Agenda - 09-06-1994-X-A - Laserfiche WebLink

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1 ORANGE COUNTY BOARD OF COMMISSIONERS Action Agenda Item No X-A ACTION AGENDA ITEM ABSTRACT Meeting Date: September 6, 1994 SUBJECT: Chapel Hill/Carrboro School District Report - Plans for New Elementary School DEPARTMENT: County Manager PUBLIC HEARING YES NO x ATTACHMENT(S) : INFORMATION CONTACT Manager' s Office ext. 2300 Report from the Chapel Hill/ TELEPHONE NUMBER Carrboro City Schools on Hillsborough 732-8181 Proposed Elementary School Chapel Hill 968-4501 8/31/94 Memo from Finance Director Mebane 227-2031 Durham 688-7331 PURPOSE: To receive a report from the Chapel Hill/Carrboro City Schools on the proposed new Elementary School on the McDougle Middle School site and to outline the process for securing installment purchase financing for this school. BACKGROUND: During the 1994 short session of the Legislature, the General Assembly authorized Orange County to secure installment financing for new school construction. The Chapel Hill-Carrboro City School System is currently 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. 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. Although private placement financing issuance cost is lower, the maximum amount the County can borrow using this type financing is $10 million. 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.