MFA Meeting Minutes February 12, 2020

MICHIGAN FINANCE AUTHORITY BOARD MEETING MINUTES

February 12, 2020

A meeting of the Michigan Finance Authority ("MFA" or the “Authority”) was held on February 12, 2020, at 10:00 a.m. in the Richard H. Austin Building, 1st Floor, State Treasurers’ Board Room, 430 West Allegan Street, Lansing, Michigan.

MEMBERS PRESENT:

Rachael Eubanks, Chair

Timothy Hoffman

Travis Jones

Murray D. Wikol

MEMBERS ABSENT:

Bill Beekman

Luke Forrest

Anna Heaton

CALL TO ORDER/ROLL CALL

Rachael Eubanks, Chair, called the meeting of the Michigan Finance Authority to order at 10:00 a.m. with Rachael Eubanks, Timothy Hoffman, Travis Jones and Murray D. Wikol in attendance.  Ms. Eubanks noted that a quorum was present. 

PUBLIC COMMENT

Rachael Eubanks asked if there were any members of the audience who would like to speak.  There were none. 

APPROVAL OF MINUTES

Rachael Eubanks asked if there were any corrections, comments, or additions to the minutes as presented dated January 14, 2020.  A motion was made by Travis Jones and supported by Murray D. Wikol to approve the minutes.  A voice vote was taken and the motion passed unanimously.

RESOLUTION 2020-3

RESOLUTION TO AUTHORIZE THE ISSUANCE OF THE MICHIGAN FINANCE AUTHORITY PUBLIC SCHOOL ACADEMY LIMITED OBLIGATION REVENUE AND REFUNDING BONDS (Landmark Academy PROJECT), SERIES 2020

Patrick Price, Bureau of State and Authority Finance, discussed the financing and use of proceeds in the amount not to exceed $14 million and indicated proceeds will be used to refund the Academy’s Series 2010 Bonds, fund a portion of the debt service reserve fund (if necessary), finance repairs and improvements to the facilities, and pay costs of issuance. Mr. Price noted the refunding is expected to provide aggregate net present value savings of approximately $2.2 million and is anticipated to return approximately $65,000 of the original $1.0 million Authority funded debt service reserve fund.

Travis Gostinger, Landmark Academy, further discussed how the use of the proceeds will help alleviate debt pressure and provide capital improvements including parking lot and roof repairs to continue to grow enrollment at the Academy.

James Crowley, Miller Canfield, presented and discussed the resolution and indicated it was in the proper form for the board’s consideration.

Mr. Wikol inquired if there were other repairs in addition to the parking lot and roof repairs.  Mr. Gostinger responded additional projects include HVAC upgrades and carpet. Mr. Wikol inquired as to whether the Academy considered PACE financing for the energy projects. Mr. Gostinger responded the Academy had not for these projects. Mr. Wikol recommended the Academy explore the PACE Program for its future projects.

William Pettit, Attorney General’s Office, commented that the resolution was in substantial final form and ready for consideration.

Rachael Eubanks asked if there were any questions, comments, or additions to the resolution.  Hearing none, she then requested a motion.  Murray D. Wikol made a motion to approve the resolution supported by Timothy Hoffman.  A roll call vote was taken and the following members voted affirmatively:  Rachael Eubanks, Timothy Hoffman, Travis Jones, and Murray D. Wikol.

RESOLUTION 2020-4

RESOLUTION TO AUTHORIZE THE ISSUANCE OF THE MICHIGAN FINANCE AUTHORITY PUBLIC SCHOOL ACADEMY LIMITED OBLIGATION REFUNDING BONDS (DR. JOSEPH F. POLLACK ACADEMIC CENTER OF EXCELLENCE PROJECT), SERIES 2020

Graham Davidson, Bureau of State and Authority Finance, discussed the financing and use of proceeds in the amount not to exceed $8 million and indicated proceeds will be used to refund the Academy’s Series 2010 Bonds, fund a portion of the debt service reserve fund (if necessary), and to pay costs of issuance. Mr. Davidson noted the refunding is expected to provide aggregate net present value savings of approximately $2.1 million and is anticipated to return approximately $160,000 of the original $751,600 Authority funded debt service reserve fund.

Jeffery Hill, Dr. Joseph F. Pollack Academic Center of Excellence, further discussed the academy indicating the financing would help decrease their interest expense and allow the Academy to better afford faculty salaries and make other building improvements.

James Crowley, Miller Canfield, presented and discussed the resolution and indicated it was in the proper form for the board’s approval.

William Pettit, Attorney General’s Office, commented that the resolution was in substantial final form and ready for the board’s consideration. 

Rachael Eubanks asked if there were any questions, comments, or additions to the resolution.  Hearing none, she then requested a motion.  Timothy Hoffman made a motion to approve the resolution supported by Travis Jones.  A roll call vote was taken and the following members voted affirmatively:  Rachael Eubanks, Timothy Hoffman, Travis Jones, and Murray D. Wikol. 

RESOLUTION 2020-5

SUPPLEMENTAL RESOLUTION AUTHORIZING THE ISSUANCE OF LOCAL GOVERNMENT LOAN PROGRAM REVENUE BONDS, APPROVING DOCUMENTS, BOND PURCHASE AGREEMENT, PLACEMENT AGREEMENT, PRIVATE PURCHASE AGREEMENT AND AUTHORIZING DISCLOSURE DOCUMENTS AND THE PURCHASE OF MUNICIPAL OBLIGATIONS

David Boyne, Bureau of State and Authority Finance, discussed the financing and use of proceeds in the amount not to exceed $100 million and indicated proceeds will be used for the acquisition of real property, water and sewer improvements, energy conservation improvements, equipment purchases, and other local government and school district needs. Mr. Boyne noted a project for the School District of the City of Flint is underway and included on Exhibit B to the resolution.

Ms. Eubanks inquired if this resolution was routine every year and Mr. Boyne responded yes.

Craig Hammond, Dickinson Wright PLLC, presented and discussed the resolution and indicated it was in the proper form for the board’s consideration.

William Pettit, Attorney General’s Office, commented that the resolution is in the usual form and ready for the board’s consideration. 

Rachael Eubanks asked if there were any questions, comments, or additions to the resolution.  Hearing none, she then requested a motion.  Travis Jones made a motion to approve the resolution supported by Murray D. Wikol.  A roll call vote was taken and the following members voted affirmatively:  Rachael Eubanks, Timothy Hoffman, Travis Jones, and Murray D. Wikol. 

ADMINISTRATIVE MATTERS

Comprehensive Annual Financial Report

Jean Young, CPA, Plante Moran, presented the fiscal year 2019 MFA CAFR. Ms. Young indicated it was a clean audit with no findings to report and thanked Karen Doyle and her team. Mr. Wikol inquired as to the procedures Plante Moran used to test control systems. Ms. Young responded their testing procedures included the testing of controls and no issues were noted.

Next Meeting

The next meeting date is scheduled for April 8, 2020, at 10:00 a.m. 

ADJOURNMENT

Murray D. Wikol made a motion for adjournment supported by Timothy Hoffman.  The meeting was adjourned at 10:35 a.m.