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39'7 Members Present: Chairman C. Norman Walker, and Commissioners Henry S. Walker, Flora Garrett, Richard E. Whitted, and Melvin Whitfield. Members Absent: None. Chairman Walker advised the Board that this meeting had been called at the request of James C. Wallace of Chapel Hill. Mr. Wallace stated that he was present as a private citizen on his behalf and some interested citizens ~ of the County and he filed the following petition and questions.with the Board: PETITION "Mr. Norman walker, chairman, and N,embers of the Orange County Board of Commissioners. On my own behalf, and on the behalf of other citizens of Drange County, I wish to petition the Board of Commissioners to seek an Advisory • Opinion from the Attorney General o£ North Carolina concerning the legal issues related to the County's participation in activities pursuant to the possible purchase and operation of certain utilities now owned by the.University of North Carolina. Specifically, I request that the Board forward to the Attorney General - for his consideration the attached list of five questions related to this matter, together with any other questions w&thh=..the Hoard might wish to add. QUESTIONS 1) Does Orange County have the authority, under the laws governing county .government (G. S. C}i., 153A) or under any other laws (such as the public utility laws, G. S.. Ch. 62, to operate an eleetric_power system or a telephone system? 2) Does Orange County have the authority to cooperate with the cities of Chapel Hill and Carrboro, under the laws governing county government (G. S. Ch. 153A), or the law governing interlocal cooperation (G. S. Ch. 160A Art. 20) or any other laws, in a joirr_ venture involving an electric r power system ar a telephone system, or both? j 3) Does Orange County have the authority to subsidize of make contributions ~ to an electric power system pr a telephone system under the laws ~ governing county government (G. S. Ch. 153A)? 4) Does the city of Chapel Hill or carrbero have the authority to subsidize or make contributions to an electric power system or telephone system under the laws governing city government (G. S. Gh, 160A)? 5) If any of the city or county participants in a joint venture involving an electric power system or telephone system lack the substantive powers referred to in questions 1-4 above, can they validly create a non-profit corporation for such purposes and appropriate funds thereto?" He stated that he felt the Gounty Board should secure an opinion from the Attorney General's office prior to proceeding with participation in the Consumer Utility Corporation. Mr. Wallace then read the following from a letter dated January 29, 1973, from the firm of Tally, Tally & Bouknight addressed to John L. McKee and George Watts Hill, Jr, "A number of problems remain to be solved, and a great deal of work is yet to be done. The first priority is an evaluation of the utility systems by nationally recognized engineers on whose opinion the banking community and potential purchasers of bonds will rely. Bankers and bondholders must be assured that the utility properties can produce revenue sufficient to pay the debt service on the bonds. Much legal work is also ahead. The North Carolina courts have never decided whether a non-profit corporation can act on behalf of several political subdivisions; however, test case involving that question is now in progress in another part of the state. Counties are not specifically granted the power to own electric or telephone utilities, and cities are not specifically granted the power to operate telephone utilities by the General Statutes of North Carolina. A court test or legislation will likely be required before this non-profit corporation may sell bonds." Discussion ensued between Mr. Wallace, Mayor Lee and Members of the Board of Commissioners. ~ Upon motion of commissioner Flora Garrett, seconded by Commissioner Rickard E. Whitted, it was moved and adopted, that before the questions submitted by Mr. Wallace are dealt with further that they (the questions) first be referred to the firm a€ Tally, Tally & Bouknight, Attorneys for the Consumers Utility Corporation for their opinion with the request that an early response be given to the Soard.