Orange County NC Website
1 <br /> ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: April 21, 2020 <br /> Action Agenda <br /> Item No. 8-e <br /> SUBJECT: Adoption of the Final Financing Resolution Authorizing the Issuance of <br /> $40,750,000 in Installment Purchase Financing for Various Capital Investment <br /> Plan Projects <br /> DEPARTMENT: Finance and Administrative <br /> Services <br /> ATTACHMENT(S): INFORMATION CONTACT: <br /> Attachment 1 . Resolution Approving Gary Donaldson, (919) 245-2453 <br /> Financing Terms and Paul Laughton, (919) 245-2152 <br /> Documents for 2020 Robert Jessup, (919) 933-9891 <br /> Installment Financing <br /> Attachment 2. Deed of Trust <br /> Attachment 3. Trust Agreement <br /> Attachment 4. School Project Category <br /> Descriptions <br /> Attachment 5. Proposal from Capital One <br /> Attachment 6. PowerPoint <br /> PURPOSE: To adopt the final financing resolution authorizing the borrowing of approximately <br /> $40,750,000 in installment financing to finance capital investment projects and equipment for the <br /> fiscal year, including amounts to pay transaction costs. <br /> BACKGROUND: At the March 10, 2020 Board Business meeting, the Board of County <br /> Commissioners conducted a public hearing and was provided preliminary information of capital <br /> projects and equipment financing. The Board made a preliminary determination to finance costs <br /> of these projects and equipment, and financing costs by the use of an installment financing, as <br /> authorized under Section 160A-20 of the North Carolina General Statutes. <br /> The statutes require that the County adopt a financing resolution supporting the application to the <br /> Local Government Commission (LGC) for approval of the financing. County staff has been in <br /> contact with the LGC staff, and expects no issues in receiving full LGC approval. <br /> With action on this resolution, the Board (a) approves the substantially final financing documents, <br /> (b) approves the sale of a limited obligation bond to Capital One Public Funding, LLC pursuant <br /> the attached proposal, and (c) authorizes staff to complete the financing. <br /> The financing team, which includes the County's financial advisor and bond counsel, has <br /> determined that the shift from a public sale to a privately bank financed transaction is prudent due <br /> to pandemic induced inefficiencies in the public finance market which have resulted in postponed <br /> or cancelled bond transactions. To eliminate the risk of not being able to obtain proceeds next <br /> month to fund the Construction Manager at Risk (CMAR) Northern Campus project and the other <br />