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HomeMy WebLinkAbout2003 NS Manager - CHCCS Draft interlocal agreement 3rd High School Site & Proj Bud4 NORTH CAROLINA ORANGE COUNTY DRAFT INTERLOCAL AGREEMENT THIS INTERLOCAL AGREEMENT, made and entered into this day of 2003 and effective as of the day of 2003, by and between the CHAPEL HILL-CARRBORO CITY BOARD OF EDUCATION, a body politic of the State of North Carolina, hereinafter called the "BOARD OF EDUCATION," and ORANGE COUNTY, a body politic and corporate of the State of North Carolina, hereinafter called the "BOARD OF COMMISSIONERS,"~ to memorialize an agreement between the parties regarding ~. approval by the BOARD OF~COMMISSIONERS of the amount to be spent by the BOARD OF EDUCATION for the site of the-third high school in the Chapel Hill-Carrboro City School District, hereinafter called high school #3, and regarding amounts to be appropriated by the BOARD OF COMMISSIONERS to the capital outlay fund of the BOARD OF EDUCATION for high school #3; W I T N E S S E T H: WHEREAS, the BOARD OF EDUCATION exercises the statutory authority to administer the Chapel Hill-Carrboro City School System, and the BOARD OF COMMISSIONERS exercises the statutory duty to provide certain school funding to the BOARD OF EDUCATION; and 1 5 WHEREAS, both the BOARD OF EDUCATION and the BOARD OF COMMISSIONERS agree that investment in public education is a priority of both boards and essential to the educational, cultural and otherwise development of the community and to its quality of life; and WHEREAS, the impending implementation of the Schools Adequate Public Facilities program~in Orange County, hereinafter called "SAPFO," makes providing capacity in the Chapel Hill- Carrboro School District high school level a priority; and WHEREAS, consideration of high school level capacity in the initial implementation of SAPFO will be suspended until high 's.chool #3 is available for student~.enrollment; and WHEREAS, the two boards recognize that disputes regarding the amount to be spent on high school #3 and on amounts to be appropriated by the BOARD OF COMMISSIONERS to the capital outlay fund of the BOARD OF EDUCATION have the potential to delay the opening of the third high school and should be avoided; and WHEREAS, the BOARD OF COMMISSIONERS in cooperation with the BOARD OF EDUCATION and the Orange County-Board of Education has adopted School Construction Standards, hereinafter called "the Standards," for each public school level, elementary, middle and high; and WHEREAS, the BOARD OF EDUCATION made a presentation to the BOARD OF COMMISSIONERS in support of its decision to locate high 2 ./ 10 .~ school #3, with the capacity of 1,000 students on a site abutting Rock Haven, Ray and Smith Level Roads south of Chapel Hill and Carrboro and in Carrboro's planning jurisdiction; and WHEREAS, by resolution the BOARD OF EDUCATION requested the BOARD OF COMMISSIONERS approval of the purchase by the BOARD OF EDUCATION of certain identified properties for a total appraised value of $2,535,700 and further requested permission from the BOARD OF COMMISSIONERS for the BOARD OF EDUCATION to exercise the BOARD OF EDUCATION's statutory authority to acquire the identified parcels by the exercise of eminent domain; and WHEREAS, the BOARD OF EDUCATION does not. have a contract for the purchase of any of the identified properties necessary; and WHEREAS, the process of acquiring property by eminent domain does not permit a determination at the time it is exercised of the total cost of the properties condemned, rather the total cost of the properties condemned may not be known for years after the property is acquired, occupied and. in use by the condemning authority; and WHEREAS, site design consultants of the BOARD OF EDUCATION advised the BOARD OF EDUCATION that the construction of high school #3 on the identified parcels presents certain design issues including the likelihood that the considerable rock 3 located on one or more of the identified parcels adds uncertainty to the high school #3 development costs; and WHEREAS, the BOARD OF EDUCATION estimates the total cost to build high school #3 on the identified parcels to be approximately $33,870,000; and WHEREAS, although the concept plan presented by the BOARD OF EDUCATION is for high school #3~to generally meet the dimensional requirements of the Standards, the projected cost of high school #3 exceeds the Standards for a high school with a 1,000 student capacity by approximately $4,000,000; and WHEREAS, the amount of funding previously identified by the BOARD OF EDUCATION and by the BOARD OF COMMISSIONERS for high school #3 is approximately $27,800,000; and WHEREAS, after careful consideration of all of the uncertainties and circumstances surrounding high school #3, the only reasonable way for the BOARD OF COMMISSIONERS to give funding authorization necessary for high school #3 is to do so holistically; and WHEREAS, the BOARD OF COMMISSIONERS has held public hearings on the use of $12,800,000 for high school #3 which money was originally programmed for a tenth elementary school in the Chapel Hill-Carrboro City School District in the 2001 bond program and on the BOARD OF EDUCATION selected location of high school #3; and 4 WHEREAS, the BOARD OF COMMISSIONERS and the BOARD OF EDUCATION have approved a funding mechanism to fund high school #3 which reconciles the gap between the total estimated expected cost of high school #3 with the funding previously identified; and WHEREAS, the BOARD OF COMMISSIONERS and the BOARD OF EDUCATION desire to enter into this Interlocal Agreement to set forth the respective undertakings and responsibility of each party; and WHEREAS, the BOARD OF COMMISSIONERS and the BOARD OF EDUCATION have each approved this Interlocal Agreement and have ~~ caused such approval to be reflected in the respective minutes of each governing board. NOW THEREFORE, pursuant to North Carolina General Statute §§ 160A-461 and 115C-431, the BOARD OF EDUCATION and the BOARD OF COMMISSIONERS agree as follows: 1. THE PURPOSE: The parties enter into this Interlocal Agreement to establish a funding mechanism: (1) for the purchase by the BOARD OF EDUCATION by eminent domain or otherwise of properties identified. as making up the site for high school #3, which site is abutting Rock Haven, Ray and Smith Level Roads south of Carrboro and Chapel Hill and (2) for the appropriation from the BOARD OF COMMISSIONERS to the BOARD OF EDUCATION's school capital expense fund of the funds for the completion of 5 q high school #3. The recitals set forth above are incorporated by reference as if fully set forth herein. 2. The BOARD OF COMMISSIONERS agrees to appropriate the funds necessary for the purchase by condemnation or otherwise of the properties identified at the estimated costs identified as follows: • Appraised Parcels Acreage Values Glover property ~ 49.5 $1,658,700 Fisher property 10.6 551,000 Minton property ~ 3.6 ~ ~ 326.,000 Total ~ 63.72 $2,535,700 3. The estimated Standards elements and budget for high school #3 follow: Budget Category Budget Amount Site (approx. 64 acres total) acquisition amount $ 2,536,000 Construction (182,710 sf at $110 per sf) 20,098,000 Site development (100 of construction costs) 4,575,000 Fees (10% of construction and site development cost) 2,467,000 Movable equipment ( 5 % of construction cost) 1,005,000 Technology ($8.25 sf for infrastructure and equipment) 1,507,000 Contingency (3.5% of construc- tion and site development costs) 864,000 6 I~ Non-personnel start up costs 815,000 Budget costs $33,867,000 4. The BOARD OF COMMISSIONERS agrees to appropriate a total of $33,870,000 for the total of all of the. elements contained in the Standards for high school #3 which will have a capacity of 1,000 students with. funding as follows: Source Bonds (from elementary #10) Impact fees, balance Impact fees, budgeted Alternative. financing by County Alternative financing by County ' ~' paid for with "pay-as-you-go" CIP revenue from future years appropriations for "pay-as-you-go" CIP revenue to the BOARD •OF EDUCATION from the BOARD OF COMMISSIONERS Total Amount $12,800,0.00 3,240,000 6,400,000 5,100,000 6,330,000 $33,870,000 5. Any amount by which the total cost of high school #3 exceeds $33,870,000 will be paid for by unencumbered BOARD OF EDUCATION pay-as-you-go CIP revenue. 6. In consideration and subject to the BOARD OF COMMISSIONERS complying with the terms hereof, the BOARD OF EDUCATION irrevocably waives and relinquishes its right to initiate and pursue any statutory or judicial process to appeal, mediate, arbitrate or otherwise resolve any dispute between the boards regarding the amount approved by the BOARD OF 7 COMMISSIONERS for the acquisition of the site for high school #3, the amount appropriated now and in the future by the BOARD OF COMMISSIONERS to the BOARD OF EDUCATION's school capital expense fund for high school #3 and as this appropriation may impact the total appropriations now and in the .future from the BOARD OF COMMISSIONERS to the BOARD OF EDUCATION'S school capital expense fund 7. The term of this Interlocal Agreement shall be, and its provisions shall govern appropriations from the BOARD OF COMMISSIONERS to the BOARD OF EDUCATION for high school #3 land acquisition and the BOARD OF EDUCATION's capital expense fund for the :parties fiscal years from~July 1, 2003 through the year in which the BOARD OF EDUCATION'S pay-as-you-go CIP revenue pays off: (1) the alternative.financing identified in paragraph number 4 of this agreement and (2) any amount by which the total cost of high school #3 exceeds $33,870,000 as identified in paragraph number 5 of this agreement. 8. This agreement does not impact the CIP funding now and in the future related to other mutually agreed-upon school needs of the BOARD OF EDUCATION except to the extent that those school needs require pay-as-you-go CIP funding committed to high school #3 as provided for in this agreement. 8 ~~a 9. The parties may only amend this agreement by a writing approved by both boards and signed by their respective duly authorized representatives. IN WITNESS WHEREOF the BOARD OF EDUCATION and the BOARD OF COMMISSIONERS have caused their duly authorized officials to execute this agreement the day and year first above written, pursuant to authority duly given and as their respective acts, intending to be bound thereby. CHAPEL HILL-CARRBORO CITY BOARD OF EDUCATION ATTEST: By: Neil G. Pedersen, Superintendent ATTEST: By: Donna S. Baker, Clerk By: Valerie Foushee, Chair Board of Education ORANGE COUNTY By: Margaret Brown, Chair Board of Commissioners lsg:orangecounty\interlocal agreement funding 3rd high school.doc 9