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Commission Minutes
GREENWOOD METROPOLITAN DISTRICT
MINUTES OF THE
October 3, 2006
Called Meeting
The
called meeting of the Greenwood Metropolitan Commission was
held Tuesday, October 3, 2006 at 9:00 a.m., in the Board
Room of the CPW-Greenwood Metropolitan District
Administration Building, 121 West Court Avenue.
In
attendance:
Bob Haynie Richard Coleman
Gene Hancock George Martin
Michael G. Monaghan
Gayle Grogan
Henry Watts
I.
Chairman Haynie called the meeting to order.
II.
Chairman Haynie gave the statement of compliance with
the notification provision of the Freedom of Information
Act.
III.
Consideration of Bond Resolution
Manager Coleman said the
bond resolution has some blanks in it that will be filled in
once the pricing is done. The cover shows what we
anticipate the amount to be. We received verbally from
Standard and Poor’s an A+ rating. We will receive the
rating by Friday of this week. The insurance cost was about
half of what was estimated. The pricing will be done on
Wednesday, October 11th. It should be completed
after lunch so we should have a report for the Board at the
commission meeting that afternoon. The chairman or
vice-chairman will have to accept the pricing in writing.
We will need to sign some more documents tentatively
scheduled for October 24th. We will receive the
funds on October 26th. Commissioner Monaghan
asked what does the $14 million subject to change mean.
Manager Coleman said the issuance cost could change. The
interest rate and the yield will be filled in after the
price is taken. Commissioner Monaghan wanted to know how we
came up with the $14 million. Manager Coleman said the $11
million is for the Wilson Creek upgrade phase 1A
construction and phase 1B engineering cost. We have two
other projects included in the $14 million (Cokesbury and
Turner Branch Phase 1). We have not bid the other two
projects, so we are estimating their cost. Commissioner
Monaghan said that phase 1A is completely financed by bonds
rather than any of the reserve money. Manager Coleman said
that we have made payments out of the reserve and we are
going to reimburse ourselves with the bond money.
Commissioner Monaghan said that in phase 1B we will either
have to issue more bonds or pay from our reserves. Manager
Coleman said that is correct and it is anticipated in the
financial feasibility reports. The rating agencies look at
it as being financially stable. We have a stable reserve
which is an indicator that we have passed rates in
anticipation of future borrowing; opposed to waiting till we
issue the bonds. Commissioner Hancock said they can see
that our customers are stable too. They look at the
concentration of the largest customers and Metro has two
customers that are over 10% of our revenue. One of which is
Fuji. They also had some questions about Solutia. Solutia
has paid their bill every month since the filing of
bankruptcy which shows stability after the filing of
bankruptcy. Commissioner Monaghan wanted to know where the
hospital is on our list of big customers. Manager Coleman
said they are about the fifth biggest customer. The bond is
primarily for Wilson Creek phase 1A construction and phase
1B engineering. We anticipate the next revenue bond issue
for phase 1B in fiscal year 2010.
Commissioner Monaghan moved
and Commissioner Watts seconded the motion to approve the
bond resolution. The motion was approved.
IV.
Commissioner Monaghan wanted to know the progress on
the study of residential units. Manager Coleman said that
the utility advisor consultants are still working on that.
They are planning to attend the board meeting on October 11th.
We are going to need to pass a 9% rate change effective
January 1st even if we have not determined all of
the rate structure changes. We will need to have some
revenue changes by that time.
V.
Commissioner Monaghan wanted to know when is the VE
meeting for phase 1B. Manager Coleman said it is scheduled
for next week.
VI.
With no further business, the meeting was adjourned.
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