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13 <br /> 1 Successful project management will achieve several goals for the County and the Districts in <br /> 2 implementing the bond plan. First, it will ensure that projects are achieved on time, in budget and <br /> 3 in scope. Second, the County has identified several values in the Major Project Planning <br /> 4 Addendum that should be prioritized. Project management staff would ensure that those values <br /> 5 are carried through during the design and construction process into the final builds. Those two <br /> 6 components make project management important regardless of the delivery method chosen. For <br /> 7 example, in the Construction Manager at Risk delivery method, the construction manager <br /> 8 assumes more of the risk in maintaining the budget and scope of the project, rather than the <br /> 9 owner. Project management would still ensure that the building meets the district's long-term <br /> 10 needs and the County's priorities. <br /> 11 <br /> 12 Under State Statute, the school districts are responsible for school construction, and as such are <br /> 13 responsible for management, design, and construction oversight. Under the current model, the <br /> 14 districts hire either staff or a firm to provide project management, both for the annual maintenance <br /> 15 of existing facilities and for new construction. The school districts make all contracts, decisions <br /> 16 and payments regarding school construction and then bill the County for reimbursement. The <br /> 17 districts do not construct new facilities very frequently. The most recent new school was the major <br /> 18 renovation of Chapel Hill High School from the 2016 bond. In addition, both districts had issues <br /> 19 spending down their maintenance funding during the Covid-19 Pandemic. The County <br /> 20 encouraged both districts to expand their project management staff and fund them through the <br /> 21 Supplemental Deferred Maintenance funds. The County has identified these existing balances as <br /> 22 resources to implement the Woolpert recommendations and will work with the Districts to create <br /> 23 a plan that is consistent with the principles of the Woolpert recommendations using those existing <br /> 24 balances. <br /> 25 <br /> Available <br /> Unspent Capital Funds New Funding Maintenance Funds for <br /> Chapel Hill-Carrboro City $ <br /> Schools $ 6,609,365.29 $ 16,224,511.00 22,833,876.29 <br /> Orange County Schools $ 27,510,418.97 $ 16,060,560.00 43,570,978.97 <br /> Total $ 34,119,784.26 32,285,071.00 66,404,855.26 <br /> 26 <br /> 27 Either district can also agree to allow the County to assume project management, contracting, <br /> 28 and oversight responsibilities through an Interlocal Agreement (ILA). That could allow the County <br /> 29 to provide additional control over the selection of the architect, project delivery method, <br /> 30 processing change orders and ultimate project delivery. The County could not compel the districts <br /> 31 to enter into these agreements, other than withholding bond funding.Therefore, the County would <br /> 32 likely need to work collaboratively with the districts to codify any responsibility sharing and <br /> 33 reporting tasks. <br /> 34 <br /> 35 Staff will present the three broad categories of Project Management structures for the upcoming <br /> 36 construction projects, and how the Pay-Go funds could be used to make each method successful. <br /> 37 The three options are: <br /> 38 • County Controlled Project Management <br /> 39 • School District led Project Management (status quo), and <br /> 40 • Hybrid Shared Management <br /> 41 <br />