NEWBERRY COUNTY COUNCIL
MINUTES
MARCH 9, 2005
The Newberry County Council met on Wednesday, March 9, 2005, at 7:30 p.m. for a special called meeting.
Present were:
Mike Hawkins, Chairman
William D. Waldrop, Vice-Chairman
Henry B. Summer, Councilman
John David Dawkins, Councilman
Edgar Baker, Councilman
Leonard
B. Sossamon, Jr.,
Gary
T. Pope,
Susan C. Fellers, Clerk to Council
Absent:
John E. Caldwell, Councilman
Andy Morris, Councilman [due to illness]
Representing the news media were:
Newberry Observer – Cindy Pitts
WKDK – Heather Hawkins
Whitmire News – no representation
As required by law, notice of the meeting was duly advertised.
Mr. Hawkins called the meeting to order and determined a quorum to be present.
Mr. Waldrop had the invocation followed by the Pledge of Allegiance.
Mr. Summer moved to adopt the consent agenda; second by Mr. Baker. Vote was unanimous.
Mr. Hawkins requested the addition of an economic development matter (agenda item 9.1) and two contractual matters (agenda item 9.2) under Executive Session.
There being no further additions or deletions, Mr. Waldrop moved to adopt the agenda as amended; second by Mr. Dawkins. Vote was unanimous.
Mr. Summer moved for third reading; second by Mr. Baker.
Mr. Pope reported the following as to agenda items 1, 2 and 3 since November:
Through the assistance of Brent Robertson with Merchant Capital we sought an insurer to insure the credit of these bonds so they would not be general obligation bonds. We pledge the revenues of the facility and will have a mortgage on it. There will also be a debt service reserve fund that will cover a year’s worth of payments if something went bad. The insurance carrier has required certain additional covenants that would make it more comfortable doing this. There are disclosure requirements. We have to file copies of our audits with them. There are requirements about making contributions to the debt service reserve fund if it becomes deficient in any way. There are requirements that we let the insurance company and the trustee for the bond holders know if there are any adverse financial or other situations going on with the J.F. Hawkins Nursing Home. There are certain things we have to do affirmatively such as every year give them a copy of our budget, review the rates every year and review our insurance coverage.
The bond ordinance is a master ordinance and provides for the issuance of the bonds issues today and future bonds if that should become necessary.
All of these are
technical amendments or phraseology or assurances for the insurance carrier and
for the trustee. All of this has been
hammered out between bond counsel and counsel for the underwriter and the
counsel for the trustee and the
Mr. Pope recommended that Council adopt the ordinances at this time.
Mr. Hawkins asked if his understanding was that we were pledging the revenues from the operations; we are pledging the actual property located on that site, but it is not a general obligation bond on the backs of the taxpayers of the county. Mr. Pope indicated that was correct.
Mr. Pope stated there was a debt service reserve fund. If somehow the facility doesn’t make the payment, then the payment will come out of the debt service reserve fund. There is an obligation to refund that reserve fund, which would come out of general fund. The county is not obligated to make that appropriation at any one time, but if it did not do that, then it could be a term of default and at that time Council would have to deal with that issue as to how to handle it, but it is not a general obligation to the county.
Mr. Hawkins asked if the debt service was for the total amount. Mr. Pope stated it was basically one year’s debt service. As part of the bond proceeds, we are borrowing that one year debt service and actually the interest on that money (about $1,000,000) will be applied toward the debt service. The conservative estimate is that this will save $275,000 a year over what we are doing right now. It is possible it would be more than that.
Mr. Pope stated we are required to send an audit to them. The County at the time it adopts the budget reviews the rates they charge and makes sure enough money has been budgeted to come in to cover these obligations. By these documents we are required to do more than has been done in the past. We have to hire an insurance consultant to look at the insurance and be sure it is adequate to cover all the different things that might go wrong. We are required to abide by that consultant’s recommendation even though we are allowed to maintain our insurance carrier through the State Insurance Reserve Fund, which is the least expensive insurance we can get. We do have an obligation to review the insurance and be sure it is adequate at all times. If it has financial difficulties, we are obligated to hire a financial or management consultant. We have an affirmative obligation to do these things.
Mr. Waldrop asked what would generate the money in the reserve fund. Mr. Pope stated in the beginning we would borrow it. The borrowed funds would be used to make a payment if the facility did not generate enough revenue to make the loan payments. Then the County would have the obligation to find the revenue to put into that fund to replenish it so there would always be a reserve fund in place. We are obligated to look at this once a month. They have to make contributions once a month toward this, and then on certain dates if that fund is under funded, they either have to make it up or they will call the county and ask what it wants to do. All of the revenue from this facility will go into some kind of general revenue fund that the county is supposed to maintain strict oversight of how the money is being spent.
This
will reduce the financial pressure on the nursing home and
Mr. Waldrop asked if by saving this amount of money each month, we should be able to maintain the facilities. Mr. Pope felt we would.
There being no further discussion, Mr. Hawkins called for the question. Vote was unanimous.
Mr. Dawkins moved for third reading; second by Mr. Baker. Vote was unanimous.
Mr. Summer moved for third reading; second by Mr. Dawkins. Vote was unanimous.
Mr. Sossamon
stated this arose from discussions during the joint planning retreat with the
City of
Mr. Waldrop moved to adopt the resolution; second by Mr. Summer. Vote was unanimous.
Appointment of Teresa Powers to represent
economic development
Mr. Dawkins moved to appoint Teresa Powers; second by Mr. Waldrop. Vote was unanimous.
Mr. Dawkins
moved to request removal of
Mr. Hawkins
stated this was the street right behind
There being no further discussion, Mr. Hawkins called for the question. Vote was unanimous.
Mr. Waldrop moved to adopt the plan; second by Mr. Dawkins. Vote was unanimous.
Todd Griffith asked County Council to consider a match of $4,803 for the 2004 FEMA Grant and a match of $1,100 for the 2005 Forestry Grant. He also asked that Council consider reimbursement for $9,200 for prior forestry grants they matched over the years to allow them to complete work on the Maybinton Station since they only received $30,000 from the County whereas other stations have received $50,000.
Mr. Dawkins moved that if funds are available in contingency and also in the current fire budget that the $15,103 be funded; second by Mr. Baker.
Mr. Dawkins stated Consolidated was the only station that received $30,000, but in defense of Council that is the amount requested by Councilman Gilliam at that time.
Mr. Hawkins clarified the motion that the funding was not contingent upon the money being there; they would find the money somewhere.
There being no additional discussion, Mr. Hawkins called for the question. Vote was unanimous.
Mr.
Summer moved to go into Executive Session to discuss an ongoing economic
development issue, a personnel issue, a contractual matter concerning the
airport and a contractual matter concerning the land adjacent to the landfill
located off of
[EXECUTIVE SESSION 7:59 P.M. –
9:05 P.M.]
9.1
Economic Development Matter.
9.2
Contractual.
Mr. Baker moved to return to regular session; second by Mr. Summer. Vote was unanimous.
Nothing to report on the personnel matter.
Economic development is ongoing.
Council reiterated previous position on Airport.
We are waiting about the property at the landfill and still hoping to reroute trucks.
Casey Meeting Room
April 6, 2005, 7:30 p.m.
No comments.
Mr. Hawkins congratulated Mr. Sossamon on no county vehicles being parked in the parking lot at the Courthouse.
Mr. Summer moved to adjourn; second by Mr. Baker. Vote was unanimous.
There being no further business, the meeting adjourned at 9:06 p.m.
NEWBERRY COUNTY COUNCIL
________________________________________
Mike Hawkins, Chairman
_________________________________________
Susan C. Fellers, Clerk to Council