Brunswick County Board of Commissioners ACTION AGENDA ITEM December 17, 2018

Action Item # VIII. - 1.

The Initial resolution is to move forward with the County plans to finance improvements to the water and sewer system, specifically including Northwest 12 mgd Water Plant Expansion ($38.2 million), Northwest Water Plant Reverse Osmosis Treatment ($99.6 million), 54" LCFWSA Parallel Raw Water Main ($39.1 million) and Northeast Brunswick Regional WWTP 2.5 mgd Expansion (39.1 million) for a total estimated cost of $216 million.

The engagement of a bond counsel for the county is needed to issue debt.  Parker Poe has served as the County's Bond Counsel for many years and is highly regarded throughout the State.  Attached is Parker Poe's proposal of a fee of $60,000 if the county places the debt for the construction projects without the WIFIA loan and an additional $75,000 if the county moves forward with the WIFIA loan. 

In order to issue the bonds for the construction projects, the county must provide the Local Government Commission with an independent analysis of the county's financial ability to incur the debt.  Raftelis Financial Consultants, Inc. staff members are very knowledgeable of the county as they have prepared various studies leading to the county's prior successful debt issues.  In addition, with some wholesale contracts soon to expire, assistance will be provided for a comprehensive review and examination of all cost components of wholesale water rates in order to develop a recommendation for future wholesale rates and contractual provisions, and a review and update of retail and industrial water rates. Attached is their proposal with a not-to-exceed fee of $80,737 for the rate analysis and preparation of a 5 year financial forecast with an opinion letter in accordance with the requirements of the LGC.

If the County issues revenue bonds, an underwriter is required to market the debt.  The County has worked with Ryan Mayor with Robert W. Baird for several years on various debt issues and found his services satisfactory and very beneficial to the county.  Attached is Baird's proposal that outlines their proposed services and underwriting fees/spread will not exceed $3.75/$1,000 par amount of the issue plus a placement agent fee for the WIFIA program of $25,000.

Budget amendment and the associated capital project ordinance is appropriate $56,607 for the water rate study and reduce the transfer to the reserve and appropriate the remainder of the contract in the project financing for the financial forecast.