Washington County orders $171,000 electrical switchboard and advances financing plan for $70.7M Pre-K–12 school

The Washington County Board of Commissioners on March 27 authorized the county to order a back-ordered electrical switchboard priced at $171,000 to avoid delays on the new Pre-K–12 school project and discussed financing for the estimated $70,700,000 project.

County Manager and County Attorney Curtis Potter told the board the Needs-Based Public Schools Capital Fund annual report — required by April 1 — shows roughly 0.014% of grant funds spent to date, mainly on preconstruction and design expenses, and must be signed by the commissioners' chair and the school board chair. The board approved that annual report by motion of Commissioner John C. Spruill, seconded by Commissioner Ann C. Keyes, with unanimous support.

Potter described two change orders: Change Order #2 for $26,000.06 and Change Order #3 for $375,960.96. Potter said Change Order #3 includes purchasing a modular classroom (the estimate to rent a modular was about $100,000 per year), the electrical switchboard ($171,000) and a $50,000 greenhouse kit that grant funds could cover if purchased before the end of the fiscal year in June. Commissioner John C. Spruill said he had "some heartburn with the Change Orders" and questioned whether some items were included in the original design; Potter said he would provide more detail but asked the board to authorize ordering the switchboard that night. Commissioner Ann C. Keyes moved to approve ordering the electrical switchboard; Commissioner Carol V. Phelps seconded and the motion carried unanimously.

On financing, Potter introduced Ted Cole of Davenport Financial and Bob Jessup of bond counsel Sanford Holshouser. Cole presented scenarios based on the $70,700,000 estimate and said a total tax increase of about $0.11 would be the highest projected impact under the options shown. Cole recommended using Truist Bank as the lender, saying the county would fully fund an account with the loan proceeds and could earn roughly 3.5% interest on those funds. Cole said the county must name a recommended lender by March 28, intends to approve a funding agreement at the April 3 meeting, send a final resolution to the Local Government Commission the week of May 2 and close the financing by May 19.

Staff and commissioners discussed potential savings: quick-payment incentives to contractors that could recover about $1 million, eliminating liquidated damages estimated at roughly $225,000, scope reductions such as removing the second gym (potentially saving more than $2 million but creating student hardships), or removing the Pre-K component (not recommended; roughly $2 million in savings). Potter said he had requested an additional $5 million appropriation from the legislature. Staff noted roughly $9 million could be borrowed from reserves without raising taxes.

The board did not make a final financing decision March 27; Potter said the matter would return to the agenda for the April 3 meeting. The board also directed staff to bring back additional detail on the greenhouse purchase and the duplicated tree‑removal line in Change Order #2.

Actions at the meeting included a unanimous vote to approve the NBPSCP annual report, a unanimous vote to authorize ordering the electrical switchboard, and a unanimous motion to adjourn. The board signaled it will revisit the guaranteed maximum price for inclusion in the Local Government Commission package at its April 3 meeting and aims to complete the LGC submittal and close financing by mid‑May.