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HomeMy WebLinkAbout2003 Planning - Schools Adequate Public Facilities Memorandum of Understanding and OrdinanceNORTH CAROLINA ORANGE COUNTY 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 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 1 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 Hill-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 EDUCATION'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 for land acquisition and $234,375 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 #3; and 4 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 EDUCATION'S capital expense fund $2,200,000 more than $27,800,000 for CHCCS high school #3, 5 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 #3, 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 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 #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 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 EDUCATION'S pay-as-you-go CIP revenue pays off any amount by which the total cost of CHCCS high school #3 exceeds $27,800,000 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 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 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: ~I B ~~ ' `~' Y~ Donna S. Baker, Clerk CHAPEL HILL-CP,RRBORO CITY BOARD OF EDUCATION B y : ~~ ~-e--- Valerie Foushee, Chair Board of Education ORANGE COUNTY By: ~'~VV`~ VF Margar Brown, Chair Board f Commissioners 10