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December 3, 2007 (Work Session) Page 640
<br />of Contingency Funds to Update Addressing Data - $15,000.00) on the December
<br />17, 2007 Agenda as a Consent item.
<br />Resolution Approving Installment Contract Financing for Public School
<br />Projects in an Aggregate Principal Amount up to $63,000,000.00
<br />Pam Dubois, Deputy County Manager, reported the next step in the
<br />issuance of COPS (Certificates of Participation) is the adoption of a
<br />resolution approving installment contract financing for public school
<br />projects in an aggregate principal amount up to $63 million. She further
<br />reported the County has filed an application with the Local Government
<br />Commission that will be considered at their January 8, 2008 meeting.
<br />Cabarrus County Schools' projects included in the financing were identified
<br />as: the Cox Mill Hiqh School, the architect and engineering fees for A.T.
<br />Allen, a new middle school in the southwest area, the Lower Rocky River
<br />Elementary School, Northwest Elementary, and renovations to the Mount
<br />Pleasant Middle School. Kannapolis City Schools' projects included in the
<br />financing were identified as: a land purchase for a new school and
<br />architectural and engineering fees for the A.L. High School. Projects
<br />totaled $64,890,086.00.
<br />UPON MOTION of Vice Chairman Juba, seconded by Commissioner Mynatt and
<br />unanimously carried, the Board voted to place the Resolution Approving
<br />Installment Contract Financing for Public School Projects in an Aggregate
<br />Principal Amount up to $63, 000, 000.00 on the December 17, 2007 Agenda as a
<br />Consent item.
<br />Approval of Engagement Letter for Underwriting Services with UBS Securities,
<br />LLC
<br />At the request of the County Manager, Pam Dubois, Deputy County
<br />Manager, provided a brief explanation on the services provided by the
<br />County's underwriters related to Certificates of Participation (COPS). She
<br />reported a resolution engaging the underwriting services of UBS & Ferris,
<br />Baker & Watts for a three-year period is set to expire on December 31, 2007.
<br />She explained the personnel that the Finance Department has worked with over
<br />the years at Ferris, Baker & Watts (FBW) are no longer with the company and
<br />upon the advice of the County Attorney, FBW was provided with a 90-day notice
<br />of the County's intent not to renew the contract. Next, she presented an
<br />engagement letter for underwriting services with UBS Securities, LLC for a 3-
<br />year period with two one-year renewals. With the exception of a management
<br />fee, she reported the fee structure is the same as the previous resolution.
<br />For example, she said the management fee on a $60 million issue would add
<br />$60,000.00 to the cost of the debt. She pointed out that if General
<br />Obligations Bonds are issued, then the management fee will not be charged and
<br />the engagement letter includes remarketing services.
<br />Ms. Dubois responded to a variety of questions related to: bidding the
<br />underwriting services out, quality of services provided by the underwriter,
<br />the prevailing rate of management fees, etc.
<br />Several Board members expressed a willingness to approve the engagement
<br />letter as presented while other wanted to have more information on the
<br />management fees.
<br />John D. Day, County Manager, stated surrounding counties would be
<br />surveyed and their responses provided to the Board.
<br />UPON MOTION of Vice Chairman Juba, seconded by Commissioner Privette
<br />and unanimously carried, the Board voted to place approval of the engagement
<br />letter for underwriting services with UBS Securities, LLC on the December 17,
<br />2007 Agenda as a Consent item.
<br />Note: Later in the meeting, Mr. Day reported the underwriters emailed
<br />Ms. Dubois and asked to have the management fees removed from the proposal.
<br />Cabarrus Arena and Events Center - Approval of Incentives to SMG for FY 07 in
<br />Accordance with the Management Services Agreement and Food S Beverage
<br />ces
<br />Mike Downs, Deputy County Manager and Frank Lapsley,
<br />the Cabarrus Arena and Events Center, presented information
<br />incentives for SMG FY 07 as follows:
<br />General Manager of
<br />on the management
<br />Management Agreement
<br />Quantitative Incentive - $99,979
<br />
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