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ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: June 29, 2000 <br />Action Agenda <br />Item No. _ 7 Q <br />SUBJECT: Certificates of Participation (COPS) for New Orange County High School <br />DEPARTMENT: Finance PUBLIC HEARING: (Y/N) Yes <br />ATTACHMENT(S): <br />Resolution <br />Summary of Underwriting Proposals <br />Bond Counsel Memorandum <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 financing of a New High <br />School in the Orange County School District, and to take action on items to facilitate the <br />acquisition of funds needed for the project. <br />BACKGROUND: At the June 6, 2000 meeting, the Board of Commissioners authorized staff to <br />pursue the financing needed for a new high school in the Orange County School District. The <br />total approved budget for the project is just under $28 million, with $12.5 million financed by <br />bands approved for the purpose by Orange County voters in November 1997. Staff <br />recommended, and the Baard approved, Certificates of Participation (COPS) as the financing <br />mechanism to be pursued for the balance of the project funding. The Board approved $13.5 <br />million from COPS for project construction. Issuance costs associated with COPS will be added <br />to the amount for construction and included in the total amount to be financed. Similar to the <br />County's other installment purchase projects, this financing approach requires the Board to <br />receive public comment prior to seeking the approval of the North Carolina Local Government <br />Commission. June 29, 2000 was the date established by the Board for the public hearing. <br />In accordance with the timetable provided by bond counsel, staff has pursued the required RFP <br />process for underwriting services needed for the issuance of COPS. Competitive proposals <br />from 3 of the most recognized firms in the State were submitted and staff recommends that the <br />County contract with BB~T Capital Markets. In addition to providing the lowest cost estimates <br />($72,920), BB&T had the most experience in financing school projects and working with first <br />time issuers of COPS. BB&T has recently worked with the County in obtaining an upgrade in <br />bond rating and their familiarity with the County is a definite plus. A summary of the proposals <br />is attached. <br />