Board of Commissioners Work Session Agenda

Transcription

1 Board of Commissioners Work Session Agenda Monday, August 9, :00 p.m. Wake County Office Building, Ground Floor Conference Room MEETING CALLED TO ORDER: Chairman Tony Gurley I. Update on Hotel/Motel and Prepared Food and Beverage Tax Revenues David Cooke Item Summary: In 1992, Wake County enacted an occupancy tax on hotel and motel rooms and prepared food and beverages. Revenues generated by a hotel/motel occupancy tax (6.0%) and the sale of prepared food and beverages (1.0%) are received by the County in the Major Facilities Fund which is separate from the County General Fund. The funds are administered by Wake County on behalf of all stakeholders identified in Interlocal Agreements. The stakeholders include, but are not limited to: Wake County, City of Raleigh, Town of Cary, Greater Raleigh Convention and Visitors Bureau (GRCVB) and Centennial Authority. The Interlocal Agreements also define how the revenues are distributed to various projects. An Interlocal Agreement approved by the Raleigh City Council and Wake County Board of Commissioners in January 2004 directs the County Manager and City Manager to review the financing of the convention center on the five year anniversary of the agreement. Due to the economy, a lack of operating experience in the new convention center, and the overall importance of a thorough review, the managers recommended delaying such review until December For this topic, the County Manager will provide an overview of the Major Facilities Fund and the two revenue sources (occupancy and prepared food and beverage). The presentation will include recent revenue trends, projections, and projects included in the current Interlocal Agreements. The information will be used in the upcoming review of the convention center financing plan. Action Requested: That the Board of Commissioners receives the presentation and provides feedback. Attachments: 1. Powerpoint 2. Major Facilities Cash Flow Model 3. Convention Center Financing Plan (as of 06/28/10) 4. Summary of Interlocal Agreements 5. Request from GRCVB concerning the Business Development Fund 6. Wake County s Distribution Handout

2 Board of Commissioners Work Session Agenda Monday, August 9, :00 p.m. Wake County Office Building, Ground Floor Conference Room II. Landfill Gas-to-Energy Tommy Esqueda and John Robertson Item Summary: In September 2009, Wake County Government completed a feasibility study (2009 Landfill Gas Study) of beneficial use options for landfill gas generated at the County s South Wake and Feltonsville Landfills. The results of the 2009 Landfill Gas Study indicated that electrical power generation, direct-use by industrial users as boiler fuel, and voluntary combustion for greenhouse gas credits are three technically and financially feasible projects for the County to pursue. On October 5, 2009, a presentation of the 2009 Landfill Gas Study findings was made to the Wake County Board of Commissioners. At the conclusion of the presentation, the Board of Commissioners directed staff to initiate the following: 1) permitting and design activities for the Gas Collection and Control System; 2) planning, permitting and design for a gas pipeline; 3) prepare necessary agreements needed in the development of a landfill gas beneficial use project; and 4) initiate a request for proposal (RFP) process to solicit bids from private-sector firms to purchase the landfill gas rights from Wake County and develop a landfill gas beneficial use project. Environmental Services staff will discuss the RFP process, present various findings and information gathered during the RFP process, and provide a staff recommendation. Action Requested: That the Board of Commissioners receives the presentation and provides feedback. Attachments: 1. Powerpoint 2. Memo Landfill Gas Beneficial Use Project Developer Selection Process and Recommendation 2

3 Board of Commissioners Work Session Agenda Monday, August 9, :00 p.m. Wake County Office Building, Ground Floor Conference Room III. School-based Support Services Ramon Rojano and Giang H Le Item Summary: Wake County Human Services and the Wake County Public School System partner to provide a number of support services to school-age youth and families. A Memorandum of Agreement is in place that identifies shared responsibilities for student health services, public health collaboration, family support and early childhood education and youth development. Human Services staff will present the partnership goals, outcomes, service structure and funding. Action Requested: That the Board of Commissioners receives the presentation and provides feedback. Attachments: 1. Powerpoint 3

4 Wake County Board of Commissioners Work Session August 9, 2010 Update on Hotel/Motel and Prepared Food and Beverage Tax Revenues Update on Hotel/Motel and Prepared Food and Beverage Tax Revenues Update on Hotel/Motel and Prepared Food and Beverage Revenues I. Background and Context II. Performance and Trends of Revenues III. Current Status of Funds IV. Issues and Discussion

5 Wake County Board of Commissioners Work Session August 9, 2010 Update on Hotel/Motel and Prepared Food and Beverage Tax Revenues Background Legislation approved in 1991 and amended in Original Interlocal Agreement in Revised Interlocal Agreement in There have been 16 Amendments to the Revised Interlocal Agreement. A Quick Primer on the Agreements (Obligations Prior to New Convention Center) First dollars out: Cost of Collection/Administration City of Raleigh Holdback Town of Cary Hold Harmless Greater Raleigh Convention & Visitors Bureau Centennial Authority Projects that have been funded and completed (with no outstanding debt): Exploris/Marbles/IMAX Soccer Center Performing Arts Center Yates Mill Pond Park American Tobacco Trail Park North Carolina Museum of Natural Sciences

6 Wake County Board of Commissioners Work Session August 9, 2010 Update on Hotel/Motel and Prepared Food and Beverage Tax Revenues A Quick Primer on the Agreements (Obligations Prior to New Convention Center) Projects completed (with outstanding debt): RBC Center (through 2020) Five County Stadium (through 2015) City of Raleigh and Wake County receive $1 million per year for purposes consistent with legislation. Agreements Since % of all net revenue dedicated to the Convention Center 15% of remaining net revenue has been committed to: NC Museum of Art ($15 million) NC Ballet ($250,000) NC Museum of Natural Sciences Green Square Project ($6 million) 4 Town of Cary Sports Facilities ($10 million) 5 St. Augustine s College Track ($1 million) Whitewater Park ($150,000) RBC Facility Improvements 6 1, 2, 3

7 Wake County Board of Commissioners Work Session August 9, 2010 Update on Hotel/Motel and Prepared Food and Beverage Tax Revenues What about the footnotes? Convention Center footnotes: 1 Five year review (8 th Amendment) 2 The Two for One (8 th Amendment) 3 Business Development Fund (13 th Amendment) Other Footnotes North Carolina Museum of Natural Science footnotes: 4 NC Museum of Natural Sciences Green Square Project: City and County agree to assist the North Carolina Museum of Natural Sciences in its efforts to secure $4 million..said assistance shall include consideration of the merits of utilization of the financing method authorized by Article V., Section 14 of the North Carolina Constitution.

8 Wake County Board of Commissioners Work Session August 9, 2010 Update on Hotel/Motel and Prepared Food and Beverage Tax Revenues Other Footnotes 5 Town of Cary Sports Facilities: Original project was Cary Aquatics Facility (10 th Amendment). Changed to new construction and upgrades for the WakeMed Soccer Park, the USA Baseball Complex and Cary Tennis Park. (16 th Amendment) Other Footnotes 6 RBC Facility Improvements: A total of $26 million in uncommitted funds for the period of Fiscal Year through Fiscal Year beginning in Fiscal Year the minimum of $1 million and the maximum of $1.5 million through Fiscal Year (13 th Amendment)

9 Wake County Board of Commissioners Work Session August 9, 2010 Update on Hotel/Motel and Prepared Food and Beverage Tax Revenues Revenue Trends and Projections Hotel/Motel Tax Revenue 20,000 18,000 16,000 14,687 14,000 13,632 12,135 13,485 12,811 in Thousands 12,000 10,000 8,000 6,000 6,162 7,020 8,295 8,868 9,774 11,064 11,270 10,119 10,117 10,269 10,998 4,000 2,

10 Wake County Board of Commissioners Work Session August 9, 2010 Update on Hotel/Motel and Prepared Food and Beverage Tax Revenues Hotel/Motel Tax Revenue 20.0% Percent Growth Year to Year 15.0% 10.0% Average: 6.8% 5.0% 3.0% 3.0% 3.0% 3.0% 2.0% 0.0% % 10.0% 15.0% Hotel/Motel Tax Revenue Percent Growth Average (Actual Years Only) Prepared Food Tax Revenue 20,000 18,000 17,581 16,925 16,878 16,000 15,749 14,000 13,160 14,397 in Thousands 12,000 10,000 8,000 6,000 6,357 6,899 7,302 7,969 8,618 9,371 11,806 10,991 9,980 10,302 4,000 2,

11 Wake County Board of Commissioners Work Session August 9, 2010 Update on Hotel/Motel and Prepared Food and Beverage Tax Revenues Prepared Food Tax Revenue 20.0% Percent Growth Year to Year 15.0% 10.0% 5.0% Average: 7.5% 2.0% 5.0% 5.0% 5.0% 5.0% 0.0% % 10.0% 15.0% Prepared Food Tax Revenue Growth Average (Actual Years Only) Major Facilities Overview

12 Wake County Board of Commissioners Work Session August 9, 2010 Update on Hotel/Motel and Prepared Food and Beverage Tax Revenues Major Facilities Cash Flow Model Printed on large, green paper Convention Center Financing Plan So far, has outperformed original financing plan of December Financing Plan covers: Debt Service Fixed amount for operating expense Business Development Fund Authorization for an additional $1 million Amount for future potential expansion/capital improvements Assumptions and Fund Balance Purpose of Five Year Review

13 Wake County Board of Commissioners Work Session August 9, 2010 Update on Hotel/Motel and Prepared Food and Beverage Tax Revenues Convention Center Financing Plan Printed on yellow paper (legal size) 100% of Uncommitted Funds 40,000 35,000 30,000 29,263 25,000 in Thousands 20,000 15,000 10,000 5,000 6,463 4,847 8,311 7,729 9,714 8,442 23,539 22,214 20,359 15,606 15,467 18,752 17,596 13,707 14,206 16,487 15,430 11,627 14,416 13,445 12,518 11,629 10,782 9,969 9, Projections & Assumptions for Convention Center Financing Actuals

14 Wake County Board of Commissioners Work Session August 9, 2010 Update on Hotel/Motel and Prepared Food and Beverage Tax Revenues Issues and Discussion Current Projections and Forecast Five Year Review of Convention Center Financing Business Development Fund NC Museum of Natural Sciences $4 million RBC Center Distributions Other Questions

15 Major Facilities Model Section 1 - Summaries & Assumptions Cash Flow Model (with Proposed FY11 Assumptions) NOTE: All dollars are in thousands ($,000) Economic Assumptions Actual Actual Actual Actual Actual Actual Actual Actual Proj Proj Proj Proj Proj Proj Proj Proj Proj Proj Proj Proj Proj Proj Proj Proj Proj Proj Proj Proj Proj Proj Proj Proj Proj Economic Growth Occupancy Tax na 3.24% 1.51% 7.09% 10.34% 12.34% 7.74% -8.18% -5.00% 2.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% Prepared Food and Beverage Tax na 3.63% 7.63% 11.43% 9.18% 9.39% 7.47% 3.62% -4.00% 2.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% Source: Growth projections are generated by the Budget and Management Services Department. See Director for specific details. Sources of Funds: Occupancy Taxes 10,119 10,117 10,269 10,998 12,135 13,632 14,687 13,485 12,811 13,067 13,459 13,863 14,279 14,707 15,148 15,603 16,071 16,553 17,049 17,561 18,088 18,630 19,189 19,765 20,358 20,969 21,598 22,246 22,913 23,600 24,308 25,038 25,789 Food and Beverage Taxes 10,302 10,991 11,834 13,187 14,397 15,749 16,925 17,581 16,878 17,215 18,076 18,980 19,929 20,925 21,972 23,070 24,224 25,435 26,707 28,042 29,444 30,916 32,462 34,085 35,790 37,579 39,458 41,431 43,502 45,678 47,961 50,359 52,877 Other Revenues TOTAL SOURCES 20,522 21,203 22,161 24,359 26,901 30,197 32,543 31,268 29,689 30,282 31,535 32,843 34,208 35,632 37,120 38,673 40,294 41,988 43,756 45,603 47,532 49,547 51,651 53,850 56,147 58,548 61,056 63,677 66,415 69,278 72,270 75,397 78,666 Uses of Funds: Administration and Collection Occupancy Taxes na na na na Food and Beverage Taxes na na na na ,023 1,074 1,127 1,184 1,243 1,305 1,370 1,439 1,511 1,586 City of Raleigh Holdback Greater Raleigh Convention & Visitors Bureau 2,630 2,704 2,744 2,917 3,190 3,553 3,809 3,517 3,354 3,416 3,511 3,609 3,710 3,814 3,921 4,031 4,144 4,261 4,382 4,506 4,634 4,765 4,901 5,040 5,184 5,332 5,485 5,642 5,804 5,970 6,142 6,319 6,501 Town of Cary Hold Harmless ,017 1,047 1,079 1,111 1,145 1,179 1,214 1,251 Use of Raleigh & Wake County Funds Centennial Authority 2,359 1,185 1,224 1,400 1,537 1,700 1,830 1,817 1,738 1,773 1,850 1,930 2,015 2,103 2,195 2,291 2,391 2,496 2,606 2,721 2,842 2,967 3,099 3,237 3,380 3,531 3,688 3,853 4,026 4,206 4,395 4,592 4,799 City of Raleigh 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 Convention Center Exploris/IMAX 5, Five County Stadium (Debt Service) RBC (Debt Service) 5,249 5,208 4,970 5,209 5,122 5,206 5,036 5,209 5,208 5,209 5,208 5,208 5,209 5,207 5,209 5,210 5,211 5, Sports Facility (Soccer) 5, Wake County 2,000 1,242 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 Other Subtotal, Uses for Administration & - Holdbacks 26,556 14,740 13,779 14,455 14,905 15,674 16,006 15,800 15,482 15,611 15,838 16,076 16,323 16,577 15,931 16,129 16,415 16,709 12,676 12,127 12,458 12,803 13,160 13,531 13,916 14,317 14,732 15,164 15,613 16,079 16,564 17,067 17,591 Subtotal, 85% Payments to Raleigh for the Convention Center Funds NOT put into the Convention Center Convention Center Debt Service Annual Surplus/Deficit after Debt Service Other Expenses 2016/17 Debt Service Issuance Additional Capital Expenditure Interest Income City of Raleigh Discretionary Withdraws Fund Balance within Conv Center ,939 8,257 14,237 11,650 13,117 13,123 12,075 12,471 13,342 14,252 15,201 16,198 18,011 19,162 20,298 21,486 26,418 28,455 29,812 31,232 32,718 34,271 35,896 37,596 39,375 41,235 43,182 45,219 47,350 49,581 51,915 (6,121) 6,463 (2,628) 1,457 (2,610) 2,057 2,489 2,344 2,131 2,201 2,355 2,515 2,683 2,858 3,178 3,382 3,582 3,792 4,662 5,021 5,261 5,512 5,774 6,048 6,335 6,635 6,948 7,277 7,620 7,980 8,356 8,750 9, (10) (816) (2,040) (7,617) (9,619) (10,691) (10,697) (10,697) (10,733) (18,020) (18,021) (18,020) (18,017) (18,019) (18,020) (18,017) (18,016) (18,019) (18,019) (18,015) (18,019) (18,017) (18,017) (18,019) (18,022) (20,420) (20,404) (20,389) (20,368) ,939 8,257 14,227 10,834 11,077 5,506 2,456 1,780 2,645 3,555 4,468 (1,822) (10) 1,142 2,281 3,467 8,398 10,438 11,796 13,213 14,699 16,256 17,877 19,579 21,358 23,216 25,160 24,799 26,946 29,192 31, (2,181) (2,246) (2,314) (2,383) (2,454) (2,528) (2,604) (2,682) (2,763) (2,845) (2,931) (3,019) (3,109) (3,203) (3,299) (3,398) (3,500) (3,605) (3,713) (3,824) (3,939) (4,057) (4,179) (4,304) (4,433) (4,566) (4,703) (4,844) (4,989) (3,418) (6,837) (6,837) (6,837) (6,837) (6,837) (6,837) (10,347) (10,346) (10,347) (10,346) (10,347) (10,347) (10,346) (10,346) (16,400) (350) (350) (350) (350) (350) (350) (350) ,649 2, ,046 1,037 1, ,011 1, ,031 1,187 1,390 1,645 1,849 2,110 2,430 2,814 3,195 3,648 4, (1,000) (1,000) (1,000) (1,000) (1,000) (1,000) (1,000) (1,000) (1,000) (1,000) ,974 27,455 37,694 32,061 34,861 34,558 33,497 33,194 33,712 35,080 30,114 27,076 25,012 23,934 24,917 27,346 28,370 30,680 34,372 39,553 46,335 54,827 61,647 70,329 81,004 93, , , , ,645 15% Agreements Approved Cary Sports Facilities ,000 1,000 1,300 1,700 2,600 2, North Carolina Ballet NC Musuem of Art ,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1, NC Museum of Natural Science , RBC Center (Facility Improvements) ,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 2,000 2,000 5,000 5, RBC Center (Add'l Facility Funds) St. Augustine's College Track Whitewater Park Subtotal, Appropriated 15% Projects ,150 4,800 2,800 3,150 3,000 3,300 3,300 3,300 3,800 3,700 4,600 4,000 5,000 5, TOTAL USES 26,556 14,740 24,718 22,712 29,142 27,324 36,274 33,723 30,357 31,232 32,181 33,628 34,825 36,074 37,742 38,991 41,313 42,196 44,094 46,082 42,270 44,035 45,878 47,802 49,813 51,913 54,107 56,399 58,795 61,298 63,914 66,648 69,505 Increase (or Decrease) of Uncommitted Funds (6,034) 6,463 (2,557) 1,647 (2,241) 2,873 (3,731) (2,455) (669) (950) (646) (785) (617) (442) (622) (318) (1,018) (208) (338) (479) 5,261 5,512 5,773 6,048 6,335 6,635 6,949 7,277 7,621 7,980 8,356 8,749 9,161 Beginning Fund Balance 4,419 (1,616) 4,847 2,290 3,813 5,925 8,797 5,067 2,613 1, (436) (1,054) (1,496) (2,118) (2,436) (3,454) (3,662) (4,000) (4,478) 783 6,295 12,068 18,117 24,452 31,086 38,035 45,312 52,933 60,913 69,269 78,018 Increase In Uncommitted Funds - 6,463-1,647-2, ,261 5,512 5,773 6,048 6,335 6,635 6,949 7,277 7,621 7,980 8,356 8,749 9,161 Use of Uncommitted Funds (6,034) - (2,557) - (2,241) - (3,731) (2,455) (669) (950) (646) (785) (617) (442) (622) (318) (1,018) (208) (338) (479) Prior Period Adjustments (125) 4,353 (1) Ending Fund Balance (1,616) 4,847 2,290 3,813 5,925 8,797 5,067 2,613 1, (436) (1,054) (1,496) (2,118) (2,436) (3,454) (3,662) (4,000) (4,478) 783 6,295 12,068 18,117 24,452 31,086 38,035 45,312 52,933 60,913 69,269 78,018 87,179 Other Withdraws Wake County Withdraws (due to 10th Amendme (6,000) (2,000) (2,000) (2,000) (2,000) (2,000) (2,000) (2,000) Other Withdraws (6,000) (2,000) (2,000) (2,000) (2,000) (2,000) (2,000) (2,000) /27/2010 5:26 PM S:\Special Funds\ Major Facilities\Model and Financial Info\MASTER Major Facilities Model Cash Flow Model Page 1 of 1

16 City of Raleigh, North Carolina Convention Center Project with Expansion Financing Plan ($ 000) updated as of 6/28/10 100% of 85% of Funds NOT put into $55M Variable $190M Fixed Annual Debt Service Additional COR Uncommit-ted Uncommit-ted the Convention Series 2004A Net Forward Swap Annual Surplus/Deficit Other Expenses from $121M Capital Discretionary Fiscal Year Funds Funds Center Debt Service Net Debt Service Net Debt Service Revenues to be Paid Issue in 2017 Expend. Interest Income 3% Withdrawels Fund Balance Fiscal Year Column A Column B Column C Column D Column E Column F Column G Column H Column I Column J Column K Column L Column M Column N Column O Column P 6/30/ ,974 6/30/2005 6/30/ ,628 9,884 1, ,884 9,874 2, ,455 6/30/2006 6/30/ ,709 11,652 2, ,652 10,836 2,246-1,649 37,693 6/30/2007 6/30/ ,468 13,118 2,350 1, ,039 13,118 11,079 2,314-16,400 2,002 32,060 6/30/2008 6/30/ ,474 13,153 2,321 1,427 6,190 7,617 13,153 5,536 2, ,000 34,861 6/30/2009 6/30/ ,206 12,075 2, ,794 9,619 12,075 2,456 2, ,046 1,000 34,559 6/30/2010 6/30/ ,672 12,471 2,201 1,874 8,817 10,691 12,471 1,780 2, ,037 1,000 33,498 6/30/2011 6/30/ ,697 13,342 2,355 1,878 8,819 10,697 13,342 2,646 2, ,005 1,000 33,194 6/30/2012 6/30/ ,767 14,252 2,515 1,880 8,817 10,697 14,252 3,555 2, ,000 33,713 6/30/2013 6/30/ ,884 15,201 2,683 1,870 8,863 10,733 15,201 4,469 2, ,011 1,000 35,081 6/30/2014 6/30/ ,055 16,197 2,858 1,870 16,150 18,020 16,197 (1,823) 2, ,052 1,000 30,115 6/30/2015 6/30/ ,189 18,011 3,178 1,878 16,143 18,021 18,011 (10) 2, ,000 27,077 6/30/2016 6/30/ ,544 19,162 3,382 1,871 16,149 18,020 19,162 1,143 3, ,000 25,014 6/30/2017 6/30/ ,880 20,298 3,582 1,874 16,143 18,017 20,298 2,281 3, ,000 23,935 6/30/2018 6/30/ ,278 21,486 3,792 1,884 16,135 18,019 21,486 3,468 3, ,919 6/30/2019 6/30/ ,080 26,418 4,662 1,869 16,151 18,020 26,418 8,398 3,299 3, ,348 6/30/2020 6/30/ ,476 28,455 5,021 1,871 16,146 18,017 28,455 10,438 3,397 6, ,372 6/30/2021 6/30/ ,073 29,812 5,261 1,874 16,142 18,016 29,812 11,796 3,499 6, ,682 6/30/2022 6/30/ ,744 31,232 5,512 1,874 16,145 18,019 31,232 13,213 3,604 6, ,375 6/30/2023 6/30/ ,492 32,718 5,774 1,887 16,132 18,019 32,718 14,699 3,713 6,837 1,031 39,556 6/30/2024 6/30/ ,319 34,271 6,048 1,867 16,148 18,015 34,271 16,256 3,824 6,837 1,187 46,338 6/30/2025 6/30/ ,231 35,896 6,335 1,870 16,149 18,019 35,896 17,878 3,939 6,837 1,390 54,831 6/30/2026 6/30/ ,231 37,596 6,635 1,874 16,143 18,017 37,596 19,579 4,057 10,347 1,645 61,651 6/30/2027 6/30/ ,323 39,375 6,948 1,878 16,139 18,017 39,375 21,358 4,178 10,346 1,850 70,334 6/30/2028 6/30/ ,512 41,235 7,277 1,871 16,148 18,019 41,235 23,216 4,304 10,347 2,110 81,010 6/30/2029 6/30/ ,802 43,182 7,620 1,884 16,138 18,022 43,182 25,160 4,433 10,346 2,430 93,821 6/30/2030 6/30/ ,199 45,219 7,980 14,970 5,450 20,419 45,219 24,800 4,566 10,347 2, ,522 6/30/2031 6/30/ ,706 47,350 8,356 14,952 5,452 20,404 47,350 26,946 4,703 10,347 3, ,614 6/30/2032 6/30/ ,330 49,581 8,750 14,939 5,450 20,390 49,581 29,191 4,844 10,346 3, ,263 6/30/2033 6/30/ ,075 51,914 9,161 14,919 5,449 20,368 51,914 31,545 4,989 10,346 4, ,652 6/30/2034 Total $ 923,044 $ 784,557 $ 138,486 $ 102,083 $ 330,714 $ 432,797 $ 784,557 $ 351,760 $ 98,610 $ 127,210 $ 18,850 $ 43,587 $ 10,000 ** 6/30/09 actuals, $147k payment due to the City for FY08 is included for FY09 Column E $55M FY % Column F for FY calculated $190M ( 4.88%) ~4.36% fixed swap rate +.42 bps liquidity +.10 remarketing. Conversion of liquidity is an additional $456k annual in debt service Column K for FY17 thru 35 calculated $121M expansion - with 2 years cap int and 2 years delayed principal w/ 30 yr maturity, (5% rate)

17 SUMMARY OF INTERLOCAL AGREEMENTS BETWEEN WAKE COUNTY AND THE CITY OF RALEIGH REGARDING IMPLEMENTATION OF COUNTYWIDE OCCUPANCY AND PREPARED FOOD AND BEVERAGE TAX Date Agreement Reference 11/19/1991 Interlocal Agreement Key Provisions 1. County to initiate process to levy 6% occupancy tax and 1% prepared food and beverage tax. 2. Proceeds will be distributed in accordance with the Enabling State Legislation (Chapter 594 of the 1991 Session Laws) and this Interlocal Agreement. 3. All proceeds generated from said taxes shall be expended only for projects approved by this Agreement. Projects to be funded: A. Purchase of land for and construction of a Children s Museum in Raleigh B. Renovations to the existing Raleigh Civic Center C. Purchase of land for a new Convention Center in Raleigh D. Reserve fund for construction of new Convention Center in Raleigh E. Purchase of land for a Performing Arts Center in Raleigh F. Construction of a sports facility near RDU G. Additions to Five County Stadium H. Construction of a multi-purpose building known as Centennial Center in conjunction with NSCU I. Creation of a Future Projects Reserve Fund 4. County shall distribute proceeds in accordance with this Agreement 9/01/1992 Amendment to Interlocal Agreement 1. If undesignated proceeds are greater than estimated, the first $250,000 will be distributed to the City for use at its discretion and the next $250,000 will be distributed to the County for use at its discretion. 2. City will obtain financing for constructing the Convention Center and funds from the Reserve Fund will be used to assist with the debt service. 9/05/1995 Revised Interlocal Agreement 1. Projects revised to: A. Purchase of land for and construction of a Children s Museum in Raleigh B. Renovations to the existing Raleigh Civic Center C. Purchase of land for a Performing Arts Center in

18 Date Agreement Reference Key Provisions Raleigh D. Additions to Five County Stadium E. Exhibits for the North Carolina State Museum of Natural Sciences F. Construction of a sports facility comprised of soccer and baseball fields and related structures G. Creation of a Future Projects Reserve Fund 2. Maintains the following provision from the agreement dated 9/1/1992: If undesignated proceeds are greater than estimated, the first $250,000 will be distributed to the City for use at its discretion and the next $250,000 will be distributed to the County for use at its discretion. 12/3/1996 Amendment to the Revised Interlocal Agreement 5/1/1997 Second Amendment 1. Authorized disbursement of funds for the Performing Arts Center to the City of Raleigh. 2. Deleted contingency provisions related to development of Five County Stadium. 1. Amount of funding for Children s Museum increased by $4.5 million. 2. Amount of funding for Performing Arts Center increased by $10 million contingent upon raising $5 million in private investment. 3. Authorize use of revenues to fund debt service on $48 million of debt for construction of the Regional facility to be constructed adjacent to Carter-Finley Stadium. 4. Beginning in Fiscal Year 2001, distribute annually $1 million to each of the City and County for their sole use and discretion for funding any of the purposes enumerated in the Enabling Acts. 9/09/1998 Third Amendment 9/07/1999 Fourth Amendment 7/20/2000 Fifth Amendment Fund debt service required to retire $10 million in net construction funds for Five County Stadium Increased amount of funding for exhibits for the Natural Sciences Museum to $4 million (from $2 million) 1. Added funds of $1 million for Yates Mill Park 2. Added funds of $1 million for the American Tobacco Trail 3. Increased funds for Performing Arts Center to $14.1 million (from $12.1 million)

19 Date Agreement Reference 7/18/2000 Sixth Amendment 1/29/2001 Seventh Amendment 1/20/2004 Eighth Amendment Key Provisions Added funds for IMAX theatre totaling $ million. Project to be constructed next to the Children s Museum. Authorized distribution of $5 million for the Soccer Center 1. Established funding for the Raleigh Convention Center. Project Cost shall not exceed $200 million. 2. Dedicated 85% of uncommitted revenues and defined financing plan for the Convention Center. 3. Authorized City to utilize up to $1,000,000 additional per year for convention center operating expenses, and, if utilized, County receives two dollars for every one dollar utilized by the City. 4. Established a review of the funding on or before each five year anniversary of the agreement by the City Manager and County Manager. 11/22/2004 Ninth Amendment 9/19/2005 Tenth Amendment Increased not to exceed project cost on the Convention Center to $212 million. 1. Provided funding for the following projects from the 15% revenue not allocated to the Convention Center: a. North Carolina Museum of Art b. Cary Aquatics Facility c. North Carolina Museum of Natural Sciences d. North Carolina Ballet e. St. Augustine s College Track Project f. Falls Whitewater Park 2. Included language to further support the North Carolina Museum of Natural Science s Green Square Project: Agree to assist NC Museum of Natural Sciences in its effort to secure $4,000, including consideration of TIF. 2/02/2006 Eleventh Amendment 12/18/2006 Twelfth Amendment 4/23/2007 Thirteenth Amendment Increased not to exceed project cost on the Convention Center to $235,538,800. Increased not to exceed project cost on the Convention Center to $241,938, Established a Business Development Fund to support the new Convention Center (approved through 2015.) 2. Accelerated initial payment for the North Carolina Museum

20 Date Agreement Reference Key Provisions of Art Improvements. 3. Provided $26 million for capital improvements to RBC Center (through 2022); required matching funds by NSCU. 11/20/2007 Fourteenth Amendment 9/30/2008 Fifteenth Amendment 5/04/2009 Sixteenth Amendment Revised payment schedule of matching funds by NSCU established in the Thirteenth Amendment. Revised funding schedule between Town of Cary for Cary Aquatics Facility and North Carolina Museum of Natural Sciences. Reallocated funding previously identified for the Cary Aquatics Center to WakeMed Soccer Park, USA Baseball Complex and Cary Tennis Park

21

22

23 Wake County s Distribution In January 2004, the Board of Commissioners approved the following projects: o USA Basketball Facility Cary: $1,000,000 o Factory Kids Foundation Baseball Fields Wake Forest: $1,500,000 o Apex Performing Arts Center: $550,000 o Garner Park: $400,000 o Fuquay Varina Park: $350,000 o NC Ballet: $250,000 The County Major Facilities Capital Fund provides: o Capital repairs/improvements to Marbles/IMAX and Five County Stadium

24 Work Session Wake County Board of Commissioners Landfill Gas-to-Energy South Wake Landfill August 9, 2010 Discussion Topics Review Board Approved Actions from 10/5/2009 Review Landfill Gas Development RFP Process Review Evaluation Criteria Review Staff Recommendation Review Schedule Questions 1

25 BOC Actions Approved 10/5/09 Design & Bid Gas Collection & Control Distribute a RFP seeking proposals: Onsite power production to Progress Energy Offsite direct use with pipeline to Novartis Develop landfill gas rights agreement Further investigate Green House Gas (GHG) sale process Pursue permitting for pipeline to Novartis Landfill Gas Generation 2

26 Conceptual LFG System Phase I: Online Oct 2010 Conceptual LFG System Phase II: Online Mid- to Late

27 RFP for Landfill Gas Development RFP distributed to over 30 potential gas to energy developers in late Oct 09 Responses from 7 firms late Nov 09 (1 disqualified) Six firms short listed to three firms via qualifications review: Enerdyne (offsite direct use) Waste Management (offsite direct use) Ingenco (onsite power production) RFP for Landfill Gas Development Total revenue range proposed by vendors $12-15 M over the initial 15 year term Slightly greater than expected for the County to self-develop Waste Management withdrew from process in April 2010 Staff worked with Ingenco and Enerdyne May, June, July to confirm proposals 4

28 Staff Goals Maximize Revenue (boiler fuel, electricity, green house gas credits, other) Minimize Risks Energy prices (natural gas or electricity) Landfill gas utilization (minimize use of waste gas flare) Landfill gas quality (blending two landfills) System operations (how is project staffed) Secure Performance Guarantees Secure Quality Surety Instrument (how easily liquidated?) Evaluation Criteria Gas and Electricity Revenue Factors Impacting Revenue Gas Utilization Rate Future Energy Pricing Gas Quality Requirements System Operation Performance Guarantees Financing Plan Project Surety Instrument Proposed Revenue Sharing of Future Benefits Green House Gas Credit Revenue Staffing Plan Infrastructure Requirements Vendor Experience 5

29 Staff Findings Current market conditions for energy prices: Electricity prices more favorable than natural gas prices Natural gas prices forecasted to remain low (Energy Information Administration, 2010) Historic electricity price forecasts closely approximate actual prices (EIA, 2010) Historic natural gas price forecasts do not closely approximately actual prices (EIA, 2010) Revenue risk: (a) uncertainty in energy prices, (b) uncertainty in gas usage Evaluation Criteria Gas and Electricity Revenue Factors Impacting Revenue Gas Utilization Rate Future Energy Pricing Gas Quality Requirements System Operation Performance Guarantees Financing Plan Project Surety Instrument Proposed Revenue Sharing of Future Benefits Green House Gas Credit Revenue Staffing Plan Infrastructure Requirements Vendor Experience 6

30 Evaluation Criteria Gas and Electricity Revenue Factors Impacting Revenue Gas Utilization Rate Future Energy Pricing Gas Quality Requirements System Operation Performance Guarantees Financing Plan Project Surety Instrument Proposed Revenue Sharing of Future Benefits Green House Gas Credit Revenue Staffing Plan Infrastructure Requirements Vendor Experience Comparison of Proposals Criterion Offsite Direct Use Project Onsite Power Generation Project Pricing Approach (Revenue Potential) Enerdyne proposal based on fluctuating price schedule using the New York Mercantile Exchange (NYMEX) index for natural gas prices as the basis. Estimated gas sales revenue to County over 25 years is $33.5 million. Ingenco proposal based on fixed price schedule offered by Progress Energy for first 10 years of project. Revised fixed price schedules will be negotiated for subsequent 10 year periods. Estimated energy sales revenue to County over 25 years is $39.3 million. Staff prefers fixed price schedule for first 10 years of project. 7

31 Comparison of Proposals Criterion Offsite Direct Use Project Onsite Power Generation Project Landfill Gas Utilization Enerdyne proposal based on 145,000 MMBtu per year minimum commitment from Novartis (195,000 MMBtu maximum), and additional commitments from Potters Industries. A take all provision has not been offered at this time. Ingenco proposal based on "take all" provision offered by Progress Energy. Staff prefers "take all" provision offered by Progress Energy. Comparison of Proposals Criterion Performance Guarantees Offsite Direct Use Project Vendor proposes to make payments to Wake County based exclusively on meter readings for gas used in direct use applications. If vendor does not use gas, or uses a reduced volume of gas, vendor pays only for gas used. Onsite Power Generation Project Vendor proposes to make minimum monthly payments to Wake County regardless of whether energy is produced or not produced during any given month. Payments to Wake County shall be the greater of the minimum monthly payment guarantee or 22% of energy sales to Progress Energy. Staff prefers performance guarantee offered by Ingenco. 8

32 Comparison of Proposals Criterion Offsite Direct Use Project Onsite Power Generation Project Project Security/Guaranty Vendor proposes a performance bond. The value of the performance bond and the provisions for redeeming the performance bond have not been determined yet. Vendor proposes a $500,000 irrevocable letter of credit for the benefit of the County that can be used to correct a material breach of the contract by the vendor. Staff prefers Letter of Credit as surety instrument. Comparison of Proposals Criterion Offsite Direct Use Project Onsite Power Generation Project Gas Quality Requirements Gas quality at SWLF will fluctuate to accommodate regulatory compliance requirements, weather, and landfill operations. The gas quality for offsite direct use will need to be delivered at greater than 44% methane content to avoid disrupting the operation and performance of the boilers. Gas quality at SWLF will fluctuate to accommodate regulatory compliance requirements, weather, and landfill operations. The gas quality for onsite power generation will need to be delivered at greater than 30% methane content to avoid disrupting the operation and performance of the onsite power generating units. Staff prefers increased flexibility offered by Ingenco proposal for landfill gas quality. 9

33 Comparison of Proposals Criterion Offsite Direct Use Project Onsite Power Generation Project Staffing Plan Vendor proposes to monitor site remotely with supervisory control and data acquisition (SCADA) system, and provide twice per day onsite instrument inspections. Staff have 24 hour on call capabilities. Vendor proposes to provide onsite staffing for the project 24 hours per day, seven days per week. Staff prefers 24/7 staffing plan offered by Ingenco. Staff Recommendation Current/forecasted market conditions favor electricity Contract with Ingenco/Progress Energy for 10- years Fixed price schedule Take-all provision Performance guarantee Maximize flexibility for landfill gas quality 24/7 staffing plan In 10 years, issue another RFP for landfill gas development Assess electricity prices versus natural gas prices Contract with most favorable County benefits from potential market changes 10

34 Onsite Power Generation Proposal (10 Years) Guaranteed Gas Usage SCFM Projected LFG Recovery Potential (SCFM) Ingenco Guaranteed Useage Enerdyne Guaranteed Useage New RFP process for next increment of landfill gas Year Year 10 Current Schedule Select Landfill Gas Developer September 2010 Landfill Gas Collection and Flare October 2010 Landfill Gas Utilization October December

35 QUESTIONS 12

36 MEMORANDUM TO: FROM: SUBJECT: David Cooke, County Manager Scott Warren, County Attorney Joe Durham, Deputy County Manager Tommy Esqueda, Environmental Services Director John Roberson, Project Manger, Facilities Design and Construction Landfill Gas Beneficial Use Project Project Developer Selection Process and Recommendation DATE: August 5, 2010 The purpose of this memorandum is to present the findings and recommendations of the Request for Proposal (RFP) process to select a private sector firm to plan, permit, design, construct, operate, maintain and monitor a landfill gas beneficial use project at the South Wake Landfill site. 1.0 BACKGROUND In September 2009, Wake County Government completed a feasibility study (2009 Landfill Gas Study) of beneficial use options for landfill gas produced at the County s South Wake and Feltonsville Landfills. The results of the 2009 Landfill Gas Study indicated that electrical power generation, direct use by industrial users as boiler fuel, and voluntary combustion for greenhouse gas credits are three technically and financially feasible projects for the County to pursue. On October 5, 2009, a presentation of the 2009 Landfill Gas Study findings was made to the Wake County Board of Commissioners. At the conclusion of the October 5, 2010, presentation, the Board of Commissioners directed staff to initiate the following activities: 1. Initiate permitting and design activities for the well fields, blower station and waste gas flare, now called the Gas Collection and Control System. 2. Initiate planning, permitting and design for a gas pipeline from the South Wake Landfill to Novartis for an offsite, direct use project. 3. Initiate preparation of a Landfill Gas and Site License Agreement as the contract instrument between the County and a private sector firm to purchase the landfill gas rights from Wake County and a develop a landfill gas beneficial use project. 4. Initiate a request for proposal process to solicit bids from private sector firms to purchase the landfill gas rights from Wake County and develop a landfill gas beneficial use project.

37 MEMORANDUM David Cooke, Scott Warren, Joe Durham Staff Recommendation Landfill Gas Beneficial Use Project August 5, 2010 Page 2 of 9 The permitting and design of the Gas Collection and Control System is complete, and a construction contract has been awarded to T&K Construction Company. The new facilities are scheduled to be placed into service in October The planning and preliminary design for the gas pipeline from the South Wake Landfill to Novartis is complete. Initial reviews have occurred with NCDOT for encroachment purposes, however, the plans have not been officially submitted awaiting a decision on the type of project (power generation or direct use) that the County will be pursuing. The draft Landfill Gas and Site License Agreement is complete, and the final Agreement form will be prepared upon selection of a private sector firm to purchase the landfill gas rights from Wake County to develop a landfill gas beneficial use project. 2.0 REQUEST FOR PROPOSAL PROCESS Wake County Government issued a Request for Proposal (RFP) to solicit proposals from qualified bidders to make payments to Wake County Government for the right to develop landfill gas facilities for commercial purposes using landfill gas from the South Wake and Feltonsville Landfills. The scope of services defined in the RFP included planning, permitting, financing, design, construction, operation, maintenance, and environmental monitoring services for facilities associated with the beneficial use of landfill gas. In addition, the scope of services included marketing, sale and distribution of the full market value of the landfill gas, including all environmental attributes, tax credits, and tax incentives. 2.1 Distribution of RFP The RFP was issued in late October 2009 and distributed to over 30 potential Landfill Gas to Energy (LFG2E) project developers for consideration. Seven proposals were received on November 18, One of the 7 proposals was disqualified due to a lack of submission of the required proposal security (bond). The remaining 6 firms were as follows: 1. Ameresco 2. Blue Source 3. Element Markets 4. Enerdyne 5. Ingenco 6. Waste Management

38 MEMORANDUM David Cooke, Scott Warren, Joe Durham Staff Recommendation Landfill Gas Beneficial Use Project August 5, 2010 Page 3 of Proposal Review Process An RFP selection committee was established to review the proposals and conduct interviews of shortlisted firms. The RFP selection committee consisted of four Wake County employees, one employee from the Town of Apex, one employee from the Town of Cary, and one employee from the Town of Holly Springs. A summary of the proposal review process is presented in Attachment A to this memorandum. Based on the results of the proposal review process, the selection committee shortlisted three firms for interviews: Enerdyne, Ingenco, and Waste Management. 2.3 Interviews with Short-Listed Firms On December 15, 2009 the selection committee conducted interviews of the three (3) short listed firms. Based upon the interviews and further internal discussions it was decided to allow all three firms to remain in contention for the project award. 2.4 Request-for-Clarification Upon completion of the interviews and completion of a draft Landfill Gas and Site License Agreement, Wake County issued a Request for Clarification on March 29, 2010, to all three short listed firms. The principal request items of the Request for Clarification were comments on the draft Landfill Gas and Site License Agreement, proposed payment schedule to Wake County, and proposed implementation schedule. The deadline for submitted the requested additional information was April 12, Enerdyne and Ingenco submitted the requested information, and Waste Management declined to provide additional information and formally withdrew from the selection process. 3.0 Comparison of Beneficial Use Options Based on the information provided by Enerdyne and Ingenco on April 12, 2010, Wake County staff communicated with each firm separately to review the specific details of each proposal. Consistent with the findings of the 2009 Landfill Gas Study, the results of the RFP process and supplemental communications with Enerdyne and Ingenco confirmed that onsite electrical power generation and offsite direct use as boiler fuel are technically and financially feasible projects for the County to pursue. A comparison of the two project options are presented in Table 1.

39 MEMORANDUM David Cooke, Scott Warren, Joe Durham Staff Recommendation Landfill Gas Beneficial Use Options August 5, 2010 Page 4 of 10 TABLE 1 Summary Comparison of Beneficial Use Options Criterion Offsite Direct Use Project Onsite Power Generation Project Project Description Vendor proposes use landfill gas as a replacement for natural gas in a boiler operation to produce steam and hot water. Vendor proposes to use landfill gas as a fuel to run diesel engines to produce electricity. Estimated Revenue to Wake County for Gas or Electricity Sales For 25 year term of Agreement, and full utilization of forecasted landfill gas production, the estimated revenue from gas sales is $36.8 million. This is for landfill gas sales only. For 25 year term of Agreement, and full utilization of forecasted landfill gas production, the estimated revenue from gas sales is $39.3 million. This is for electricity sales only. Estimated Revenue to Wake County for Greenhouse Gas Credit Sales Revenue from the sale of greenhouse gas credits available to the County while County can voluntarily destroy (burn) landfill gas. When regulations require County to destroy landfill gas, revenue from green house gas credits no longer available. Vendor proposes to pay Wake County 90 percent of total green house gas revenues, and 10 percent will be allocated for solication, registration, and verification costs. Total GHG payment estimated at $8.7 million. Revenue from the sale of greenhouse gas credits available to the County while County can voluntarily destroy (burn) landfill gas. When regulations require County to destroy landfill gas, revenue from green house gas credits no longer available. Vendor proposes to pay Wake County 70 percent of net green house gas revenues after solicitation, registration, and verification costs are paid. Total GHG payment estimated at $7.2 million. Projected Landfill Gas Utilization Rate The South Wake and Feltonsville Landfills will produce approximately 1.6 million MMBtu per year at peak landfill gas production. Offsite direct use project at Novartis will use landfill gas in the range of 145,000 to 195,000 MMBtu per year. Additional users and infrastructure will be required to use all available gas. A contractually binding "take all" provision is not currently being offered by the vendor or by potential landfill gas users. The South Wake and Feltonsville Landfills will produce approximately 16 MW at peak landfill gas production. A contractually binding "take all" provision is being offered by Progress Energy for the first 10 years of the project, requiring Progress Energy to take all the power generated by the vendor's onsite power generation units.

40 MEMORANDUM David Cooke, Scott Warren, Joe Durham Staff Recommendation Landfill Gas Beneficial Use Options August 5, 2010 Page 5 of 10 TABLE 1 Summary Comparison of Beneficial Use Options Criterion Offsite Direct Use Project Onsite Power Generation Project Factors Impacting Revenue Potential Over the 25 year life of the project, revenue for offsite direct use project will fluctuate based on four factors: (1) market based fluctuations in natural gas prices, (2) seasonal, weather related, fluctuations in gas usage by Novartis and others, (3) seasonal, production related, fluctuations in gas usage by Novartis and others, and (4) operation and performance of the gas fired boilers, which will be owned, operated, and maintained by third parties (maximum revenue achieved with maximum online time). Over the 25 year life of the project, revenue for onsite power generation project will fluctuate based two factors: (1) Fixed power purchase rates ($/MwH) offered by Progress Energy, and (2) operation and performance of the power generating units, which will be owned, operated, and maintained by the vendor (maximum revenue achieved with maximum online time). Performance Guarantees Vendor proposes to make payments to Wake County based exclusively on meter readings for gas used in direct use applications. If vendor does not use gas, or uses a reduced volume of gas, vendor only pays for what is used. Vendor proposes to make minimum monthly payments to Wake County regardless of whether energy is produced or not produced during any given month. Payments to Wake County shall be the greater of the minimum monthly payment guarantee or 22% of energy sales to Progress Energy. Future Energy Pricing Considerations The 2011 forecasted price of natural gas is estimated to be $5.16 per MMBtu, and the 2035 forecasted price of natural gas is estimated to be $8.06 per MMBtu. The EIA reports that there is a great deal of uncertainty about the long term trend in natural gas prices in light of the growing development of shale gas resources (Source: Energy Information Administration, Annual Energy Outlook 2010). The 2011 forecasted price of electricity is estimated to be $86 per MwH, and the 2035 forecasted price of electricity is estimated to be $102 per MwH. Given the low forecasted price for natural gas, it is projected that new naturalgas fired power plants will account for 46 of new electrical generation capacity additions to the year 2035 (Source: Energy Information Administration, Annual Energy Outlook 2010). Financing Plan Vendor's financing plan is based on use of internal funds, and financing from three commercial banks. Vendor's financing plan is based on use of internal funds only. Benefiting Party Offsite direct use project provides Novartis (and other potential users) with alternative, reduced cost fuel source for boiler operations. Onsite power generation project provides Progress Energy with a locallyproduced, renewable energy source to comply with Senate Bill 3 (Renewable Energy and Energy Efficiency and Portfolio Standard).

41 MEMORANDUM David Cooke, Scott Warren, Joe Durham Staff Recommendation Landfill Gas Beneficial Use Options August 5, 2010 Page 6 of 10 TABLE 1 Summary Comparison of Beneficial Use Options Criterion Offsite Direct Use Project Onsite Power Generation Project Infrastructure Requirements Offsite direct use project at Novartis requires installation of 3.5 miles of 14 inch pipeline offsite of Wake County property. Additional pipelines required to serve other potential customers. County will own and operate landfill gas collection and control system and expand system as required. All infrastructure beyond the gas collection and control system is the responsibility of the vendor. Onsite power generation project requires installation of an electrical interconnect between the power generating units and Progress Energy s distribution system. The electrical inter connect will be located on Wake County property. County will own and operate landfill gas collection and control system and expand the system as required. All infrastructure beyond the gas collection and control system is the responsibility of the vendor. Project Security/Guaranty Vendor proposes a performance bond. The value of the performance bond and the provisions for redeeming the performance bond have not been determined yet. Vendor proposes a $500,000 irrevocable letter of credit for the benefit of the County that can be used to correct any material breach of the contract by the vendor. Staffing Plan Vendor proposes to monitor site remotely with supervisory control and data acquisition (SCADA) system, and provide twice per day onsite instrument inspections. Staff have 24 hour on call capabilities. Vendor proposes to provide onsite staffing for the project 24 hours per day, seven days per week. Vendor Experience Vendor was established in 1993 and has built/developed 30 landfill gas projects with 10 in North Carolina. Vendor operates/maintains some of these facilities and in other cases has turned those responsibilities over to another party. Vendor headquarters are in Matthews, NC. Vendor was established in 1989 and currently has 12 facilities in operation. Vendor is responsible for the operation and maintenance of all 12 facilities. Vendor headquarters is in Richmond, VA. Gas Quality Requirements Gas quality at SWLF will fluctuate to accommodate regulatory compliance requirements, weather, and landfill operations. The gas quality for offsite direct use will need to be delivered at greater than 44% methane content to avoid disrupting the operation and performance of the boilers. Gas quality at SWLF will fluctuate to accommodate regulatory compliance requirements, weather, and landfill operations. The gas quality for onsite power generation will need to be delivered at greater than 30% methane content to avoid disrupting the operation and performance of the onsite power generating units.

42 MEMORANDUM David Cooke, Scott Warren, Joe Durham Staff Recommendation Landfill Gas Beneficial Use Options August 5, 2010 Page 7 of 10 TABLE 1 Summary Comparison of Beneficial Use Options Criterion Offsite Direct Use Project Onsite Power Generation Project Variations from Initial September 2009 Consultant Study 2009 Consultant Study estimated revenue potential for direct use project of $11.0 million for initial 15 year term. Current proposal for first 15 years is $12.7 million Consultant Study estimated revenue potential for onsite power generation project of $10.2 million for initial 15 year term. Current proposal for first 15 year years is $13.8 million. Revenue potential increase due to proprietary use of special engine generator systems that reduce capital requirements for vendor. Proposed Revenue Sharing of Future Grants, Credits, or Benefits If future revenue generating grants, credits, or benefits (e.g. renewable energy credits) are identified as applicable to the project, the vendor will share 25% of the revenue with Wake County. If future revenue generating grants, credits, or benefits (e.g. renewable energy credits) are identified as applicable to the project, the vendor will share 50% of the revenue with Wake County. Risk to the County Risks to the County are as follows: (1) Uncertainty in gas utilization rate by potential users for entire duration of project, and (2) uncertainty in future natural gas prices for duration of project. Risks to the County are as follows: (1) Uncertainty in electricity prices after initial 10 years of project.

43 MEMORANDUM David Cooke, Scott Warren, Joe Durham Staff Recommendation Landfill Gas Beneficial Use Project August 5, 2010 Page 8 of STAFF RECOMMENDATION Based on the information provided by Enerdyne and Ingenco, and additional research conducted by Wake County staff, Wake County staff recommends entering into final contract negotiations with Ingenco to develop a landfill gas project for the production of electricity on site at the South Wake Landfill for an initial term of 10 years. Based on current market conditions for electricity prices and natural gas prices, electricity sales yield a greater financial benefit for Wake County than direct use gas sales. However, given the uncertainty in future energy prices for electricity and natural gas, it is further recommended, that Wake County enter into a 10 year contract for landfill gas rights. The 10 year contract term is recommended as that is the term currently being offered by Progress Energy to Ingenco for a fixed price schedule for electricity sales. At the conclusion of the initial 10 year contract term, Wake County should initiate another RFP process for the next increment of landfill gas availability. By limiting the initial contract to 10 years, Wake County will be afforded the opportunity assess the market conditions for electricity prices and natural gas prices at a future date, and contract with the most favorable at that time. The criteria used to prepare this recommendation are presented in Table 2.

44 MEMORANDUM David Cooke, Scott Warren, Joe Durham Staff Recommendation Landfill Gas Beneficial Use Project August 5, 2010 Page 9 of 9 Table 2 Summary Comparison of Beneficial Use Options Criterion Offsite Direct Use Project Onsite Power Generation Project Comments Pricing Approach Enerdyne proposal based on fluctuating price schedule using the New York Mercantile Exchange (NYMEX) index for natural gas prices as the basis. Estimated gas sales revenue to County over 25 years is $36.8 million. Ingenco proposal based on fixed price schedule offered by Progress Energy for first 10 years of project. Revised fixed price schedules will be negotiated for subsequent 10 year periods. Estimated energy sales revenue to County over 25 years is $39.3 million. Staff recommends fixed price schedule offered by Ingenco for first 10 years of project. Landfill Gas Utilization Enerdyne proposal based on 145,000 MMBtu per year minimum commitment from Novartis (195,000 MMBtu maximum), and additional commitments from Potters Industries. A take all provision has not been offered at this time. Ingenco proposal based on "take all" provision offered by Progress Energy. Staff recommends "take all" provision offered by Ingenco from Progress Energy. Performance Guarantees Vendor proposes to make payments to Wake County based exclusively on meter readings for gas used in direct use applications. If vendor does not use gas, or uses a reduced volume of gas, vendor pays only for gas used. Vendor proposes to make minimum monthly payments to Wake County regardless of whether energy is produced or not produced during any given month. Payments to Wake County shall be the greater of the minimum monthly payment guarantee or 22% of energy sales to Progress Energy. Staff recommends performance guarantee offered by Ingenco. Surety Instrument Vendor proposes a performance bond. The value of the performance bond and the provisions for redeeming the performance bond have not been determined yet. Vendor proposes a $500,000 irrevocable letter of credit for the benefit of the County that can be used to correct any material breach of the contract by the vendor. Staff recommends Letter of Credit offered by Ingenco. Gas Quality Requirements Gas quality at SWLF will fluctuate to accommodate regulatory compliance requirements, weather, and landfill operations. The gas quality for offsite direct use will need to be delivered at greater than 44% methane content to avoid disrupting the operation and performance of the boilers. Gas quality at SWLF will fluctuate to accommodate regulatory compliance requirements, weather, and landfill operations. The gas quality for onsite power generation will need to be delivered at greater than 30% methane content to avoid disrupting the operation and performance of the onsite power generating units. Staff recommends Ingenco proposal for landfill gas quality. Staffing Plan Vendor proposes to monitor site remotely with supervisory control and data acquisition (SCADA) system, and provide twice per day onsite instrument inspections. Staff have 24 hour on call capabilities. Vendor proposes to provide onsite staffing for the project 24 hours per day, seven days per week. Staff recommends 24/7 staffing plan offered by Ingenco.

45 Wake County Human Services Wake County Public School System School based Support Services

46 Content Our Partnership Our Outcomes WCHS Structure WCPSS Student Support Services MOU School Services Budget Summaries Human Services WCPSS Services: School Nursing Services Youth Development Services Ready To Learn Services Family Support Services School Mental Health Services School and Family Success Project

47 Our Partnership Benchmarking WCHS/WCPSS School Partnership is unique in North Carolina and in the US. We share the goals of student and family success, and a healthy, strong, vibrant community for over thirty years. Focus: the whole child. Share a significant overlap in targeted population. We share the goal of human capital development. We jointly share resources. Together, we leverage community partnerships and build community capacity.

48 Outcomes 1. Increased staff collaboration to support student success 2. Better access to health and family support services for students and families 87% of children with identified health needs (diabetes, asthma, immunizations, communicable disease, etc.) linked with medical homes and secured care. 6,261 doses of H1N1 provided to school children at 21 school based clinics which enabled improved attendance. 3. Children are better prepared and ready for school 99% of children demonstrated knowledge of print concepts. 98% of parents have a better understanding of kindergarten expectations. 4. Student Success 76% improvement in grades 97% improvement in mood 85% improvement in classroom behavior 67% of young people involved in juvenile justice had no further court involvement Students graduating on time 5. Increased home/school/community connections

49 Wake County Human Services Social Services ESS Child Welfare Children Youth And Family Public Health Health Clinics Behavioral Health Administration/ Operations Local Management Entity Business & Operations Business & Operations Business & Operations Business & Operations Business & Operations Business & Operations Business & Operations Business & Operations Medicaid Food & Nutrition Crisis Intervention Work Child Welfare Core Services Foster Care Assistance WIC MCH Case Management Child Care Subsidy Health Promotion Education AIDS HIV Outreach Epidemiology Surveillance MCH Clinics Comm Disease Clinics Dental Clinic Crisis Services ATC SA Adult MH Regional Networks of Care Housing Transportation LME Systems Management Purchase of Services First Employment Child Support Adoptions Assistance RTLC Early Childhood School Readiness Youth Services SB Mental Health School Nursing PH Emergency Pharmacy Services Lab Services Children MH DD Budget & Finance Director s Office Older Adults Family Support

50

51 WCPSS-WCHS Memorandum of Understanding Through a Memorandum of Agreement, WCHS and WCPSS share joint responsibilities for: Student Health Services WCHS provides staffing and clinical supervision to school based nurses, mental health counselors, and dental hygienists. WCPSS works closely with WCHS to assure that WCPSS Human Services Handbook policies and procedures are implemented, and to assure joint planning and ongoing communication with the Superintendent s Office, regional leadership and all school campus principals. Public Health Collaborations Both agencies collaborate on public information initiatives such as H1N1 response; communicable disease response; disaster preparedness planning and response; health promotion and disease prevention joint curricula development and educational initiatives. Family Support and Early Childhood Education WCHS provides coordination and ensures delivery of Family Support Services to identified children and families; works with WCPSS to provide support pregnant teens; assures that Ready To Learn Center (RTLC) Coordinators and principals are collaborating on RTLC services; provides consultation, assistance, training on child abuse and neglect policies and procedures. WCPSS supports the ongoing operation of the RTLC s; completes Facility Use Forms for the partnerships, and participates in any annual needs assessments for services. Youth Development Planning and delivery of educational programs during school hours, including substance abuse and delinquency prevention. Planning and delivery of educational programs during non school hours including efforts to build and sustain capacity for academic support and prevention education among community youth development providers. Curricula development, when requested by WCPSS.

52 WCHS Budget Summary Human Services Program Services Cost County Funded FTEs School Nursing $4,668,837 $4,655, Youth Development $378,811 $252,625 6 Ready To Learn $412,876 $451, Family Support $83,422 2 School Mental Health $944,693 $854, School & Family Success Project $148,372 $55, Total $6,637,011 $6,270,

53 WCPSS Budget Summary WCPSS Services Total Cost Description School Nursing $1,649,255 Includes direct services as indicated by nursing supervision School Mental Health $596,400 for portion of social workers salaries only Includes direct services in collaboration with SBMH; Suicide Prevention, Crisis Response by school psychologists and social workers Pre School Programs $19,168,122 Includes Title One; Special Education Services, Project Enlightenment Counseling and Student Services $37,138,002 Includes counselors, social workers, nurses, psychologists, services to pregnant students and interventions prior to referral to special education At Risk Interventions $163,429 Includes pre referral interventions at the student support team level Total $95,853,210 Includes state and local funding

54 School Nursing Promote health, safety and educational success, of the school age child in Wake County; serving students, families and school staff based on a schools assessed acuity level, through partnerships, evidence based practice and professional standards of care. Nursing Assessments Training/supervision of school staff Health Care Plans Immunizations/communicable disease Care Coordination Nursing Consultation Medication monitoring Screening Health Education Presentations Health Care Information Exchange Referral and follow up Charge for Contractual Supplies/ Total County DIVISION Federal State Local Service Other Total Revenues Salary/ Benefits Services Materials Other Expenditures Funded Public Health $65,000 $47,851 $112,851 $4,652,756 $4,695 $11,386 $4,668,837 $4,655,986 Service Admission Care into Program Training & Supervision of School Staff Program Description Facilitate entry of student for 1on 1 services into program(excludes mass screenings /clinics/group presentations) Training, supervision and monitoring school staff & students on specific individual medical procedures, medication administration, and health care plans. Intensive Nursing Care Coordination Coordinating care and advocating for specified individuals across settings to reduce cost, reduce resource use, improve quality of health care, and achieve desired outcomes. Mass Screening of Students (i.e. vision, Determination of health risks, analysis of potential risk factors and prioritization of risk dental, Kindergarten Health Assessments) reduction strategies for an individual or group. Total Number of People Served Unduplicated 17,455 students Unduplicated 2,778 doctor s orders for procedures. Duplicated 13,854 services Unduplicated 470 students. Duplicated 6,350 individual services; home visits (643) Unduplicated students screened 42,361 referred 3,125; secured care 2,693 Educational Presentations Facilitation of health education presentations Unduplicated 2,144 (70,342 participants) Immunizations/Communicable Disease Public health surveillance to decrease and manage incidence & prevalence of comm. disease Assessments 5,615;referred 2,767; secured 2,404 Assessments 30,984;referred 7,649; Other Assessment, Referral, Secured Care Utilizing the nursing process; intervening to keeping child safe, healthy and attending school secured 6,468

55 4 H Youth Development Life skills development, science based prevention delivered within groups in a school based setting or as a strategy to support educational success and family engagement. Involves primarily staff led work with target populations during or after school. Adolescent Substance Abuse Prevention Groups Co educational Life Skills Groups provided in schools and targeting youth experiencing multiple risk factors Resource Development effort to create & sustain effective non school hour spaces for populations prioritized by WCHS & WCPSS Teen Goal Setting and Life Skills Groups Charge for Total Salary/ Contractual Supplies/ Total County DIVISION Federal State Local Service Other Revenues Benefits Services Materials Other Expenditures Funded CYF $126,185 $126,185 $356,135 $22,676 $378,811 $252,626 Service Program Description 4-H SuperSeed SuperSeed is a 4 H Youth Development program that utilizes science based curricula and Substance Abuse and Mental Health Services Administration (SAMHSA) best practices to provide substance use prevention services to high risk youth. 4-H Spaces Spaces serves youth ages in a small group settings across Wake County. Youth Develop skills in the areas of critical thinking, decision making, goal setting, and social skills development. Parents, schools, juvenile justice professionals, and law enforcement agencies refer youth to Spaces. Making Magic Making Magic provides summer camp experiences to Wake County youth who otherwise would not be able to participate. Making Magic works collaboratively with existing and emerging community camp providers to incorporate academic support, physical fitness, life skills development, and family involvement programming which have proven valuable assets to vulnerable children and families. The focus of the program is to provide 6 weeks of camp/per child and prevent summer learning loss. 4-H Teen Discovery Teen Discovery is a life skills experience intended to engage adolescents age in exploring various interests and developing a greater sense of future purpose. The interactive series of lessons exposes youth to positive youth development learning ecologies that are experiential in nature. 4 H staff partner with a co facilitator from the school that hosts the program. Total # of People Served 97 students (unduplicated) 42 students (unduplicated) 279 students (unduplicated) 140 Students (unduplicated) 558 total youth served

56 Ready to Learn The goals of the program are to encourage the healthy development and educational success of all children and to increase the capacity of families to serve as the primary nurturers, teachers and advocates for their children. Parent Child Interaction Groups Kindergarten Readiness Groups Parenting Workshops Developmental Screenings Consultation and Referral DIVISION Federal State Local CYF Charge for Service Other WCPSS Salary/ Benefits Contractual Services Supplies/ Materials Total Revenues (TANF) $96,771 $377,607 $96,771 $389, 126 $12, 750 Total Expenditures County Funded Other $11,000 (Travel) $412,876 $451,127 Service Program Description 1 Parent-Child Interactive Groups Structured story time and learning activity for preschool age children and their parents/caretakers. RTL staff model developmentally appropriate activities for parents as they participate in creative play. Total Number of People Served 5660 Children 1718 Sessions 2 Kindergarten Readiness Groups Structured sessions for rising kindergarteners in the fall of the coming year. Parents/Caretakers attend the sessions with their child and gain a better understanding of what is expected of their child and have the opportunity to ask questions and address concerns. 3 Parenting Workshops Informational workshops on child development, positive discipline, health related concerns, and various other topics are offered to parents/caretakers. Workshops may also be provided for day care, school staff and other human service professionals. 865 Children 317 Sessions 51 Workshops

57 WCPSS Preschool Services Students in preschool receiving special education services: 1104 Total Expenditures $9,493,030 Students in preschool classrooms receiving Title I Services: 510 Total Expenditures (including set up for 26 new classrooms) $3,675,092

58 Family Support General description: Family Support Services provides voluntary prevention focused services to multi need families with school aged youth. Specific target populations include youth being raised by relatives and youth at risk of abuse, neglect or dependency and homeless families. Staff support educational success and accept referrals from school personnel. At Risk Case Management Human Capital Development Information and Referral Service Linkage Life Coaching Support Groups Consultation with school personnel Resource development DIVISION Federal State Local Charge for Service Other Total Revenues Salary/ Benefits Contractual Services Supplies/ Materials CYF $92,160 $1,500 $93,660 $80,232 $500 Total Expenditures County Funded Other $2,690 (Travel) $83,422 Service Program Description Total Number of People Served 1 At Risk Case Management Intense assessment, referral linkage and monitoring of services to specific youth billable to Medicaid 30 children 2 Human Capital Development Multiple strategy approach to help families develop and improve economic stability, health and wellness which supports student success. 702 families 1181 children 3 Consultation Provide resource information to school personnel regarding specific youth and families as 4 hours per week per worker Total 44 hours per week.

59 School Mental Health General description: Wake County Human Service s Child Therapists contribute to students educational success by providing a range of school based clinical psychiatric services to low income children in need of mental health services. Our referrals come from the schools and this intervention targets specific behaviors and emotional problems interfering with the child s school performance. Service outcomes are positive for grade promotion, improvements in classroom behavior, mood and grades. Service 1: Coordinate and assign all Wake County School Based MH Referrals Service 2: Psychiatric Evaluations Service 3: Weekly Psychotherapy Service 4: Clinical Assertive Engagement and crisis interventions Service 5: Depression Screenings Service 6:Building school capacity through high level psychiatric consultations, advocacy and clinical trainings DIVISION Federal State Local Charge for Service CYF * LME Other Total Revenues Salary/ Benefits Contractual Services Supplies/ Materials Medicaid + $32,805 IPRS= $89,785* $917,684 $5,150 Other Total Expenditures County Funded $21,859 travel $944,693 $854,908 Service 1) Coordinate and assign all mental health referrals 2) Psychiatric Evaluations Program Description Each referral is reviewed, insurance checked and assigned a therapist Assess each child s level of functioning across all domains. Gather relevant developmental information, family dynamics, educational history, mental status exam to determine Diagnosis and Treatment Plan. 3) Weekly Psychotherapy Therapists meet weekly with the student at their school site to enable access to services; therapy focuses specifically on school related problems; families are linked to additional support services. 4) Assertive Engagement and crisis interventions 5) Depression Screenings 6) Building capacity through consultations and clinical trainings Brief Therapy, Crisis Intervention and Case Management provided to non-clients Provided training and staffing for screening identified adolescents for depression and link to services Educate school staff re: signs and symptoms of diagnoses, behavioral interventions and community resources Total Number of People Served Unduplicated: 872 Unduplicated:155 Unduplicated: 257 Unduplicated: 92 Number served :200+ Number served: 200