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HomeMy WebLinkAboutAgenda - 03-21-2017 - 6-b - Revisions to Schools FY 2016-17 CIP and Approval of Property Acquisition 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: March 21, 2017 Action Agenda Item No. 6-b SUBJECT: Revisions to Schools FY 2016-17 CIP and Approval of Property Acquisition DEPARTMENT: Finance and Administrative Services ATTACHMENT(S): INFORMATION CONTACT: Attachment 1: List of School Bond Dr. Todd Wirt, (919) 732-8126 Projects Dr. Todd LoFrese, (919) 967-8211 Attachment 2: Orange County Board of Bonnie Hammersley, 919-245-2300 County Commissioners Gary Donaldson, 919-245-2453 Capital Funding Policy Attachment 3: Memo from Chapel Hill- Carrboro City Schools Attachment 4: Information from Orange County Schools PURPOSE: To revise the FY 2016-17 School Capital Investment Program based on changes to both school systems project listing and approve the acquisition of the Orange Charter School Facility by Orange County Schools pursuant to the Capital Funding Policy (see background section). BACKGROUND: The County Capital Investment Plan (CIP) is adopted annually in June of each year. After the adoption of the FY 2016-17 Capital Budget in June 2016, both the Chapel Hill-Carrboro City Schools (CHCCS) and the Orange County Schools (OCS) have indicated changes to their project listings. The Capital Project Ordinances — Form and Purpose section of the Capital Funding Policy states, "All funds allocated to capital projects are to be accounted for in a Capital Project Fund as authorized by a Board of County Commissioner approved Capital Project Ordinance. The Capital Project Ordinance will include a detailed break down of each major cost category related to the project. In accordance with the Board of County Commissioners November 2000 adopted Policy on Planning and Funding School Capital Projects, whenever School capital project bids are either higher of lower than originally projected, or any other factor affecting the project budget occurs, the affected school system is expected to work with County Management and Budget staff to present revised capital project ordinances for adoption by the Board of Commissioners. The same expectations shall be applicable for changes to County Capital project budgets." These changes are indicated below: 2 The Orange County Schools project list is being updated to include the acquisition of the Orange Charter School facility for $3.1 million with an offsetting reduction in the Cedar Ridge High School project. The balance of the Cedar Ridge High School project is anticipated to be funded using existing impact fee revenue due to its impact on school capacity. The Orange Charter School acquisition cost will be reimbursed through the scheduled Fall General Obligation Bond sale. Orange Charter School has expanded its K-8 charter to include high school grades and is constructing a consolidated campus at a new location, which has prompted the property acquisition. The Chapel Hill-Carrboro City Schools project list increases the amount of funds allocated to the Lincoln Center Campus Redevelopment and reduces the amount allocated to Chapel Hill High School. The 2013 Facilities Assessment estimated the Lincoln Center project at $21 million. The District recently received an updated cost estimate of approximately $24.6 million. The District reports that this increase is primarily driven by construction cost increases of approximately 5% annually. The Chapel Hill High School project is now budgeted at approximately $47 million to offset the increase in the Lincoln Center project and to account for the allocation of bond funds based on the average daily membership that was authorized in the FY2016-17 Budget. The approval of these CIP changes is independent from obtaining appropriate land use approvals from the respective municipal land use and zoning authorities. FINANCIAL IMPACT: There is no additional financial impact from these changes to the FY 2016-17 CIP. SOCIAL JUSTICE IMPACT: There is no Orange County Social Justice Goal impact associated with this item. RECOMMENDATION(S): The Manager recommends that the Board approve the amendments to the FY 2016-17 Capital Investment Plan and the attached list of projects including the acquisition of the Orange Charter School Facility. 3 $120 Million School Bond Projects Item Project Amount School Bonds Chapel Hill Carrboro City Schools: Lincoln Center Campus Redevelopment 25,000,000 Chapel Hill High School Renovation 47,108,000 Chapel Hill Carrboro City Schools Total 72,108,000 Orange County Schools: Roof Replacements: AL Stanback Middle 1,527,950 Central Elementary 608,940 Cameron Park Elementary 577,347 Efland-Cheeks Global Elementary 350,821 Grady Brown Elementary 907,771 Hillsborough Elementary 175,000 Total 4,147,829 Mechanical Systems: AL Stanback Middle 4,000,000 Central Elementary 1,638,200 Cameron Park Elementary 1,287,000 Elfand-Cheeks Global Elementary 2,034,000 Grady Brown Elementary 704,000 Hillsborough Elementary 458,233 New Hope Elementary 2,002,738 Orange High School 8,900,000 Total 21,024,171 Classroom Wing Addition: Cedar Ridge High School 11,400,000 Total 11,400,000 Replace Windows: Grady Brown Elementary 220,000 Total 220,000 Hazardous Materials Remediation: Grady Brown Elementary 500,000 Total 500,000 Replace Transportation Facility: Joint Project with CHCCS 5,000,000 Total 5,000,000 Implementation of School Safety Initiatives: District Wide 2,500,000 Total 2,500,000 Acquisition: Existing Charter School Facility 3,100,000 Total 3,100,000 Orange County Schools Total 47,892,000 School Bond Projects Total 120,000,000 Attachment 2 4 April 5, 2011 Orange County Board of Commissioners Capital Funding Policy Preamble This capital funding policy is the product of extensive analysis and deliberation. The intent of this policy is to reflect greater priority than there has been historically on providing funding for County projects, with particular emphasis directed at enhanced upkeep of existing County facilities. The policy reflects the implementation of the Board of Commissioners' resolution of November 16, 2004 that the Board "does hereby adopt in principle a policy of allocating a target of 60 percent of capital expenditures for school projects and 40 percent of capital expenditures for county projects over the decade beginning in calendar year 2005". This policy continues the County's principle and historical practice of funding all School and County related debt service obligations before allocating any other School or County capital funds for other purposes. Long Range Capital Investment Plan During January of each fiscal year, the County Manager shall present, to the Board, five- year County and School capital needs and funding plans in the form of a Capital Investment Plan. Each year, the Board of Commissioners shall conduct a public hearing on the Manager's Recommended CIP during March and subsequently adopt a five-year Capital Investment Plan (CIP) as part of the annual operating budget in June. County and School recurring capital needs will be identified and reviewed during each annual operating budget cycle, and recurring capital appropriations will be approved by the Board of Commissioners as an element of each annual Orange County Budget Ordinance. The five-year plan for long-range capital funding shall include anticipated County and School capital expenditures costing $100,000 or more. Sources of Funds The County will allocate the following sources of funds for County and School debt service and long-range and recurring capital: • All proceeds from the Article 40 and Article 42 half-cent sales taxes. (The North Carolina General Statutes require that 30 percent of the Article 40 (NCGS§105-487(a)) and 60 percent of the Article 42 (NCGS§105-502(a)) sales tax revenue be earmarked for public school capital outlay as defined in NCGS§105-426(1) or to retire any indebtedness incurred by the county for these purposes) • School Construction Impact Fees for each school system. • Property tax revenue as needed and approved by the Board. • The County will budget NC Education Lottery proceeds as the revenues are distributed by the State each quarter, once the revenues are identified for an individual school capital project and requested by each district. 5 April 5, 2011 Debt Service All County and School related debt service obligations would be funded prior to allocation of programmed funding for any other capital purposes. Orange County Schools' impact fees will be earmarked to pay for debt service on projects that involved the construction of new school space in the Orange County Schools system. Chapel Hill-Carrboro City Schools' impact fees will be earmarked to pay for debt service on projects that involved the construction of new school space in the Chapel Hill-Carrboro City Schools system. These expenditures will be tracked and verified by each district annually. NC Education Lottery Proceeds Each school district will have the option to dedicate its share of the annual NC Education Lottery monies to address school facility renovation needs or as additional revenue to the districts pay-as-you-go funding to address school facility renovation needs. Annually either district can request that the County dedicate Lottery proceeds to repay debt service and the county will substitute pay-as-you-go-funding to expedite approved capital projects in the schools capital improvement plan. Allocation Capital funding for each five-year capital planning period will be allocated between the two school districts based on the student membership planning allotments, provided by the NC Department of Public Instruction by March 1 of each year. Capital Project Ordinances — Form and Purpose All funds allocated to capital projects are to be accounted for in a Capital Project Fund as authorized by a Board of County Commissioner approved Capital Project Ordinance. The Capital Project Ordinance will include a detailed break down of each major cost category related to the project. In accordance with the Board of County Commissioners November 2000 adopted "Policy on Planning and Funding School Capital Projects", whenever School capital project bids are either higher or lower than originally projected, or any other factor affecting the project budget occurs, the affected school system is expected to work with County Management and Budget staff to present revised capital project ordinances for adoption by the Board of Commissioners. The same expectations shall be applicable for changes to County Capital project budgets. Community Use of Schools It is the intent of the Board of County Commissioners to evaluate each new proposed school in both School Districts for joint community use opportunities, including, but not limited to, park and recreation use. Schools Adequate Public Facilities Ordinance Orange County's Schools Adequate Public Facilities Ordinance (SAPFO) and Memoranda of Understanding (MOUs) between the County and its municipal and school partners establish the machinery to assure that, to the extent possible, new development will take 6 April 5, 2011 place only when there are adequate public school facilities available, or planned, which will accommodate such new development. The Board of County Commissioners is committed to the principle that new school space documented as needed through the annual SAPFO technical review process will be reflected in the next adopted CIP, and will be funded so as to be constructed to be available before the relevant level of service threshold is exceeded. Rescission This policy supersedes any policy in place prior to this date. April 5, 2011 Attachment 3 7 A EL HILL- • • 1111 A ORO 01 ry 001 CITY SCHOOLS Date: March 13, 2017 To: Paul Laughton, Deputy Director, Orange County Finance and Administrative Services From: Todd LoFrese,Assistant Superintendent Re: Chapel Hill-Carrboro City Schools' Bond Project Budgets The district received the request for more information related to the Chapel Hill-Carrboro City Schools' bond project budgets. The district has made adjustments to our project budgets due to bond distribution changes and market forces. The district conducted our facility study and developed recommendations over the course of three years (2011-2013). Since that time,the anticipated distribution of bond funds has changed as outlined below: 2011 to 2013 Initial plans - $125 million at 61%ADM = $76.25 million to CHCCS 2015 Bond Amount Finalized - $120 million at 61%ADM = $73.2 million to CHCCS 2016 Final Distribution - $120 million at 60%ADM = $72 million to CHCCS In 2014 our plan was to distribute $76M between the Lincoln Center Campus ($2lmillion) and Chapel Hill High School ($55 million). In 2015,when anticipated bond proceeds dropped to $73.2 million,we researched construction costs and found they had increased significantly. In fact, since our initial project estimates were released in late 2013, construction costs have risen on average 5% annually (a 15% increase over 2013-2016). The actual bond distribution allocates $72 million for Chapel Hill-Carrboro City Schools. Current plans for our anticipated share of bond proceeds are to allocate $25 million to the Lincoln Center Campus and $47 million to Chapel Hill High School. The Lincoln Center Campus portion is based on construction estimates calculated in Nov 2016. To summarize, over the course of past 4 plus years,the anticipated bond proceeds decreased by over $4 million and construction estimates for the Lincoln Center Campus increased by$4 million. We have adjusted our project budgets accordingly. I will be in attendance at the March 21 meeting if there are additional questions. Attachment 4 8 Regular Board Meeting 01/23/2017 06:30 PM Printe• : 3/:14/20:17 5:48 PM EST Central Office Boardroom ITEM : XIII.Property Acquisition and Potential Uses Date : 1/23/2017 Action Item (Y/N) Y Subject Property Acquisition and Potential Uses Info. Contact Dr. Todd Wirt, Superintendent Pam Jones, Interim Deputy Superintendent Goals Goal I-Orange County Schools will be the first choice for families . . .through the provision of engaging learning opportunities for all students to prepare them for citizenship, higher education, and careers. Goal V-Orange County Schools will be the first choice for families . . .through the accountable, equitable and transparent management of human and financial resources. Purpose To approve the acquisition of property located at 920 Corporate Drive, Hillsborough, NC; and to discuss potential uses of the facilities. Background The Board of Education was recently apprized of an opportunity to acquire buildings and property currently used as the site of Orange Charter School at 920 Corporate Drive in Hillsborough, NC. Orange Charter School has expanded its K-8 charter to include high school grades and is constructing a consolidated campus, which prompts them to offer the property for sale. The Property • Building 1 • Two-story structure O Built around 2006 • Approximately 14,644 square feet on two levels, both of which may be accessed at ground level • A third level of unfinished attic space adds 1,355 square feet u Includes classrooms (currently configured for 10), administrative offices and conference room space, multi-purpose room (currently used as a cafeteria among other uses) • Building 2 9 o Two-story structure with elevator O Built around 2011 O Approximately 20,089 square feet O Contains classrooms (currently configured for 6) and a gymatorium O Building is sprinkled for fire suppression • The site o Approximately 5.53 acres O Fenced playground area and soccer field O 38 paved parking spaces O Over 364 feet of frontage on Corporate Drive, the entrance to the property; and 684 feet of frontage on Highway 70A (no access currently) Potential Uses • Parent services • Blended learning opportunities Offer Highlights • Purchase price: $3.1 million, with $25,000 earnest money to be deposited on behalf of the seller within five days of the execution of the offer agreement; • Offer is submitted contingent upon approval of the Board of Orange County Commissioners; • Offer is submitted contingent upon acceptable results of facility inspections, environmental assessment and other assessments as deemed appropriate by Orange County Schools to ensure the facilities meet the needs for the District's intended use; • Closing is contemplated as quickly as practicable, but no later than April 30, 2017; • Occupancy will be granted to Orange County Schools no later than June 30, 2018; • During the period between closing and occupancy, Orange Charter School will pay Orange County Schools $15,000 per month as rent for the facilities. A lease will be presented to the Board of Education for approval prior to closing the property; • Orange Charter School will continue to provide both interior and exterior maintenance to the buildings and grounds (including snow removal), with Orange County Schools responsible for roof, building structure and HVAC replacements/repairs during that period; • Orange County Schools will provide appropriate property and liability insurance for the building; Orange Charter School will likewise provide appropriate property insurance for their on-site assets and liability insurance to cover their operations. Next Steps By statute, the Board of County Commissioners must also approve the purchase price of the facility. Assuming Board of Education approval, the item will be forwarded to the County Manager for inclusion on the January 24, 2017 Board of County Commissioner agenda. Financial Impact Following collaboration with the County Manager and staff, the $3.1 million acquisition cost of this property will be funded from the November 2016 bond proceeds allocated to Orange County Schools. The commensurate amount of funding required for the Cedar Ridge High School classroom addition project will be paid from accumulated school construction impact fees on account for use by Orange County Schools. This 10 expense is allowable per the criteria established for use of the school construction impact fees; and makes the acquisition of the property possible without affecting either the County's debt limit or the voter-approved bond projects. Recommendation The Superintendent recommends the Board approve the acquisition of property at 920 Corporate Drive, Hillsborough NC as presented herein; and provide feedback regarding the potential uses of the facilities. Supporting Documents Growing & Innovating - Orange Charter Potential Use t- CS•, 84'1_• _ _��� Growing & Potential Uses for Orange Charter Facility t- CS•, 84'1_• _ _ � All options being presented tonight are in the early stages of development and will require further Board, staff and community input. - ouHr�' 13 Parent Convenience Building 1 "One Stop Shop" for Parents • Community School Relations • Child Nutrition Services ,currently @OHS) Student Assignment ;currently @maintenance) • Student Information currently @ Annex) - =J • Student Support ,rrently @Annex) CO • Testing & Accountability (currently @ OHS) • Curriculum & Instruction (currently @Annex) 0 UNTy�4 14 Blended Learning Building 2 What is Blended Learning? • Combines the best of both online and face-to-face education _ • Students progress through a full course load with flexible access to teachers, content, peers and learning • Personalized Learning • Personalized Content • Flexible pace, time, path and place • Competency-based learning • Collaborative assignments • Student ownership • Possibilities of increased connections to Community College courses and work-based experiences ouHr�' 15 Blended Learning 0-0 Building 2 Potential Characteristics of the Program • Serve 50-75 students during the day through , - flexible hours & seat time ' -'� • Evening academy for students to gain additional credits, recover credits or those that need evening A ` °• '' hours due to other circumstances - - • 7-10 total employees serving Stn — 12tH grade students • Teachers would develop online coursework, possibly use vendor provided online coursework, and facilitate face-to-face experiences. p Pictures from: Crossroads Flex—Wake County iPrep Acadey—Miami-Dade ouHr�' 16 Blended Learning 4;Aiit Building 2 Figure 10. Flex model, San Francisco Flex Academy Possible learning spaces in the design : ---------------- --------------------------- • j Study and collaborative space 40040 • Common area with flexible learning spaces ©� Q�Q� ! 40 40 40 • Science Lab Breakout Q�QQIQo go go go Q1 000 room go QI Q1 go Q1 go -go-go 5:1 • Project/Collaboration Rooms 9191 9191 9191 91-Q1 Breakout -------------- • Fitness Area & Cafe (proposed space has o fullsize gym) 0000• ; • • ; ••` ; • • ; • • ; 12:1 © ' • • ••: ' • • •j •------------- •---- ------ --- --_---_- • ---- - -------------- Breakout rooms for small group instruction and 00000 • "��` •• ••1 quiet study areas, Breakout --- -------- ------------ room i •• ' ;•• : 12:1 : • • E•• 67FI __o.I..--. Collaboration Science lab TSocial area rooms AWstudents )1 om leanig • owne wm ig ©reacher ® Parawalessiond Image From: San Francisco Flex Academy _ -OUNry_0 17 t=, �gl Existing Facility Implications =841 -_ Annex Partnership Academy • Move Information Technology to • Narrow focus to be an alternative the Annex tr,urrently @OHS) for both long-term and short- • Includes six staff members term suspended students • Ideal location for data center • Opportunity to integrate more • Areas for storage, staging and repair therapeutic services • Frees up space at OHS • Include both middle and high school students in the program _ -OUNry_0 18 t=, Existing Facility Implications =841 -_ Orange High School • Free up additional space at Orange High School that could be used for: • Classroom & Hands-on lab space for Public Safety & Fire Fighter Tech courses • Office space and small group meeting areas for ESL and other support staff • Also eliminate outside traffic accessing the Orange High School currently for IT, Child Nutrition, and Testing & Accountability t- CS•, 84'1_• _ _��� Questions ?