Guilford County Board of Education
Board Meeting
December 5, 2006

GUILFORD COUNTY BOARD OF EDUCATION
SPECIAL CALLED MEETING
GREENSBORO, NORTH CAROLINA

The Guilford County Board of Education met in a special called meeting to continue the work of the board including all matters that come before it in the operation of business on Tuesday, November 28, 2006, at 712 North Eugene Street, Greensboro, North Carolina. The following board members were present: Walter Childs, Kris Cooke (arrived at 6:35 p.m.), Alan Duncan, Darlene Garrett, Deena Hayes, Dot Kearns, Susan Mendenhall, Amos Quick (arrived at 6:40 p.m.), Nancy Routh, Anita Sharpe and Marti Sykes. Also present were Superintendent Terry Grier and Attorney Jill Wilson.

Call to Order
Chairman Duncan called the meeting to order at 6:30 p.m.

Pledge of Allegiance and Moment of Silence
Board member Marti Sykes led the Pledge of Allegiance and a moment of silence.

Approval of the Agenda
Chairman Duncan asked board members to review the meeting agenda and called for a motion to approve or amend it. Motion was made by Anita Sharpe, seconded by Dot Kearns, to approve the agenda as presented. The motion passed upon unanimous voice vote.

Personnel Action Report
The agenda included personnel actions as noted in the Personnel Action Report and addendum requiring board approval.

Motion was made by Marti Sykes, seconded by Susan Mendenhall, to approve the personnel action report and addendum as presented. The motion passed upon majority show of hands vote of 8-to-1 as follows: Ayes - Walter Childs, Alan Duncan, Deena Hayes, Dot Kearns, Susan Mendenhall, Nancy Routh, Anita Sharpe and Marti Sykes; Nays – Darlene Garrett.

Discussion of MWBE Goal

Attorney Jill Wilson reviewed revisions to MWBE goals and some accompanying procedures and processes. The new recommended MWBE goal for GCS is 12.46 percent. Attorney Wilson requested that the board give approval to use the 12.46 percent goal in the CM at Risk Request for Quotation (RFQ).

Motion was made by Anita Sharpe, seconded by Marti Sykes, to change the board’s policy from 10 percent MWBE participation to 12.46 percent based on the most recent disparity study appropriate to this area provided from the state in the year 2003. The motion passed upon majority show of hands vote of 8-to-3 as follows: Ayes - Kris Cooke, Alan Duncan, Darlene Garrett, Dot Kearns, Susan Mendenhall, Nancy Routh, Anita Sharpe and Marti Sykes; Nays – Walter Childs, Deena Hayes and Amos Quick.

Discussion of Eastern Guilford High School Evaluation and Reconstruction

A. State Lottery Funds
Superintendent Grier informed the board that the state has made payment of the first installments of the lottery money. There is $2.4 million in Raleigh which has been designated for Guilford County Schools. Chief Finance Officer Sharon Ozment asked for the board’s approval to ask the County Commissioners to request funds be forwarded to Guilford County to be used to help pay for the renovation and remediation of the three middle school gymnasiums. This will free up some local expense money, which then will allow the district to pay for some of the expenses associated with the Eastern High School fire.

Ms. Ozment provided information on structural enhancements/remediation at Eastern, Hairston and Kernodle middle schools. The cost breakdown follows:

   2005-06 regular capital outlay funds.................................... $1,817,226.76
   2006-07 public school building capital funds (PBCF).......... $5,400,000.00
   2006-07 regular capital outlay funds.................................... $1,652,514.60
                                                                                                  $8,869,741.36

Given the $3 million reduction in the 2006-07 regular capital outlay appropriation; the significant unbudgeted expenses incurred to date in connection with the middle school structural enhancement/remediation issues; and the availability of $2,372,013 in North Carolina State Lottery Proceeds, the administration is requesting approval to appear before the Board of County Commissioners (BOCC) on December 14, 2006.

Motion was made by Marti Sykes, seconded by Walter Childs, to authorize administration to appear before the Board of County Commissioners on December 14 to seek approval/ authorization for the BOCC Chairperson to sign an application for the release of $1,652,515 from the North Carolina State Lottery Proceeds for the structural enhancement/remediation costs incurred at Eastern, Hairston and Kernodle middle schools and to seek approval to amend the existing Middle School Structural Enhancement/Remediation Project Ordinance (as initially approved by the BOCC on 9/21/06) to include $1,652,515 in North Carolina State Lottery Proceeds (thus freeing up $1,652,515 in 2006-07 regular capital outlay funds for items such as, but not limited to, school instructional equipment allotments and maintenance of facilities needs). The motion passed upon unanimous show of hands.

B. Loss Consultant and Appraiser Contract
Attorney Wilson discussed the enormous task of appraising and accounting for everything which was lost as a result of the fire at Eastern. After contacting school districts around the country who have incurred similar losses, she recommends the board seek help to maximize the collection of the loss of all items in the building in addition to the physical structure. The administration created a team which included Chief Finance Officer Sharon Ozment and Program Administrator of Fixed Assets/Risk Management Wanda Frazier to investigate the use of a loss consultant and appraiser company. The team interviewed three companies and recommended that the board employ Alex N. Sill Company and authorize Jill Wilson and Sharon Ozment to negotiate a fee structure with the company.

Motion was made by Susan Mendenhall, seconded by Marti Sykes, to employ Alex N. Sill Company and authorize Attorney Jill Wilson and Chief Finance Officer Sharon Ozment to negotiate a fee structure with the company. The motion passed upon unanimous show of hands.

C. Purchase of Land
Chief Operations Officer Kevin Lear led a discussion regarding the administration’s recommendation to purchase 6.325 acres of land adjacent to the Eastern Guilford High School site. This land was surveyed and appraised at $9,000 per acre. Administration contacted the owner of the land, Mr. Eugene T. Painter, who signed an option to sell this property to GCS for $56,925.00.

Motion was made by Anita Sharpe, seconded by Dot Kearns, to authorize the superintendent to purchase 6.325 acres of land adjacent to Eastern Guilford High School at a price of $56,925.00 from Eugene T. Painter, conditional on the completion of the Phase I environmental study and conditional on approval of the price to be paid for the real estate by the County Commissioners. Following those conditions, the staff is authorized to complete the purchase with no further action by the board. The motion passed upon unanimous show of hands.

D. Rebuilding of Eastern Guilford High School
Superintendent Grier led a discussion regarding the rebuilding of Eastern Guilford High School. The estimated cost to rebuild the school is $51 million. Possible revenue sources include: $27.7 million from the Pleasant Garden, Union Hill and Gateway West projects; $10 million currently available from insurance company; $41 million from certificate of participation notes; $41 million from bond referendum. Certificate of participation notes options were discussed further.

E. $127.3 Million Certificate of Participation Notes (Scenario 1)
A certificate of participation notes scenario in the amount of $127.3 million includes:

1. $41 million to rebuild Eastern High ($3.221 million of lottery money);
2. $31 million for Jamestown Middle School ($2.435 million of lottery money);
3. $31 million for Ragsdale High School ($2.435 million of lottery money);
4. $24.3 million balance left in CPN ($1.909 million of lottery money).

F. $127.3 Million Certificate of Participation Notes (Scenario 2)
Another certificate of participation notes scenario in the amount of $127.3 million includes:

1. $41 million to rebuild Eastern High ($3.221 million of lottery money);
2. $93.3 million to purchase/renovate Carolina Corporate Center
1. Renovate 215,000 square feet for high school use ($18.3 million with $1.438 million in lottery money)
2. New construction of auditorium, gymnasium, auxiliary gymnasium, stadium, athletic fields, site improvements, etc. ($18.4 million with $1.446 million in lottery money)
3. Furnishing, equipment, technology, design fee, soft cost, contingency, etc. ($16.6 million with $1.304 million in lottery money)
4. Cost of purchasing building ($40 million with $3.142 million in lottery money)
3. $41 million + $93.3 million = $134.3 million – a shortfall of $7 million (would require an additional $550,000 to finance $7 million over 20 years)

Discussion followed regarding costs for renovation and purchase of the Carolina Corporate Center. Joe Hill of contracted services presented information to the board regarding specific code requirements that would have to be complied with in order to change the building from business use to school use.

G. 2007 Eastern High Housing Options
Superintendent Grier led a discussion regarding Eastern High housing options (listed below) for 2007.

1. Remain in current location(s)
1. spent $500,000+ at Millennial Campus for code compliance
2. cost of approximately $485,000 per year in additional dollars to transport Eastern students to current sites
3. no contract with GTCC for 2007-08
2. Lease Carolina Corporate Center
1. 150,000 square feet
2. lease cost - $5.58 per square foot average for two years = $837,000/year
3. renovation cost - $50 per square foot = $7.5 million (or $3.75 million/year for two years)
3. Village at Eastern High (“pods” referenced are 19-classroom “pods”)
1. Grades 9-12
1. number of “pods” = 6
2. first year only set-up cost = $1,228,000 (includes disassembly and removal)
3. lease cost = $922,327/year
2. Grades 10-12
1. number of “pods” = 5
2. first year only set-up cost = $1,090,000 (includes disassembly and removal)
3. lease cost = $768,606/year
3. Grades 11-12
1. number of “pods” = 4
2. first year only set-up cost = $952,000 (includes disassembly and removal)
3. lease cost = $614,885/year
4. All “pod” configurations include keeping, relocating and using the 10 portable classrooms currently located on the Eastern High site.
4. Joint use of other schools (using split-schedule option)
5. All 2007 Eastern High housing costs would come from the district’s general operating budget.

 Board discussion followed regarding these options.

Motion was made by Amos Quick, seconded by Deena Hayes, to direct staff to establish the Village at Eastern High for grades nine through 12 for the 2007-08 school year in the pods.

A substitute motion was made by Anita Sharpe, seconded by Walter Childs, to place grades 10 through 12 for the 2007-08 school year in pods and grade nine either at Eastern Guilford Middle or at Gibsonville, whichever option is best academically.

An additional substitute motion was made by Kris Cooke, seconded by Dot Kearns, to give the staff direction to establish the Village concept at Eastern Guilford High School and bring a recommendation to the board at the next meeting on the best way for this to be set up in terms of grade configuration. The motion passed upon majority show of hands vote of 9-to-2 as follows: Ayes - Walter Childs, Kris Cooke, Alan Duncan, Deena Hayes, Dot Kearns, Amos Quick, Nancy Routh, Anita Sharpe and Marti Sykes; Nays – Darlene Garrett and Susan Mendenhall.

Chairman Duncan led a discussion regarding the financing options in regard to the permanent building for Eastern High School.

Motion was made by Anita Sharpe, seconded by Walter Childs, to proceed with Option E, $127.3 million certificate of participation notes, which includes $41 million to rebuild Eastern High ($3.221 million of lottery money); $31 million for Jamestown Middle School ($2.435 million of lottery money); $31 million for Ragsdale High School ($2.435 million of lottery money); $24.3 million balance left in CPN ($1.909 million of lottery money).

A substitute motion was made by Marti Sykes, seconded by Amos Quick, to seek the consent of County Commissioners for a certificate of participation note to be issued in an amount estimated to be $41 million (with the exact amount to be determined by further analysis of both the insurance proceeds and the actual construction cost) to rebuild Eastern Guilford High School. The motion passed upon majority show of hands vote of 7-to-4 as follows: Ayes - Walter Childs, Kris Cooke, Darlene Garrett, Deena Hayes, Amos Quick, Nancy Routh and Marti Sykes; Nays – Alan Duncan, Dot Kearns, Susan Mendenhall and Anita Sharpe.

Board member Susan Mendenhall requested the minutes reflect that all board members are in full support of the rebuilding of Eastern Guilford High School.

Proposed Bond Referendum Update

Chairman Duncan deferred this item to the December 5 board meeting.

Adjournment

With no further business, at 10:04 p.m., motion was made by Anita Sharpe, seconded by Deena Hayes, to adjourn the meeting. The motion passed upon unanimous voice vote.