BOARD AGENDA MEMORANDUM
Government Code ? 84308 Applies: Yes ? No ?
(If "YES" Complete Attachment A - Gov. Code ? 84308)
SUBJECT:
Title
Adopt a Resolution Authorizing the Execution and Delivery of Certain Agreements in Connection with a Direct Issue Commercial Paper Program, for an amount up to $250 million, and Authorize Certain Other Actions.
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RECOMMENDATION:
Recommendation
A. Adopt the Resolution AUTHORIZING THE EXECUTION AND DELIVERY OF CERTAIN AGREEMENTS IN CONNECTION WITH A DIRECT ISSUE COMMERCIAL PAPER PROGRAM, for an amount up to $250 million;
B. Authorize the Chief Executive Officer, District Counsel and the Clerk of the Board of Directors, and their Designees (including any acting, interim or otherwise appointed officer, as the case may be), acting singly, to negotiate, execute and deliver any and all documents and instruments and to do and cause to be done any and all acts and things necessary or proper for carrying out the transactions contemplated hereby; and
C. Approve utilizing the Commercial Paper Program to provide short-term financing for eligible Water Utility, Safe Clean Water, and Watershed Program expenditures.
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SUMMARY:
Board approval of the recommendations will enable Santa Clara Valley Water District (Valley Water) to expand its Commercial Paper (CP) program capacity to $250 million, from the current capacity of $150 million, to provide interim financing for the Water Utility, Safe Clean Water and Watershed Programs. The CP program is currently supported by a $150 million Letter of Credit (LOC) provided by MUFG Bank, Ltd. (MUFG Bank) which expires on December 10, 2024. MUFG Bank previously informed staff that it would not renew its LOC beyond the expiration date. A new $250 million LOC from Sumitomo Mitsui Banking Corporation (SMBC) will have an initial term of five (5) years with the option for extensions subject to compliance with the conditions set forth in the Resolution (Attachment 1) and the Reimbursement Ag...
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