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March 12, 2014 (Special Meeting)
<br />Glenn Center Elevator Towers. ADA & Electrical
<br />Coltrane Webb Elementary School Renovations
<br />Central Cabarrus High School Cafeteria, Auditorium &
<br />Classroom Spaces
<br />Total for all Projects
<br />*Cost estimates provided by Len Witke
<br />Page 1946
<br />$1,800,000 $200,000 100
<br />$7,242,000 $1,538,000 674
<br />$8,687,000 $1,077,000 1513
<br />$52,095,000 $7,905,000
<br />The following members of the Cabarrus County Schools Board of Education
<br />were also in attendance: Barry Shoemaker, Vice Chairman; Carolyn Carpenter,
<br />David Harrison, Jeff Phillips, Lynn Shue and Rob Walter. Len Witke,
<br />Executive Director for Facilities Management and Kelly Kluttz, CCS Chief
<br />Finance Officer, were also present.
<br />A lengthy discussion ensued. During discussion, Chairman Kiger, Vice
<br />Chairman Shoemaker and Mr. Witke responded to questions from the Board.
<br />Issues addressed included: the cost per school, as it relates to capacity;
<br />site conditions at Mount Pleasant Middle School; the bond referendum; the FY
<br />2015 budget; the bidding process; estimated cost of proposed schools; etc.
<br />Recess of Meeting
<br />p.m.
<br />The Board took a short break at 6:38 p.m. The meeting resumed at 6:59
<br />Once the meeting resumed, Chairman Poole requested a point of personal
<br />privilege to gain clarification on a comment made earlier in the meeting
<br />regarding the bond referendum. She also inquired about the possibility of
<br />commissioner votes being determined outside of the meetings. She expressed
<br />concerns regarding misinformation, the budget process, excessive demands on
<br />staff, etc.
<br />A discussion ensued.
<br />BOO - Commissioner Discussion Item
<br />Commissioner Oesterreich presented the following information relating
<br />to the benefits of Plan C with short -term financing:
<br />1. Save Tens Of Millions Of Dollars Over Bond Financin
<br />On three projects alone, KCS Middle School, Royal Oaks Elementary
<br />School, and RCCC Advanced Technology Center, we would save
<br />approximately $21.5 million in financing charges.
<br />Project Total Payback /JAO Total Payback /Bond- Interest
<br />Plan 20 yr -4.75% int. Savings /JAO Plan
<br />KCS Middle $22,800,000 $34,300,000 $11,500,000
<br />RCCC Adv. Tech ,$19,600,000 $29,600,000 $10,000,000
<br />Royal Oaks
<br />Total Savings: $21,500,000
<br />2. Fund Every Major Priority Of RCCC /CCS /KCS And Have $22 Million
<br />To Fund Smaller Priority /Maintenance Items Through 2020
<br />Through this plan, within two years, we would fund every major
<br />priority of all three education systems, including the new CCS
<br />elementary school, Mount Pleasant Middle School, Royal Oaks
<br />replacement school, KCS Middle School, RCCC cosmetology school,
<br />and the RCCC Advanced Technology Center. In addition to funding
<br />all of those facilities /programs, we would have approximately $22
<br />million through 2020 to fund additional maintenance or lower
<br />priority facilities. $9.4 million of that $22 million would be
<br />available in the first year for use.
<br />3. The Second 5 Years Of This Plan Provides Almost $100 Million
<br />Cash To Fund Capital /Maintenance Needs
<br />Through 2020, all of the above - described schools will be funded
<br />and paid for and we will have $22 million in cash for additional
<br />needs. Under this plan, from 2021 through 2025, an additional
<br />$97.5 million is available to fund new facilities /maintain our
<br />existing facilities.
<br />4. By 2020, Our Debt Would Be Reduced From $469 Million To $196
<br />M;11,.,n
<br />At the start of the current fiscal year, our total debt was $469
<br />million. By 2020, this will be reduced by 58.2% to $196 million
<br />by implementing Plan C with the short term borrowing plan.
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