Dr. Larry Keen, Interim President of Alamance Community College, presented the construction costs for the Public Safety Training Center and the Main, Powell, and Gee Buildings projects. Dr. Keen responded to a public comment about the sponsorship needed for the BLET program. He explained that not all students were sponsored and paid students.
Dr. Keen noted that both projects had faced cost escalations. He mentioned that the costs of furniture, fixtures, and equipment had escalated. He shared that the Main, Powell, and Gee Buildings were ready to start construction that month. Dr. Keen said the Public Safety Training Center would be ready for construction in January. He said the Public Safety Training Center costs had increased slightly by $21,000 from the last estimate.
Dr. Keen informed the Board that the state budget appropriated $5.5 million for the firing range. He appreciated Senator Galey, and Representatives Ross and Riddell for their hard work.
Dr. Keen mentioned the construction price had increased predominantly because of the specialized heating and ventilating air-conditioning that was required for the indoor firing range.
Public Safety Training Center $24,157,164
less remaining 2021 bond proceeds <596,377
less approved Capital Reserves <2,000,000
less 2024 State Budget appropriation <5,500,000
$16,060,787
Main, Powell, and Gee Buildings $5,136,070
less approved Capital Reserves <500,000
less State Grant (SCIF) <1,400,000
$3,236,070
Total Request $19,296,857
Commissioner Turner said that part of the original bond issuance included ACC East and ACC West. He thought each had been allocated $500,000. Commissioner Turner asked if ACC had abandoned those possibilities in this request. Dr. Keen responded they had received $500,000 in the state budget non-recurring funds for the Dillingham Center.
Commissioner Thompson asked if ACC owned the land in Green Level or leased it. Dr. Keen answered ACC leased the land. He said it was a 50-year lease. Commissioner Thompson asked about the addition of the HVAC system. Dr. Keen replied that guns had different types of fumes. He said a good HVAC system would ensure the safety of the students at the gun range.
County Manager York introduced Ted Cole, Davenport, who walked the Board through various options and par amounts for consideration. Mr. Cole advised the Board that official action was not requested for that meeting but action would need to be taken at the October 16th meeting. Mr. Coles said the bonds would be sold on October 31st and that would be the day that interest rates would be locked in. He reminded the Board of the bond amount approved by the voters. Mr. Cole said ACC was requesting $19.296 million. He said the Board had a remaining authorization from the voters of $18.935 million or the Board could authorize something less. Mr. Cole suggested looking at the option #3 scenario where they could issue the $18.935 million. He said they would need guidance from the Board on how much funds they needed to net from the bond sale.
Commissioner Lashley said it looked like $18.935 million was the number. He said they could not go any higher than that. Commissioner Lashley pointed out that the taxpayers were not getting a break and just spending more money.
Commissioner Turner asked about the cost of borrowing the money. Mr. Cole responded the built-in costs were about $300,000 for the total cost of issuance. Commissioner Turner asked whether that would go on top of the borrowing or if there were funds to cover the issuance inside of the capital plan. Mr. Cole answered it was from the borrowing. Commissioner Turner asked about the status of ACC's capital reserves after this plan. Mr. Cole replied at the close of 2023 it would be at about $3 million. Commissioner Turner suggested the issuance should be what the voters had approved.
Chairman Paisley shared they had multiple options available. He said it was their duty to give some direction to the staff, Davenport, and ACC. He requested comments on the options.
Vice-Chair Carter suggested going with option # 3 ($18.935 million) because it would complete the project.
Commissioner Turner said he supported the issuance of the bonds that the voters had approved and not above that amount. He said that option # 3 asks for $360,000 above what the voters had approved. Commissioner Turner offered an option #4 which would support the total project funding at the limit that the voters had approved which was $18.935 million.
Commissioner Lashley agreed with Commissioner Turner with the amount of $18.935 million.
Chairman Paisley advised that the consensus of the Board was option #4 that would net $18.935 million.