August 20, 2002
The Alexander County Board of Commissioners held a Special Called Meeting on Tuesday, August 20, 2002 in the Commissioners Room of the Alexander County Courthouse, Taylorsville, North Carolina. A quorum was present.
CALL TO ORDER
Chairman Odom called the meeting to order at 7:00 PM.
NCLGC FINANCING FOR ALEXANDER COUNTY SCHOOLS PROJECTS
Jennifer Herman, Budget Officer, stated that she had received a revised proposal from Wachovia Bank, N.A. on Friday, August 16, 2002. Ms. Herman explained that Wachovia Bank had mistakenly quoted their interest rate too low in the proposal sent on August 8, 2002. The new proposal rate for 15 years is 4.05% instead of 3.47% which was reported last week. Ms. Herman also noted that the 4.05% rate was only valid on August 16, 2002 and was not guaranteed. Ms. Herman stated that Wachovia Bank staff had informed her that they would be willing to commit to a rate, not necessarily 4.05%, once the debt applications were sent to LGC and the item was approved for the agenda for the October LGC Meeting.
Ms. Herman discussed BB&T and Wachovia Banks fees that would be associated with the loan closing. BB&T quoted a fee total of $19,250 for legal expenses, preparation of documentation, and providing the project fund. Wachovia Bank quoted a fee total of $7,000 for legal fees which was much lower that BB&T because the county would be responsible for all financing documentation. Wachovia Bank also quoted a $25 fee for each wire transaction for withdrawals from the escrow account or for whenever the Board of Education wanted to draw on the loan proceeds.
Ms. Herman informed the Board that the Finance Committee, consisting of Commissioners Robertson and Watts and Ms. Herman, met on Monday, August 29, 2002 and made a recommendation to accept the proposal from Wachovia Bank, N.A. to finance $3,850,000 for 15 years at an estimate interest rate of 4.05%. Ms. Herman again noted that the final interest rate would be guaranteed once the LGC reviewed the application and determined it complete.
Ms. Herman presented the resolution to accept Wachovia Bank, N.A. as the lending institution for the project and approve the financing terms. Ms. Herman stated that along with the application, other items would also have to be sent to the LGC including copies of the minutes from tonight and August 13, 2002, a draft financing agreement from Wachovia Bank and an opinion letter from the County Attorney. Ms. Herman also noted that the County Attorneys opinion letter could be a draft and explained that a final letter would be need after the application was formally approved by the LGC. All information must be sent to the LGC by September 3, 2002.
Ms. Herman also mentioned that she had spoken with Janice Burke from the LGC and had asked about what action needed to be taken by the county since Wachovia Banks rate was not locked in. Ms. Burke suggested that the county move forward with the application using the higher interest rate quoted by BB&T which was 4.57%. Ms. Burke stated that if the LGC would approve the application with the higher interest rate, the county would then be in a more favorable position with the lower rate quoted by Wachovia Bank.
There being no further discussion, Commissioner Harbinson made a motion to accept the proposal made by Wachovia Bank to borrow $3,850,000 for 15 years at an estimated rate of 4.05% to be determined once the LGC reviewed the application. Commissioner Hammer seconded the motion. The Board voted unanimously in favor of the motion.
CLOSED SESSION N.C.G.S. 143-318.11(a)(5 & 6) CONTRACTUAL/PERSONNEL
Commissioner Harbinson made a motion to enter into Closed Session at 7:10 PM to discuss contractual matters and personnel issues pursuant to N.C.G.S. 143-318.11(a)(5 & 6). Commissioner Watts seconded the motion. The Board voted unanimously in favor of the motion.
There being no further business, Commissioner Watts made a motion to adjourn at 8:30 PM. Commissioner Hammer seconded the motion. The Board voted unanimously in favor of the motion.
David S. Odom, Chairman Jamie C. Millsaps, Clerk to the Board