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Agenda 05-07-24; 7-a - Discussion on Statutes and Policies Regarding Project-Based School Capital Funding
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Agenda 05-07-24; 7-a - Discussion on Statutes and Policies Regarding Project-Based School Capital Funding
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BOCC
Date
5/7/2024
Meeting Type
Business
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Agenda
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7-a
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27 <br /> 1(0 <br /> ■ General Statute 143-128 (al) includes (1) Separate Prime Bidding, <br /> (2) Single Prime Bidding, and (3) Dual Bidding <br /> ■ General Statute 143-64.31 provides for Construction Management <br /> at Risk <br /> ■ General Statute 143-135.26(9) provides for alternative contracting <br /> methods <br /> ® Senate Bill 2009 (Senate Law 2006-232) provides for capital leases <br /> of school buildings and school facilities <br /> Both the Construction Manager at Risk and the capital lease options allow <br /> school districts flexibility in setting actual project cost. Examples of <br /> potential benefits associated with these options include: <br /> ■ Contract Negotiation - School Boards and staffs become integral <br /> partners within the design build teams that includes the architect <br /> and the contractor. This team develops a maximum project cost, in <br /> a transparent manner, throughout all areas of the design and <br /> development process thereby controlling these costs within the <br /> design phase. <br /> ■ Flexibility - While school systems had the statutory authority to <br /> lease facilities in the past, with the ratification of Senate Bill 2009 in <br /> 2006, through public-private partnerships between Boards of <br /> Education and contractors, school districts now have opportunities <br /> for to enter into "build-to-suit" contracts. School districts have <br /> opportunities to identify where the district needs schools, and to <br /> provide design, programming and construction specifications to the <br /> developer. <br /> ■ Future Maintenance of Facility — In accordance with Senate Bill <br /> 2009, as part of contract negotiation, responsibility for future facility <br /> maintenance/repairs and energy usage guarantees can be <br /> assigned to the developer and not the school system. <br /> ■ Ownership — Per Senate Bill 2009, transfer of ownership of the <br /> leased property may occur at the end of the lease term or <br /> ownership may stay with the developer. <br /> ■ Time Savings — Contract negotiations offered through public-private <br /> partnerships can potentially be conducted more quickly than more <br /> traditional public methods. While entities may not realize major <br /> cost savings in building costs, there may be savings attributed to <br /> beating inflation. <br /> 14 <br />
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