Agenda - 11-21-2000-5a - Laserfiche WebLink

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The school system received construction bids for the project on October 26, 2000. In early November, the Orange County Board of Education awarded construction bids totaling $19,208,190 and contracts for site work and required road widening work totaling just aver $1.5 million. This amount is approximately $1.3 million less than the project's original construction budget. These savings may be able to provide additional flexibility to OCS to address other pressing pay-as-you-go capital project needs, as most of their annual pay-as-you-go funds are committed to paying debt service on the COPs. An updated financing calendar is attached. All actions listed on the calendar to this point have been completed. The date set for final' action by the Board of Commissioners is November 21, 2000. Action required on this date includes adoption of the attached resolution that provides for approval of the following draft documents: • Preliminary Official Statement -Similar to the Official Statement for General Obligation (G.O.) Bonds, this document provides the required disclosure of information to prospective investors. • Installment Financing Contract- This agreement between the County and the non-profit corporation, Orange County Public Facilities Company, provides for the advance of funds to the County for project expenditures. • Deed of Trust and Security Agreement -- Provides for the security interest in the property (the collateral) to secure the County's payment obligation. • Trust Agreement- This agreement between the non-profit corporation and the Trustee provides for the issuance of the COPS in the County's financing obligations to generate funds to provide to the County under the financing agreement. • Contract of Purchase- provides far the underwriter's obligation to purchase the COPs. • Lease - An agreement that provides for the County to lease the new school to the School Board. • Agency Agreement- Provides for the School Board to undertake the acquisition and construction of the new school as the County's agent. The resolution provides that the Board make a determination to proceed with the project -and, as mentioned above, approve the draft documents with the understanding that the final documents must be in substantially the forms presented. The resolution also directs the Chair and the Vice Chair and the Finance Director to execute the final documents. FINANCIAL IMPACT: Assuming the amount borrowed at the Commissioner approved level of $13.5 million, estimated underwriting and other issuance costs total $165,000. The combined total of the financing package is approximately $13,665,000. Annual debt service, estimated at $1.98 million in the peak year (fiscal year 2009-02), will be paid from Orange County Schools pay-as-you-go revenues in accordance with the County's CIP and approved Capital Funding Policy. RECOMMENDATION(S): The Manager recommends that the Board adopt the resolution providing final approval of the terms and documents far the new high school financing project.