Agenda - 01-21-2025 ; 6-b - Project Management Options for School Construction

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2 encouraged both districts to expand their project management staff and fund them through the Supplemental Deferred Maintenance funds. The County has identified these existing balances as resources to implement the Woolpert recommendations and will work with the Districts to create a plan that is consistent with the principles of the Woolpert recommendations using those existing balances. BudgetUnspent Capital Funds New Funding Available Maintenance District Year End FY 2024 Chapel Hill-Carrboro City Schools $ 6,609,365.29 $ 16,224,511.00 $ 22,833,876.29 Orange County Schools $ 27,510,418.97 $ 16,060,560.00 $ 43,570,978.97 Total $ 34,119,784.26 $ 32,285,071.00 $ 66,404,855.26 Either district can also agree to allow the County to assume project management, contracting, and oversight responsibilities through an Interlocal Agreement (ILA). That could allow the County to provide additional control over the selection of the architect, project delivery method, processing change orders and ultimate project delivery. The County could not compel the districts to enter into these agreements, other than withholding bond funding. Therefore, the County would likely need to work collaboratively with the districts to codify any responsibility sharing and reporting tasks. Staff will present the three broad categories of Project Management structures for the upcoming construction projects, and how the Pay-Go funds could be used to make each method successful. The three options are: • County Controlled Project Management • School District led Project Management (status quo), and • Hybrid Shared Management These categories are only intended to apply to the Major Projects using Bond funds, as the districts already have project management capacity for their high priority needs projects. The County is able to ensure compliance with the principles of the Woolpert recommendations for High Priority Needs using the project based approval process identified in the School Capital Funding Policy. The Board will discuss how it wishes to proceed on these options and direct staff on how to engage with the school districts on this conversation. There are no decision points for this meeting for the Board. However, funds for design on school construction are planned to be authorized on July 1, 2025 as part of the Capital Investment Plan. FINANCIAL IMPACT: There is no immediate financial impact with this discussion. The proposed Bond Plan included setting aside $1 million each year for Project Management from the Pay-Go Funds, starting in Fiscal Year 2025-26. ALIGNMENT WITH STRATEGIC PLAN: This item supports: • GOAL 5: PUBLIC EDUCATION/LEARNING COMMUNITY OBJECTIVE 4. Improve learning environments by investing in facilities over a 10-year period that address repair, renovation, and educational adequacy needs.