BC 2009 07 20 Regular - Laserfiche WebLink

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July 20, 2009 (Regular Meeting) Page 1509 R.J. FISHER CONSTRUCTION COMPANY $295,000.00 In response to a question from Commissioner Privette, Kyle Bilafer, General Services Manager, described the renovations that will take place. John Day, County Manger, explained that it has been proposed that the former location of the Sheriff's Office and jail will be demolished to provide temporary surface parking while a parking deck is constructed, all in preparation for courthouse expansion. He stated the County's Capital Improvements Plan (CI P) provides for the construction of a parking deck within five (5) years. A general discussion ensued amongst the Board further describing the renovations that will take place. Commissioner Carruth MOVED to approve the bid award and authorize the County Manager to execute the contract between Cabarrus County and Ike's Construction in the amount of $277,940.00, subject to revision by the County Attorney. Vice Chairman Mynatt seconded the motion. Discussion continued. Mr. Day reported that additional information regarding options for renovations or construction of a new courthouse will be provided to the Board at its next meeting. Chairman White further explained that Moseley Architects presented options to the Board at its agenda work session on July 6, 2009 regarding possible renovation/construction options for the Courthouse. He also described the lack of space in the current courthouse. The MOTION and Poole voting against. 079 carried with Vice Chairman Mynatt and Commissioners Carruth for, and Chairman White and Commissioner Privette voting Pam Dubois, Deputy County Manager, reported on June 23, 2009, Certificates of Participation (COPS) were sold for the construction of two elementary schools, two middle schools, and a wing addition to A. L. Brown High School. She stated a budget amendment is needed to establish the budget so that funds can be expended once the figures are finalized. She also reported that information regarding COPS and General Obligation (GO) bonds has been provided to the Board. In response to a question from Commissioner Privette, Ms. Dubois explained that typically when COPS and GO Bonds are issued within the same time period, there's a 20-basis point difference. She stated that due to the unusual economy, on the day the COPS were sold, there was a 97.9-basis point difference between COPS and GO bonds; if the principle and interest payments were compared between the two, the difference would have been $5.9 million. Ms. Dubois further explained that COPS were selected for this project to expedite the construction of the facilities, and if GO bonds would have been used for this project, the Board would not have voted on the project until November 2010, and would not have been able to take advantage of the low construction prices due to the economy. She further stated that the County saved between $20 million and $30 million in construction costs on these projects. She then provided some historical information regarding COPS for reference. Commissioner Privette commented that the North Carolina Constitution states that a government unit has to get approval of the voters before it can borrow money. He went on to say that COPS are used to bypass that constitutional stipulation. In response to questions from Chairman White, Ms. Dubois reported that the County is not pledging its full faith and credit to issue this debt, and the County is not pledging its taxing authority, which requires a vote by the citizens of the County. Commissioner Carruth noted that if the County were to have a referendum regarding this during the November 2009 election, in which there are only two political contests in the County, every poll would have to be opened, and the cost of that election would be borne by the taxpayers.