081319August 13, 2019
Special Meeting on Detention Center Financing and Closed Session on Randolph Health
The Randolph County Board of Commissioners met in a special meeting at 3:30 p.m. in the
Randolph County Emergency Services building located at 760 New Century Drive, Asheboro,
North Carolina, to discuss financing of the Detention Center addition and adjourning to a closed
session pursuant to North Carolina General Statutes Section 143-318.11 for the purpose of
discussing competitive healthcare activities by or on behalf of Randolph Health, which discussion
is privileged and confidential pursuant to North Carolina General Statutes Section 131E-97.3, as
is permitted by North Carolina General Statute 1436-318.1l(a)(1). Chairman Darrell Frye, Vice -
Chairman David Allen, and Commissioners Kenny Kidd, Maxton McDowell, and Hope Haywood
were present. Also present were County Manager Hal Johnson, Finance Officer Will Massie,
County Attorney Ben Morgan, Associate County Attorney Aimee Scotten, and Clerk to the Board
Dana Crisco.
Detention Center Financing
Aimee Scotten, Associate County Attorney, said there is a need to renovate and expand the
Randolph County Detention Center. The Board has made the decision to finance the cost of these
renovations through the issuance of local obligation bonds. The first step in beginning this process
is to make certain findings, namely that:
• The proposed installment financing is necessary or expedient; and
• The proposed installment financing is preferable to a general obligation bond issue for the
same purpose; and
• The sums are adequate and not excessive for the proposed purpose; and
• The County's debt management procedures and policies are good and will continue to be
managed in strict compliance with the law; and
• No increase in taxes will be necessary due to the proposed installment financing; and
• The County is not in default regarding any of its debt service obligations.
She stated if the Board makes the above findings and wishes to proceed with the financing and
renovation of the detention center, then it is necessary to pass the resolution entitled "Resolution
Making Certain Findings and Appointments and Requesting Approval of the Local Government
Commission." This resolution memorializes those findings, authorizes County staff to file an
application for approval of the financing with the Local Government Commission, and appoints
Robinson Bradshaw & Hinson, P.A. as bond counsel for this transaction.
Ms. Scotten said if the Board passes the resolution making the findings, the next step is to hold
a public hearing on whether to proceed with the proposed financing. If the intent is to proceed,
the resolution entitled "Resolution Calling a Public Hearing on Whether the Board of
Commissioners for the County of Randolph, North Carolina Should Approve a Proposed
Installment Financing to Finance a Portion of the Cost of Various Projects" must also be passed.
This resolution sets the public hearing on the financing and the property acquisition for the regular
meeting on September 3, 2019.
On motion of Allen, seconded by Kidd, the Board voted unanimously to 1) approve the
Resolution Making Certain Findings and Appointments and Requesting Approval of the Local
Government Commission, and 2) approve the Resolution Calling a Public Hearing on Whether
the Board of Commissioners for the County of Randolph, NC Should Approve a Proposed
Installment Financing to Finance a Portion of the Cost of Various Projects, and 3) set a Public
Hearing for September 3, 2019, as follows:
RESOLUTION MAKING CERTAIN FINDINGS AND APPOINTMENTS AND
REQUESTING APPROVAL OF THE LOCAL GOVERNMENT COMMISSION
WHEREAS, the County of Randolph (the "County') has determined to finance a
portion of the cost of renovating, constructing, equipping and improving the Randolph
County Detention Center (the "Project'); and
WHEREAS, the County is considering undertaking an installment financing
pursuant to G.S. §160A-20, as amended, for the purpose of providing funds in an
amount not to exceed $36, 000, 000, with other available funds, for the construction and
other accomplishment of the Project;
NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners as
follows:
1. The Board of Commissioners hereby finds and determines in connection with the
proposed installment financing contract that (a) such proposed installment financing
is necessary or expedient to the County, (b) such proposed installment financing, under
current circumstances, is preferable to a general obligation bond issue of the County
for the same purpose, (c) the sums estimated to fall due under such proposed
installment financing are adequate and not excessive for their proposed purpose, (d)
the County's debt management procedures and policies are good and its debt will
continue to be managed in strict compliance with the law, (e) no increase in taxes will
be necessary due to the proposed installment financing and f the County is not in
default regarding any of its debt service obligations.
2. The County Manager, the Finance Officer and the Associate County Attorney of the
County are each hereby designated as a representative of the County to file an
application for approval of such installment financing with the Local Government
Commission of North Carolina and are authorized to take such other actions as may
be advisable in connection with such proposed acquisition and the development ofsuch
installment financing; and all actions heretofore taken by any of such officers or any
other officer of the County relating to such matters on behalf of the County are hereby
approved, ratified and confirmed.
3. The Board hereby requests the Local Government Commission of North Carolina to
approve such proposed installment financing under Article 8 of Chapter 159 of the
General Statutes ofNorth Carolina. The Board appoints Robinson Bradshaw & Hinson
P.A. as special counsel for the transaction.
4. This Resolution shall become effective immediately upon its adoption.
RESOLUTION CALLING A PUBLIC HEARING ON WHETHER THE BOARD OF
COMMISSIONERS FOR THE COUNTY OF RANDOLPH, NORTH CAROLINA
SHOULD APPROVE A PROPOSED INSTALLMENT FINANCING TO FINANCE A
PORTION OF THE COST OF VARIOUS PROJECTS
WHEREAS, the County of Randolph (the "County') has determined to finance a portion
of the cost of renovating, constructing, equipping and improving the Randolph County
Detention Center (the `Project'); and
WHEREAS, the County is considering undertaking an installment financing pursuant to
G. S. §160A-20, as amended, for the purpose ofproviding funds in an amount not to exceed
$36, 000, 000, with other available funds, for the construction and other accomplishment of
the Project, and the County is authorized to do so only after a public hearing on such
proposed agreement; and
WHEREAS, it is necessary to call a public hearing on such proposed agreement;
NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners as follows:
1. A public hearing shall be held at 6:00 P.M. on September 3, 2019 at the 1909 Randolph
County Historic Courthouse Meeting Room, 145-C Worth Street, Asheboro, North Carolina
27203, for the purpose of considering whether the Board of Commissioners for the County
(the "Board') should approve such proposed installment financing and certain related
documents pursuant to G. S. §160A-20, as amended, for the purpose ofproviding funds in an
amount not to exceed $36, 000, 000, with any other available funds, for the construction and
other accomplishment of the Project. The County would secure the repayment by it of
moneys advanced pursuant to such proposed agreement by granting a security interest in all
or a portion of the Project and certain related property.
2. The Clerk to the Board shall cause a notice of such public hearing to be published in The
Courier -Tribune once at least 10 days before September 3, 2019.
3. This resolution shall take effect immediately upon its passage.
Closed Session
At 3:40 p.m., on motion of Kidd, seconded by McDowell, the Board went into closed session
pursuant to North Carolina General Statutes Section 143-318.11 for the purpose of discussing
competitive healthcare activities by or on behalf of Randolph Health, which discussion is
privileged and confidential pursuant to North Carolina General Statutes Section 131E-97.3, as is
permitted by North Carolina General Statutes Section 143-318.1 ](a)(]).
Regular Session Resumed
At 5: 36 p. m., regular session resumed.
On motion of McDowell, seconded by Kidd, the Board voted unanimously to request an
engagement letter from Nexsem Pruet for legal representation as it relates to Randolph Health
going forward with the understanding that any services rendered prior to September 3, 2019, will
be paid by the County.
Adjournment
At 5:40 p.m., on motion of Kidd, seconded by Allen, the Board voted unanimously to adjourn.
Darrell Frye, Chairman David Allen
Kenny Kidd
Hope Haywood
Maxton McDowell
Dana Crisco, Clerk to the Board