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1 <br /> ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: May 16, 2017 <br /> Action Agenda <br /> Item No. 8-d <br /> SUBJECT: Approval of Lender for Upcoming Installment Financing <br /> DEPARTMENT: Finance and Administrative <br /> Services <br /> ATTACHMENT(S): INFORMATION CONTACT: <br /> Attachment 1. Installment Financing Gary Donaldson, (919) 245-2453 <br /> Project List Robert Jessup, (919) 933-9891 <br /> Attachment 2. Financing Proposal from Paul Laughton, (919) 245-2152 <br /> Sterling National Bank <br /> Attachment 3. Memo from Financial <br /> Advisers <br /> PURPOSE: To approve Sterling National Bank as the lender for the County's upcoming <br /> installment financing in response to Sterling's request for notification by May 30, 2017. <br /> BACKGROUND: The County has planned to undertake an installment financing for a variety of <br /> County capital projects. At its May 2 meeting, the Board held a public hearing and adopted a <br /> resolution giving preliminary approval to the financing plan, including approving a list of projects, <br /> and asking the Local Government Commission to approve the financing. Attachment 1 is the <br /> approved project list. <br /> County staff, in consultation with Davenport & Company LLC, the County's financial adviser, <br /> circulated a request for proposals to a wide variety of institutions to provide this financing to the <br /> County. The County received seven proposals. After review of these proposals in consultation <br /> with bond counsel and Davenport, County staff has determined that the proposal from Sterling <br /> National Bank is the proposal that best suits the County's needs. The Sterling proposal is <br /> Attachment 2. A memo from Davenport regarding the proposals is Attachment 3. <br /> Sterling has requested that it be formally notified by May 30 of the County's acceptance of <br /> Sterling's proposals. Tonight's action encompasses the Board approving Sterling as the <br /> financing provider so that staff can provide notice to Sterling. The Board's approval is subject to <br /> completion of financing documents and the LGC's approval of the financing. <br /> At the June 6 meeting, the Board will be asked to consider a resolution approving substantially <br /> final financing terms and documents. June 6 is also the scheduled date for consideration of the <br /> County's financing application by the North Carolina Local Government Commission. County <br /> staff has been in contact with LGC staff and anticipates no issues in obtaining LGC approval. <br /> County staff expects that the loan will close on or about June 15. <br />