HomeMy WebLinkAboutResolution 95-032RESOLUTION NO.95-32
APPROVING A SHORT TERM LOAN TO THE
GARDEN GROVE SANITARY DISTRICT
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 A
SHORT TERM LOAN TO THE GARDEN GROVE SANITARY
DISTRICT BY THE PURCHASE OF REFUNDING BONDS ISSUED
BY THE GARDEN GROVE SANITARY DISTRICT
WHEREAS,the County Sanitation Districts Nos.1,2,3,5,6,7,11,13 and 14 (the
‘Districts”)are public agencies and political subdivisions of the State of California formed and
existing under the provisions of the County Sanitation District and California Health and Safety
Code Section 4700 et seq.;and,
WHEREAS,the Districts are authorized by law to invest available monies in bonds,notes
and other obligations of other public agencies of the State of California;and,
WHEREAS,the Garden Grove Sanitary District (UGGSD~)has previously issued its
$5,075,000 1993-94 Taxable Notes (the “Prior Notes”),which will mature on May 1,1995 in the
aggregate amount of principal and interest equal to $5,363,640.63;and,
WHEREAS,the proceeds of the Prior Notes were invested by GGSD through the County
Treasurer-Tax Collector in the Orange County Investment Pool Fund,which on December 6,
1994 filed a petition in bankruptcy;and,
WHEREAS,it is possible that GGSD will not receive a return of its deposits from the
County which it had invested in the Orange County Investment Pool Fund by the maturity date
of the Prior Notes;and,
WHEREAS,GGSD is authorized pursuant to the provisions of the refunding law set forth in
Article 10 and Article 11 of Chapter 3 of Division 2 of Title 5 of the California Government Code
(commencing with Section 53570 et seq.)to issue refunding bonds to repay “revenue bonds”
previously issued,including the Prior Notes,and such Refunding Bonds are lawful investments
for the Districts;and,
WHEREAS,the Districts have been requested and are prepared to purchase such
Refunding Bonds on the terms set forth herein (the “Refunding Bonds”).
NOW,THEREFORE,BE IT RESOLVED BY THE BOARDS OF DIRECTORS OF ÔOUNTY
SANITATION DISTRICTS NOS.1,2,3,5,6,7,11,13 AND 14 OF ORANGE COUNTY,
CALIFORNIA,AS FOLLOWS:
Section 1 The Districts hereby authorize the investment of available monies of the
Districts in an amount up to $5,363,640.63 by the purchase of Refunding Bonds of GGSD on
substantially the terms and conditions set forth in Exhibit A,attached hereto and incorporated
herein by reference.The Districts’purchase of such Bonds shall be subject to the satisfaction
of the conditions precedent set forth in said Exhibit A.
Section 2 The terms and conditions of the Refunding Bonds shall provide for their
maturity and redemption by July 31,1995.
Section 3 The General Manager of the Districts is authorized to execute all necessary
agreements and documents as approved by Districts’General Counsel and Bond Counsel for
GGSD at such time and in such manner,including by means of the execution of a purchase
agreement,provided such action is consistent with the terms hereof.
Section 4 This Resolution shall take effect immediately.
PASSED AND ADOPTED at a special meeting of each Board held April 12,1995.
APPROVED AS TO FORM AND LEGALITY:COUNTY SANITATION DISTRICT NO.I
GENERAL COUNSEL OF ORANGE COUNTY,CALIFORNIA
~~
/THOMAS L.OODRUFF
ATTEST:COUNTY SANITATION DISTRICT NO.2
BOARD SECRETARY OF ORANGE COUNTY,CALIFORNIA
P~KY~
•2~
WHEREAS,the Districts have been requested and are prepared to purchase such
Refunding Bonds on the terms set forth herein (the “Refunding Bonds”).
NOW,THEREFORE,BE IT RESOLVED BY THE BOARDS OF DIRECTORS OF COUNTY
SANITATION DISTRICTS NOS.112,3,5,6,7,11,13 AND 14 OF ORANGE COUNTY,
CALIFORNIA,AS FOLLOWS:
Section 1 The Districts hereby authorize the investment of available monies of the
Districts in an amount up to $5,363,640.63 by the purchase of Refunding Bonds of GGSD on
substantially the terms and conditions set forth in Exhibit A,attached hereto and incorporated
herein by reference.The Districts’purchase of such Bonds shall be subject to the satisfaction
of the conditions precedent set forth in said Exhibit A.
Section 2 The terms and conditions of the Refunding Bonds shall provide for their
maturity and redemption by July 31,1995.
Section 3 The General Manager of the Districts is authorized to execute all necessary
agreements and documents as approved by Districts’General Counsel and Bond Counsel for
GGSD at such time and in such manner,including by means of the execution of a purchase
agreement,provided such action is consistent with the terms hereof.
Section 4 This Resolution shall take effect immediately.
PASSED AND ADOPTED at a special meeting of each Board held April 12,1995.
APPROVED AS TO FORM AND LEGALITY:COUNTY SANITATION DISTRICT NO.I
GE ERAL COUNSEL OF ORANGE COUNTY,CALIFORNIA
/th~
ATTEST:COUNTY SANITATION DISTRICT NO.2
BOARD SECRETARY OF ORANGE COUNTY,CALIFORNIA
COUNTY SANITATION DISTRICT NO.3
OF ORANGE COUNTY,CALIFORNIA
COUNTY SANITATION DISTRICT NO.5
OF ORANGE COUNTY,CALIFORNIA
COUNTY SANITATION DISTRICT NO.6
OF ORANGE COUNTY,CALIFORNIA
COUNTY SANITATION DISTRICT NO.7
OF ORANGE COUNTY,CALIFORNIA
COUNTY SANITATION DISTRICT NO.11
OF ORANGE COUNTY,CALIFORNIA
COUNTY SANITATION DISTRICT NO.13
OF ORANGE COUNTY,CALIFORNIA
COUNTY SANITATION DISTRICT NO.14
OF ORANGE COUNTY,CALIFORNIA
-3-
COUNTY SANITATION DISTRICT NO.3
OF ORANGE COUNTY,CALIFORNIA
COUNTY SANITATION DISTRICT NO.5
OF ORANGE COUNTY,CALIFORNIA
COUNTY SANITATION DISTRICT NO.6
OF ORANGE COUNTY,CALIFORNIA
COUNTY SANITATION DISTRICT NO.7
OF ORANGE COUNTY,CALIFORNIA
COUNTY SANITATION DISTRICT NO.11
OF ORANGE COUNTY,CALIFORNIA
COUNTY SANITATION DISTRICT NO.13
OF ORANGE COUNTY,CALIFORNIA
COUNTY SANITATION DISTRICT NO.14
OF ORANGE COUNTY,CALIFORNIA
-3-
COUNTY SANITATION DISTRICT NO.3
OF ORANGE COUNTY,CALIFORNIA
COUNTY SANITATION DISTRICT NO.5
OF ORANGE COUNTY,CALIFORNIA
COUNTY SANITATION DISTRICT NO.6
OF ORANGE COUNTY,CALIFORNIA
C NTY SANITATION DISTRICT NO.7
OF ORANGE COUNTY,CALIFORNIA
COUNTY SANITATION DISTRICT NO.11
OF ORANGE COUNTY,CALIFORNIA
COUNTY SANITATION DISTRICT NO.13
OF ORANGE COUNTY,CALIFORNIA
COUNTY SANITATION DISTRICT NO.14
OF ORANGE COUNTY,CALIFORNIA
-3-
COUNTY SANITATION DISTRICT NO.3
OF ORANGE COUNTY,CALIFORNIA
COUNTY SANITATION DISTRICT NO.5
OF ORANGE COUNTY,CALIFORNIA
COUNTY SANITATION DISTRICT NO.6
OF ORANGE COUNTY,CALIFORNIA
COUNTY SANITATION DISTRICT NO.7
OF ORANGE COUNTY,CALIFORNIA
~-~L ~
COUNTY SANITATION DISTRICT NO.11
OF ORANGE COUNTY,CALIFORNIA
COUNTY SANITATION DISTRICT NO.13
OF ORANGE COUNTY,CALIFORNIA
COUNTY SANITATION DISTRICT NO.14
OF ORANGE COUNTY,CALIFORNIA
-3-
COUNTY SANITATION DISTRICT NO.3
OF ORANGE COUNTY,CALIFORNIA
COUNTY SANITATION DISTRICT NO.5
OF ORANGE COUNTY,CALIFORNIA
COUNTY SANITATION DISTRICT NO.6
OF ORANGE COUNTY,CALIFORNIA
COUNTY SANITATION DISTRICT NO.7
OF ORANGE COUNTY,CALIFORNIA
COUNTY SANITATION DISTRICT NO.11
OF ORANGE COUNTY,CALIFORNIA
COUNTY SANITATION DISTRICT NO.13
OF ORANGE COUNTY,CALIFORNIA
COUNTY SANITATION DISTRICT NO.14
OF ORANGE COUNTY,CALIFORNIA
-3-
COUNTY SANITATION DISTRICT NO.3
OF ORANGE COUNTY,CALIFORNIA
COUNTY SANITATION DISTRICT NO.5
OF ORANGE COUNTY,CALIFORNIA
COUNTY SANITATION DISTRICT NO.6
OF ORANGE COUNTY,CALIFORNIA
COUNTY SANITATION DISTRICT NO.7
OF ORANGE COUNTY,CALIFORNIA
COUNTY SANITATION DISTRICT NO.11
OF ORANGE COUNTY,CALIFORNIA
COUNTY SANITATION DISTRICT NO.13
ORANGE COUNTY,CALIFORNIA
--
COUNTY SANITATION DISTRICT NO.14
OF ORANGE COUNTY,CALIFORNIA
-3-
EXHIBIT A
Part 1
Summary of Terms and Conditions of Refunding Obligations:
Amount and $5,363,640.63
Dated Date:May 1,1995
2.Due Date:(a)In whole on July 31,1995,or (b)earlier in whole or in part,upon
GGSD’s receipt of repayment monies from the County of Orange or
refinancing proceeds from the sale of additional refunding obligations.
3.Interest Rate:Payable on the 1St day of each month commencing June 1,1995.
Determined monthly at a rate equal to the published rate of return of the
State’s Local Agency Investment Fund (“LAIF”)computed for actual days
elapsed.Rate for a partial month shall be based on the most recent rate
for which information is available.
4.Covenants:(A)GGSD to exercise its best efforts to refinance any shortfall between
first substantial payout from the Orange County Investment Pool
bankruptcy proceeding and settlement agreement,and principal amount
(UShortfallfl)as soon as possible upon receipt of first substantial County
payout.
(B)GGSD to apply all payments from the Orange County Investment Pool
bankruptcy proceeding and settlement agreement in respect of GGSD’s
deposits in County’s Investment Pool Fund(s)to repayment of the
Refunding Bonds until paid in full,with interest.
(C)GGSD to maintain service rates at a level sufficient to amortize the
anticipated shortfall of $1,300,000 between the proceeds of the bankruptcy
settlement and the amount of the Refunding Bonds purchased by the
Districts on a level debt service basis for a given term and the actual
interest rate,after payment of all normal operating expenses of GGSD;
and,
(D)GGSD to incur no other indebtedness,other than short term
obligations entered into in the ordinary course of business,while Refunding
Bonds remain outstanding,without prior written consent of Districts.
5.Prepayment:(A)Optional:At any time,in whole or in part,upon 48 hours notice,at the
option of GGSD,with accrued interest to prepayment date,without
premium.
(B)Mandatory:At any time,in whole or in part,without prior notice,upon
receipt of GGSD payout of Orange County Investment Pool settlement
proceeds.
Exhibit A-I
Part 2
Conditions Precedent to Sanitation Districts’Obligation to Purthase Refunding Bonds of GGSD:
1.Districts receipt of GGSD Documentation of Refunding Bonds and rate setting in form and
substance satisfactory to Districts’General Manager and General Counsel.
2.Receipt of Evidence of Bank of America National Trust and Savings Association,or City,or
other commitment to refinance the Shortfall in a form and substance satisfactory to
Districts’General Manager and General Counsel.
3.Receipt of legal opinions of GGSD’s general counsel or bond counsel as to due
authorization and enforceability ot Refunding bonds in form and substance satisfactory to
Districts’General or Bond Counsel.
95-32
Exhibit A-2
STATE OF CALIFORN)
)SS.
COUNTY OF ORANGE
I,PENNY KYLE,Secretary of the Boards of Directors of County Sanitation Districts
Nos.1,2,3,6,7,11,13 and 14 of Orange County,California,do hereby certify that the
foregoing Resolution No.95-32 was passed and adopted at a special meeting of said
Boards on the 12th day of April,1995,by the following vote,to wit:
AYES:George Brown,John Collins,Barry Denes,Shirley Dettloff,Burnie
Dunlap,Norman Z.Eckenrode,James H.Flora,Don R.Griffin,Barry
Hammond,Victor Leipzig,Wally Linn,Mark A.Murphy,Pat
McGuigan,Glenn Parker,Margie L.Rice,Thomas R.Saltarelli,Sal A.
Sapien,Arlene Schafer,Sheldon S.Singer,Roger R.Stanton,Willam
G.Steiner,Peer A.Swan,Charles E.Sylvia,Bob Zemel
NOES:None
ABSENT:Cecilia Age,John C.Cox,Jr.,Jan Debay,James M.Ferryman,John
M.Gullixson,Julie Sa,Daniel T.Welch
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.2,3,6,7,1 1,13 and
14 of Orange County,California,this 1 2th day of April,1 995.
Penny Kyle,~e/~rét~f/‘
Boards of Dir~tor~,fCounty Sanitation Districts
Nos.1,2,3,5,6,7 and 11 of Orange County,
California
Fl 2.032
STATE OF CALIFORNIA)
)SS.
COUNTY OF ORANGE
I,PENNY KYLE,Secretary of the Boards of Directors of County Sanitation Districts
Nos.1,2,3,6,7,11,13 and 14 of Orange County,California,do hereby certify that the
foregoing Resolution No.9 5-32 was passed and adopted at a special meeting of said
Boards on the 12th day of April,1995,by the following vote,to wit:
AYES:George Brown,John Collins,Barry Denes,Shirley Dettloff,Burnie
Dunlap,Norman Z.Eckenrode,James H.Flora,Don R.Griffin,Barry
Hammond,Victor Leipzig,Wally Linn,Mark A.Murphy,Pat
McGuigan,Glenn Parker,Margie L.Rice,Thomas R.Saltarelli,Sal A.
Sapien,Arlene Schafer,Sheldon S.Singer,Roger R.Stanton,Willam
G.Steiner,Peer A.Swan,Charles E.Sylvia,Bob Zemel
NOES:None
ABSENT:Cecilia Age,John C.Cox,Jr.,Jan Debay,James M.Ferryman,John
M.Gullixson,Julie Sa,Daniel T.Welch
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.2,3,6,7,11,1 3 and
14 of Orange County,California,this 1 2th day of April,1 995.
Penn~yl~e~
Boards of Directors,ounty Sanitation Districts
Nos.1,2,3,6,7,11,l3and l4of Orange
County,California
Fl 2.032