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Home My WebLink AboutORD-2004-100 - Capital Project Ordinance - Chapel Hill-Carrboro City Schools High School #3ORANGE COUNTY ~~ ~ ~ _ ado ~j _ j ~o BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: June 23, 2004 Action Agenda Item No.~J- ~ SUBJECT• Capital Project Ordinance -Chapel Hill-Carrboro City Schools High School #3 DEPARTMENT: Manager/Budget PUBLIC HEARING: (YIN) No ATTACHMENT(S): Capital Project Ordinance 5/21/04 CHCCS Superintendent Memo 6/03/04 County Manager Memo INFORMATION CONTACT: Rod Visser, ext 2300 Donna Dean, ext 2151 TELEPHONE NUMBERS: Hillsborough 732-8181 Chapel Hill 968-4501 Durham 688-7331 Mebane 336-227-2031 PURPOSE: To consider approval of an amended capital project ordinance for Chapel Hill- Carrboro City Schools (CHCCS) High School #3 to appropriate additional funds for land acquisition. BACKGROUND: In a May 21, 2004 memo, the CHCCS Superintendent informed the County Manager that CHCCS had successfully concluded negotiations with the owner of the remaining property.to be acquired as the site of the system's third high school. An additional $1,142,000 beyond that already appropriated by the Board of County Commissioners is to be paid by June 30, 2004 to Glover Enterprises. This brings the total purchase price for the Glover property to $2.8 million, and the total amount budgeted for land-acquisition within the overall high school construction project to $3,677,700. In keeping with the interlocal agreement governing the third CHCCS high school, the additional cost for this land must be funded through CHCCS "pay-as-you-go" capital funding sources that do not require the County to incur additional debt. The approach that would best address CHCCS needs in this situation while remaining consistent with the interlocal agreement involves the appropriation of accumulated school impact fees, as outlined in the accompanying June 3, 2004 memo from the County Manager. Adoption of the accompanying amended capital project ordinance will provide authorization for the County and CHCCS staffs to expend the funds necessary to complete acquisition of the Glover property for the site of the new high school. FINANCIAL IMPACT: The amended capital project ordinance will appropriate an additional $1,142,000, in school impact fees that are already on hand in the CHCCS Impact Fee Trust Fund. RECOMMENDATION(S): The Manager recommends that the Board approve the capital project ordinance. DRAFT a High School #3 Chapel Hill-Carrboro City Schools Capital Project Ordinance Be it ordained by the Orange County Board of County Commissioners that pursuant to Section 13.2 of Chapter 159 of the General Statutes of North Carolina, the following capital project is hereby adopted. Section 1. The project authorized provides funds for the Chapel Hill-Carrboro City Schools to acquire property for and begin planning for the design, construction, and equipping of a new high school facility. Anticipated revenues for the project consist of 2001 voter approved bond funds, school construction impact fees, and a private placement loan. Section 2. The officers of the County are hereby directed to proceed with the project within the budget contained herein. Section 3. The following revenue is anticipated to complete this project: roug 2002-03 FY 2003-04 roug 2003-04 Sales Tax $0 $0 c o0 onstruction act Fees $0 $5,272,523 $5,272,523 u c coo ui ing Funds $0 $0 2001 Bonds $0 $0 Other $0 $0 Total Fundin $0 $5,272,523 $5,272,523 Section 4. The following amount is appropriated for this project: 'Through FY 2002-03 FY 2003-04 17irough FY 2003-04 Construction $0 $0 Site ~ ition $0 $3,677,700 $3,677,700 Site Development $0 $0 $0 Fees $0 $1,103,000 $1,103,000 Mobile Classroo~~ $0 491,823 $491,823 Technology $0 $0 C`onstr~fion Contingency $0 $0 Una-Tirr~e Start Up Costs $0 $0 Total $0 $5,272„523 $5,272,523 Section 5. Pursuant to paragraph 5 of Orange County's "Policy on Planning and Funding School Capital Projects", -the Board of Commissioners will appoint one Commissioner representative (Commissioner Margaret Brown) .and one or two staff representatives to partner with school representatives as project plans develop. DRAFT 3 Section 6. The effective .date of this ordinance is the effective date of an interlocal agreement governing this project between the Chapel Hill-Carrboro Board of Education and the Orange County Board of Commissioners. The ordinance will remain in effect from its effective date through June 30, 2007. Adopted this 23d day of June, 2004. CHAPEL HELL-CARRBORO CITY SCHOOLS .Lincoln Center, Merritt Mill Road Chapel Hill, North Carolina 27516 Telephone: (919) 967-8211 Neil G. Pedersen Superintendent Raymond J. Reitz Chief Technology Officer TO: John Link County Manager FROM: Neil G. Pederse .Superintendent Nettie Collins-Hart, Assistant Superintendent for Instructional Services Steve Scroggs, Assistant Superintendent for Support Services RE: Appropriation of Funds for Third High School Site DATE: May 21, 2004 Pursuant to the steps required for reaching a settlement on the price of land acquired through public condemnation, our attorney met with the representatives of Glover Enterprises on May 13, 2004 in an effort to ab ee upon a sale price for the Glover property that is needed for the third high school. At the conclusion of the negotiations, Mr. McCornuck agreed to recommend to the Board of Education that it pay a total of $2.8 million to Glover Enterprises for the property in question and all related costs. Last night, May 20, the Board of Education received Mr. McCormick's recommendation and approved the following resolution: Be it, therefore, resolved that the Board approves the additional sum of $1,142, 000 to Glover Enterprises, LLLP to settle the condemnation lawsuit to be paid as soo~z as funds are appropriated to the Board of Education. The $1.142 million figure is the balance that is owed to Glover Enterprises. The Board agreed with Mr. McCormick that it was in the best interest of the Board to agree upon this purchase price. That same evening, the Board approved its requested CIP. In the CIP, we identified $1 million in 2006-07 and $500,000 in 2007-08 in a reserve account to cover unanticipated additional costs for the third high school, including paying additional funds for land acquisition. The property owner, of course, cannot wait until that time for payment. In fact, the negotiated settlement called for payment of the balance by July 1, 2004. We are requesting that the Board of County Commissioners take two actions that will allow us to move forward. First, it needs tq adopt the 2004-OS CIP as soon as, possible, or, at least, the projects pertaining to the third high school. Secondly, we will 5 shortly submit a request to appropriate funds for Phase 2 of High School No. 3. This appropriation will be for construction of the school. We need for the BOCC to allow us to spend from this appropriation funds to secure the site. The Pay as You Go funds referenced above will be used to reimburse the High School No. 3 line item in 2006-07 and 2007-OS. With the school scheduled to open in August 2007, this reimbursement schedule should not cause any problems. Our attorney, John McCormick, contacted Jeff Gledhill prior to presenting his recommendation to the Board of Education. lair. Gledhill did not see a problem witli the Board taking the action that it did on May 20, 2004. I'd appreciate it if you would review this request with your staff and/or the BOCC chair and let me know what should be our next steps. Thanks for you assistance. (~J MEMORANDUM TO: Neil Pedersen, Superintendent, CHCCS FROM: John Link, County Manager DATE: June 3, 2004 RE: Appropriation of Funds for Third High School Site In response to your June 2 memo on this subject, let me offer two scenarios for your consideration regarding the appropriation of additional funds for land acquisition for the third high school. The first scenario that I think would be acceptable to the County Commissioners would be the redirection to high school land acquisition of a portion of 2004-OS pay-as-you-go funds from some of the projects mentioned in the CHCCS proposed 2004-14 CIP. I understand the view expressed in your memo yesterday that such an approach would lead to significant constraints on capital improvements that could be made next year, especially since a substantial portion of 2004-OS capital funds are already committed to mobile classrooms. That said, the attached table outlines an approach that County staff could pursue with your staff to use 2004-OS pay-as-you-go funds for the additional cost of the Glover property. The second scenario that I think would be consistent with the provisions of the interlocal agreement regarding the third high school would involve the appropriation of accumulated school impact fees. The base project budget of $27.8 million included planned appropriations of $6.1 million in impact fees that had already been received through fiscal year 2002-03. Of that amount, $2,038,700 has already been appropriated through the High School #3 Capital Project Ordinance to address land acquisition and professional design fees. That leaves a balance of over $4 million in previously accumulated impact. fees that is available "in the bank" and ready to be appropriated. We view these impact fees as apay-as-you-go revenue source. An appropriation of $1,142,000 of these funds that are already on hand will also not adversely affect the County's operational cash flow. The use of accumulated impact fees now could be made up to the project budget later through your suggested designation of a portion of CHCCS's designated 2006-07 and 2007-08 pay-as-you-go funds. Under either of these scenarios, I am prepared to recommend to the Board of County Commissioners that they adopt at their June 23 meeting an updated capital project ordinance for High School #3 that would appropriate the additional funds you have cited as needed to complete the acquisition of the Glover property. Please let me know how your Board prefers to proceed. cc: Orange County Board of Commissioners Rod Visser, Assistant County Manager Donna Dean, Budget Director Ken Chavious, Finance Director Geof Gledhill, County Attorney .~,D m. Approval of the Interlocal Cooperation Agreement Establishing the Orange- Person-Chatham Local Management Entity (LME) The Board approved an Interlocal Cooperation Agreement (ICA) to form athree-county public entity to serve as the Local Management Entity (LME) for ensuring mental health, development disability, and substance abuse services (MH/DD/SA) in the Orange, Person, and Chatham counties catchment area, to go into effect on July 1, 2004 and authorized the Chair to sign. n. Approval of Orange County's Three-Year Solid Waste Plan Update This item was removed and placed at the end of the consent agenda for separate consideration. o. EMS Medical Director Contract Renewal The Board renewed an agreement between Orange County and the UNC Department of Emergency Medicine concerning medical direction of Orange County's Emergency Medical Services (EMS) program and authorized the Chair to sign. ~ Capital Project Ordinance -Chapel Hill-Carrboro City Schools Hiah School #3 The Board approved an amended capital project ordinance for Chapel Hill-Carrboro City Schools (CHCCS) High School #3 to appropriate additional funds in the amount of $1,142,000 for land acquisition. g Change in BOCC Regular Meeting Schedule The Board amended its regular meeting calendar by canceling the Quarterly Public Hearing, scheduled for Monday, August 23, 2004 at 7:30 p.m. at the F. Gordon Battle Courtroom in Hillsborough, North Carolina since there are not public hearing items for that meeting and to schedule a Joint Meeting between the BOCC and the Planning Board to be held at that same time on Monday, August 23, 2005 at 7:30 p.m. at the Government Services Center in Hillsborough, North Carolina. r. Fiscal Year 2003-2004 Forest Service Contract The Board approved the annual agreement between Orange County and the NC Department of Environment and Natural Resources (DENR) subject to final review by staff and the County Attorney, and authorized the Chair to sign the agreement. VOTE ON CONSENT AGENDA: UNANIMOUS gL Approval of Fiscal Year 2004-05 Budget Ordinance, Capital Proiect Ordinances, and Grant Proiect Ordinances The board considered adopting the County's budget ordinance, capital project ordinances, and grant project ordinances for FY 2004-05. Commissioner Gordon said that they have not seen this material and she asked for a brief overview so that she could have time to read it. John Link said that the specific recommendations were on page two, which is to adopt the Orange County Budget Ordinance and the countywide tax rate of 88.4 cents, and the Chapel Hill-Carrboro City School Tax of 20 cents. The resolution amends the Classification and Pay Plan to add the new class of Parks Conservation Technician II at a salary grade 14 and change the title of existing class of Parks Conservation Technician at salary grade 12 to Parks Conservation Technician I with no change in salary grade. The Board would also authorize a two percent cost of living increase for permanent employees effective October 11, 2004 and adopt a County fee schedule. Also, in the bright pink packet are the capital project ordinances for CHCCS and OCS and grant project ordinances for Orange County general government. These are projects that are a continuation of projects that have already started. There is also a resolution of intent to adopt the Orange County budget. This is the completed document with the actions taken on Monday evening. It just confirms the actions