HomeMy WebLinkAboutAgenda - 05-20-2003-5aORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: May 20, 2003
Action Agenda
Item No. 5-~
SUBJECT: Draft Interlocal Agreement with Chapel Hill-Carrboro City Schools Regarding
Third High School Site and Project Budget
DEPARTMENT: County Manager/Attorney PUBLIC HEARING: (Y/N) No
ATTACHMENT(S):
Resolution
Draft Interlocal Agreement
INFORMATION CONTACT:
Rod Visser, ext 2300
Geof Gledhill, 732-2196
TELEPHONE NUMBERS:
Hillsborough 732-8181
Chapel Hill 968-4501
Durham 688-7331
Mebane 336-227-2031
PURPOSE: To receive a report on a draft interlocal agreement between Orange County and
the Chapel Hill-Carrboro City Schools (CHCCS) that would formally establish the upper limit of
funding that the Board of County Commissioners is willing to earmark for the purchase and
development of a site and construction of a proposed third high school; and to approve a
resolution transmitting the draft agreement to the Chapel Hill-Carrboro Board of Education for
their comment and consideration.
BACKGROUND: The location and cost of a proposed third high school in the Chapel Hill-
Carrboro School system has been the subject of discussion during numerous BOCC and
CHCCS meetings in recent months. At their April 24, 2003 work session, the BOCC decided
that if they ultimately approve the amount to be paid for the proposed Rock Haven Road site,
then the overall scope and capital project budget should be the subject of an interlocal
agreement between CHCCS and the County.
The general thrust of such an agreement would be to explicitly state the maximum amounts that
the County Commissioners are willing to fund for both the acquisition of the property (whose
final cost is uncertain due to the likely need to acquire it through the process of eminent
domain) and the overall school construction project. Any cost for either land or the overall
budget that exceed the established figures would have to be funded through some portion of
pay-as-you-go funds allocated under the County's capital funding policy for use by CHCCS.
CHCCS indicated preliminarily at the April 24 work session that they would be amenable to
entering into such an agreement.
The County Attorney has developed a draft interlocal agreement that would accomplish the
intent outlined above. The Attorney can make modifications based on BOCC feedback at this
meeting. Staff have prepared a resolution for the Board's consideration that would formally
transmit the draft agreement to the Chapel Hill-Carrboro Board of Education for their review and
comment. The agreement would be docketed for formal approval at a BOCC meeting in June
2003, if the Board ultimately approves the scope and budget for the proposed third high school.
FINANCIAL IMPACT: There is no financial impact directly associated with this report and
resolution. However, if the BOCC ultimately approves the scope and budget for High School #3
at the Rock Haven Road site, this agreement would firmly establish the amount of funding the
BOCC is willing to provide for both the purchase of the site by CHCCS and the overall school
construction project budget.
RECOMMENDATION(S): The Manager recommends that the Board:
1) receive the report as information at this time;
2) provide direction to the Manager, Attorney, and staff on any desired modifications to the
draft interlocal agreement; and
3) approve the resolution transmitting the draft agreement (with any modifications thereto
specified by the BOCC at this May 20 meeting) to the ChapeN Hill-Carrboro Board of
Education.
ORANGE COUNTY BOARD OF COMMISSIONERS
RESOLUTION TRANSMITTING A DRAFT INTERLOCAL AGREEMENT
TO THE CHAPEL HILL-CARRBORO BOARD OF EDUCATION
REGARDING THE SCOPE AND BUDGET OF PROPOSED HIGH SCHOOL #3
WHEREAS, the Orange County Board of Commissioners indicated at their work session on
April 24, 2003 the desirability of entering into an interlocal agreement with the Chapel Hill-
Carrboro Board of Education regarding the overall scope and capital project budget for a
third high school proposed on Rock Haven Road and Smith Level Road near Culbreth Road,
in the event that project is undertaken; and
WHEREAS, at that same work session, Chapel Hill-Carrboro City Schools (CHCCS)
representatives in attendance indicated their preliminary concurrence with the potential
usefulness of such an interlocal agreement; and
WHEREAS, the Board of Commissioners has received a report from the County Manager,
County Attorney, and County staff regarding a draft of such an interlocal agreement;
NOW, THEREFORE, BE IT RESOLVED THAT the Orange County Board of Commissioners
does hereby formally transmit the accompanying draft interlocal agreement to the Chapel
Hill-Carrboro Board of Education for their review, with a request that the Board of
Education's comments be provided in writing at or before the Board of Commissioners
budget work session on June 10, 2003.
This, the 20th day of May, 2003.
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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-Carrboz-o City School
System, and the BOARD OF COMMISSIONERS exercises the statutory
duty to provide certain school funding to the BOARD OF
EDUCATION; and
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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
school #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
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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
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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 i:n the 2001 bond
program and on the BOARD OF EDUCATION selected location of high
school #3; and
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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 ~Oeneral 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
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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:
Parcels
Acreage
Appraised
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 (10% of
construction costs) 4,575,000
Fees (10°s 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
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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 t:he 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
$12,800,000
3, 240, 01)0
6,400,000
5,100,000
6, 330,~OC)0
$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
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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 i.n 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.
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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 3`d high school.doc
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