Minutes - 20051003 - Laserfiche WebLink

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the facility on a number of occasions to examine the conditions, and most conditions are unchanged with the exception of a few minor repairs. There will be about $300,000 set aside at closing for the County to use for some of the defects. This is outlined in the agreement. Also, under the agreement, there is a free look period where the County could continue to conduct due diligence activities. The free look period has been extended by mutual agreement through October 5th. The staff has not discovered anything that would make the County want to walk away from the deal. Regarding the application to the Town of Hillsborough for the expansion of the facility, the architects discovered a problem related to the grade not having met existing standards. This can be fixed and the County Attorney has issued a notice to Eaton Vance's representatives. Also, even after the free look period ends, there are contingencies in the purchase agreement that would make the contract null and void. He read the contingencies. The Hillsborough Board of Adjustment is supposed to review the application for expansion of the facility on October 12th. At the next County Commissioners' meeting on October 18th, there will be a public hearing related to the proposed financing. The Local Government Commission meets on November 1St and will consider the financing application. The closing will take place between November 8th and the end of the calendar year. They hope to break ground on the senior center sometime around March 2006. Commissioner Halkiotis made reference to the next to the last page of photographs and asked Ken Smith from Corley Redfoot and Zack about the support system for some refrigeration equipment. He said that the steel beams were rusted and it looks like someone painted them over. He asked if the beams should be replaced. Ken Smith said that in their first report they suggested that the beams be stripped back to white metal, properly primed, and then repainted with azinc-rich paint. He said that the rust was painted over with zinc-rich paint and they were not properly prepared before painted. Commissioner Halkiotis said that they are wasting money doing incorrect procedures. Commissioner Gordon asked about the $300,000 and if it is going to be enough to make the repairs. Rod Visser said that the CRZ report was out over aten-year period and this amount will not cover everything that could be replaced, but this was a negotiating point of the deal. Commissioner Halkiotis is also concerned about how much of the $300,000 has been subtracted to do the pittance of the repairs. It was answered that nothing has been subtracted. Commissioner Halkiotis said that he is disappointed with what has been done. Jeff Thompson made reference to Exhibit B and the 11 items that were to be fixed. Commissioner Halkiotis asked if $300,000 will cover this list and Jeff Thompson said yes. Robin McDuffie gave a report on the audit. She said that it was a dual opinion audit because they were not able to obtain enough evidentiary information to express an opinion on balance sheet and statement cash flows and the members' deficit. There are many things on the balance sheet that have been carried forward for years and no one has the information to document. They were able to express an opinion on the statement of operations. They were not able to support the property and equipment purchase prior to June 2000, unamortized balances of some other assets, some accrued expenses, and the members deficit balances. She made reference to page 4 and the balance sheet and said that they were able to substantiate the total current assets of $377,000. Commissioner Gordon verified that Orange County was not liable for any of the things that were not substantiated.