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<br />additional time allows CHCCS to determine a definitive funding plan for both bond projects. <br />County staff would then present a revised funding application and recommendation of issuing <br />remaining first tranche bonds for CHCCS in March/April 2018 to the Local Government <br />Commission. <br /> <br />The CHCCS Administration is presenting the following two options: <br /> <br />Option 1: Proceed with the Lincoln Center Redevelopment project <br />Sources <br />Bond Proceeds $28,845,900 <br />CHCCS Fund Balance $5,576,000 <br />CIP Reprioritization $2,400,00 <br />Total $36,821,900 <br />Uses <br />Construction $32,771,900 A <br />Professional Fees $1,900,000 <br />Furniture/Equipment $1,000,000 <br />Contingency-3.5% $1,150,000 <br />Total $36,821,900 <br />A) CHCCS revised construction estimate includes deferment of gymnasium <br />improvements, $1.2 million in Value Engineering reductions, $500,000 decrease due <br />to a projected Town of Chapel Hill reimbursement for off-site work, and $97,000 <br />increase for energy management controls. <br /> <br />Option 2: Defer decision on Lincoln Center Redevelopment project until Chapel Hill High <br />School construction bids are opened in March/April 2018 timeframe <br /> <br />Benefits Challenges <br />Provides certainty regarding cost of both <br />projects and aligns with the Local Government <br />Commission policy for bond financing projects <br />Proceeding with only Chapel Hill High School <br />means centralizing Pre-K and expansion of <br />Phoenix Academy not realized <br /> <br /> <br />FINANCIAL IMPACT: The County’s Debt Affordability and Operating Fund does not have any <br />existing sources of funds above the $72.1 million allocated for these two CHCCS projects. <br />Additionally, the annual loss of approximately $3 million in Impact Fees further exacerbates this <br />funding issue. The Manager recommends that the BOCC defer any final decision until receiving <br />the County’s Five Year Financial Forecast at the January 2018 BOCC Retreat. <br /> <br />SOCIAL JUSTICE IMPACT: There is no Orange County Social Justice Goal impact associated <br />with this item. <br /> <br />RECOMMENDATION(S): The Manager recommends that the Board receive an update from <br />Chapel Hill-Carrboro City Schools regarding its General Obligation bond funded capital projects <br />and provide feedback to CHCCS staff. <br /> <br />21