HomeMy WebLinkAboutRES 2002-10 - Board ' UCKEE r
Public Utility District
Resolution No. 2002- 10
APPROVING AGREEMENT TO FINANCE THE CONSTRUCTION
OF A NEW WATER SUPPLY IN THE NORTH EAST PORTION OF
THE DISTRICT
WHEREAS, the Board of Directors of the Truckee Donner Public Utility District
has determined that a true and very real need exists for the construction of a new
well, pump house, pumping equipment and transmission line described in the
Municipal Project Lease and Option Agreement No. 1550 presented at this
meeting; and
WHEREAS, the Board of Directors will be taking the necessary steps under
applicable law, including any legal bidding requirements, to arrange for the
construction of such Project; and
WHEREAS, the Board hereby directs its legal counsel to review the agreement
and negotiate appropriate modifications to said agreement so as to assure
compliance with state law and local statutory law, prior to execution of the
agreement by those persons so authorized by the District for such purposes;
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors as follows:
1. The Board finds that the terms of said agreement are in the best interests
of the District for the construction of such Project and the Board
designates and confirms the Board President and the District Clerk to
execute and deliver, and to witness (or attest) respectively, the agreement
and any related documents necessary for the consummation of the
transactions contemplated by the agreement.
2. That the construction of the project, under the terms and conditions
provided for in the agreement is necessary, convenient, in the furtherance
of and will at all times be used in connection with the District's
governmental and proprietary purposes and functions (except to the
extent that subleasing of the Project is permitted under the terms of the
Agreement) and are in the best interests of the District and no portion of
the project will be used directly or indirectly in any trade or business
carried on by any person other than a governmental unit of the State on a
basis different from the general public.
3. The lessee covenants that it will perform all acts within its power which are
or may be necessary to insure the maintenance of its legal status as being
a duly organized and existing entity under the laws of the State, which
status is the basis for the interest portion of the Rental Payments coming
due under the Agreement to at all times remain exempt from federal
income taxation under the laws and regulations of the United States of
America as presently enacted and construed or as hereafter amended.
4. It is the intent of the District to be reimbursed from the proceeds of the
Agreement approved herein for prior expenditures in the event that the
District elects to disburse moneys from its own reserves for construction of
the Project. Such declaration of official intent to be reimbursed is issued
pursuant to Section 1.103-18 of the Federal Income Tax Regulations.
5. The Board authorizes the General Manager to sign draw requests and
acceptance certificates for the purposes of having Municipal Services
Group make the necessary project payments from the escrow account.
PASSED AND ADOPTED by the Board of Directors at a meeting duly called and
held within the District on the seventeenth day of April, 2002 by the following roll
call vote:
AYES: Aguera, Maass and Van Gundy
NOES: Sutton
ABSENT: Hemig
TRUPKEE DO NER PUBLIC UTILITY DISTRICT
Nelson Van Gundy, Pr ident
ATTEST:
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Peter L. Holzmeister, District Clerk