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July 27, 2009 (Special Joint Meeting) Page 1515
<br />The Board of Commissioners for the County of Cabarrus held a special
<br />joint meeting with the Cabarrus County Board of Education in the Board Room
<br />of the Cabarrus County School Education Center in Concord, North Carolina on
<br />Monday, July 27, 2009, at 6:00 p.m. The purpose of the meeting was to
<br />discuss Qualified Zone Academy Bonds (QZAB), Qualified School Construction
<br />Bonds (QSCB) and related school construction projects.
<br />Present - Chairman: H. Jay White, Sr.
<br />Vice Chairman: Grace Mynatt
<br />Commissioners: Robert W. Carruth
<br />Elizabeth Poole
<br />Coy C. Privette
<br />Also present were John D. Day, County Manager; Richard M. Koch, County
<br />Attorney; Pam Dubois, Deputy County Manager; Susan Fearrington, Assistant
<br />Finance Director; and Kay Honeycutt, Clerk to the Board.
<br />In addition, the following members of the Cabarrus County Board of
<br />Education (BOE) and school staff were present: Holly Blackwelder, Chair;
<br />Wayne Williams, Vice Chair; Board Members: Carolyn Carpenter, Cindy
<br />Fertenbaugh, Tim Furr, and Andrea Palo; Dr. Barry Shepherd, Superintendent;
<br />Mason Miller, Executive Assistant to the Superintendent; Kelly Klutt z,
<br />Finance Officer; Len Wit ke, Director of Construction; Jim Amendum, Associate
<br />Superintendent of Administrative Services; Steve Alexander, Chief Technology
<br />Officer; Sara Motley, Attorney; and Ailene Monroe, Clerk to the Board.
<br />Call to Order
<br />Chairman White called the meeting to order at 6:01 p.m.
<br />Discussion of Qualified Zone Academy Bonds (QZAB), Qualified School
<br />Construction Bonds (QSCB) and Related Projects
<br />The Board reviewed a list of possible construction projects for Boger
<br />Elementary school totaling $2,991,932 that was presented by Mr. Len Wit ke,
<br />CCS Director of Construction, in conjunction with applications for federal
<br />stimulus funding through the use of Qualified Zone Academy Bonds and
<br />Qualified School Construction Bonds. The application deadline for the
<br />stimulus funding is July 31, 2009. The list included the following projects:
<br />an eight classroom addition - $1,218,840; Davis Bacon additional charges -
<br />$219,392; technological infrastructure - $225,000; engineering - $40,000; A/E
<br />(Architect & Engineering) design fees - $86,300; FF&E (Furniture, Fixtures &
<br />Equipment) - $125,000; contingency ($201,400) and replacement of kitchen
<br />exhaust hoods in 13 schools and fryer units in four schools ($826,000).
<br />A general discussion ensued and the following topics were addressed:
<br />budgetary implications related to the Davis Bacon Act; terms of the financing
<br />mechanisms; local match requirements, including in-kind contributions for the
<br />QZAB funding; the preference to use U.S. suppliers and local contractors;
<br />etc.
<br />The Board of Education was asked to consider requesting two years worth
<br />of funding ($6.9 million) for the Northwest elementary school in addition to
<br />their previously prepared project list since many of the school districts
<br />would most likely fail to meet the application deadline. It was noted that
<br />such requests would be considered on a case-by-case basis. After further
<br />discussion, it was suggested that alternate proposals be prepared for the
<br />State's consideration, including asking for all the funding for the Northwest
<br />elementary school project, approximately $12 million, in a phased approach.
<br />The BOE agreed to submit the QSCB application with two options: (1)
<br />funding for Northwest elementary (land, architects/engineering, site
<br />development and construction) and (2) the aforementioned projects totaling
<br />approximately $2.9 million identified by Mr. Witke.
<br />Further discussion continued related to the need to compare the costs
<br />associated with the Davis Bacon Act to the interest-free loan via the QSCB
<br />financing mechanism since the County planned to use cash for the Boger
<br />addition. Mr. Witke was asked to provide a projection of the construction
<br />costs for the Northwest elementary school, including additional labor costs
<br />associated with the Davis Bacon Act so that it can be compared to possible
<br />savings generated by an interest-free QSCB loan.
<br />Adjourn
<br />UPON MOTION of Commissioner Carruth, seconded by Vice Chairman Mynatt
<br />and unanimously carried, the Board adjourned at 7:06 p.m.
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<br />Cle to the oar
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