Borrowing plan — county’s fund balance gives interim financing for proposed jail projectPublished 5:18pm Tuesday, March 4, 2014
The Beaufort County Board of Commissioners, during its special meeting last week, adopted a project ordinance to provide $1,988,750 in interim financing for the proposed jail project.
The money would come from the county’s fund balance (about $18 million). The fund balance would be repaid when the county secures funding for the project. The county is seeking to borrow money from the U.S. Department of Agriculture to help pay for the proposed new jail.
Of the $1,988,750, the board set aside $1,808,750 for architectural services related to building a new jail. The remaining $180,000 is earmarked for construction management at risk services.
“Mr. Chairman, we’d appreciate it if you (the board) would approve both documents separately, one being the reimbursement ordinance. … The resolution just protects the county. If we start spending money at all on any activity related to this project, a resolution would allow us at some future date to reimburse the county for any expenditures we outlay related to a capital project through any kind of debt financing,” said Jim Chrisman, assistant county manager and the county’s chief financial officer. “We may never have to use this resolution. USDA doesn’t require it, but if for some reason we don’t use USDA financing, then this legal document would have to be included.”
The biggest estimated expenditure for architectural services is $656,840 for construction documents, followed by $328,420 for design development, $328,420 for the construction phase, $246,315 for the schematic design, $92,580 for transition services, $82,105 for project-related bidding/negotiations and $74,070 for basic compensation for furniture design.
Also last week, the board awarded a $1.64 million contract to Mosely Architects for basic services related to designing a jail. It also awarded the first phase of a two-phase contract to MB Kahn for construction-management services related to building a new jail. That contract’s first-phase (preconstruction) cost is $180,000.
Should the county obtain funding for the jail project from a source other than USDA, the contracts would have to be revised to reflect the change in the funding source, according to Christina Smith, the county’s public-works director.
Adopting the resolution and awarding the contracts do not obligate the county to building a new jail.