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35 <br />ORANGE COUNTY SCHOOLS <br />200 E. King Street Hillsborough, NC 27278 1 www.orangecountyfirst.com 1919.732.8126 <br />Memorandum <br />To: Bonnie Hammersley, County Manager <br />From: Dr. Todd Wirt, Superintendent <br />RE: Repurposing Funds for Orange High School Geothermal Project <br />Date: June 12, 2018 <br />As you are aware, Orange County Schools (OCS) included a geothermal project for Orange High School <br />(OHS) on the Orange County 2016 Education Bond. The project was in planning for over two years and <br />while design estimates throughout the process indicated the design was aligned with budget expectations, <br />on April 12, 2018 in a well- attended bid opening, it was apparent market conditions had eclipsed the <br />budget. The four bids submitted ranged from a low of $9,829,589 to a high of $12,366,000. In <br />collaboration with the low bidder, we were able to reduce this amount by $143,961 through a value <br />engineering exercise that would not adversely affect the outcome of the project. In addition, the Board <br />of Education chose to accept two alternates for a total of $88,332. The Board awarded the bid to a local <br />firm, Warren -Hay Mechanical Contractors, Inc. on May 7, 2018. The bid was awarded contingent upon <br />funding, which includes the $1,463,401 repurposed funds request currently before the Board of Orange <br />County Commissioners. <br />The expenses for the project are estimated as follows: <br />$ 650,000— Design Fees <br />$ 75,000 — Reimbursable expenses (includes installation of one test well) <br />$ 9,829,589 — Geothermal System Base Bid <br />$ 26,900 —Alt #1— Lacrosse Field drainage improvements following well field installation <br />61432 —Alt #2— Cultural Arts Wing New Ceilings and Light Fixtures <br />$10,642,921 —Total Estimated Project Cost <br />Funding for project: <br />$ 8,900,000 -2016 Education Bond Proceeds <br />$ 1,463,401— Requested Repurposed Funding <br />$ 500,000 —OCS Capital Fund Balance has been allocated to fund this project and to develop a 2% <br />contingency for change orders and additional owner expenses as may be required over <br />the 2 year project duration. <br />510,863.401* —Total Estimated Funding <br />*Allows approximately 2% contingency for additional owner responsibilities and change orders that may be necessary <br />as a result of hidden conditions in the 50 -year old facility. <br />