ORD-2018-025 Fiscal Year 2017-18 Budget Amendment #10

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Attachment 4 35 �J f� /iii,,,; 299 E. King Street Hillsborough, NC 27278 I www.orangecountyfirst.com 1 919,732,8126 Memorandum To: Bonnie Hammersley, County Manager From: Dr. Todd Wirt, Superintendent RE: Repurposing Funds for Orange High School Geothermal Project Date: June 12, 2018 As you are aware, Orange County Schools (OCS) included a geothermal project for Orange High School (OHS) on the Orange County 2016 Education Bond. The project was in planning for over two years and while design estimates throughout the process indicated the design was aligned with budget expectations, on April 12, 2018 in a well- attended bid opening, it was apparent market conditions had eclipsed the budget. The four bids submitted ranged from a low of $9,829,589 to a high of $12,366,000. In collaboration with the low bidder, we were able to reduce this amount by $143,961 through a value engineering exercise that would not adversely affect the outcome of the project. In addition, the Board of Education chose to accept two alternates for a total of $88,332. The Board awarded the bid to a local firm, Warren -Hay Mechanical Contractors, Inc. on May 7, 2018. The bid was awarded contingent upon funding, which includes the $1,463,401 repurposed funds request currently before the Board of Orange County Commissioners. The expenses for the project are estimated as follows: $ 650,000— Design Fees $ 75,000— Reimbursable expenses (includes installation of one test well) $ 9,829,589— Geothermal System Base Bid $ 26,900 —Alt #1— Lacrosse Field drainage improvements following well field installation $ 61,432 —Alt #2— Cultural Arts Wing New Ceilings and Light Fixtures 10.642.921 —Total Estimated Project Cost Funding for project: $ 8,900,000 -2016 Education Bond Proceeds $ 1,463,401— Requested Repurposed Funding $ 500,000 —OCS Capital Fund Balance has been allocated to fund this project and to develop a 2% contingency for change orders and additional owner expenses as may be required over the 2 year project duration. $10,863,401* —Total Estimated Funding *Allows approximately 2% contingency for additional owner responsibilities and change orders that may be necessary as a result of hidden conditions in the 50 -year old facility.