HomeMy WebLinkAboutAgenda - 05-19-2015 - 7cORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: May 19, 2015
Action Agenda
Item No. 7 -c
SUBJECT: Adoption of the Final Financing Resolution Authorizing the Issuance of
$15,870,000 in Installment Financing for Various Capital Investment Plan
Projects and Equipment, and the Refinancing of Approximately $10,200,000
from Two 2006 Installment Financing Issuances
DEPARTMENT: Finance and Administrative PUBLIC HEARING: (Y /N) No
Services
ATTACHMENT(S):
Attachment 1. April 7, 2015 Public
Hearing Agenda Abstract
Attachment 2. Resolution Providing Final
Approval of Terms and
Documents for 2015
County Installment
Financing (Beginning on
Page #15 of this
Package)
INFORMATION CONTACT:
Paul Laughton, (919) 245 -2152
Robert Jessup, (919) 933 -9891
PURPOSE: To adopt the final financing resolution authorizing the issuance of approximately
$15,870,000 in installment financing to finance capital investment projects and equipment for
the year, and the refinancing of approximately $10,200,000 from two 2006 installment financing
issuances, with the financing will also including amounts to pay transaction costs.
BACKGROUND: At its November 6, 2014 meeting, the Board of County Commissioners was
given preliminary information of capital projects and equipment financing for the year. At that
meeting, the Board made a preliminary determination to finance costs of these projects and
equipment by the use of an installment financing, as authorized under Section 160A -20 of the
North Carolina General Statutes.
Also included is the refinancing of approximately $10,200,000 from a 2006 installment financing
secured by Carrboro High School, and a 2006 Certificates of Participation installment financing
secured by Gravelly Hill Middle School.
The statutes require that the County conduct a public hearing on the proposed financing and
refinancing contracts. The Board conducted a public hearing at its April 7, 2015 meeting, and
adopted the resolution supporting the application to the Local Government Commission (LGC)
for approval of the financing and refinancing arrangements (Attachment 1). County staff has
been in contact with the LGC staff, and staff expects no obstacles to receiving LGC approval.
If the Board adopts the final financial resolution (Attachment 2 — beginning on page 15 of this
package) giving final approval to the financing and refinancing plans at tonight's meeting, staff
expects the LGC to approve the financing and refinancing plans at the LGC's meeting on June
2, 2015.
Under the current schedule, staff expects to set the final interest rates and other terms of the
financing around June 15, and to close on the financing and refinancing by the end of June
2015. It should be noted that the installment financing issuance package has been reduced by
$400,000 with the removal of planning funds for the Southern Orange Campus project. Due to
the timing of this current financing package, these planning funds can be combined with the
financing of the Southern Human Services Center expansion project scheduled in FY 2016 -17.
The Board is requested to approve a financing amount not to exceed $28,000,000, and a
maximum interest rate of 3.75 %. The final financial resolution (Attachment 2) includes as
Exhibit B a list of draft documents. These lengthy documents are available to the Board and the
public for review upon request from the Orange County Finance and Administrative Services
Department.
FINANCIAL IMPACT: There will be a financial impact associated with approval of the
financing. At current rates, preliminary estimates of maximum debt service applicable to the
capital investment projects and equipment financing would require the highest debt service
payment of $1,732,695 falling in FY 2016 -17. The tax rate equivalent for the estimated highest
debt service payment is approximately 1.06 cents. However, a portion of this debt financing is
related to projects where the debt service payments will be paid for from Sportsplex and Solid
Waste Enterprise funds, as well as a Water and Sewer project to be paid from the Article 46
quarter -cent Sales Tax proceeds earmarked for economic development.
The General Fund portion of this annual debt service is estimated at $1.1 million or a tax rate
equivalent of approximately 0.67 cents. Based on current resources and the retirement of some
existing debt, no adjustment to the tax rate associated with this financing is anticipated to occur
during the period noted. Regarding the refinancing, it is estimated that the County will realize
savings of approximately $451,788 over the life of the refinancing term.
The financing does include amounts to pay transaction costs.
RECOMMENDATION(S): The Manager recommends that the Board approve the resolution
(Attachment 2 — beginning on page 15 of this package) authorizing the steps to move forward
with the financing of the stated capital projects and equipment, and the refinancing of the two
2006 installment financing issuances.
May 19, 2015 ATTACHMENT 1 3
COPY ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: April 7, 2015
Action Agenda
Item No. 5 -b
SUBJECT: Public Hearing on the Financing of Various Capital Investment Plan Projects
and Equipment, and the Refinancing of Two 2006 Installment Financing
DEPARTMENT: Finance and Administrative PUBLIC HEARING: (Y /N) Yes
Services
ATTACHMENT(S):
Attachment 1. November 6, 2014
Agenda Abstract
Attachment 2. Copy of Public Hearing
Notice
Attachment 3. Resolution
INFORMATION CONTACT:
Paul Laughton, (919) 245 -2152
PURPOSE: To conduct a public hearing on the issuance of approximately $16,270,000 to
finance capital investment projects and equipment for the year; carry out refinancing of
approximately $10,200,000 from two 2006 installment financing issuances; and approve a
related resolution supporting the County's application to the Local Government Commission
(LGC) for its approval of the financing arrangements.
BACKGROUND: At its November 6, 2014 meeting, the Board of County Commissioners
received preliminary information of capital projects and equipment financing for the year
(Attachment 1). At that meeting the Board made a preliminary determination to finance costs of
these projects and equipment by the use of installment financing, as authorized under Section
160A -20 of the North Carolina General Statutes. County staff estimates that the total amount to
be financed for capital investment projects and equipment will be approximately $16,270,000.
The financing will also include amounts to pay transaction costs.
Also included is the refinancing of approximately $10,200,000 from a 2006 installment financing
secured by Carrboro High School, and a 2006 Certificates of Participation installment financing
secured by Gravelly Hill Middle School.
The statutes require that the County conduct a public hearing on the proposed financing and
refinancing contracts. A copy of the published notice of this hearing is provided (Attachment 2).
After conducting the public hearing and receiving public input, the Board will consider the
adoption of the resolution (Attachment 3). This resolution formally requests the required
approval from the North Carolina Local Government Commission for the County's financing
arrangements, and makes certain findings of fact as required under the LGC's guidelines.
M
County staff has been in contact with the LGC staff, and staff expects no obstacles to receiving
LGC approval.
If the Board adopts the resolution (indicating its intent to continue with the financing and
refinancing plans), the Board will be asked to consider a resolution giving final approval to the
financing and refinancing plans at its April 21, 2015 meeting. Staff expects the LGC to approve
the financing and refinancing plans at the LGC's meeting on May 5, 2015. Under the current
schedule, staff expects to set the final interest rates and other terms of the financing around
May 5, and to close on the financing and refinancing by the end of May 2015.
FINANCIAL IMPACT: There is no financial impact related to this action. However, there will be
a financial impact in proceeding with the financing. A preliminary estimate of maximum debt
service applicable to the capital investment projects and equipment financing would require the
highest debt service payment of $1,765,240 falling in FY 2016 -17. The tax rate equivalent for
the estimated highest debt service payment is approximately 1.08 cents. However, a portion of
this debt financing is related to projects where the debt service payments will be paid for from
Sportsplex and Solid Waste Enterprise funds, as well as a Water and Sewer project to be paid
from the Article 46 quarter -cent Sales Tax proceeds earmarked for economic development.
The General Fund portion of this annual debt service is estimated at $1.1 million or a tax rate
equivalent of approximately 0.67 cents. Based on current resources and the retirement of some
existing debt, no adjustment to the tax rate associated with this financing is anticipated to occur
during the period noted. Regarding the refinancing, it is estimated that the County will realize
savings of approximately $451,788 over the life of the refinancing term.
RECOMMENDATION(S): The Manager recommends that the Board conduct the public hearing,
close the public hearing, and adopt the resolution supporting the application to the Local
Government Commission for approval of the financing and refinancing arrangements.
April 7, 2015 - Attachment 1 5
ORANGE COUNTY
BOARD OF COMMISSIONERS
COPY ACTION AGENDA ITEM ABSTRACT
Meeting Date: November 6, 2014
Action Agenda
Item No. 7 -a
SUBJECT: Preliminary Information and Approval to Finance Various Capital Investment
Plan Projects and County Equipment
DEPARTMENT: Finance and Administrative PUBLIC HEARING: (Y /N) N�
Services
ATTACHMENT(S): INFORMATION CONTACTS:
1. Description of Projects to be Financed
2. Financing Schedule Clarence Grier, 919 - 245 -2453
Robert Jessup, 919 - 933 -9891
PURPOSE: To provide a preliminary finding and approve financing for capital investment
projects and equipment for the year.
BACKGROUND: As part of the FY2014 -19 Capital Investment Plan, several projects were
approved for equipment financing. Those projects included the following (see Attachment 1 for
additional information):
Projects Requiring Financing Needed in FY 2014 -15
Project Amount
County Projects:
Cedar Grove Community Center
Southern Orange Campus
HVAC
HVAC Projects (FY2012 -13)
Roofing
Information Technologies
Emergency Services Radio Systems
Communication Systems Improvements
Soccer.com Soccer Center
Lands Legacy
Total County Projects
$ 2,822,226
400,000
150,000
205,999
179,010
450,000
500,000
122,000
125,000
2,400,000
7.354.235
Water & Sewer Projects: (Paid w/ Article 46 Sales Tax Proceeds)
Efland Sewer to Mebane 4,581,400
Total Water & Sewer Projects 4,581,400
Sportsplex Projects:
Phase II - Pool Mezzanine 950,000
Total Sportsplex Projects 950,000
Solid Waste Projects:
Eubanks Road Solid Waste Convenience Center
Total Solid Waste Projects
Equipment/Vehicle Purchases:
Vehicle Replacement Fund
In -Car Cameras Replacements - Sheriff
Board of Elections - Voting Equipment
Board of Elections - Electronic Poll Books
Total Equipment/Vehicle Purchases
Grand Total FY 2014 -15 Financing
640,483
640,483
775,119
517,798
437,385
242,485
1,972,787
$ 15,498,905
Additionally, there are some previous year capital projects, although approved budgetary, for
which the financing was not issued due to the project schedule and decisions. The preliminary
schedule for the financing is attached to the abstract. County staff will be receiving bids from
financial institutions to secure the financing. Staff anticipates receiving $15.5 million in financing
for an average of 10 years at an interest rate of 2.30 percent, which will result in an average
annual debt service cost of $1,752,650.
FINANCIAL IMPACT: There is no financial impact related to this action. However, there will be
a financial impact in proceeding with the financing. A preliminary estimate of debt service
applicable to the financing would be $1,752,650. The tax rate equivalent for the annual debt
service payment is approximately 1.07 cents of the current property tax rate.
RECOMMENDATION(S): The Manager recommends the Board approve moving forward with
the financing of the stated capital project and equipment financing and provide feedback to staff.
November 6, 2014 - Attachment 1 7
ORANGE COUNTY
NORTH CAROLINA
Orange County, North Carolina
Description of Projects to be Financed
Cedar Grove Community Center: Financing for the Cedar Grove Community Center in the Northern Portion of
the County approved in FY2011.
Southern Orange Campus: Financing for the beginning phases and planning for the Southern Orange Campus
and master plan.
HVAC (FY2012 -13 and 2014 -15): Financing of various geothermal projects for County buildings and facilities.
Roofing Projects: Financing for various roofing projects of County Owned buildings and facilities such as Asset
Management Services Warehouse and the Blackwood Farm House.
Information Technologies: Financing for the annual upgrades for server replacements and upgrades, desktop
and laptop replacements, PC software upgrades, GIS software and hardware upgrades
Emergency Services Improvements: Financing for the projects and initiatives as outlined in the Emergency
Services Strategic Plan. FY2014 -15 financing will go to purchase additional towers.
Communication Systems Improvements: Financing to fund the purchase additional communication radios
and systems for Emergency Services and Sherriff Department.
Soccer.com Soccer Center: Financing for the investment in the current facility including restroom
improvements, purchase of adjoining land, construction of new artificial turf fields and other improvements.
Lands Legacy: Continued financing for the award winning Lands Legacy Program to conserve and protect the
County's most critical natural and cultural resources.
Sportsplex Projects
Pool Mezzanine: Financing and funding for the construction of a swimming pool mezzanine at the Orange
County Sportsplex.
Solid Waste Projects:
Eubanks Road Solid Waste Convenience Center: Financing for the improvements for the Eubanks Road Solid
Waste Convenience Center upgrades.
Equipment /Vehicle Purchases
Vehicle Replacement Fund: Financing for the annual purchases and replacement of County vehicles.
In -Car Cameras Replacements — Sheriff: Financing for the upgrading of the in -car cameras for the Sherriff
Department.
Sanford Holshouser LLP
www.Sanfordholshouserlaw.com
November 6, 2014 Attachment 2
Orange County Installment Financing — Schedule
County Board provides informal approval of projects
BOCC meeting of Nov. 6
and general financing plan
County staff makes initial, informal contact with LGC
As soon as convenient
County sends out bank loan RFP
Week of Nov. 10
Publish notice of County public hearing
By Nov. 29 (must be at
least ten days' prior to
hearing date)
Bank proposals due back to the County
Dec. 1
County Board holds public hearing; adopts
BOCC of Dec. 9
preliminary resolution in support of application to
LGC
County makes filing with legislative joint committee
By Dec. 20 for LGC
approval in February
County's preliminary application due to LGC
By Jan. 6 for LGC
approval in February
County Board adopts resolution formally approving
BOCC meeting of Jan. 22
substantially final financing terms and documents
LGC approval
Feb. 3
Loan closing
Feb. 10 or thereafter
e•
April 7, 2015 Attachment 2
Orange County, North Carolina -- Notice of Public Hearing
Financing for Various Public Improvements and Acquisitions
The Board of Commissioners of Orange County, North Carolina, will hold a
public hearing on Tuesday, April 7, 2015, at 7:00pm (or as soon thereafter as the matter
may be heard). The purpose of the hearing is to take public comment concerning a
proposed financing contract, under which the County would borrow approximately
$26,470,000 to pay for the public improvement projects described below as well as to
refinance two of the County's prior installment purchase contracts to achieve savings to
the County.
Project description
Est. Amount Financed
Vehicle replacements
$
760,000
In -car camera replacements for Sheriff's office
$
520,000
Board of Elections equipment
$
700,000
Improvements to Cedar Grove Community Center
$
2,800,000
Southern Orange Campus planning and
improvements
$
400,000
HVAC projects at various County facilities
$
360,000
Roofing projects at various County facilities
$
180,000
Information technology (including central permitting
software)
$
1,250 000
Communications systems improvements, including
Sheriff s department and EMS systems
$
125,000
Soccencom soccer center improvements
$
125,000
Lands Legacy acquisitions
$
2,400,000
10
Sportsplex pool mezzanine
$
950,000
Improvements for Eubanks Road solid waste
convenience center
$
1,100,000
Efland water and sewer improvements
$
4,600,000
Estimated total for new projects
$
16,270,000
Estimated total for refinancings
$
10,200,000
Estimated grand total
$
26,470,000
The two financings that are to be refinanced are a) a 2006 installment financing
contract secured by Carrboro High School and b) a 2006 Certificates of Participation
installment financing secured by Gravelly Hill Middle School. The County may use
additional financing proceeds to pay financing costs or to provide required reserves.
The hearing will be held in the Whiffed Meeting Room at the Orange County
Whiffed Human Services Center Complex, 300 West Tryon Street, Hillsborough, NC
27278.
The proposed financing would be secured by a lien on some or all of the property
purchased or improved through the financing (or subject to the refinancing), as well as
the County's promise to repay the financing, but there would be no recourse against the
County or its property (other than the pledged property) if there were a default on the
financing. The County expects that the collateral for the financing will consist primarily
of Gravelly Hill Middle School.
All interested persons will be heard. The County's plans are subject to change
based on the comments received at the public hearing and the Board's subsequent
discussion and consideration. The County's entering into the financing is subject to
obtaining approval from the North Carolina Local Government Commission.
Persons wishing to make written comments in advance of the hearing or wishing
more information concerning the subject of the hearing may contact Paul Laughton,
Orange County Interim Finance Officer, Post Office Box 8181, Hillsborough, NC 27278
(telephone 919/245 -2152, email plaughton @orangecountync.gov).
11
RES- 2015 -019
April 7, 2015 Attachment 3
Resolution supporting an application to the Local Government Commission for
its approval of a financing agreement for the Countv
WHEREAS --
The Board of Commissioners has previously determined to carry out the
acquisition and construction of various public improvements, as identified in the
County's capital improvement plan, and County staff has determined and advised the
Board that refinancing all or a portion of two prior installment financings may provide
savings to the County.
The Board desires to finance the costs of these projects and to carry out the
refinancing by the use of an installment financing, as authorized under Section 160A -20
of the North Carolina General Statutes.
Under the guidelines of the North Carolina Local Government Commission, the
Board must make certain findings of fact to support the County's application for the
LGC's approval of the County's proposed financing arrangements.
THEREFORE, BE IT RESOLVED by the Board of Commissioners of Orange
County, North Carolina, that the County makes a preliminary determination to finance
approximately $26,470,000 to pay capital costs of various public improvements and to
carry out the refinancing. The proposed list of projects and improvements to be financed
appears in Exhibit A. The two financings that are to be refinanced are a) a 2006
installment financing contract secured by Carrboro High School and b) a 2006
Certificates of Participation installment financing secured by Gravelly Hill Middle
School.
The Board will determine the final amount to be financed by a later resolution.
The final amount financed may be slightly lower or slightly higher than $26,470,000.
Some of the financing proceeds may provide reimbursement to the County for prior
expenditures on project costs, some proceeds may be used to pay financing expenses, and
some proceeds may be used to provide any appropriate reserves.
BE IT FURTHER RESOLVED that the Board of Commissioners makes the
following findings of fact:
(a) The proposed projects are necessary and appropriate for the County under
all the circumstances. The proposed refinancings are necessary and appropriate for the
County under all the circumstances because the refinancings will produce substantial debt
service savings.
12
(b) The proposed installment financing is preferable to a bond issue for the
same purposes.
The County has no meaningful ability to issue non -voted general obligation bonds
for these projects. These projects will not produce sufficient revenues to support a self -
liquidating financing. The County has in the past issued substantial amounts of voter -
approved bonds, and it is appropriate for the County to balance its capital finance
program between bonds and installment financings.
The County expects that in the current interest rate environment for municipal
securities there would be no material difference in interest rates between general
obligation bonds and installment financings for these projects.
(c) The estimated sums to fall due under the proposed financing contract are
adequate and not excessive for the proposed purposes. The County will closely review
proposed financing rates against market rates with guidance from the LGC and its
financial adviser. All amounts financed will reflect either approved contracts, previous
actual expenditures or professional estimates.
(d) As confirmed by the County's Interim Finance Officer, (1) the County's
debt management procedures and policies are sound and in compliance with law, and (ii)
the County is not in default under any of its debt service obligations.
(e) The County estimates that the maximum tax rate impact of paying General
Fund related debt service on the financing will be the equivalent of up to approximately
0.67 cents per $100 of valuation. Based on current resources and the retirement of some
existing debt, no actual tax rate increase related to this financing will be necessary.
(f) The County Attorney is of the opinion that the proposed projects are
authorized by law and are for purposes for which public funds of the County may be
expended pursuant to the Constitution and laws of North Carolina.
BE IT FURTHER RESOLVED as follows:
(a) The Interim Finance Officer is directed to take all appropriate steps toward
the completion of the financing, including (i) completing an application to the LGC for
its approval of the proposed financing, and (ii) soliciting one or more proposals from
financial institutions to provide the financing. All prior actions of County representatives
in this regard are regard are ratified.
(b) This resolution takes effect immediately.
13
I certify as follows: that the foregoing resolution was properly adopted at a
meeting of the Board of Commissioners of Orange County, North Carolina; that this
meeting was properly called and held on April 7, 2015; that a quorum was present and
acting throughout this meeting; and that this resolution has not been modified or
amended, and remains in full effect as of today.
Dated this day of 12015.
[SEAL]
Donna S. Baker
Clerk, Board of Commissioners
14
Exhibit A — proposed projects
Project description
Est. Amount Financed
Vehicle replacements
$
760,000
In -car camera replacements for Sheriff's office
$
520,000
Board of Elections equipment
$
700,000
Improvements to Cedar Grove Community Center
$
2,800,000
Southern Orange Campus planning and improvements
$
400,000
HVAC projects at various County facilities
$
360,000
Roofing projects at various County facilities
$
180,000
Information technology (including central permitting
software)
$
1,250,000
Communications systems improvements, including Sheriff's
department and EMS systems
$
125,000
Soccer.com soccer center improvements
$
125,000
Lands Legacy acquisitions
$
2,400,000
Sportsplex pool mezzanine
$
950,000
Improvements for Eubanks Road solid waste convenience
center
$
1,100,000
Efland water and sewer improvements
$
4,600,000
Estimated total for new projects
$
16,270,000
Estimated total for refinancings
$
10,200,000
Estimated grand total
$
26,470,000
MAY 19, 2015 ATTACHMENT 2 15
RES- 2015 -029
Resolution providing final approval of terms and documents
for 2015 County installment financing
WHEREAS --
The Board of Commissioners has previously determined to undertake the
acquisition, construction and equipping of the public assets and improvements described
on Exhibit A (collectively, the "Project "). In addition, the Board has determined to
refinance certain County obligations, in particular (a) a 2006 installment financing
contract secured by Carrboro High School and (b) a 2006 Certificates of Participation
installment financing secured by Gravelly Hill Middle School, in order to achieve savings
through lower interest rates.
The Board has made a tentative determination to finance the Project costs and the
refinancing costs by the use of an installment financing, as authorized under Section
160A -20 of the North Carolina General Statutes. The Board believes that a single
installment financing would be in the County's best interest. This financing will include
the use of limited obligation bonds, which will represent interests in the installment
payments to be made by the County that can be sold to investors.
The County staff has made available to the Board the draft documents listed on
Exhibit B (the "Documents "), and a draft of an official statement designed to provide
information about the County and the financing to prospective investors in the bonds. All
of these items relate to the County's carrying out the financing plan.
This resolution provides the County Board's final approval of the financing terms
and the substantially final financing documents.
BE IT THEREFORE RESOLVED by the Board of Commissioners of Orange
County, North Carolina, as follows:
1. Determination To Proceed with Financing -- The Board confirms its
decision to carry out the proposed installment financing as described above. As part of
this financing, the County will refinance such of the two existing 2006 County
installment financing obligations referenced in the preamble to this resolution (the "2006
Obligations ") as the Finance Officer may determine.
Under the financing plan, the County will receive funds to carry out the Project
and complete the refinancing of the 2006 Obligations. The County will repay the funds
over time, with interest. The County will secure its repayment obligation by granting a
mortgage -like interest in the Gravelly Hill school property.
16
2. Approval of Documents; Direction To Execute Documents -- The Board
approves the forms of the Documents submitted to this meeting. The Board authorizes the
Chair and the County Manager, or either of them, to execute and deliver those
Documents to which the County is a party. The Documents in their respective final forms
must be in substantially the forms presented, with such changes as the Chair or the
County Manager may approve. The execution and delivery of any Document by an
authorized County officer will be conclusive evidence of that officer's approval of any
changes.
The Documents in final form, however, must provide for the principal amount of
limited obligation bonds to not exceed $28,000,000, a true interest cost of the financing
not to exceed 3.75 %, and a financing term not to extend beyond December 31, 2035. The
amount financed under the Documents may include amounts to pay financing expenses
and other necessary and incidental costs.
3. Sale of Bonds; Approval of Official Statement — The Board appoints
Robert W. Baird & Co. to underwrite a public offering of the proposed limited obligation
bonds.
The Board approves the draft official statement submitted to this meeting as the
form of the preliminary official statement pursuant to which the underwriter will offer the
bonds for sale. The preliminary official statement as distributed to prospective investors
must be in substantially the form presented, with such changes as the Finance Officer
may approve. The Board directs the Finance Officer, after the sale of the bonds, to
complete and otherwise prepare the preliminary official statement as an official statement
in final form.
The Board authorizes the use of the preliminary official statement and the final
official statement (collectively, the "Official Statement ") by the underwriter in
connection with the sale of the bonds.
The Board acknowledges that it is the County's responsibility, and ultimately the
Board's responsibility, to ensure that the Official Statement in its final form neither
contains an untrue statement of a material fact nor omits to state a material fact required
to be included therein for the purpose for which such Official Statement is to be used or
necessary to make the statements therein, in light of the circumstances under which they
were made, not misleading.
4. Call of 2006 Certificates for Prepayment -- The Board authorizes the
Finance Officer to make, on the County's behalf, an irrevocable call for redemption of
such of the Certificates of Participation (Orange County Public Improvement Projects),
Series 2006, as the Finance Officer deems beneficial to the County. The Finance Officer
will make this call for redemption by the execution and delivery of an appropriate
certificate in connection with the original delivery of the planned limited obligation
bonds.
2
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5. Authorization To Refinance Obligations with Existing Lenders — The
Board understands that it may be in the County's best interest to modify some or all of
the 2006 Obligations through agreements with the current lenders, instead of refinancing
those obligations through the issuance of the limited obligation bonds. The Finance
Officer, and all other County officers and representatives, are authorized to take all
appropriate action to carry out such modifications and refinancings with the existing
lenders if the Finance Officer deems that option to be in the County's best interests.
6. Officers To Complete Closing — The County Manager, the Finance Officer
and all other County officers and employees are authorized to take all proper steps to
complete the financing in accordance with the terms of this resolution.
The Board authorizes the County Manager to hold executed copies of all financing
documents authorized by this resolution in escrow on the County's behalf until the
conditions for their delivery have been completed to her satisfaction, and then to release
the executed documents for delivery to the appropriate persons or organizations.
Without limiting the generality of the previous paragraphs, the Board specifically
authorizes the County Manager (a) to approve and enter into, on behalf of the County,
any additional agreements appropriate to carry out the financing plan contemplated by
this resolution, including any relevant agreements for the appointment of the corporate
trustee referenced in Exhibit B, and (b) to approve changes to any documents previously
signed by County officers or employees, provided that such changes do not substantially
alter the intent from that expressed in the form originally signed. The County Manager's
authorization of the release of any document for delivery will constitute conclusive
evidence of her approval of any changes.
In addition, the County Manager and the Finance Officer are authorized to take all
appropriate steps for the efficient and convenient carrying out of the County's on -going
responsibilities with respect to the financing. This authorization includes, without
limitation, contracting with third parties for reports and calculations that may be required
under the Documents, this resolution or otherwise with respect to the bonds.
7. Miscellaneous Provisions -- All County officers and employees are
authorized to take all further action as they may consider necessary or desirable in
furtherance of the purposes of this resolution. In particular, the Clerk to this Board is
directed to apply the County's seal to the final form Documents, and to attest to the
application of the seal. All such prior actions of County officers and employees are
ratified. Upon the unavailability or refusal to act of the County Manager, the Chair or the
Finance Officer, any other of those officers may assume any responsibility or carry out
any function assigned in this resolution. In addition, the Vice Chair or any Deputy or
Assistant Clerk may carry out or exercise any rights or responsibilities assigned in this
resolution to the Chair or the Clerk. All other Board proceedings, or parts of proceedings,
in conflict with this resolution are repealed, to the extent of the conflict. This resolution
takes effect immediately.
3
Exhibit A — Proiect Components
Project Component
Estimated Cost ($)
Improvements to Cedar Grove Community
Center
2,800,000
HVAC projects at various County facilities
360,000
Roofing projects at various County facilities
180,000
Information technology (including central
permitting software)
1,250,000
Communications systems improvements,
especially for the Sheriff s department and
emergency services systems
125,000
Soccer.com soccer center — improvements
and land acquisitions
125,000
Lands Legacy acquisitions
2,400,000
Efland water and sewer improvements
4,600,000
Sportsplex — pool mezzanine
950,000
Improvements for Eubanks Road solid waste
convenience center
1,100,000
Vehicle replacements
760,000
In -car camera replacements for Sheriff s
office
520,000
Board of Elections equipment
700,000
TOTAL
15,870,000
The County will use additional financing proceeds to pay financing costs.
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Exhibit B -- Draft Documents
(a) A draft dated April 30, 2015, of an Installment Financing Contract to be
dated on or about June 1, 2015 (the "Financing Contract "), between the County and
Orange County Public Facilities Company (the "Company), providing for the advance of
funds to the County, for the County's obligation to repay the amounts advanced, and for
the County's responsibilities for the use and care of the collateral.
(b) A draft dated April 30, 2015, of a Deed of Trust and Security Agreement to
be dated on or about June 1, 2015, from the County to a deed of trust trustee for the
Company's benefit, providing for a security interest in the Gravelly Hill Middle School
property to secure the County's obligations under the Financing Contract.
(c) A draft dated April 30, 2015, of a Trust Agreement to be dated on or about
June 1, 2015, between the Company and a Trustee, providing for the issuance of limited
obligation bonds to generate funds for the advance to the County under the Financing
Contract. The bonds are payable from amounts paid by the County under the Financing
Contract.
(d) A draft dated April 30, 2015, of an Escrow Agreement to be dated on or
about June 1, 2015, between the County and the Trustee, providing for the safekeeping
and investment of bond proceeds until the proceeds can be applied to the payment of
existing obligations.
(e) A draft of a Bond Purchase Agreement to be dated on or about June 15,
2015, providing for the underwriter's obligation to purchase the bonds. The final form of
this Agreement will set out the final principal amount, principal payment schedule and
interest rates for the bonds, and the other terms and conditions for the underwriter's
obligation to purchase the bonds.
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