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1 <br /> ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: November 20, 2017 <br /> Action Agenda <br /> Item No. 6-a <br /> SUBJECT: Chapel Hill-Carrboro City Schools Bond Project Update <br /> DEPARTMENT: County Manager <br /> ATTACHMENT(S): INFORMATION CONTACT: <br /> Attachment 1: November 2, 2017 Bonnie Hammersley, 919-245-2300 <br /> CHCCS Board of Gary Donaldson, 919-245-2453 <br /> Education Abstract Paul Laughton, 919-245-2152 <br /> Attachment 2: March 21, 2017 County Dr. Todd LoFrese, 919-967-8211 <br /> Abstract <br /> PURPOSE: To receive an update from the Chapel Hill-Carrboro City Schools ("CHCCS") <br /> regarding its General Obligation bond referendum funded capital projects and provide feedback <br /> to CHCCS. <br /> BACKGROUND: On November 8, 2016 voters approved $120 million in School Bonds of which <br /> the CHCCS bond allocation is $72.1 million based on Average Daily Membership. The CHCCS <br /> allocation was earmarked for two projects; 1) Lincoln Center and 2) Chapel Hill High School. <br /> The Lincoln Center project was originally estimated at $21 million and Chapel Hill High School <br /> at $51 million. <br /> On March 21, 2017, the CHCCS staff updated the Lincoln Center estimate to $25 million and <br /> decreased the Chapel Hill High School project from $51 million to $47.1 million (Attachment 2). <br /> The updated Lincoln Center project budget of $25 million included both design and construction <br /> estimates. The CHCCS staff attributed the Lincoln Center increase to construction cost <br /> increases of 5% annually. <br /> On October 17, 2017, CHCCS staff updated the Board of Orange County Commissioners <br /> (BOCC) regarding its September 2017 bids for the Lincoln Center project. That CHCCS update <br /> indicated four base bids and the lowest responsive and responsible bid was significantly over <br /> budget. The four base bids for the Lincoln Center ranged from $35.3 million to $35.8 million <br /> which exceeds the County's CIP Funding and Debt Affordability parameters. <br /> Following the CHCCS staff update on November 2, 2017, the BOCC approved an initial CHCCS <br /> bond amount of $5 million to reimburse CHCCS for design expenditures to date on the Lincoln <br /> Center and Chapel Hill High School and meet remaining cash flow requirements for design <br /> expenditures through the Chapel Hill High School bid openings in April/May 2018. This <br />