111693Randolph County
Board of Commissioners
November 16, 1993 Minutes
The Randolph County Board of Commissioners met in special session at 6:30
p.m. on November 16, 1993 in the Commissioners Meeting Room, County Office
Building, 725 McDowell Road, Asheboro, NC. Commissioners Frye, Kemp, Langley,
Petty, and Comer were present. The purpose of this meeting was to select the
financing team for the detention center and the refinancing of the Randolph
County Office Building and to award an architectural contract to O'Brien/Atkins.
Citizen Comment
Wade Powell, who previously served on the Jail Advisory Committee,
expressed his concern over the Sheriff's administrative offices being separate
from the jail. He asked the Board to reconsider this decision.
Chairman Frye stated that the decisive vote on the failed bond referendum
was a mandate to keep the jail cost as low as possible.
County Attorney Ed Gavin pointed out that the Sheriff's Department is
separate from the jail now.
Chief Deputy Allen McNeill said that ideally the Sheriff would like both to
be under one roof, but that he wants to do whatever will save taxpayers money.
Commissioner Petty noted that a law enforcement section could be added to
the new jail at some time in the future, even if it is not done now.
Dudley Lacy, architect, stated that the schematic design for the law
enforcement section could be done with the jail design and then held in reserve
until it is ready to be built.
O'Brien/Atkins Architecture Contract
Dudley Lacy of O'Brien/Atkins reviewed the changes in the architectural
program since the original design:
° Square footage has been reduced to 56,000 square feet.
° The budget has been reduced to around $7,000,000.
° O'Brien/Atkins will have a project representative on site after the 5th
month of construction.
° Their contract amount would be reduced to around $600,000 and has cost
and schedule control provisions.
over
County Attorney Ed Gavin said he needs to go/the proposed contract in
detail before the Board approves it. He suggested that the Board provide a
letter of intent in the meantime.
On motion of Kemp, seconded by Petty, the Board voted to add $6,110 for the
schematic design for the law enforcement center to the schematic design phase
for the jail.
On motion of Langley, seconded by Comer, the Board voted to draft a letter
of intent to O'Brien/Atkins for $74,000 for total schematic design work, subject
to approval of the Randolph County Detention Facility Contract between the
County and O'Brien/Atkins by January 31, 1994.
page 2
Financing for Detention Center
Frank Willis, County Manager, stated that after having a pre -conference at
the Local Government Commission, he sent out ten requests for proposals for
financing the new jail. He received eight replies, which he sent to the Local
Government Commission for analysis. Seven institutions offered financing
through certificates of participation and one institution, Southern National
Bank, offered private placement financing. The Local Government Commission has
recommended the private placement, which is much less expensive than
certificates of participation. Mr. Willis stated that the County will save
an estimated $827,716 through the private placement. Southern National's
interest rates for the first seven years of the loan are already set, beginning
at 3.29%. After the seventh year, the rate will be reset to 70% of the prime,
with a minimum of 4.2% and a maximum of 7.16%. The worst case scenario total
net interest for the twelve and a half years would be 4.38%. We are currently
paying 7.72% interest on the Randolph County Office Building, which is to be
refinanced as part of this proposal with.Southern National Bank. Fees for the
bond attorney will be much less with private placement.
On motion of Petty, seconded by Langley, the Board voted to employ
Robinson, Bradshaw & Hinson as special counsel for this financing transaction
for $11,500.
On motion of Kemp, seconded by Langley, the Board voted to accept the
proposal of Southern National Bank for private placement financing for the
detention center and for refinancing the Randolph County Office Building.
Adjournment
On motion of Langley, seconded by Kemp, the Board adjourned.