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13 <br /> Chair Bedford asked the consultants to explain what minimum and PRV means. <br /> David Sturtz said the PRV is the present replacement value. He said that it is similar to <br /> figuring out when a maintenance or repair cost is more than a certain percentage of the <br /> replacement cost, it might be time to consider replacement rather than repair. He said that they <br /> identiifed that$27.5 million should be budgeted per year. He said they recommend this is updated <br /> every 5 years. <br /> Commissioner McKee asked if $27.5 million is above and beyond what is being spent <br /> now. <br /> David Sturtz said no, that is the total and would include what is being spent now and it is <br /> a sum of the identified defencieis. He said this is only for ongoing capital renewals and does not <br /> include new builds. He said it is for repairs only. <br /> Commissioner McKee said he realizes this is just to keep them afloat. He said that if they <br /> increase the funds to spend what is recommended, they will need to have a .5 or .6 cent tax <br /> increase per year. <br /> David Sturtz said that the Commissioners have a big challenge in front of them. <br /> Commissioner Fowler said the budget includes $53.7 million for Chapel Hill High School <br /> and it was just rebuilt. <br /> David Sturtz said they will get into detail on the individual recommendations slide. He said <br /> you can always expect the high schools to be more expensive. He said the larger schools, even <br /> if newer, need major work on systems in the 20-25 year mark. <br /> Chair Bedford said $72 million was just invested into Chapel Hill High School. <br /> Commissioner McKee said that it was at least $50 million of rebuild and replace so they <br /> will be curious at what needs to be done at the projected cost. <br /> David Sturtz said he imagines, without looking at the details, is the legacy part of the <br /> building having HVAC, roof, and mechanicals and those usually reflect the large numbers. He <br /> said the truth is, you probably wont spend every dime in year 15 in a projection like this. He said <br /> it assumes the life is 20 years on HVAC, and at that 20 year mark, it projects as due. He said this <br /> assumes zero deferred maintenance on the needs. He said if it can be deferred, then great. <br /> Slide #10 <br />