HomeMy WebLinkAboutMINUTES - 06222010 - SD.5RECOMMENDATION(S):
CONDUCT a public hearing, as required by Section 147(f) of the Internal Revenue Code of
1986, as amended, to hear and consider information concerning the proposed issuance by
the California Enterprise Development Authority of bonds in an aggregate principal amount
not to exceed $8,500,000; and
ADOPT Resolution No. 2010/353, approving tax-exempt financing and issuance of bonds
by the California Enterprise Development Authority to benefit Seven Hills School (Walnut
Creek area).
FISCAL IMPACT:
Pursuant to the Internal Revenue Code, the issuance of the Bonds must be approved by the
County because the Facilities are located within the territorial limits of the County. There is
no financial impact on the County.
BACKGROUND:
Seven Hills School,
APPROVE OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
Action of Board On: 06/22/2010 APPROVED AS RECOMMENDED OTHER
Clerks Notes:
VOTE OF SUPERVISORS
AYE:John Gioia, District I
Supervisor
Gayle B. Uilkema, District II
Supervisor
Mary N. Piepho, District III
Supervisor
Federal D. Glover, District V
Supervisor
ABSENT:Susan A. Bonilla, District IV
Supervisor
Contact: Tim Ewell (925) 335-1036
I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the
Board of Supervisors on the date shown.
ATTESTED: June 22, 2010
David J. Twa, County Administrator and Clerk of the Board of Supervisors
By: June McHuen, Deputy
cc: L. DRISCOLL - COUNTY ADMINISTRATOR'S OFFICE, S. BALISY, KUTAK ROCK LLP, M. DMITRENKO, CALIFORNIA ENTERPRISE
DEVELOPMENT AUTHORITY
SD. 5
To:Board of Supervisors
From:David Twa, County Administrator
Date:June 22, 2010
Contra
Costa
County
Subject:TEFRA HEARING - SEVEN HILLS SCHOOL
BACKGROUND: (CONT'D)
a California not-for-profit corporation, located at 975 North San Carlos Drive, Walnut
Creek, California 94598 has requested that the California Enterprise Development
Authority (the "CEDA") participate in the issuance of bonds, in an aggregate principal
amount not to exceed $8,500,000 (the "Bonds").
A portion of such Bond proceeds is intended to finance the following: (i) refinance the
outstanding California Statewide Communities Development Authority Revenue Bonds
(The Seven Hills School), Series 2001, the proceeds of which were used to acquire,
construct, rehabilitate, equip and furnish educational facilities (the “Series 2001 Project”)
located at 975 North San Carlos Drive, Walnut Creek, California 94598 (the “Property”),
(ii) finance the costs of additional acquisition, construction, rehabilitation, equipping and
furnishing of the educational facilities on the Property, including, but not limited to, five
new classrooms, a 140 seat small theatre and adjacent green room and faculty offices (the
“Series 2010 Project” and, together with the Series 2001 Project, the “Facilities”), and
(iii) pay certain costs of issuance in connection with the financing.
In order for the interest on the bonds to be excluded from the gross income of the owner
of the bonds (i.e. tax-exempt), an "applicable elected representative" of the government
unit must approve the issuance of the bonds after a public hearing ("TEFRA hearing")
following reasonable public notice. The proposed bond issuance by the CEDA is
classified as a private activity for purposes of the Internal Revenue Code. Because the
CEDA's Board of Directors is not an elected body, the Code provides that a government
unit with elected representatives and jurisdiction over the area in which the project to be
financed is located, in this case, the Board of Supervisors of Contra Costa County, is an
"applicable elected representative" with respect to the bond issue.
The Code requires that the Board of Supervisors hold a TEFRA public hearing regarding
the issuance of the bonds and adopts a resolution approving the issuance of the bonds by
the CEDA. Staff recommends that the Board of Supervisors hold the public hearing,
consider public input, and adopt the resolution regarding the issuance of the bonds. This
approval is with the expressed understanding that the County shall have no obligation
whatsoever to pay any principal, interest, fees or any other costs associated with the
Authority's issuance of these bonds for construction of improvements at the Seven Hills
School.
CLERK'S ADDENDUM
CLOSED the hearing; and ADOPTED Resolution No. 2010/353 approving approving
tax-exempt financing and issuance of bonds by the California Enterprise Development
Authority to benefit Seven Hills School (Walnut Creek area).
ATTACHMENTS
Resolution No. 2010/353