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29 <br /> Cost Considerations <br /> As a starting point for this update, in setting the budget for future school construction <br /> it is important that the building cost per square foot reflect historical costs of <br /> constructing new schools (both locally and statewide) as well as consider the current <br /> construction market. A School Capital Review Team consisting of County staff and <br /> representatives from each school district, would meet annually, in November, to <br /> review construction and land related costs for actual school projects that have <br /> occurred within the past year. Based on actual expenditures related to school <br /> construction, the Review Team would recommend updated school construction <br /> standard costs, which include all of the project components, for the respective <br /> School Boards to review and for the Board of County Commissioners to approve. In <br /> addition to school construction costs, the Review Team would also review the ten- <br /> year Capital Investment Plan (CIP) process and pay-as-you-go funding allocations <br /> for the upcoming long-range capital plan. The Review Team would take the <br /> Construction Price Index (CPI) and benchmarks set by national education facilities <br /> planners into consideration in recommending updated construction standards. <br /> With historical practices, construction project budgets were established and <br /> broadcast at the onset of project planning thereby "pre-setting" the budget for the <br /> market to react to with the ultimate result of the construction community matching or <br /> exceeding the budget. However, with future projects, the approach would vary <br /> somewhat by not "pre-setting" the budget ahead of the bidding process. A more <br /> conservative approach would be for the School Capital Review Team to create a tool <br /> that analyzes historical costs of like projects (elementary to elementary, middle to <br /> middle, etc.) across all project components. Appendix 5 offers an example of the <br /> template that would serve as an analytical tool for developing construction 'project <br /> ,budgets. Note to'read6rs,—,Appendix.5 is pending finalization byCo 'ty and School <br /> , un <br /> staffs to rn I ost recent ,school construction costs,, related, t6., Chapel Hill <br /> Carrboro City Schools: Elementary:.41.0. 'as ap proved bV; Board CouQtV <br /> ............ ..................... ........... ...................... Board. ...... County <br /> ..... <br /> Commissioners on,March .11 2007.. This tool allows for a comparable cost analysis <br /> without establishing any advantages or expectations to the marketplace. <br /> The following section defines individual construction project components, and <br /> Appendix 6 provides the information in a chart format. Staff plans to develop <br /> construction project budgets and track actual expenditures in accordance with the <br /> project components outlined in the chart. At the end of the project, staff will prepare <br /> a final reconciliation and budget variance analysis for Commissioners and School <br /> Boards to review. <br /> a) Site Acquisition <br /> Site acquisition costs include costs associated with acquiring a site. Examples of <br /> these costs include the actual purchase price of the property along with costs of <br /> property survey, appraisals and deed recordings, testing to include soils, cultural, <br /> 16 <br />