Supervisors Approve Financing For $1.92 Million Project To Upgrade Buildings
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Upchurch Services, LLC, Business Development Manager Earl Byrd (standing) reported that new HVAC system for the Water Valley courthouse has been ordered.
WATER VALLEY – Yalobusha County supervisors approved a proposal from Bank of America for 4.868 percent to finance a $1,902,410 project for upgrades at multiple county buildings including installation of new heating and cooling systems at both courthouses.
The unanimous vote came during a frigid meeting at the Water Valley courthouse on Dec. 2, as the HVAC system that heats the building is not functioning. Supervisors had previously approved the $1,902,410 proposal submitted by Upchurch Services, LLC, contingent on financing. The work includes installing new HVAC units and lighting upgrades at many county-owned buildings including the courthouses, the Multi-Purpose Building in Coffeeville, the Carother’s Complex building on County Road 436, the health department building on South Main Street in Water Valley, the Department of Human Service building on Frostland Drive in Water Valley, all five county beat barns, the county jail and sheriff’s department on Hwy. 32.
Replacing the heating and cooling systems for the courthouses is the primary catalyst for the project as costly repairs on the existing units have tallied over a half million dollars during the last five years. The project was expanded beyond the work at the courthouses to include upgrades at all county-owned buildings to generate additional energy savings that would trigger eligibility in an energy-saving program that provides options for long-term financing without issuing general obligation bonds.
Upchurch Services, LLC, Business Development Manager Earl Byrd previously told supervisors that savings generated by LED lighting upgrades, HVAC upgrades and water conservation will substantially lower utility and maintenance costs for the county. Byrd cited $36,000 in savings annually in energy usage for all of the buildings, in addition to the $100,000-plus annual maintenance costs for the heating and cooling systems in the courthouse during the last five years.
Approximately 65 percent of the total project cost, or around $1,235 million, is the price for the new heating and cooling systems for the two courthouses.
The $1,902,410 project will be financed over a 15-year period. Supervisors initially tabled proposals from four different financial institutions at an earlier meeting in November before selecting Bank of America, who submitted the lowest interest rate at 4.868 percent. BankFirst submitted the second lowest rate at 5.31 percent.
Board President Cayce Washington recommended selecting BankFirst to finance the project, explaining that the bank strongly supports the county.
“They have for a long time. They pay tax dollars, it will cost a little bit more money over the 15 years but I think they give back more to the community,” Washington explained in the Dec. 2 meeting. “But that is just my opinion, I will go with the collective will of the board.”
Board attorney Shannon Crow told supervisors that the state statute that authorizes the energy savings program does not require the county to advertise for bids for finance the project, nor were supervisors obligated to select the lowest bidder.
“I talked with an attorney at the (state) audit department and did some more research. The statute doesn’t require the bids to be advertised and if you get more than one bid, you do not have to take the lowest one or the best one in terms of the interest rate,” Crow explained.
District Five Supervisor Gaylon Gray countered, explaining that the higher interest rate would cost the county almost $80,000 more over the 15-year repayment period.
If you are buying a car, are you going with 4.8 or are you going with 5.3 (percent)?” Gray asked. “I make a motion we go with the lowest bid, I don’t think we can go wrong especially when you are saving the taxpayer $80,000,” Gray added.
Gray’s motion was seconded by District 2 Supervisor Ken Rogers and passed unanimously.
And as the temperature increased a degree in the second floor courtroom at the Water Valley courthouse, from 59 degrees to 60 degrees, Gray had another observation.
“The only reason we are heating it up today is a bunch of supervisors spitting out hot air,” Gray quipped.
