AGENDA #4d

MEMORANDUM

TO:                  Mayor and Town Council

FROM:            W. Calvin Horton, Town Manager

SUBJECT:       Designation of Counsel for Sale of General Obligation Bonds

DATE:             May 10, 2004

The attached resolution would approve using Sanford Holshouser, LLP, as bond counsel in connection with the issuance of General Obligation bonds approved by the voters in November 2003.

BACKGROUND

 

Womble, Carlyle and Rice served as the Town’s bond counsel for the General Obligation Bond Referendum in November 2003.  The voter approval phase of the bond work is complete.  At the same time, Sanford Holshouser, LLP, is serving as counsel for the proposed financing of the Town Operations Center.

 

DISCUSSION

 

Because financing plans need to be coordinated, we believe that it is important to arrange the Town’s financing arrangements for the Town Operations Center and General Obligation bond financings with one counsel.  In addition, we need to eliminate the redundancies implicit in working with two different counsels.  The Local Government Commission has advised us that an appropriate time to change bond counsel for General Obligation bonds is after the completion of the bond referendum work or after the completion of a bond issuance. 

 

RECOMMENDATION

 

We recommend that the Council adopt the attached resolution authorizing us to use Sanford Holshouser, LLP, as bond counsel for the issuance of General Obligation bonds.

A RESOLUTION APPROVING BOND COUNSEL FOR THE ISSUANCE OF GENERAL OBLIGATION BONDS (2004-05-10/R-5)

 

WHEREAS, the law firm of Sanford Holshouser, LLP, has been recommended to the Council as a law firm possessing capabilities in each of the following areas:

 

(a)    North Carolina municipal law, including in particular, the Local Government Finance Act;

(b)   Municipal finance and municipal securities law;

(c)    Corporate Finance and Corporate Securities Law; and

(d)   Tax Law, including Section 103 and Sections 140 through 150 of the Internal Revenue Code of 1986, as amended;

 

NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill, North Carolina:

 

Section 1.         The law firm of Sanford Holshouser, LLP, is hereby designated to serve as bond counsel in connection with the issuance by the Town of Chapel Hill, North Carolina of the 2003 General Obligation bonds, or any series thereof, and in connection with the issuance by the Town of Chapel Hill, North Carolina of such additional issues of bonds as the Town Council shall deem appropriate.

 

Section 2.         This resolution shall take effect upon its passage.

 

Section 3.         A certified copy of this resolution shall be filed with the Local Government Commission.

 

Thi the 10^th day of May, 2004.