HomeMy WebLinkAbout1988-10-13; Municipal Water District; Resolution 594I RESOLUTION NO. 594
RESOLUTION OF THE BOARD OF DIRECTORS OF COSTA REAL MUNICIPAL WATER DISTRICT AUTHORIZING ITS MANAGER TO
TICIPATION BY STONE & YOUNGBERG; AUTHORIZING AND INSTRUCTING ITS FINANCIAL ADVISOR TO PREPARE A PRELIMINARY OFFICIAL STATEMENT AND AUTHORIZING AND INSTRUCTING ITS SPECIAL COUNSEL TO PREPARE NECESSARY
DOCUMENTS FOR CERTIFICATE OF PARTICIPATION ISSUANCE TO
SUBMIT TO RATING AGENCIES AND BOND INSURANCE COMPANIES;
AND MAKING CERTAIN OTHER FINDINGS AND DETERMINATIONS I1 CONNECTION THEREWITH.
NEGOTIATE FOR THE PURCHASE OF CERTIFICATES OF PAR-
WHEREAS, this District issued certificates of participation
("1984 Certificates") in installment payments due under an
Installment Sale Agreement dated as of May 1, 1984 ("1984 Installment Sale Agreement") in the principal amount of
$12,600,000; and
I WHEREAS, the sum of $12,000,000 represents the unpaid
balance due under the 1984 Installment Sale Agreement; and
WHEREAS, pursuant to the 1984 Installment Sale Agreement,
the District has completed and purchased the Project and is making semi-annual installment payments in amounts sufficient to pay the principal of and interest owing on the 1984 Certificates in each fiscal year; and
WHEREAS, the District has been advised by its financial advisor that based on current interest rates in the municipal bond market the amounts of such installment payments can be significantly reduced by defeasing the District's obligation to make installment payments pursuant to the 1984 Installment Sale Agreement and refunding the 1984 Certificates with the proceeds of currently issued Certificates of Participation which would bear interest rates lower than the rates borne by the 1984 Certificates; and
WHEREAS, the District has determined that it is in its best interest to accomplish the reduction in the amounts of its installment payments for the purchase of the Project through
defeasing the District's obligation to make installment payments
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pursuant to the 1984 Installment Sale Agreement and refunding th
1984 Certificates through the issuance and sale of Certificates of Participation in a principal amount which shall not exceed
$15,000,000, and which will be designated '!Certificates of Participation (Reservoir and Water Facilities 1988 Refunding Project)'' (the "1988 Certificates"); and 1
WHEREAS, the District has heretofore retained special counsel and a financial advisor to assist it in a program for determining the terms and conditions under which it would be
beneficial to the District to issue the 1988 Certificates
and for assistance in the raising of funds for such purpose; and
WHEREAS, the District has selected the underwriting firm of Stone & Youngberg ("the Underwriter(/) to purchase the 1988 Certificates if District elects to go forward with the proposed
advance refunding;
NOW, THEREFORE, IT IS HEREBY RESOLVED, DETERMINED AND ORDERED by the Board of Directors of Costa Real Municipal Water
District as follows:
Section 1. That the recitals set forth hereinabove are
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true and correct in all respects.
Section 2. That the General Manager, working with the District's counsel, special counsel, and financial advisor,
together with the District's chief finance officer, is hereby
authorized and directed to negotiate for the purchase of the 198,
Certificates with the Underwriter on the most favorable terms to
the District.
Section 3. That upon the General Manager negotiating the price that is favorable to the District and that in the opinion of the General Manager and financial advisor is the best price obtainable from the Underwriter for the purchase of the 1988 Certificates, the General Manager is hereby authorized, upon the recommendation of the District's financial advisor and special
counsel, to execute such purchase agreement as will enable the
District to sell the 1988 Certificates to the Underwriter.
Section 4. That the District's special counsel is hereby authorized and directed to prepare documents necessary for the issuance of the 1988 Certificates, and the District's financial advisor is hereby authorized and instructed to prepare a pre-
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I liminary official statement, which documents and preliminary
official statement shall be submitted to nationally recognized
bond rating agencies and, if the General Manager deems it advisable, to bond insurance companies.
ADOPTED, SIGNED AND APPROVED this 13th day of October, 1988.
COSTA REAL MUNICIPAL WATER DISTRIC'
ATTEST :
I SEAL
I (ET31:APCOST.RE)
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1 STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO ) 1 ss.
I, John P. Henley, Secretary of the Board of Directors of Costa Real Municipal Water District, DO HEREBY CERTIFY that the
foregoing resolution was duly adopted by the Board of Directors of said District at a regular meeting of said Board held on the 13th day of October, 1988, and that it was so adopted by the
following vote:
AYES: Directors Hen1 ev, Maerkle and Bonas "
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( SEAL 1
NOES : Directors None
ABSENT: Directors Haasl and Woodward
q-.);,fdA.//
of Co%a R Municipal Water
and of the rd of Directors
thereof
I (ET31:APCOST.RE)
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