R 4318 RESOLUTION NO. 4318
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF ARROYO GRANDE APPROVING AN AMENDMENT
TO THE WATER SUPPLY CONTRACT WITH THE SAN
LUIS OBISPO COUNTY FLOOD CONTROL AND WATER
CONSERVATION DISTRICT
WHEREAS, the City Council of the City of Arroyo Grande ( "the City Council ") executed
and delivered a form of Contract between the San Luis Obispo County Flood Control
and Water Conservation District ( "the District ") and the City of Arroyo Grande ( "the
Agency "), effective September 19, 2000 (the "Existing Contract "), respecting the water
provided through the District's Lopez Dam facility, including its appurtenances
(collectively, referred to as "the Facility "); and
WHEREAS, the Agency originally entered into a contract for a water supply with the
District on March 28, 1966 ( "the Prior Supply Contract "), which contract was first
amended and restated in the form of the Existing Contract; and
WHEREAS, the Agency has heretofore purchased water from the Facility for its water
enterprise, pursuant to the terms of the Existing Contract; and
WHEREAS, circumstances in the financial markets will now permit the refinancing of
the Facility on terms beneficial to the ratepayers and taxpayers of the Agency; and
WHEREAS, in order to implement the refinancing, it is necessary to amend the Existing
Contract in certain respects; and
WHEREAS, there has been presented to the City Council a form of Amendment No. 2
to the Existing Contract (the "Amended Contract ") which will authorize the foregoing
refinancing; and
WHEREAS, there has been presented to the City Council a form of Continuing
Disclosure Agreement (the "Continuing Disclosure Agreement ") with respect to said
refinancing; and
WHEREAS, the Agency now wishes to insure the availability of water from the Facility
on the most favorable possible terms and, to that end, wishes to approve the terms of
the Amended Contract and to authorize its execution;
NOW, THEREFORE, the City Council does hereby resolve and determine as follows:
1. The foregoing recitals are true and correct.
2. The terms and provisions of the Amended Contract, as presented to and
reviewed at this meeting of the City Council, are hereby approved, and the Mayor of the
RESOLUTION NO. 4318
PAGE 2
City Council is hereby authorized and directed to execute the Contract in the name of
and on behalf of the Agency, in substantially the form presented to and approved at this
meeting of the City Council. —
3. In connection with the refinancing of the Facility, the Agency understands and
agrees that delivery of revenue bonds ( "the Bonds ") by the SLO County Financing
Authority intended to effect the refinancing will be conditioned both upon (a) the delivery
of the fully executed Amended Contract and the fully executed amended existing water
supply contracts of the other participating agencies in the Facility and (b) a showing that
the refinancing will result in savings to the Agency in the amount of not less than 5% of
present value of the Agency's pro rata share of Installment Debt Service (as defined in
the Existing Contract).
4. The Agency understands and agrees that it is and remains obligated, whether
or not the aforesaid refinancing takes place, to provide certain annual information
regarding its finances and operations to the municipal marketplace. In connection with
the refinancing, the terms and provisions of the Continuing Disclosure Agreement, as
presetend to and reviewed at this meeting of the City Council, are hereby approved, and
the Authorized Officer is hereby authorized and directed to execute and deliver the
Continuing Disclosure Agreement in the name and on behalf of the Agency, in
substantially the form presented to and approved at this meeting of the City Council.
5. This resolution shall take effect immediately upon its adoption.
On motion by Council Member Fellows, seconded by Council Member Ray, and by the
following roll call vote, to wit:
AYES: Council Members Fellows, Ray, Costello, Guthrie, and Mayor Ferrara
NOES: None
ABSENT: None
The foregoing Resolution was passed and adopted this 9 day of November, 2010.
RESOLUTION NO. /3
PAGE 3
TONY F A, MAYOR
ATTES�
KELLY WETMq , CITY CLERK
APPROVED AS TO CONTENT:
STEVEN ADAMS, CITY MANAGER
APPROVED AS TO FORM:
�� .,�`
TI
tTHYJ, . CITY ATTORNEY
OFFICIAL CERTIFICATION
I, KELLY WETMORE, City Clerk of the City of Arroyo Grande, County of San Luis
Obispo, State of California, do hereby certify under penalty of perjury, that the attached
Resolution No. 4318 is a true, full, and correct copy of said Resolution passed and
adopted at a Regular meeting of the City Council of the City of Arroyo Grande on the 9th
day of November 2010.
WITNESS my hand and the Seal of the City of Arroyo Grande affixed this 10 day of
November 2010.
KELLY W T RE, CITY CLERK