Commission Funds Building 8 With Amendments

The Jefferson County Commission held a Called Meeting on Tuesday, December 30, 2014 at the Patriot Academy. The purpose of the meeting was to discuss and take action for funding repairs and renovation of Building 8 at Jefferson County High School.

Commission Chairman Carmichael Called the Meeting to Order. Absent from Roll Call were Commissioners Tabor and Eslinger. Director of Jefferson County Finance Helton informed the Commission that bids for the repairs and renovation to Building 8 came in at $12,615 less than was previously reported. In discussion, it was brought that only items on the meeting call could be addressed and any other financial considerations would have to be addressed at another meeting. Helton recommended that the County Commission approve up to $3 million dollars to include the amount needed for Building 8 plus funding for the bond issuance cost. Helton informed the Commission that the requested amount of $2,763,764 for the renovation and repair of Building 8 at Jefferson County High School includes the previously approved amount of $145,000 for reimbursement to the Schools for the prior bond issuance associated with other portions of the building program. Commissioners Scarlett (Budget Committee Chairman) and Turner (who made the motion to include the $145,000 at a prior meeting) both questioned the validity of the figures because the previous number provided to the Commission by Helton was only $12,615 more that the current figure and did not include the prior bond issuance cost of $145,000 (it had not been brought to Commission at that time). However, Director of Finance Helton assured the County Commission that he was comfortable with his current figures. He stated that the recommendation for up to $3 million in bond issuance was also the recommendation of the Financial Advisor.

Commissioner Solomon made a Motion to approve up to $3 million for the renovation and repairs of Building 8, to be funded through bond issuance. His motion was 2nd by Commissioner Musick.

During discussion, Commissioner Tucker stated that he was uncomfortable in approving more than was needed to complete the project and cover the bond issuance, which according to the Financial Advisor is generally maximized at around 2%. Tucker stated that the additional funds would be worth around 2 pennies on the property tax rate and, while he agreed that the project should adequately funded, the Commission should not put an unneeded burden on the tax payers. Commissioner David Seal offered an Amendment to the Motion that required review of the construction contracts language, state and federal regulations, applicable laws and labor laws by the Jefferson County attorneys with the fees to be paid for from the Jefferson County Fund Balance. Further, it required that the funding awarded by the motion be used on Building 8 repair and renovation and verified by documents (including but not limited to invoices, purchase orders, receipts, contracts and work orders) during construction and demolition and at the end of the project. It also required that the County Commission establish a Quality Control Oversight Committee for the duration of the project- to appoint a Quality Control Advisor who will observe each phase of the Building 8 project, serve as the owner’s representative and to report findings to the County Commission and School Board, as well as to identify quality control issues and assure that taxpayers get cost effective results. The Quality Control Advisor will be a third party and independent of the Construction Manager-to be paid from the Jefferson County Fund Balance. Finally, any funding, including contingency funds, awarded by the motion and not expended on the Building 8 repair and renovation is to be returned to Jefferson County and applied to the bond issuance that is connected to this motion (which is funded through bond issuance). Scarlett 2nd the amendment, stating that problems that have surface with the other building projects, including flooring issues at Jefferson County High School, the Patriot Academy and Mount Horeb, as well as block quality issues and a more recent issue with the renovated POD 4 area of Jefferson County High, warrant the County Commission taking additional action to insure the County’s investment.

Commissioners Baxley and Turner spoke against the amendment, stating that a Construction Manager is already in place and calling for more trust between the parties involved. Commissioner Huffaker questioned the time frame involved and Director of Schools Edmonds stated that he has assurances that the work will be done in time to collect the remaining insurance funds that are being held until the repair work is completed. Commissioner McGraw asked for an amount associated with the Quality Control Advisor and was informed by Commissioner Gaut (who has professional experience in the area of construction privately and with the County) that the length and scope of the requirements should cost around $30,000. The Seal/Scarlett amendment Passed 12-7 with Commissioners Sheets, Beeler, Solomon, Turner, Musick, Baxley and Tucker (who initially passed) voting No.

Commissioner Tucker brought an Amendment to change the bond issuance amount to $2,825,000 to cover the requested cost of the repairs and renovation of Building 8 and the bond issuance cost at a little more than 2%. He was 2nd by Commissioner Bales and the amendment Passed 14-5 with Beeler, Solomon, Turner, Musick and Baxley voting No.

Commissioner Turner objected to voting on the motion, stating that no dollar amount was assigned to the costs associated with the Seal/Scarlett amendment. Commission members stated that Commissioner Gaut had given an estimated cost. However, Commissioner Turner did not view that as satisfactory. Chairman Carmichael stated that the Motion, as amended, was on the floor and the question had been called for, therefore a vote was in order.

The original motion, as twice amended, was Approved 13-6 with Sheets, Beeler, Solomon, Turner, Musick and Baxley voting No. The meeting adjourned.