The Capital Projects and Bond Oversight Committee met on Tuesday, November 21, 2006, at 1:00 PM, in Room 169 of the Capitol Annex. Representative Mike Denham, Chair, called the meeting to order.
Present were:
Members: Senator Elizabeth Tori, Co-Chair; Representative Mike Denham, Co-Chair; Senator Tom Buford; and Representatives Paul Marcotte and Jim Wayne.
Guests testifying before the Committee: Jim Abbott, Nancy Brownlee, and Patrick McGee, Finance and Administration Cabinet; John Hicks, Governor's Office for Policy and Management; Garlan Vanhook, Doug Teague, and James Bauman, Administrative Office of the Courts; George Zubaty, Judge Executive, and Kenny French, Judge Executive-Elect, both of Gallatin County; Larry Owsley, University of Louisville; Bob Wiseman, University of Kentucky; John Osborne, Western Kentucky University; Dewey Yeatts, Murray State University; Steve Reeder, Kentucky River Authority; Terry Fugate, Office of Financial Management; Dennis Humble, Kentucky Housing Corporation; and Sandy Williams, Kentucky Infrastructure Authority.
LRC Staff: Nancy Osborne, Pat Ingram, Shawn Bowen, Bart Hardin, Kristi Culpepper, and Debbie Rodgers.
Representative Denham requested that Nancy Osborne, Committee Staff Administrator, review the correspondence and information items. Ms. Osborne said there was one item of correspondence from the Department of Commercialization and Innovation reporting the transfer of $4.7 million from the Cabinet for Economic Development's operating budget of $5 million in each fiscal year to the life sciences commercialization program for the Commonwealth seed capital program, the state's venture capital program.
The next item addressed by Ms. Osborne was an information item relating to the Settlement Agreement executed October 17, 2006, for the Little Sandy Correctional Complex in Elliott County. The new prison was built using the design/build alternative construction delivery method, whereby a single procurement is used to hire a team to both design and build the project. The state contracted with the design/build team in October 2001, and in 2005, significant construction issues at the prison were reported. Multiple lawsuits were filed, including suits between the design firm and the construction firm.
Representative Denham asked if all repairs at the prison are substantially complete. Mr. Jim Abbott, Commissioner, Department for Facilities and Support Services, Finance and Administration Cabinet, responded that the contractor, Ray Bell Construction, has completed all repairs. He said there was well in excess of $1,000,000 worth of corrective action taken by the contractor to bring the workmanship quality up to the Cabinet's standards. Mr. Abbott said an additional $174,000 was deducted from the contract for items such as concrete work that could not be corrected, but were not detrimental to the operation of the building. He said after working through many issues, the Commonwealth is pleased with the facility.
Representative Marcotte asked what lessons were learned from utilizing this construction method. Mr. Abbott said if this project delivery method is used in the future, additional state agency staff would be on-site to monitor design changes and observe the construction quality. He said unlike the traditional design-bid-build project delivery method, whereby one has a clear understanding of the product to be delivered at the end of the process, with the design-build project delivery method, the design is not completed prior to initiating construction, and the project moves quickly so as to expedite the construction process. Also, with this alternative project delivery method, more attention must be paid to the design decisions being made by the design-build team on-site during construction.
Mr. Abbott said that after construction issues at the Little Sandy Correctional Complex were noted by state agency personnel, more due diligence in terms of investigating on-going site work was done. This in turn led to discussions with the contractor, who corrected a number of items before the building was deemed acceptable by the state.
The next information item Ms. Osborne discussed was the status of the lawsuit relating to the Department of Corrections, Division of Probation and Parole lease in Campbell County. This lease was awarded to EGC on an emergency basis and reported to the Committee in June 2006. After the lease was awarded to EGC, one of the three competing offerors, EHI, filed suit in Federal District Court contesting the award of the contract and seeking an injunction. In August, a hearing was conducted and the court denied EHI's motion for an injunction. At the same hearing, the state filed a motion to dismiss the case. On October 24, the federal judge ruled in the state's favor and EHI filed its appeal of that ruling.
Senator Tori asked when a decision is expected on the appeal. Patrick McGee, Counsel to the Finance Cabinet, said the Notice of Appeal is the first step in the process and a telephonic mediation conference is scheduled for December 7. At a minimum, he said the case would take six months; however, if oral arguments are requested by the courts, it could take considerably longer.
In response to another question from Senator Tori, Mr. McGee said the Finance and Administration Cabinet's Office of Legal Services will represent the Commonwealth on appeal and at any future proceedings in the case.
Representative Wayne said that when the Committee had a quorum present, he would make a motion to further investigate the lease process at the state level.
Ms. Osborne reviewed the monthly Staff Update, which included an article from Moody's Investors Services discussing credit impacts of rising construction costs, and a press release announcing renovation projects at Kentucky Dam Village State Park and at Lake Barkley State Park funded by the $60 million Parks Renovation Pool. Also discussed was an article pertaining to the state's re-issuance of a Request for Proposals (RFP) seeking private development and operation of a hotel complex at the Kentucky Horse Park. In late 2005, the state selected Koll Development Company of Dallas, the sole responder to the initial RFP, to develop a 250-room, four-diamond hotel. The state was unable to negotiate final terms with the firm so a new RFP was issued November 1, 2006, for a 200-room, three-diamond hotel. Responses were due December 1, with a short list of bidders to be selected by December 15, and the final selection by April 15, 2007, to get the complex ready for the 2010 Equestrian Games.
In response to a question from Representative Denham, John Hicks, Deputy State Budget Director, Governor's Office for Policy and Management, said the federal Credit Rating Agency Reform Act, signed into law September 29, has had no impact on the Commonwealth's credit rating. He added that the Act resulted in the release last summer by Moody's of a score card, a methodology Moody's uses to help quantify how they rate states to create more transparency. He said he would make this information available to staff. He noted that S&P and Fitch have not expressed any methodological change in their approaches to state issuers.
In response to a question from Senator Tori regarding an article in the Staff Update, Mr. Abbott said the Grocery Store project at Green River Lake State Park in Campbellsville is an upgrade to the existing facility. He said he would provide further information to the Committee.
The final information item reviewed was a report from the Court Facilities Standards Committee relating to the status of court facilities construction projects in Adair, Grant, Grayson, and Livingston counties.
Noting the presence of a quorum, Representative Denham asked that the roll be taken. Representative Marcotte made a motion to approve the minutes from the October 16, 2006, meeting. The motion was seconded by Representative Wayne and approved by voice vote.
Representative Denham then recognized Representative Wayne for his motion relating to the Probation and Parole Office lease in Campbell County. Representative Wayne said the Probation and Parole staff were experiencing problems due to sewage discharges at the space that had been leased from the Kenton County Fiscal Court. In the course of the state's desire to relocate staff, some questions were raised about the new lease, which in turn led to the federal court lawsuit. He then made a motion that the Committee request the Auditor's Office to review this lease. The motion was seconded by Senator Tori and passed unanimously by voice vote.
Representative Denham then asked Garlan Vanhook, General Manager of Facilities, and Doug Teague, Budget Director, Administrative Office of the Courts (AOC), to discuss a cost overrun for the Bullitt County Judicial Center.
Mr. Vanhook reported that construction on the Bullitt County Judicial Center, with the exception of the casework, is complete. In April 2004, the entire project team defaulted on this project. As a result of this, Mr. Vanhook said settlements have been reached with all of the contractors impacted by the default, except the original HVAC contractor, whose case is scheduled for arbitration in February 2007.
Mr. Vanhook said the project will be finished within its authorized budget ($16,096,115), as adjusted by the 15% allocation from the Court Facility Use Allowance Contingency Fund approved by the Committee in May 2006. The completion date is now scheduled for April 2007. He added that the new Bullitt County Court facility is a very good structure that will serve the county exceptionally well, regardless of the circumstances of its construction process.
Representative Denham asked if the bonding for the various contractors who defaulted was adequate. Mr. Vanhook replied that all the contractors are 100% bonded, meaning if the contract is for $100,000, the bond must be $100,000 also. He said in his experience the main problem was getting the bonding agent to timely meet with the state after the contractor's default in order to satisfy the state's claim. Representative Denham said there was no action required on this project.
Mr. Vanhook said AOC is requesting a 15% ($29,850) increase in the Gallatin County's Court Facility project's authorized use allowance. This project, for an addition to the facility, was authorized by the 2005 General Assembly at a scope of $2,229,000, and a maximum annual use allowance of $199,000.
Mr. Vanhook said AOC bid the project with the authorized addition as the base and improvements to the existing facility as alternates. As the addition to this historic structure was being designed, staff decided to develop a master plan for the entire facility to improve its function as a modern building. The 15% allocation would be solely for the addition. Other improvements to the existing building would be done as AOC has funds in its maintenance and operations account.
Representative Denham asked if AOC provides the maintenance on the cameras and equipment that connects the jails and the courtrooms for remote testimony. He commented that he had received calls from some constituents stating that AOC has declined to pay the maintenance cost. Mr. Vanhook said AOC funds cannot be used to underwrite the jail side connection to the video arraignment process. He said the local government must support the local costs for the connections in the jails. He said he would look into the matter and communicate his findings to Committee members.
Representative Denham asked for additional information regarding bid alternate #4. Mr. Vanhook said bid alternate #4 is an electric transfer switch for a mobile generator to provide power during emergencies. He said this is a safety feature all new structures include, and it was a desired improvement listed in the master plan.
In response to a question from Representative Wayne, Mr. Vanhook said this project is underfunded because the project scope and the use allowance were developed in AOC's 2002-04 budget request, and not adjusted for inflation or commodities price increases prior to authorization by the 2005 General Assembly. He said the General Assembly authorized the addition, and the Court Facilities Standards Committee has approved the 15% increase for the project. Mr. Vanhook noted improvements to the existing building must be done with other funds.
Representative Wayne asked what the fund source is for the bid alternatives. Mr. Vanhook said the funds would come from the AOC budget for maintaining and operating existing facilities, and would occur over multiple years as funds become available.
Representative Wayne asked if AOC has its own contingency account and whether projects funded from the account that cost more than the capital budget threshold should be reported. Mr. Vanhook said AOC utilizes a maintenance fund and not a contingency fund, and that the project dollar amounts are below the capital budget reporting threshold.
Representative Marcotte noted that the Gallatin County Court facility is a historic building. He asked if the addition is designed to complement the original building. Mr. Vanhook said the architects have done an excellent job in addressing the design of the addition. He introduced George Zubaty, current County Judge-Executive and Kenny French, County Judge-Executive elect, who have both been involved in all the design. Mr. Zubaty said one of his priorities has been to ensure the integrity of the 1838 structure, and this new addition will complement the current court facility. He added that there have been discussions with the Historical Society as the project was developed. Representative Marcotte said he thought this was a well thought-out project and would finally make the courthouse accessible to the handicapped. He thanked Mr. Zubaty and Mr. French for coming to the meeting and for their service.
Senator Buford asked for clarification of the bid specifications for repair of the exterior masonry finish. Mr. Vanhook said since the masonry repairs were not quantified in the request for bids, the bidder added a note stating that his bid did not cover those costs. Mr. James Bauman, the AOC architect, added that the budget includes a 5% contingency for addressing cost overruns and items such as spot masonry repairs.
In response to another question from Senator Buford, Mr. Bauman replied that the project budget has approximately $100,000 that has not been allocated.
Representative Marcotte made a motion to approve the allocation from the Court Facility Use Allowance Contingency Fund. The motion was seconded by Senator Tori, and approved unanimously by roll call vote.
Representative Denham next welcomed Larry Owsley, Vice President for Business Affairs, University of Louisville (UL). Mr. Owsley reported a long-term land lease for private development of a 170,000 SF clinical practice building on the UL Health Sciences Center campus. Mr. Owsley said the UL Board of Trustees approved this lease at its September 2006 meeting, and it is being reported pursuant to the Committee's policy statement adopted in November 2002 regarding non-state development on state-owned property.
Mr. Owsley said the University will lease 1.1 acres to a new entity called University/Faculty Office Building, LLC, to be owned 51% by Landmark Development Corporation, a faculty office/practice building entity, and 49% by University Physicians Group, Inc. (UPG), a 501(c)(3) corporation set up to promote clinical operations at UL. This building will centralize operations of 461 clinical faculty who conduct private practices in facilities scattered throughout Louisville, Jefferson County, and Southern Indiana. Mr. Owsley said the facility will cost $40 million to construct, and will be financed with $8 million in cash ($3.9 million paid by UPG and $4.1 million paid by Landmark), and $32 million financed by Landmark Development Corporation. The lease will have an initial term of 50 years with an option to renew for two twelve year terms.
Mr. Owsley said no state funds will be utilized for construction of the facility, construction will be managed by the private development group, and prevailing wage will be paid.
Representative Wayne noted that a resolution issued by the UL Board of Trustees designated up to $10 million in health sciences resources for the project. He asked Mr. Owsley to clarify this source of funding. Mr. Owsley said a larger figure than necessary was used when this resolution was prepared. He said $3.9 million in funding from the private practice groups would be designated for this project, and no University funds will be used.
Representative Wayne asked why this project did not go through the budget process. Mr. Owsley said that when UL was developing its budget, the project was not far enough along for inclusion in the process. He said the University has discussed with staff that any future items like this will come through the routine capital and budget processes.
In response to a question from Representative Denham, Mr. Owsley said the property will revert back to its current use as a parking lot after 74 years to be consistent with statutes that if debt financing is used, the property is to be returned to its original condition unless the project is approved in advance by the General Assembly. Representative Denham said no action is required on this information item.
Bob Wiseman, Vice-President for Facilities Management, University of Kentucky (UK), reported the unbudgeted purchase of three items of medical equipment, each costing in excess of $200,000. Each item will be purchased via a five year lease-purchase agreement and financed with restricted funds. No action was required for this item.
Representative Denham then asked John Osborne, Associate Vice-President of Campus Services and Facilities at Western Kentucky University (WKU), to discuss two scope increases for WKU construction projects. Mr. Osborne said WKU is requesting scope increases for the Student Health Services Building project and the Student Publications Facility project. He said the University has certified that sufficient funds are available to complete both projects, and the scope increases are necessary due to changes in the construction market, mainly the increased cost of steel and copper.
The first scope increase was for the Student Health Services Building project. This project was authorized by the 2005 General Assembly as a $5 million project utilizing $4 million in agency bonds, and $1 million in restricted funds. The University is requesting a $750,000 scope increase to be funded with restricted funds. Mr. Osborne said construction of this building is scheduled for completion in November 2007, and if the requested scope increase is approved today, the revised scope will be $5,750,000.
Representative Wayne said he realized WKU was relatively new to the procedures required of a University that has requested and received authority from the Finance Cabinet to manage its own construction program. He asked if the University understood the need to receive approval for scope increases from the Committee and not to execute such increases on their own. Mr. Osborne said there was a misunderstanding at the University as to whether the process required a scope increase to only be reported to the Committee, or to be submitted for Committee approval. He said through discussions with Committee staff, WKU now understands the process. Representative Wayne said he appreciated that WKU brought the requests forward and that he considered this part of the learning process.
Senator Buford made a motion to approve the scope increase for the WKU Student Health Services Building project. The motion was seconded by Senator Tori and passed unanimously by roll call vote.
Mr. Osborne then reported a scope increase for the WKU Student Publications Facility project. This project was authorized by the 2005 General Assembly at a scope of $1 million in restricted funds. He said the University is requesting a scope increase of $600,000 to be funded with private funds from the WKU Foundation.
Mr. Osborne said the contract for this 6,700 SF project has not been awarded, and the project will be re-bid once WKU has re-engineered the project to reduce the scope. He said construction is scheduled for completion in August 2007, and if today's request for a scope increase is approved, the revised project scope will be $1,600,000.
In response to questions from Representative Wayne, Mr. Osborne said the estimated cost of the project when it was initially bid was just under $1 million. He said there were some add-alternates for additional storage and other amenities that were desired, and as a result of a fundraising campaign conducted by the WKU Foundation, those add-alternates will be included in this project. To date, WKU has received private donations in the amount of $900,000.
Senator Buford made a motion to approve the scope increase for the WKU Student Publications Facility project. The motion was seconded by Senator Tori and passed unanimously by roll call vote.
Representative Denham welcomed Dewey Yeatts, Chief Facilities Officer and Associate Vice-President of Murray State University (MuSU). Mr. Yeatts said MuSU is requesting approval for an unbudgeted project to replace the turf surface on its football field at Stewart Stadium. The scope of the project is $1.2 million, and will be funded with $600,000 in private gifts received from the MuSU Foundation, and $600,000 in restricted funds from the University.
Mr. Yeatts said the existing artificial turf was installed during the summer of 1996. The industry standard for this product is eight years, and the field is now past its useful life. He noted some design may be done in-house and that the project is to be completed prior to the 2007 football season.
Senator Buford made a motion to approve the Stewart Stadium Turf Replacement project. The motion was seconded by Representative Wayne and passed unanimously by roll call vote.
Representative Denham asked Mr. Hicks and Mr. Abbott to present the monthly project report submitted by the Finance and Administration Cabinet.
Mr. Hicks first reported a $3,263,000 federally funded scope increase for the Department of Veteran's Affairs, Alzheimer's/General Care Unit project at the Western Kentucky Veteran's Center. This project was authorized by the 2006 General Assembly at a scope of $1,757,000 in state bond funds, and if the scope increase is approved, the revised scope will be $5,020,000.
Mr. Hicks added that this scope increase will represent the 65% federal match required for the project. He said while there has been no decision announced by the federal government on funds allocation, action by the 2006 General Assembly to appropriate the state match enhances the likelihood of approval at the federal level.
Senator Buford made a motion to approve the scope increase. The motion was seconded by Senator Tori and passed unanimously by roll call vote. Representative Wayne explained his Yes vote. He said he believed this project to be a federal responsibility that should not require state funds, but he voted Yes because it is an excellent project.
Mr. Hicks next reported a Community Development Fund grant of $247,500 to the Owensboro Community and Technical College. The funds will be used to purchase motor control learning systems for the college’s Advanced Technology Center.
Mr. Hicks said the funds for this grant are available from the Community Development Fund Projects authorization (2006-08 Budget HB 380), and are administered by the Governor's Office for Local Development (GOLD). He said the majority of these funds were specific line-item projects authorized in the budget bill, but approximately $3,000,000 of the total appropriation was left undesignated. Of these undesignated funds, GOLD has allocated $247,500 to the Owensboro Community and Technical College. He said the Finance Cabinet is reporting this item as an allocation from a pool costing over $100,000, and also as equipment costing more than $100,000 to the receiving entity.
Representative Denham asked what is the balance of uncommitted funds. Mr. Hicks responded that he was not sure, but that GOLD is working on a process for determining the allocation of the remaining balance of the funds.
Representative Denham asked if this type of funding is available in every budget. Mr. Hicks responded that typically this type of funding is not available in every budget, and he was unaware of the reasons for doing so. He noted that this was not the case for the Kentucky Infrastructure Authority grant pools for coal and non-coal counties, but in the case of the Community Development Fund Projects, there was unallocated money available, and this is the first project to be reported from those funds.
Mr. Hicks then reported an allocation of $568,000 from the Kentucky Heritage Land Conservation Fund to the Kentucky State Nature Preserves Commission, to add 329 acres to the Three Ponds State Nature Preserve in Hickman County. Mr. Hicks said this allocation exceeded the $400,000 reporting threshold.
The next allocation reported by Mr. Hicks was $19 million from the $37.8 million Kentucky River Locks and Dams Maintenance and Renovations Pool. Of this allocation, $17.5 million will be used for the Dam 9 Renovation and Water Storage Enhancement project near Valley View in Jessamine County, and $1.5 million will be used for the design phase of the Lock and Dam 3 and Lock 4 Renovation project.
Representative Wayne asked if an environmental impact study had been completed to determine if the increased draw from the river will have any environmental impact. Steve Reeder, Director of the Kentucky River Authority, responded that an environmental impact study was conducted and there will be no significant environmental impact. He added that the design work and all environmental permits have been secured on the Dam 9 project.
The last items Mr. Hicks reported were three allocations from the Fees-in- Lieu of Stream Mitigation Fund for Department of Fish and Wildlife Resources projects in excess of $400,000. The projects are Slabcamp Branch/Stonecoal Branch in Rowan County ($1,905,000), Curry's Fork in Oldham County ($878,700), and Trammel Creek in Allen County ($561,000).
Representative Denham said report of allocations from various pools is required by the budget bill and that no further action is required.
Representative Denham introduced Nancy Brownlee, Director of the Division of Real Properties. Ms. Brownlee reported a new lease for the Commonwealth Office of Technology (PR-4817) in Franklin County. She said during the renewal process for this lease, the lessor indicated that he planned to raise the rent. In response, the Division of Real Properties conducted a competitive bid process and the lease was awarded to the lowest bidder, Elois Peach. The new lease has an annual cost of $101,727, and an initial term of three years.
Senator Tori made a motion to approve the new lease. The motion was seconded by Representative Wayne and passed unanimously by roll call vote.
The next report was provided by Ms. Terri Fugate, Deputy Executive Director, Office of Financial Management (OFM). She said OFM submitted four new bond issue reports to the Committee this month. The first new bond issue Ms. Fugate reported was Western Kentucky University (WKU) General Receipts Bonds, 2006 Series A, dated December 19, 2006, with gross proceeds of $10,000,000. This is the first general receipts indenture issued by the University, and proceeds will provide financing to initiate five projects authorized from agency bonds by the General Assembly in the 2004-06 budget for a total of $24.5 million.
Representative Wayne asked if this change to the University's debt structure will affect its bonding capacity. Ms. Fugate said she was not sure of the impact this change would have. She noted that these are agency bonds and that general receipts revenues will be pledged towards this indenture, which is a broader base than the pledge for Consolidated Education bonds.
Jim Cummings, WKU Controller, responded that this is a new general receipts indenture and the $10,000,000 represents the first bonds that will be issued under the new indenture. He said the University believes it can issue these bonds and still have substantial capacity beyond this issue. Mr. Cummings said Western plans to issue other bonds in March 2007 for the balance of funding for the five projects.
Representative Marcotte made a motion to approve the new bond issue. The motion was seconded by Representative Wayne and passed unanimously by roll call vote.
Ms. Fugate then reported a new Kentucky Housing Corporation (KHC) bond issue: KHC Single Family Housing Revenue Bonds, 2007 Series A, B, C & D, in an amount not to exceed $110 million. The proceeds from this bond issue will provide mortgage financing for first-time low and moderate income Kentucky homebuyers.
Representative Wayne made a motion to approve the new bond issue. The motion was seconded by Senator Buford and passed unanimously by roll call vote.
The next new bond issue presented was KHC Conduit Multifamily Mortgage Revenue Bonds, 2006 Series A (Arbors of Glasgow Apartments). The proceeds from this issue are $1,660,000, and will be used to provide for the rehabilitation of a 76-unit Section 8 apartment building in Glasgow, Kentucky.
Senator Tori made a motion to approve the new bond issue. The motion was seconded by Senator Buford and passed unanimously by roll call vote.
The final new bond issue Ms. Fugate reported was KHC Conduit Multifamily Mortgage Revenue Bonds, 2006 Series A (Arbors of Madisonville - Pennyrile Apartments) in the amount of $2,100,000. The proceeds will be used to rehabilitate a 100-unit Section 8 apartment building in Madisonville, Kentucky.
In response to a question from Representative Wayne, Dennis Humble, Chief Financial Officer of KHC, replied that in accordance with the Committee's policy regarding conduit bond issues for multifamily housing projects, all local legislators and officials in Madisonville and Glasgow have been informed of these two projects.
Senator Tori made a motion to approve the new bond issue. The motion was seconded by Representative Wayne and passed unanimously by roll call vote.
Ms. Fugate said there was one follow-up report included in members' folders for a previously approved bond issue: Kentucky Asset / Liability Commission University of Kentucky General Receipts Project Notes, 2006 Series A and B, and 2007 Series A, $146,430,000.
The Committee approved this bond issue at a previous meeting, and no further action was required.
Representative Denham asked how the Commission's asset/liability management strategies have served the Commonwealth given the current interest rate environment. Ms. Fugate replied that one of the advantages of the forward delivery component of this transaction is that, in marketing the issue now, the University of Kentucky has locked in a historically low rate even though some of the proceeds will not be available for a year.
Representative Denham next welcomed Sandy Williams, Financial Analyst, Kentucky Infrastructure Authority (KIA). Ms. Williams said KIA was seeking approval for two Fund A loans, a 2020 grant, and a Fund B grant. The first Fund A loan request was from the Northern Madison County Sanitation District to build a new one million gallon per day (MGD) regional wastewater treatment plant. If approved, the $6,604,622 Fund A loan will be combined with state grants, federal loans and grants, and local funds for a total project scope of $12,736,123.
Representative Marcotte made a motion to approve the loan. The motion was seconded by Representative Wayne and passed unanimously by roll call vote.
The next project was a Fund A loan request of $6,607,612 for the Ohio County Regional Water District to construct a new two MGD wastewater treatment plant to serve the cities of Beaver Dam, Centertown, and Hartford. The loan is to be combined with federal and state grants for a total project cost of $15,940,000.
Representative Wayne made a motion to approve the loan. The motion was seconded by Senator Buford and passed unanimously by roll call vote.
Ms. Williams then presented a Fund B grant request of $500,000 for the Knott County Fiscal Court on behalf of the Knott County Water and Sewer District, for the construction of water lines on Hold Branch Road and Perkins/Madden Road.
Senator Tori made a motion to approve the grant. The motion was seconded by Representative Marcotte and passed unanimously by roll call vote.
Ms. Williams said there is also a 2020 grant request of $2,000,000 for the Knott County Fiscal Court on behalf of the Knott County Water and Sewer District to build a new water treatment plant on Carr Creek Lake. The grant is to be combined with various federal loans and grants and state coal severance funds for a $10,000,000 project.
Senator Tori made a motion to approve the grant. The motion was seconded by Representative Marcotte and passed unanimously by roll call vote.
Ms. Williams concluded by saying members' folders included a report of 25 Infrastructure for Economic Development fund grants for coal producing counties and 23 Infrastructure for Economic Development fund grants for tobacco producing counties. None of these reports required Committee action.
Ms. Fugate presented 13 new school bond issues with School Facilities Construction Commission (SFCC) debt service participation: Boone County, Bullitt County, Carter County, Hopkins County (2), Jefferson County, Lincoln County, Logan County, Marshall County, Somerset Independent (Pulaski Co.), Washington County (2), and Wayne County.
Senator Buford made a motion to approve the new school bond issues with SFCC debt service participation. The motion was seconded by Representative Wayne and passed unanimously by roll call vote.
Ms. Osborne said there were eight locally–funded school bond issues submitted to the Committee for review this month: Beechwood Independent (Kenton Co.), Bullitt County, Hopkins County, Jefferson County, Lincoln County, Science Hill Independent (Pulaski Co.), Wayne County, and Webster County.
With there being no further business, a motion was made to adjourn the meeting. The motion was seconded, and the meeting adjourned at 2:50 p.m.