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HomeMy WebLinkAboutMINUTES - 10131987 - 1.55 1-USS BOARD OF SUPERVISORS COUNTY OF CONTRA COSTA, CALIFORNIA RESOLUTION NO. 87/614 RESOLUTION OF THE BOARD OF SUPERVISORS OF THE COUNTY OF CONTRA COSTA PROVIDING FOR THE BORROWING OF FUNDS FOR FISCAL YEAR 1987-1988 AND THE ISSUANCE AND SALE OF 1987 TAX AND REVENUE ANTICIPATION NOTES FOR THE CONTRA COSTA COMMUNITY COLLEGE DISTRICT WHEREAS, pursuant to Sections 53850 to 53858, both inclusive, of the Government Code of the State of California (herein called the "Code" ) (being Article 7.6, Chapter 4, Part 1, Division 2, Title 5 of said Code) , the Governing Bcard of Contra Costa Community College District (herein called the "District") has filed with this Board of Supervisors (herein called the "Board" ) a resolution requesting that the Board borrow money for the District by the authorization, issuance and sale of up to Five Million Dollars ($5,000,000) principal amount of 1987 Tax .and Revenue Anticipation Notes of the District in anticipation of the receipt of taxes, income, revenue, cash receipts and other moneys to be received by the District for the General Fund of the District during or attributable to Fiscal Year 1987-1988; and WHEREAS, the Governing Board of the District has found and determined that the sum of Five Million Dollars ($5,000,000) , when added to the interest payable thereon, does 7554f RESOLUTION NO . 87/614 not exceed eighty-five per cent (85%) of the estimated amount of the- uncollected taxes, income, revenue, cash receipts and other moneys to be received by the District for the General Fund of the District during or attributable to Fiscal Year 1987-1988 and available for the payment of the principal of and the interest on said notes; and WHEREAS, the County intends to borrow, for and in the name of the District for the purposes set forth above, Five. Million Dollars ($5,000,000) by the issuance of said notes; and WHEREAS, pursuant to Section 53856 of the Code, certain moneys which will be received by the District for the General Fund of the District during or attributable to Fiscal Year 1987-1988 can be pledged for the payment of the principal of and the - interest on said, notes (as hereinafter provided) ; and . WHEREAS, Bank of America National Trust and Savings Association (herein called the "Underwriter") intends to submit an offer to purchase said notes and has submitted a form of Note Purchase Agreement (herein called the "Purchase Agreement") to the Board, which form has been approved by the District; NOW, THEREFORE, the Board of Supervisors of the County of Contra Costa hereby resolves as follows: Section 1. All the above recitals are true and correct and this Board so finds, determines and represents. 2 7554f Section 2. Solely for the purpose of anticipating taxes, income, revenue, cash receipts and other moneys to be received by the District for the General Fund of the District during or attributable to Fiscal Year 1987-1988, and not . pursuant to any common plan of financing, the County hereby determines to and shall issue (for and on behalf of the District) Five Million Dollars ($5,000,000) principal amount of temporary notes under Sections 53850 et sec . of the Code, designated "Contra Costa Community College District 1987 Tax and Revenue Anticipation Notes" (herein called the "Notes" ) , to be numbered from one consecutively upward in order of issuance, to be in the denomination of twenty-five thousand dollars ($25,000) , to be dated October 15, 1987, to mature (without option of prior redemption) on September 30, 1988, and to bear interest, payable at maturity and computed upon the basis of a 360-day year consisting of twelve 30-day months, at a rate not to exceed 12% per annum, as. determined by the Treasurer-Tax Collector of the County (herein called the "County Treasurer") with the approval of the District, in accordance with the Purchase Agreement. Both the principal of and interest on the Notes shall be payable, but only upon surrender thereof, in lawful money of the United States of America at the principal office of Bank of America National Trust and Savings Association in San Francisco, California. Section 3. The Notes shall be issued without coupons and shall be substantially in the form and substance 3 7554f set forth in Exhibit A attached hereto and by reference incorporated herein, the blanks in said form to be filled in with appropriate words or figures. . Section 4. The moneys so borrowed shall be deposited in the General Fund of the District. Section S. (A) The principal amount of the Notes, together with the interest thereon, shall be payable from taxes, income, revenue, cash receipts and other moneys which are received by the District for the General Fund of the District during or attributable to Fiscal Year 1987-1988 and which are available for payment thereof. As security for the payment of the principal of and interest on the Notes, the County (for and on behalf of the District) hereby pledges certain secured property taxes (as hereinafter provided) which are received by the District for the General Fund of the District during or attributable to Fiscal Year 1987-1988, and the principal of the Notes and the interest thereon shall constitute a first lien and charge thereon and shall be payable from the first moneys received by the District from such pledged secured property taxes, and, to the extent not so paid, shall be paid from any other taxes, income, revenue, cash receipts and other moneys of the District lawfully available therefor (all as provided for in Sections 53856 and 53857 of the Government Code) . In order to effect this pledge, the County agrees to cause to be created and established a special fund, designated the "Contra Costa 4 7554f Community College District 1987 Tax and Revenue Anticipation Note Repayment Fund" (herein called the "Repayment Fund" ) , which fund will be held by the County Treasurer, acting as the responsible agent to maintain such fund until the payment of the principal of the Notes and the interest thereon, and the County agrees to cause to be deposited directly therein the first Two Million Dollars ($2.,000,000) of the first installment of secured property taxes to be received by the District which become due and payable on November- 1, 1987, and become delinquent after December 10, 1987, and the first Three Million Dollars ($3,000,000) , together with an amount sufficient to pay the interest on the Notes, of the second installment of secured property taxes to be received by the District which become due and payable on February 1, 1988, and become delinquent .after April 10, 1988 (such pledged amounts being hereinafter called the "Pledged Revenues") . In the event that there are insufficient secured property taxes received by the District to permit the deposit into the Repayment Fund of the full amount of the Pledged- Revenues to be deposited, by January 31, 1988, or by May 31, 1988, as the case may be, then the amount of any deficiency shall be satisfied and made up on such dates from any other moneys of the District lawfully available for the repayment of the Notes and interest thereon. (B) Any moneys placed in the Repayment Fund shall be for the benefit of the holders of the Notes, and until the 5 7554f principal of the Notes and all interest thereon are paid or until provision has been.made for the payment of the principal of the Notes at maturity with interest ,to maturity, the moneys in the Repayment Fund shall be applied only for the purposes for which the Repayment Fund is created. (C) From the date this resolution takes effect, all Pledged Revenues shall, when received, be deposited in the Repayment Fund. On September 30, 1988, the moneys in the Repayment Fund shall be used, to the extent necessary, to pay the principal of and interest on the Notes. Any moneys remaining in or accruing to the Repayment Fund after the principal of thn Notes and the interest thereon have been paid, or provision for such payment has been made, shall be transferred to the General Fund of the District. (D) Moneys in the Repayment Fund, to the greatest extent possible, shall be invested by the County Treasurer, as permitted by applicable California law, as it is now in effect and as it may be amended, modified or supplemented from time to time; provided that no such investments shall have a maturity date later than the maturity date of the Notes. Section 6. The County Treasurer or one or more deputies to the County Treasurer are hereby authorized to manually execute the Notes and the Clerk of this Board and County Administrator is hereby authorized to countersign the Notes by facsimile signature. The Clerk of this Board and County Administrator is hereby authorized to affix the seal of 6 7554f the County to the Notes either manually or by facsimile impression thereof. The County Treasurer is hereby authorized to cause the blank spaces of the Notes to be filled in as may be appropriate. Section 7. It is hereby covenanted that the County, and its appropriate officials, have duly taken all proceedings necessary to be taken by them, and will take any additional proceedings necessary to be taken by them, for the levy, collection and enforcement of the Pledged Revenues in accordance with law for carrying out the provisions of this Resolution and the Notes. Section 8. All the Notes shall be sold to the r Underwriter in accordance with the terms of the Purchase Agreement in substantially the form presented to this meeting and by reference incorporated herein (as shall be finally approved by the County Treasurer as hereinbelow provided) . Section 9. The Purchase Agreement relating to the Notes, in substantially the form attached hereto as Exhibit B, is hereby approved with such additions, changes or corrections as the County Treasurer may approve upon consultation with the District, and the County Treasurer is hereby authorized to execute the Purchase Contract. Section 10. The -distribution of the Official Statement in connection with the offering and sale of the Notes, dated October 13, 1987, in substantially the form presented to this meeting with such additions, changes or 7 7554f corrections as the -County Treasurer may approve upon consul-tation• with the District is hereby approved. Section 11. (a) The County will not make any use of the proceeds of the Notes or any other funds of the District which would cause the Notes to be "arbitrage bonds" subject to federal income taxation by reason of Section 148 of the Internal Revenue Code of 1986, as amended (the "Code" ) , "private activity bonds" subject to federal income taxation by reason of Section 141(a) of the Code, or obligations subject to federal income taxation because they are "federally guaranteed" as provided in Section 149(b) of the Code; and to that end the Cr,snty, with respect to the proceeds of the Notes, will comply with all requirement of such sections of the Code and all regulations of the United States Department of the Treasury issued thereunder to the extent that such requirements are, at the time, applicable and in effect, and will comply with the provisions of the Letter of Instructions delivered to the County and the District by Orrick, Herrington & Sutcliffe, dated the date of issuance of the Notes, as originally executed and as it may be amended from time to time (the "Letter of Instructions") . (b) In furtherance of the covenants of the County .set forth above, the County will cause the County Treasurer to comply with the Letter of Instructions, and the County hereby agrees and covenants to establish and maintain with the County Treasurer the "Contra Costa Community College District •1987 8 7554f Tax and Revenue Anticipation Note Rebate Fund" and to use such fund to segregate the Rebate Requirement (as that term is defined in the Letter of Instructions) and Rebate Earnings (as that term is defined in the Letter of Instructions) from all others moneys of the County in accordance with the Letter of Instructions. Section 12. The County Treasurer and the Clerk of this Board of Supervisors and County Administrator are hereby authorized and directed to execute and deliver the Notes to the Underwriter, pursuant to the terms and conditions of the Purchase Agreement. All actions heretofore taken by the officers and agents of the County or this Board with respect to the sale and issuance of the Notes are hereby approved, confirmed and ratified and the officers and agents of the County and this Board are hereby authorized and directed, for and in the name and on behalf of the County, to do any and all things and take any and all actions and execute any and all certificates, agreements and other documents which they, or any of them, may deem necessary or advisable in order to consummate the lawful issuance and delivery of the Notes in accordance with this resolution. 9 7554f J , PASSED AND ADOPTED this 13th -day of October, 1987, by the following vote: AYES: Supervisors Powers , Fanden, Schroder , Torlakson, McPeak. NOES: None. ABSENT: None. Chairman of the oard- of Supervisors Phil Batchelor, Clerk of the Board of ATTEST: Supervisors and County Administrator Clerk of the oard of -Supervisors 10 7554f CLERK' S CERTIFICATE I, .PHIL BATCHELOR, Clerk of the Board of Supervisors . and County Administrator of the County of Contra Costa, California, do hereby certify that the foregoing is a full, true and correct copy of a resolution duly adopted at a regular meeting of the Board of Supervisors of said County duly and legally held at the regular meeting place thereof on the 13th day of October, 1987, of which meeting all of the members of said Board of Supervisors had due notice and at which 5 members thereof were present; that at said meeting said resolution was introduced by Supervisor McPeak and was thereupon, upon motion of Supervisor Schroder , seconded by Supervisor Dowers adopted by the following vote: AYES: Supervisors Powers , Fanden, Schroder , Torlakson, McPeak. NOES: None . ABSENT: None. I do hereby further certify that I have carefully compared the same with the original minutes of said meeting on file and of record in my office and that said resolution 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 or rescinded since the date of its adoption and the same in now in full force and effect. 7554f WITNESS my hand and seal of the Board of Supervisors of the- County of Contra Costa, State of California, this 13th day of October, 1987. (SEAL) PHIL BATCHELOR Clerk of the Board of Supervisors and County Administrator of the County of Contra Costa. By _ &&n&6f: Deputy 2 7554f EXHIBIT A UNITED STATES OF AMERICA STATE OF CALIFORNIA COUNTY OF CONTRA COSTA CONTRA COSTA COMMUNITY COLLEGE DISTRICT 1987 TAX AND REVENUE ANTICIPATION NOTE No. $25,000 FOR VALUE RECEIVED, the Contra Costa Community College District (the "District" ) , County of Contra Costa, California, acknowledges itself indebted to and promises to pay to the holder hereof, at the principal office of Bank of America National Trust and Savings Association in San Francisco, California, the principal sum of TWENTY-FIVE THOUSAND DOLLARS ($25,000) in lawful money of the United States of America, on September 30, 1988, together with interest thereon at the rate of PER CENT (_%) per arum, upon the basis of a 360-day year consisting of twelve 30-day months, in like lawful money from the date hereof until payment in full of said principal sum. Both the principal of and interest on this Note shall be payable only A-1 7554f upon surrender of this Note as the same shall fall due; provided, however, no interest shall be payable for any period after maturity during which the holder hereof fails to properly present this Note for payment. It is hereby certified, recited and declared that this Note . is one of an authorized issue of Notes entitled, "Contra' Costa Community College District 1987' Tax and Revenue Anticipation Notes" (the "Notes") , in the aggregate principal amount of Five Million Dollars ($5,000,000) , all of like date, tenor and effect, made, executed and given pursuant to and by authority of a resolution of the Board of Supervisors of the County of Contra Costa duly passed and adopted on October 13, 1987 (at the request of the District pursuant to a resolution of the Governing Board of the District duly passed and adopted on May 20, 1987) under and by authority of Article 7.6 (commencing with Section 53850) of Chapter 4, Part 1, Division 2, Title 5 of the California Government Code, and that all acts, conditions and things required to exist, happen and be performed precedent to and in the issuance of this Note have existed, happened and been performed in regular and due time, form and manner as required by law, and that this Note, together with all. other indebtedness and obligations of the District, does not exceed any limit prescribed by the r. Constitution or statutes of the State of California. The principal amount of the Notes, together with the interest thereon, shall be payable from taxes, income, A-2 7554f i i• revenue, cash receipts and other moneys which are received by the District for the Fiscal Year 1987-1988. As security for the payment of the principal of and interest on this Note and all Notes of said authorized issue, the District has pledged certain secured property taxes to be received by the District for the General Fund of the District during or attributable to Fiscal Year 1987-1988 (as provided in said resolutions) , and the principal of and the interest on this Note and all Notes of said authorized issue shall constitute a first lien and charge thereon and shall be payable therefrom, and to the extent not so paid shall be paid from any other moneys of the District lawfully available therefor. IN WITNESS WHEREOF, the County of Contra Costa has caused this Note to be executed by its Treasurer-Tax Collector by manual signature, and countersigned by the Clerk of its Board of Supervisors and County Administrator by facsimile signature and has caused its official seal to be printed hereon .this 15th day of October, 1987. COUNTY OF CONTRA COSTA By Treasurer-Tax Collector (SEAL) Countersigned: Clerk of the Board of Supervisors and County Administrator A-3 7554f