Resolution 2674-98
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RESOLUTION NO. 2674-98
2 A RESOLUTION OF THE BOARD OF DIRECTORS OF
THE SOUTH TAHOE PUBLIC UTILITY AGENCY
3 AUTHORIZING AND DIRECTING EXECUTION OF A
BANK LINE OF CREDIT FOR PUBLIC CAPITAL IMPROVEMENTS
4 FOR A TIME OF ONE YEAR, AND RELATED DOCUMENTS
5 WHEREAS, the District anticipates spending in excess of $8,000,000 on Sewer
6 System Capital Improvements over the next fiscal year; and
7 WHEREAS, the District anticipates receiving $7,150,000 in Federal funding from
8 the U.S. Environmental Protection Agency (EPA); and
9 WHEREAS, the District application and deviation request has been submitted to
10 the EPA and will take several months to be approved and funded; and
11 WHEREAS, the Board of Directors directed staff to look in to obtaining interim
12 financing for the Capital Improvements; and
13 WHEREAS, staff is reviewing several proposals to the District for a short term
\., 14 Bank Line of Credit; and
15 WHEREAS, the District reasonably anticipates that it will not issue tax-exempt
16 obligations in the face amount of more than $10,000,000 during the current calendar
17 year; and
18 NOW, THEREFORE, BE IT RESOLVED, that the Board of Directors authorizes
19 staff to accept the Bank Line of Credit proposal deemed to be in the best interest of
20 the District, considering all facts and circumstances; and
21 NOW, THEREFORE, BE IT RESOLVED, that the Bank Line of Credit amount shall
22 not exceed $5,000,000; and
23 NOW, THEREFORE, BE IT RESOLVED, that the District will make its best effort
24 to have the Bank Line of Credit in place by July 1, 1998. If the Bank Line of Credit
25 is not completed by July 1, 1998, District staff is directed to complete the Bank Line
26 of Credit as soon as possible after that date; and
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1 Resolution No. 2674-98
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3 NOW, THEREFORE, BE IT RESOLVED, that the terms other than the borrowing
4 amount may be negotiated by staff, as would be deemed by a prudent person to be
5 in the best interest of the District, taking into account all the facts and circumstances;
6 and
7 NOW, THEREFORE, BE IT RESOLVED, that the Board of Directors authorizes the
8 Board President, Vice President, General Manager, and Chief Financial Officer to
9 execute all documents to consummate the financing on behalf of the Board of
10 Directors; and
NOW, THEREFORE, BE IT RESOLVED, the District hereby designates the Bank
Line of Credit as a "qualified tax-exempt obligation" within the meaning of Section
265(b) (3) of the Internal Revenue Code of 1986, as amended.
PASSED AND ADOPTED at a duly held Regular Meeting of the Board of
Directors of the South Tahoe Public Utility District on the 7th day of May, by the
16 following vote:
17 AYES: Directors Wallace, Strohm, Gochnauer, Mosbacher.
18 NOES: None
19 ABSENT: President Jones
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FoJ? A....James R. Jones, President of the Board
South Tahoe Public Utility District