ORD-2005-031 - CHCCS High School #3 Capital Project Ordinance

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d ~l ~ • a©O~~ d ~ ~ .- ~ ,s,ooS" b. CHCCS High School #3 Capital Project Ordinance 9 The Board considered approval of a revised capital project ordinance to fund construction of Chapel Hill-Carrboro City Schools (CHCCS) High School #3. John Link said that this is a request to approve the revised capital project ordinance to fund the construction of the CHCCS High School #3. The method of considering this action is to approve a total of $35,442,000, which includes the $4.3 million approved by the County Commissioners recently. There have been a number of changes in funding and financing, and the interlocal agreement also needs to change because of this. The staff recommends that the Board proceed with adopting the amended project ordinance, because it is the fiscal instrument by which the school can be built. Rod Visser said that the reason for the timing.of this is that the school board would like to award the contract for the construction project at their June 16th meeting. He made reference to one change in the abstract, which was in the first full paragraph in the second page. The numbers have not changed. With regard to the capital project ordinance, there are a few clarifying changes. He described each of these changes. Commissioner Gordon asked for ared-line copy in the future to show the changes. Rod Visser pointed out on section 5, in addition to the $35,442,000 of County appropriated money, the CHCCS has identified another $500,000 of funding to go towards this project. This will not be appropriated by the Board of County Commissioners. This includes $450,000 in sales tax reimbursements and $50,000 in funding from NCDOT. He added that the staffs walked through all of the numbers very carefully and agreed that they are correct. Chair Carey said that he and Commissioner Jacobs discussed these changes and that they are appropriate, based on consultations with the County Attorney. They thought it was more appropriate to proceed rather than waiting to amend the interlocal agreement because of the time constraint of the school system. Commissioner Gordon asked Rod Visser to go over what has changed since the interlocal agreement was approved and the amendments needed. Rod Visser said that since the interlocal agreement was approved, they have taken formal action to determine that the $12.8 million in bonds that would have gone to Elementary school #10 will go to High School #3. The $2.5 million for alternative financing not related to smart growth is a portion of the alternative financing identified in 2001 as part of the Capital Needs Advisory Task Force. The alternative financing of $1.9 million related to smart growth and another $300,000 of pending alternative financing has been added through Addendum A and Addendum B. Alternative Financing of $4.3 million was diverted from Elementary school #10, which the Board decided on May 5th. The most significant change is that the $3.2 million in pay-as-you-go funding will be required now as a result of the adoption of Option 2. This is $3.2 million in future impact fees that were originally part of the plan will now be earmarked under Option 2 to pay debt service. Therefore, the CHCCS would have to replenish this money with pay-as-you-go funding. Commissioner Gordon noted her previous objection to diverting $3.2 million in impact fees which were to be used for high school #3 construction. She did not think the Commissioners should have changed their signed agreement with the CHCCS. She also stated that it was important to move this project forward. Commissioner Foushee commended Chair Carey, Commissioner Jacobs, and staff for working with the school district staff and moving this project forward. A motion was made by Commissioner Foushee, seconded by Commissioner Halkiotis to approve a revised capital project ordinance to fund construction of Chapel Hill-Carrboro City Schools (CHCCS) High School #3. VOTE: UNANIMOUS