PUBLIC HEARING AGENDA REQUEST

Sponsor:

Board of Supervisors Meeting Date: 

Raymond E. Graham, Vice Chairman, Cedar Run District Supervisor

June 21, 2004

Staff Lead:

Department: 

Bryan Tippie, Director

Budget Office

Topic: 

A Resolution to Borrow $4,000,000 to Upgrade the HVAC Mechanical Systems at Liberty High School

Topic Description:

For the past several years, Liberty High School has had difficulties with air quality, including mold and temperature fluctuations.  Initially $1,061,341 was budgeted for this project. To date, $652,072 has been expended primarily for mold eradication.  However, the School Division has determined that the HVAC system at Liberty High School continues to be inadequate to provide the necessary air quality and climate control.  Setty & Associates, LTD was hired to provide recommendations for upgrades to the HVAC system. The School Board chose an alternative that would replace unit ventilators with new fan coil units having chilled water-cooling coils and hot water heating coils in addition to heat reclaim makeup air units. The cost of this alternative is $4,769,996. Mitigating this cost is $405,439 remaining from the original funding and $395,540 in a realignment of School Division Capital Improvement Program (CIP) projects for FY 2005. Additional funding required is $3,969,017. The School Board is requesting Board of Supervisorsí funding support for this project.

 

On May 20, 2004, the County Finance Committee reviewed this request. The Committee directed that the Liberty High School HVAC project be added to the next Board agenda for its consideration. Funding for the project was recommended to be supported by a transfer of the $4,000,000 initially appropriated for Warrenton/Taylor Middle Schools renovations. Due to recently identified significant increases in projected costs for all school construction projects, the School Board is reviewing other options.  It should be noted these appropriations currently have no actual dollar support. The $4,000,000 versus $3,969,017 is due to rounding for borrowing purposes.

 

In the interim, before the Board of Supervisors considers this request, the County Finance Director was directed by the Finance Committee to begin preliminary steps to set up the process to borrow the $4,000,000. 

 

The School Board is seeking a quick response to its funding request in order that, if approved, work can be accomplished during the summer months when students are out of school. 

 

 

Requested Action of the Board of Supervisors: 

Conduct a public hearing and consider adoption of the attached resolution.

 

 

Financial Impacts Analysis:

Borrowing $4,000,000 is expected to generate an increase of $400,000 in Debt Service for FY 2006.

Identify any other Departments, Organizations or Individuals that would be affected by this request:

 

Procurement

Finance

Budget

School Division

 

  

 

RESOLUTION

 

 A RESOLUTION TO BORROW $4,000,000 TO UPGRADE THE HVAC MECHANICAL SYSTEMS AT LIBERTY HIGH SCHOOL

 

WHEREAS, for several years the Fauquier County School Board has had air quality concerns, including mold, at Liberty High School; and

 

WHEREAS, the Fauquier County Board of Supervisors appropriated $1,061,341 in FY 2002 for air quality improvements at Liberty High School, of which $653,072 was spent on mold remediation; and

 

WHEREAS, the School Board has determined that the Liberty High School HVAC system continues to be inadequate to provide the necessary air quality and climate control; and

 

WHEREAS, the School Board contracted the firm of Setty and Associates, Ltd., to provide recommendations for mechanical systems upgrades to Liberty High School; and

 

WHEREAS, the School Board chose the recommended option to replace the unit ventilators with the new fan coil units having chilled water cooling coils, hot water heating coils, plus heat reclaim makeup air units, costing $4,769,996; and

 

WHEREAS, on March 8, 2004, the School Board adopted a resolution requesting the Board of Supervisors fund this project; and

 

WHEREAS, approximately $770,000 is available for this project from the residual of the initial funding for the HVAC project and from an adjustment to FY 2005 School Capital Improvements Plan projects; and

 

WHEREAS, $4,000,000 in unfunded (not supported by actual dollars) appropriation is in the Capital Improvements Plan projects for Warrenton and Taylor Middle Schools renovations; and 

 

WHEREAS, due to the significant increase in estimated costs for the Taylor and Warrenton Middle School renovations, the School Division has decided not to pursue those projects at this time; and 

 

WHEREAS, on May 20, 2004, the County Finance Committee considered this issue and recommended the transfer of $4,000,000 from the Taylor/Warrenton Middle Schools renovations projects to the Liberty High School HVAC project, and that the borrowing to support this action be taken at the earliest opportunity; and 

 

WHEREAS, on June 21, 2004, a public hearing was held on the proposed funding to solicit comments from Fauquier County citizens on borrowing $4,000,000 to upgrade the Liberty High School HVAC mechanical systems; now, therefore, be it

 

RESOLVED by the Fauquier County Board of Supervisors this 21st day of June 2004, That $4,000,000 is authorized to be transferred within the Capital Improvements Plan from the Warrenton /Taylor Middle Schools renovations projects to the Liberty High School HVAC project to support the upgrade option chosen by the School Board; and, be it

 

RESOLVED FURTHER, That the Finance Director is to initiate the process to borrow the necessary funds in a timely manner; and, be it

 

RESOLVED FINALLY, That the Fauquier County Board of Supervisors Board does hereby authorize the School Board to take those actions necessary, within the funding appropriated, to complete the HVAC mechanical upgrades at the earliest opportunity.