Finance Department

Finance Authority Minutes

July 28, 2020


A meeting of the Upper Mohawk Valley Regional Water Finance Authority was held in the Water Authority Conference Room on July 28, 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)
Eric Linder (by phone)

Absent
Thomas Nelson

Others Present
Herb Cully - Calli, Calli and Cully Law Firm
Patrick Becher - MVWA Executive Director, Finance Authority Secretary
Jim Korfonta - MVWA Comptroller
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 JUNE 18, 2020 MINUTES

Mr. Gilroy requested a motion to accept the June 18, 2020 minutes; Mr. Silberlicht made the motion to accept the minutes seconded by Mr. Linder. Vote: (3) Ayes. (0) Nays. (0) Abstentions. Motion Carried.

ITEM #2 - REVIEW AND SELECTION OF UNDERWRITERS

Mr. McCarthy discussed the Request for Proposal process. He explained they were looking for a firm that had an expertise in Water Revenue Bonds in the State of New York as well as expertise in the best structure that would work in terms of the lowest possible debt service and familiarity with both water and New York State pricing and state income tax. The RFP was sent to five (5) firms as a prequalification, four (4) proposals were submitted. A Score Sheet along with an RFP Summary Page was provided and explained. The different types of bonds were also explained. After some careful consideration and the review of the score sheet, Mr. McCarthy made the recommendation to select Raymond James. After some discussion amongst the Finance Authority members a motion was made by Mr. Silberlicht to select Raymond James as recommended by Rick McCarthy as the Underwriters forthe Series 2020 Bond. The motion was seconded by Mr. Linder. Vote: (3) Ayes. (0) Nays. (0) Abstentions. Motion Carried.

ITEM #3 - SELECTION OF RATE CONSULTANT FOR OFFICIAL STATEMENT

Mr. Becher explained there is a part of the official statement that does a multi-year budget projection and a rate comparison as well as other financial analysis. After some further explanation and discussion on the history both Boards have working with Amawalk, Mr. Becher recommended to formally engage Ed Markus of Amawalk as the Rate Consultant for the Official Statement as part of the team. A motion was made by Mr. Linder to hire Ed Markus as the Rate Consultant for the Series 2020 Bond. The motion was seconded by Mr. Silberlicht. Vote: (3) Ayes. (0) Nays. (0) Abstentions. Motion Carried.

ITEM #4 - DISCUSSION OF REFINANCING OPPORTUNITIES

Mr. McCarthy explained the 2012 Bonds are callable in 2022. Interest rates are low, if we call now the MVWA could save approximately $200,000, plus the cost of issuance for a savings of a total of $400,000. The size of the number is completely a function of the interest rates at the time the refinancing is executed.

ITEM #6 - NEW BUSINESS

Rick McCarthy will let Raymond & James know they have been chosen. A kick-off meeting will be scheduled. Herb Cully will review papers prior to Mr. Becher signing. New bond issues should take 60 - 90 to get new bond issue in place.

ADJOURNMENT

There being no further business, Mr. Gilroy requested a motion to adjourn. Mr. Silberlicht made the motion seconded by Linder. Vote: (3) Ayes. (0) Nays. (0) Abstains. Motion Carried. Meeting was adjourned at 12:45.

Respectfully submitted,

Patrick J Becher, Secretary
UMV Regional Water Finance Authority