Agenda - 11-02-2006-8a - Laserfiche WebLink

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Capital Related Costs The fixed cost to purchase the Project, which includes the office building, library, and space for citizens and staff at the parking facility, stands at $17,939,079, while the Auxiliary Project has a price tag of $5,490,449. Debt issuance plans discussed and endorsed by the Board on September 14, 2006 contemplated the issuance of $25 million for a County Campus and Library project. However, the issuance dates based on the Agreement with Telesis require that funding for purchase be provided earlier than originally discussed. Staff have had conversations with the Local Government Commission staff (LGC) regarding funding options that the County may exercise in order to: 1) maintain the County's self-imposed limit on annual debt service payments to no more than 15% of annual General Fund expenditures; 2) assume no more than a 7% growth rate in annual General Fund expenditures; and 3) ensure that future debt capacity is sufficient to meet upcoming County and School capital needs, while taking advantage of this extraordinary opportunity to meet many of the County's long-term space needs. There are a variety of viable funding options available. The option that will ultimately be pursued is contingent upon the timing of the delivery of the various components of the Project and the Auxiliary Project. As project timelines for the Project and the Auxiliary Project, as well as other projects that the Board has endorsed for additional debt financing become more defined, staff will provide updated debt issuance schedules and other relevant information to the Board for its consideration. As a point of reference, full year debt service payments (principal and interest) associated with borrowing $25 million at 6 percent annual interest rate over 20 years range from $2.9 million in the first year to $643,750 for the final payment. Financial impacts in future fiscal years would depend on actual timing of debt issuances and structure of payback. The October 11, 2006 memorandum from the Budget Director included as an attachment to this agenda abstract provides additional financial information related to County capital and debt related matters. RECOMMENDATION(S): The Manager recommends that the .Board receive public input regarding the Project and the Auxiliary Project; exempt the professional design services and Construction Manager at Risk contracts from the qualifications-based selection process as allowed by G.S. 143-64.32; and approve and authorize the Chair to sign the Agreement of Intent.