Resolution 2602
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RESOLUTION NO. 2602
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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
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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.
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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.'
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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
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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.
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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
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System Acquisition Certificates of Participation.
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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,
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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
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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
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Duane Wallace, President, Board of Directors
South Tahoe Public Utility District
ATTEST:
, Assistant Clerk of Board
Public Utility District