GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1997

H	1 

HOUSE BILL 1558

Short Title:  Sch. Bldg. Flexibility/3 Counties.	(Local)

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Sponsors: Representatives Daughtry; Creech, Hackney, Insko, and Owens.

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Referred to:  Education.

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May 28, 1998

A BILL TO BE ENTITLED
AN ACT TO ALLOW THE BOARDS OF EDUCATION IN THE COUNTIES OF JOHNSTON, ORANGE, AND PITT TO USE ALTERNATIVE DELIVERY SYSTEMS FOR THE CONSTRUCTION OF PUBLIC SCHOOL FACILITIES.
Whereas, education is the energy that drives economic growth and development; and
Whereas, facilities are an integral part of the educational equation and are vital to the educational learning process; and
Whereas, North Carolina is faced with a crisis in providing adequate public school facilities, estimated to exceed $6,000,000,000 over five years; and
Whereas, local government is faced with serious budget challenges due to increased demands for public service, shrinking financial resources, and shifting budget priorities; and
Whereas, bold and creative leadership is required by public officials to meet the challenge of "adequate school facilities for every learner in North Carolina"; and
Whereas, the counties of Johnston, Orange, and Pitt are committed to creativity in the development and delivery of public school facilities and believe that the public investment in capital assets should be properly managed; and
Whereas, the boards of education in the counties of Johnston, Orange, and Pitt have agreed to join together in a unique creative and collaborative venture of sharing educational programming and facilities technology to their mutual benefit; and
Whereas, the boards of education and the boards of commissioners in these counties have joined together in a cooperative effort to deliver schools that are educationally effective and economically efficient; and
Whereas, the General Assembly reaffirms its commitment to enhance public education, to encourage innovative development of school facilities, and to explore alternative delivery systems; Now, therefore,
The General Assembly of North Carolina enacts:
Section 1.  Notwithstanding the provisions of any law or administrative rule to the contrary, the boards of education in the counties of Johnston, Orange, and Pitt may jointly develop and implement a five-year pilot program for the construction of public school facilities.  These counties may use the following facility delivery systems:
(1)	Qualifications-based Contractor Selection Process. – The contractor selection criteria may be based on organizational information, financial status and bonding capacity, experience of office and field personnel, experience on school projects, experience with the separate prime contract delivery system, cooperation and coordination with other contractors, quality, cost, and timely performance on completed school projects, references of public owners, and other factors deemed appropriate.  Based on the qualifications criteria, each board of education may select, in its sole discretion, a minimum of three of the best-qualified contractors in each of the categories of work to be bid.
(2)	Separate-Prime Contract Delivery System. – After selection of contractors as provided in subdivision (1) of this section, each board of education may choose to award contracts based on the separate-prime contract delivery system.  If the board chooses to use the separate-prime contract delivery system, the provisions of G.S. 143-128(a) and G.S 143-129 shall apply.
(3)	Single-Prime Contract Delivery System. – After selection of contractors as provided in subdivision (1) of this section, each board of education may choose to award contracts based on the single-prime contract delivery system.  If the board chooses to use the single-prime contract delivery system, the provisions of G.S. 143-129 shall apply.  However, the mechanical, electrical, and plumbing construction, as specified, shall be publicly bid at least one day prior to the general construction, and each single-prime bidder shall incorporate the bids of and agree to contract with the successful mechanical, electrical, and plumbing contractors.
(4)	Professional Construction Management Delivery System. – Each board of education shall select the best qualified designer in accordance with G.S. 143-64.31.  The designer shall, for a negotiated fee based on scope of work, be liable for and responsible to the board of education for the delivery and management of all project design services.  The board of education shall select the best qualified contractor (hereafter called construction manager) in accordance with subdivision (1) of this section who shall, for a negotiated fee based on scope of work, be liable and responsible to the board for the delivery and management of all project construction services.  The designer and the construction manager, working together as a professional team, shall use their unique skills and experiences to design, publicly bid, and deliver a school facility that serves the best interest of the board of education and the public.
		The designer and construction manager shall jointly select a minimum of three mechanical, electrical, plumbing, general, or other specialty contractors, in accordance with subdivision (1) of this section and shall publicly bid the specified work packages in accordance with the provisions of G.S. 143-129.  The lowest bids of the successful subcontractors shall be combined into a lump-sum contract with the selected construction manager who shall deliver and manage all construction services for the negotiated fee.
(5)	Design-Build Delivery System. – Each board of education may accept proposals and award a contract to deliver school facilities based on single liability for the design and construction services for a guaranteed maximum price.  If the board chooses the design-build delivery system, the design-build teams selected to submit proposals shall be selected based on criteria similar to and consistent with the intent of G.S. 143-64.31 and subdivision (1) of this section.
(6)	Design/Build/Finance Delivery System. – The boards of commissioners in the counties of Johnston, Orange, or Pitt may accept proposals and award a contract to deliver school facilities on a design/build/finance basis if (i) the respective boards of education finds that the facility meets the educational program needs of the local school administrative unit and (ii) the financing of the school project is approved by the North Carolina Local Government Commission.
		If the boards of commissioners, in agreement with the board of education, choose the design/build/finance delivery system, the design-build teams selected to submit proposals shall be selected based on criteria similar and consistent with the intent of G.S. 143-64.31 and subdivision (1) of this section.
Section 2.  Consistent with the authority to develop and implement a five-year pilot program for the delivery of public school facilities, the boards of education in Johnston, Orange, and Pitt Counties shall jointly develop a common set of guidelines and procedures to administer and evaluate the program.  During the development and implementation of this program, the boards of education shall seek input from and share information with appropriate education, industry, and government groups.
Section 3.  The boards of education in the counties of Johnston, Orange, and Pitt shall present a joint report annually to the Joint Legislative Committee on Governmental Operations on the implementation of this act.
Section 4.  This act is effective when it becomes law and expires July 1, 2003.