School board signs papers for construction
By Phyllis Moore
Published in News on September 14, 2011 1:46 PM
Construction projects at Eastern Wayne and Norwayne middle schools are one step closer to fruition after the Wayne County Board of Education signed a funding agreement with the county at its meeting this week.
The school board also adopted a resolution allowing for a survey of the properties.
Board attorney Jack Edwards presented the two documents for approval. He explained that the funding agreement, signed Sept. 6 by the county commission, will allow for setting up payments for the projects.
The "installment financing agreement" enables the county to use the sites as security in obtaining financing of the projects through the Qualified School Construction Bonds, or QSCB, program.
Proceeds from the state lottery will be used to pay the principal amount or put in a "sinking fund" to pay the principal amount of $15 million obtained through the QSCB.
If lottery funds are not adequate, Edwards said, funding would come from the two-cent sales tax.
The board also adopted a resolution allowing for the retention of services of B.R. Kornegay Land Surveying and Engineering Inc. to provide surveys of the two properties.
"It came to our attention last week that the lender on the projects will be requiring a quick survey," Edwards said.
A survey had initially been done, but that was in 2007 and it was not sufficient for obtaining the title insurance, prompting a "time-sensitive situation" for the board.
"It's not a bid situation, but it's a policy when seeking these services -- seek proposals and take the best proposal of the entity or individual that can provide the service," Edwards said, asking that the board approve the exemption and authorize surveys of both school campuses. "We're under a time crunch of getting the work done."
Commissioners awarded the contract for the Eastern Wayne and Norwayne middle schools projects to Monteith Construction of Raleigh. Monteith submitted a bid of $14.5 million, which includes alternatives for items like an additional 20,000-square-foot classroom building for $1,963,000 and $250,000 in heating and air conditioning renovations to the cafeteria and gym at Norwayne and $227,000 for heating and air conditioning renovations to the cafeteria and gym at Eastern Wayne.
The base bid for both schools is $11,947,000. The alternates add another $2,576,200. Contingency and related costs account for another $560,696 and an estimated $81,500 in bond fees boost the total to $15,165,396.
Of that total, $15 million will be financed, while $165,396 would come from local sales tax reimbursement on items the county purchases for the projects.
Another $1,264,636 in additional costs fall outside of what would be paid for by the bonds, making the total project $16,430,032.
The board of education will deed the two school properties to the county to be used as collateral. The county will in turn lease the properties back to the school board.