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Resolution Number CVWD 02-10-15-01RESOLUTION NO. CVWD 02-10-15-01 ' A RESOLUTION OF THE CAPISTRANO VALLEY WATER DISTRICT AUTHORIZING AN OPERATING LEASE AND A PROJECT IMPLEMENTATION AGREEMENT WITH SAN JUAN BASIN AUTHORITY AND AUTHORIZING THE EXECUTION THEREOF AUTHORIZING CERTAIN ACTIONS IN CONNECTION THEREWITH WHEREAS, the Capistrano Valley Water District (the "Water District') is a county water district, organized and existing under the laws of the State of California and is a subsidiary district of the City of San Juan Capistrano (the "City"); and WHEREAS, the San Juan Basin Authority (the "Authority') and the City have approved a Property Lease by and between the City and the Authority (the 'Property Lease"), pursuant to which the City will agree to lease the Property (as defined in the Property Lease) to the Authority; and WHEREAS, the Authority and the Water District, a member of the Authority, have approved a Project Lease Agreement by and between the Water District and the Authority (the " Project Lease Agreement'), pursuant to which the Water District will agree to lease the Project (as defined in the Project Lease Agreement) from the Authority and to pay certain Lease Payments (as defined in the Project Lease Agreement) in connection with the issuance and sale of the Capistrano Valley Water ' District, Lease Revenue Bonds (Ground Water Recovery Project), Issue of 2002 (the "Bonds") by the Authority pursuant to a Trust Agreement by and among BNY Western Trust Company, as trustee (the 'Trustee"), the Water District and the Authority (the "Trust Agreement'); and WHEREAS, the proceeds of the Bonds will be used to finance the acquisition and construction of Phase I of the San Juan Basin Ground Water Recovery Project (the 'Project'); and WHEREAS, the Authority and the Water District desire to enter into that certain Agreement for Implementation of the Lease Agreement, by and between the Authority and the Water District (the "Implementation Agreement') and that certain Operating Lease Agreement by and between the Authority and the Water District (the "Operating Lease") for the purpose of establishing the terms of operation and ownership of the Project, the forms of which have been presented to the board of directors of the Authority at a meeting to be held on the same date as the date on which this Resolution has been adopted; and WHEREAS, the Water District possesses all legal authority to and desires to enter into the Implementation Agreement and the Operating Lease; NOW, THEREFORE, BE IT RESOLVED, that the Board of Directors of the I Capistrano Valley Water District does hereby 1. Provide that the foregoing recitals are true, correct, and adopted. 2. Approve the proposed forms of the Implementation and Operating Lease Agreement presented at this meeting. 3. Authorize and direct the Chairperson of the Water District (the "Chairperson") and the General Manager of the Water District or his designee (the "General Manager"), acting together or separately, for and in the name of the Water District to execute each of the Implementation Agreement and Operating Lease in the form hereby approved. 4. Authorize and Direct the Chairperson, the General Manager, the Administrative Services Director and all other members, officers and employees of the Water District to execute all other documents and take all other actions on behalf of the Water District that may be necessary or advisable to carry out the transactions contemplated by the Implementation Agreement and Operating Lease. 5. Provide that this Resolution shall take effect upon adoption. PASSED, APPROVED and ADOPTED this 15th day of October 2002. ATTEST: R. MONAHAN, CAPISTRANO VALLEY WATER DISTRICT 1"Imri&O's'� SLATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss. CITY OF SAN JUAN CAPISTRANO ) I, MARGARET R. MONAHAN, appointed Clerk of the Board of the Capistrano Valley Water District, do hereby certify that the foregoing Resolution No. CVWD 02-10-15.01 was duly adopted by the Board of Directors of the Capistrano Valley Water District at a regular meeting thereof, held the 15th day of October 2002, by the following vote: AYES: DIRECTORS: Hart, Campbell, Gelff and Chairman Bathgate NOES DIRECTORS: Swerdlin ABSENT: DIRECT RS: None MAR RET R. MONAHAN, Clerk of the Board IIIIbN'1i1YA