Agenda 04-26-22; 8-a - Minutes - Laserfiche WebLink

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20 1 Diversion Facility is an unknown and not currently in the CIP. He said the county also needs to 2 reckon with the replacement of the recreation center that also is not in the CIP. 3 Commissioner Fowler asked if that is repairs for the recreation center. 4 Travis Myren said the needs are not known right now, but significant work will be needed 5 in the next 10 years. 6 Commissioner Fowler asked for additional info on $4 million capital reserve. 7 Travis Myren said there was a fiscal year end surplus last year and the Board approved 8 allocating some of it for capital reserve, as well as some for COVID-related expenditures that 9 may not be reimbursed by FEMA. He said the Board could allocate the money to this project 10 through a budget amendment and finance the remainder. 11 Commissioner Fowler asked if taxes still have to be raised even if the capital reserve 12 money is used. 13 Travis Myren said taxes are already increasing for the current project budget, and if the 14 $4 million in capital reserve is used, less money would be needed, and thus less of an 15 additional tax raise. He clarified that taxes would still have to be raised by some amount 16 regardless. 17 Commissioner Fowler asked if that means other projects would not be addressed until 18 after 2027 or beyond. 19 Travis Myren said yes, if the Board wants to maintain the tax rate. 20 Commissioner McKee asked if there is an option to get out of the Skills Development 21 Center lease and what the cost would be. 22 Travis Myren said the first term is up either this year or next year. 23 Commissioner McKee clarified that if the county did not extend the lease, then there 24 would be no cost. 25 Travis Myren said correct. He said he ran the numbers, and over a 20-year term, the 26 cost would be $6.4 million in Skills Development Center rent at Europa Center, compared to the 27 principle interest of$8.2 million. 28 Commissioner McKee asked how many years the terms of the lease are. 29 Travis Myren said he is not sure. 30 Commissioner McKee said his concern is that the project will not be ready before the 31 county would have to renew for a new lease term. 32 Travis Myren said the county can negotiate an extension based on the progress of the 33 project. 34 Commissioner McKee clarified and said that the Board is not locked into renewing for 5 35 or 10 years and that the Board could negotiate different terms. 36 Travis Myren said that yes those are voluntary. 37 Commissioner McKee said the Board gives around $568,000 a year to the Chapel Hill 38 Library and asked how the Library Task Force is going. He asked about where those 39 discussions are now. 40 Travis Myren said the first meeting has taken place and the next one is scheduled for 41 April. 42 Commissioner McKee clarification that there will be ongoing expenses to the library of 43 half a million dollars, in addition to the cost of construction, for staffing and maintenance of the 44 library. He said this could open a conversation on renegotiating the amount given to Chapel Hill 45 Library. He said that he wants to mention again that this is an ongoing expense outside of 46 construction. 47 Commissioner Bedford said she looked at the CIP to try to find projects, but there is not 48 flexibility in it without additional debt capacity. She asked what the current cost is per parking 49 spot. 50 Travis Myren said $48,000 per spot.