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HomeMy WebLinkAboutRESOLUTIONS - 08131996 - 96-379 • :5; •� C -71 RESOLUTION NO. 96/379 Dated: August 13, 1996 RESOLUTION OF THE BOARD OF SUPERVISORS OF THE COUNTY OF CONTRA COSTA, STATE OF CALIFORNIA, AMENDING RESOLUTION NO. 96/185 TO AUTHORIZE THE INVESTMENT OF PROCEEDS OF BONDS OF THE LAFAYETTE ELEMENTARY SCHOOL DISTRICT IN GUARANTEED INVESTMENT CONTRACTS. WHEREAS, this Board of Supervisors, at the request of the Governing Board of Lafayette Elementary School District (herein called the "District"), has heretofore duly issued $15,000,000 aggregate principal amount of the District's bonds known as the Lafayette Elementary School District General Obligation Bonds, Election of 1995, Series 1996 (the"Series 1996 Bonds") pursuant to Resolution No. 96/185, adopted by this Board of Supervisors on May 7, 1996, (the "Bond Resolution"); and WHEREAS, there is on file with the Clerk of this Board of Supervisors a resolution of the Governing Board of the District requesting this Board of Supervisors to amend its Resolution No. 96/185 to permit the Treasurer of the County to invest the proceeds of the Series 1996 Bonds in guaranteed investment contracts under certain conditions; and WHEREAS, the Government Code of the State of California provides that proceeds of bonds may be invested in securities or obligations described in the resolution providing for the issuance of the bonds; and WHEREAS, this Board of Supervisors,now deems it necessary and desirable to permit the investment of proceeds of the Series 1996 Bonds of the District by the Treasurer of the County in guaranteed investment contracts based upon the recommendations of the Director of Fiscal Services of the District; NOW,THEREFORE,BE IT RESOLVED BY THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY THAT: Section 1. All of the above recitals are true and correct. Section 2. Board of Supervisors Resolution No. 96/185 is hereby amended by the addition to Section 6 thereof of the following paragraph: "The Treasurer of the County shall invest proceeds of the Series 1996 Bonds in any investments permitted by law, and in any other investments which the Treasurer deems -to be prudent investments, including guaranteed investment contracts upon the written recommendation of the SF2-62237.2 Director of Fiscal Services of the District, provided that such investments are: (i) rated in one of the two highest long-term rating categories by Moody's Investors Service and Standard &Poor's Ratings Services at the time of such investment; or (ii) issued or guaranteed by an entity the corporate debt of which at the time of investment is rated in one of the two highest long-term rating categories by Moody's Investors Service and Standard & Poor's Ratings Services; or (iii) issued or guaranteed by an insurance company with a claims-paying rating at the time of investment in one of the two highest long-term rating categories of Moody's Investors Service and Standard&Poor's Ratings Services; provided further that any rating agency maintaining a rating on the Series 1996 Bonds shall be notified in writing by the District prior to the Treasurer's investing in a guaranteed investment contract; and provided further that any such guaranteed investment contract shall contain provisions satisfactory to any rating agency maintaining a rating on the Bonds, specifying that, in the event the long-term debt rating of the provider of the guaranteed investment contract is suspended or downgraded by either Moody's Investors Service or Standard & Poor's Ratings Services to below said rating agency's second highest long-term rating category, without regard to rating subcategories, the provider of such guaranteed investment contract shall within ten (10) days deliver to a third party collateral in the form of direct and general obligations of the United States of America, or obligations that are unconditionally guaranteed as to principal and interest by the full faith and credit of the United States of America, in the amount of not less than 104% of the principal amount of the guaranteed investment contract; and further specifying that, in the event the long-term debt rating of the provider of the guaranteed investment contract is withdrawn or downgraded by either Moody's Investors Service or Standard & Poor's Ratings_Services to below said rating agency's third highest long-term rating category, without regard to rating subcategories, such guaranteed investment contract shall terminate and the full principal amount invested thereunder, together with any interest accrued thereon, shall be paid to the District within two .(2) business days of such downgrade." Section 3. Except as otherwise provided herein, Resolution No. 96/185 shall remain in full force and effect. SF2-62237.2 2 Section 4. This resolution shall take effect from and after its adoption. PASSED AND ADOPTED this 13th day of August, 1996, by the following vote: AyES: Supervisors Rogers , Bishop, DeSaulnier, Torlakson, Smith NOES: None ABSTAIN: None ABSENT: None ofWe Board of Supervisors ATTEST: Phil Batchelor, Clerk of the Board of Supervisors and County Administrator By a. L Deputy Cler of the Board of Supirvisors and County Administrator sF2-62237.2 3