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HomeMy WebLinkAbout2015/06/15 RESOLUTION OF THE BD OF COMM OF THE CTY OF HARNETT, NC, AUTHORIZING THE NEGOTIATION OF AN INSTALLMENT FINANCING CONTRACT & PROVIDING FOR CERTAIN OTHER MATTERS RELATED THERETO (PRIOR CONTRACT-AG CTR & AN CONTROLEXTRACTS FROM MINUTES OF BOARD OF COMMISSIONERS A regular meeting of the Board of Commissioners (the "Board") of the County of Harnett, North Carolina (the "County") was held on Monday, June 15, 2015, at 7:00 p.m. in the County Commissioners' Meeting Room, Harnett County Administration Building, 102 East Front Street, Lillington, North Carolina, Jim Burgin, Chairman of the Board presiding and the following Commissioners present: Commissioners Present: Jim Burgin, Chairman Gordon Springle, Vice Chairman Abe Elmore, Commissioner Barbara McKoy, Commissioner Joe Miller, Commissioner Commissioners Absent: N/A Vice Chairman Gordon Springle moved that the following resolution (the "Resolution"), a copy of which was available with the Board and which was read by title: RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, NORTH CAROLINA, AUTHORIZING THE NEGOTIATION OF AN INSTALLMENT FINANCING CONTRACT AND PROVIDING FOR CERTAIN OTHER MATTERS RELATED THERETO WHEREAS, the County of Harnett, North Carolina (the "County") is a validly existing political subdivision of the State of North Carolina, existing as such under and by virtue of the Constitution, statutes and laws of the State of North Carolina (the "State"); WHEREAS, the County has the power, pursuant to the General Statutes of North Carolina to (1) purchase real and personal property, (2) enter into installment purchase contracts in order to finance and refinance the purchase of real and personal property used, or to be used, for public purposes, and (3) grant a security interest in some or all of the property purchased to secure repayment of the purchase price; WHEREAS, the County has previously executed and delivered an Installment Financing Contract dated as of January 15, 2005 (the "Prior Contract") between the County and Bank of America, N.A. in order to finance all or a portion of the costs to acquire, construct, renovate, equip and furnish a County Agricultural Center (the "Agriculture Center") and a County Animal Control Shelter (collectively, the "2005 Projects"); WHEREAS, to secure its obligations under the Prior Contract, the County has previously executed and delivered a deed of trust encumbering, among other collateral, the site on which the Agriculture Center is located and the improvements thereon; WHEREAS, the Board of Commissioners of the County of Harnett, North Carolina (the "Board of Commissioners") determines that it is in the best interest of the County (1) to execute and deliver an installment financing contract (the "Contract") under Section 160A-20 of the General Statutes of North Carolina (the "Act') in order to (a) refinance the County's installment payment obligations under the Prior Contract, (b) finance various capital improvements and repairs to the County's public works facility (the "Public Works Facility"), (c) finance the acquisition of certain real property (collectively, the "Land") owned by Harnett Forward Together Committee ("ILFTC") by repaying all or a portion of HFTC's outstanding indebtedness with respect to the Land and (2) pay certain costs incurred in connection with the execution and delivery of the Contract; and (2) to execute and deliver a deed of trust, security agreement and fixture filing (the "Deed of Trust') related to the County's fee simple interest in all or a portion of the real property on which the Agriculture Center and the Public Works Facility are located, together with the improvements thereon, to secure the County's obligations under the Contract; WHEREAS, the Board hereby determines that (1) the refinancing of the Prior Contract and the financing of the improvements to the Public Works Facility and the acquisition of the Land (collectively, the "Transactions") permit the County to carry out public functions that it is authorized by law to perform and (2) entering into the Contract and Deed of Trust is necessary and expedient for the County by virtue of the findings presented herein; WHEREAS, the County hereby determines that the Contract will allow the County to complete the Transactions at a favorable interest rate currently available in the financial marketplace and on terms advantageous to the County; WHEREAS, the County hereby determines that (1) the estimated cost of completing the Transactions is an amount not to exceed $7,000,000 and (2) such cost exceeds the amount that could be prudently raised from currently available appropriations, unappropriated fund balances and non -voted bonds that could be issued by the County in the current fiscal year pursuant to Article V, Section 4 of the Constitution of the State; WHEREAS, although the cost of completing the Transactions pursuant to the Contract is expected to exceed such cost pursuant to a general obligation bond financing for the same undertaking, the County hereby determines that the cost of completing the Transactions pursuant to the Contract and the obligations of the County thereunder are preferable to a general obligation bond financing or revenue bond financing for several reasons, including but not limited to the following: (1) the cost of a special election necessary to approve a general obligation bond financing, as required by the laws of the State, would result in the expenditure of significant funds; and (2) the time required for a general obligation bond election would cause an unnecessary delay which would thereby decrease the financial benefits of completing the Transactions and (3) insufficient County revenues are produced so as to permit a revenue bond financing; WHEREAS, the County has determined and hereby determines that the estimated cost of completing the Transactions pursuant to the Contract reasonably compares with an estimate of similar costs under a bond financing for the same undertaking as a result of the findings set forth above; WHEREAS, the County does not anticipate a future County property tax increase to pay installment payments falling due under the Contract; WHEREAS, the sums to fall due under the Contract will be adequate but not excessive for its proposed purpose; PPAB 2835132vl 2 WHEREAS, Parker Poe Adams & Bernstein LLP, as special counsel ("Special Counsel"), will render an opinion to the effect that entering into the Contract and the transactions contemplated thereby are authorized by law; 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 indirectly or contingently to secure any moneys due under the Contract; WHEREAS, the County is not in default under any of its debt service obligations; 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 County has conformed with generally accepted accounting principles as applied to governmental units in preparing its Annual Budget ordinance; WHEREAS, past audit reports of the County indicate that its debt management and contract obligation payment policies have been carried out in strict compliance with the law, and the County has not been censured by the North Carolina Local Government Commission (the "LGC'), external auditors or any other regulatory agencies in connection with such debt management and contract obligation payment policies; WHEREAS, a public bearing on the Contract after publication of a notice with respect to such public hearing must be held and approval of the LGC with respect to entering the Contract must be received; WHEREAS, the Board hereby reaffirms each of the findings it made with respect to the Prior Contract and the 2005 Projects in the resolutions adopted by the Board on September 20, 2004 and October 4, 2004; and WHEREAS, the County must obtain the LGC's approval to enter into the Contract Amendment. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, NORTHCAROLINA, AS FOLLOWS: Section 1. Application to LGC. The Finance Officer or her designee is hereby directed to file with the LGC an application for its approval of the Contract and the Transactions contemplated thereby on a form prescribed by the LGC and to state in such application such facts and to attach thereto such exhibits regarding the County and its financial condition as may be required by the LGC. Section 2. Negotiation of Contract. The County Manager, the Assistant County Manager, the Finance Officer and their designees, with advice from the County Attorney and Special Counsel, are hereby authorized and directed, individually and collectively, to negotiate on behalf of the County (1) with HFTC for the purchase of the Land in accordance with such agreements as they may deem appropriate and (2) for the completion of the Transactions under the Contract in a principal amount not to exceed $7,000,000, to be entered into in accordance with the provisions of the Act. All actions of the County, the County Manager, the Assistant County Manager, the Finance Officer, the Deputy Finance Officer, the Clerk to the Board, the County Attorney and their respective designees, whether previously or hereinafter taken, in effectuating the proposed refinancing in a manner consistent with this Resolution are hereby approved, ratified and authorized. PPAB 2835132v1 3 Section 3. Public Hearing. A public hearing (the "Public Hearing") shall be conducted by the Board on June 30, 2015 at 9:00 a.m. in the County Commissioners' Meeting Room, Harnett County Administration Building, 102 East Front Street, Lillington, North Carolina, concerning the Contract, the Deed of Trust and the Transactions contemplated thereby. Section 4. Notice of Public Hearing. The Clerk to the Board is hereby directed to cause a notice of the Public Hearing in the form attached hereto as Exhibit A to be published once in a qualified newspaper of general circulation within the County no fewer than 10 days prior to the Public Hearing. Section 5. Financing Team. The financing team of Parker Poe Adams & Bernstein LLP, as special counsel, and Davenport & Company LLC, as financial advisor, is approved. Section 6. Repealer. All motions, orders, resolutions and parts thereof in conflict herewith are hereby repealed. Section 7. Effective Date. This Resolution is effective on the date of its adoption. On motion of Vice Chairman Gordon Springle, and seconded by Commissioner Abe Elmore, the foregoing resolution entitled "RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, NORTH CAROLINA, AUTHORIZING THE NEGOTIATION OF AN INSTALLMENT PURCHASE CONTRACT AND PROVIDING FOR CERTAIN OTHER MATTERS RELATED THERETO" was duly adopted by the following vote: Ayes: 5 Nays: 0 PPAB 2835132v1 STATE OF NORTH CAROLINA ss: COUNTY OF HARNE71' 1, MARGARET REGINA WHEELER, Clerk to the Board of Commissioners of the County of Harnett, North Carolina, DO HEREBY CERTIFY that the foregoing is a true and exact copy of a resolution entitled "RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, NORTH CAROLINA, AUTHORIZING THE NEGOTIATION OF AN INSTALLMENT FINANCING CONTRACT AND PROVIDING FOR CERTAIN OTHER MATTERS RELATED THERETO" adopted by the Board of Commissioners of the County of Harnett, North Carolina, at a meeting held on the 15" day of June, 2015. WITNESS my hand and the corporate seal of the County of Harnett, North Carolina, this the 15th day of June, 2015. MARC ET REG WHEELER Clerk the Boar County of Harnett, North Carolina NOTICE OF PUBLIC HEARING The Board of Commissioners (the "Board') of the County of Harnett, North Carolina (the "County") is considering entering into an installment financing contract in an amount not to exceed $7,000,000 (the "Contract') to (1) refinance the County's installment payment obligations under an Installment Financing Contract dated as of January 15, 2005 (the "Prior Contract") between the County and Bank of America, N.A., the proceeds of which were used to finance all or a portion of the costs to acquire, construct, renovate, equip and furnish a County Agricultural Center (the "Agriculture Center") and a County Animal Control Shelter (collectively, the "2005 Projects"), (2) finance various improvements and repairs to the County's public works facility (the "Public Works Facility"), (3) finance the acquisition of certain real property (collectively, the "Land") owned by Harnett Forward Together Committee ("HFTC") by repaying HFTC's outstanding indebtedness with respect to the Land and (4) pay certain costs incurred in connection with the execution and delivery of the Contract. In order to secure the County's obligations under the Contract, the Board is also considering the execution and delivery of a deed of trust, security agreement and fixture filing (the "Deed of Trust") related to the County's fee simple interest in all or portion of the real property on which the Agriculture Center and the Public Works Facility are located, together with the improvements thereon (collectively, the "Premises"). The Agricultural Center is located at 126 Alexander Drive, Lillington, North Carolina 27546. The Public Works Facility is located at 200 Alexander Drive, Lillington, North Carolina 27546. All or a portion of the Premises will be mortgaged under the Deed of Trust. On the County's payment of all installment payments due under the Contract, the Contract and any lien created by the Deed of Trust will terminate, and the County's title to the Premises will be unencumbered. NOTICE IS HEREBY GIVEN, pursuant to Sections 160A-20 of the General Statutes of North Carolina, that on June 30, 2015 at 9:00 a.m. in the County Commissioners' Meeting Room, Harnett County Administration Building, 102 East Front Street, Lillington, North Carolina, a public hearing will be conducted concerning the approval of the execution, delivery and performance of the Contract and the Deed of Trust and the transactions contemplated thereby. All interested parties are invited to present comments at the public hearing regarding the execution, delivery and performance of the Contract and the Deed of Trust and the transactions contemplated thereby. /s/ Mar arg_ et Regina Wheeler Clerk to the Board of Commissioners County of Harnett, North Carolina Published: June 18, 2015