Finance Authority Minutes
June 18, 2020
A meeting of the Upper Mohawk Valley Regional Water Finance Authority was held in the Water Authority Conference Room on June 18, 2020. The meeting was called to order at 12:08 PM. A quorum was established with the following persons present:
Upper Mohawk Valley Regional Water Finance Authority
Vincent Gilroy, Chairman
Joseph Silberlicht, Treasurer (by phone)
Thomas Nelson
Absent
Eric Linder
Others Present
Herb Cully - Calli, Calli and Cully Law Firm
Patrick Becher - MVWA Executive Director, Finance Authority Secretary
Jim Korfonta - MVWA Comptroller
Richard Goodney - MVWA Director of Engineering
Rick McCarthy - Capital Markets Advisors, LLC (by phone)
The meeting was called to order by Mr. Gilroy at 12:08 PM.
ITEM #1 - APPROVAL OF OCTOBER 13, 2017 MINUTES
Mr. Gilroy requested a motion to accept the October 13, 2017 minutes; Mr. Nelson made the motion
to accept the minutes seconded by Mr. Silberlicht. But Mr. Silberlicht noted the minutes contained an
error: they show that Mr. Nelson both moved and seconded the motion to adjourn. Mr. Becher
indicated the mistake would be corrected. The vote was then held to accept the minutes with the
condition they be corrected Vote: (3) Ayes. (0) Nays. (0) Abstentions. Motion Carried.
ITEM #2 - REVIEW OF FUNDING REQUEST LETTER
Mr. Becher explained the process by which the MVWA board communicates the need for borrowing to
the Water Finance Authority. He then gave an overview of the two largest projects to be funded by the
bond proceeds. The total amount requested for the 2020 Bonds Series is $15.2 million. Mr. Becher
further explained why the timing of the borrowing has been advanced as a result of the COVID-19
pandemic and the massive borrowing conducted by the federal government as a response to the
economic shutdown. The original timetable was to commence the bonding process in the late summer
of 2020 with a closing date in the late fall.
ITEM #3 - REVIEW OF PROPOSED TIMETABLE AND PROCESS
Mr. McCarthy agreed that the bond market will change dramatically in the near future, and the sooner
we can complete the borrowing the better the chances of obtaining good rates. He estimates the
process to be conducted within a 16-week timetable with a projected closing date in early October. Mr.
Nelson asked if there would be an opportunity to refinance some existing debt at lower interest rates.
Mr. McCarthy explained that he will review the outstanding debt with the underwriters against the
interest rates in the market as the closing date approaches and take advantage of refinancing
opportunities if possible.
ITEM #4 - DISCUSSION OF UNDERWRITER SERVICES
Mr. Becher explained the firm of Jeffries (formerly First Albany Corporation) has underwritten the past
several bond series, but their lead person on our bonds, Mr. Ned Flynn, passed away suddenly nearly
two years ago. After some discussion, it was agreed that we would issue an RFP for underwriter
services. Mr. McCarthy described the process of collecting proposals and that it shouldn't require more
than two weeks to accomplish. Mr. Nelson asked how many firms, and which ones, would be invited to
propose. It was decided that no more than five firms would be solicited and the list of those firms
would be provided to the Finance Authority members as the RFP is issued. Once the responses are
received, another meeting would be scheduled to review them and award the service to the winner.
Mr. McCarthy included a draft letter in the agenda materials describing the Authority and the bond
issue overall that would accompany the RFP solicitation letters.
A motion was made by Mr. Nelson to issue an RFP for underwriter services to a maximum of five
underwriting companies. The motion was seconded by Mr. Silberlicht. Vote: (3) Ayes. (0) Nays,
(O) Abstentions. Motion Carried.
ITEM #5 - DISCUSSION OF ENVIRONMENTAL COUNSEL FOR SEQR
Mr. Becher explained that New York State Environmental Conservation Law requires that even the act
of borrowing through the issuance of water revenue bonds have an environmental review. The review
process for the act borrowing normally results in the issuance of a negative declaration, indicating
there are no environmental consequences from the issuance of bonds. For many years, the
environmental counsel services have been conducted by Ms. Wendy Marsh of the Hancock Estabrook
law firm. Mr. Cully stated that Ms. Marsh is a very capable environmental attorney. The authority
members decided there was no need to delay the bonding process for a fresh RFP for environmental
counsel.
A motion was made by Mr. Nelson to continue the engagement with Hancock Estabrook for
environmental counsel services for this bond series. The motion was seconded by Mr. Silberlicht.
Vote: (3) Ayes. (O) Nays. (O) Abstentions. Motion Carried.
ITEM #6 - DISCUSSION OF ENGINEERING REPORT
Mr. Becher explained that the Finance Authority had done an RFP for the last bond series because the
firm of O'Brien & Gere had been doing this for nearly a dozen years. During the last bond issue, the RFP
was awarded to the engineering firm of Barton & Loguidice. This firm has done the engineering report
since then for general purposes, but this would be only their second engineering report done in
conjunction with bonding. The members agreed it was not necessary to change engineering firms at
this time, and Mr. Cully concluded no action by the Authority board was needed.
ITEM #7 - OLD BUSINESS
Mr. Becher explained that he and Jim Korfonta have been working with Mr. McCarthy evaluating the
Debt Service Reserve accounts and have concluded they are currently overfunded above the amounts
now required by approximately one million dollars. This occurs over time as bonds are paid down and
the total outstanding principal decreases. We are working with bond counsel for an authorization to
use the excess funds to make a debt payment next March, which helped to offset the most recent rate
increase by several percentage points.
There being no further business, Mr. Gilroy requested a motion to adjourn. Mr. Nelson made the
motion seconded by Silberlicht. Vote: (3) Ayes. (0) Nays. (O) Abstains. Motion Carried. Meeting was
adjourned at 1:15.
Respectfully submitted,
Patrick J Becher, Secretary
UMV Regional Water Finance Authority