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Resolution 2602 \. \. \.." RESOLUTION NO. 2602 2 3 A RESOLUTION OF THE BOARD OF DIRECTORS OF SOUTH TAHOE PUBLIC UTILITY DISTRICT AUTHORIZING AND DIRECTING EXECUTION OF INSTALLMENT SALE FINANCING AND REFINANCING OF PUBLIC CAPITAL IMPROVEMENTS WITH SANWA GEL FOR A TERM OF TWENTY YEARS, AND RELATED DOCUMENTS 4 5 WHEREAS, the District anticipates spending in excess of 6 $15,000,000 on Water System Capital Improvements over the next 7 several fiscal years. 8 WHEREAS, the Board of Directors authorized staff to 9 proceed with the issuance of Certificates of Participation to help 10 fund the Capital Improvements on July 21, 1994.' 11 WHEREAS, Sanwa GEL has presented a proposal to the 12 District to fund the Capital Improvements at a significant savings 13 to the District. 14 WHEREAS, the District held a public workshop to discuss 15 the Sanwa GEL proposal and explored other alternatives on October 16 10, 1994. 17 WHEREAS, the District reasonably anticipates that it and 18 its subordinate entities will not issue tax-exempt obligations in 19 the face amount of more than $10,000,000 during the current 20 calendar year. 21 BE IT RESOLVED, that the Board of Directors no longer 22 desires to proceed with a COP issuance. 23 BE IT RESOLVED, that the Board of Directors accepts Sanwa 24 GEL's proposal dated September 14, 1994 and amended September 23, 25 1994. 26 BE IT RESOLVED, that the funding amount shall not exceed 27 $9,358,950 including the defeasment of the Tahoe Paradise Water 28 System Acquisition Certificates of Participation. \.., '- ~ 19 20 21 22 23 24 25 26 27 28 2 3 Resolution 2602 10/20/94 Page 2 BE IT RESOLVED, that the District will make its best 4 effort to fund the "installment sale financingll by October 31, 5 1994. If the funding is not completed by October 31, 1994, 6 District staff is directed to fund the II installment sale financingll 7 as soon as possible after that date. 8 BE IT RESOLVED, that the terms other than the borrowing 9 amount and interest rate may be negotiated by staff as would be 10 deemed by a prudent person to be in the best interest of the Jl District, taking into account all the facts and circumstances. 12 BE IT RESOLVED, that the Board of Directors authorizes 13 the Board President, Vice President, General Manager, and Finance 14 Officer to execute all documents to consummate the financing on 15 16 behalf of the Board of Directors. BE IT RESOLVED, the District hereby designates the 17 installment sale financing as a IIqualified tax-exempt obligation" 18 within the meaning of Section 265 (b) (3) of the Internal Revenue Code of 1986, as amended. PASSED AND ADOPTED by the Board of Directors of South Tahoe Public Utility District at a duly held regular meeting on the 20th day of October, 1994, by the following vote: AYES: Strohm, Mason, Wallace, Jones NOES: Mosbacher ABSENT: None ~.w~_ Duane Wallace, President, Board of Directors South Tahoe Public Utility District ATTEST: , Assistant Clerk of Board Public Utility District