Agenda - 06-23-2005-9d - Laserfiche WebLink

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The Board has previously discussed the desirability of having audited figures related to SportsPlex operations, At the March 15 meeting, the Board received a financial analysis from local certified public accounting (CPA) firm, but that review did not rise to the level of scrutiny entailed in an audit. If the Board so indicates, staff can arrange for an audit at County expense of the SportsPlex financials for their fiscal year ended May 31, 2005, FINANCIAL IMPACT: As will be addressed in the staff presentation of this agenda item, the net cost to the County for the SportsPlex acquisition will be ± $5.565 million. Funding far the acquisition would come through a private placement bank loan that will be subject to approval by the North Carolina Local Government Commission, The March 1.5 CPA financial analysis explained that under the current approach to operations, the County could expect to need $1,4 million in annual cash payments (beyond program revenue) to subsidize the personnel, operating, capital, and debt service costs of the SportsPlex and a new Central Orange Senior Center, With revenue enhancement and cast containment measures implemented, the needed cash subsidy for both entities could potentially be reduced to $1.088 million (this figure likewise incorporates principal and interest payments for both the SportsPlex acquisition and the senior center construction), The CPA analysis also noted that in either of these two scenarios, the anticipated annual costs cited for a combined SportsPlex/Senior Center facility would be about $235,000 less than for two standalone facilities, Elsewhere on this agenda, the Board will consider approval of a capital project ordinance that (as in past years) appropriates $400,000 for FY 2005-06 for SportsPlex operations. That appropriation will provide funding for the County to continue to pay through closing on the property a monthly payment to Eaton Vance of $33,333,33, That is the monthly amount provided for under the original 1994 SportsPlex facilities/services agreement, which has been extended through closing by mutual agreement between the County and Eaton Vance. The $400,000 appropriation can also serve as the source of funding for an audit of the SportsPlex financials. RECOMMENDATION(S): The Manager recommends that the Board: 1) approve the accompanying contract, subject to final review by staff and the County Attorney, and authorize the Chair to sign it; 2) authorize the Manager to engage the services of a qualified GPA firm to conduct an audit of the SportsPlex financials for the fiscal year ended May 31, 2005, and to execute any appropriate agreements related to such an audit; and 3) authorize the Manager to proceed in pertinent due diligence activities related to the purchase of the facility, to include negotiating potential development and operations contracts with third parties,