Agenda - 11-15-2011 - 8a - Laserfiche WebLink

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5 At the October 6, 2011 Board meeting, the Board's consensus was that the schedule for Elementary School #11 should be accelerated to begin construction as soon as possible to open the school for the 2013 -14 year. The Town of Chapel Hill has approved the required Special Use Permit (SUP). Applications are now being reviewed for the Zoning Compliance Permit (ZCP) which is necessary for a building permit to be issued. The ZCP is expected in February. In the 2011 -16 Orange County Capital Investment Plan (CIP), $500,000 is included in FY 2011- 12 for the abatement and demolition phases of the project. Additionally, the County appropriated an additional $663,000 of fund balance in their FY 2011 -12 General Annual Operating Budget to complete this aspect of work if needed.. Abatement work is underway and expected to finish by Nov. 30. A request has been made to the Town of Chapel Hill to approve demolition work prior to finalizing the ZCP. If approved, demolition can start in January and be completed in March. By completing demolition during this period, valuable schedule time would be gained for construction that starts in March and must be finished for the opening of school in August 2013. While funding and commitments exist to complete the abatement and deconstruction phases of work, a financing plan is needed to start construction in March. Following the last Board meeting, district and county administration met to discuss fund balance options. County management has stated that they will propose to the County Commissioners that they sell the project bonds in April 2011. It was suggested that the district utilize its fund balance initially up to a maximum of $2.1 million dollars. At that time or sooner, the County would borrow the necessary funds to reimburse the district's Fund Balance and pay for the completion of the project. If borrowing was delayed, County Fund balance would then cover the interim period. The attached schedule and funding chart illustrates monthly activities and financial needs through June. Approximately $3.1 million is needed through June if construction starts in March. It is suggested that $2.1 million be used from the district's Fund Balance and $1 million be used from the County's Fund Balance if necessary. It is understood that when the County secures total project funds, Fund Balance accounts would immediately be reimbursed. Both the Board and County resolutions will include this reimbursement provision. PERSONNEL IMPACT: None RECOMMENDATION: I Approval of the Resolution RESOLUTION: Be it, therefore, resolved that the Board of Education authorizes a fund balance appropriation for Elementary # 11 in an amount up to $2.1 million to accelerate the project, contingent upon the Board of Orange County Commissioners commiting to fully funding the project and agreeing to reimburse the district's $2.1 million fund balance appropriation prior to July 1, 2012 through a BOCC resolution at their November 15, 2011 meeting.