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06232003 -- -- IOD? HARNETT COUNTY BOARD OF COMMISSIONERS Minutes of Special Meeting June 23, 2003 The Harnett County Board of Commissioners met in special session on Monday, June 23,2003, in the Commissioners Meeting Room, County Administration Building, 102 East Front Street, Lillington, North Carolina. . Members present: Beatrice Bailey Hill, Vice-Chairman Walt Titchener Tim McNeill Staff present: Neil Emory, County Manager Wm. A. (Tony) Wilder, Assistant County Manager Vanessa W. Young, Finance Officer Guests: Senator Harris Blake Representative Margaret Dickson Representative Marvin Lucas Representative John Sauls Vice Chairman Hill called the meeting to order at 8:00 a.m. and Commissioner McNeill led the invocation. The group discussed issues concerning Harnett County including mental health forum, abandoned mobile homes and the Fort BraggIPope Air Force Base Regional Land Use Plan. . Neil Emory, County Manager, presented for the Board's consideration budget amendments for various departments. Commissioner Titchener moved to approve the budget amendments listed below, Commissioner McNeill seconded the motion and it passed unanimously. Budget Amendments: 643 Sheriff s Deoartment (Fund 11 O-General) Code 110-0000-356.30-00 Insurance Reimbursement 4,160. increase 110-5100-420.43-21 Maintenance & Repair-Auto 4,160. increase 647 Transoortation (Fund 11 O-General) Code 110-4650-410.58-14 Travel Admin. 21. increase 110-4650-410.33-45 Contracted Services 2,354. increase 110-0000- 34 7.18-00 Van Advertisements 360. increase 110-4650-410.43-16 Maint. & Repair-Equip. 332. decrease 110-4650-410.32-70 Capital Assistance- TDP 728. decrease 110-4650-410.60-33 Materials & Supplies 905. decrease 110-4650-410.60-36 Uniforms 30. decrease 110-4650-410.60-46 Medical Supplies & Drugs 20. decrease 648 Various (Fund 11 O-General) . Code 11O-410Q-410.30-22 Indirect Cost-Gov. Body 43,807. decrease 110-4150-410.30-22 Indirect Cost-Admin. 1,009. increase 110-4250-410.30-22 Indirect Cost-Personnel 957. increase 110-4400-410.30-22 Indirect Cost-Finance 27,744. increase 110-4600-410.30-22 Indirect Cost-General Services 1,420. increase 110-4700-410.30-22 Indirect Cost-Public Buildings 6,079. increase 110-4900-410.30-22 Indirect Cost-MIS 6,598. increase 649 Various (Fund 11 O-General) Code 110-0000-336.22-00 Court Facilities Fees 3,600. increase 110-0000-344.02-00 Kid's World 1,410. increase 110-0000-344.14-00 4-H Programs 1,150. increase 110-0000-348.10-00 Copy Fees Library 200. increase --------~- -------~ - -' ---- -- -- -- -- ------ .- -- -- - - -- .------ ----.-- 100 $' 110-0000-348.20-00 Fines Library 400. increase 110-0000-350.00-00 Processing Fees Returned Checks 400. increase 110-0000-353.21-00 Contributions & Donations-Aging 509. increase 110-0000-353.03-00 Contri. & Donations-Animal Shelter 50. increase 110-0000- 336.10-00 Inventory Tax 64,000. increase 110-0000-334.77-03 Special Needs Adoption 42,500. increase 110-0000-349.40-00 NC Health Choice 1,000. increase 110-0000-354.16-00 Foster Care IV-D 194. increase 11 0-0000- 319.70-00 Occupancy Tax 80,000. decrease 110-0000-399.00-00 Fund Balance Appropriated 35,413. decrease . Vice Chairman Hill called to order a public hearing concerning the approval of the execution and delivery of the First Contract Amendment and Refinancing of the 1994 Project for construction of schools, DSS/Health Facility, and water projects_ Neil Emory, County Manager, presented a proposed resolution regarding the amendment and refinancing. Vice Chairman Hill opened the meeting for comments from the public. No comments were offered and Vice Chairman Hill closed the public hearing. Commissioner Titchener moved to adopt the resolution as presented. Commissioner McNeill seconded the motion and it passed unanimously. (Attachment 2) There being no further business, Commissioner McNeill moved for adjournment. Commissioner Titchener seconded the motion and it passed unanimously. The Harnett County Board of Commissioners' special meeting, June 23, 2003, adjourned at 9:50 a.m. - t-~L'P)~.d~d;. B at rice B. Hill, Vice airman fit}, .I. aAJ~ .. . Kay-S. Blanchard, Clerk to the Board . Attachment 1. -.---. ._--- -------- RESOL~~~u,' OF 11IE c.~,,,.,.i' OF HARNETT, N,,~...n: CAROLINA APPROVING AMENDMENT NUMBER ONE TO AN INSTAU..MENT FINANCING c.u" h-.ACT WITH 11IE HARNETT Cv",!.~1 PuBuc FACILITIES C",w ""ATION TO PROVIDE FOR 1'HE REFINANCING OF INSTALLMENT PAYMENT OBUGATIONS 'fHERAu1I1.IUl. RELATED TO THE (1) AC~u~...u..oN, C..............JCTION, RENOVATION AND E,-:u....:,~~,-G OF CERTAIN PRIMARy AND l\L.J~i.:c.E SCHOOLS, (2) Ac'l"'....u'ON, CONSTRU.....~...,.\ AND EQL....:"...'G OF A COllN'IY DEPARTMENT OF HEALm AND SOCIAL SERVICES FAcn.tTY,AND (3)Ac....u......~~...." C..'".~b..."',.....'ON ANDE", J,,'::,",' GOF A NEW WATER RESERVOIR, PlJMplNG STATION AND WATER STORAGE TANK ASSOCIATED WITH THE C..."',. i. i"S WATER TREATMENT FACILITY AND RELATED MATTERS wni!.iU!AS, the County of Harnett, North Carolina (the "County'') is a political subdivision validly existing Under the Constitution, statutes and laws of the State (the "State ''); WHEREAS, the County has the power, pursuant to North Carolina General Statutes, to (1) purchase real and personal property, (2) enter into installment purchase contracts in order to finance the purchase or L..._," :ement of real and personal property used, or to be used, for public purposes, and (3) grant a s""~~~J .:...l.......l: in some or all of the property purchased or L~,,!ed to secure repayment of the purchase price; W.l1l!.REAS, the Board of Commissioners of the County ofHamett, North Carolina (the "Board of Commissioners "), previously .......;.~."J into (A) an Iustallment Financing Contract dated as of . December 1, 1994 (the "}994 Contract") with the Harnett County Public Facilities CoIporation (the "CoTp(Jration'') in order to finance (1) the acquisition, construction, renovation and equipping of certain primaly and middle schools (the "School Projects''), (2) the acquisition, ..~"":'.tction and ClqI"\/"I<'"g ofa County Depaqment of Health and Social Services filciUty (the "DSSIHealth Fac!/ity") and (3) the acquisition, construction and equipping of a new water reservoir, pumping station and water storage tank associated with the County's water ;......;...ent fucility (the "Water Project" and collectively with the School Projects and the DSSIHea1th Facility, the "Project"), and (B) a 4eed of trust and security ae,."......m1: related to the County's fee simple interest in the real ""~J-"'ly (the "Sites") on which the Project is located (the "Deed of Trust''); w rtl!.REAS, the Corporation executed and delivered its Certificates of Participation, Series 1994 (Harnett County Projects), Evidencing Proportionate Undivided Interests in Rights to Receive Certain Revenues Pursuant to the Contract (the "1994 Certificates") under an Indenture of Trust dated as of December 1, 1994 (the "}994 Indenture') between the C-...u,...lion and First-Citizens Bank & Trust Company, as trustee (the "Trustee"); WHEREAS, the County has been advised that it can achieve savings by refinancing its installment payment obligations under the 1994 Contract; --.- -- ~ - - -- - -- --- ---------- -- 100' WHEREAS, to accomplish the refinancing of its installment payment obligations under the 1994 Contract, the County will amend the 1994 Contract by entering into Amendment Number One to the 1994 Contract dated as of July 15, 2003 (the "First Contract Amendmenf' and collectively with the 1994 Contract, the "Contract") with the CV'J'w.~:on, and the Corporation will execute and deliver its Refunding Certificates of Participation, Series 2003 (U.....""t County Projects) Evidencing P'wl-_.;':onate Undivided Interests in Rights to Receive Revenues Pursuant to the Contract (the "2003 Certificates"), under the 1994 Indentute and Supp1"........~ La"""-..",,, Number I, dated as of July 15, 2003 (the "First Supplement") :..,,~..'...,,_ the Cv...,~,.";':on and the Tmstee; WHEREAS, although the cost of refinancing its installment payment obligations under the 1994 Contract is .....t'..,,~:d to exceed such cost pursuant to a bond financing for the same undertaking. the . County hereby d",~.....,.ines that it is preferable to a general obligation bond financing or revenue bond financing for several reasons, including but not limited to the following: (I) the cost of a special election necessary to "1'1:"" Ie a general obligation bond financing, as required by the laws of the State, would result in the expenditure of significant funds; (2) the time required for a general obligation bond election would cause an unnecessary delay which would decrease the financial benefits of the refinancings; and (3) insufficient revenues are produced by the Project so as to permit a revenue bond financing; WHEREAS, the County bas determined and hereby determines that the estimated cost of retinanc:ing its installment payment obligations under the 1994 Contract reasonably compares with an estimate of similar costs under a bond financing for the same undertaking as a result of the findings delineated in the above preambles; w nl!.lW.4S, the County does not anticipate future property tax increases solely to pay installment payments falling due under the Contract in any fiscal year during the term of the Contract; w.cui.REAS, the sums to fall due under the Contract is adequate and not excessive for its purpose; WHEREAS, no deficiency judgment may be rendered against the County in any action for its breach of the Contract, and the taxing power of the County is not and may not be pledged in any way directly or in'::'",..Jy or contingently to secure any moneys due under the Contract; w n.e..Ol.AS, the County is not in defauh under any of its debt service obligations; wnl:.REAS, in order to secure the County's obligations under the 1994 Contract, the County entered into the Deed ofT~ which will continue to secure the County's obligations under the Contract; ". n~, Parker Poe Adams &. Bernstein L.L.P. as special counsel ("Special Counsel"), will render an opinion to the effect that entering into the First Contract Amendment and the transactions cW"~"'_l:'lated thereby are authorized by law and constitute a purpose for which public funds roay be expended pursuant to the C~...,W:~_Jon and laws of the State; WHEREAS, in connection with the sale of the 2003 Certificates by the Corporation to Scott & . Stringfellow, Inc., trading as BB&T Capital Markets and Legg Mason Wood Walker, Inc,~_..~"~"J (the "Underwriters'), the County will enter into the Certificate Purchase Ae..'"......ent dated on or about July 10, 2003 among the Corporation, the County and the Und... ...~.",.. (the "Certificate Purchase Agreement"); WHEREAS, in connection with the refinancing of its installment payment obligations under the 1994 Contract, the County will enter into the Escrow A............ent dated as of July 15,2003 between the County and First-Citizens Bank. & Tmst c..,..'t"'-j, as escrow agent (the "Escrow Agreement'); n' nL:JlEAS, there has been described to the Board of Commissioners fonns of the following documents (collectively, the "Instroments "), copies of which have been made available to the Board of Commissioners, which the Board of Commissioners proposes to "t'I:',.,Je, enter into and deliver, as applicable, to effectuate the proposed installment purchas.e financing: (I) the First Contract Amendment; and (2) the Certificate Purchase Agreement; (3) the First Supplement; and (4) the Escrow Agreement . . wn~, to make an offering and sale of the 2003 Certificates, there will be prepared a Prehnunary Official Stat..,....... (the. "!"elimi1Ulry Official Statement'), a draft thereof having been pres~~ed to the. Board of Comnussloners, and a final Official Statement (collectively with the Pre~nary Official Statement, the "Official Statement") with respect to the 2003 Certificates which Official Statement will contain certain infonnation regarding the County; , w t;'-J:.REAS, it ~ppears that ~h .of the Instruments and the Preliminary Official Statement is in an "'t'I:""!,uate fonn and IS an .......'w!'nate mstrument for the purposes intended; . . n'n~, the Board of Commissioners did conduct public hearings on (I) October 17, 1994, to r~eIve public commen~ on the 1994 Contract to finance the Project, and (2) June 23, 2003, to receive pubh~ comment ~n the FlfSt Contract Amendment and any other transactions contemplated therein and asSOCiated therewith; WHEREAS, the County's budget process and Annual Budget Ordinance are in compliance with the Local Government Budget and Fiscal Control Act, and external auditors have determined that the C~ ~ conformed with generally accepted ace.,,,. :,g principles as applied to gOh........enta) units in "''''J'...~grts Annual Budget Ordinance; . . WHEREAS. p~ audit reports of the County indicate that its debt management and contract oblrganon payment poliCICS have beel;t carried out in strict compliance with the law, and. the County has not been censured by the North Carolina Local Govenunent C.,'.c,..:.....ion (the "LGC'), .....;,.....a1 ~ or ~y other regulatory agencies in connection with such lIllIDlI&ement and contract obligation payment poliCies; and w nJ:.REAS, the County has filed an application to the LGC for approval of the First Contract Amendment; --- --- - ----- -- 1010 NOW, iIDillEFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF THE COUNTY OF I1ARNETI', NORTH CAROLINA, AS FOllOWS: Section 1. Ratifu:ation 01 Actions. That all actions of the County, the Chainnan of the Board of Commissioners (the "Chairman"), the Vice-Chainnan of the Board of C"..........'ssioners (the "Vice- Ch...~. ....... "), the Clerlc to the Board of Commissioners (the "Clerk'), the County Manager, the County Finance Officer, the County Attorney and their respective desib-""..., whether previously or hereinafter taken, in effectuating the proposed financing are hereby approved, ratified and authorized pursuant to and in accordance with the transactions rontemplated by the Instruments. Section 2 Authorization 01 the Officiol Statement. That the form, tenns and content of the PreliminaJy Official Statement to be dated on or about July 1, 2003 are in all respects authorized, .......'",.'ed and confu..<...l, and the use of the PreL,,;~.._j Official Statement and of the final Official Statement to be dated on or about July 9, 2003 by the Underwriters in connection with the sale of the 2003 Certificates is hereby in all respects authorized, ""'1'1""".'ed and confinned and the Chairman, Vice- . Chairman and the County Manager are hereby authorized to execute and deliver the Official !)~~.....ent for the purposes stated therein. Section 3. Authori:ation to Execute the First Contract Amendment That the County .........'" les the refinancing of its installment payment obligations under the 1994 Contract and the execution of the First Contract Amendment, in accordance with the "'...... of the 1994 Contract, which will be a valid, legal and binding obligation of the County in accordance with its terms. The form and content of the First Contract Amendment shall be and the same hereby are in all respects authorized, approved and confirmed, and the Chairman, the Vice-Chairman, the Clerk and the County Manager and their respective designees shall be and they hereby are authorized, ..._...~ ",...ed and directed to execute and deliver the First Contract Amendment, including necessary count...........;.,., in substantially the form and c"".~"._.~ presented to the Board of Commissioners, but with such changes, modifications, additions or deletions therein as shall to them seem necessary, desirable or "l'l"Ul'.:ate, their execution thereof to constitute conclusive evidence of the County's "l'l'......al of any and all changes, modifications, additions or deletions therein from the fonn and content of the First Contract Amendment presented to the Board of C" ..",." :ssioners, and that from and after the execution and delivery of the First Contract Amendment, the Chairman, the Vice-Chairman, the Clerk, the County Manager and the Finance Officer are hereby authorized, empu....."J and J:....~~..1I to do all such acts and things and to execute an such documents as may be necessary to carry out and comply with the provisions of the Contract as executed. Section 4. Certificate PurcJrase Ad' ",..",znL That the fonn and content of the Certificate Purchase Agreement shall be and the same hereby is in all respects .........,.'.red, and the Chairman, Vice Chairman and the County Manager are authorized to execute the Certificate Purchase At.- ........ent for the purposes stated therein. Section 5. Escrow A,. , ,."".enL That the form and c-....~"..;, of the Escrow Agreement shall be and the same hereby is in all respects approved, and the Chairman, the Vice-Chainnan and the County Manager are authorized to execute the Escrow Agreement for the l"u.........es stated therein. &.,_.~,.. 6. rU'Sl Supp/l!mJ!nL That the form and content of the First Supplement:, shall be and the same hereby is in all respects ........'~,,red. . Sectio" 7. County I."". ,,:.>mtatil't!. That the County Manager and Finance Officer are hereby designated as the County's Repres.....;...t:..e to act on behalf of the County in connection with the transaction contemplated by the Instruments and the Preliminary Official Statement, and the County Manager and Finance Officer are authorized to proceed with the refinancing of the County's installment payment obligations under the 1994 Contract in accordance with the L..... "ents and to seek opinions as a matter of Jaw ftotn the County Attorney, which the County Attorney is authorized to furnish on behalf of the County, and opinions of Jaw from such other attorneys for all documents contemplated hereby as required by law. The County's Representative are in all r.............;.s authorized on behalf of the County to supply all information pertaining to the County as purchaser under the Contract for use in the Preliminary Official Statement and the transactions contemplated by the Instruments or the PreliininaIy Official Statement. The Chairman, the Vice-chairman, the Clerk, the County Manager and the Finance Officer of the County or their respective designees are hereby authorized, empowered and di."u~J to do any and all other acts and to execute any and all other documents, which they, in their discretion, deem necessary and a.......v....:.-.te in order to consummate the transactions cu_~".....]ated by the Instruments or the Preliminary Official Statement or as they deem necessary or al'l',up.:ate in order to implement and carry out the intent and purposes of this Resolution. &"~~". 8. Severability. That if any section, phrase or provision oftbis Resolution is for any reason declared to be invalid, such declaration shall not affect the validity of the ........:..der of the sectioDS, phrases or provisions of this Resolution. Section 9. Repealer. That all motions, orders, resolutions and parts thereof, in conflict herewith are hereby repealed. S"',"",;"" 10. EH~....:.,e Date. That this Resolution is effective on the date of its adoption. The resolution was adopted by the following vote: YEAS Beatrice B. Hill . Walt Titchener Tim McNeill NAYS 0 -- --~ -.-_.-._~ 1011 PA:~~I!I?, .1>>OPTED AND APPROVED this 23rd day of June, 2003. ""c-' _ -~ 1'lO,fiI.,'l;D {i~' COUNTY OF lIARNEIT, NORTII CAROLINA f0':<~::: ':' ;~;' ....... . .' .'. ''''~, ""', "~~~...;.....l ~' <_ ~~ ' Ad~)t.~ting this the 23 day ''l\e,-2003. A'ITEST: ~.I- ~ Kay lanchard, Clerk to the Board of Commissioners ^'Q^' roF<mM .~N.k Dwight. . Snow, Esq., County Attorney 6 CLT 699222v4 . . - LAST PAGE OF BOOK 23 -