Guilford County Board of Education
Board Meeting
November 8, 2007

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

The Guilford County Board of Education met in a special called meeting for the purpose of considering funding issues for Eastern Guilford High School at 7:30 a.m. on Wednesday, October 17, 2007 at 712 North Eugene Street, Greensboro, North Carolina.  The following board members were present:  Jeff Belton, Alan Duncan, Deena Hayes, Garth Hébert, Amos Quick, Nancy Routh and Anita Sharpe. Board members Walter Childs, Kris Cooke, Darlene Garrett and Dot Kearns were absent.  Also present was Attorney Jill Wilson.

Call to Order

Chairman Alan Duncan called the meeting to order at 7:32 a.m.

Pledge of Allegiance and Moment of Silence
Vice-Chairman Amos Quick led the Pledge of Allegiance and a moment of silence.

Approval of 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 Nancy Routh, seconded by Anita Sharpe, to approve the agenda as presented. The motion passed upon unanimous voice vote.

Eastern Guilford High School Cash Flow

Attorney Jill Wilson presented to the board for its consideration the Memorandum of Understanding which follows:

This Memorandum of Understanding is made and entered into the ___ day of _______, 2007, by and between the Guilford County Board of Education, a local education agency organized and existing pursuant to the laws of the State of North Carolina (hereinafter referred to as “the Board”) and the County of Guilford, a body politic and corporate organized and existing pursuant to the laws of the State of North Carolina (hereinafter referred to as “the County”).

WITNESSETH:

         THAT WHEREAS the unexpected destruction of Eastern Guilford High School has displaced and disrupted both the students and the community as well as adversely affected the Board’s long-range Renovation and Expansion plans for the Guilford County School system; and

         WHEREAS, pursuant to N.C. Gen. Stat. § 115C-408(b), the County is primarily responsible for financing the capital needs of the public education system in Guilford County;

         NOW, THEREFORE, intending to clarify the roles and positions, the Board and County acknowledge the following agreement:

1.  The County and Board are mutually committed to rebuilding Eastern Guilford High School.

2.  The Board has estimated that the entire cost of rebuilding Eastern Guilford High School will be approximately Sixty-one Million Dollars ($61,000,000) with a projected debt not to exceed Forty-seven Million Dollars ($47,000,000) after application of the projected Fourteen Million Dollars ($14,000,000) from the outstanding insurance claim.

3.  The Board consents to transfer the unencumbered money from other existing construction projects previously approved in a bond referendum as well as the unspent money from finished projects, also approved in the bond referendum as well as the interests proceeds from investments of unspent project allocations which are not currently being used to service bond debt to provide temporary funds to finance the rebuilding of the Eastern Guilford High School as specifically designated in Schedule A attached hereto and made a part of this Memorandum of Understanding.

4.  Further, the Board acknowledges it will apply insurance proceeds received to compensate the Board for loss of the capital assets to be used in the rebuilding of Eastern Guilford High School pursuant to N.C. Gen. Stat. § 115c-449.

5.  The County agrees that the rebuilding of Eastern Guilford High School will be its primary capital improvement project until it is completed. Further, the County will direct all resources necessary to ensure the rebuilding is accomplished through the proceeds of a planned bond referendum in 2008 or if the voters reject that referendum, through means of N.C. Gen. Stat. § 160A-20 (Installment financing).

6.  Further, the County commits to replenish the funds transferred from previously approved projects as described above that are used to finance the Eastern Guilford rebuild through either bond proceeds (future referendum) or installment financing. All transferred funds will be replenished as needed by the Board in compliance with attached Schedule B, but in any event no later than June 30, 2010.

IN WITNESSETH WHEREOF, the parties have caused this Memorandum of Understanding to be executed by the authorized representatives by authority duly given, on the date first-above written.

THE COUNTY OF GUILFORD                           GUILFORD COUNTY BOARD OF
                                                                              EDUCATION
Seal by:                                                                 Seal by:

________________________ Date ______        ________________________ Date ______
Paul Gibson, Chairman of the                              Alan Duncan, Chairman
Guilford County Board of
Commissioners

Attest:                                                                    Attest:

________________________ Date ______        ________________________ Date ______
By: Efthemia D. Varitimidis                                  By: Terry B. Grier, Superintendent
Clerk to the Board

SCHEDULE A
Temporary Funding Sources

SCHEDULE B
Replenishment of Temporary Funding Sources

Motion was made by Anita Sharpe, seconded by Jeff Belton, to approve the Memorandum of Understanding, including Schedules A and B, as presented. The motion passed upon majority electronic vote of 6-to-1 as follows: Ayes – Jeff Belton, Alan Duncan, Deena Hayes, Garth Hébert, Nancy Routh and Anita Sharpe; Nays – Amos Quick.

Adjournment

With no further business, at 7:34 a.m., motion was made by Garth Hébert, seconded by Deena Hayes, to adjourn the meeting. The motion passed upon unanimous voice vote.