HomeMy WebLinkAbout1988-10-25; Municipal Water District; MinutesI MINUTES OF THE ADJOURNED AND SPECIAL BOARD MEETING OF THE BOARD
OCTOBER 25, 1988, AT 1O:OO A.M. AT 5950 EL CAMINO REAL, CARLSBAD, CALIFORNIA.
The meeting was called to order at 10:14 a.m. by President Bonas
with Directors Henley, Maerkle and Woodward present. Director Haasl was absent. Also in attendance were Legal Counsel Moser, Administrative Manager Poole, Public Information Officer Renyer and Executive Secretary Woodward. Jayne Akamine, Ed We1 Is, Bill Huck and Ann Pope also attended.
OF DIRECTORS OF COSTA REAL MUNICIPAL WATER DISTRICT, HELD ON
Pledge of Allegiance The pledge of allegiance to
the flag was given.
Unfinished Business: Consid- A graph prepared by Mr. Poole
eration of Refunding of 1984 was distributed. The net cash
Certificates of Participation savings at this time would be $516,115(without insurance)
RESOLUTION NO. 595 which would be deposited in an - improvement fund to be used
for future construction. Mr. Wells added that we are waiting for Standard and Poors' rating. Moody's rating stayed at BAA.
Mr. Wells recommended that the Board give staff authorization to enter into the purchase agreement with Stone and Youngberg on the
uninsured basis and authorize them to switch to an insured issue if it appears that it will substantially improve the benefits to
the District. A large bond insurance firm has offered a proposal
over the phone that will require very few restrictions on the
District's future operations. The net cash savings on an insured
issue would increase by approximately $75,000.
Mr. Huck explained that the restrictions required by the in-
surance firmwould be (1) theannual debt servicebe depositedon
a monthly basis to the revenue fund rather than every six months as currently shown on the documents; and (2) to the extent that
the District expects to make capital improvements from reserves, you include that amount along with O&M expenses and debt service
expenses in the total expenditures column of the rate covenant. These two restrictions are in addition to the standard require-
ments which are fairly perfunctory.
The way the rate covenant is written now there is an obligation
on the Board to levy rates and charges so that together with available reserves they are sufficient to pay debt service on the old issue and the new issue, O&M expenses and to that would be added any capital expenditures you expect to make in that year.
If the District is able to go with the insured issue, in addition
to the increased dollar savings the District would receive a AAA rating from both Standard & Poors and Moodys. I
I Ms. Pope, with the District's law firm of Jennings, Engstrand and
Henrikson, reviewed the resolution that will actually authorize the District to enter into the legal documents necessary for this
certificates of participation issuance. After discussion, in
which it was determined that the principal not exceed $14,600,000
and the minimum savings not go below $500,000, Director Maerkle
made a motion, seconded by Director Henley, to adopt Resolution
No. 595, entitled, "RESOLUTION OF THE BOARD OF DIRECTORS OF COSTA
REAL MUNICIPAL WATER DISTRICT, SAN DIEGO COUNTY, STATE OF CALIFORNIA, APPROVING AND AUTHORIZING THE EXECUTION AND DELIVERY OF A PURCHASE AGREEMENT, AN OFFICIAL STATEMENT, AN INSTALLMENT SALE AGREEMENT, A TRUST AGREEMENT, AN AGENCY AGREEMENT, AN ESCROW AGREEMENT, AND CERTAIN OTHER DOCUMENTS IN CONNECTION WITH THE ISSUANCE AND SALE OF CERTIFICATES OF PARTICIPATION; AUTHORIZING THE PRESIDENT, SECRETARY, AND GENERAL MANAGER TO TAKE SUCH
ACTIONS AS MAY BE REQUIRED IN THE ISSUANCE, SALE, AND DELIVERY OF SUCH CERTIFICATES OF PARTICIPATION TO THE PURCHASE THEREOF; AND MAKING CERTAIN OTHER FINDINGS AND DETERMINATIONS IN CONNECTION THEREWITH." Roll was called and all ayed. (Director Haasl absent. )
Consideration of Approval The consensus of the Board was
of Proposition "M" that this matter is not in the purview of the District. No
action taken. I Adjournment The meeting adjourned at 11:04.
Respectfully submitted,
I
-2- October 25, 1988