Special Called Meeting Minutes April 13, 2017

For your consideration, please review the minutes from the Special Called Meeting on April 13, 2017:

Special Called Meeting Minutes – April 13, 2017 with Attachments

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Brunswick-Glynn County Joint Water and Sewer Commission

1703 Gloucester Street, Brunswick, GA 31520

Thursday, April 13, 2017 at 2:00 PM 

COMMISSION MINUTES

SPECIAL CALLED MEETING

 PRESENT:                             

Donald M. Elliott, Chairman

Clifford Adams, Commissioner

Michael Browning, Commissioner

Cornell L. Harvey, Commissioner

Steve Copeland, Commissioner

Dave H. Ford, Commissioner

 ALSO PRESENT:                 

Jimmy Junkin, Executive Director

Charlie Dorminy, Legal Counsel HBS

Thomas A. Boland, Sr., Deputy Director

John D. Donaghy, Director of Administration & Finance

Todd Kline, Senior Engineer

Pam Crosby, Director of Procurement                                           

ABSENT:                               

Robert Bowen, Commissioner

Chairman Elliott called the meeting to order at 2:08 PM.

APPROVAL

  1. Increase to Line of Credit from $1.5 Million to $5 Million to Temporarily Fund SPLOST Improvements – J. Donaghy

John Donaghy presented the background information regarding the current line of credit for BGJWSC through BB&T.  The JWSC was previously approved by the Commission to enter into a line of credit with BB&T Bank for $1.5 Million to provide a cash flow financing for future infrastructure construction projects when necessary.  He then added that with the $15.0 Million of SPLOST projects coming up, the current $1.5 Million line of credit will not provide enough cash flow to rapidly do the projects which must be done upfront, prior to the SPLOST money becoming available.  Staff has requested that BB&T increase the line of credit to $5.0 Million to facilitate large upfront costs.  BB&T has agreed to the requested line of credit increase to $5.0 Million in order to help the cash flow for the required immediate SPLOST projects.  Any money used from the line of credit will then be repaid from the SPLOST funding when it becomes available. Staff recommended that the JWSC increase its line of credit with BB&T for the cash flow funding of infrastructure projects from $1.5 Million to $5.0 Million.

Commissioner Ford asked what the cost would be to JWSC to borrow the money.  John replied that the cost would be the Libor Rate plus 1.95% on the outstanding balance. As the money gradually comes in from the SPLOST funding, the money would be applied to the loan balance, and this would be a cycle throughout these SPLOST funded projects.  Any interest costs would not be paid out of the ratepayers pockets, but would come out of money allocated to infrastructure projects.  It was clarified that this is not a $5.0 Million loan, but is only a line of credit of which money can be borrowed against.  The $5.0 Million figure was arrived at as a “worst case” scenario for required project cash flow.  It will take about 3 years for the $15 Million to be received through the SPLOST funding.  This line of credit would help to ensure that the JWSC does not run short in cash flow to complete these infrastructure projects.  It is anticipated to only use any of the line of credit that is absolutely necessary.

Commissioner Browning made a motion seconded by Commissioner Adams that the JWSC increase its line of credit with BB&T for the cash flow funding of infrastructure projects form $1.5 Million to $5.0 Million.  Motion approved 6-0-1 (Commissioner Bowen was absent).

Chairman Elliott requested another motion to excuse Commissioner Bowen from the meeting.  Commissioner Adams made a motion seconded by Commissioner Harvey to excuse Commissioner Bowen from the meeting.  Motion approved 6-0-1 (Commissioner Bowen was absent).

 EXECUTIVE SESSION

No Executive Session.

Chairman Elliott adjourned the open meeting at 2:14 pm.