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File #: 20-0937    Version: 1 Name:
Type: Time Certain Item Status: Agenda Ready
File created: 9/30/2020 In control: Board of Directors
On agenda: 10/13/2020 Final action:
Title: Receive Information and Authorize Staff to Proceed with Execution of Bank Line(s) of Credit with Aggregate Stated Amount Not to Exceed $200 Million. *(Previously Listed as Item 2.7.)
Attachments: 1. *Original Agenda Memo, 2. *Supplemental Agenda Memo, 3. *Supplemental Attachment 1: Best/Final Bank Proposals, 4. *Supplemental Attachment 2: Cert. Purchase/Reimburse Agmt, 5. *Supplemental Attachment 3: Small Banks Outreach
BOARD AGENDA MEMORANDUM


SUBJECT:
Title
Receive Information and Authorize Staff to Proceed with Execution of Bank Line(s) of Credit with Aggregate Stated Amount Not to Exceed $200 Million. *(Previously Listed as Item 2.7.)


End
RECOMMENDATION:
Recommendation
A. Receive information regarding bank line(s) of credit solicitation;
B. Authorize staff to proceed with execution of bank line(s) of credit with aggregate stated amount not to exceed $200 Million.
C. * Authorize a deposit of up to $14 million in a Certificate of Deposit Account Registry Service (CDAR) account with Bank of San Francisco, earning 0.45% per year for three-years; and
D. * Authorize staff to offer special incentives to California based small community banks to fully subscribe the $20 million syndicated community banks loan capacity.


Body
SUMMARY:
On July 28, 2020, the Santa Clara Valley Water District's (Valley Water) Board of Directors authorized staff to proceed with negotiations and execution of bank line(s) of credit for an amount up to $180 million provided by a lead bank and an additional $20 million syndicated loan reserved for small local banks/credit unions, for a total bank line(s) of credit amount not to exceed $200 million.

With the Board's authorization, staff proceeded to negotiate with the three top ranked lead banks (MUFG Union Bank, JP Morgan, and US Bank) to ensure Valley Water obtains the best pricing and terms for the line of credit. Staff emphasized the importance of the $20 million syndicated loan for small local banks/credit unions and incorporated this aspect as part of these negotiations.

Staff will provide further details regarding the selection of the lead bank, as well as the syndicated loan for small local banks/credit unions in a Supplemental Memorandum to be published on October 9, 2020. The bank line of credit agreement will also be provided in the Supplemental Memorandum for the Board's consideration and approval.


FINANCIAL IMPACT:
Funding for t...

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Notice to Public:

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