At the Monday, Sept. 26, 2016 Board of Trustees meeting, the posted agenda :
FYI:
There was absolutely NOTHING in the Board Packet with any details of the above agenda item. Supervisor Savoie had asked Trustee Brian Kepes (not the current Treasurer Dan Devine) to investigate and present this item . I'm worried because 17 year current Treasurer Dan Devine, will be replaced by Mr. Kepes in November as our Treasurer. Trustee Kepes and the township municipal bond advisor, Bobby Bendzinski seemed unprepared, the trustees had nothing to review, and Mr. Bendzinski, Mr. Kepes and Supervisor Savoie suggested Fifth Third Bank to be part of the proposed "bond refinance deal"... that had no documentation. Neither Savoie nor Kepes revealed their conflict of interest in dealing with Fifth Third Bank. That is unacceptable. More to come at the next Board of Trustees meeting.
FYI:
Research that I could find: 2007 Campus Construction Debt Fund/ $ 26,000,000 in bonds
Outstanding principal as of 3/31/16 $ 22,400,000
Debt payment before 3/31/17 $ 600,000 principal
$ 974,225 interest
As for the water and sewer: 2008 Series A - WATER Phase 2 $ 4,750,000 in bonds
Outstanding principal as of 3/31/16 $ 3,900,000
Debt payment before 3/31/17 $ 200,000 principal
due May 1 and Nov. 1 fiscal yr
as semi-annual payments $ 138,200 interest
2008 Series B - SEWER $ 4,000,000 in bonds
Outstanding principal as of 3/31/17 $ 3,400,000
Debt payment before 3/31/17 $ 200,000 principal
due May 1 and Nov. 1 fiscal yr
as semi-annual payments $ 120,000 interest
What I heard at the 9/26/16 meeting:
- Want to refinance within 60-90 days if possible
- our municipal bond advisor, Mr. Bobby Bendzinski needs an"engagement" letter
- Terry Donnelly @ Dickenson Wright would write a resolution for the Board
- Fifth Third Bank would be the Underwriter
- the deal would be negotiated vs competitive bid sale
- supposedly, the refinance would provide a $2 million savings for the Campus bonds and $500,000 savings for the Water and Sewer bond refinancing. NO documents to show that.
- held in escrow.. the debt defeased ... 3rd party holding.... call date is May 1, 2018
- guess-timated costs to those "friends and family and favors" making the deal would be $40,000 to Bendzinski & Co.; and $100,000 to Fifth Third Bank; and no $$ mention to Dickenson Wright? but certain will be ; wonder..would the third party holding until May 1, 2018 also get money? ; who else? What will the ACTUAL numbers reveal?
- Savoie did not know how the payments were made. He assumed level principal payment. Not.
- documents will be provided at the next meeting for the trustees and public to review. MY comment/opinion: assume the vote will take place at the next meeting.... prediction 5-2 vote/ because of the conflict of interest issue with Fifth Third Bank.
- Mr. Kepes... trustee not treasurer at this point in time... was "given" the opportunity to "save the community money"..... by Supervisor Savoie. My comment/ opinion: The treasurer, Dan Devine, was overlooked by Savoie... deliberately to present this issue.
But then again, 2 guys (Savoie and Kepes) with a conflict of interest with the same bank/underwriter (Fifth Third) ... presenting the refinance issue ? And Savoie and Kepes got voted in for 4 years... Supervisor and new Treasurer. I'm not happy about that... my opinion.
Please listen to the PUBLIC COMMENT about the conflict of interest.... at the 9/26/16 meeting ... at this link:
//www.bloomfieldtwp.org/Services/cable/Videos/BoardOfTrusteeMeetings.asp
Please attend the Board of Trustees meetings. Next scheduled : October 10, 2016 @ 7 pm
Marcia
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