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30 <br /> <br />VOTE: UNANIMOUS <br /> <br />Bonnie Hammersley asked if the Board would move up item 7-b, upon the conclusion of <br />items 6-b and c. <br />The Board agreed by consensus. <br /> <br />b. General Obligation Bond Sale for Chapel Hill High School and Approval of Budget <br />Amendment #9-A Related to the FY 2017-18 Capital Investment Plan <br />The Board considered voting to approve Budget Amendment #9-A related to the FY <br />2017-18 Capital Investment Plan and adopt the attached General Obligation (GO) bond <br />resolution for Chapel Hill High School for the following purposes: <br />1) Formally authorize the sale of $64,400,000 in school bonds; <br />2) Formally pledge the County’s taxing power to provide for payment on the bonds; <br />3) Approve the proposed form of the bonds; <br />4) Approve the form of the draft official statement for use in offering bonds to investors; <br />5) State the County’s agreement to comply with the relevant provisions of federal tax law <br />and the federal rules for continuing disclosure to the securities markets; and <br />6) Authorize County staff to complete the process of issuing the bonds and authorizing <br />the final principal payment schedule. <br /> <br />Gary Donaldson, Chief Financial Officer, reviewed the information below: <br /> <br />BACKGROUND: <br />On November 8, 2016 voters approved $120 million in School Bonds of which the CHCCS GO <br />bond allocation is $72.1 million based on Average Daily Membership. <br /> <br />The current GO Bond Financing Plan includes the issuance of $64.4 million in School General <br />Obligation Bonds for a scheduled June 26, 2018 Bond Sale to be administered by the Local <br />Government Commission. The County issued $5 million in November 2017 for CHCCS of which <br />$3.6 million was used for the Chapel Hill High School and $1.4 million for the Lincoln Center. <br />The School GO bond funds earmarked for Chapel Hill High School is $68 million. <br /> <br />The Local Government Commission has approved the Financing Plan based on a Guaranteed <br />Maximum Price/Construction Manager at Risk (CMAR) and satisfaction of key permitting <br />requirements prior to the issuance of General Obligation Bonds. <br /> <br />The CHCCS CMAR Agreement is similar to the County CMAR for the Sportsplex Fieldhouse. <br /> <br />The County and CHCCS have worked to develop a Financing Plan that meets the CHCCS <br />Cash flow requirements, County Debt Affordability, and Local Government Commission bond <br />approval requirements. <br /> <br />In accordance with the County Capital Investment Program and in advisement with the County’s <br />bond counsel and financial advisor, the County staff recommends that the County proceed with <br />the General Obligation Bond sale. <br /> <br />The actual interest rates on these bonds will be set when the Local Government Commission <br />takes competitive bids on June 26, 2018, and the bond closing is scheduled for July 12, 2018. <br />