HomeMy WebLinkAboutMINUTES - 02141984 - X.19 .._..-_........ ....
THE BOARD OF SUPERVISORS
CONTRA COSTA COUNTY, CALIFORNIA
'Adopted this Order on February 14 , 1984
by the following vote:
AYES: Supervisors Powers, Fanden, Schroder, McPeak, Torlakson
NOES: None
ABSENT: None
SUBJECT: State legislation providing for increase in Fees
for the service and execution of civil processes .
Supervisor McPeak having advised the Board that she
had received a letter dated February 6 , 1984 , from Rodger L. Davis,
Contra Costa County Marshal , requesting that th.e Board support
and coordinate with C .S .A.C . for State legislation providing
for increases in fees for the service and execution of civil
processes ; and
Supervisor McPeak having recommended that the
Board refer the request from Rodger L. Davis, Contra Costa
County Marshal, to the County Administrators office to
the attention of Gary Brown;
Board members having discussed the matter, IT IS
ORDERED that the recommendation of Supervisor McPeak is
APPROVED.
thereby certify that this Is a true andcorrectcopyot
an action taken and entered on the minutes of the
Board of Supervisors on the date shown..
ATTESTED:
J.A. OLSSO°J, C;DUNTY CLERK
and ex officio Clerk of the Board
ey
Deputy
247
Orig. Dept.: Clerk of the Board
cc: County Administrator
Contra Costa County
Marshal
Supervisor McPeak
CERTIFICATE OF THE COUNTY CLERK-RECORDER
I, JAMES R. OLSSON, County Clerk-Recorder of the
County of Contra Costa, hereby certify that the foregoing is
a full, true and correct copy of Resolution No. 84-98, duly
adopted at the meeting of the Board of Supervisors of the
County of Contra Costa duly and regularly held in Martinez,
California, on February 14, 1964, of which meeting all of the
members of said Board had due notice.
I further certify that I have carefully compared
the foregoing copy with the original minutes of said meeting
on file and of record in my office; that said copy is a full,
true and correct copy of the original resolution adopted at
said meeting and entered in said minutes; and that said
resolution has not been amended, modified, rescinded or
_ revoked in any manner since the date of its adoption, and the
same is now in full force and effect.
IN WITNESS WHEREOF, I have executed this
certificate and affixed the seal of the County of Contra
Costa hereto this 16th day of February, 1984.
JAMES R. OLSSON,
County Clerk-Recorder
[SEAL]
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00.024a
i
i
y .
1 1
RESOLUTION OF THE BOARD OF SUPERVISORS OF
THE COUNTY OF CONTRA COSTA, CALIFORNIA,
PROVIDING FOR THE ISSUANCE AND SALE OF
1983-1984 TAX AND REVENUE ANTICIPATION NOTES,
SERIES B, IN THE AMOUNT OF $37, 000, 000
RESOLUTION NO. 84/ 98
WHEREAS, funds are needed by the County of Contra
Costa (the "County" ) for the purposes authorized by Section
53852 of the Government Code of the State of California; and
WHEREAS, the County may borrow for said purposes,
such indebtedness to be represented by a note or notes issued
pursuant to Article 7 . 6, Chapter 4, Part 1, Division 2 ,
Title 5 of the Government Code of the State of California
(the "Law" ) ; and
WHEREAS, $37 , 000, 000 in aggregate principal amount
of such indebtedness is evidenced by the County' s 1983-1984
Short-term Tax and Revenue Anticipation Notes or Notes (the
"Commercial Paper" ) issued and secured pursuant to Resolution
No. 83-591, as amended by Resolution No . 83-862 , of the
County; and
WHEREAS, there presently exists a Revolving Credit
Agreement dated as of April 28, 1983 between the County and
n 10249
Wells Fargo Bank, N.A. , which provides liquidity support for
the Commercial Paper and under which the County may issue
notes (the "Notes" ) ; and
WHEREAS, the County has determined that it is
necessary and desirable to refund the $37, 000, 000 outstanding
principal amount of Commercial Paper by the issuance of its
1983-1984 Tax and Revenue Anticipation Notes, Series B (the
"Series B Notes" ) in the principal amount of $37, 000, 000; and
WHEREAS, the County has determined that, in order
to provide additional security to the holders of the Series B
Notes, it is appropriate for the County to enter into a Note
Purchase Agreement (the "Agreement" ) with Wells Fargo Bank,
N.A. (the "Bank" ) ; and
WHEREAS, the County desires to enter into the
Agreement to provide such additional security; and
WHEREAS, Goldman, Sachs & Co . , as purchaser (the
"Purchaser" ) has submitted an offer to purchase the Series B
Notes, and has submitted a form of Contract of Purchase (the
"Purchase Agreement" ) to the Board;
NOW, THEREFORE, the Board hereby finds, determines
and resolves as follows:
Section 1 . Authorization and Issuance of Series B
Notes . The Board hereby authorizes the sale and issuance of
Series B Notes in the aggregate principal amount of
$37, 000, 000 to be known as "County of Contra Costa 1983-1984
Tax and Revenue Anticipation Notes, Series B" (collectively,
2
000250
the "Series B Notes" and singly, a "Series B Note" ) . The
proceeds from the sale of Series B Notes shall be used solely
for the purpose of paying the principal of the now
outstanding Commercial Paper as the same become due and
payable, and Notes, if any, which may be outstanding.
Section 2 . Date, Maturity, Redemption,
Denominations and Numbering. (a) The Series B Notes shall be
in the denominations of $100, 000, shall be numbered serially,
shall be dated their date of delivery and, subject to prior
redemption as hereinafter set forth, shall mature on July 18,
1984. The Series B Notes may be issued in temporary form
exchangeable for definitive Series B Notes when ready for
delivery. Any temporary Series B Notes may be printed,
lithographed or typewritten, shall be of such denomination as
may be determined by the County, shall be in registered form
without coupons and may contain such reference to any of the
provisions of this Resolution as may be appropriate . A
temporary Series B Note may be in the form of a single
registered Series B Note . Every temporary Series B Note
shall be executed by the County upon the same conditions and
in substantially the same manner as the definitive Series B
Notes. If the County issues temporary Series B Notes it will
execute and deliver definitive Series B Notes as promptly
thereafter as practicable, and thereupon the temporary
Series B Notes may be surrendered, for cancellation, in
exchange therefor at the office of the County Treasurer of
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8 .4/
the County in Martinez, California and the County Treasurer
shall authenticate and deliver in exchange for such temporary
Series B Notes an equal aggregate principal amount of
definitive Series B Notes of authorized denominations. Until
so exchanged, the temporary Series B Notes shall be entitled
to the same benefits under this Resolution as definitive
Series B Notes delivered hereunder.
(b) On July 16, 1984, the County shall redeem all,
but not a part of, the Series B Notes, if the holders of all
such Series B Notes shall have delivered to BankAmerica Trust
Company of New York, as Paying Agent (the "Paying Agent" ) by
July 11, 1984, Noteholder' s Election Notices (in
substantially the form set forth in Exhibit A attached
hereto) and, by July 16, 1984, all Series B Notes; provided,
however, that in lieu of redemption, the County may cause the
Bank to purchase Series B Notes tendered for redemption to
the extent there are insufficient moneys available for
redemption in the Repayment Fund, all as more fully provided
in the Agreement. Any such redemption or purchase shall be
effected at the principal amount of the Series B Notes to be
redeemed, plus accrued interest.
(c ) The holders of all of the Series B Notes shall
have the right to demand the redemption of all such Series B
Notes on July 16, 1984, by filing with the Paying Agent, as
hereinafter defined, an irrevocable Noteholder' s Election
Notice, in substantially the form set forth as Exhibit A
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000252
attached hereto, prior to the close of business, New York
City time, on July 11, 1984. The Paying Agent shall give.
notice by telephone to the County and the Bank upon receipt
of such .Noteholder' s Election Notice. Upon the receipt of
such notification, the Fiscal Agent shall deposit moneys with
the Paying Agent to so redeem the Series B Notes presented
for redemption. If on the July 16, 1984, the County has not
pledged sufficient moneys to pay the Series B Notes so
presented, in accordance with Section 5 . 8 of the Agreement,
the Bank, pursuant to and subject to the terms and conditions
of the Agreement, shall provide amounts sufficient to
purchase, at par, the aggregate principal amount of Series B
Notes up to the limits specified in the Agreement, and the
Fiscal Agent shall transfer from the Interest Account of the
Repayment Fund (the creation of which is hereinafter
provided) sufficient moneys to pay interest on the Series B
Notes to be redeemed or to be purchased by the Bank. After
the date of such Noteholder' s Election Notice, the holder of
the Series B Notes for which such Noteholder' s Election
Notice has been filed with the Paying Agent shall relinquish,
as of the July 16, 1984, all rights of ownership, including
the right to receive interest on such Series B Note after
July 16, 1984. The Paying Agent shall pay in immediately
available funds to each holder of the Series B Notes for
which a Noteholder' s Election Notice has been filed (provided
that such Noteholder' s Election Notices have been filed for
5 py
000253
all of the outstanding Series B Notes) , against delivery of
such Series B Notes, the interest payable thereon (to and
including July 15, 1984) and the principal amount thereof.
Section 3 . Place of Payment. The principal of and
interest on the Series B Notes shall be payable in lawful
money of the United States of America, at the principal
office of the Paying Agent in New York, New York, as provided
in Section 8 hereof.
Section 4. Manner of Sale . The Series B Notes
shall be sold at private sale, at such rate or rates of
interest .(which shall be calculated on the basis of a 360-day
year and 12 30-day months) as may be fixed at the time of
such sale by the County Treasurer (but not to exceed 8% per
annum) .
Section 5 . Negotiability. The Series B Notes
shall be negotiable and payable to bearer or any designated
payee and the County and the Paying Agent may treat the
bearer or the payee thereof as the absolute owner of any
Series B Note for the purpose of receiving payment thereof
and for all other purposes, and the County and the Paying
Agent shall not be affected by any notice or knowledge to the
contrary.
Section 6. Form. Subject to the provisions of
i
Section 2 ( a) , the Series B Notes shall be in substantially in
the form annexed hereto, marked Exhibit B, which form is
hereby approved and adopted as the form of the Series B Note,
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1v a -k
000254
5
with such additions or deletions as may be approved by the
County Treasurer. The Series B Notes may be printed,
typewritten or lithographed.
Section 7 . Execution. The Series B Notes shall be
signed on behalf of the County by the County Treasurer and by
the Clerk of the Board of Supervisors or any Deputy to such
Clerk. Nevertheless, before the delivery of the Series B
Notes, the Board, by resolution, may authorize and direct any
other officer or representative of the County to sign the
Series B Notes or any thereof, in lieu of any of the officers
or representatives above named, and may direct that such
officers sign by manual or facsimile signatures. Any
facsimile signature hereby authorized which shall have been
affixed to the Series B Notes before the adoption of this
Resolution is hereby approved and ratified, and shall be as
valid and effective as if so affixed after the adoption of
this Resolution. In case any officer or representative of
the County who shall have signed any of the Series B Notes
( including new Series B Notes issued pursuant to the
provisions hereof with reference to lost, destroyed, or
mutilated Series B Notes) , or a facsimile of whose signature
shall be used thereon, shall cease to be such officer or
representative before such Series B Notes so signed shall
have been actually issued, such Series B Notes shall be valid
nevertheless and may be issued by the County with the same
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000255
effect as though the person who had signed such Series B
Notes had not ceased to be such officer or representative.
Section 8. Appointment of Paying Agent.
BankAmerica Trust Company of New York in New York, New York
is hereby designated as Paying Agent for the payment of
principal of and interest on the Series B Notes. The County
hereby directs and authorizes the payment by the Paying Agent
of the interest on and the principal of the Series B Notes
when such become due and payable or upon prior redemption as
provided herein, from an account held by the Paying Agent in
the name of the County. The County will deposit funds in
such account at such time. and in such amounts to provide
sufficient funds to pay the principal of and interest on the
Series B Notes on the day on which they mature or on the
redemption date.
Payment shall be in accordance with the terms of
the Series B Notes and this Resolution.
This appointment shall not preclude the County from
removing the Paying Agent and appointing one or more
successors thereto, or appointing additional financial
institutions to act as Paying Agent, all without notice to or
the consent of the holder or holders of any Series B Note.
Section 9 . Contract of Purchase. The Purchase
Agreement will be entered into with the Purchaser whereby the
Purchaser will purchase at a private sale, Series B Notes in
the aggregate principal amount of $37, 000, 000, bearing such
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000256
interest rate as determined in accordance with this
Resolution.
The Purchase Agreement, substantially in the form
attached hereto as Exhibit C (with such changes therein as
the County Treasurer or Auditor-Controller shall approve,
such approval to be conclusively evidenced by the execution
thereof) , is hereby approved and the County Treasurer or the
Auditor-Controller of the County is hereby authorized to
execute and deliver such Purchase Agreement and any other
documents required to be executed thereunder and to deliver
the same to the Purchaser.
Section 10. Disposition of Proceeds of Notes.
There is hereby established a separate trust fund with
BankAmerica Trust Company of New York (the "Defeasance
Agent" ) pursuant to the Fiscal Agent and Defeasance
Agreement, attached hereto as Exhibit D, for the purpose of
insuring the application of the proceeds from the sale of the
Series B Notes for the purpose specified in Section 1 hereof,
which separate fund is hereby designated the "Commercial
Paper Payment Fund" (the "Payment Fund" ) . The County
covenants and agrees that the $37, 000, 000 of proceeds from
the sale of the Series B Notes, together with $275, 000 from
the General Fund, will be placed directly into the Payment
Fund. The County covenants and agrees that the moneys set
aside and deposited in the Payment Fund shall remain therein
and be held in trust by the Defeasance Agent until expended
9
00025'7
from time to time to pay outstanding Commercial Paper as it
matures, which maturities are set forth in Exhibit E to the
Agreement and shall not be used for any other purpose
whatsoever, except that such moneys may be temporarily
invested in investments which are permitted under the
Defeasance Agreement as executed, and, if required, at a
yield which does not exceed the yield on the Series B Notes
or in securities the interest on which is exempt from federal
income taxes or in such other manner as may be approved by
Bond Counsel or specified in the Arbitrage Certificate of the
County dated the date of delivery of the Series B Notes;
provided, however, that such investments must mature on dates
corresponding to the maturities of the Commercial Paper notes
listed in said Exhibit E. The County covenants and agrees
not to reissue Commercial Paper notes or extend the
maturities of any outstanding Commercial Paper notes from
those listed on said Exhibit E.
Section 11 . Cancellation. After the payment of
principal of and interest on the Series B Notes upon maturity
or upon redemption thereof, such Series B Notes so paid and
surrendered to the Paying Agent shall be cancelled by the
Paying Agent and forthwith transmitted to the County, which
shall thereafter have the custody of all the cancelled
Series B Notes; provided, however, that Series B Notes to be
purchased by the Bank, as provided -in the Agreement, shall
not be cancelled but shall be transmitted to the Bank by the
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000258
Paying Agent who shall determine which Series B Notes are to
be redeemed and which are to be purchased (within the limits
of the Agreement) . In all matters provided for in this
Section .11, the County shall act through the County Treasurer
or through such officer or representative as may from time to
time be designated by the Board.
Section 12 . Lost, Destroyed or Mutilated Notes .
In the event any Series B Note is lost, destroyed, or
mutilated, the Board will cause to be issued a new Series B
Note, similar to the original, to replace the lost, destroyed
or mutilated Series B Note, in such manner and upon such
reasonable terms and conditions as it may from time to time
determine and prescribe by resolution.
Section 13 . Fiscal and Other Agents . In
furtherance of the purposes of this Resolution, the Board may
from time to time appoint and provide for the payment of such
additional fiscal, paying or other agents or trustees as it
may deem necessary or appropriate in connection with the
Series B Notes. BankAmerica Trust Company of New York is
hereby appointed Fiscal Agent (the "Fiscal Agent" ) for the
purpose of maintaining the Repayment Fund referred to in
Section 18 .
The Fiscal Agent Agreement for the Series B Notes,
substantially in the form attached as Exhibit E hereto, and
the Fiscal Agent and Defeasance Agreement, substantially in
the form attached as Exhibit D hereto, are hereby approved
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000259
(with such changes therein as the County Treasurer or
Auditor-Controller shall approve, such approval to be
conclusively evidenced by the execution thereof) and the
County Treasurer or the Auditor-Controller of the County is
hereby authorized and directed to appoint such Fiscal Agent
and the Defeasance Agent and to execute said Fiscal Agent
Agreement and said Fiscal Agent and Defeasance Agreement and
to execute any other documents required to be executed
thereunder.
Section 14. Note Purchase Agreement. The
Agreement will be entered into with the Bank, substantially
in the form attached hereto as Exhibit F (with such changes
therein as the County Treasurer or Auditor-Controller shall
approve, such approval to be conclusively evidenced by the
execution thereof) , whereby the Bank will, subject to the
terms and conditions thereof, agree to purchase all or a
portion of the Series B Notes in a principal amount not to
exceed $37, 950, 000 if and to the extent that there have not
been deposited into the Repayment Fund sufficient moneys to
honor redemption. The Agreement ( substantially in the form
attached as Exhibit F hereto but with changes approved by the
County Treasurer or Auditor-Controller, as aforesaid) is
hereby approved and the County Treasurer is hereby authorized
and directed to execute the Agreement and any other documents
required to be executed thereunder and to deliver the same to
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000260
the Bank prior to or concurrently with the delivery of the
Series B Notes.
Section 15 . Terms and Conditions to Be as Set
Forth; Direction for Recital in Series B Notes. The terms
and conditions of the Series B Notes shall be as set forth
herein. The Board hereby directs that there shall be
included in each of the Series B Notes, if issued, a
certification and recital that any and all acts, conditions
and things required to exist, to happen and to be performed,
precedent to and in the incurring of the indebtedness
evidenced by that Series B Note, and in the issuing of said
Series B Note exist, have happened and have been performed in
due time, form and manner, as required by the Constitution
and statutes of the State of California, including the Law.
Section 16. Effect of Findings and Recital . From
and after the issuance of the Series B Notes, the findings
and determinations of the Board respecting such issuance
contained in Section 15 hereof shall be conclusive evidence
of the existence of the facts so found and determined in any
action or proceeding in any court in which the validity of
the Series B Notes is at issue, and no bona fide purchaser of
the Series B Notes containing the certification and recitals
permitted by Section 15 hereof, which are hereby directed to
be included in each of the Series B Notes shall be required
to determine the existence of any fact, or to perform of any
condition, or to take any proceeding required prior to such
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00026.1
issuance, or to be responsible for the application of the
purchase price paid for the Series B Notes. The Series B
Notes shall be deemed to be issued, within the meaning of
this Section 16, whenever the executed Series B Notes
provided for in this Resolution have been delivered to the
Purchaser, and the purchase price thereof has been received.
Section 17 . [ intentionally omitted]
Section 18 . Source of Payment. As provided in the
Law, the Series B Notes shall be payable from the uncollected
taxes, income, revenue, cash receipts and other moneys to be
received by the County during the fiscal year 1983-1984 or
attributable to such fiscal year which will be available for
the payment of the Series B Notes and the interest thereon.
The County hereby pledges, from the General Fund,
the full amount of interest payable on the Series B Notes and
directs the County Treasurer to deposit the same with the
Fiscal Agent, in trust in the Interest Account of the
Repayment Fund (hereinafter defined) and, subject to the
prior right of the holders of the Commercial Paper, hereby
directs the County Treasurer to deposit, at intervals of at
least every three business days, with the Fiscal Agent which
shall hold such pledged amounts in trust in the Repayment
Fund, the first funds received as the second installment of
secured property taxes for fiscal year. 1983-1984, up to the
aggregate principal amount Series B Notes issued. In the
event that by April 16, 1984 there have been insufficient
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000262
such property taxes received by the County to permit deposit
with the Fiscal Agent pursuant to the Fiscal Agent Agreement
(referred to in Section 13 hereof) the full amount to be so
deposited by April 16, 1984, then on April 16, 1984 any
deficiency shall be satisfied and made up and deposited with
the Fiscal Agent from any other moneys of the County lawfully
available for the repayment of the Series B Notes and
interest thereon. In the event the County does not have
sufficient other moneys available for such payment to permit
the deposit of the full amount to be deposited on April 16,
1984, then any deficiency shall be made up from the first
moneys received thereafter and lawfully available to pay the
principal of and interest on the Series B Notes, subject,
however, to the rights of holders of the Commercial Paper.
Moneys to be deposited in the Repayment Fund, ,
including the Interest Account of the Repayment Fund, are
herein referred to as "Pledged Moneys. " The Series B Notes
and interest thereon are a lien and charge against and are
payable from such Pledged Moneys subject only to the prior
lien of the holders of Commercial Paper as hereinabove set
forth. Such moneys shall be used to pay the Series B Notes
upon redemption as provided in Section 2 hereof, or as they
mature, as the case may be and shall not be used for any
other purpose. Each Series B Note shall be secured by the
Pledged Moneys ratably according to the amount of principal
and interest thereon.
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000263
The Pledged Moneys shall be deposited with the
Fiscal Agent, in trust, in a special fund designated
i
"1983-1984 Tax and Revenue Anticipation Notes, Series B
Repayment Fund" (the "Repayment Fund" ) and applied as
directed in this Resolution. Any money deposited with the
Fiscal Agent in the Repayment Fund shall be for the benefit
of the holders of the Series B Notes and until all Series B
Notes and interest thereon are paid or until provision has
been made for the payment of the Series B Notes upon
redemption or at maturity, with interest to the redemption
date or to maturity, as the case may be, moneys in the
Repayment Fund shall be applied only for the purposes for
which the Repayment Fund was created. Notwithstanding
anything to the contrary herein contained, moneys in the
Interest Account of the Repayment Fund shall be used solely
for the purpose of paying interest on the Series B Notes and,
when such interest has been paid in full, for any other
purpose for which the Repayment Fund may be utilized.
Moneys in the Repayment Fund shall be invested as
permitted by the Fiscal Agent Agreement and if required at a
yield which does not exceed the yield on the Series B Notes
.or securities of which the interest is exempt from federal
income taxes or in such other manner as may be approved by
Bond Counsel or specified in the Arbitrage Certificate of the
County dated the date of delivery of the Series B Notes. No
such investment shall have a maturity date later than the
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000264
maturity date of the Series B Notes. The proceeds of any
such investment shall be retained in the Repayment Fund until
all of the Series B Notes have been fully paid, at which time
any excess amount shall be paid to the General Fund of the
County.
Section 19 . Additional Covenants of the County.
(a) Limitation on Indebtedness. The County
covenants with the holders of the Series B Notes and the Bank
that no amount shall be borrowed under the authority of the
Law, this Resolution or the Agreement which, when added to
the amount of all Series B Notes and interest thereon, or
other items of indebtedness issued pursuant to the Law or
this Resolution then outstanding, shall exceed 85% of the
estimated uncollected taxes, income, revenue, cash receipts
and other moneys to be received by the County during or
attributable to the fiscal year 1983-84 which will be
available for payment of the Series B Notes and other items
of indebtedness issued pursuant to the law and the interest
thereon.
(b) Series B Notes to Remain Tax Exempt, Arbitrage. .
The Board, as issuer of the Series B Notes on behalf of the
County, hereby represents and covenants that it will make no
use of the proceeds of the Series B Notes which would cause
the Series B .Notes to be "arbitrage bonds" under Section
103 (c) of the Internal Revenue Code of 1954, as amended (the
"Code" ) ; and, to that end, so long as any of the notes are
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600265
outstanding, the issuer, with respect to the proceeds of the
Series B Notes, and all officers having custody or control of
such proceeds, shall comply with all requirements of said
section--and the regulations of the United States Department
of the Treasury thereunder, to the extent that such
regulations are, at the time, applicable and in effect, so
that the Series B Notes will not be "arbitrage bonds. "
The County hereby covenants that it will not
expend, or permit to be expended, the proceeds of the
Series B Notes in any manner inconsistent with its reasonable
expectations as certified in the Arbitrage Certificate to be
executed on the date of delivery of the Series B Notes with
respect thereto .
(c) The County hereby covenants and warrants that
it will not make temporary transfers of funds, pursuant to
Article XVI , § 6 of the Constitution of the State of
California, to meet any obligations of the County during the
1983-1984 fiscal year as long as the Series B Notes are
outstanding and as long as the Agreement is in effect.
Section 20. Proceedings Constitute Contract. The
provisions of the Series B Notes and of this Resolution shall
constitute a contract between the County and the holders of
the Series B Note, and such provisions shall be enforceable
by mandamus or any other appropriate suit, action or
proceeding at law or in equity in any court of competent
jurisdiction, and shall be irrepealable.
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000266
e
Section 21 . Authorization of Expenses; General
Authorization. The Treasurer and the Auditor-Controller are
hereby respectively authorized ( 1) to enter into an agreement
for Bond. Counsel and Special Counsel services in connection
with the issuance of the Series B Notes with Orrick,
Herrington & Sutcliffe, A Professional Corporation, and to
pay not to exceed $60, 000 in fees plus out-of-pocket
expenses; (2 ) to incur the costs of out-of-town travel
necessary in connection with the issuance and delivery of the
Series B Notes, and (3) to do and perform from time to time
any and all acts and things consistent with this Resolution
necessary or appropriate to carry out the purposes and acts
permitted or required hereunder.
PASSED AND ADOPTED by the Board of Supervisors of
the County of Contra Costa, State of California, this 14th
day of February, 1984, by the following vote:
AYES: Supervisors ��`�`` ` `� m�/° �� %i-�e�,�a��✓
NOES: Supervisors '
ABSENT: Supervisors .
/Owt
Chairman of the Board
[ SEAL] �� o` ssa� e�unty �.le�� of Supervisors of the
Attest: County of Contra Costa
�/!d �.,� oFf•'e,o C/erlC nl= tam /3o z,oC
C e of the Board
of Supervisors of the
County of Contra Costa
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000267 .:..
EXHIBIT A.
To: BankAmerica Trust Company
of New York
New, York, New York
ELECTION NOTICE
The undersigned, the
holder (the "Holder" ) of County of Contra Costa 1983-1984 Tax
and Revenue Anticipation Note(s) Series B (the "Notes" ) , is
the Holder of, and hereby irrevocably notifies BankAmerica
Trust Company of New York (the "Paying Agent" ) of an election
to have, Note(s) numbered in the aggregate
principal amount of $ redeemed on July 16, 1984 and
demands payment of said principal sum, all as provided in the
Resolution of the County authorizing the issuance of the
Notes (the "Resolution" ) .
The Holder understands and agrees that, by the
execution of this Notice of Election and delivery thereof to
the Paying Agent:
1. its Note( s) will only be redeemed (or
purchased) on July 16, 1984 if all Holders of the Notes
execute and deliver Election Notices prior to the close of
business on July 11, 1984;
2. all its rights of ownership of the
above-designated Note( s) will terminate as of July 16, 1984,
except the right to the payment of the principal sum of- such
Note( s) and interest to the date preceding such July 16, 1984;
000.268
3 . interest on the above-designated Note( s) will
accrue only to the day preceding July 16; 1984, designated
above; and
4. principal of and interest on the
above-designated Note( s) will be paid only after the tender
of the such Note( s) to the Paying Agent.
Name of Holder
Dated: By
Authorized Signature
A-2
000269
Exhibit B
No. Principal Amount $
Issue Date 19 Interest Rate
Maturity Date July 18, 1984
COUNTY OF CONTRA COSTA
1983-1984 TAX AND REVENUE ANTICIPATION NOTE
SERIES B
FOR VALUE RECEIVED, the County of Contra Costa, a
body corporate and politic of the State of California, (the
"County" ) promises to pay to BEARER, on the date indicated
above, the sum indicated above with interest thereon
(calculated on the basis of a 360-day year and twelve 30-day
months) , until paid in full, payable at the maturity hereof,
or upon prior redemption or repurchase, or when otherwise
paid in full, at the rate per annum indicated above from the
date of issue hereof. Both principal and interest are
payable in lawful money of the United States of America at
the office of BankAmerica Trust Company of New York, in New
York, New York.
In accordance with the terms of the Resolution of
the County authorized the issuance of this Note (the
"Resolution" ) , the principal of and the interest on this note
are payable from certain taxes, income, revenue, cash
receipts, other moneys to be received during the fiscal year
1983-1984, certain of which having been pledged to the
payment of this note and the interest thereon, and, to the
extent not paid from said taxes, receipts, moneys and other
revenues may be paid from other moneys of the County lawfully
available therefor.
000270
All, but not less than all of the Series B Notes of
which this Note is a part will be redeemed by the County or
otherwise purchased on July 16, 1984, upon notice by all of
the holders thereof given to the Paying Agent on or before
July 11, 1984. Such notice shall be in the form required by
the Resolution. If such notice is given, the holder of this
Note and all other Series B Notes, upon proper tender of this
Note and all other Series B Notes to the Paying Agent on or
before July 16, 1984, will be entitled to receive the
principal amount of the Series B Notes, plus interest accrued
through July 15, 1984, all as more fully described in the
Resolution.
IT IS HEREBY CERTIFIED, RECITED AND DECLARED that
all acts, conditions and things required by law to exist,
happen and be performed precedent to and in the issuance of
this Note have existed, happened and been performed in due
time, form and manner as required by law, and that the amount
of this note, together with all other indebtedness of the
County, does not exceed any debt limit prescribed by the laws
or Constitution of the State of California.
Treasurer
[ Seal ] of Contra Costa County
Clerk of the
Board of Supervisors
B-2
000271
EXHIBIT C
$37, 000, 000
COUNTY OF CONTRA COSTA
STATE OF CALIFORNIA
1983-1984 TAX AND REVENUE AND
ANTICIPATION NOTES, SERIES B
CONTRACT OF PURCHASE
February 16, 1984
County of Contra Costa
California
Ladies and Gentlemen:
The undersigned (the "Purchaser" ) understands that
the County proposes to issue its 1983-1984 Tax and Revenue
Anticipation Notes, Series B (the "Notes" ) in an aggregate
principal amount of $37, 000, 000. The Purchaser offers to
enter into this agreement with the County of Contra Costa,
California (the "County" ) , which, upon the County' s
acceptance hereof will be binding upon the County and the
Purchaser. This offer is made subject to the written
acceptance of this Contract of Purchase by the County and the
delivery of such acceptance to the undersigned or its
attorney or representative at or prior to 5 : 00 P.M. , Pacific
Time, on the date hereof.
I . ( a) Purchase and Sale of the Notes. Upon the
terms and conditions and in reliance upon the
0002'72
•
representations, warranties and agreements herein set forth,
the Purchaser hereby agrees to purchase from the County, and
the County hereby agrees to sell to the Purchaser,
$37, 000, 000 in principal amount of the Notes, said Notes to
be substantially in the form attached as Exhibit B to the
Resolution ( as hereinafter defined) , subject to the
provisions of Section 4.
(b) The aggregate purchase price to be paid
by the Purchaser for the Notes shall be 100% of the aggregate
principal amount purchased.
2 . The Notes. The Notes shall be dated their
date of issue, shall mature on July 18, 1984, and shall
otherwise be as described in, and shall be issued and secured
pursuant to the provisions of Resolution No. 84-98 of the
County adopted on February 14, 1984, (the "Resolution" ) , and
Article 7 . 6, Chapter 4, Part 1, Division 2, Title 5
(commencing with Section 53850) of the California Government
Code (the "Act" ) .
3 . Delivery of Information. There has been or
promptly will be delivered to Purchaser a copy of the audited
financial statements of the County for the fiscal year
1982-1983 together with the following additional documents:
cash flow statement of the general fund of the County
2
0002'73
containing actual results through December 1983 and
projections through the balance of the year together with
seven specific assumptions and Findings and Recommendations
Regarding Health Services Department dated January 31, 1984
(the "Report" ) from Arthur Young & Company to the Board of
Supervisors of the County and an Official Statement relating
to $27, 000, 000 in principal amount of 1983-1984 tax and
revenue anticipation notes of the County.
4. Closing. At 9 : 00 A.M. , New York City time, on
February 16, 1984, or at such other time or on such later
date (but not later than February 24, 1984) as shall have
been mutually agreed upon by you and us (the "Closing" ) , you
will deliver to us at the principal office of BankAmerica
Trust Company of New York, in New York, New York, or at such
other place as we may mutually agree upon, the Notes
purchased by us, in temporary registered form (which may be
typewritten) , duly executed, together with the other
documents hereinafter mentioned; and we will accept such
delivery and pay the purchase price thereof in immediately
available funds to the order of the County. The Notes
originally purchased by us shall be in the form of a single
Note registered in the name of the Purchaser. As soon as
practical after the Closing, and as requested by the
Purchaser, the County shall execute and deliver definitive
Notes in bearer form, in respective principal amounts
3
0002'74
designated by the Purchaser, which shall be $100, 000 or any
integral multiple thereof. Notwithstanding anything to the
contrary herein contained, if for any reason whatsoever other
than default by the Purchaser the Notes purchased by us shall
not have been delivered by the County to the Purchaser prior
to 9 : 00 A.M. , New York City time, on February 24, 1984, then
the obligation of the Purchaser to purchase Notes hereunder
shall terminate and be of no further force or effect, and if
for any reason whatsoever other than default of the County
the Notes purchased by us shall not have been delivered by
the County to the Purchaser prior to the 9: 00 A.M. , New York
City time, on February 24, 1984, then the obligations of the
County to sell Notes hereunder shall terminate and be of no
further force or effect, except with respect to the
obligations of the County under Section 10 hereof.
5 . Representations, Warranties and Agreements of
the County. The County hereby represents, warrants and
agrees with the Purchaser that:
(A) The County is validly existing as a
political subdivision of the State of California, with the
power to issue the Notes pursuant to the Act.
(B) The County has full power and authority
under the Constitution and laws of the State of California,
4
0002'75
including the Act, to adopt the Resolution, to enter into the
Note Purchase Agreement as described in the Resolution, and
this Purchase Contract, and to perform its obligations under
all of said agreements, including this Purchase Contract
(herein, collectively, the "Purchase Documents" ) and to take
all actions in carrying out and consummating the transactions
contemplated thereby and to issue and sell the Notes as
provided in the Purchase Contract, and has taken all
proceedings and obtained all consents and approvals required
in connection therewith by the Act or any other applicable
California law.
(C) The County has duly adopted the
Resolution and has duly authorized the execution and delivery
of the Purchase Documents and the issuance and sale of the
Notes, and all actions necessary or appropriate to carry out
and consummate the transactions contemplated thereby, and the
making and performance of each such agreement, the taking of
all actions in carrying out and consummating the transactions
contemplated thereby and the issuance and sale of the Notes
will not conflict with, violate or result in a breach of or
constitute a default under any indenture, agreement,
mortgage, lease or other instrument by which the County or
any of its properties may be bound or any constitutional or
statutory provision or order, rule, regulation, decree or
ordinance of any Federal or State court, government or
5
0002'76
governmental body having jurisdiction over the County or any
of its property and by which the County or any of its
properties may be bound.
(D) The issuance and sale of the Notes does
not violate any limitation imposed by the Constitution or
laws of the State of California, including the Act, on the
incurring of indebtedness by the County.
(E) The County is not in default, and at no
time during the past twenty-five years has been in default,
in the payment of principal of, premium, if any, or interest
on, any bonds, notes or other obligations which it has
issued, assumed or guaranteed as to payment of principal,
premium, if any, or interest.
(F) There is no litigation, proceeding or
investigation before or by any court, public board or body
pending or threatened against or affecting the County
challenging the validity of, or in which an unfavorable
decision, rule or finding would materially adversely affect
the Resolution, the Purchase Documents, any of the
transactions contemplated thereby or the performance by the
County of any of its obligations thereunder.
6
000277
(G) The County has not, since June 30, 1983,
incurred any material liabilities other than in the ordinary
course of business, except as set forth in or contemplated by
the Report, and the indebtedness referred to in Section 5 .2
of the Note Purchase Agreement, and the financial statements
of the County appended thereto present fairly the financial
condition of the County as of the date thereof and the result
of its operations for the period therein described.
(H) Between the date hereof and the Closing,
without the prior written consent of the Purchaser, the
County will not have issued any bonds, notes or other
obligations and will not have borrowed money, except for the
borrowings referred to in Section 5 .2 of the Note Purchase
Agreement.
( I ) The County has not been notified of any
listing or proposed listing by the Internal Revenue Service
to the effect that the County is a bond issuer whose
arbitrage certificates may not be relied upon.
(J) Any certificate signed by any officer of
the County and delivered to the Purchaser shall be deemed a
representation and warranty by the County to the Purchaser as
7
0002'78
to the statements made therein but not of the person signing
the same except in his official capacity.
6. Covenants. • (A) The County covenants and
agrees with the Purchaser that:
( i ) The County has entered into a Note
Purchase Agreement with Wells Fargo Bank, N.A. (the "Bank" )
dated as of February 15, 1984 (the "Note Purchase .
Agreement" ) , a copy of which has been delivered to the
Purchaser, pursuant to which the Bank has agreed with the
County, under certain conditions, acting in the Bank' s own
behalf and not as an agent of the County, to purchase Notes
in the event of a demand by the holder of any of the Notes
for payment or repurchase of such Notes. So long as any of
the Notes remain outstanding, the County agrees not to
terminate or amend the Note Purchase Agreement except as
contemplated by Section 2 . 4(b) thereof.
( ii ) The County will refrain from taking any
action that could result in the loss of the tax-exempt status
of the interest on the Notes.
(iii ) All of the proceeds from the sale of the
Notes to the Purchaser will be placed in trust with
BankAmerica Trust Company of New York, to be held pursuant to
8
000279
. f 1
a Fiscal Agent and Defeasance Agreement substantially in the
form of Exhibit E to the Resolution and shall be used solely
to pay Negotiable Notes, as defined in the Credit Agreement
referred to in the Note Purchase Agreement. The County
agrees that it will not issue any additional Negotiable Notes
and warrants and represents that the schedule attached hereto
as Exhibit A reflects the current maturities of all
Negotiable Notes now outstanding, and that all of said
Negotiable Notes will be repaid in full, as they mature, with
proceeds from the sale of the Series B Notes.
(B) In the event of a sale of the Notes by
the Purchaser to the Bank, the Purchaser agrees to deliver
the Notes pursuant to provisions of the Resolution and the
Note Purchase Agreement.
7 . Conditions of Closing. The Purchaser has
entered into this Contract of Purchase in reliance upon the
representations and warranties of the County contained herein
and the performance by the County of its obligations
hereunder, both as of the date hereof and as of the date of
Closing. The Purchaser' s obligations under this Contract of
Purchase are and shall be subject to the following further
conditions as of the Closing:
9
000280
(A) The representations and warranties of the
County contained herein shall be true, complete and correct
in all material respects at the date hereof and at and as of
the Closing, as if made at and as of the Closing and will be
confirmed by a certificate or certificates of the appropriate
County official or officials dated the date of Closing, and
the statements made in all certificates and other documents
delivered to the Purchaser at the Closing pursuant hereto
shall be true, complete and correct in all material respects
on the date of the Closing; and the County shall be in
compliance with each of the agreements and covenants made by
it in this Contract of Purchase;
(B) At the time of the Closing, ( i ) all
actions under the Act which, in the opinion of Bond Counsel,
shall be necessary to the validity of the Notes, shall have
been duly taken and shall be in full force and effect; and
( ii ) the County shall perform or have performed all of its
obligations required under or specified in the Resolution and
the Purchase Documents to be performed at or prior to the
Closing;
(C) No order, decree or injunction of and
court of competent jurisdiction, nor any order, ruling or
regulation of the Securities and Exchange Commission, shall
have been issued or made with the purpose of effect of
prohibiting the issuance, offering or sale of the Notes, as
10
00028
1
I
I
I
I
contemplated hereby, and no legislation shall have been
enacted, or a bill favorably repoited for adoption, or a
I
decision by a court established under Article III of the
I
Constitution of the United Stateslrendered, or a ruling,
regulation, proposed regulation or official statement by or
on behalf of the Securities and Exchange Commission or other
I
governmental agency having jurisdiction of the subject matter
I
shall be made or issued, to the effect that the Note or any
I
securities of the County or othercountiesof the type
contemplated herein are not exempt from the registration,
qualification or other requirements of the Securities Act of
I
1933 , as amended and as then in effect, or of the Trust
I
Indenture Act of 1939, as amendedland as then in effect;
I
I
(D) At or prior to the date of the Closing,
I
the Purchaser shall receive threelcopies of the following
documents, in each case dated on and as of the Closing Date
(except as otherwise indicated) and satisfactory in form and
substance to the Purchaser:
( 1 ) An approving opinion of Bond Counsel , dated
the date of Closing as to the validity of and tax-exempt
nature of interest on the Notes, ddressed to the County and
the Purchaser, coveringthe mattes set forth i x
n Exhibit B
hereto and such other matters as may by reasonably requested
by the Purchaser.
11
00028 ,
(2 ) An opinion of Counsel to the County, addressed
to the Purchaser, covering the matters set forth in Exhibit C
hereto and such other matters as may be reasonably requested
by the Purchaser.
(3 ) A certificate signed by an appropriate County
official to the effect that ( i ) the representations and
warranties of the County herein are true and correct as
though made on and as of the date of Closing; (ii ) the County
has complied with all the terms of the Resolution and the
Purchase Documents to be complied with by the County prior to
or concurrently with the Closing and such documents are in
full force and effect; (iii ) there is no action, suit,
proceeding, inquiry or investigation, at law or in equity,
before or by any court or public body, pending or threatened
against the County which has any of the effects described in
Section 5 (F) hereof (but in lieu of or in conjunction with
such certification the Purchaser may, at its sole discretion,
accept certificates or opinions of the Counsel of the County
or Bond Counsel that in their opinion the issues raised in
any such pending or threatened litigation are without
substance and that the contentions of all plaintiffs therein
i
are without merit) .
12
000283
(4) A non-arbitrage certificate of the County, in
form satisfactory to Bond Counsel, signed by the Treasurer of
the County;
( 5) A certificate, together with a fully executed
copy of the Resolution, of the Clerk of the County to the
effect that:
(i ) such copy is a true and correct copy of
such Resolution; and
( ii ) that the Resolution was duly adopted and
has not been modified, amended, rescinded or revoked and is
in full force and effect on the date of Closing; and
( 6) Such additional legal opinions, certificates,
proceedings, instruments and other documents as the Purchaser .
or Bond Counsel may reasonably request to evidence compliance
by the County with legal requirements, the truth and
accuracy, as of the time of Closing, of the representations
of the County herein contained and the due performance or
satisfaction by the County at or prior to such time of all
agreements then to be performed and all conditions then to be
satisfied by the County.
13
000284
• Y
Y
(E) Evidence satisfactory to Purchaser that
concurrently with the closing of the sale of the Notes
hereunder, the Defeasance Agreement and Fiscal Agent
Agreement, both as defined in the Resolution, shall be in
full force and effect and (i ) $37, 000, 000 of the proceeds of
the sale of the Notes, together with $275, 000 in funds of the
County shall have been deposited with the bank named in the
Defeasance Agreement and (ii ) the amount necessary to pay
interest in full on the Notes at maturity shall have been
deposited by the County with the bank named in the Fiscal
Agent Agreement to be held in the Interest Account of the
Repayment Fund, all as contemplated by the Resolution.
8. Termination. If the County shall be unable to
satisfy the conditions to the Purchaser' s obligations
contained in this Contract of Purchase or if the Purchaser' s
obligations shall be terminated for any reason permitted by
this Contract of Purchase, this Contract of Purchase may be
cancelled by the Purchaser at, or at any time prior to, the
time of Closing. Notice of such cancellation shall be given
to the County in writing, or by telephone or telegraph
confirmed in writing. Notwithstanding any provision herein
to the contrary, the performance of any and all obligations
of the County hereunder and the performance of any and all
conditions contained herein for the benefit of the Purchaser
14
000280
may be waived by the Purchaser in writing at its sole
discretion.
The Purchaser shall also have the right to cancel
its obligation to purchase Notes, by written notice to the
County, if between the date hereof and the Closing:
(A) Legislation enacted by the Congress of
the United States, or passed by either House of the Congress,
or favorably reported for passage to either House of the
Congress by any Committee of such House to which such
legislation has been referred for consideration, or by the
legislature of the State of California ( "State" ) , or a
decision rendered by a court of the United States or the
State or by the United States Tax Court, or a ruling, order,
or regulation ( final or temporary) made by the Treasury
Department of the United States or the Internal Revenue
Service or other Federal or State authority, would have the
effect of changing, directly or indirectly, the Federal
income tax consequences or State tax consequences of interest
on obligations of the general character of the Notes in the
hands of Purchaser.
(B) Any restriction on trading in securities,
or any banking moratorium, or the inception or escalation of
15
000286
any war or major military hostilities which, in the
reasonable judgment of the Purchaser, renders the Purchaser
unable to purchase the Notes; or
(C) Any change in the applicable law, rules
or regulations ( including any change in the rules of the
federal Securities and Exchange Commission or in the
Commission' s published interpretations of the law, including
such rules) occurs after the date hereof, or a reduction in
the net assets of the Purchaser occurs after the date hereof,
either of which occurrences, in the reasonable judgment of
the Purchaser, would cause the purchase of the Notes by the
purchaser to constitute a violation of law, rules or
regulations applicable to the Purchaser on the date of the
Closing.
If the Purchaser terminates its obligations to
purchase the Notes because any of the conditions specified in
Section 7 or 8 hereof shall not have been fulfilled at or
before the Closing, such termination shall not result in any
liability on the part of the Purchaser.
9 . Conditions to Obligations of the County. The
performance by the County of its obligations is conditioned
upon ( i ) the performance by the Purchaser of its obligations
i
16
00028'7
hereunder; and (ii ) receipt, by the County and the Purchaser
of opinions and certificates being delivered at the Closing
by persons and entities other than the County.
10. Expenses. Whether or not the Purchaser accepts
delivery of and pays for the Notes as set forth herein, the
Purchaser shall be under no obligation to pay, and the County
shall pay, any expenses incident to the performance of the
County' s obligations hereunder, including but not limited to
the following: ( i ) the cost of the preparation and
reproduction of the Resolution; ( ii ) the fees and
disbursements of Bond Counsel; ( iii ) the cost of the
preparation, printing and delivery of the Notes; ( iv) the
fees, if any, payable to the California Debt Advisory
Commission; (v) any costs or expenses incurred with any
signature company incident to signing the Notes; (vi ) costs
of preparation and reproduction of this Contract of Purchase;
and (vii ) the fees and expenses of counsel for any
institutional investor to whom the Purchaser sells the Notes
for services in connection with the review of the Purchase
Documents .
11 . Method of Payment of Principal and Interest on
Notes Held by the Purchaser. Despite provisions to the
contrary contained in the Notes, the County will pay to the
Purchaser all amounts payable to the Purchaser in respect of
17
000288
the principal of or interest on any of the Notes held by the
Purchaser, by wire transfer to the account of the Purchaser
at such bank located in the United States of America
designated by the Purchaser.
12 . Notices. Any notice or other communication to
be given under this. Contract of Purchase (other than the
acceptance hereof as specified in the first paragraph hereof)
may be given by delivering the same in writing, if to the
County, addressed to Treasurer, Contra Costa County, Finance
Building, 625 Court Street, Martinez, California 94553 , or if
to the Purchaser, addressed to it at 85 Broad Street, 26th
Floor, New York, New York 10034, Attn: Christian McCarthy.
13 . Parties in Interest; Survival of
Representations and Warranties . This Contract of Purchase
when accepted by the County in writing as heretofore
specified shall constitute the entire agreement between the
County and the Purchaser and is made solely for the benefit
of the County and the Purchaser (including their
successors ) . No other person shall acquire or have any right
hereunder or by virtue hereof. The term "successor" shall
include the purchasers to whom the Purchaser sells the Notes,
which the Purchaser agrees shall be an institutional investor
purchasing for not more than 10 accounts who will purchase
not with a. view to the resale or transfer thereof, reserving
18
000289
at all times the right to make its own investment decisions,
but shall not include any other purchaser of Notes merely
because of such purchase. All representations, warranties
and agreements of the County in this Contract of Purchase
shall survive regardless of (a) any investigation or any
statement in respect thereof made by or on behalf of the
Purchaser, (b) delivery of and payment by the Purchaser for
Notes hereunder, and (c ) any termination of this Contract of
Purchase .
14. Execution in Counterparts This Contract of
Purchase may be executed in several counterparts and by each
of the parties hereto in separate counterparts, each of which
shall be regarded as an original and all of which shall
constitute one and the same document.
19
000290
15. Applicable Law. This Contract of Purchase
shall be interpreted, governed and enforced in accordance
with the law of the State of California.
1
Very truly yours,
GOLDMAN, SACHS & CO.
By
Title:
The foregoing is hereby agreed to
and accepted as of the date first
above written:
COUNTY OF CONTRA COSTA
By
Treasurer
20
000291
EXHIBIT B
POINTS TO BE COVERED IN
OPINION OF BOND COUNSEL
( 1 ) The County is validly existing as a political
subdivision of the State of California.
(2 ) The County has full power and authority under
the Constitution and laws of the State of California,
including the Act, to adopt the Resolution, to enter into the
Purchase Documents, and to perform its obligations thereunder
and to take all actions necessary for it to carry out its
obligations described therein, including such power and
authority to issue and sell the Notes as provided in the
Purchase Contract, and has taken all proceedings and obtained
all consents and approvals required of it for the validity
and enforceability of the Notes by the Act or other
applicable California law.
( 3 ) The County has duly adopted the Resolution and
has duly authorized the execution and delivery of the
Purchase Documents and the issuance and sale of the Notes,
and all actions necessary to carry out its obligations
thereunder.
000292
(4) The Notes have been duly and validly
authorized and executed, and when delivered and paid for in
accordance with the Purchase Contract, will constitute the
legally valid and binding obligations of the County, payable
from the Pledged Moneys (as defined in the Resolution) , and
are enforceable against the County in accordance with their
terms, except as such enforceability may be limited by
bankruptcy, insolvency, reorganization, moratorium or other
laws affecting creditors rights generally. Subject to the
prior rights of holders of Negotiable Notes and Notes (as
defined in the Resolution) , when the Pledged Moneys have been
received by the County and deposited in the Repayment Fund
(as defined in the Resolution) in accordance with said
Resolution, said Pledged Moneys may not lawfully be used for
any purpose other than the payment of the Notes and the
interest thereon (as provided and limited by Section 18 of
the Resolution) , although any amounts remaining in the
Repayment Fund after payment of all such Notes and the
interest thereon may be transferred to the general fund of
the County and used for other purposes.
(5) The Purchase Documents have been duly and
validly authorized, executed and delivered by the County and
B-2
000293
constitute valid and binding obligations of the County
enforceable against the County in accordance with their
terms. Such counsel need express no opinion as to the
availability of equitable remedies. In addition, such
counsel may advise that a California Court may not strictly
enforce certain covenants if it concludes that such
enforcement would not be reasonable under the then existing
circumstances, but that enforcement would be available in the
event a default occurs as a result of a material breach by
the County of a material covenant contained in such documents.
(6) Relying on factual certificates of appropriate
officers of the County, the issuance and sale of the Notes
does not violate any limitation imposed by the Constitution
or laws of the State of California, including the Act, on the .
incurring of indebtedness by the County.
(7 ) Interest to be paid to on the Notes is exempt
from present federal income taxes and present State of
California personal income taxes under existing laws,
regulations and court decisions.
B-3
000294
EXHIBIT C
POINTS TO BE COVERED IN
OPINION OF COUNSEL FOR THE COUNTY
(1 ) The County is validly existing as a political
subdivision of the State of California.
(2 ) The Resolution has been duly adopted by the
County in accordance with all requirements of California law,
including the Act, and all procedural rules of the County and
is in full force and effect on the date of such opinion. The
officials of the County listed on the incumbency certificate
of the County delivered on the date of such opinion have been
duly appointed or elected and are qualified to serve as such.
(3 ) The Purchase Documents have been duly
authorized, executed and delivered by the County and are
legal, valid and binding obligations of the County
enforceable against it in accordance with their terms.
(4) The County has duly authorized the execution
and delivery of the Purchase Documents and has approved the
issuance and sale of the Notes, and all actions necessary or
appropriate to carry out and consummate the transactions
contemplated thereby; and the making and performance of each
such agreement, the taking of all actions in carrying out and
00029;.1
consummating the transactions contemplated thereby and the
issuance and sale of the Notes will not conflict with,
violate or result in a breach of or constitute a default
under any indenture, agreement or other instrument by which
the County or any of its properties may be bound or any
constitutional or statutory provision or order, rule,
regulation, decree or ordinance of any Federal or State
court, government or governmental body having jurisdiction
over the County or any of its property and by which the
County or any of its properties may be bound.
(5 ) To the best of such counsel ' s knowledge after
due inquiry there is no litigation, proceeding or
investigation before or by any court, public board or body
pending, or to such counsel ' s knowledge threatened, against
or affecting the County challenging the validity of, or in
which an unfavorable decision, ruling or finding would
adversely affect, the Resolution, the Purchase Documents or
any of the transactions contemplated by such instruments or
the performance by the County of any of its obligations
thereunder.
C-2
000296
EXHIBIT D
FISCAL AGENT AND DEFEASANCE
AGREEMENT
THIS AGREEMENT, made and entered into this 16th day
of February, 1984, by and between the COUNTY OF CONTRA COSTA
(the "County" ) and BANKAMERICA TRUST COMPANY OF NEW YORK (the
"Bank" ) ,
W I T N E S S E T H
WHEREAS, the County has authorized and provided for
the issuance of $37, 000, 000 principal amount of its 1983-1984
Tax and Revenue Anticipation Notes, Series B (the "Series B
Notes" ) ; and
WHEREAS, all of the proceeds of the. Series B Notes
are being delivered to the Bank under this agreement,
together with $275, 000 of funds of the County, to be held for
the purposes described below.
WHEREAS, the Bank, at its principal office in New
York, New York, has been designated as Defeasance Agent; and
WHEREAS, it is mutually desirable that an Agreement
be entered into by the parties hereto to provide for the
Bank' s services;
NOW, THEREFORE, the parties hereto in consideration
of the mutual covenants herein agree as follows :
1 . The Bank shall perform the duties imposed on
the Defeasance Agent by Resolution No. 84-98 adopted by the
Board of Supervisors of the County on February 14, 1984 (the
"Resolution" ) .
2 . The County shall faithfully observe and
perform all of the conditions, covenants and requirements of
the Resolution and of the Series B Notes. Nothing herein
contained shall prevent the County from making advances of
.its own moneys, howsoever derived, for any of the uses or
purposes referred to herein and in the Resolution.
3 . The Bank acknowledges receipt of $37, 275, 000
and agrees to hold the same in trust in the Commercial Paper
Payment Fund (herein called the "Payment Fund" ) established
pursuant to the Resolution. The Bank shall submit to the
County a statement on March 23 ,1984, showing the receipt and
investment of all funds in such account as of such date. The
moneys on deposit hereunder are being used for the sole
000297
purpose of paying the 1983-1984 short term tax and revenue
anticipation notes (the "Commercial Paper" ) of the County
currently outstanding in the aggregate principal amount of
$37, 000, 000, plus accrued interest. Attached hereto is a
schedule of the current maturities of the Commercial paper.
Upon receipt by the Bank of Commercial Paper for payment, the
Bank shall use funds on deposit hereunder to pay such
Commercial Paper and interest thereon. The Bank shall follow
the instructions of the Treasurer of the County with respect
to the investment of funds in the Payment Fund; provided,
however, that funds in the Payment Fund may be invested only
in the following securities and with maturities such that
Commercial Paper may be paid at the respective maturity dates
thereof from maturing investments in the Payment Fund:
[ See Exhibit A hereto ] .
4. The County agrees to pay the Bank fees as
follows:
A. Acceptance of the account including the
review of the Resolution and supporting documents,
and the setting up of all required records: $
B. Investment of funds in accordance with
the terms of the Resolution: $ per investment.
5 . In addition to the amounts set forth in
paragraph 4, the County will reimburse the Bank for its
normal out-of-pocket expenses such as, but not limited to,
stationery, postage, insurance, telephone, telegraph, legal,
travel and consultants' charges, but not including overhead.
Moreover, should a default occur requiring special action to
be taken by the Defeasance Agent, the County agrees to pay a
reasonable fee depending upon the amount and nature of the
services involved.
6. Moneys on deposit in the - Payment Fund shall be
available solely for the payment of the principal of and
interest on the Commercial Paper, and shall not be available
for any other obligation of the Bank or the County; provided,
however, any moneys remaining after repayment in full of all
of the Commercial Paper may be transfered to or at the
direction of the County.
7 . All notices, documents and other
correspondence will be mailed or delivered to the Bank at the
principal corporate trust office of the Bank in New York, New
York, Attention: James Ryan, and to the County at its
administrative offices in the County of Martinez, California,
Attention: Treasurer, or such other address as either party
shall from time to time indicate in writing to the other.
D-2
000298
IN WITNESS WHEREOF, the parties hereto have caused
this agreement to be duly executed the day and year first
above written.
COUNTY OF CONTRA COSTA
By
Treasurer
BANKAMERICA TRUST COMPANY OF NEW YORK
By
I
D-3
0002
I
EXHIBIT E
FISCAL AGENT AGREEMENT
THIS AGREEMENT, made and entered into this 16th day
of February, 1984, by and between the COUNTY OF CONTRA COSTA
(the "County" ) and BANKAMERICA TRUST COMPANY OF NEW YORK (the
"Bank" ) ,
W I T N E S S E T H
WHEREAS, the County has authorized and provided for
the issuance of $37, 000, 000 principal amount of its 1983-1984
Tax and Revenue Anticipation Notes, Series B (the "notes" ) ;
and
WHEREAS, the Bank is receiving this date the sum of
$ from the County to be held in the Interest
Account of the Repayment Fund.
WHEREAS, the Bank, at its principal corporate trust
office in the City of New York, New York, has been designated
as Fiscal Agent for the notes; and
WHEREAS, it is mutually desirable that an Agreement
be entered into by the parties hereto to provide for the
Bank' s services;
NOW, THEREFORE, the parties hereto in consideration
of the mutual covenants herein agree as follows:
1 . The Bank shall perform the duties imposed on
the Fiscal Agent by Resolution No. 84-98 adopted by the Board
of Supervisors of the County on February 14, 1984, (the
"Resolution" ) .
2 . The County shall faithfully observe and
perform all of the conditions, covenants and requirements of
the Resolution and of the notes. Nothing herein contained
shall prevent the County from making advances of its own
moneys, howsoever derived, for any of the uses or purposes
referred to herein and in the Resolution.
3 . The Bank shall deposit all funds received by
it in the 1983-1984 Tax and Revenue Anticipation Notes,
Series B Repayment Fund (herein called the "Repayment Fund" )
established pursuant to the Resolution as follows: .
$ received this date from the County shall be held
in the Interest Account of the Repayment Fund and used solely
for the payment of interest on the notes, and for no other
0003
purpose, and the balance of the funds received shall be
utilized as otherwise provided in the Resolution for the
Repayment Fund. The Bank shall submit to the County monthly
statements, commencing in March, 1984, showing the receipt
and investment of all funds in such account as of the end of
the last preceding accounting period of the County. The Bank
shall follow the instructions of the Treasurer-Tax Collector
of the County with respect to the investment of funds in the
Repayment Fund, provided, however, that funds in the
Repayment Fund may be invested only in the following
securities with maturities such that Notes may be paid at
redemption dates from maturing investments in the Repayment
Fund: United States Treasury notes, bonds, bills, or
certificates of indebtedness, or those for which the faith
and credit of the United States are pledged for the payment
of principal and interest. The Bank shall also transfer
funds in the Repayment Fund to the Paying Agent for the notes
to permit the payment thereof at their redemption or
maturity, in immediately available funds. If, on the
Availability Date (as that term is defined in the Note
Purchase Agreement attached as Exhibit F to the Resolution) ,
there are not sufficient monies on deposit in the Repayment
Fund to fully pay the principal amount of the notes and
interest thereon, the Bank shall determine which notes
tendered for payment or redemption can be fully paid from
funds on deposit in the Repayment Fund and shall advise the
bank named in the Note Purchase Agreement of the notes which
cannot be so paid. In the event funds are not available from
such bank to pay the balance of the notes, then the Bank
shall ratably pay all notes.
4. The County agrees to pay the Bank fees as
follows:
A. Acceptance of the account including the
review of the Resolution and supporting documents,
and the setting up of all required records: $
B. Investment of funds in accordance with
the terms of the Resolution: $ per investment.
5 . In addition to the amounts set forth in
paragraph 4, the County will reimburse the Bank for its
normal out-of-pocket expenses such as, but not limited to,
stationery, postage, insurance, telephone, telegraph, legal,
travel and consultants' charges, but not including overhead.
Moreover, should a default occur requiring special action to
be taken by the Bank, the County agrees to pay a reasonable
fee depending upon the amount and nature of the services
involved.
E-2
000301
6. It is hereby acknowledged that moneys on
deposit in the Repayment Fund account shall be available
solely for the payment of the notes and the interest thereon
( subject to the further limitation that monies in the
Interest Account of the Repayment Fund shall be used solely
to pay interest on the notes until such interest has been
paid in full and then for any other purposes for which the
Repayment Fund may be utilized) and shall not be available
for any other obligation of the Bank or the County; provided,
however, any moneys remaining after repayment in full of
Notes may be transferred to or at the direction of the County.
7. All notices, documents and other
correspondence will be mailed or delivered to the Bank at the
principal corporate trust office of the Bank in the City of
New York, New York, Attention: James Ryan, and to the County
at its administrative offices in the City of Martinez,
California, Attention: Treasurer-Tax Collector, or such
other address as either party shall from time to time
indicate in writing to the other.
IN WITNESS WHEREOF, the parties hereto have caused
this agreement to be duly executed the day and year first
above written.
COUNTY OF CONTRA COSTA
By
Treasurer
BANKAMERICA TRUST COMPANY OF
NEW YORK
By
E-3
000302
EXHIBIT F
COUNTY OF CONTRA COSTA
NOTE PURCHASE AGREEMENT
DATED AS OF
February 15, 1984
MAXIMUM COMMITMENT
$37, 000, 000
000303
TABLE OF CONTENTS
Section Page
1 . Definitions . . . . . . . . . . . . . . . . . . . 1
2 . Note Purchase Commitment . . . . . . . . . . 2
2 . 1 Commitment . . . . . . . . . . . . . . . . . 2
2 .2 Advance . . . . . . . . . . . . . . . . . . 3
2 . 3 Settlements . . . . . . . . . . . . . . . . 3
2 . 4 Commitment Fee and Reduction of
Available Credit . . . . . . . . . . . . . 3
3 . Conditions Precedent . . . . . . . . . . . . . . 4
3 . 1 To Obligations Under Agreement . . . . . . . 4
3 . 2 To Making an Advance . . . . . . . . . . . . 5
4. Representations and Warranties . . . . . . . . 7
4. 1 Organization . . . . . . . . . . . . . . . . 7
4. 2 Due Execution . . . . . . . . . . . . . 7
4. 3 Consents . . . . . . . . . . . . . . . . . . 7
4. 4 Incurrence and Parity . . . . . . . . . . . 7
4. 5 Binding Obligations . . . . . . . . . . . . 7
4. 6 Regulations U and X . . . . . . . . . . . . 8
4. 7 Financial Statements; Other Documents . . . 8
5 . Covenants . . . . . . . . . . . . . . . . . . . . 8
5 . 1 Punctual Payment . . . . . . . . . . . . . 8
5 . 2 Other Indebtedness and Liens . . . . . . . 8
5 . 3 Notices . . . . . . . . . . . . . . . . . . 9
5 . 4 Accounting Records . . . . . . . . . . . . 9
5 . 5 Financial Statements; Other Documents . . . 9
5 . 6 Documents . . . . . . . . . . . . . . . . . 9
5 . 7 Payment of Indebtedness . . . . . . . . . . 9
5 . 8 Pledge of Revenues . . . . . . . . . . . . 10
5 . 9 Additional Liens . . . . . . . . . . . . . 10
5 . 10 Change of Fiscal Agent . . . . . . . . 11
5 . 11 No Unauthorized Publicity . . . . . . . . . 11
5 . 12 Use of Proceeds of Series B Notes;
No New Refundings . . . . . . . . . . . . 11
i
000304
Section Page
6. Events of Default . . . . . . . . . . . . . . . 11
7 . Miscellaneous . . . . . . . . . . . . . . . . . . 12
7. 1 No Waiver; Cumulative Remedies . . . . . . 12
7.2 Addresses for Notices, etc . . . . . . . . . 12
7 . 3 Costs and Expenses . . . . . . . . . . . . 13
7 . 4 Execution in Counterparts . . . . . . . . . 13
7 . 5 Binding Effect; Assignment . . . . . . . . 13
7 . 6 Participation . . . . . . . . . . . . . . . 13
7 . 7 Consent and Waiver; Amendments . . . . . . 13
7 . 8 Governing Law . . . . . . . . . . . . 14
7 . 9 Severability of Provisions . . . . . 14
7 . 10 Headings . . . . . . . . . . . . . . . . . 14
7 . 11 Computations . . . . . . . . . . . . . . . 14
Exhibit A - Opinion of County Counsel
Exhibit B - Opinion of Orrick, Herrington & Sutcliffe
Exhibit C - Certificate and Purchase Request
Exhibit D - Fiscal Agent Agreement
Exhibit E - Schedule of Current Maturities of Negotiable Notes
ii
000305
NOTE PURCHASE AGREEMENT
This Agreement is entered into as of February 15,
1984, among the County of Contra Costa, acting by and through
the Board of Supervisors ( "Borrower" ) and Wells Fargo Bank,
N.A. ( "Bank" ) with respect to the following:
1 . Definitions
In addition to the terms defined elsewhere in this
Agreement, the following terms have the meanings indicated
for purposes of this Agreement:
1 . 1 "Advance" means the amount paid by the Bank to
purchase Series B Notes .
1 . 2 "Authorized Officer" means the Treasurer, any
Deputy Treasurer, the Auditor-Controller and any other person
who may hereafter be designated as such by the Board of
Supervisions of the Borrower.
1 . 3 "Availability Period" means the period
commencing on the Closing Date and ending at 5 : 00 p.m. ,
Contra Costa County time, on the Term Date.
1 . 4 "Availability Date" means July 16, 1984.
1 . 5 "Bank' s Office" means the office of the Bank
at 420 Montgomery Street, San Francisco, California (Funding
Group/Public Finance Department #1380) .
1 . 6 "Closing Date" means the Issue Date; provided,
however, in the event that the Closing Date shall not have
occurred prior to February 24, 1984, the Bank will be
relieved from all of its obligations hereunder, and this
Agreement shall be terminated.
1 . 7 "Contract of Purchase" shall mean the Contract
of Purchase, dated February 16, 1984 between Borrower and
Goldman, Sachs & . Co. relating to the issuance and sale by the
Borrower of the Series B Notes.
1 . 8 "Credit" means the commitment of the Bank
described in Section 2 . 1 .
1. 9 "Credit Agreement" means that certain Credit
Agreement, dated as of April 28, 1983, between Borrower and
the Bank.
000306
1 . 10 "Defeasance Agreement" means the Fiscal Agent
and Defeasance Agreement, dated as of February 16, 1984,
between the Borrower and BankAmerica Trust Company of New
York.
1 . 11 "Documents" means this Agreement, the
Series -B Notes, the Resolution, the Contract of Purchase, the
the Defeasance Agreement and the Fiscal Agent Agreement.
1 . 12 "Event of Default" means any event listed in
Article 6.
1 . 13 "Fiscal Agent" means BankAmerica Trust
Company of New York.
1 . 14 "Fiscal Agent Agreement" means the Fiscal
Agent Agreement, dated February 16, 1984, by and between the
County and the Fiscal Agent in the form of Exhibit D hereto;
1 . 15 "Issue Date" means the date on which Borrower
issues and sells Series B Notes pursuant to the Contract of
Purchase.
1 . 16 "Prime Rate" means that rate which from time
to time is announced by Bank as its prime rate, with any
change in such prime rate to take effect at the opening of
business on the day specified in the public announcement of a
change in such prime rate.
1 . 17 "Resolution" means the resolution of the
Board of Supervisors of the Borrower relating to the Series B
Notes and this Agreement, adopted February 14, 1984.
1 . 18 "Revenues" means all unrestricted taxes,
income, revenue, cash receipts and other moneys to be
received by the Borrower attributable to the fiscal year
1983-1984, and lawfully available for payment of the Series B
Notes.
1 . 19 "Series B Notes" means the $37, 000, 000
principal amount of 1983-1984 Tax and Revenue Anticipation
Notes, Series B, authorized by the Resolution.
1 .20 "Term Date" means July 16, 1984.
2 . Note Purchase Commitment
2 . 1 Commitment. (a) Subject to the terms and
conditions in this Agreement, and in reliance upon the
representations, warranties and covenants of the Borrower,
2
000307 ;
the Bank agrees to purchase on the Availability Date Series B
Notes from the holders thereof in the event the same are
tendered for redemption in accordance with the Resolution.
The maximum amount of the Advance for such purchase, which
shall be a single Advance, shall be $37, 000, 000, subject to
reduction in accordance with Section 2 .4(b) , and shall be
used to pay the principal amount of Series B Notes so
purchased, but not interest thereon. Notwithstanding the
provisions of the Series B Notes, the amount to be paid by
the Borrower, as interest on the Series B Notes, during the
period that the Bank holds such Notes, shall be 72% of the
Prime Rate, computed on the basis of a 360-day year and
actual days elapsed, until paid in full, subject to a maximum
interest rate of 12% per annum.
2 . 2 Advance. The Advance shall be made on the
Availability Date upon the written request of Borrower signed
by an Authorized Officer and received by Bank not later than
9 : 00 a.m. , Contra Costa County time, on the Availability
Date, specifying the date and the amount of the Advance;
provided that an Advance may be made on the Availability Date
upon receipt by the Bank of a verbal request therefor if
(i ) such request is made at or prior to 9 : 00 a.m. , Contra
Costa County time, on the Availability Date (ii ) if the
Authorized Officer making such request is a Treasurer or
Deputy Treasurer of Borrower and states that the statements
in paragraph (b) of Section 3 .2 are true and correct at and
as of the time of such request and (iii ) by 10: 00 a.m. ,
Contra Costa County time, on the Availability Date the
documents contemplated by paragraph (a) of Section 3 .2 and
(b) of Section 3 . 2 are delivered to the Bank.
2 . 3 Settlements.
(a) The Advance shall be made at the office of the
Fiscal Agent, 40 Broad Street, New York, New York, in United
States currency and in immediately available funds against
delivery to the Bank at the office of the Fiscal Agent of the
Series B Notes to be purchased by the Bank.
(b) Payment of all sums due from the Borrower
under this Agreement shall be made in United States currency
and in immediately available funds . Each payment by Borrower
shall be made, without setoff or counterclaim, not later than
3 : 00 p.m. Contra Costa County time, on the day such payment
is due . All sums received after such time shall be deemed
received as of the next business day.
2 . 4 Commitment Fee and Reduction of Available
Credit. (a) Borrower shall pay to the Bank a commitment fee
equal to five-eighths of one percent (5/8%) per annum
3
000303
(computed quarterly on the basis of a 360 day year and actual
days elapsed) on the average daily unused portion of the
Credit.
(b) The Credit shall be automatically and
irrevocably reduced from time to time in each instance by an
amount equal to the deposit or deposits made by Borrower to
the Repayment Fund held by the Fiscal Agent pursuant to
Section 18 of the Resolution. However, the amount of the
Advance on the Availability Date shall be rounded upward to
the nearest integral multiple of $100, 000. If necessary, the
commitment fee will be recalculated to give effect to such
rounding as if such amount had been available throughout the
Availability Period. After any such reduction, the
computation of the commitment fee and the Bank' s obligations
hereunder shall be based upon the Credit as so reduced.
Borrower shall promptly give notice to the Bank and the
purchaser named in the Contract of Purchase of the amount of,
and date of, moneys actually set aside as contemplated above.
(c) The commitment fee shall be computed as of the
end of each calendar quarter during the Availability Period
and shall be paid to the Bank in immediately available funds
on the fifth business day following each such calendar
quarter, except the last such payment which shall be made on
July 16, 1984. Commitment fee payments not made when due
shall bear interest at the Prime Rate, to the extent
permitted by law.
3 . Conditions Precedent.
3 . 1 To Obligations Under Agreement. The
obligation of the Bank to purchase Series B Notes is subject
to the condition precedent that, on the Closing Date, there
shall have been delivered to the Bank, in form and substance
satisfactory to the Bank:
( a) An opinion, dated the Closing Date, of the
County Counsel of the County of Contra Costa, substantially
in the form of Exhibit A hereto;
(b) An opinion, dated the Closing Date, of Orrick,
Herrington & Sutcliffe, A Professional Corporation, Bond
Counsel, substantially in the form of Exhibit B hereto;
(c ) A copy of the Resolution, certified by the
Clerk or a Deputy Clerk of Borrower as being in full force
and effect on the Closing Date;
(d) A certificate of the Clerk of the Borrower
dated the Closing Date to the effect that the Resolution
4
000309
referred to in (c) above as of the Closing Date has not been
amended or modified;
(e) A certificate, signed by the Clerk or a Deputy
Clerk of Borrower and dated the Closing Date, as to the
incumbency, and containing the specimen signature or
signatures, of the Authorized Officer or Officers executing
and delivering this Agreement and any instrument or other
document to be delivered pursuant to this Agreement on behalf
of Borrower;
( f) Evidence satisfactory to the Bank that (i )
Borrower has sold all Series B Notes at par; (ii ) all of the
proceeds thereof plus $275, 000 of moneys from the Borrower' s
General Fund have been deposited pursuant to The Defeasance ,
Agreement; (iii ) an amount equal to interest payable on all
Series B Notes has been deposited by Borrower with the Fiscal
Agent to be held in the Interest Account of the Repayment
Fund under the Fiscal Agent Agreement; and (iv) the
conditions precedent to the Purchaser' s obligation under the
Contract of Purchase, as set forth in Section 7 thereof, have
been fully satisfied and have not been waived by the
Purchaser;
(g) A certificate of the County Counsel, dated the
Closing Date, to the effect that there is no litigation then
pending, or, to the knowledge of such County Counsel,
threatened relating to the validity of this Agreement or the
Series B Notes;
(h) one executed copy each of the Contract of
Purchase, the Defeasance Agreement, and the Fiscal Agent
Agreement; and
( i ) Such additional documents as the Bank may
reasonably request to evidence compliance by the Borrower
with legal requirements, the truth and accuracy, as of the
Closing Date, of the representations of the Borrower herein
contained and the due performance or satisfaction by the
Borrower at or prior to the Closing Date of all agreements
then to be performed and all conditions then to be satisfied
by the Borrower.
3 .2 To Making an Advance. The obligation of the
Bank to make the Advance on the Availability Date is subject
to the conditions that:
(a) By 8: 30 a.m. , Contra Costa County time, on the
Availability Date there shall have been delivered to the Bank
at the Bank' s Office in form and substance satisfactory to
the Bank:
5
000310
( i ) A Certificate and Purchase Request, dated
the Availability Date, substantially in the form of
Exhibit C hereto (a "purchase request" ) which shall be
for an amount not greater than the amount sought
pursuant to the written request for the Advance
contemplated by Section 2 .2(a) ; and
(ii ) An opinion, dated the Availability Date,
of Bond Counsel, reconfirming the opinions contained in
Exhibit B hereto.
(b) As of 8: 30 a.m. , Contra Costa County time, on
the Availability Date the following statements shall be true
and correct and by such time the Bank shall have received a
certificate signed by an Authorized Officer of Borrower,
dated as of the Availability Date, representing and
warranting that:
( i ) no event has occurred and is continuing,
or would result from such disbursement, which
constitutes an Event of Default or would constitute an
Event of Default but for the requirements that notice be
given or time elapse or both;
(ii ) the representations and warranties of
Borrower set forth in Sections 4. 1 to 4. 6 are true and
correct on the date of the Availability Date as though
made on and as of such date;
( iii ) the Resolution is in full force and
effect with no amendment or modification; and
( iv) The amount of the requested advance is
equal to the aggregate principal amount of Series B
Notes for which there are not funds in the Repayment
Fund or an amount equal to the difference between the
amount in the Repayment Fund, as defined in the
Resolution and the principal amount of Series B Notes.
(c ) The Bank shall receive evidence satisfactory
to it that all Series B Notes have been tendered to the
Fiscal Agent for payment and the Bank shall receive,
concurrently with the Advance, the Series B Notes to be
purchased by the Bank.
4. Representations and Warranties
Borrower represents and warrants that:
4. 1 Organization. Borrower is a political
subdivision of the State of California duly organized and
validly existing under the laws thereof, and has all
6
000311
requisite power and authority to conduct its business and to
execute, deliver and perform all of its obligations under the
Documents to which it is or is to. be a. party..
4.2 Due Execution.. The execution, delivery and
performance by Borrower of the Documents have been duly
authorized and do not: and will not (i ) violate any provision
of any law, rule, regulation, order, writ, judgment,
injunction, decree, determination or award presently . in
effect having applicability to Borrower, or (ii ) result in a
breach of or constitute a default under any resolution of
Borrower or any indenture or ' ioan or credit agreement or any
other agreement., 19ase or instrument to which Borrower is a
party or by which Borrower or its properties may be bound or
affected; and Borrower is not in violation of or in default
under az;y--such - law; rule, regulation, order, writ, judgment,
injunction, decree, determination or award or any such
indenture, a,greer e:nt, lease or instrument material to its
operation.
4.3 Consents. No authorization, consent,
approval, license, exemption of or registration with any
court or governmental department, commission, board, bureau,
agency or instrumentality, domestic or foreign, which has
not been obtained, will be necessary for the valid execution,
delivery and performance by Borrower of any of the Documents
to which it is or is to be a party.
4. 4 Incurrence and Parity. All Series B Notes
will be issued under and within the limits of Article 7 . 6,
Chapter 4, Part 1, Division 2, Title 5 of the Government Code
of the State of California (the "Law" ) and will be on a
parity with each other.
4. 5 Binding Obligations. This Agreement and each
of the other Documents to which Borrower is or is to be a
party constitute legal, valid and binding obligations of
Borrower, and the pledge of Revenue described in Section 5. 8
constitutes a valid pledge of, and the placement of a valid
lien on, the Pledged Moneys (as defined below) , and the
deposit of $37, 275, 000 in the Payment Fund under the
Defeasance Agreement constitutes the creation of a valid
trust for payment of the "Negotiable Notes" and "Notes" as
defined in the Credit Agreement, enforceable against Borrower
in accordance with their respective terms, except as they may
be limited by applicable bankruptcy, insolvency,
reorganization or similar laws affecting the enforcement of
creditors ' rights generally.
7
000312
4. 6 Regulations U and X. Borrower is not engaged
in the business of extending credit for the purpose of
purchasing or carrying margin stock (within the meaning of
Regulation U or X of the Board of Governors of the Federal
Reserve System) .
4. 7 Financial Statements; Other Documents.
Borrower. has heretofore furnished to Bank its audited
financial statements for fiscal year 1982-1983 . Such
financial statements were prepared in accordance with
generally accepted accounting principles consistently
applied, are complete and correct and present fairly the
financial condition of Borrower for the period indicated.
Borrower has also furnished to Bank of a cash flow statement
of the General Fund of Borrower for fiscal year 1983-1984
containing actual results through December 1983 and
projections through the balance of the year, together with
seven specific assumptions, and a copy of Findings and
Recommendations regarding Health Services Department, dated
January 31, 1984, from Arthur Young & Company to the Board of
Supervisors of Borrower.
5 . Covenants
5. 1 Punctual Payment. Borrower will punctually
pay or cause to be paid out of Revenues the principal and
interest to become due under the Series B Notes in strict
conformity with the terms of the Documents, and it will
faithfully observe and perform all of the conditions,
covenants and requirements of the Documents .
5 . 2 Other Indebtedness and Liens. Borrower will
not incur any general obligation indebtedness or any other
indebtedness for money borrowed which may must be repaid
from Revenues, except ( a) Negotiable Notes and Notes,
(b) $27, 000, 000 in principal amount of 1983-1984 Tax and
Revenue Anticipation Notes dated July 12, 1983 ; and (c) the
Series B Notes. Borrower will not make any temporary
transfers of funds, pursuant to Article XVI , §6 of the
Constitution .of the State of California to meet any
obligations of Borrower during the 1983-1984 fiscal year.
Borrower will not grant any consensual liens, encumbrances or
charges upon Revenues except those created or provided for
prior to the date hereof or which arise under this Agreement.
5 . 3 Notices. Borrower will promptly give written
notice to the Bank of the occurrence of any Event of Default
or any event which, upon a lapse of time or notice or both,
would become an Event of Default. Borrower will promptly
give written notice to the Bank of any information obtained
by Borrower regarding pending, proposed or completed action
8
000313
by the United States government or any of its agencies or
instrumentalities or by the government of the State of
California or any of its agencies or instrumentalities which,
in the reasonable judgment of Borrower, could result in a
reduction in Available Funds of the Borrower as defined in
the Adopted Budget of Borrower for fiscal 1983-1984 delivered
to the Bank by ten percent (10%) or more below those shown in
the Adopted Budget and further will promptly give notice to
the Bank of any pending or threatened litigation which, in
the reasonable opinion of Borrower, could materially
adversely affect the ability of Borrower to repay any
indebtedness incurred under this Agreement.
5 . 4 Accounting Records. Borrower will maintain
adequate books, accounts and records in accordance with
generally accepted accounting principles and practices
consistently applied, and permit employees or agents of the
Bank at any reasonable time to examine or audit its books,
accounts and records and make copies and memoranda thereof.
5 . 5 Financial Statements; Other Documents.
Borrower will deliver to the Bank in form and detail
satisfactory to the Bank:
( a) As soon as available, but no later than
forty-five days after the end of each calendar month, a
General Fund cumulative cash flow statement which shall
contain actual monthly results for the fiscal year to the end
of such month and estimated monthly results for the balance
of the fiscal year;
(b) All documents, certificates and other written
information provided by Borrower to any securities dealer as
and when so provided; and
(c ) Such other existing statements, budgets,
forecasts or reports as the Bank may reasonably request.
5 . 6 Documents. Borrower will not modify or amend
the Documents without the prior written consent of the Bank.
5 . 7 Payment of- Indebtedness . Borrower will
promptly pay, when due, all principal of and interest on
indebtedness permitted under Section 5 .2 .
5. 8 Pledge of Revenues. Subject to prior rights
of the holders of Negotiable Notes and Notes, the Borrower
has pledged, as security for the Series B Notes, and the
Treasurer of Borrower has deposited in the Interest Account
9
000314
of the Repayment Fund, as defined below, the sum of $976, 389
from Borrower' s General Fund, and has been directed and
instructed to deposit in the Repayment Fund, at intervals of
at least every three business days, the first $37, 000, 000 of
the second installment of secured property taxes for fiscal
year 1983-1984. In the event that by April 16, 1984 there
have been insufficient such property taxes received by
Borrower to permit deposit with the Fiscal Agent pursuant to
the Fiscal Agent Agreement hereinafter referred to, of the
full amount to be so deposited, then any deficiency shall
then be satisfied and made up and deposited with the Fiscal
Agent from any other monies of Borrower lawfully available
for the payment of the Series B Notes, and interest thereon.
In the event that Borrower does not have sufficient other
monies available to permit the deposit of the full amount of
the pledge by April 16, 1984, then any deficiency shall be
made up from the first monies received thereafter and
lawfully available for the payment of the Series B Notes,
subject, however, to any prior rights of the holders of
Negotiable Notes and Notes. Borrower has established with
the Fiscal Agent the Series B Notes Repayment Fund (the
"Repayment Fund" ) by execution and delivery of the Fiscal
Agent Agreement. Moneys deposited in the Repayment Fund are
herein sometimes referred to as the "Pledged Moneys. "
Subject to the prior rights of holders of Negotiable Notes
and Notes, Pledged Moneys shall be used to pay Series B Notes
as they become due and may not be used for any other purpose
subject to the further limitation that moneys in the Interest
Account of the Repayment Fund shall be used solely for the
purpose of paying interest on the Series B Notes. After such
interest has been fully paid such moneys may be utilized for
any other purpose for which the Repayment Fund may be
utilized. Each Series B Note shall be secured by the Pledged
Moneys ratably according to the amount of principal and
interest due thereon.
5 .9 Additional Lien. To the extent permitted by
law, Borrower hereby grants to the Bank a continuing lien for
all indebtedness of Borrower to the Bank upon any and all
moneys, securities and other property of Borrower and the
proceeds thereof now or hereafter held or received by or in
transit to the Bank, whether for safekeeping, custody,
pledge, transmission, collection or otherwise, and also upon
any and all deposits (general or special) and credits of
Borrower with, and any and all claims of Borrower against the
Bank, except money, securities and other property (a) held
for safekeeping or otherwise held by Borrower for the benefit
of other public agencies or districts., (b) pledged to others
prior to the date of this Agreement or, (c) designated or set
aside for the payment of principal of or interest on the
indebtedness described in clauses (a) and (b) of
Section 5 .2 . Upon the occurrence of any Event of. Default,
10
000315
the Bank is hereby authorized at any time and from time to
time, without notice to Borrower, to set-off, appropriate and
apply any or all items hereinabove referred to against all
indebtedness of Borrower to the Bank, whether under this
Agreement, the Series B Notes or otherwise, and whether now
existing or hereafter arising.
5 . 10 Change of Fiscal Agent. Borrower will
promptly notify the Bank of any change in the identity of the
Fiscal Agent.
5 . 11 No Unauthorized Publicity. Borrower will make
no public advertisement or announcement relating to this
Agreement without prior written authorization of the Bank.
Nothing herein shall preclude the describing of this
Agreement or the providing of a copy hereof to any purchaser
of Series B Notes or otherwise in connection with the
offering or sale from time to time of the Series B Notes.
5 . 12 Use of Proceeds of Series B -Notes; No New
Refundings. Borrower covenants that all of the proceeds of
the Series B Notes plus $275, 000 from Borrower' s General Fund
is being deposited under the Defeasance Agreement to be held
in trust for the sole purpose of paying the Negotiable Notes
and Notes, if any, as the same mature. Borrower agrees that
it will not issue any additional Negotiable Notes and
warrants and represents that the schedule attached hereto as
Exhibit E reflects the current maturities of all Negotiable
Notes now outstanding and that all of said Negotiable Notes
will be repaid in full as they mature.
6. Events of Default
If one or more of the following events shall
happen, that is to say:
6 . 1 if any representation or warranty made by
Borrower in this Agreement or in any certificate, agreement,
instrument or statement delivered pursuant to this Agreement
proves in any material respect to have been incorrect or
misleading when made;
6. 2 if Borrower shall file any petition or action
for relief under any bankruptcy, reorganization, insolvency
or moratorium law, or any other law or laws for the relief
of, or relating to, debtors; or
6. 3 if an involuntary petition shall be filed
under any bankruptcy statute against Borrower, or a
custodian, receiver, trustee, assignee for the benefit of
creditors (or other similar official) shall be appointed to
11
000316
take possession, custody, or control of the properties of
Borrower, unless such petition or appointment is set aside or
withdrawn or ceases to be in effect within thirty (30) days
from the date of said filing or appointment;
then the Bank may by notice to Borrower declare the
obligations of the Bank to make an Advance to be terminated,
whereupon the same shall immediately terminate.
7 . Miscellaneous
7 . 1 No Waiver; Cumulative Remedies. No failure or
delay on the part of the Bank or any other holder of any
Series B Note in exercising any right, power or remedy under
any of the Documents shall operate as a waiver thereof; nor
shall any single or partial exercise of any such right, power
or remedy preclude any other or further exercise thereof or
the exercise of any other right, power or remedy hereunder or
under any of the Documents. The remedies herein and in the
other Documents provided are cumulative and are not exclusive
of any remedies provided by law or in equity.
7 .2 Addresses for Notices, etc. All notices,
requests, demands, directions and other communications
provided for under the Loan Documents to be in writing shall
be mailed or otherwise sent or delivered to the applicable
party at the addresses indicated below.
If to Borrower: Treasurer of the County of Contra Costa
Finance Building
625 Court Street
Martinez, California 94533
If to the Bank: Wells Fargo Bank, N.A.
Funding Group/Public Finance No. 1380
420 Montgomery Street
San Francisco, California 94163
Attention: Reba Bernou
or, as to each party, at such other address as shall be
designated by such party in a written notice to the other
parties. Notices shall be deemed given on the date delivered
by hand or, if mailed, on the date five business days
following their deposit, first class postage prepaid, in the
United States mail .
7 . 3 Costs and Expenses. Borrower agrees to pay
all the expenses of the Bank under and in connection with the
preparation of this Agreement, including the fees and
expenses of counsel employed or retained by it. If there is
litigation involving any party hereto resulting from an
alleged failure of such party to comply with such party' s
12
0.00317
i
obligations under this Agreement or under any of the other
Loan Documents, and it is determined in such litigation that
such party did so fail to comply, such party will pay on
demand all legal fees and other costs and expenses, if any,
incurred by the other parties hereto in connection
therewith. Further, Borrower agrees to pay to the Bank, on
demand, all costs and expenses reasonably and necessarily
incurred by the Bank in connection with any refinancing or
restructuring of the credit arrangements hereunder in the
nature of a "work-out" , including the fees and expenses of
the counsel retained by the Bank. This Section 7 . 3 shall
survive termination of this Agreement.
7 . 4 Execution in Counterparts. This Agreement and
the other Documents may be executed in any number of
counterparts and by different parties hereto, or thereto, in
separate counterparts, each of which when so executed and
delivered shall be deemed to be an original and all of which
taken together, shall constitute but one and the same
instrument.
7 . 5 Binding Effect; Assignment. This Agreement
shall be binding upon and inure to the benefit of Borrower,
the Bank and their respective successors and assigns, except
that Borrower shall not have the right to assign its rights
hereunder or any interest herein without the prior written
approval of the Bank.
7 . 6 Participation. Without relieving it of its
commitment hereunder, the Bank may at any time sell, assign,
grant participations in, or otherwise transfer to any other
bank or other institutional lender all or part of its
obligations under this Agreement.
7 . 7 Consent and Waiver; Amendments . By execution
hereof the Bank hereby consents to all the transactions
contemplated by the Documents, to the extent that any of such
transactions may violate any of the covenants of Borrower
contained in the Credit Agreement, and waives compliance by
the Borrower with such covenants with respect to any such
transaction. This Agreement may not be amended, modified or
terminated except with the written consent of the holders of
all of the Series B Notes . Notwithstanding anything to the
contrary contained in the Credit Agreement, the maximum
amount of borrowing limits thereunder shall be reduced
concurrently with the payment of the Negotiable Notes in
accordance with the schedule reflected in Exhibit E and the
Credit Agreement shall terminate (except Sections 2 . 5 and 8. 3
thereof) in its entirety upon payment in full of such
Negotiable Notes (and any and all Notes which may be
outstanding) , and the commitment fee payable by Borrower to
Bank thereunder shall be computed on the basis of such
reduced maximum limits.
13
000313
7 . 8 Governing Law. The Documents shall be
governed by, and construed in accordance with, the laws of
the State of California.
7. 9 Severability of Provisions. Any provision of
this Agreement, or any of the other Documents, which is
prohibited or unenforceable in any jurisdiction shall, as to
such jurisdiction, be ineffective to the extent of such
prohibition or unenforceability without invalidating the
remaining provisions hereof, or thereof, or affecting the
validity or enforceability of such provision in any other
jurisdiction.
7 . 10 Headings. Article and paragraph headings in
this Agreement, and in the other Documents, are included
herein, and therein, for convenience of reference only and
shall not constitute a part of this Agreement, or of the
other Documents for any other purpose.
7 . 11 Computations. All financial computations
required under this Agreement shall be made, and all
financial information required under this Agreement shall be
prepared, in accordance with generally accepted accounting
principles and practices consistently applied to the extent
applicable.
IN WITNESS WHEREOF, the parties hereto have
executed this Agreement by their duly authorized officers as
of the day and year first above written.
COUNTY OF CONTRA COSTA
By
Title:
WELLS FARGO BANK, N.A.
By
Title:
14
000319.. .
EXHIBIT A
FORM OF OPINION OF COUNTY COUNSEL
Gentlemen:
In accordance with the requirements of Section
3 . 1(a) of the Note Purchase Agreement dated as of
February 15, 1984, entered into by and between the County of
Contra Costa and the Wells Fargo Bank, N.A. , I am rendering
my legal opinion as set forth below.
In forming this opinion, I have examined and relied
upon the Agreement, the Documents defined in Paragraph 1 . 11
thereof, and such other materials as in our judgment were
necessary to enable me to render the opinion expressed
herein. Based upon the foregoing, and solely with regard to
California law, I am of the opinion that:
1 . The County is a political subdivision duly
organized and validly existing under the laws of the State of
California, and has the power and authority to conduct its
business, to execute and deliver, and to perform all of its
obligations under the Documents. No authorization, consent
or approval of any court or governmental agency which has not
been obtained is necessary for such execution, delivery or
performance .
2 . The execution, delivery and performance of the
Documents by the County have been duly authorized, and (i ) do
not violate any provisions of the Constitution or laws of the
State of California, or of any court order presently in
effect having applicability to the County, (ii ) do not result
in a breach of or ,constitute a default under any indenture,
or loan or credit agreement, to which the County is a party,
and (iii ) do not result in the creation or imposition of any
lien or encumbrance, other than those imposed in the
Documents, upon the Revenues defined in the Agreement.
3 . The Agreement and each of the Documents to
which the County is or is to be a party pursuant to the
Agreement when duly executed and delivered constitute legally
valid and binding obligations of the County, enforceable
against the County in accordance with their respective terms .
With respect to the opinions I have expressed, the
rights and obligations under the Documents are subject to
bankruptcy, insolvency and other laws affecting the
enforcement of creditors' rights in general, and to the
0003?0 :.
application of equitable principles if equitable remedies are
judicially sought.
County Counsel
By
Deputy
2
000321
•
EXHIBIT C
COUNTY OF CONTRA COSTA
CERTIFICATE AND PURCHASE REQUEST
TO: Wells Fargo Bank, N.A.
Attention:
Reference is made to the Note Purchase Agreement
(the "Agreement" ) dated as of February 15, 1984, between the
County of Contra Costa ( "Borrower" ) and Wells Fargo Bank,
N.A. (the "Bank" ) . Unless otherwise specified herein, the
terms used herein which are defined in the Agreement have the
meanings assigned therein.
1 . The undersigned is an Authorized Officer of
Borrower.
2 . The Borrower hereby requests purchase by the
Bank on the Availability Date of Series B Notes as follows:
SERIAL NO. PRINCIPAL AMOUNT
Such Series B Notes will be delivered to the issuing and
paying agent for the Series B Notes, at or prior to the time
of the foregoing Advance .
3 . The undersigned hereby represents, for and on
behalf of Borrower, that an Election Notice as to all of the
Series B Notes has been filed with the Fiscal Agent and that
Series B Notes, in the hands of the Bank, will be valid and
enforceable obligations of the Borrower according to their
terms and the terms of the Agreement.
4. The undersigned hereby certifies, for and on
behalf of Borrower, that:
(a) No event has occurred and is continuing,
which constitutes an Event of Default or would constitute an
Event of Default but for the requirement that notice be given
or time elapsed or both;
000322
(b) The representations and warranties of
Borrower set forth in Sections 4. 1 to 4. 6 of the Agreement
were true and correct on the date made and are true and
correct on and as of this date;
(c) The Resolution is in full force and
effect and has not been amended or modified; and
(d) The amount of the requested Advance does
not exceed the difference between $37,000, 000 and the
principal amount of notes which could be purchased in full
with proceeds of funds deposited in the Repayment Fund in
accordance with Section 5 . 8 of the Agreement.
DATED: July 1984
COUNTY OF CONTRA COSTA
By
Authorized Officer
2
000323,
EXHIBIT C
COUNTY OF CONTRA COSTA
CERTIFICATE AND PURCHASE REQUEST
TO: Wells Fargo Bank, N.A.
Attention:
Reference is made to the Note Purchase Agreement
(the "Agreement" ) dated as of February 15, 1984, between the
County of Contra Costa ( "Borrower" ) and Wells Fargo Bank,
N.A. (the "Bank" ) . Unless otherwise specified herein, the
terms used herein which are defined in the Agreement have the
meanings assigned therein.
1 . The undersigned is an Authorized Officer of
Borrower.
2 . The Borrower hereby requests purchase by the
Bank on the Availability Date of Series B Notes as follows:
SERIAL NO. PRINCIPAL AMOUNT
Such Series B Notes will be delivered to the issuing and
paying agent for the Series B Notes, at or prior to the time
of the foregoing Advance .
3 . The undersigned hereby represents, for and on
behalf of Borrower, that an Election Notice as to all of the
Series B Notes has been filed with the Fiscal Agent and that
Series B Notes, in the hands of the Bank, will be valid and
enforceable obligations of the Borrower according to their
terms and the terms of the Agreement.
4. The undersigned hereby certifies, for and on
behalf of Borrower, that:
(a) No event has occurred and is continuing,
which constitutes an Event of Default or would constitute an
Event of Default but for the requirement that notice be given
or time elapsed or both;
i
I
000324
(b) The representations and warranties of
Borrower set forth in Sections 4. 1 to 4. 6 of the Agreement
were true and correct on the date made and are true and
correct on and as of this date;
(c) The Resolution is in full force and
effect and has not been amended or modified; and
(d) The amount of the requested Advance does
not exceed the difference between $37,000, 000 and the
principal amount of notes which could be purchased in full
with proceeds of funds deposited in the Repayment Fund in
accordance with Section 5. 8 of the Agreement.
DATED: July 1984
COUNTY OF CONTRA COSTA
By
Authorized Officer
2
000325