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HomeMy WebLinkAboutJanuary_29_2008_Special_Meeting_MinutesIREDELL COUNTY BOARD OF COMMISSIONERS SPECIAL MEETING MINUTES JANUARY 29, 2008 The Iredell County Board of Commissioners met in Special Session on Tuesday, January 29, 2008, at 7:00 P.M., in the Iredell County Government Center (Commissioners' Meeting Room), 200 South Center Street, Statesville, NC. Board Members Present Chairman Marvin Norman Steve Johnson Ken Robertson Absent: Sara Haire Tice Godfrey Williams Staff present: County Manager Joel Mashburn, County Attorney Bill Pope, Deputy County Manager Susan Blumenstein, and Clerk to the Board Jean Moore. CALL TO ORDER by Chairman Norman INVOCATION by Commissioner Johnson PLEDGE OF ALLEGIANCE PUBLIC HEARING The Chairman announced that this was the hour and day fixed by the Board of Commissioners for the public hearing upon the proposed financing, pursuant to an installment financing agreement, to be dated as of March 1, 2008 or such other date as the parties thereto shall mutually agree upon (the "Installment Financing Agreement"), between the County of Iredell, North Carolina (the "County") and Iredell County Public Facilities Corporation, a North Carolina non-profit corporation (the "Corporation"), of (i) the expansion of Celeste Henkel Elementary School, including the replacement of existing classrooms and the construction and equipping of additional classrooms, a new administration area and a media center, (ii) the construction and equipping of the new 950 -student Coddle Creek Elementary School, including the acquisition of land therefor, (iii) the expansion of East Iredell Elementary School, including the construction and equipping of additional classrooms and resource rooms, a media center and administration area and the reconfiguration of existing classrooms, (iv) the construction and equipping of the new Cloverleaf Elementary School to replace two existing elementary schools, (v) the expansion of Shepherd Elementary School, including the construction and equipping of additional classrooms and resource rooms, (vi) the expansion of South Iredell High School, including the construction of additional classrooms, a new gymnasium and locker rooms and a media center, (vii) the expansion of Statesville High School, including the construction and equipping of additional classrooms and resource rooms, a new administration area and a media center, the renovation of existing classrooms, and related site work, (viii) the construction and equipping of the new 750 -student Rocky River Road Elementary School, (ix) the conversion of the existing Mooresville Intermediate School to a new middle school, including the construction of additional classroom space, the renovation of existing space and the construction of new athletic facilities, including a baseball field, tennis courts, a football stadium and related bathroom facilities, and (x) the acquisition of an approximately 189 -acre tract of land adjacent to the County's solid waste disposal facility in Statesville, North Carolina to provide for expansion of such solid waste disposal facility (collectively, the "Project"), and that the Board of Commissioners would hear anyone who may wish to be heard with respect to the Installment Financing Agreement. As a matter of information, the Director of Finance and Administrative Services of the County described the nature of the Project, including the estimated cost thereof ($120,000,000), and the installment payments to be made by the County under the Installment Financing Agreement for such purposes. No one appeared, either in person or by attorney, to be heard with respect to the Installment Financing Agreement except Dan and Dennis Watkins, the owners of the Lakewood Golf Club, located at 390 Airport Road, Statesville, NC. Dan Watkins questioned the board about the 189 -acre -land purchase and the business (Twin Oaks Golf Course) that existed there. He asked if the county planned to operate the site as a golf course until the property was needed for landfill expansion. Watkins said, if so, this would be unfair competition to his golf company. County Attorney Pope said a contract had been negotiated with the property owners with the following conditions: (1) the purchase price would be $4,750,000 (2) the county would enter into a three-year agreement with a management company to operate the golf course (3) the contract would have a six-month termination clause (4) the management company would have a $12,000 a -year -lease and (5) the management company would return 50% of any golfing business profit to the county. Dan Watkins asked if the lease arrangement would be up for competitive bidding. Dennis Watkins questioned the legitimacy of leased public land that was in competition with the private sector. He said the lease rental amount should have been based on market value. Attorney Pope said the county had no choice -- the terms were stipulated in the purchase contract. All of the foregoing statements were duly considered by the Board of Commissioners. Thereupon the Chairman introduced the following resolution, a copy of which had been provided to each Commissioner, which was read by title and summarized by the Director of Finance and Administrative Services: RESOLUTION MAKING CERTAIN FINDINGS RELATING TO THE FINANCING OF CERTAIN SCHOOL FACILITIES AND LAND ACQUISITION TO PROVIDE FOR EXPANSION OF A SOLID WASTE DISPOSAL FACILITY PURSUANT TO AN INSTALLMENT FINANCING AGREEMENT AND AUTHORIZING THE DIRECTOR OF FINANCE AND ADMINISTRATIVE SERVICES TO FILE APPLICATION FOR APPROVAL THEREOF BY THE LOCAL GOVERNMENT COMMISSION BE IT RESOLVED by the Board of Commissioners for the County of Iredell, North Carolina (the "County"): Section 1. The Board of Commissioners does hereby find, determine and declare as follows: (a) The County proposes to finance (i) the expansion of Celeste Henkel Elementary School, including the replacement of existing classrooms and the construction and equipping of additional classrooms, a new administration area and a media center, (ii) the construction and equipping of the new 950 -student Coddle Creek Elementary School, including the acquisition of land therefor, (iii) the expansion of East Iredell Elementary School, including the construction and equipping of additional classrooms and resource rooms, a media center and administration area and the reconfiguration of existing classrooms, (iv) the construction and equipping of the new Cloverleaf Elementary School to replace two existing elementary schools, (v) the expansion of Shepherd Elementary School, including the construction and equipping of additional classrooms and resource rooms, (vi) the expansion of South Iredell High School, including the construction of additional classrooms, a new gymnasium and locker rooms and a media center, (vii) the expansion of Statesville High School, including the construction and equipping of additional classrooms and resource rooms, a new administration area and a media center, the renovation of existing classrooms, and related site work, (viii) the construction and equipping of the new 750 -student Rocky River Road Elementary School, (ix) the conversion of the existing Mooresville Intermediate School to a new middle school, including the construction of additional classroom space, the renovation of existing space and the construction of new athletic facilities, including a baseball field, tennis courts, a football stadium and related bathroom facilities, and (x) the acquisition of an approximately 189 -acre tract of land adjacent to the County's solid waste disposal facility in Statesville, North Carolina to provide for expansion of such solid waste disposal facility (collectively, the "Project"), pursuant to an installment financing agreement, to be dated as of March 1, 2008 or such other date as the parties thereto shall mutually agree upon (the "Installment Financing Agreement"), between the County and Iredell County Public 2 Facilities Corporation (the "Corporation") and the County will make Installment Payments (as defined in the Installment Financing Agreement) in amounts sufficient to pay the principal and interest with respect to the Certificates of Participation (Iredell County Public Improvement Projects), Series 2008 (the "2008 Certificates") to be executed and delivered by the Corporation to finance the Project, it being the express intention of the Board of Commissioners that only the principal amount of 2008 Certificates necessary to accomplish the purposes stated in the Installment Financing Agreement will be executed and delivered (estimated not to exceed $120,000,000). (b) The Project is necessary in order to provide public school facilities essential to the public health, safety and welfare of the citizens of the County. (c) Based on advice from the County's investment bankers as to current tax-exempt interest rates, the sums to fall due under the Installment Financing Agreement are not excessive for its stated purposes; moreover, the estimated cost of the Project is not excessive. (d) Counsel to the County has rendered an opinion that the proposed undertakings are authorized by law and are purposes for which public funds may be expended pursuant to the Constitution and laws of the State of North Carolina. (e) The Installment Financing Agreement, under the circumstances presently obtaining, is preferable to a general obligation bond issue for this purpose. The County's current fund balance is, in light of other requirements and prudent fiscal management, insufficient to fund the entire cost of the Project, the County does not have the ability to issue sufficient non - voted bonds under the provisions of Article V, Sec. 4 of the North Carolina Constitution for the purposes of financing the Project, and voting general obligation bonds for this purpose will result in unacceptable delay and additional cost to the County. (f) The estimated cost of financing the Project pursuant to the Installment Financing Agreement compares reasonably and favorably with an estimate of similar cost for general obligation bond financing therefor. The primary difference in cost results from higher issuance costs, but this amount is insignificant when compared to the total cost of financing the Project. (g) The debt management policies of the County have been carried out in strict compliance with law, including the filing of all required audits and reports with the Local Government Commission (the "LGC"), and the County is within its statutory debt limit and is not in default with respect to any of its outstanding indebtedness. (h) The County estimates that no increase in the property tax rate will be required to raise sums to pay the estimated debt service to fall due under the Installment Financing Agreement for all of its stated purposes. (i) The County has made timely payment of all sums owed by it with respect to the payment of principal of and interest on all of its outstanding debt obligations and has received no notice from the LGC or any holder concerning the County's failure to make any required payment of debt service. Section 2. The LGC is hereby requested to approve the proposed Installment Financing Agreement pursuant to the provisions of Article 8 of Chapter 159 of the General Statutes of North Carolina, and the Director of Finance and Administrative Services of the County is directed to complete all applications and execute all documents required in connection with obtaining such approval. Section 3. The LGC is hereby requested to approve the selection of the following professionals who comprise the financing team, and such other professionals as may be required or useful and acceptable to the LGC, to assist the County in connection with such financing: Special Counsel Sidley Austin LLP P Underwriters Citigroup Global Markets, Inc. (Senior Manager) and Wachovia Bank, National Association Underwriters' Counsel Womble Carlyle Sandridge & Rice, PLLC Trustee US Bank National Association Corporation Counsel Pressly, Thomas & Conley, P.A. Section 4. All actions heretofore taken by the County Manager and the Director of Finance and Administrative Services in connection with the Installment Financing Agreement and the 2008 Certificates, including filing the application with the LGC, retaining Special Counsel and selecting investment banking firms and a trustee, are hereby ratified and confirmed. Section 5. This resolution shall take effect immediately upon its passage. 3 Upon motio of Commissioner Steve Johnson, the foregoing resolution entitled "RESOLUTION MAKING CERTAIN FINDINGS RELATING TO THE FINANCING OF CERTAIN SCHOOL FACILITIES AND LAND ACQUISITION TO PROVIDE FOR EXPANSION OF A SOLID WASTE DISPOSAL FACILITY PURSUANT TO AN INSTALLMENT FINANCING AGREEMENT AND AUTHORIZING THE DIRECTOR OF FINANCE AND ADMINISTRATIVE SERVICES TO FILE APPLICATION FOR APPROVAL THEREOF BY THE LOCAL GOVERNMENT COMMISSION" was passed by the following vote: Ayes: 3 (Commissioners Marvin Norman, Steve Johnson, and Ken Robertson) Noes: 0 ADJOURNMENT: MOTION by Commissioner Steve Johnson at 7:20 P.M. to adjourn the meeting. (NEXT MEETING: Tuesday, February 5, 2008, 5 & 7 P.M., in the Iredell County Government Center, 200 South Center Street, Statesville, NC.) Ayes: 3 Noes: 0 Approval: 4 Clerk to the Board