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Budget Committee

Special Called Meeting

Minutes

August 17, 2016

9:00 am

Committee members attending: Chairman Joe Grandy, Commissioners Rick Storey, Todd Hensley, Mark

Larkey and Dr. Paul Stanton

Committee members absent: Mayor Dan Eldridge

Others in attendance: Commissioners Tom Krieger and Lynn Hodge, Director of Finance Mitch Meredith,

Staff Attorney Brett Mayes, Director of Schools Kimber Halliburton, Jennifer Moore, Phillip Patrick, Sherry

Greene, Gary Gray – Johnson City Press, Lee Owens – WCYB News 5

The meeting was called to order by Chairman Grandy and opened in prayer by Commissioner Krieger.

Items discussed:

Item 1 – Chairman Grandy presented resolution #16-08-16 to the Committee as well as the Architects

schedule for construction of a new Boones Creek K-8. Upon review of the Architects schedule, it was

necessary to hold this special called meeting in order to address the urgency needed in approving this

resolution and allowing the Architects schedule to progress. Per the Architects schedule, design work

should commence September 2016. Chairman Grandy stated the School Board had identified a site, for

the new Boones Creek K-8, located on Highland Church Road. This resolution will give the Mayor the

authorization to negotiate and develop a contract with the property owner. Chairman Grandy stated the

resolution should also address funding for the land acquisition. Director Meredith presented to the

Committee proposed Capital Projects Fund line item adjustments to allow the cost of land acquisition to

be funded with cash. These line item budget adjustments should be incorporated into resolution #16-08-

16. (see attachment) After brief discussion, Commissioner Larkey made a motion to approve resolution

16-08-16 amended to include line item adjustments to the Capital Projects Fund, as presented by Director

Meredith. Motion was seconded by Commissioner Storey. Motion carried. Director Meredith stated the

School Board had adopted the idea of establishing a Joint Capital Projects Finance Committee, between

the School Board and the County Commission, to collaborate, plan and manage projects involving Capital

expenditures for the Schools. The Committee would be 3-4 members from the School Board and 3-4

members from the County Commission. Director Halliburton agreed and stated School Board appointees

may be elected at their September 1st meeting. Chairman Grandy stated Commission appointees will be

chosen at the September 14th Budget Committee meeting. Commissioner Storey asked if the Boones

Creek K-8 site could be clarified and attached to this resolution. Chairman Grandy stated a condensed

version of the site map will be provided to the full Commission.

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For informational purposes, Director Meredith distributed a Budget Amendment Procedures handout and

the 4th quarter FY16 unaudited financials. These items will be discussed at the September 14th Budget

Committee meeting.

Seeing no further business, meeting was adjourned at 9:30am.

Attachments:

Resolution #16-08-16

Architects Schedule for Boones Creek K-8

Capital Projects Fund – Line Item Budget Adjustment for BC K-8 land

Action items:

Resolution #16-08-16 to be considered by full Commission at their August 22nd meeting.

Respectfully submitted by Sherry Greene.

Architects Schedule for Boones Creek K-8

August 2016 County Commission authorization to enter agreement for property acquisition

September 2016 Commence Design

February 2017 Complete Design

March 2017 State review and permitting

April 2017 Bid Award

May 2017 Close on property

Start Construction

May 2019 Complete Construction

June - July 2019 Install Owners FF&E

August 2019 Open School

Originating Committee: Budget Committee Additional Approving Committee:

Resolution No. 16-08-16 Page 1 of 3

WASHINGTON COUNTY, TENNESSEE BOARD OF COUNTY COMMISSIONERS

RESOLUTION No. 16-08-16

RESOLUTION AMENDING FISCAL YEAR BUDGET 2016-2017 AND

AUTHORIZING THE COUNTY MAYOR TO ENTER INTO A PURCHASE AGREEMENT FOR REAL PROPERTY RE: THE

WASHINGTON COUNTY BOARD OF EDUCATION’S PROPOSAL FOR A NEW BOONES CREEK K-8 SCHOOL

WHEREAS, on May 20, 2016, Washington County, Tennessee and George

Alex Williams, II executed an Option to Purchase Real Estate Agreement (the “Option”) regarding a certain fifty-six (56) acre portion of a tract located in the 11th Civil District being described more particularly as Map 036, Parcel 038.00 (the “Property”), which provided Washington County with the right to enter the property described therein and carry out geotechnical surveys, environmental studies, subsurface investigations and any other preliminary investigative work regarding the property deemed necessary by Washington County; and

WHERAS, the Washington County Board of Education considered and

recommended the purchase of the Property in order to construct a new K-8 school for the replacement of Boones Creek Elementary School and Boones Creek Middle School at its August 10, 2016 meeting; and

WHEREAS, the design and construction timeline allowing for the completion

of the news Boones Creek K-8 school prior to the start of the 2019 school year is such that immediate commencement of project design services is required, thereby necessitating the County Mayor to enter into an agreement for the purchase of a minimum of twenty (20) acres but up to fifty-six (56) acres of the Property for an amount not to exceed $35,000 per acre and a total purchase price not to exceed $1,875,000.00 for the purpose of providing the Board of Education with a site for the new school; and

WHEREAS, the Washington County Board of County Commissioners has

previously approved Resolution No. 16-01-10 authorizing the expenditure of $600,000.00 for the initial architecture and engineering design of a new Boones Creek K-8 school; and

WHEREAS, the County Mayor requests the following amendments to Fiscal

Year Budget 2016-2017:

1. Reduce $250,000.00 from expense line item 171-91110-707 (General Administration Projects – Building Improvements);

2. Reduce $21,965.00 from expense line item 171-91130-707

(Public Safety Projects – Building Improvements);

Originating Committee: Budget Committee Additional Approving Committee:

Resolution No. 16-08-16 Page 2 of 3

3. Reduce $33,921.00 from expense line item 171-91130-799

(Public Safety Projects – Other Capital Outlay); 4. Reduce $253,114.00 from expense line item 171-91190-724

(Other General Government Projects – Site Development);

5. Reduce $600,000.00 from expense line item 171-91190-799 (Other General Government Projects – Other Capital Outlay);

6. Reduce $716,000.00 from expense line item 171-91300-729

(Education Capital Projects – Transportation Equipment);

7. Add $1,875,000.00 to expense line item 171-91300-715 (Education Capital Projects – Land); and

WHEREAS, the Budget Committee recommended consideration and

approval of this request to the Board of County Commissioners at its August 17, 2016 meeting; now therefore

BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF WASHINGTON COUNTY, TENNESSEE THAT:

SECTION 1. The County Mayor is authorized to negotiate and enter into an agreement for the purchase of a minimum of twenty (20) acres but up to fifty-six (56) acres of the Property for an amount not to exceed $35,000 per acre and a total purchase price not to exceed $1,875,000.00 for the purpose of providing the Board of Education with a site for the new Boones Creek K-8 school, the terms thereof subject to review and approval by the County Attorney’s Office.

SECTION 2. Fiscal Year Budget 2016-2017 is amended to:

1. Reduce $250,000.00 from expense line item 171-91110-707 (General Administration Projects – Building Improvements).

2. Reduce $21,965.00 from expense line item 171-91130-707

(Public Safety Projects – Building Improvements). 3. Reduce $33,921.00 from expense line item 171-91130-799

(Public Safety Projects – Other Capital Outlay). 4. Reduce $253,114.00 from expense line item 171-91190-724

(Other General Government Projects – Site Development).

5. Reduce $600,000.00 from expense line item 171-91190-799 (Other General Government Projects – Other Capital Outlay).

Originating Committee: Budget Committee Additional Approving Committee:

Resolution No. 16-08-16 Page 3 of 3

6. Reduce $716,000.00 from expense line item 171-91300-729 (Education Capital Projects – Transportation Equipment).

7. Add $1,875,000.00 to expense line item 171-91300-715

(Education Capital Projects – Land). SECTION 3. This Resolution shall take effect from and after the date on which it is approved by the County Mayor or as indicated by certification of the County Clerk, as hereinafter set forth.

Introduced by Commissioner: Seconded by Commissioner: Commissioners Voting FOR: Commissioners Voting AGAINST: Commissioners Abstaining: Commissioners Absent:

ADOPTED BY THE COUNTY LEGISLATIVE BODY, in session duly assembled, on this the 22nd day of August, 2016. KATHY STOREY, County Clerk GREG MATHERLY, Chair of the Board

REFERRED to County Mayor this the ____ day of __________ 2016. KATHY STOREY, County Clerk

APPROVED by County Mayor on this the ___ day of___________ 2016.

DANIEL J. ELDRIDGE, County Mayor

The County Mayor having declined to approve this Resolution, the same became effective on the __ day of _________ 2016, pursuant to Tennessee Code Annotated § 5-6-107(b)(5).

KATHY STOREY, County Clerk

Approved as to form by the County Attorney this _____ day of __________ 2016. _________________________________ THOMAS J. SEELEY III, County Attorney