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HomeMy WebLinkAboutAgenda - 04-24-2000-3,R ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: April 24, 2000 Action Agenda Item No. _~ SUBJECT: Clarification on County Policy for Planning and Funding of School Capital Projects DEPARTMENT: County Manager/Budget PUBLIC HEARING: (Y/N) No ATTACHMENT(S): Draft Policy INFORMATION CONTACT: John Link or Rod Visser, ext 2300 Donna Dean, ext 2151 TELEPHONE NUMBERS: Hillsborough 732-8181 Chapel Hill 968-4501 Durham 688-7331 Mebane 336-227-2031 PURPOSE: To discuss a draft document that would clarify expectations of the Orange County Board of Commissioners in collaborating with the Boards of Education in planning for and implementing school capital projects. BACKGROUND: At the March 29 CIP work session, the Board expressed its intent to convey to the two school boards expectations regarding communication about, and review processes associated with, school capital projects. The Board enumerated a number of points that should be addressed in a written policy related to planning and funding school projects. Staff drafted a proposed policy document intended to capture the most important points.to be included in written communication to the two school boards. That draft has been revised in the past few days to reflect changes suggested by individual commissioners. Courtesy copies of this abstract and attached draft policy are being provided to the Superintendents, but there has not been any formal solicitation from the two school systems regarding the proposed policy. FINANCIAL IMPACT: There is no direct financial impact associated with discussion of the draft document. However, the policy that the Board would ultimately approve regarding this topic is intended to ensure that funds allocated for school capital projects will be expended in as cost-effective a manner as possible. RECOMMENDATION(S): The Manager recommends that the Board discuss the draft document, and provide appropriate direction to the Manager and staff regarding the adoption of a formal policy governing the issues addressed in the document. DRAFT Revised 4/20/00 ORANGE COUNTY Clarification of Policy on Planning and Funding School Capital Projects (This document is intended to clarify the expectations of the Orange County Board of Commissioners in collaborating with the Boards of Education, in planning for and implementing school capital projects. The staff assumption is that further work will be done on this draft, with a communication of a policy on this topic to be transmitted from the BOCC to the two school boards following the April 24`" budget work session) 1. Background The County's ten year capital investment plan is a planning document that is updated annually. Before the beginning of each fiscal year, the Board of County Commissioners approves the funding plan in concept. However, funding of individual projects is contingent upon the scope of work required to complete the project. • Level l Projects: ,Level one projects are those projects that have a relatively small scope of work and can be accomplished using in-house staff or entail purchasing equipment and vehicles. The Board approves the entire project ordinance at one time. • Level 2 Projects: Level two projects are major projects that require several phases to complete. For these projects, the Board approves funding for individual components as .project scope develops rather than allocating a lump sum for the life of the project. Major components include: • Planning, architect, engineering • Site acquisition and associated fees • Construction • Equipment, Furnishings, Non-Recurring Start-Up costs • Technology 2. Site Standards In accordance with North Carolina State Statutes, a local board of education cannot execute a contract nor expend funds to purchase a facility site without the consent of the local board of county commissioners. As each school system in Orange County plans for future school-related facilities, it is important that they adhere to the following guidelines related to the potential acquisition, either by purchase or donation, of a site, in addition to any siting criteria-they may have established internally: The Board of Education is to notify the Orange County Board of Commissioners, in writing, whenever they have tentatively identified a potential school site for purchase, or if a potential .donor Page 1 of 5 Clarification of Policy on Planning and Funding School Capital Projects 3 r-. DRAFT Revised 4/20/00 indicates interest in donating a site to the system. The written correspondence should provide the following information for Commissioner consideration: • Location, including tax map numbers, of the potential site; • Opportunities for additional facilities to be co-located as a park site, as outlined in the "Memorandum of Agreement for Providing Coordinated Site and Facility Planning"; • The availability of public utilities at or in close proximity to the site; • If a donated site: • Any knowledge of a donor's plans for adjacent development; • Special considerations or expectations the donor may have referenced in initial discussions pertaining to the donation; Upon receipt of the Board of Education's notification, the Commissioners will appoint, by a majority vote of the Board, a representative to work directly with the Board of Education. As a partner with the school system, the Commissioner representative will receive information and provide input regarding talks and negotiations related to the potential site. Environmental Factors - A school system is to pay particular attention to the physical environment surrounding the site and new facility. • In order to avoid future flood hazards, a facility should not be located in close proximity to wetlands, stream buffers, or in a flood plain. Facility siting should also avoid other physical factors that create either additional construction or longer-term maintenance problems, or other unfavorable environmental impacts. Once a system acquires a site and before grading begins, each school system receives State approval of its erosion control plan and additional County review to ensure that unnecessary cutting of trees or clearing of land does not occur. Adequate natural buffers are to be left intact with existing trees, or replanted if the areas are disturbed during construction. Special attention should be paid to "specimen" trees as outlined in the County land development code. Road and Utility Requirements -Major elements for a system to consider in siting a new facility relate to infrastructure requirements by a Town or other public utility. In some recent instances, the systems have been required to provide costly infrastructure such as sidewalks and road improvements. These elements greatly inflate construction costs of new facilities. As a system begins initial planning, there should be a joint meeting between elected Town, County and Education officials to negotiate particular requirements that all parties expect of other project partners. Page 2 of 5 /"~L-:C,...4:..« ,.C D,.I:.... ,... Dt.,««:«„ ~«.i T:„«rh«o Qrhnnl ('a«ital Prniects DRAFT Revised 4/20/00 3. Building Design. Standards As a school system selects a particular facility design,. it is important that the most cost-effective design alternative be pursued. Historically in Orange County, new school buildings have been designed uniquely for each particular project. The Board of Commissioners encourages systems to pursue non-traditional; or prototype, designs that can be replicated for use on more than one project. Should a system choose a unique design, it is to provide a detailed cost comparison analysis and justification in writing of why that particular approach was chosen over a prototype design. 4. Construction Standards Over the past few years, the County has given special attention to defining construction standards for each school level -elementary, middle and high schools. The standards provide a minimum and maximum square footage and student capacity for each level. As a system undertakes construction of a new facility, it is critical that the system adheres to the most recent school construction standards, with the estimated cost including a reasonable allowance for inflation. The Commissioners agree to provide funding for new school facilities that are designed within . the adopted standards. They do not agree to fund projects that go beyond the adopted standards unless there is sufficient justification provided in writing by the Board of Education. One justification for going beyond the standards centers on community use of the new facility. For example,. a system may design a facility with a "larger than standards gymnasium" that allows for eitizen/communityusc. In this case,. the system must provide detailed explanations outlining the benefits to be offered to the community and citizens, in the context of the intergovernmental "Memorandum of Agreement for Providing Coordinated Site and Facility Planning". S. Project Approval A project's inclusion in the ten-year plan does not give the Schools or the County legal authority to expend funds. The legal authority to expend funds lies in County Commissioner approved capital project ordinances. Therefore, the schools should not incur any expenses for any capital project until the Board of County Commissioners approves the capital project ordinance. In order to provide timely flow of the approval process and ensure that all elements are addressed, staff recommends the following: ~ Detail included in each system's ten-year Capital Investment Plans regarding the scope and timing of various phases of individual capital projects is limited. To that end; as individual Boards of Education begin discussions related to new capital projects (construction, site acquisitions, major renovations, etc), they will be expected, in writing, to notify the Board of Page 3 of 5 Clarification nfPnlicv nn Planning and Funding Schnnl Capital Prniectc :~. DR.AFT Revised 4/20/00 County Commissioners of the substance of those discussions. The memorandum from the School Board will: • Provide the Commissioners -with an overview of the project concept along with other project specifics that the Board of Education has defined to that point; • Justify the need based on current school capacities and projected student enrollments consistent with the School Adequate Public Facility Ordinance (if the Ordinance is in effect at this time); • Provide a preliminary cost projection of the project based upon the adopted school construction standards and provisions of the Cost Effective Facilities Initiative (CEFI), which has derived from earlier discussions about `value engineering"; • Request that the Board of Commissioners approve a capital project ordinance to provide funding for the initial planning phase of the project; • Instruct the Superintendent to update the County Manager, in writing, of the project's progress at his/her monthly meetings with the County Manager. • Upon receipt of the memorandum from the Board of Education, the Board of Commissioners will: • Act upon the project concept by either approving it or asking the Board of Education to amend the concept plan; • If the Board of Commissioners approves the project concept, the County Budget Director will prepare an agenda, abstract and related capital project ordinance that provides funding for the initial planning phase of the project; • Appoint, by majority vote of the Board, either a Commissioner representative and one staff representative, or two staff representatives, to partner with the school system as the plans develop; • Instruct County staff to confirm the project's cost estimates along with student enrollment projections; • Instruct the County Manager to update the Commissioners on a regular basis regarding the written information shared by the School Superintendent. 6. Expenditure of Project Funds Funding for Project Planning -School systems will not expend or encumber for planning of any project until the Board of County Commissioners has approved the plan concept. Background -For several years, the Board of Commissioners has approved a capital project ordinance entitled Planning for Future Projects for each school system. The creation of Page 4 of 5 DRAFT Revised 4/20/00 these ordinances enabled a system to expend a portion of their pay-as-you-go funds for planning during a project's conceptual stages. Once a project grew beyond the concept stages, systems requested the Commissioners to approve a "project specific" capital project ordinance allocating all funds anticipated to carry out the planned project.. In turn, each district expended their monies up-front for planning, design, architect, construction, furniture and equipment. In return, the County reimbursed each District with all of the project-related. expenditures up to the total project budget. With the changes implemented by the County Commissioners in June 1999, this process has .changed. It is important to note that unless a County ,approved capital project ordinance is in place (i.e. adopted by the .County Commissioners), that the County is not legally or otherwise obligated to reimburse the school system for their expenditures. If the Board of County Commissioners approve the project concept 'and capital project ordinance as outlined in Item 5 above, the following steps occur: • Following Board of Commissioner approval of final plans for the project, the school system advertises for construction bids; • Once the system receives the bids, the School Superintendent notifies the County, in writing, of the result of all bids received; • While the Board of Education may receive the bids, it should not execute any contract until the Board of County Commissioners receives bid information and approves a capital project ordinance for the construction phase of the project; • The School Superintendent submits, in writing, to the County Manager all. contract change orders for the project. Upon receipt of the information, the County Budget Director prepares an agenda abstract and an amended capital project ordinance for approval by the Board of Commissioners. • The School Finance Directors work with the County Budget. Director to ensure that the capital project ordinance reflects bids received by the school district along with any changes made by the Board of County Commissioners; • Upon adoption by the Board of Commissioners, the Budget Director informs the School and County Finance Director of the abstract approval and the assigned account number(s). This is done via a standard memorandum that indicates purpose and account codes. • All requests for payment from the School Finance Directors are forwarded to the County Finance Department for payment. The County Finance Department ensures that the requisition for payment falls within the purposes approved by the Board of Education. Page 5 of 5 rta,;f~at;~„ of Pnhcv nn Planning and Funding School Ca>7ita1 Projects