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July 23, 2007 (Regular Meeting) Page 505
<br />Selected Bank of America: the second lowest bidder for the following
<br />reasons:
<br />1. Sun Trust proposed, lowest bidder, a lease versus a installment
<br />contract which was requested in the bid document.
<br />2. Sun Trust prepayment clause only allows for prepayment on the
<br />payment due dates versus any date as requested.
<br />3. Sun Trust requests that our council draft all contract documents.
<br />The cost associated with this exceeds the savings between the
<br />first and second bidder.
<br />UPON MOTION of Commissioner White, seconded by Commissioner Mynatt and
<br />unanimously carried, the Board adopted the following resolution and budget
<br />amendment:
<br />Resolution No. 2007-16
<br />RESOLUTION APPROVING INSTALLMENT CONTRACT FINANCING FOR PUBLIC
<br />SCHOOL PROJECTS IN AN AGGREGATE PRINCIPAL AMOUNT UP TO $7,900,000
<br />AND AUTHORIZING THE EXECUTION AND DELIVERY OF RELATED DOCUMENTS
<br />IN CONNECTION THEREWITH, AND PROVIDING FOR CERTAIN OTHER RELATED
<br />MATTERS
<br />WHEREAS, the Board of Commissioners desires to approve a proposed plan
<br />of financing in an aggregate principal amount of up to $7,900,000, which plan
<br />would involve the entry by the County into an installment financing contract
<br />with Bank of America, N.A. (the "Bank") pursuant to North Carolina General
<br />Statutes 160A-20, as amended, the proceeds of which would be used to pay all
<br />or a portion of the costs of acquiring real property, constructing,
<br />renovating and equipping new public school facilities, expansion or
<br />renovation of existing public school facilities, various real and personal
<br />property improvements related to the foregoing and a portion of the interest
<br />to accrue under the installment financing contract(s) during the construction
<br />period (collectively the "Project"), and under said installment financing
<br />contract the County would secure the repayment by the County of the moneys
<br />advanced pursuant to such contract by granting a security interest in and
<br />lien on all or a portion of the Project;
<br />WHEREAS, there have been submitted to this meeting draft forms of the
<br />following documents (the "Financing Documents") with respect to the financing
<br />for the Project:
<br />(1) an Installment Financing Agreement, proposed to be dated on or
<br />about August 15, 2007 (the "Contract"), between the County and the Bank as
<br />counterpart y, pursuant to which the Bank will advance moneys to the County
<br />for the costs of the Project and the County agrees to make periodic
<br />installment payments (the "Installment Payments") to repay the moneys so
<br />advanced, with interest; and
<br />(2) a Deed of Trust and Security Agreement (the "Deed of Trust"),
<br />proposed to be dated on or about August 15, 2007, among the County as
<br />Grantor, the Bank as Beneficiary and the trustee named therein, by which the
<br />County would secure its obligations to the Bank under the Contract;
<br />WHEREAS, the obligations of the County to make Installment Payments and
<br />other payments pursuant to the Contract shall constitute limited obligations
<br />of the County payable solely from currently budgeted appropriations of the
<br />County and shall not constitute a pledge of the faith and credit of the
<br />County within the meaning of any constitutional debt limitation;
<br />WHEREAS, no deficiency judgment may be rendered against the County in
<br />any action for breach of a contractual obligation under the Contract, and the
<br />taxing power of the County is not and may not be pledged in any way directly
<br />or indirectly or contingently to secure any moneys due under the Contract;
<br />and
<br />WHEREAS, the Board of Commissioners desires to approve the Financing
<br />Documents and to authorize other actions in connection therewith;
<br />NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners, as
<br />follows:
<br />Section 1. All actions taken by or on behalf of the County to date to
<br />effectuate the proposed financing, including the selection of the Bank as the
<br />counterparty to the installment financing contract and Helms Mullis &
<br />Wicker, PLLC, as special counsel, are hereby ratified, approved and
<br />authorized pursuant to and in accordance with the transactions contemplated
<br />by the Financing Documents.
<br />Section 2. The acquisition, construction and equipping of the Project,
<br />the financing thereof and the granting of security interests therein, all as
<br />provided in the Financing Documents referenced in this Resolution, are hereby
<br />ratified and approved.
<br />Section 3. Each of the Contract, the Deed of Trust and the Escrow
<br />Agreement is hereby approved in substantially the form submitted to this
<br />
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