CHIPPEWA COUNTY BUILDING AUTHORITY

MEETING MINUTES

 

March 5, 2008

 

A regular meeting of the Chippewa County Building Authority was held on Wednesday, March 5, 2008 at the Chippewa County Courthouse in Sault Ste. Marie, Michigan.  The meeting was called to order at 11:00 a.m. with a quorum present.

 

MEMBERS PRESENT:              Ron Meister, Paul Coutant and Marilyn McDonald

 

MEMBERS ABSENT:                None

 

OTHERS PRESENT:                 Chuck Leonhardt and Kelly Beaune, Recorder

 

Additions / Deletions to the Agenda

Changes to the agenda were called for.

 

It was moved by Paul Coutant, seconded by Ron Meister, to approve the agenda as presented.  On a voice vote, the motion was CARRIED.

 

Public Comments

There were no public comments.

 

Correspondence and Information Items

No correspondence or information items were received.

 

Agenda Item:  Election of Officers

It was moved by Marilyn McDonald, seconded by Paul Coutant, to appoint Ron Meister as Chair of the Building Authority.  On a voice vote, the motion was CARRIED.

 

It was moved by Paul Coutant, seconded by Ron Meister, to appoint Marilyn McDonald as the Treasurer of the Building Authority, and for the Recorder of the Building Authority be the Acting Controller and/or the Administrator of Chippewa County.  On a voice vote, the motion was CARRIED.

 

It was moved by Paul Coutant, seconded by Ron Meister, to amend Marilyn McDonald’s previous position Building Authority Treasurer to Secretary/Treasurer of the Building Authority.  On a voice vote, the motion CARRIED.

 

Status of the Bonding Issues

Secretary/Treasurer Marilyn McDonald updated the Authority members of current bonding issues: 1995 Health Department; 1999 Jail and the 2000 Annex bonds.  The members received a debt service schedule for each issue and were given background information on each. The Authority was also reminded that the City of Sault Ste. Marie uses the County Building Authority to secure better bonding rates.

 

Bond Refunding

The Authority reviewed requested information from Miller Canfield and Robert W. Baird regarding a proposal to refund the 1995 and 1999 Building Authority Bonds.  The new debt will have similar principal and interest payments and have a potential net savings of $172, 051.14 in total; $83,963.16 for the 1995 Health Department Issued Bonds and $88,087.98 for the 1999 Jail Project Issued Bonds.  The net present value (the amount in today’s dollars) if the savings is $149,899, all costs from this refunding are paid from the proceeds of the new issue and are included in the amount due at closing.  The interest rate used for the refunding ranges from 2.3% to 3.55%.  If the refunding is approved, the investment broker will try to sell these bonds, if there is no market for the bonds the refunding will not take place, there is no cost to the County or the Building Authority if the refunding does not take place.  The Building Authority discussed setting a bottom line net savings stipulation. 

 

It was moved by Paul Coutant, seconded by Marilyn McDonald, to approve the Resolution Approving Building Authority Refunding Contract, with an additional item #7 being added, to indicate a stipulation of $120,000 savings must be obtained.  The motion was defeated upon further review, on a voice vote.

 

Warren Creamer with the Robert W. Baird Company was contacted by phone, to answer questions of the Building Authority regarding guarantees and bond counsel review of the documents.   Discussion followed.  Mr. Creamer will be forwarding requested information by e-mail

 

It was moved by Paul Coutant, seconded by Marilyn McDonald, to approve Resolution Authorizing the Issuance and Sale of Chippewa County Building Authority Building Authority Refunding Bonds, Series 2008, which also approves the Refunding Contract and to forward the Approving Resolution to the Chippewa County Board of Commissioners, seeking their support and approval. (See attached Resolution and Refunding Contract)   On a voice vote, the motion was CARRIED.

 

It was moved by Paul Coutant, seconded by Marilyn McDonald that the Building Authority will not proceed with the Bond refunding unless the Purchase Agreement states a net total savings of at least $120,000.00.

 

Committee per Diems

The Authority reviewed the Articles of Incorporation of the Building Authority, which includes per diem information.

 

It was moved by Paul Coutant, supported by Marilyn McDonald, to authorize payment of the County’s approved $45.00 per diem to the Board of Commissioner’s appointed Authority members.  On a voice vote, the motion was CARRIED.

 

Other

Future meetings will be scheduled as needed.

 

Committee and Chairman’s Comments

Marilyn McDonald thanked both Paul and Ron for their interest in serving on the Chippewa County Building Authority, noting that their banking back grounds are essential. 

 

Adjourn

Chairman Ron Meister declared the meeting adjourned at 12:44 p.m.

 

 

 

 

 

 

 

__________________________________                         __________________________________

Kelly J. Beaune, Recorder                                                Ron Meister, Chairman