Supervisors consider delaying HVAC project to cover higher cost of jail
After years of discussion and courthouse staff spending the past summer cleaning out the attic to make room for a boiler, the Greene County supervisors are again considering delaying the HVAC project at the courthouse. That was part of the discussion at the board’s Feb. 6 meeting.
That would answer the question of how to handle the nearly $1 million difference between the $10 million in bonds voters approved and the county sold for construction of a new jail, and the construction bids, that came in at $10,954,488. The county has already paid $724,567 on the project, leaving a bit more than $10.2 million left to pay. The supervisors approved a transfer of $568,000 from the general basic fund to cover a portion of the cost already paid. Auditor Billie Jo Hoskins said the intention was to “pay back” the general basic fund.
“We’re looking at options how we can complete the project as we see it, with the moneys we have available,” board chair John Muir said. “It’s allowable not to pay back that (general basic money).”
That would require only a resolution by the supervisors.
Nick Bruck of DCI Group, the company hired as construction manager at risk for the project, explained that the set costs (actual construction) are just less than $10,000, with another close to $1 million the county and design firm ISG are responsible for.
“Going over a desired number is probably not unusual,” Muir said. “The question to us is what things can we look at that the county can handle to complete the project with the least amount of pain beyond the $10 million.”
The supervisors discussed the possibility of not doing the HVAC project. “There’s numbers we’re looking at for the HVAC and there’s numbers we’re looking at for the jail,” Muir said. “In order to complete maybe even the base bid (on the jail), is it realistic, is it legal, is it acceptable to take the money we’ve talked about prior for the HVAC and use those monies to finish this project before we move forward?”
The county has $1.6 to $2 million to put into the HVAC project. That includes work on the roof.
Supervisor Dan Benitz suggested doing maintenance on the HVAC system, repairing things as they go out. “People have said we need a jail, and I agree, we need a jail.”
“If we change direction on the HVAC system, that allows the general fund to have some freed-up money would could put towards the jail project and not have a huge effect, or any affect, on services that are being provided for citizens,” Muir said.
Treasurer Katlynn Mechaelsen encouraged the supervisors to look at “the big picture.” The money from the bond sale in November has been invested and is earning interest. She said the county carried over a $2 million surplus from last fiscal year. There’s now $2.1 million. “You’re very flush with cash,” she said.
Auditor Billie Jo Hoskins reminded the supervisors they like to carry over at least $1 million from one fiscal year to the next.
“I don’t think the project is that far out of reach, but we’d have to be very strategic and tighten your belt loops,” Mechaelsen said.
After much discussion, the consensus seemed to be to delay the HVAC project if needed to make the jail project work.
“I’m more comfortable investing that cash in something the public voted to put money towards, and we just didn’t know all the numbers totally,” Muir said.
“I think (delaying the HVAC project) is the fiscally responsible thing to do with the money available to us. To look at two major projects for the county and to do both of them thoroughly, I don’t think is an option,” he continued.
Supervisor Pete Bardole reminded the board the county would lose funds from the American Rescue Plan Act (ARPA) if the HVAC project isn’t done. The county has already paid BBS Architects more than $200,000 in design costs for the project, estimated at $3.2 million.
Muir thinks the ARPA funds could still be used from some part of the project. He called the ARPA funds “a carrot,” and that the funds would have made the project work.
No decision was made, in part because supervisor Dawn Rudolph was absent. A discussion of the project is on the Feb, 10 agenda.
