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ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: October 6, 2009 <br />Action Agenda <br />Item No. 5- Q <br />SUBJECT: Public Hearing on the Issuance of Up to $4.6 Million of Qualified School <br />Construction Bonds for the Carrboro Hi h School Arts Win <br />DEPARTMENT: Financial Services Department PUBLIC HEARING: (Y/N) Yes <br />ATTACHMENT(S): <br />INFORMATION CONTACT: <br />Gary Humphreys 919-245-2453 <br />Bob Jessup 919-933-9891 <br />PURPOSE: To provide an update on the status of the proposed issuance of up to $4.6 million <br />of Qualified School Construction Bonds for the Carrboro High School Arts Wing and to conduct <br />a public hearing to receive public input. <br />BACKGROUND: At the September 15, 2009 meeting the Board of County Commissioners <br />approved proceeding with the preliminary steps necessary to seek Qualified School <br />Construction Bond (QSCB) financing for the Carrboro High School Cultural Arts Wing in an <br />amount not to exceed $4.6 million. The Board authorized setting a public hearing on the <br />proposed financing for the October 6, 2009 Board Meeting. The public hearing was advertised <br />in the Chapel Hill Herald on September 23, 2009. <br />Chapel Hill Carrboro City Schools (CHCCS) received $1.9 million for the Arts Wing project from <br />the State of North Carolina's 2009 QSCB allocation. CHCCS received notification on <br />September 17, 2009 from the Department of Public Instruction (DPI) that it had been awarded <br />additional QSCB authority for the project during the second round of awards. The second <br />round addressed the unused first round 2009 QSCB program allocation. This additional award <br />brings the total QSCB authority for the project to $4,136,434. The project cost estimate is <br />$4,577,300. <br />Staff has had several discussions with Local Government Commission (LGC) staff regarding <br />the proposed QSCB financing. The LGC will not approve the QSCB financing since full funding <br />is not currently in place for the entire project. In order to go forward with the QSCB financing in <br />2009, a source of funding for the additional $441,000 will need to be identified. CHCSS staff <br />has agreed to ask the CHCCS Board of Education to make available $441,000 from the <br />system's pay as you go funding from the County, if necessary, to complete the project. <br />It should be noted that Orange County Schools (OCS) applied for QSCB to finance an <br />auditorium project at Stanford Middle School. The OCS system received an allocation of $1.5 <br />