HomeMy WebLinkAboutAgenda - 05-20-2008-6aORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: May 20, 2008
Action Agenda
Item No. ~p - a
SUBJECT: Approval of Funding Plan for Chapel Hill Carrboro City Schools Elementary #11
DEPARTMENT: Budget PUBLIC HEARING: (Y/N) No
ATTACHMENT(S):
Attachment 1. April 23, 2008
Memorandum Re:
Elementary #11 Project
Funds
Attachment 2. April 23, 2008 Elementary
#11 Project Schedule
Attachment 3. Status of NC Education
Lottery Funds for Chapel
Hill Carrboro City and
Orange County Schools
INFORMATION CONTACT:
Donna Coffey, (919) 245-2151
PURPOSE: To consider approval of a funding plan for construction of Elementary #11 for the
Chapel Hill Carrboro City Schools (CHCCS).
BACKGROUND: The Chapel Hill Carrboro City Schools 2008-18 Capital Investment Plan (CIP)
identified the need for the District's eleventh elementary school. The project, estimated to cost
$33,177,923, was one of several unfunded projects identified in the County's 2008-18 capital
plan.
School District's Request for Planning Funds
On May 1, 2008, the Board of County Commissioners discussed an April 23, 2008 funding
request from CHCCS Superintendent .Neil Pedersen for planning monies for Elementary #11
(Attachment 1). The monies requested, $640,130, would cover the costs of schematic design
development and required site studies.
According to the project timetable that accompanied Dr. Pedersen's April 23 memorandum
(Attachment 2), in order to open the new school in August 2011, the District needs the planning
monies before the end of the current fiscal year in order to be in a position to select a project
architect in June and keep the project on track. At the May 1 meeting, County staff identified
four possible funding sources for this initial phase of the project:
2
Use of NC Education lottery proceeds
-~. Appropriation of school district fund balance
~- Redirect monies from currently budgeted projects to the new Elementary School
~- Debt financing
Commissioners directed County staff to work with CHCCS staff to develop, for the May 20, 2008
regular meeting, a potential funding plan to include initial planning monies as well as all other
project components that lead to completion of Elementary #11. During tonight's meeting, the
CHCCS Board of Education members and staff plan to join Commissioners to discuss the
project and proposed funding plan.
As stated earlier, the District estimates the total cost of Elementary #11 at $33,177,923 which
includes site development and/or acquisition, fees, furniture, technology, and one-time start-up
non-personnel costs. Projected construction costs are budgeted at $266 per square feet for the
90,230 square foot school. Final cost projections will be determined after the District completes
the initial planning process and receives project bids.
CHCCS Elementary #11 Siting
At this point in planning for the new school, the Chapel Hill Carrboro City Schools Board of
Education has not chosen a site for the new school; therefore, it is important to note the
requested monies will not cover the cost of site acquisition. The Board has, however,
expressed particular interest in two sites - Northside Human Services Center site and Greene
Tract. While neither of these sites would require funding to purchase land, both sites have
individual needs. For example, water and sewer infrastructure is not currently available at the
Greene Tract. According to the April 23, 2008 timetable, the Board of Education plans to
finalize the site selection component of the project before the end of the current fiscal year.
Staff Proposed Funding Plan for CHCCS Elementary #11
Staff proposes the following funding plan for CHCCS Elementary #11:
Staff Proposed Funding Plan for CHCCS
Elementary #11
May 20, 2008
NC Education Lotter Funds $974,000
Alternative Financing Proposed
for Winter/Spring 2009 $32,203,923
Total Proposed Funding Plan
for CHCCS Elementary #11 $33,177,923
Staff projects NC Education Lottery Funds totaling $974,573 will be available to Chapel Hill
Carrboro City Schools by the end of fiscal year 2008-09 (Attachment 3). These monies are in
addition to lottery funds allocated to other District projects.
Should the Board of County Commissioners approve the proposed funding plan, staff will submit
a funding request to NC Department of Public Instruction for Lottery funds for this and other
current year funded projects prior to June 30, 2008. This is a precautionary measure to ensure,
to the extent possible, should the State pursue sequestering Lottery monies this year - similar to
past years when the State has withheld County's allocations of Public School Building Fund
monies.
FINANCIAL IMPACT: Proposed alternative financing for Elementary #11 is in addition to the
current debt issuance plans currently approved by the Board. As proposed, the County would
incur $32,203,923 in debt in winter/spring 2009. Annual debt service payments, based on 5.5 to
6 percent annual interest for 20 years, would range between $3.3 to $3.5 million. The estimated
first year payment, projected for fiscal year 2009-10, would equate to just over 1 cent on the
County's ad valorem tax rate.
RECOMMENDATION(S): The Manager recommends that the Board of County Commissioners
approve staffs proposed funding plan for construction of Elementary #11 for the Chapel Hill
Carrboro City Schools (CHCCS).
0
MEMORANDUM TO: Laura Blackmon
FROM: Neil Pedersen
SUBJECT: Elementary #11 Project Funds
DATE: April 23, 2008
Based on our conversations with the Board of County Commissioners at our
April 22, 2008 joint meeting, we would like to formalize our request for start-up
funding for elementary #11.
The attached project schedule for Elementary School #11 reflects an opening
date in August 2011. This schedule was the basis for the project's financial cash
flows submitted in the 2008-18 Capital Investment Plan. Elementary School #11
was included in the unfunded section of the 2008-18 CIP.
The project schedule requires architects and engineers to begin the building
planning process in June. Included in the project budget is $640,130 in FY 2008-
09 for planning fees. These fees are intended for schematic design development
and required site studies. It is important to note that site acquisition costs are
not included in the $640,130. If a school site must be purchased, additional
funds will be required.
In order to maintain the schedule fora 2011 school opening, the $640,130
planning fees are requested at this time.
Cc: Pam Hemminger
Lisa Stuckey
Steve Scroggs
Lincoln Cenier, 750 S. Merritt Mill Road -Chapel Hill, NC 27516-2878 X919) 967-8211 www.chccs.kl2naus
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