Borrowing plan — county’s fund balance gives interim financing for proposed jail project

Published 5:18 pm Tuesday, March 4, 2014

MIKE VOSS | DAILY NEWS THOUGHT-PROVOKING: Commissioners (from left) Ed Booth, Gary Brinn and Hood Richardson listen to an explanation of the reimbursement resolution associated with the proposal to build a new jail.

MIKE VOSS | DAILY NEWS
THOUGHT-PROVOKING: Commissioners (from left) Ed Booth, Gary Brinn and Hood Richardson listen to an explanation of the reimbursement resolution associated with the proposal to build a new jail.

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.

About Mike Voss

Mike Voss is the contributing editor at the Washington Daily News. He has a daughter and four grandchildren. Except for nearly six years he worked at the Free Lance-Star in Fredericksburg, Va., in the early to mid-1990s, he has been at the Daily News since April 1986.
Journalism awards:
• Pulitzer Prize for Meritorious Public Service, 1990.
• Society of Professional Journalists: Sigma Delta Chi Award, Bronze Medallion.
• Associated Press Managing Editors’ Public Service Award.
• Investigative Reporters & Editors’ Award.
• North Carolina Press Association, First Place, Public Service Award, 1989.
• North Carolina Press Association, Second Place, Investigative Reporting, 1990.
All those were for the articles he and Betty Gray wrote about the city’s contaminated water system in 1989-1990.
• North Carolina Press Association, First Place, Investigative Reporting, 1991.
• North Carolina Press Association, Third Place, General News Reporting, 2005.
• North Carolina Press Association, Second Place, Lighter Columns, 2006.
Recently learned he will receive another award.
• North Carolina Press Association, First Place, Lighter Columns, 2010.
4. Lectured at or served on seminar panels at journalism schools at UNC-Chapel Hill, University of Maryland, Columbia University, Mary Washington University and Francis Marion University.

email author More by Mike