Resolution 2693-99
'-' 1 RESOLUTION NO. 2693-99
2 A Resolution of the Board of Directors of the
South Tahoe Public Utility District
3 Authorizing and Directing the Execution
of an Installment Sale Financing of Public Capital Improvements
4 with LaSalle National Bank, and Related Documents
and Amending Resolution No. 2679-98
5 Regarding Borrowing of Funds and the Issuance and
Sale of 1998 Grant Anticipation Note
6 for the Export Pipeline Replacement Project
7 RESOLVED, by the Board of Directors of the South Tahoe Public Utility District (the
8 "District"):
9 WHEREAS, the District wishes to finance various capital projects, including a
10 comprehensive water master plan, waterlines, at least three new water tanks and a major
11 renovation to another water tank, one to three water wells, a water treatment system for
12 Arrowhead Well, booster station upgrades, monitoring wells, and telemetry and lab
13 equipment (the "Project"); and
-.., 14 WHEREAS, such financing is in the public interest and for the public benefit, and
15 the District wishes to approve, authorize and direct the execution of the hereinafter defined
16 Installment Sale Agreement and certain other financing documents in connection therewith;
17 WHEREAS, the Installment Sale Payments to be paid by the District under the
18 Installment Sale Agreement will be paid to LaSalle National Bank (the "Bank") in
19 consideration of the Bank's funding of the Construction Fund under the Escrow Agreement
20 referenced below, the proceeds of which will be applied to the acquisition and construction
21 of the Project; and
22 WHEREAS, the documents below specified have been filed with the District, and
23 the members of the Board of Directors, with the aid of its staff, have reviewed said
24 documents;
25 NOW, THEREFORE, it is hereby DECLARED AND ORDERED as follows:
26 1. The below-enumerated documents are hereby approved, and the Board
\. 27 President, the Vice-President, the General Manager and the Chief Financial Officer, are
28 hereby separately authorized and directed to execute said documents, with such changes,
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Resolution No. 2693-99
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insertions and omissions as may be approved by such officials, and the Clerk of the Board
is hereby authorized and directed to attest to such official's signature:
(a) An installment sale agreement relating to the sale and purchase of the Project,
between the Bank, as seller, and the District, as purchaser (the "Installment Sale
Agreement"), so long as the stated term of the Installment Sale Agreement does not
extend beyond twenty (20) years (except in the case of default), so long as the interest rate
on the Installment Sale Payments does not exceed 5.65%, and so long as the principal
amount of the Installment Sale Agreement does not exceed $4,965,000; and
(b) An escrow agreement, by and between the District and the Bank, and, if
needed, an escrow bank, relating to the deposit into a construction fund (the "Construction
Fund") by the Bank of an amount sufficient to acquire and construct the Project.
2. Section 7 of Resolution No. 2679-98 entitled "A Resolution of the Board of
Directors ofthe South Tahoe Public Utility District Providing for the Borrowing of Funds and
the Issuance and Sale of 1998 Grant Anticipation Note for the Export Pipeline
Replacement Project," adopted July 16, 1998, is hereby amended in its entirety to read as
18 follows:
"Section 7. Other Obligations of the District. While the Note is outstanding,
the District: (i) Shall not issue any other indebtedness or other obligations secured by the
proceeds of the Grant; (ii) Shall not issue any indebtedness or other obligations superior
to the Note, except for obligations the issuance of which is consented to by the Bank; and
(iii) May issue indebtedness or other obligations on a parity with the Net Revenues of the
Sewer System or Net Revenues of the Water System, as the District shall determine so
long as the District does not impair its obligation to repay the Note."
3. The Board President, the Vice-President, the General Manager, the Chief
Financial Officer and all other appropriate officials of the District are hereby authorized and
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1 Resolution No. 2693-99
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3 directed to execute such other agreements, documents and certificates as may be
4 necessary to effect the purposes of this resolution and the financing herein authorized.
5 4. This Resolution shall take effect upon its adoption by this Board of Directors.
6 WE, THE UNDERSIGNED, do hereby certify that the above and foregoing
7 Resolution was duly and regularly adopted and passed by the Board of Directors of
8 the South Tahoe Public Utility District at a regular meeting held on the 6th of May by the
9 following vote:
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AYES:
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NOES:
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ABSENT:
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Directors Wallace, Strohm, Jones, Gochnauer, Mosbacher
None
None