HomeMy WebLinkAbout2004-10-18 Memo
Financing Corporation
To: Board of Directors
From: Peter Holzmeister
Date: October 15, 2004
Subject: Broadband Financing- Approval of Revenue Certificate of Paticipation
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1. WHY THIS MATTER IS BEFORE THE BOARD
This matter involves adoption of a resolution approving issuance of Revenue Certificates of
Participation to finance a broadband system for the District. Only the Board can adopt a resolution.
2. HISTORY
We have been talking at length about implementing a broadband business unit. We have been
carefully analyzing the issue and following a careful process to secure the proper approvals prior to
proceeding with the project. Most recently we applied for and received LAFCo approval for activation
of a latent power. We are now in a position to deal with financing of the project.
3. NEW INFORMATION
Attached is a resolution for your consideration. This resolution is similar to the resolution you will
consider during the regular TDPUD Board meeting. This resolution and its associated documents
have the effect of approving the Finance Corporation’s portion of the Revenue Certificate of
Participation financing documents. The resolution adopts by reference key documents that implement
the Revenue COP issue. Those documents are an Installment Purchase Agreement, a Trust
Agreement, a Purchase Contract, and a Private Placement Agreement.
These documents complete the relationship between TDPUD and the Financing Corporation. As
stated in my earlier memorandum, these documents are very similar to documents adopted by the
Financing Corporation to issue our previous COPs. They are very legalistic, prepared by people
whose expertise is in issuing COPs.
4. RECOMMENDATION
I recommend that the Board adopt the resolution authorizing the execution and delivery of not to
exceed $24,000,000 Revenue Certificates of Participation, approving execution and delivery of certain
documents and authorizing certain actions in connection therewith.