AG 1996 09 16 - Laserfiche WebLink

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]CABARRUSCOUNTYI To: Frank Clifton County Manager From: Blair Bennett Finance Director Date: Subject: September 10, 1996 School Request Gene Jordan, Finance Director for Cabarrus County Schools, called me this week with a special request. The Cabarrus County School Board has inquired whether he could proceed with letting the contract for site preparation on Concord Middle School. Since this particular site may require intensive grading and preparation, an early start on the site work would be considered an important element in planning and scheduling the construction project. Under their plan the site contractor would not be paid for any construction in progress until about February 15, 1997, the date that Cabarrus County should receive bond proceed funds. I have concerns about this proposal since this construction project would pledge Cabarrus County funds that are yet to be realized. I do, however, believe that this project would certainly be enhanced by an early start with the site preparation construction. Our current schedule calls for the $49 million in school bonds to be sold January 22, 1997. Cabarrus County would receive those proceeds 3 weeks later, approximately February 11, 1997. This schedule has been tentatively approved by the State Treasurer's Office. The State Treasurer's Office normally conducts bond sales every Tuesday, so if our sale were pushed to a later date, it should still occur soon after the originally scheduled date. Having checked with our Bond Council, Steve Cordell, and with Fletcher Hartsell, the school could legally enter into this contract since we have a reimbursement agreement in place. My question to the Board of Commissions is, "Will Cabarrus County guarantee payment to the contractor on 2/15/97 if the bond sale is delayed?" Would you ascertain an official position on this matter from the Board of Commissioners? Finance Department P.O. Box 707 · Concord, NC 28026-0707 · (704) 788-8t04 3