11021994
--, 604
HARNETT COUNTY BOARD OF COMMISSIONERS RECONVENED MEETING, NOVEMBER 2, 1994
The Harnett County Board of Commissioners met in special session on
Wednesday, November 2, 1994. The meeting that was recessed on October
17, 1994, was reconvened in the Commissioners Meeting Room, County I
Office Building, Lillington, North Carolina.
Members present: H. L. Sorrell, Jr., Chairman
Beatrice Bailey Htll, Vice Chairman
Dan B. Andrews
Joseph T. Bowden
Walt Titchener
Staff present: Neil Emory, County Manager
Wm . A . (Tony) Wilder, Assistant County Manager
Vanessa W. Young, Finance Officer
Kay S. Blanchard, Recording Secretary
Chairman Sorrell reconvened the meeting at 9 a.m. and called on Neil
Emory, County Manager, to give the purpose of the meeting. Mr. Emory
stated that the first item of business was to hold a public hearing
regarding installment financing for the Governmental Complex water
PUBLIC HEARING ON facility and the site upon which it is located. Chairman Sorrell
INSTALLMENT FINANCING called the public hearing to order and opened the floor for comments
FOR GOVERNMENTAL COMPLEX from the public. No comments were offered and Chairman Sorrell closed
WATER FACILITY the public hearing.
Neil Emory, County Manager, presented for the Board's consideration a
AMENDATORY RESOLUTION proposed Amendatory Resolution of the Board of Commissioners of the
RE: INSTALLMENT County of Harnett, North Carolina, Approving the Installment Financing
FINANCING of the Acquisition, Construction and Equipping of Primary and Middle
School Facilities, a County Health and Social Services Facility, and
Water System Improvements and Making Certain Findings and
Determinations in Connection Therewith. Commissioner Titchener moved
for adoption of the resolution. Commissioner Bowden seconded the
motion and it passed with a unanimous vote. (Attachment 1) I
AWARD OF CONTRACTS ~OR Neil Emory, County Manager, briefed the Board on contract award
CONSTRUCTION OF DSS/ amounts for construction of the Department of Social Services/Health
HEALTH FACILITY facility. Commissioner Bowden made a motion to award the contracts
as presented. Commissioner Andrews seconded the motion and it passed
with a unanimous vote. (Attachment 2)
There being no further business, the reconvened meeting of the Harnett
ADJOURNMENT County Board of Commissioners, November 2, 1994, duly adjourned at
9:20 a.m.
;/hL
/ It. L. Sorrell ',;/1r;. Chairman
I
I~ 'WI. Lf/'yp~
Vanessa VI. Young, Cle~ to the Board
K~,'!' LVlUtAwJ
Kay S. Blanchard, Recording Secretary
I
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605
Attachment 1.
AMENDATORY RESOLUTION OF A.IU!. BOARD OF
COMMISSIONERS OF .IDA COUNTY OF HARru..ll,
I NORTH CAROLINA, APPROVING uu. INSTALLMENT
FINANCING OF AnA ACQtJJa)AUON, CONSTRU\..uON
AND EQUIPPING OF PRIMARY AND MIDDLE SCHOOL
FACILuU!S, A COUNTY HEALTH AND SOCIAL
SERVICES FACILITY, AND WATER SYSTEM
IMPROVEMENTS AND MAKING \..~TAIN FINDINGS
AND DEJ..r..aMINATIONS IN CO~uON mEREWITH
I. UNDERTAKINGS
WHEREAS, the Board of Commissioners (the "Board") of the County of Harnett,
North Carolina (the "County"), desires to provide for the acquisition, construction and equipping
of (i) primary and middle school facilities, (ii) a County health and social services facility and
associated water storage facilities and water distribution lines (the "DSS Facility") and (iii) water
system improvements (collectively, the "Facilities"); and
WHEREAS, the Board, on October 17, 1994, adopted a resolution that approved
the acquisition, construction and equipping of the Facilities (except for the water storage
facilities and water distribution lines for the DSS Facility (the "DSS Water Facility") and the site
upon which the DSS Water Facility is located) on an installment financing basis; and
I WHEREAS, since the adoption of such resolution on October 17, 1994, the
construction requirements, plans and costs of the Facilities have changed necessitating the
adoption of this Amendatory Resolution; and
'" It.l!.l\EAS, the Board now I'&'''I'DSCS to finance the Facilities through an
installment financing contract (the "Contract") with Harnett County Public Facilities
Corporation, Lillington, North Carolina ("the Corporation"), obligating the County to ....}'coy in
installments the amount financed at a fixed annual interest rate of not more than 8 % over a term
not exceeding 2S years, resulting in a total amount financed not to exceed $40,000,000
(excluding reserves and costs of issuance); and
'" It.t.KEAS, alternatively, the Board may finance the DSS Facility through an
installment financing contract (any installment financing contract delivered in connection with
the DSS Facility and the Contract are referred to herein as the "Installment Financing
Contracts") with an alternative financing entity, obligating the County to repay in installments
the amount financed (including costs of issuance) at a fixed annual interest rate of not more than
I 7% over a term of approximately 10 years resulting in a total amount financed not to exceed
$9,000,000; provided, however, such amount financed shall be deducted from the $40,000,000
financed with the Corporation if the County delivers an installment financing contract for the
DSS Facility to an alternative fmancing entity; and
WHEREAS, pursuant to N.C.G.S. Section 160A-20, the County is authorized
to finance the acquisition, construction and equipping of the Facilities by entering into an
installment financing contract and a deed of trust which create in the Facilities and the sites on
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606 which they are located a security interest to secure payment of the obligation thereby created;
provided, however, the Facilities to be secured by the Deed of Trust shall not include the DSS
.
Water Facility and the site upon which the DSS Water Facility is located; and
WHEREAS, subject to the prior al')n...' lal of the Local Government Commission
of North Carolina (the "LGC") pursuant to N.C.G.S. Section 159-148, the County intends to
finance the Facilities pursuant to Section 160A-20 by executing and delivering to the Corporation
or other fmancing entity an installment financing contract providing for the financing of a I
principal amount not to exceed 540,000,000 (excluding reserves and costs of issuance);
provided, however, such $40,000,000 amount would be reduced by 59,000,000 in the event the
DSS Facility is financed through an installment financing contract with a financing entity other
than the Corporation; and
W J11!.KEAS, the County intends to apply for municipal bond insurance to
guarantee payments by the County under the Contract; and
n. UNDERTAKINGS NECESSARY
WHEREAS, the County staff has advised the Board, and the Board hereby finds
and determines, that the County must acquire, construct and equip the Facilities in order to
maintain and enhance the County's public facilities to enable the County to perform its public
functions, and that the Facilities will benefit the County and its residents; and
WHEREAS, the Board conducted a public hearing on October 17, 1994 to
receive public comment on the desirability of installment financing for the Facilities, and the I
Board received evidence supporting the need for such financing; and
WHEREAS, the Board conducted a public hearing on the date hereof to receive
public comment on the desirability of installment financing for the DSS Water Facility and the
site upon which the DSS Water Facility is located, and the Board received evidence supponing
the need for such financing; and
Wh.r..KEAS, the Board finds and determines that the undertakings are necessary
and expedient for the aforesaid reasons and that the Facilities be financed under the terms,
conditions and parameters heretofore stated and to be funher determined with more particularity
at a later date; and
m. FUNDS NOT EXCESSIVE
W J1.uU:AS, the sums to fall due under the Installment Financing Contracts can
be included in the County's budget without difficulty; and
W n.uU:AS, the above factors lead to the conclusion that the payments under the I
Installment Financing Contracts are not excessive for the stated purposes of acquiring,
constructing and equipping the Facilities; and
IV. TRANSACTION A PUBLIC PURPOSE
Wh.t.AEAS, the County Attorney has advised the County that the Facilities are
authorized by law and are purposes for which pllhli '<; may be expended pursuant to the
Constitution and laws,~f Nv th Carolina; and
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v. INSTALLMENT PURCHASE FINANCING DESIRABLE
Wh~, the Board finds and determines that short term or pay-as-you-go
financinl for the FacUities would place strains on the County's ability to fund general ",}'.;.."tions
and education without a silnificant tax increase; and
I \\ nlSAEAS, use of the County's unobligated fund balance to finance the Facilities
would reduce the fund below the guideline established by the LGC and would not be in the
County's best interest; and
\\ n~S, the use of non-voted debt would not provide sufficient funds to
complete the Facilities in a timely manner; and
WHEREAS, although the cost of financing under the t'A'''I-.osed Installment
Financing Contracts is greater than the cost of general obligation bond financing, installment
contract financing would be preferable to general obligation bond financing because a general
obligation bond authorization !-...t.olbly could not be perfected in a timely manner and would not
permit the alternative financing structures and & ';"t'"yment provisions available in the proposed
negotiated installment contract financing; and
WHEREAS, the proposed cost of financing the Facilities is too great an amount
to be funded by current a}'t'&u}'&:ations; and
WHEREAS, the Board finds and determines that installment contract financing
I is therefore the most viable and efficient alternative and that the cost of such financing is reason-
able; and
VI. COMPLIANCE" ud DEBT MANAGEMENT CONTROLS
WHEREAS, past audit reports of the County indicate that its debt management
and contract obligations payment policies have been carried out in strict compliance with the law
and the County has not been censured by the LGC, external auditors, or any other regulatory
agencies in connection with such management; and
VU. ESTIMAu!.I1 TAX INCREASE
WHEREAS, the Board estimates that the County's ad valorem tax rate will not
be significantly increased in order to sustain the proposed financing; and
Vill. NO DEFAULT
I WHEREAS, the County is not in default in meeting any of its debt service or
contract obligations; and
IX. APPLICATION
\\nIlAEAS.. it is the Board's intention to adopt this Amendatory Resolution for
the purpose of authorizing the acquisition, construction and equipping of the Facilities, making
certain findings and determinations, at'I-.,..ling the submission of an application for ay}'......al of
'.. 608
the Installment Financing Contracts to the LGC and authorizing such other acts deemed
necessary and advisable to carry out the acquisition, construction and equipping of the Facilities.
NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF
COMMISSIONERS OF THE COUNTY OF HA~J:H 1, NORTH CAROLINA, as follows:
Section 1. The Chairman of the Board, the County Manager, the Finance I
Director and the Clerk to the Board are hereby authorized and directed on behalf of the County
to proceed with the preparation of Installment Financing Contracts providing for the financing
of an amount not to exceed $40,000,000 (excluding reserves and costs of issuances) at an annual
interest rate not to exceed 8 % and a term not to exceed 25 years, and otherwise proceed with
the plan of financing for the Facilities described at this meeting; provided, however, such
$40,000,000 amount would be reduced by 59,000,000 in the event the DSS Facility is financed
through an installment financing contract with a financing entity other than the Corporation.
Section 2. The Chairman of the Board, the County Manager, the Finance
Director and the Clerk to the Board are hereby authorized and directed to submit an application
for the LGC's approval of the Installment Financing Contracts pursuant to N.C.G.S. Section
160A-20 and Section 159-148, and to execute a sworn statement of debt of the County pursuant
to N.C.G.S. Section 159-150, in connection with the financing of the Facilities.
Section 3. The County staff is hereby authorized to apply for municipal bond
insurance with respect to the Contract.
Section 4. The Board hereby determines that it will reserve, from accumulated I
local funds, an amount equal to 20% of the estimated design and construction cost of those
projects for which construction contracts have not been procured prior to the time of delivery
of an installment financing contract, such costs estimated to be 53,200,000 for acquiring,
constructing and equipping the water system improvements. Therefore, the 20% reservation
would equal approximately 5640,000. The County shall hold such amount in reserve in case
bids on such project exceed the estimated cost thereof, and shall use funds from such reserve
for project costs if the same appears necessary to pay the balance of the cost of construction.
Such reserve may be released upon the awarding of construction contracts, except such ~mount
as the Board may deem necessary to complete construction of the project.
Section 5. This Amendatory Resolution shall become effective immediately upon
its adoption and shall supersede any and all previous resolutions regarding the acquisition,
construction and renovation of the Facilities on an installment financing basis.
This the 2nd day of November, 1994.
JK47202.4 I
HARNETT COUNTY BOARD OF COMMISSIONERS
%(~ /'
BY:/ ,:",,' ~,.",
. /
H. L. SORRELL,..4R. - Chairman
ATTEST:
,r.:.... / 'tJrj. (j :1(.
VANESSA W. YOUNG, cItr:RK THE BOARD
\
609
.1.-
Attachment' 2.
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Skinner, Larnm, Hooc & _-jglsmi":l --:JA, Architects
October 27, 1994 ,;;"'-:;7"~ .~.~
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Mr. Neil A. Emory .... rir:T '99.t
:.'
Harnett County Manager -...., .~.
" ' ",).. ......-i..::..: ~i ~~~;
P. O. Box 759 .. :J~r~E'fT Gi'iCtry
.
Lillington, N. C. 27546 ,-' ,.:M.um's rp;'f1:
1-;' . 4 'y .HI).;;
'- "
Re: Health & Social Services Building "\" . ". ,.\.1.
..~'-~~ : :..l ~'_.~;,;: /
Dear Mr. Emory,
Based on our meeting on October 26, contract award amounts will be as follows:
General Contract:
Sigma Construction Co., Fayetteville, N.C.
Base Bid $5,389,000
Deduct Alternate G - 1 (250,000)
Add Alternate G- 3 65,000
Negotiated Deductions (85.759\
(see attached list)
A ward Amount $5,118,241
PluDlblne Contract:
Braxton Britt Plumbing Co., Wilson, N. C.
Base 86d 448,400
HV AC Contract:
Southern Piping Company, Wilson, N. C.
Base Bid 993,000
I Eh:clrlcal Contract:
Trlple-R Elrctrlc, Inc., KlnHton, N.C.
Base Bid $843,300
Add Alternate E-l 11. 200
A ward Amount 854.500
Total Award Amount $7,414,141
I understand that the Commissioners will meet on November 2 to formally award the
contracts.
cc: Sigma Construction Ct:.
Braxton Britt Plumbing Co,
Southern Piping Company
Triplc- R Electric
I