|
5
<br />_~]~
<br />F ~ 1S9
<br />Chairman Walker referred the Board to Item 4 of the Agenda entitled
<br />Enaatment of Resolution approving Consumers Utility Corporation and its Bonds.
<br />The County Administrator presented a Resolution that he had received from John
<br />McKee,
<br />RESOLUTION OF TFi/ BOARD OF COMMISSIONERS OF
<br />ORANGE COUNTY
<br />APPROVING CONSUN~RS UT IL TTY CORPORATION OF
<br />ORANGE COUNTY ATdD ITS BONDS
<br />"WIiEc~EAS, the University of North Carolina at Chapel Hill, an
<br />• _ institution of higher education of the State of North Carolina ('$he
<br />University"), has for many years owned and operated water, sewer,
<br />electric and telephone systems ("the Systems'), and h&s provided
<br />therefrom such utility services within a service area aonaiating not
<br />only of the University itself, but also portions of the County of
<br />Crange, including the Town of Chapel Hi11 and the Town of Carrboro,
<br />and some adjacent smaller areas of the County of Durham and the County
<br />of Chatham, all political subdivisions or instrumentalities of the
<br />State of T7orth Carolina; and
<br />WHEREAS, a special aommisaion ("the Churah Commission"), appointed
<br />by the Governor of the State of North Carolina pursuant to 1971 N. C.
<br />Sass, Lawa, Ch. 723, has recommended, however, the divesture of the
<br />Systems by the University, and the Church Commission has issued
<br />prospecti with respect to the Syatema, and the sale thereof, and will
<br />receive formal bide therefor up to N.arch 1, 1971}; and
<br />47HEREAS, to assure the provision of adequate, dependable and
<br />economical water, sewer, electric and telephone utility services to
<br />said political subdivisions, and the inhabitants thereof, including
<br />the University, public'-spirited and civic-minded residents thereof
<br />determined to form the Consumers Utility Corporation of Orange County
<br />("the Corporation") under the State's general nonprofit corporation
<br />law for the purpose of accuiring, improving and operating the Systems
<br />for the beneficial use of such political subdivi.aicns and the general,
<br />public therein; and
<br />WHE~sF.S, the Corporation proposes to issue its bonds, notes and
<br />other evidences of indebtedness, both long-term and short-term ("the
<br />Bonds"), in ore or mcre series for the purpose of financing the
<br />acquisition and improvement of the Systems, in an aggregate principal
<br />amount auffiaient therefor; and
<br />WHEREAS, the Bonds will be secured by an exclusive pledge of and
<br />lien on the revenues of the Systems derived from the Corporation's
<br />ownership and operation thereof, including revenues derived from rates
<br />and ahargea imposed for the use of the services and facilities of the
<br />Systems, and any other funds which may be lawfully applied thereto,
<br />except, however, for any short-term Bonds which may be additionally
<br />secured by and be payable from the proceeds of the sale of long-term
<br />Bonds; and
<br />WHEREAS, the Bonds will be issued pursuant to indentures, bend
<br />resolutions or similar security documents ("the Indenture") in customary
<br />form, ar_d containing the usual terms, conditions and provisions,
<br />including those creating trust funds and accounts, prescribing covenants,
<br />fixing terms and conditions under which additional bonds, notes and other
<br />evidences of indebtedness ("Additional Bonds") may thereafter be
<br />issued on a parity with the Bonds for the corporate purposes of the
<br />Corporation, for the financing of additions, improvements, betterments
<br />and extensions, and for the refunding of Bonds and Additional Bonds,
<br />and provisions pertaining to the trustee, defaults and remedies and
<br />related matters; and
<br />WH~AS, under the proposed Indenture, the revenues derived from
<br />the Systems by the Corporation will be pledged to the payment of the
<br />debt service an the Bonds, the payment of op oration and maintenance
<br />expenses and the costa of making additions, improvements, betterments and
<br />extensions, and the maintenance of reasonable reserves for, or
<br />appropriate to, any of the foregoing.
<br />NOW, TORE, IT IS HEREBY DrTERMINED AND ORDERED, ghat the
<br />Consumers Utility Corporation of Orange County, and its Bonds, are
<br />_ app=owed.
<br />T4aved by Commissioner Henry S, Walker, aeaonded by Commissioner
<br />Richard E. Whitted, and adopted by the following votes: Yea Chairman
<br />Norman Walker, Commiasinners Flora Garrett, Henry 5. Walker, Melvin
<br />Whitfield and Richard E. W2?itted, Nay: None
<br />this 18th day of December, 1973.'
<br />
|