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Approve a Reimbursement Resolution and Project Ordinance Amendment to Adjust the Municipal Services Center Project Budget.
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Staff: |
Department: |
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Dwight Bassett, Economic Development Officer |
Economic Development |
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Amy Oland, Assistant Director of Business Management |
Business Management |
Overview: The Town identified the coal ash contamination of the current police department property in 2013. Since this discovery, the Town has engaged with environmental counsel to conduct site testing. In 2017, the Town received communication from NC DEQ that it was time to proceed with a remediation plan for the property. Since that initial communication, the Town has considered various options to future uses including private development and Town ownership. In preparation for determining whether the Town remediates the property under an Administrative Agreement or partners with a private developer to use the Brownfield designation, there are additional steps that need to be determined in order to proceed. Funding is required to complete the 1) concept planning, 2) remediation plan and 3) Brownfield application. These steps are required by NC DEQ to avoid interim remediation actions at the Town’s expense.
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Recommendation(s): |
• That the Council adopt the attached reimbursement resolution for the Municipal Services Center Project; and
• That the Council enact the attached project ordinance amendment to adjust the Municipal Services Center Project budget for reimbursement of continued remediation of the current police station property.
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Key Issues:
• Time sensitive work to satisfy NC DEQ requirements for remediation plan.
• Numerous questions to define future steps to satisfy remediation.
Fiscal Impact/Resources: Funds from the Municipal Services Center Project would be reallocated for remediation related expenses at the current police station property in the amount of $425,000 and would later be reimbursed when the Town issues the installment financing for the project.
Where is this item in its process?
Council Goals:
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Create a Place for Everyone |
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Develop Good Places, New Spaces |
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Support Community Prosperity |
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Nurture Our Community |
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Facilitate Getting Around |
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Grow Town and Gown Collaboration |
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Attachments: |
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• Project Ordinance Amendment - Capital Projects Ordinance Fund |
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• Reimbursement Resolution for Municipal Services Center Project |
AN ORDINANCE TO AMEND THE CAPITAL PROJECTS ORDINANCE FOR VARIOUS CAPITAL PROJECTS (2018-05-02/O-7)
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 capital project ordinance for various capital projects funded from a variety of sources is hereby amended as follows:
“SECTION I
The capital projects as authorized by the Town Council include various capital projects funded from grants, the Capital Improvements Program funds, and other miscellaneous sources of revenue for a variety of projects extending beyond one year.
SECTION II
The Manager of the Town of Chapel Hill is hereby directed to proceed with implementation of these projects within terms of funds appropriated here.
SECTION III
Revenues anticipated to be available to the Town to complete the project are hereby amended as follows:
SECTION IV
Amounts appropriated for capital projects are hereby amended as follows:
SECTION V
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.
SECTION VI
Copies of this amended projects ordinance shall be entered into the minutes of the Council and copies shall be filed within five days of adoption with the Manager, Business Management Director and Town Clerk.”
This the 2nd day of May, 2018.
A RESOLUTION REIMBURSING THE TOWN FOR ACTIVITIES ASSOCIATED WITH SITE REMEDIATION AT THE POLICE STATION PROPERTY (2018-05-02/R-6)
WHEREAS, the Town of Chapel Hill intends to undertake planning activities to support the site remediation at the police station property, use its own funds to pay initial Project costs, and then reimburse itself from financing proceeds for these early expenditures;
WHEREAS, the Business Management Director has advised Council that it should adopt this resolution to document the Town’s plans for reimbursement, in order to comply with certain federal tax rules relating to reimbursement from financing proceeds.
WHEREAS, Town Council desires to support environmental stewardship; and
WHEREAS, the Town has identified contaminants on a piece of property acquired in 1981 and must meet State standards as regulated by NC DEQ to create a safe and satisfactory environment for future use; and
WHEREAS, a defined remediation plan is informed by potential land use and can further inform a State Brownfield application.
NOW, THEREFORE, BE IT RESOLVED by the Town Council of the Town of Chapel Hill, North Carolina, as follows:
1. The Project is the planning activities associated to support the site remediation at the police station property.
2. The Town intends to advance funds for initial Project costs and then reimburse itself from financing proceeds. The financing will take the form of installment financing.
3. The Town currently expects to borrow up to $31.4 million. The amount that is actually borrowed is subject to further Council approval.
4. Funds for the early Project expenditures may come from the Town’s General Fund, Capital Projects Funds, or any Town enterprise fund.
5. The Town intends for the adoption of this resolution to be a declaration of its official intent to reimburse itself from installment financing proceeds for Project cost expenditures.
This the 2nd day of May, 2018.
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The Agenda will reflect the text below and/or the motion text will be used during the meeting. |
presenter
By adopting the reimbursement resolution and enacting the project ordinance amendment, the Council adjusts the Municipal Services Complex Project budget for reimbursement of continued remediation of the current police station property.