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Montecito Water District approves up to $10 million revolving line of credit for ASADRA Reservoir retrofit
Summary
The Board authorized a revolving line of credit with American Riviera Bank for up to $10 million to support the ASADRA Reservoir Seismic Retrofit & Replacement Project, engaged bond counsel, and authorized the general manager to execute related documents.
The Montecito Water District Board on March 24 authorized the general manager to enter a revolving line of credit agreement with American Riviera Bank (ARB) to finance the ASADRA Reservoir Seismic Retrofit & Replacement Project. The authorization caps borrowing at $10,000,000 and directs staff to retain bond counsel to prepare closing documents.
Business Manager Emma Godinez presented the ARB proposal and the Board approved a three-part motion. The motion, as recorded in the minutes, authorized the general manager to "authorize a Revolving Line of Credit Agreement (\"Credit Agreement\") with American Riviera Bank (\"ARB\") in an amount not to exceed $10,000,000, in accordance with the Expression of Interest dated March 16, 2026; and engage Bond Counsel, Stradling Yocca Carlson & Rauth, to prepare the required Credit Agreement in the form of an Installment Purchase Agreement...; and authorize the General Manager to execute all related documents and take all actions necessary to complete the transaction." Director Cori Hayman moved the motion and Director Kenneth Coates seconded; the roll-call vote was unanimous in favor (Coates, Goebel, Hayman, Plough, Wicks).
The motion also directed engagement of bond counsel to provide a tax-exempt opinion and to evaluate compliance with Article XIII(D) of the California Constitution, per the staff recommendation. General Manager Nick Turner will finalize and execute the necessary documents if negotiation and legal review proceed as planned. The Board paused for a brief recess during the discussion and returned to vote unanimously.
What happens next: staff will coordinate with ARB, bond counsel Stradling Yocca Carlson & Rauth, and District counsel to finalize the Installment Purchase Agreement and related closing documents. No dollar draws or repayment terms were specified in the minutes; those operational details will be determined during transaction structuring and are not contained in the record.
