HomeMy WebLinkAbout1992-07-09 - Resolution No. 92-18 •
�D RESOLUTION NO. 92-18
LUTION OF THE F DIRECT
APR 2 2 2009 RESOOF YORBA LINDA WA BOARD
ISTRICT ORS
SCINDING MINUTE ORDER DATED DECEMBER 8, 1977, .
APPROVING AN.AMENDED AND RESTATED SUBLEASE WITH
MUNICIPAL WATER DISTRICT OF ORANGE COUNTY RELATING TO
THE ALLEN-McCOLLOCH PIPELINE AND AUTHORIZING USE OF
INFORMATION IN AN OFFICIAL STATEMENT
WHEREAS, the Yorba Linda Water District(the "District") and other participating water districts
and cities (the "Participants") entered into an Agreement dated January 13, 1978
entitled"Agreement for Construction,Operation and Maintenance of Pipeline and to
Enter into Subleases Concerning the Diemer Filtration Plant/Santiago Aqueduct
Intertie" and certain amendments thereto and associated agreements hereinafter
collectively referred to as the "Diemer Agreements" pursuant to which the
Participants, the Municipal Water District of Orange County("MWDOC") and the
Municipal Water District of Orange County Water Facilities Corporation (the
"Corporation") caused to be constructed and currently operate and maintain the
Allen-McColloch Pipeline (then known as the "Diemer Intertie"), hereinafter
referred to as the "AMP"or the "Project"; and
WHEREAS, the Corporation was formed by a group of public-spirited citizens for the purpose
of constructing public improvements for the benefit of the Participants, and upon
the completion thereof, to lease those improvements to MWDOC and to provide
water capacity to the District and the other Participants and
WHEREAS, MWDOC and the Corporation entered into that certain Municipal Water District of
Orange County Water Facilities Corporation Master Lease dated as of March 1,
1979 for the construction of the AMP; and
WHEREAS, MWDOC and the Corporation also entered into that certain Indenture of Mortgage
and Deed of Trust dated as of March 1, 1979 to provide for the issuance of the
$79,400,000 Leasehold.Mortgage Bonds, Issue of 1979 (the "Prior Bonds"), to
finance the costs of construction of the AMP; and
WHEREAS, concurrently therewith,the District and the other Participants each entered into those
certain Diemer Intertie Subleases, each dated as of March 1, 1979 (the "Original
Sublease"), pursuant to which the Participants leased capacity in the AMP from
MWDOC; and
WHEREAS, the Corporation,MWDOC, and other Participants have entered into an agreement
dated as of June 7, 1989 entitled "Fifth Amendment to Agreement for Construction,
Operation and Maintenance of Pipeline And To Enter Into Sublease Intertie (AMP
Flow Augmentation Project)" (the "Fifth Amendment"), whereby the Participants
agreed to reallocate capacities in the AMP Flow Augmentation Project constructed
in 1989; and
WHEREAS, the Corporation, MWDOC, the District and the other Participants now desire to
refinance the original construction costs of the AMP by defeasing and refunding the
Prior Bonds by the issuance of Refunding Certificates of Participation (the
"Refunding Certificates of Participation")pursuant to that certain Trust Agreement
dated as of July 15, 1992 between the Corporation, the District and the trustee bank
appointed by said Trust Agreement; and
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WHEREAS, in connection with the sale of the Refunding Certificates of Participation, a form of
Preliminary Official Statement relating thereto has been prepared and has been
presented at this meeting,which includes information relating to the District; and
WHEREAS, concurrently herewith, the Corporation and MWDOC have entered into that certain
Amended and Restated Allen-McColloch Pipeline Master Lease dated as of July 15,
1992 (the "Amended Master Lease"), to provide for the lease of the AMP by the
Corporation to MWDOC and the payment by MWDOC of the Base Rental
Payments (as defined in the Amended Master Lease) sufficient in timing and
amount to pay the principal and interest components in respect of the Refunding
Certificates of Participation; and
WHEREAS, pursuant to the Amended Master Lease, MWDOC will lease the Project from the
Corporation and will sublease and provide capacity in the Project to the District
pursuant to the Amended and Restated Sublease dated as of July 15, 1992
("Amended Sublease"), presented at this meeting, and to the other Participants
pursuant to subleases substantially in the form of the Amended Sublease to be
entered into by each Participant in return for Base Rent payments to be made by
each Participant in accordance with the provisions thereof; and
WHEREAS, the Amended Sublease shall wholly amend and supersede the Original sublease
between the District and MWDOC,and from and after the Commencement Date(as
defined in the Amended Sublease) the capacity rights of the District in the AMP
shall be governed solely by the Diemer Agreements and the Fifth Amendment,as
supplemented or modified from time to time, and the payment obligations of the
District as to the AMP and the Refunding Certificates of Participation shall be as
provided in the Amended Sublease;
WHEREAS, all acts, conditions and things required by law to exist, to have happened and to
have been performed precedent to and in connection with the execution and entering
into of the Amended Sublease do exist,have happened and have been performed in
regular and due time, form and manner as required by law, and the District is duly
authorized upon adoption of this Resolution by the Board of Directors to execute
and enter into the Amended Sublease;
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Yorba Linda Water
District to order and determine as follows:
SECTION 1. The recitals hereof are true and correct, and are incorporated
herein by reference for all purposes.
SECTION 2. The proposed form of the Amended Sublease referred to in the
recitals hereof presented at this meeting is hereby approved. The President is
hereby authorized and directed, for and in the name of the District, to execute the
Amended Sublease with MWDOC, and the Secretary is authorized and directed to
attest to said Amended Sublease. Said Amended Sublease shall be executed in
substantially the form hereby approved, but with such additions to said Amended -
Sublease and changes therein as are approved by the President of the District,or his
designee, such approval to be conclusively evidenced by the execution and delivery
thereof.
SECTION 3. The proposed text of that section pertaining to the District of the
Preliminary Official Statement relating to the Refunding Certificates of
Participation,presented at this meeting,is hereby approved and the District hereby
authorizes and ratifies the use of said information regarding the District in the
Preliminary and final Official Statements relating to the Refunding Certificates of
Participation. The District hereby authorizes and directs the General Manager and
staff of the District to provide updated information regarding the District to
MWDOC and its designated consultants and representatives for the underwriting
period required by applicable law and,thereafter,upon request of MWDOC.
SECTION 4. The officers of the District, including but not limited to the
President and Secretary of the District and the General Manager and the Treasurer
of the District, are hereby authorized and directed,jointly and severally, to do any
and all things and to execute and deliver any and all documents and certificates
(including,but not limited to,a Certificate with regard to the final Official Statement
relating to the Certificates of Participation,which certificate shall be signed by the
President of the Board of Directors, or his designee, on behalf of the District)
which are necessary or advisable in order to consummate the issuance,
Participation, and otherwise to effectuate the purposes of this Resolution. Such
actions previously taken by such officers in connection with the issuance of the
Refunding Certificates of Participation, and otherwise, with respect to the matters
referred to herein,are hereby ratified,confirmed and accepted by the District.
SECTION 5. This Resolution shall take effect immediately upon its adoption.
SECTION 6. The December 8, 1977, Minute Order approving the Diemer
Sublease Agreement is hereby rescinded.
PASSED AND ADOPTED this 9th day of July, 1992,by the following called vote:
AYES: 4 - Paul Armstrong, Sterling Fox, M. Roy Knauft, Jr. , Carl Scanlin
NOES: 0
ABSENT: 0
ABSTAIN: 1 - Arthur Korn
Paul R.Armstrong,President
Yorba Linda Water District
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illiam . 'obertson, ecre ary,
Yorba Linda Water District