HomeMy WebLinkAboutResolution 1993 - 0066RESOLUTION NO.93-66
APPROVING LETTER AGREEMENT WITH MERRILL LYNCH
AND PAINEWEBBER FOR UNDERWRITING SERVICES FOR
THE FIXED-TO-FLOATING INTEREST RATE SWAP
(1993 SWAP)
A JOINT RESOLUTION OF THE BOARDS OF DIRECTORS OF
COUNTY SANITATION DISTRICTS NOS.1,2,3,5,6,7,
11,13 AND 14 OF ORANGE COUNTY,CALIFORNIA,
APPROVING LETTER AGREEMENT WITH MERRILL LYNCH AND
PAINEWEBBER FOR UNDERWRITING SERVICES IN CONNECTION
WITH THE DISTRICTS’FIXED-TO-FLOATING INTEREST RATE
SWAP (1993 SWAP)
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WHEREAS,the County Sanitation Districts of Orange County,
California,pursuant to financial needs and requirements
described in its Collection,Treatment and Disposal Facilities
Master Plan adopted July 19,1989,have determined to issue long-
term debt obligations/securities and enter into other financial
transactions to obtain the necessary funds to complete the
development of its needed capital facilities and to manage said
funds in the Districts’best interests;and,
WHEREAS,the Districts have heretofore considered several
well qualified underwriting firms to serve as their underwriter,
and Merrill Lynch and PaineWebber,jointly,were selected as
Underwriter for the Districts’Fixed-to-Floating Interest Rate
SWAP (1993 SWAP)with the potential of saving the Districts
between $1 and $4 million,subject to final approval by the
Boards of Directors;and,
WHEREAS,the Boards of Directors have heretofore directed
the Fiscal Policy Committee and other finance team members to
proceed with planning and implementation of the Fixed-to-Floating
Interest Rate SWAP (1993 SWAP).
NOW,THEREFORE,the Boards of Directors of County Sanitation
Districts Nos.1,2,3,5,6,7,11,13 and 14 of Orange County,
California,
DO HEREBY RESOLVE,DETERMINE AND ORDER:
Section 1 That the firm of Merrill Lynch and PaineWebber,
jointly,is hereby appointed and designated as Underwriter for
the forthcoming Fixed-to-Floating Interest Rate SWAP (1993 SWAP);
and,
Section 2 That the terms and conditions of that certain
Letter Agreement from Merrill Lynch and PaineWebber,dated
May 13,1993,are hereby approved;and,
Section 3 That payment for said underwriting services,
whereby Merrill Lynch will receive an amount not to exceed 10
basis points,and will pay to PaineWebber the lesser of the
present value of five basis points or one-half of the total
spread per annum from the net spread,is hereby authorized,
subject to final approval by the Boards of Directors to proceed
with said transaction;and,
Section 4 That the General Manager is hereby authorized
and directed to execute said Letter Agreement on behalf of the
Districts.
PASSED AND ADOPTED at a regular meeting held June 9,1993.
RAG77.~6
STATE OF CALIFORNIA)
)SS.
COUNTY OF ORANGE )
I,PENNY KYLE,Assistant Secretary of the Boards of
Directors of County Sanitation Districts Nos.1,2,3,5,6,7,
11,13 and 14 of Orange County,California,do hereby certify
that the foregoing Resolution No.93-66 was passed and adopted at
a regular meeting of said Boards on the 9th day of June,1993,by
the following vote,to wit:
AYES:Fred Barrera,Bob Bell,Buck Catlin,
John Collins,John C.Cox,Jr.,Jan Debay,
Burnie Dunlap,James Evans,James Ferryman,
James Flora,Don R.Griffin,John M.
Gullixson,Barry Hammond,Evelyn Hart,Gail
Kerry,Victor Leipzig,Thomas E.Lutz,
William D.Mahoney,Eva G.Miner,Maria
Moreno,Ted Noreno,Carrey 3.Nelson,Glenn
Parker,Leslie Pontious,Charles E.Puckett,
Robert Richardson,Phil Sansone,Sal Sapien,
Jim Silva,Sheldon S.Singer,Peer A.Swan,
Charles E.Sylvia,James A.Wahner,Henry
Wedaa,Grace H.Winchell,George L.Ziaket
NOES:None
ABSTENTIONS:William G.Steiner
ABSENT:Frank Laszlo,Irv Pickier
IN WITNESS WHEREOF,I have hereunto set my hand and affixed
the official seal of County Sanitation District No.1 on behalf
of itself and Districts Nos.2,3,5,6,7,11,13 and 14 of
Orange County,California,this 9th day of June,1993.
Penny Kyle,ss ant Secretary
Boards of ec rs,County
Sanitation Districts Nos.1,2,3,
5,6,7,11,13 and 14 of
Orange County,California