HomeMy WebLinkAbout06232003
-- --
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 -