HomeMy WebLinkAboutRES 1993-44 - Board RESOLUTION NO. 93-44
OF THE
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
A RESOLUTION OF THE BOARD OF DIRECTORS
AUTHORIZING A PLEDGE OF THE NET REVENUES
OF THE DISTRICT'S ELECTRIC SYSTEM
IN CONNECTION WITH THE ISSUANCE OF CERTIFICATES OF PARTICIPATION
(1993 REFUNDING PROJECT)
AND CERTAIN OTHER ACTIONS IN CONNECTION THEREWITH
WHEREAS, pursuant to Resolution No. 93-40, adopted by the Board of Directors
of the Truckee Donner Public Utility District (the "District") on September 7, 1993, the
District authorized the issuance and delivery of not to exceed Three Million Five Hundred
Thousand Dollars ($3,500,000.00) principal amount of Certificates of Participation (1993
Refunding Project) (the "Certificates") which Certificates will be issued and delivered to
refinance the District's prior issuance of $3,050,000.00 principal amount of Certificates
of Participation (Headquarters Complex Project), the proceeds of which were used to
finance the construction of the District Headquarters Complex; and
WHEREAS, pursuant to Resolution No. 93-40, the District authorized the
execution of a Lease Agreement, a Trust Agreement, a Site and Facilities Lease, an
Escrow Agreement, a Contract of Purchase, and approved the Preliminary Official
Statement, all of which will be used in connection with the issuance and delivery of the
Certificates; and
WHEREAS, pursuant to Resolution No. 93-40, the District authorized the pledge
of the net revenues of the District's water system and electric system, as may be
necessary or desirable to provide for the financing to be achieved through the issuance
and delivery of the Certificates; and
WHEREAS, the District has determined that in order to obtain municipal bond
insurance in connection with the Certificates, and the lower rate of interest that flows
from municipal bond insurance, it will be necessary to pledge the net revenues of the
District's electric system, but not the net revenues of the District's water system; and
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WHEREAS, since the District Headquarters Complex is used by both the District
water and electric systems, but since the District's obligation to make lease payments
(which the Certificates evidence) will be secured solely by a pledge of the net revenues
of the electric system, an issue could arise concerning whether the District's water and
electric utilities are operated by the District in a manner to be self-sustaining, as required
by California Public Utilities Code Section 16467, and whether the District's charge for
electric service exceeds the cost reasonably borne by the District in providing such
electric service, as required by various constitutional and statutory provisions; and
WHEREAS, it has been the District's policy to operate its water and electric
systems in such a manner that each is self-sustaining, and so that each bears its
proportionate share of the expense of lease payments on the District Headquarters
Complex.
NOW, THEREFORE the Board of Directors of the Truckee Donner Public Utility
District does hereby resolve as follows:
Section 1. The Board hereby authorizes any and all changes as the
General Manager may approve to the forms of the Certificates, Lease Agreement, Site
and Facilities Lease, Trust Agreement and other documents previously approved by the
Board pursuant to Resolution No. 93-40 as may be necessary or desirable to provide
for financing which is secured solely by a pledge of the net revenues of the District's
electric system.
Section 2. The District hereby adopts a policy that despite any pledge
of the net revenues of the District's electric system with respect to the Certificates, the
District shall continue to allocate between its water and electric systems each system's
proportionate share of the lease payments on the Headquarters Complex, and that in
the event of any default in the lease payments to be made by the District to the Truckee
Donner Public Utility District Financing Corporation in connection with the Certificates,
the District shall continue its policy of charging the water and electric systems their
proportionate share of the lease payments on the District Headquarters Complex.
Section 3. The District Board of Directors confirms that the policy
described above has been the policy of the District since the issuance and delivery of
the Certificates of Participation (Headquarters Complex Project) in 1986.
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Section 4. The District's policy, as stated herein, shall continue in effect
until all of the Certificates have been retired, and thereafter until rescinded by resolution
of the Board of Directors.
PASSED AND ADOPTED this 1st day of November, 1993, by the following vote
of the Board:
AYES: Jones, Maass , Sutton and Aguera.
NOES: None.
ABSENT: Corbett.
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
BY
os o h q. Agu President
ATTEST:
Clerk
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