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File #: 2015-1227   
Type: Resolution Status: Passed
File created: 7/29/2015 In control: Board of Directors - Regular Board Meeting
On agenda: 9/24/2015 Final action: 10/22/2015
Title: A. ADOPTING a resolution: 1. authorizing the issuance of refunding bonds by negotiated sale to refund the 2004 General Revenue Refunding Bonds (the "2004 GRRBs") in one or more transactions through June 30, 2016, consistent with the Debt Policy; 2. approving the forms of the supplemental trust agreement, preliminary official statement and such other documents as required and all as subject to modification as set forth in the Resolution; 3. authorizing taking all action necessary to achieve the foregoing, including, without limitation, the further development and execution of bond documentation associated with the issuance of the 2015 General Revenue Refunding Bonds (the "2015 GRRBs"), and approves related documents on file with the Board Secretary; and 4. prohibiting the subsequent issuance of General Revenue Bonds or Parity Debt under the General Revenue Trust Agreement except for refunding bonds. B. APPOINTING the underwriter team selected for the 2015 GRRBs transacti...
Sponsors: Finance, Budget and Audit Committee
Indexes: Debt, Debt Service - Enterprise (Project), Locking, Policy, Request For Proposal, Resolution, Security
Attachments: 1. Attachment A - Authorizing Resolution, 2. Attachment B - Summary of Underwriter Selection, 3. Attachment C - Form of 7th Supplemental Trust Agreement(draft)
Meeting_Body
REGULAR BOARD MEETING
OCTOBER 22, 2015

Subject/Action
SUBJECT: GENERAL REVENUE BONDS AND UNDERWRITER POOL

ACTION: AUTHORIZE REFUNDING OF BONDS AND APPOINT BOND UNDERWRITERS

Heading
RECOMMENDATION

Title
A. ADOPTING a resolution:

1. authorizing the issuance of refunding bonds by negotiated sale to refund the 2004 General Revenue Refunding Bonds (the "2004 GRRBs") in one or more transactions through June 30, 2016, consistent with the Debt Policy;

2. approving the forms of the supplemental trust agreement, preliminary official statement and such other documents as required and all as subject to modification as set forth in the Resolution;

3. authorizing taking all action necessary to achieve the foregoing, including, without limitation, the further development and execution of bond documentation associated with the issuance of the 2015 General Revenue Refunding Bonds (the "2015 GRRBs"), and approves related documents on file with the Board Secretary; and

4. prohibiting the subsequent issuance of General Revenue Bonds or Parity Debt under the General Revenue Trust Agreement except for refunding bonds.

B. APPOINTING the underwriter team selected for the 2015 GRRBs transaction(s) as shown in Attachment B.

C. ESTABLISHING an underwriter pool, as shown in Attachment B, that will be used to select underwriters for all future negotiated debt issues through June 30, 2019.

(REQUIRES SEPARATE SIMPLE MAJORITY VOTE OF THE BOARD)

(CARRIED OVER FROM SEPTEMBER BOARD CYCLE)

Issue
ISSUE

Currently low interest rates provide an opportunity to lock in fixed interest rates to refund our $86,175,000 outstanding 2004 GRRBs, which were originally issued as weekly auction rate securities ("ARS") in 2004, in combination with an interest rate swap to produce a synthetic fixed rate of 3.501%. During the financial crisis in 2008, the ARS market failed and it continues to fail, causing investors to be unable to sell their bond...

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