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ITEM: |
ACTION
ITEM |
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18. |
CONSIDER ADOPTION OF
RESOLUTION NO. 2013-06 FOR REIMBURSEMENT OF EXPENDITURES FOR CONTRIBUTION OF
PUBLIC FUNDS FOR A.12-04-019 DESALINATION PROJECT |
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Meeting
Date: |
May 20, 2013 |
Budgeted: |
Yes |
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From: |
David J.
Stoldt General Manager |
Program/ |
Other Water Supply Projects |
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Line Item No.: |
1-8-1 |
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Prepared
By: |
David J.
Stoldt |
Cost
Estimate: |
$100,000 per year/up to 4
years |
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General Counsel Approval: N/A |
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Committee Recommendation: At its May 13, 2013 meeting, the
Administrative Committee voted 2 to 0 to recommend adoption of Resolution
2013-06.
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CEQA Compliance: N/A |
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SUMMARY: The District has made several proposals with respect to financing the Cal-Am desalination facility. The proposed Ratepayer Relief Bonds have been determined to be the best mechanism for doing so.
In order to develop and advance the proposal, the District has hired Raymond James & Associates for financial consulting and Sidley Austin as Bond Counsel. If the CPUC decision in A.12-04-019 directs Cal-Am to examine the use of the financing method subject to market conditions, then it is likely the District would add additional advisors to its financing team and incur additional costs until the financing transaction occurs.
The District has been paying the costs of developing the Ratepayer Relief Bonds proposal from budgeted funds derived by the Water Supply Charge adopted in June 2012.
Resolution 2013-06 (Exhibit 18-A) is a Resolution of the Board of Directors of the Monterey Peninsula Water Management District Declaring the Official Intent to Reimburse Expenditures from the Proceeds of Tax Exempt Securities. Adoption of the Resolution will allow amounts expended for development of the Ratepayer Relief Bonds proposal between the date of the adoption of the Resolution and actual receipt of the financing proceeds to be reimbursed from the financing proceeds when they are actually received.
RECOMMENDATION: District staff recommends Board adopt Resolution 2013-06, A Resolution of the Board of Directors of the Monterey Peninsula Water Management District Declaring the Official Intent to Reimburse Expenditures from the Proceeds of Tax Exempt Securities.
18-A Resolution 2013-06
U:\staff\Boardpacket\2013\20130520\ActionItems\18\item18.docx