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ITEM: |
CONSENT
CALENDAR |
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13. |
CONSIDER ADOPTION OF RESOLUTION
2007-09 AUTHORIZING THE EXECUTION AND DELIVERY OF AN INSTALLMENT PURCHASE
AGREEMENT, A BOND PURCHASE AGREEMENT, AN OFFICIAL STATEMENT AND CONTINUING
DISCLOSURE CERTIFICATE AND AUTHORIZING CERTAIN RELATED MATTERS FOR ASR PHASE
1 FACILITIES; AND RESOLUTION 2007-10 APPROVING, AUTHORIZING AND DIRECTING
EXECUTION OF AN AMENDED AND RESTATED JOINT EXERCISE OF POWERS AGREEMENT
RELATING TO THE CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY |
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Meeting
Date: |
June 18, 2007 |
Budgeted: |
Yes |
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From: |
David A.
Berger, |
Program/ |
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General
Manager |
Line Item No.: |
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Prepared
By: |
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Cost Estimate: |
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General Counsel Approval: Yes |
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Committee Recommendation: The Administrative Committee reviewed this item on June 7, 2007 and recommended approval. |
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CEQA Compliance: N/A |
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SUMMARY: Over the past
several months, District staff has been evaluating various alternatives to secure
debt issuance funding of approximately $2,800,000 for completion of the Aquifer
Storage & Recovery (ASR) Phase 1 Project.
As was anticipated, staff has determined that participation in a pooled
bond financing program is the most efficient and cost effective method of
obtaining the financing. The California
Statewide Communities Development Authority (CSCDA), a joint powers authority
sponsored by the League of California Cities and the California State Association
of Counties, is one of the top pooled financing bond issuers in the State of
In order for the District to participate in the program, two resolutions must be adopted by the Board of Directors. The first is Resolution 2007-09 Authorizing the Execution and Delivery of an Installment Purchase Agreement, A Bond Purchase Agreement, an Official Statement and Continuing Disclosure Certificate and Authorizing Certain Related Matters for Phase 1 ASR Facilities. Resolution 2007-09 is attached as Exhibit 13-B. The second is Resolution 2007-10 Approving, Authorizing and Directing Execution of an Amended and Restated Joint Exercise of Powers Agreement Relating to the California Statewide Communities Development Authority. Resolution 2007-10 is attached as Exhibit 13-C. The draft of the Preliminary Official Statement and other financing related documents are available at the District’s office for review by the Board of Directors or members of the public.
RECOMMENDATION: District staff recommends that the Board adopt Resolutions 11-A and 11-B which would authorize the General Manager to enter into the required agreements to participate in a pooled bond financing program through the California Statewide Communities Development Authority.
BACKGROUND: The Fiscal Year 2005-06 budget included a user fee increase of 1.2% (from 7.125% to 8.325%) to provide funding to pay debt service on amounts borrowed to complete Phase 1 of the ASR Project, as well as other ASR costs and water supply projects. The user fee increase became effective October 14, 2005 and has already generated approximately $475,000 in additional user fee revenues for the ASR Project. The Fiscal Year 2007-08 budget includes $1,703,000 in anticipated expenditures for ASR Project Phase 1 work, with the total cost to complete Phase 1 estimated be $2,800,000. At the January 25, 2007 Board Meeting, the Board adopted Resolution 2007-01 Declaring the Official Intent to reimburse expenditures from the Proceeds of Tax Exempt Securities. This Resolution will allow the District to reimburse the General Operating Reserve for funds spent on the ASR Phase 1 work completed subsequent to the Resolution, but prior to receiving the funds from the debt issuance.
EXHIBITS
13-A Sources and Uses of Funds Schedule
13-B Draft Resolution 2007-09
13-C Draft Resolution 2007-10
U:\staff\word\boardpacket\2007\2007boardpackets\20070618\ConsentCal\13\item13.doc