Orange County NC Website
ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: November 19, 2002 <br />Action Agenda <br />Item No. ~~ <br />SUBJECT• Public Hearing on Alternative Capital Financing Plan <br />DEPARTMENT: Finance PUBLIC HEARING: (YIN) Yes <br />ATTACHMENT(S): <br />Resolutions <br />Financing Proposal <br />Bid Sheet <br />INFORMATION CONTACT: <br />Ken Chavious, ext. 2453 <br />TELEPHONE NUMBERS: <br />Hillsborough 732-8181 <br />Chapel Hill 968-4501 <br />Durham 688-7331 <br />Mebane 336-227-2031 <br />PURPOSE: To conduct a public hearing on matters related to the Alternative Capital Financing <br />Plan approved by the Board on September 3, 2002 and to take action on items to facilitate the <br />acquisition of funds needed for the projects. <br />BACKGROUND: At the September 3, 2002 meeting, the Board of Commissioners adopted a <br />plan that included capital projects to be financed by the initial sale of the 2001 bonds and <br />projects to be alternatively financed. The Board also approved a schedule setting forth the <br />actions and dates to accomplish both initiatives. In accordance with the adopted schedule for <br />the alternative financing, staff has pursued a request for proposal process to finance <br />$3,475,000 in projects approved by the Board. The projects in this phase of the alternative <br />financing include renovations to Orange High School, conservation easements, property <br />acquisition for the community college satellite campus and funding for the Orange Enterprises <br />facility. <br />An application requesting approval of this proposed financing has been forwarded to the Local <br />Government Commission (LGC) in accordance with statutory provisions. Prior to the LGC <br />granting approval, the Board is required to conduct a public hearing on matters related to the <br />financing proposal. The Board has established November 19, 2002 as the date for the hearing. <br />The LGC is scheduled to take action on the County's application on December 2, 2002, and, if <br />approval is granted, closing and receipt of funds will occur during mid December 2002. <br />Staff solicited and received proposals from six financial institutions. Two of the proposals did <br />not comply with the provisions of the County's request and therefore were deemed non- <br />responsive. Of the responsive proposals submitted, the Branch Banking & Trust Company <br />(BB&T) proposal was the most favorable. This proposal included the lowest interest rate of <br />4.22% as well as the lowest overall cost to the County. A summary of the proposals is <br />attached. <br />