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1 <br />ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />Action Agenda <br />Item No 2�a -E <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: January 21, 1992 <br />SUBJECT: Appointment of Bond Counsel <br />DEPARTMENT County Manager PUBLIC HEARING YES NO X <br />ATTACHMENT(S) INFORMATION CONTACT <br />None Rod Visser, ext 2300 <br />TELEPHONE NUMBER <br />Hillsborough 732 -8181 <br />Chapel Hill 968 -4501 <br />Mebane 227 -2031 <br />Durham 688 -7331 <br />PURPOSE: To receive a report on appointment of bond counsel for a <br />possible school bond referendum. <br />BACKGROUND: The Board of Commissioners is preparing to decide at the <br />February 3 meeting whether or not to pursue a school bond referendum <br />in conjunction with the May 5, 1992 primary elections. Should the <br />Board decide to pursue a bond referendum, the County will need to <br />retain bond counsel to assist in the bond process. <br />Bond counsels are specialized practioners in the issuance of Municipal <br />Bonds. These attorneys are an essential part of the bond authorization <br />and issuance process. The underwiters and prospective bond holders <br />expect that all bonds that are issued will be accompanied by a legal <br />opinion from a recognized bond counsel attesting to the issue's <br />validity. No market would exist for bonds without such an opinion. <br />It is important to note that the opinion must come from a recognized <br />bond attorney - that is, an attorney whose work and reputation in the <br />field of municipal bonds is accepted on the national bond market. <br />Bond counsel role in the issuance process is threefold. First, he <br />drafts all documents needed to record the proceedings. Second, he <br />directs the government's officials through each step necessary to a <br />valid bond authorization. Third, he renders a legal opinion attesting <br />to the validity of the bonds. <br />orange County's current bond counsel is Brown & Wood. Gundars Aperans, <br />the firm's principal who assisted the County in the 1988 referendum and <br />three subsequent bond sales, has rendered accurate, timely, and highly <br />professional service to the County. Should the Board decide to hold a <br />May 5 referendum, the County Manager will recommend that the Board <br />retain Brown & Wood as bond counsel because of the strong performance <br />of the firm and the excellent staff working relationships. These are <br />important factors in view of the tight timeline for a possible May 5 <br />referendum. Should the Board pursue a later referendum, the County <br />