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13 <br /> Successful project management will achieve several goals for the County and the Districts in <br /> implementing the bond plan. First, it will ensure that projects are achieved on time, in budget and <br /> in scope. Second, the County has identified several values in the Major Project Planning <br /> Addendum that should be prioritized. Project management staff would ensure that those values <br /> are carried through during the design and construction process into the final builds. Those two <br /> components make project management important regardless of the delivery method chosen. For <br /> example, in the Construction Manager at Risk delivery method, the construction manager <br /> assumes more of the risk in maintaining the budget and scope of the project, rather than the <br /> owner. Project management would still ensure that the building meets the district's long-term <br /> needs and the County's priorities. <br /> Under State Statute, the school districts are responsible for school construction, and as such are <br /> responsible for management, design, and construction oversight. Under the current model, the <br /> districts hire either staff or a firm to provide project management, both for the annual maintenance <br /> of existing facilities and for new construction. The school districts make all contracts, decisions <br /> and payments regarding school construction and then bill the County for reimbursement. The <br /> districts do not construct new facilities very frequently. The most recent new school was the major <br /> renovation of Chapel Hill High School from the 2016 bond. In addition, both districts had issues <br /> spending down their maintenance funding during the Covid-19 Pandemic. The County <br /> encouraged both districts to expand their project management staff and fund them through the <br /> Supplemental Deferred Maintenance funds. The County has identified these existing balances as <br /> resources to implement the Woolpert recommendations and will work with the Districts to create <br /> a plan that is consistent with the principles of the Woolpert recommendations using those existing <br /> balances. <br /> Unspent Capital Funds New Funding Available Maintenance <br /> District Year End FY 2024 Budget FY 2025 Funds for FY 2025 <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 /> Either district can also agree to allow the County to assume project management, contracting, <br /> and oversight responsibilities through an Interlocal Agreement (ILA). That could allow the County <br /> to provide additional control over the selection of the architect, project delivery method, <br /> processing change orders and ultimate project delivery. The County could not compel the districts <br /> to enter into these agreements, other than withholding bond funding. Therefore, the County would <br /> likely need to work collaboratively with the districts to codify any responsibility sharing and <br /> reporting tasks. <br /> Staff will present the three broad categories of Project Management structures for the upcoming <br /> construction projects, and how the Pay-Go funds could be used to make each method successful. <br /> The three options are: <br /> • County Controlled Project Management <br /> • School District led Project Management (status quo), and <br /> • Hybrid Shared Management <br />