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HomeMy WebLinkAboutAgenda - 05-03-2005-9eORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: May 3, 2005 Action Agenda Item No. ~- 2- St1BJECT: Chapel Hill-Carrboro Board of Education Request for Additional Funding for Hiqh School #3 Construction DEPARTMENT: Manager/Budget PUBLIC NEARING: (Y/N) No ATTACHMENT(S): 04/22/05 CHCCS Superintendent Memo 04/19/05 CHCCS Staff Memo Manager's Recommended Reallocation of $12.8 Million from Elementary#10 Debt Interlocal Agreement w/Addenda HS#3 Questions/Observations INFORMATION CONTACT: John Link or Rod Visser, 245-2300 Donna Dean, 245-2151 TELEPHONE NUMBERS: Hillsborough 732-8181 Chapel Hill 968-4501 Durham 688-7331 Mebane 336-227-2031 PURPOSE: To consider a request from the Chapel Hill-Carrboro Board of Education to provide additional funding to increase the project budget for the construction of the third CHCCS high school by $7,534,200. BACKGROUND: At the County Commissioners' September 21, 2004 meeting, the Board reviewed and discussed the conceptual design for the third high school in the Chapel Hill- Carrboro school system. There was discussion about significant increases that are being experienced in the construction industry for the costs of raw materials such as steel and concrete. At the joint work session between the BOCC and the two school bcards on September 27, 2004, CHCCS staff outlined the then-anticipated financial impacts of materials cost increases on the project budget, Documents from the project architect indicated a likely overall project cost of $35.4 million and an anticipated project budget shortfall of about $4.5 million, As noted in the attached materials from CHCCS, constn~ction bids for the third high school were recently opened and were substantially higher than the estimates discussed in September 2004.. At their meeting an April 21, 2005, the Chapel Hill-Carrboro Board of Education approved a resolution requesting that the BOCC approve a capital project ordinance that would increase project funding for High School #3 by an amount of $7,534,200, for a total of $39,176,200, The BOCC's currently approved High School #3 project budget is $30,842,000. This includes a base amount of $27,8 million, $1.9 million in additional funding related to CHCCS' incorporation of project elements addressing smart growth initiatives, and an additional earmarking of $1.142 million in CHCCS school impact fees that were used to pay for additional costs of land acquisition for the project. Copies of the interlocal agreement and addenda between the BOCC z and CHCCS that govern the third high school capital project are included for reference with this agenda item. The attached April 19, 2005 CHCCS staff memo alludes to the passibility that the requested funding could come from a redirection of a portion of the $12.8 million in alternative financing that the County had planned (but has since postponed) to issue far the design and construction of Elementary School #10. The CHCCS Board resolution does not specify a recommended ar requested source for the additional funding.. As Commissioners consider the CHCCS request, they may wish to refer to the table prepared for the BOCC's April 14, 2005 work session that outlined the Manager's recommendation for a potential reallocation of that $12.8 million in programmed debt. The Manager recommends that the Board consider the accompanying list of questions and observations that it may wish to use as a basis for soliciting additional information from CHCCS regarding the Board of Education's intentions far proceeding with the third high school project. That information is important so that the BOCC can make a fully informed decision about how to respond to the request for additional capital funding.. FINANCIAL IMPACT: To be determined based on the BOCC's ultimate decision regarding haw to respond to the CHCCS request for additional project funding. RECOMMENDATION(S): The Manager recommends that the Board of County Commissioners: 1) review the accompanying materials; 2) determine what additional information it needs from the Chapel Hill-Garrboro Board of Education before rendering a response to the request for additional funding and 3) provide appropriate direction to the Manager and staff. 3 Chapel Hill -Carrboro City Schools Lincoln Center, Merritt Mill Road Chapel Hill, NC 27516 Telephone: (919) 967-8211 Fax: (919) 933-4560 Neil Pedersen, Superintendent Nettie Collins-Hart, Assistant Superintendent for Instructional Services Ray Reltz, Ohief Technology Officer Steve Scroggs, Assistant Superintendent for Support Services To: John Linlc, Orange County Manager From: Neil Pedersen, Superintendent Re: Request for Additional Funding for the Completion of High School #3 Date: April 22, 2005 During the regularly scheduled meeting of the Board of Education on April 21, 2005, the Board unanimously passed a resolution requesting that the Board of County Commissioners provide additional funding for the completion of high school #3. The Board agenda item is included for your review. A summary of that agenda item is provided.. Biddin Participation in the bidding was low with only two general contractors, Barnhill Construction and J.M.T. Construction, submitting bids. Barnhill Constrttetion was the low bidder.. Sub-contractor participation was also minimal with only one plumbing, three electrical, uid three HVAC sub-contractors taking part. Due to the general contractors also submitting single prime bids, participation requirements were met. This low level of participation probably contributed to the project overages as did price increases in steel, gasoline, and other building supplies. Everyone aclaiowledges that this is a very difficult time to be bidding due to a high volume of projects and inflationary pressures. Fundin The funding provisions for HS #.3 ar°e described in detail in the hiterlocal Agreement between the Orange County Commissioners and the Board of Education for the Chapel Hill -Carrboro City Schools. The hrterlocal Agreement provides finding for HS #.3 in abase amount of $27,800,000 and additional funding of $2,200,000 if the Board of Education satisfies the "smart growth principles" as defined in Addendum "B". An additional $1,142,000 was provided for the project from future CHCCS impact fees, which were scheduled for future CIP projects, to complete the acquisition of the Glover property. hi the reeanunendation to the Board, we go into further detail to explain why we believe that appropriating additional dollars for this project is not inconsistent with the Interlocal Agreement because no additional debt will be incurred, Funds previously y earmarked for Elementary Na 10 and programmed into the County's debt schedule can be used to cover the overage. Reduction Efforts The District has already taken major steps at reducing the project's cost and the overage that must be requested. Those reductions inchtde: • Use of future C1P funds to pay for' the site $1,142,000 • Use of State of NC sales tax refimd $ 450,000 • Use of DOT bus loop funds $ 50,000 • Reduction in technology budget $ .3.3.3,56:3 • Reduction in non-persomiel startup budget $ 246,395 • Reduction in ftuniture and equipment budget $ 52,500 • Redaction in contingency fund budget $ 6,476 Total $2,280,925 The District takes its role as fiscal steward seriously. This reduction represents a 6% reduction in total project costs. Summary A summary ofthe bid costs and additional costs are provided below We are requesting an additional $7,534,200 to complete this project. Total Building Multi-Prime Contract General Contractor $23,650,000 HVAC $2,872,352 Plumbing _ $1,719,410 Electrical $1,840,241 Sub Total $30,082,003 Fees $2,162,500 Non-Personnel Start Up $500,000 Technology $1,000,000 Movable Furniture $800,000 Contingency $750,000 Land $3,531,697 Total Contract $38,826,200 Funding Interlocal Agreement $27,800,000 Addendum "B" $1,900,000 nsportation Addendum"B" T ra $300,000 _ _ Additional Fund ing for Land $1,142,000 Sales Tax/Bus Refund $500,000 Total $31,642,000 Contract 38 826,200 __ _$-_, Off Site Improvements __ $350,000 Sub Total ~~~-~~~- $39,176,200 n unding Required Additio aI F ~~~~~-~ $7,534,200 Percent Overage from 31,642k 24% Percent Overage from 30,000k 25% 5 An amount of $350,000 for off-site improvements is included in the table above because we expect to be required to make improvements to Smith Level Road. The Town of Carrboro and the Department of Transportation have not agreed on the configuration of Smith Level Road, thus improvements to the intersection could not be designed. Additional funding is requested but, if the two governmental bodies reach agreement, the funding could be returned if uimeeded Based on the summaries provided, The Board of Education adopted the following resolution on April 21, 2005. Resolution: Be it, therefore, resolved that the Board of Education directs the school administration to prepare and deliver a request to the Orange County Board of County Commissioners for a Capital Project Ordinance to increase the funding for High School #.3 by an amount of $ $7,534,200 for a total of $.39,176,200 Please accept this correspondence as a formal request for additional funding in the amount indicated from the County Commissioners. Thank you for your continued support of the Chapel Hill-Carrboro City Schools and we look forward to working with your office and the Cormty Conunissioners on malting this a successfiil project.. 6 Chapel Hill - Carrboro City Schools Lincoln Center, Merritt Mill Road Chapel Hill, NC 27516 Telephone: (919) 967-8211 Fax; (919) 933-4560 Neit Pedersen, Superintendent Nettie Collins-Hart, Assistant Superintendent for Instructional Services Ray Reitr, Chief Technology Officer Steve Scroggs, Assistant Superintendent for Support Services To: Neil Pedersen Superintendent From: Steve Scroggs Assistant Superintendent for Support Services Re: HS #3 Construction Bids Date: April 19, 2005 Included are the results of the bidding for the construction contract for High School #.3 located at Rock Haven Road in Canboro, NC. The fimding for this project will be reviewed in more detail below. The information package includes a review of the low bids and a comparison to the present funding situation, Funding agreements, the hiterlocal Agreement with the Board of County Commissioners and Addendum "B", "smart growth principles," also are included for your review.. The purpose of this item is to request from the Board of Education direction in the amount of additional fimding to request from the County Commissioners for the completion of high school #.3. A contract can not be awarded until a capital funding ordinance is passed by the BOCC. Once the ordinance is in place, the f nal contract will be returned to the Board for approval. Biddin Pazticipation in the bidding was low with only two general contractors, Banrhill Construction and J.M.T.. Construction submitting bids. The bids were close but Barnhill Construction was the low bidder. Sub-contractor participation was also minimal with only one plumbing, tluee electrical, and tluee HVAC sub-contractors taking part. The complete bid tabulation will be presented to the Board when contracts for construction are awarded in .June, 2005. Worlc is scheduled to begin in July, 2005 and should be complete to open the school in August 2007.. While State law now allows acceptance of a single prime contractor bid over a nnrlti- prime bid of lesser cost, the cost differential in this project is too high to merit a single prime selection. Most of the buildings in the District have been built using amulti-prime contract. The experience of the District in the construction of Rashkis Elementary with a single prime contractor was quite positive, but financial constraints do not allow for single prime contract on this project. Other multi-prime contracts have been successful in the District, most notably Scroggs Elementary. The multi-prime contracts for the construction of high school #3 are provided below with a comparison to the single prime bid from the same contractor.. Multi-Prime Contract General Contractor $23,650,000 HVAC $2,872,352 Plumbing $1,719,410 Electrical $1,840,241 Sub Total $30,082,003 Single Prime Contract General Contract $31,005,000 Difference $922,997 The difference between the multi-prime and the single prime contract totals $922,997. The cost differential is too large to wan ant acceptance of the single contract bid. Fundin The funding for HS #3 is described in detail in the hrterlocal Agreement between the Orange County Commissioners and the Board of Education for the Chapel Hill - Carrboro City School Board of Education. That agreement is provided in its entirety in this package. The agreement was approved in June of 2003,. The Interlocal Agreement provides funding for HS #.3 in a base amount of $27,800,000 and additional funding of $2,200,000 if the Board of Education satisfies the "smart growth principles" as defined in Addendum "B" The agreement was approved in .June of 2004. Each is explained separately below, Base According to the Interlocal Agreement, a base fimding amount of $27,800,000 was agreed upon. A Capital Ordinance for the base amount has been approved by the County Commissioners for that amount. The exact language of the ordinat~ee is provided below. 3. The BOARD OF COiYIIvI1SS1ONERSagrew to appropriate a total of $?7,800, 000 for the total of all of the elements contained irr the Standen°ds for CHCCS high school #3 with funding fi•orn bonds (approved for CHCCS elenrerrtary school #10), impact fees card alternative, finarrcirrg. In that agreement, if the amount needed for the high school exceeds the base amount, the Board of Education would have to pay the overage from CIl' pay-as-you-go fiords that would not require the BOCC to incur any additional debt. The exact language of that article follows. 4. Any amount b,y which the total cost of CHCCS high school #.3 exceeds $27,800, 000 will be paid for by BOARD OF EDUCATIONpay-as-you-go CIP revenue not z°equiring the BOARD OF COMMISSIONERS to incur debt, As the funds required to meet the overage described earlier are designated in the BOCC alternatively financed elementary #10 project, no additional debt will be incurred by funding the overages. Elementary #10, designated for the Chapel Hill - Canboro City Schools, was delayed by the Commissioners from August 2007 until August 2009 to insure that the debt capacity of the County did not increase. An amount of $.3,500,000 of that delayed project has already been allocated by capital ordinance to the Orange County Schools for overages experienced during the bidding and construction of their middle school #3. Other potential uses of the delayed project finding include the senior centers and the animal shelter. Additional FundinE An additional funding amount of $2,200,000 was designated to HS #3 if the Board of Education met the "smart growth principles" as defined by the Board of County Commissioners. Addendum "B" is included in its entirety for your review, Addendum "B" set forth a list of smart growth principles that would provide for a sustainable, compact building that would reduce the school's impact on the enviromnent through efficient design, reduced site impact, improved walk ability, and alternative transportation considerations. Tn .June of 2004, the Cormmissioners agreed that the Board of Education had met the majority of the "smart growth principles" and by resolution approved an additional $1,900,000 to the high school budget. The exact language of that resolution follows. NOW THEREFORE, pursnm:t to North Carolina General Statzrte 5S~ 160A-461 and I1.SG431, the BOARD OF EDUCATION azzd the BOARD OF COMMISSIONERS agz•ee: A. that the following smart growth prozzaotizzg standards, if met in the design and plans for Phase I of CHCCS high school #.3, will satisf,7~ $1,900, 000 of the smart grorvtlr requirements of paragraph 8 of the INTERLOCAL AGREEMENT and $1,900,000 of'the smart gz°owth requirements of the INTERLOCAI, AGREEMENT ADDENDUM "A " for CHCCS high school #3: The remaining $300,000 of the original $2,200,000 has been reserved for transportation enhancements inchzding improved sidewalks, bikeways, joint transportation analysis and exploration of potential shuttle buses. Those funds have not been applied for as the CUP process in Carrboro is underway and alignment with the Town's plans and DOT plans for' the improvement of Smith Level Road will be critical in providing a unified plan for walking, bikes and reduced vehicle traffic. This will include sidewalks along Rock Haven Road, Smith Level Road and Tar Heel Drive . An additional $1,142,000 was provided for the project from future impact fees to complete the acquisition of the Glover property and that figure has been included in the summary provided below. An additional $500,000 dollars has been allocated to the project by (1) the dedication of the state sales tax refund for the project, $450,000, and (2) the dedication of the $50,000 from the Department of Transportation back into the building fund. This additional revenue will reduce the amount of funding required from the County Commissioners. Summary The following spreadsheet higlilights the additional fimding required to complete the high school Total Bulidino Multi-Prime Contract General Contractor $23,650,000 FNAC $2,872,352 Plumbing $1,719,410 Bectrical $1,840,241 Sub Total $30,082,003 Fees $2,162,500 Non-Personnel Start Up $500,000 Technology $1,000,000 Movable Furniture $800,000 Contingency $750,000 Land $3,531,697 Total Contract $38,826,200 Funding Interlocai Agreement $27,800,000 Addendum"B" $1,900,000 Addendum"B"Transportation $300,000 Additional Funding for Land $1,142,000 Sales Tax/Bus Refund $500,000 Total $31,642,000 Contract $38,826,200 Off Site Improvements $350,000 Sub Total $39,176,200 Additional Funding Required $7,534,200 Percent Overage from 31,642k 24% Percent Overage from 30,000k 25% The additional funding required to complete high school #3 above and beyond the existing available funding is $7,534,200. This represents a 24% overage from available fwrding and a 25% overage from the original $.30,000,000 amount. This compares to the 19% overage Orange County Schools experienced with their middle school. This funding level would provide a complete school with an auditorium, full fields and tennis courts. 10 Reduction Efforts The District has already taken major steps at reducing the projects cost and the overage that must be requested.. Those reductions include: • Use of future CIP funds to pay far the site $1,142,000 • Use of State of NC sales tax refund $ 450,000 • Use of DOT bus loop funds $ 50,000 • Reduction in technology costs $ .333,563 • Reduction in non-personnel startup costs $ 246,395 • Reduction in furniture and equipment $ 52,500 • Reduction in contingency fiords $ 6,476 • Total $2,280,925 This represents a 6% reduction in total project costs. The proposed contingency fiords represents 2.5% of the project, less than the 3.5% standard adopted several years ago, The District takes its role as fiscal steward seriously and the reductions in project costs already made validates that effort. Support Services recommends that Board of Education requests the additional funding to complete high school #3 from the Cormty Commissioners using funding from the delayed elementary # 10 budget. Mr. Scroggs and Mr. Mullin will be present to answer any questions you may have. Resolution: Be it, therefore, resolved that the Board of Education directs the school administration to prepare and deliver a request to the Orange County Board of County Commissioners for a Capital Project Ordinance to increase the funding for High School #3 by an amount of $ $7,534,200 for a total of $39,176,200. ~-H-r,~ct-~h-,enk 3 Manager's Recommendation for Re-Allocation of $12.8 Million from CHCCS Elementary #1D to Other School and County Priority Projects Potential Appropriation by Project OCS Middle School #3 $3,500,000 CHOCS High School #3 $3,800,000 CHCCS Elementary #10 Planning $500,000 OCS Middle School #3/West Ten Soccer Complex (water lines) $500,000 New Senior Centers $2,000,000 New Animal Services Building (land and design) $700,000 New County Campus (land and master site plan) $1,800,000 Total County Projects $12,800,000 is NORTH CAROLINA INTERLOCAL AGREEMENT ORANGE COUIQTY THIS INTERLOCAL AGREEMENT, made and entered into this ~ ~ t~ day of ~,{,f,{,{,(irf"'. 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 CHCCS 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 CHCCS 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 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 general development of the community and to its quality of life; and WHEREAS, aggressive capital spending, coupled with high annual per-pupil allocations, placed Orange County at the forefront of "actual effort" in school spending in North Carolina every year since 1997 and in the top five annually since 1990, according to the N.C. Public School Forum; and WHEREAS, the impending implementation of the Schools Adequate Public Facilities program in Orange County, hereinafter called "SAPFO," makes providing timely capacity in the Chapel Hi11-Carrboro School District high school level a heightened priority; and WHEREAS, consideration of Chapel Hill-Carrboro School District high school level capacity in the initial implementation of SAPFO will be suspended until CHCCS high school #3 is available for student enrollment; and WHEREAS, the two boards recognize that disputes regarding the amount to be spent on CHCCS high school #3, as well as the amount to be appropriated by the BOARD OF COMMISSIONERS to the capital outlay fund of the BOARD OF EDUCATION, have the 2 potential to delay the opening of CHCCS high school #3 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, on June 19, 2003, adopted resolutions in support of its decision to locate CHCCS high school #3 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 the June 19, 2003 resolutions, the BOARD OF EDUCATION requested the BOARD OF COMMISSIONERS approve 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 EDUCATZON's statutory authority to acquire the identified parcels by the exercise of eminent domain; and WHEREAS, by the June 19, 2003 resolutions, the BOARD OF EDUCATION requested the BOARD OF COMMISSIONERS approve a capital project ordinance for CHCCS high school #3 to include $2,535,700 3 -5 for land acquisition and $239,375 for planning fees through schematic design; and WHEREAS, the BOARD OF EDUCATION resolved, in the June 19, 2003 resolutions, that it would not request from the BOARD OF COMMISSIONERS "funding for the acquisition of land for the [CHCCS high school #3] project over and above the appraised value that would increase the debt of the County;" 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 CHCCS high school #3 on the identified parcels presents certain design issues including the likelihood that the considerable rock located on one or more of the identified parcels adds uncertainty to the development costs of CHCCS high school ~E3; and 4 1~ WHEREAS, the BOARD OF COMMISSIONERS endorses neither the site selected for CHCCS high school #3 nor the acquisition by eminent domain of the parcels of land that will make up the site, however, the BOARD OF COMMISSIONERS acknowledges that the BOARD OF EDUCATION is within its statutory power to acquire the properties it has selected for the siting of CHCCS high school #3 and to do so by the exercise of eminent domain; and WHEREAS, the amount of funding identified by the BOARD OF COMMISSIONERS for CHCCS high school #3 is $27,800,000; and WHEREAS, no concept plan for CHCCS high school #3 has yet been presented by the BOARD OF EDUCATION to the BOARD OF COMMISSIONERS with a projected cost of $27,800,000; and WHEREAS, the BOARD OF COMMISSIONERS on June 16, 2003, in the context of a proposal by the BOARD OF EDUCATION for the approval of approximately $.33,870,000 in funding for CHCCS high school #3, approved a request that the BOARD OF EDUCATION consider a number of options for meeting student capacity at the high school level for students residing in the Chapel Hill- Carrboro City School District; and WHEREAS, in that June 16, 2003 action, the BOARD OF COMMISSIONERS offered, ~~in order to promote creative thinking and a sounder example for young people" to approve an appropriation to the BOARD OF EDt]CATION's capital expense fund $2,200,000 more than $27,800,000 for CHCCS high school #3, 5 i~ provided the BOARD OF COMMISSIONERS is satisfied with a proposal that can be made by the BOARD OF EDUCATION for a design of CHCCS high school #.3 that promotes smart-growth, which design addresses "reduced parking, [reduced] land disturbance, and other deleterious aspects of current plans;" and WHEREAS, after careful consideration of all of the uncertainties and circumstances surrounding CHCCS high school #3, the only reasonable way for the BOARD OF COMMISSIONERS to give funding authorization necessary for CHCCS 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 CHCCS 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 CHCCS high school #3; and WHEREAS, the BOARD OF COMMISSIONERS and the BOARD OF EDUCATION have approved a funding mechanism to fund CHCCS high school #3; 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 6 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 which together have been identified by the BOARD OF EDUCATION as its choice for the site for CHCCS high school dk3, 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 CHCCS 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 i~ 7 Minton property 3.6 326,000 ~~ Total 63.72 $2,535,700 3, The BOARD OF COMMISSIONERS agrees to appropriate a total of $27,800,000 for the total of all of the elements contained in the Standards for CHCCS high school #3 with funding from bonds (approved for CHCCS elementary school d~10), impact fees and alternative financing. 4. Any amount by which the total cost of CHCCS high school #3 exceeds $27,800,000 will be paid for by BOARD OF EDUCATION pay-as-you-go CIP revenue not requiring the BOARD OF COMMISSIONERS to incur debt. 5. 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 COMMISSIONERS for the acquisition of the site for CHCCS 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 CHCCS 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. 8 ao 6. 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 CHCCS 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 EDLICATION's pay-as-you-go CIP revenue pays off any amount by which the total cost of CHCCS high school #3 exceeds $27,600,000 as identified in paragraph number 4 of this agreement. 7. 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 CHCCS high school #3 as provided for in this agreement. 8. The BOARD OF COMMISSIONERS agrees to approve, by capital project ordinance, an appropriation to the capital expense fund of the BOARD OF EDUCATION of $2,200,000 more than $27,800,000 for CHCCS high school #3, provided the BOARD OF COMMISSIONERS is satisfied with a BOARD OF EDUCATION proposed design of CHCCS high school #3 that promotes smart-growth, which design addresses reduced parking, reduced land disturbance and other deleterious aspects of the previously reviewed plan for the construction and site development of CHCCS high school #3. 9 at 9. The parties may only amend this agreement by a written agreement approved by both boards and signed by their respective duly authorized representatives. IN WITNESS WHEREOF the BOARD OF EDCICATION 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. ATTEST: ? , By: ~ ~/~ N it G, Pedersen, Superintendent ATTEST: By: ~~.-._ onna S. a er, Clerk CHAPEL HILL-CARRBORO CITY BOARD OF EDT7CATION B y _ --~G. ° d-z~>G~- Valerie Foushee, Chair Board of Education ORANGE COUNTY sY. ~ CL ~,1 l~ ~.- ~ ~ Chair Margaret Brown, Board o Commissioners 10 DRAFT as NORTH CAROLINA INTERLOCAL AGREEMENT ADDENDUM "A" ORANGE COUNTY THIS INTERLOCAL AGREEMENT ADDENDUM "A," 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 clarify the scope of and define terms in the INTERLOCAL 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 CHCCS 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 CHCCS high school #3. NOW THEREFORE, pursuant to North Carolina General Statute §§ 160A-461 and 115C-431, the BOARD OF EDUCATION and the BOARD OF COMMISSIONERS further agree as follows: 1. Except as provided in this Addendum, the INTERLOCAL AGREEMENT pertains only to the initial phase of CHCCS high 1 DRAFT school #3. The initial phase (Phase I) will have a classroom capacity for 800 students with facilities and facilities capacity generally as detailed on the Moseley Wilkins & Wood CHCCS high school #3 "Phased Project Summary" which is Exhibit A hereto. The funding and construction of the subsequent phase (Phase II) of CHCCS high school #3 is not, except as described here, a part of the INTERLOCAL AGREEMENT or this Addendum. It is anticipated that Phase II will include additional classroom capacity for 400 students, with additional facilities generally as detailed in Exhibit A. In the event there is a smart growth additional appropriation as described in paragraph 4 of this Addendum and paragraph 8 of the INTERLOCAL AGREEMENT, Phase II will be planned, designed and constructed consistent with the smart growth additional appropriation. 2. The funding allocation recited in Paragraph 2 of the INTERLOCAL AGREEMENT constitutes the BOARD OF COMMISSIONERS` approval of the amount to be spent for the site as required by N.C. Gen. Stat. § 115C-426(f); 3. The BOARD OF COMMISSIONERS and the BOARD OF EDUCATION are involved in a process designed to result in a list of objective smart-growth principles for CHCCS high school #3 which process is designed to allow construction of the initial phase of CHCCS high. school #3 to begin in a timely manner; and a3 2 DRAFT a~ 4. If the BOARD OF EDUCATION'S design and plans for Phase I of CHCCS high school #3 meet said smart-growth principles, the BOARD OF COMMISSIONERS agrees to approve, by capital project ordinance, an additional appropriation to the capital expense fund of the BOARD OF EDUCATION of $2,200,000 more than $27,800,000 for CHCCS high school #3. This appropriation shall be derived from newly-identified funding sources rather than funds already dedicated to BOARD OF EDUCATION projects, and shall not require debt service by the BOARD OF EDUCATION.. This funding shall be provided through additional County debt of up to $2.2 million through a form of alternative financing. 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. ATTEST: CHAPEL HILL-CARRBORO CITY BOARD OF EDUCATION By: By: Elizabeth Carter, Chair Neil G. Pedersen, Board of Education Superintendent 3 DRAFT a5 ATTEST: By: ORANGE COUNTY By: Barry Jacobs, Chair Board of Commissioners Donna S. Baker, Clerk DRAFT NORTH CAROLINA INTERLOCAL AGREEMENT ADDENDUM "B" ORANGE COUNTY THIS INTERLOCAL AGREEMENT ADDENDUM "B," made and entered into this day of 2003 and effective as of the day of 2003, by and between the CHAPEL HILL- a~ 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 clarify the scope of and define terms in the INTERLOCAL AGREEMENT and INTERLOCAL AGREEMENT ADDENDUM "A" 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 CHCCS 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 CHCCS high school #3. NOW THEREFORE, pursuant to North Carolina General Statute §§ 1GOA-461 and 115C-431, the BOARD OF EDUCATION and the BOARD OF COMMISSIONERS agree: DRAFT A. that the following smart growth promoting standards, if met in the design and plans for Phase I of CHCCS high school #3, will satisfy $1,900,000 of the smart growth requirements of paragraph 8 of the INTERLOCAL AGREEMENT and $1,900,000 of the smart growth requirements of the INTERLOCAL AGREEMENT ADDENDUM "A" for CHCCS high school #3: 1. Transportation Standards. The building shall be located within 34 mile of an existing or planned trail, greenway, a~ bikeway or bus line. The design of CHCCS high school #3 and its facilities shall provide bike racks and storage for 10% of the building occupants, provide preferred parking for carpools and alternative vehicles and reduce parking lot size and its associated impervious surfaces by at least 35% from Orange County School Construction Standards by providing no more than 420 spaces for Phase I and Phase II student/teacher/staff/ visitor motor vehicle parking, all to be constructed with Phase I. 2. Site Standards. The design of CHCCS high school #3 and its facilities shall (1) preserve a minimum of 30% of the site in undeveloped space; and (2) provide shade on at least 300 of non-roof impervious surface on the site within 5 years or use an open grid pavement system, with less than 50% impervious surface, for SOo of the parking area. The site shall comply 2 DRAFT with the Town of Carrboro's new stream protection plan and implement a storm management plan that does not increase the rate or quality of runoff from the site; 3. Building Standards, The building design shall stress compact design features including multi-story construction, The physical education and athletic facilities shall be designed to minimize land disturbance; a~ 4, Water Use Standards. Design standards shall have a goal of aggregate water reduction of 20% of the base, not including irrigation, after meeting EPA 1992 fixture performance requirements with respect to irrigation and reflect xeriscaping principles; 5. Shared Use Standards. Design standards shall provide the public with non-school hour access to exterior spaces, including a vita track, cross country course designed and maintained to increase environmental awareness and interior spaces for community use including common areas, auditoria and meeting rooms; and 6. CHCCS High Performance Standards. Design standards shall comply with the high performance building design criteria in School Board Policy 9040 (see attached), 7. Public Road Improvement Standards, Endorse the timely construction of road improvements to Smith Level Road and 3 DRAFT a~ intersection improvements to the intersection of Rock Haven Road and Smith Level Road which improvements have been endorsed by Carrboro and Orange County and which improvements, if timely constructed, will reduce by as much as $250,000 the offsite road improvement cost to CHCCS in its construction of CHCCS high school #3, B, that additional study and work needs to be done on the following smart growth promoting standards, which, if met, will satisfy $300,000 of the smart growth requirements of paragraph 8 of the INTERLOCAL AGREEMENT and $300,000 of the smart growth requirements of the INTERLOCAL AGREEMENT ADDENDUM "A" for CHCCS high school #3: Transportation Enhancement Standards, Reduce dependency on the automobile for school functions and to reduce vehicle miles traveled related to school functions by: a. the purchase of busses or shuttles to be owned by CHCCS or otherwise, in tandem with the development of an enhanced transportation system, for school uses and functions, including student, staff and teacher transportation to and from school and student, staff, teacher and visitor transportation to and from preschool and afterschool programs; b. contributions of funds and expertise to the evaluation and development of the use of Chapel Hill Area 4 DRAFT Transit and/or Orange Public Transportation to provide non- automobile alternatives for' transportation of students, staff, teachers and visitors to and from school, preschool and afterschool programs; c. the purchase of transit software to be used to reduce vehicle miles traveled in future redistricting decisions; d. promote walking to and from school and pre and after school programs by funding with matching grants the construction of sidewalks in Carrboro and Chapel Hill located within 1.5 miles of CHCCS high school #3 (the school "walk zone") which sidewalks are likely to be constructed by Carrboro and Chapel Hill only in response to matching grants; e. promote bike riding to and from school and pre and after school programs by funding with matching grants the construction of bike lanes in Carrboro and Chapel Hill within the attendance district of CHCCS high school #3 which bike lanes are likely to be constructed by or at the request of Carrboro and Chapel Hill only in response to matching grants; 30 f. promote bus and other transit transportation to and from school and pre and after school programs by funding the construction of weatherproof shelters (considering climate controlling them) at locations within the attendance district of 5 DRAFT 3 ~ CHCCS high school #3 adjacent to or conveniently close to park and ride locations established by Carrboro, Chapel Hill and the University of North Carolina. 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. ATTEST: By: Neil G. Pedersen, Superintendent ATTEST: By: Donna S. Baker, Clerk CHAPEL HILL-CARRBORO CITY BOARD OF EDUCATION By: Elizabeth Carter, Chair Board of Education ORANGE COUNTY By: 6 Barry Jacobs, Chair Board of Commissioners UPDATED 04/29/05 QUESTIONS/OBSERVATIONS C~ CHCCS HIGH SCHOOL #3 BUDGET SHORTFALL September 2004 documents produced by the architects anticipated a budget shortFall of approximately $4.5 million, When did the architects last provide a formal update to CHCCS on likely bids, and what financial impacts did that update anticipate? • What is the explanation offered by the architects far why the bid results were so far off from their September estimation of likely project costs ($39.2 million now vs. $35..4 million then)? In light of the tight construction market and anticipated project budget overruns, did the architects and CHCCS consider and bid alternates? If so, what were they? If not, why not? Would the addition of a value engineering component be helpful? Will CHCCS consider revising the design of the project, or rebidding the project within a time frame that might still allow an August 2007 opening? Will CHCCS consider delaying the opening until August 2008 (or later) and rebid the current (ar revised) design in 6-9 months (or some other appropriate timeframe)? • What is the likely timeline for Carrboro development review process decisions, and how are those likely to impact the current planned opening of August 2007? Does the BOCC want to consider as a starting point the Manager's recommendation of several weeks ago that $3.8 million of the $12.8 million in alternative financing currently programmed for CHCCS Elementary #10 be reallocated to High School #3? What changes (if any) would be needed to the interlocal agreement if the BOCC decides to provide some level of additional funding for this project? If opening High School #3 in August 2007 is a priority, will CHCCS redirect some portion of expected pay-as-you-go revenue over the next several years to help offset the additional project cost? • Will CHCCS be considering temporary ways of addressing CHCCS high school overcrowding, such as additional mobile units, rental of temporary space, or other measures? CHCCS expended accumulated impact fees (with plans to "reimburse" the project budget later through designation of a portion of CHCCS's future pay-as-you-go funds) to provide cash for the additional $1,142 million cost of the Glover property, This approach adhered to the provision of the interlocal agreement that precludes Orange County from incurring additional debt if the project budget increases. That seems to be a different set of circumstances than reallocating a portion of the $12.8 million far Elementary #10, which DOES involve incurring more debt for THIS project (although not more debt than Orange County was already planning to issue in the near term). What are the likely impacts of ongoing discussion between Town of Carrboro and DOT regarding Smith Level Road improvements on the HS#3 project budget and timeline?