,000 10,000 10,000 10,000 10,000 50,000 Transfer to Capital Project 036 for Sheriff Deferred MRP 1,000,000 1,030,000 1,060,900 1,092,727 1,125,509 1,159,274 5,468,410 Probation Facilities 846,946 2,736,089 3,707,108 1,374, , ,024 8,786,430 Probation Facilities Maintenance 2,000, Unallocated - Contingencies for Probation Facilites 1,953, ,192 1,575,928 1,611,565 4,051,685 Total Appropriations/Reimbursements $8,439,976 $6,402,941 $7,401,616 $5,961,089 $5,759,448 $5,931,782 31,456,876 Revenue Sources Beginning Fund Balance Available & Other $6,279,534 $0 $0 $0 $0 $0 $0 Decrease (Increase) to Reserves (3,264,558) 976,141 1,919, , ,264,558 Court Fines, Fees, and Penalties 5,350,000 5,350,000 5,403,500 5,511,570 5,676,917 5,847,225 27,789,212 Interest 60,000 61,800 63,654 65,564 67,531 69, ,106 Misc. Revenue 15,000 15,000 15,000 15,000 15,000 15,000 75,000 Total Revenue $8,439,976 $6,402,941 $7,401,616 $5,961,089 $5,759,448 $5,931,782 $31,456,876 Ending Fund Balance Available (FBA) $0 $0 $0 $0 $0 $0 $0