Agenda - 12-04-2017 - 8-a - Minutes

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9 1 Chair Dorosin said he understands the parameters, but asked if the December 26 2 deadline only allows for the plan as it currently exists; can changes be made; or would entirely 3 new bids be required. 4 Todd LoFrese said CHCCS could negotiate this with the contractor. He said renting 5 space for administration would require 30,000 square feet x $20/foot = $600,000, etc. 6 Commissioner Rich said the project came in 40% over budget, and asked if the project 7 can be redesigned to live more within their means. 8 Todd LoFrese said a re-design would be costly and time consuming, and waste the 9 efforts made to this point. He said construction costs will only continue to increase, and 10 redesign is not a viable option or close to their vision. 11 Commissioner Marcoplos asked if anything is known about the rate of increased costs. 12 Todd LoFrese said there are a variety of issues: slow labor market, disasters elsewhere 13 attracting contractors, etc. 14 Commissioner Jacobs asked to return to the following slide: 15 16 District Funding Assistance 17 2016-17 Unassigned Fund Balance $7,180,587 18 Reduction for Capital Projects $3,500,000 19 Balance of Unassigned Fund Balance (5.03%) $3,680,587 20 CIP Additional 5 year funding $2,400,000 21 22 Recurring Capital Fund Balance: 23 2016-17 Unassigned Fund Balance $976,000 24 2017-18 Unobligated Balance of Non-recurring $1.2M $700,000 25 26 Fund 6 Cash Balances (unobligated): $400,000 27 GRAND TOTAL FOR CAPITAL PROJECTS $7,976,000 28 29 Commissioner Jacobs referred to the unassigned fund balance, and asked if this 30 includes the fund balance that CHCCS are required to hold, according to its agreement with 31 Orange County. 32 Todd LoFrese said the target is 5.5%, so this number is below target at 5.03%. 33 Commissioner Jacobs asked if the CIP Additional 5 year Funding could be clarified. 34 Todd LoFrese said the Board of County Commissioners made a change to bond 35 distribution from $125 million to $120 million for schools, and the County committed to dividing 36 $1 million between the two school systems for 5 years. He said one year has been spent on 37 design, and there has been discussion with Orange County Schools (OCS) on a joint 38 transportation center, which is likely further out in OCS's timing plan and ultimately too costly. 39 He said the remaining 4 years of that distribution would be earmarked and steered towards the 40 capital needs. 41 Commissioner Jacobs asked if CHCCS would do that over the next 4 years. 42 Todd LoFrese said yes. 43 Commissioner Rich referred to value engineering, and asked if it was possible to value 44 engineer one's way out of a project that is 40% over budget. She referred to the Eubanks Road 45 recycling project, which had to go back to the drawing board due to being over budget. She 46 said it was revised and completed in a manner in which the County could stay within its means. 47 She said this likely needs to happen with this project. 48 Todd LoFrese said reducing the Lincoln center by $10 million would lop off a huge piece 49 of the project, which would result in the project being scrapped and needing to start over. He 50 said the pre-K project addresses the issue of capacity.