Agenda - 09-20-1994 - Laserfiche WebLink

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1 ORANGE COUNTY BOARD OF COMMISSIONERS Action Agenda Item No x(-13 ACTION AGENDA ITEM ABSTRACT Meeting Date: September 20, 1994 SUBJECT: Chapel Hill/Carrboro School District - Plans for New Elementary School DEPARTMENT: County Manager PUBLIC HEARING YES NO x ATTACHMENT(S) : INFORMATION CONTACT Manager' s Office ext. 2300 CHCCS Information on Elementary TELEPHONE NUMBER School Plans (under separate cover) Hillsborough 732-8181 8/30/94 CHCCS Report (sent with 9/6/94 Chapel Hill 968-4501 agenda) Mebane 227-2031 Draft 9/22/94 CHCCS Resolution Durham 688-7331 Draft Policy on School Startup Costs PURPOSE: To consider the amount of financing the Board of Commissioners will seek for the proposed Chapel Hill/Carrboro City Schools elementary school. BACKGROUND: At the September 6, 1994 meeting, the Board of Commissioners received a report from the Chapel Hill-Carrboro City School System concerning planning for a new 624 student elementary school to be located adjacent to the McDougle Middle School. The System would like to secure construction bids for this project by November 1994, with completion of the facility scheduled for the summer. of 1996, for opening for the 1996-97 school year. During the 1994 short session of the Legislature, the General Assembly authorized Orange County to secure installment financing for new school construction. The financing options for installment purchase include certificates of participation (COPS) or private placement. The procedures required by the Local Government Commission for both types of financing are similar, although COPS can take up to one additional month to receive the funds, and issuance costs are higher than private placements. Private placement financing issuance cost is lower, but the County is limited to a maximum amount of $10 million of tax-exempt debt using this financing mechanism. Once the Board of Commissioners determines the amount to be borrowed for the construction of this school, securing the financing will take approximately two months. The first step will be for the Board to adopt a resolution authorizing staff to proceed with the financing request for proposal (RFP) process. Staff will then begin the process with the Local Government Commission. In days 30 to 60 of the process, the formal application for financing will be filed with the Local Government Commission. The Board will need to hold a public hearing on this financing plan. In addition, the real property must be conveyed to the County and the agreement between the County and School District finalized. County staff will review all financing proposals and make a recommendation to the Board of Commissioners.