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HomeMy WebLinkAboutMINUTES - 06171986 - 2.8 �.D TO:w BOARD OF SUPERVISORS FROM: Phil Batchelor Contra County Administrator C DATE: June 16, 1986 0.* SUBJECT: County' s Long-Term and Short-Term Borrowing Programs SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION RECOMMENDATION• Acknowledge receipt of this report from the County Administrator commenting on the rating given by Standard & Poors to the County' s 1986-87 long-term and . short-term borrowing programs, the result of which will be a savings of $5,000,000 in interest costs. BAKCGROUND• The Treasurer-Tax Collector, Auditor-Controller, and County Administrator met in New York June 5 and June 6 with Moody' s and Standard & Poors' to provide them a fiscal status report on the County and answer questions from the rating agencies. Our objective was to help them get the most complete and accurate picture of the County' s current financial situation. At one point, the head of the rating committee commented that she couldn' t believe this was the same county as two years ago. The truth of this comment is, of course, due to the fiscally prudent course set by the Board of Supervisors. As a result of decisions made by the Board, the County' s fund balance has improved, as has the County' s cash flow. The close attention the Board has given to monitoring expenditures and revenue on a regular basis has contributed to the positive impression received by the rating agencies. Short-Term Borrowing: The County plans a $75 million short-term borrowing program in 1986-87 . These funds provide continuing cash flow until property taxes, along with other major revenue sources, are received during the fiscal year. Standard & Poors has awarded the County an S.P. 1 + rating. This is the highest rating given and will have a positive impact on the interest the County must pay on these notes. CONTINUED ON ATTACHMENT: YES SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE XAPPROVE OTHER SIGNATURE S : 7 c ACTION OF BOARD ON dine 177. 1 1g86 APPROVED AS RECOMMENDED OTHER VOTE OF SUPERVISORS 1 HEREBY CERTIFY THAT THIS IS A TRUE UNANIMOUS (ABSENT AND CORRECT COPY OF AN ACTION TAKEN AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN. CC: County Administrator ATTESTED7 County Auditor P L BATCHELOR, CLERK OF THE BOARD OF Treasurer-Tax Collector SUPERVISORS AND COUNTY ADMINISTRATOR M382/7-83 BY ,DEPUTY Page 2 Long-Term Borrowing: As the Board is aware, the County is financing the Superior Court Annex and East County Social Services building through our long-term borrowing program. This issue will total $ 22 . 5 million for the two buildings over. a period of 20 years. For the long-term borrowing program, Standard & Poors has awarded the County an "A" rating. This is a substantial improvement from the "BBB" rating received from Standard & Poors for the last three years. The difference between these ratings should result in an interest rate about . 2% lower than with the BBB rating. As a result, we anticipate a savings of $5,000,000 in interest payments over the term of the borrowing program from what the County would have had' to pay with last year' s lower ratings. These savings are a direct result of the Board' s insistence on putting the County back on a sound financial footing. This careful attitude, continued over the next several years, should result in further improvements in the County' s long-term rating, and maintenance of the highest short-term rating. ,TO-. BOARD OF SUPERVISORS FROM: Phil Batchelor, County Administrator Cwtr C,)sta DATE: June 17 , 1986 C ^ . @ SUBJECT: Long-term Project Financing SPECIFIC REQUEST(S) OR RECOMMENDATIONS) & BACKGROUND AND JUSTIFICATION RECOMMENDATION: Authorize the County Administrator to substitute a lower amortization schedule for the deferred financing of the Superior Court Annex and East County Social Service Projects if lower interest rates are obtained within 24 hours. BACKGROUND: The resolution approving the deferred financing schedule and other actions for the Superior Court Annex and East County Social Service Project included the Certificate of Participation Amortization Schedule based upon market data for June 17, 1986 . More favorable interest rates may be obtained within 24 hours based upon the latest available information. In order to proceed with the project in an expeditious manner and still avail the County of the lower interest rate potential, it is recommended that the County Administrator be authorized to substitute a lower amortization schedule in the approving resolution within 24 hours if such lower schedule becomes available. CONTINUED ON ATTACHMENT: _ YES SIGNATURE: RECOMMENDATION OF COUNTY ADM;1WI:STR'A,TOR' RECOMMEND'A7'1iONi OF' BOARD COMM4 TTEE'. APPROVE OTHER SIGNATURE(S): ACTION OF BOARD ON APPROVED AS's RECOMMENDED' � OTHER' VOTE OF SUPERVISORS Ii HEREBY CERTIFY THAT` T.H.6S� IIS: A, TRUE: UNANIMOUS (ABSENT AND CORRECT' COPY OF AN' ACT'[ON, TAKEN, AYES: NOES*., AND' ENTERED ONt TES: MINUTES OF' THE: BOARD ABSENT: ABSTAIN':' OF SUPERVIiSORS; ON' THE: DATE: SHOWN_ CC: Clerk of the Board ATTESTED ��i�e-� Bank of America -- -- -- Orrick, Herrinqton & Sutcliffe PHJL. BATCHELOR;, CL+ERK: OF THE BOARD) OF' County Administrator SUPERVISORS AND COUNTYADMI,NISTRA,TiOR' Public Facilities Corporation M382/7-83 By ,;DEPU,Tr CCh-22d 8739s RESOLUTION NO. OF THE BOARD OF SUPERVISORS OF THE COUNTY OF CONTRA COSTA, CALIFORNIA RESOLUTION ACCEPTING THE BID OF CONTRA COSTA COUNTY PUBLIC FACILITIES CORPORATION TO LEASE A SITE FROM THE COUNTY, CONSTRUCT THEREON A SUPERIOR COURT ANNEX AND LEASE BACK SAID SITE AND SAID ANNEX TO THE COUNTY, APPROVING FORMS OF AND AUTHORIZING EXECUTION OF A SITE LEASE (CAPITAL PROJECT IV) , A DEED OF GIFT (CAPITAL PROJECT V) , A FACILITY LEASE (CAPITAL PROJECTS IV AND V) , A TRUST AGREEMENT, A CERTIFICATE PURCHASE AGREEMENT AND AN AGENCY AGREEMENT, APPROVING ISSUANCE OF 1986 CERTIFICATES OF PARTICIPATION FOR CAPITAL PROJECTS IV AND V, APPROVING CONSTRUCTION BIDS FOR CONSTRUCTION OF SUPERIOR COURT ANNEX AND EAST COUNTY SOCIAL SERVICE BUILDING, APPROVING SALE OF AND FINAL OFFICIAL STATEMENT FOR SAID CERTIFICATES OF PARTICIPATION AND AUTHORIZING EXECUTION OF NECESSARY CERTIFICATES. WHEREAS, the County of Contra Costa is a political subdivision of the State of California (herein called the "County" ) ; WHEREAS, the County desires to reduce the costs of construction, acquisition and financing of certain property for various governmental purposes and such acquisition, construction and financing constitute governmental affairs of the County; WHEREAS, this Board of Supervisors has full legal right, power and authority under Section 25371 of the Government Code of the State of California to lease real property belonging to the County for a term not to exceed forty (40) years provided that (i ) the use to which such property will be put after construction thereon is consistent with the use or purposes contemplated upon the original acquisition of such property, ( ii ) any instrument by which such property is let shall require the lessee to construct on such property a building for the use of the County during the term of such instrument and (iii ) title to such building shall vest in the County at the expiration of said term; WHEREAS, Contra Costa County Public Facilities Corporation (herein called the 'Corporation" ) is a nonprofit corporation formed to render financial assistance to the County by financing the acquisition, construction, improvement and remodeling of public buildings and facilities for the County; WHEREAS, by its Articles of Incorporation and by its Bylaws no part of the net earnings, funds or assets of said Corporation shall inure to the benefit of any director thereof 2 or any other person, firm or corporation, except the County of Contra Costa; WHEREAS, under Ordinance No. 86-33, adopted on May 6, 1986 and effective June 5, 1986, the County is authorized to enter into a lease with the successful lease bidder of certain real property located in Martinez, California and for the construction thereon of a Superior Court Annex (herein called "Capital Project IV" ) and the leaseback thereof to the County; WHEREAS, under Ordinance No. 86-34, adopted on May 6, 1986 and effective June 5, 1986, the County is authorized to enter into a facility lease with the Corporation for the acquisition, construction and improvement of certain office facilities located in the City of Antioch, California and designated as the East County Social Service Building (herein called "Capital Project V" ) ; WHEREAS, under Resolution No. 86/222 adopted April 29, 1986, this Board of Supervisors declared its intention to call for bids for a lease of a site, the construction thereon of Capital Project -IV and the lease back of the site and Capital Project IV to the County; WHEREAS, notice inviting competitive bids for said leases, in the manner heretofore provided in said Resolution No. 86/222, was duly given in accordance with applicable provisions of law; 3 WHEREAS, the following bids for said leases were and are the only bids received in such competitive bidding, to wit: Facility Bidder: Lease Rental Bid: 1 . Contra Costa County Public See attached schedule Facilities Corporation 2 . 3 . WHEREAS, the bid of Contra Costa County Public Facilities Corporation, a California nonprofit corporation, is the lowest responsible bid received in such competitive lease bidding; WHEREAS, as required by said notice inviting competitive lease bids, the Corporation is prepared to enter into a contract for the construction of Capital Project IV with S. J. Amoroso Construction Company, Inc. , the contractor determined by the County following receipt of construction bids to be the lowest responsible construction bidder; WHEREAS, pursuant to that agreement between the Corporation and the County entitled Acquisition and Development Agreement for East County Social Service Project, as amended, the Corporation has obtained public competitive bids for the construction of Capital Project V; WHEREAS, the Board of Supervisors hereby determines that it would be in the best interest of the County and the residents of the County for the Corporation and the County to enter into an agreement, entitled "Facility Lease (Capital 4 Projects IV and V) " and tentatively dated as of June 1, 1986 (herein called the "Facility Lease" ) ; WHEREAS, under the Facility Lease, the County would be obligated to make base rental payments to the Corporation for the lease of Capital Projects IV and V; and WHEREAS, it is proposed that all rights to receive such base rental payments (together with the additional rental payments provided for in the Facility Lease) will be assigned without recourse by the Corporation to a trustee pursuant to an agreement, entitled "Assignment Agreement" and tentatively dated as of June 1, 1986; WHEREAS, it is further proposed that the Corporation, the County and Bank of America National Trust and Savings Association, as trustee (herein called the "Trustee" ) , shall enter into an agreement, entitled "Trust Agreement" and tentatively dated as of June 1, 1986 (herein called the "Trust Agreement" ) , pursuant to which the Trustee will execute and deliver certificates of participation (herein called the "Certificates of Participation" ) in an amount equal to the aggregate principal components of such base rental payments, each evidencing and representing a fractional undivided interest in such base rental payments, and will use the proceeds to finance the acquisition, construction and financing of Capital Projects IV and V; WHEREAS, Bank of America National Trust and Savings Association, as ,purchaser, has submitted to the County and the 5 Corporation an agreement to purchase the Certificates of Participation; ' WHEREAS, the County has full legal right, power and authority under the Constitution and the laws of the State of California to enter into the transactions hereinafter authorized; WHEREAS, this Board has been presented with the form of each document hereinafter referred to, relating to such financing of Capital Projects IV and V, and the Board has examined and approved each document and desires to authorize and direct the execution of such documents and the consummation of such financing; and WHEREAS, all acts, conditions and things required by the Constitution and laws of the State of California to exist, to have happened and to have been performed precedent to and in connection with the consummation of such financing authorized hereby do exist, have happened and have been performed in regular and due time, form and manner as required by law, and the County is now duly authorized and empowered, pursuant to each and every requirement of law, to consummate such financing for the purpose, in the manner and upon the terms herein provided; NOW, THEREFORE, BE IT RESOLVED by the Board of Supervisors of the County of Contra Costa, as follows: Section 1 . All of the recitals herein contained are true and correct and this Board of Supervisors so finds. 6 Section 2 . The lease bid of the Corporation shall be and it is hereby accepted, and the leases for Capital Project IV are awarded to the Corporation. Pursuant to said Ordinances Nos.' 86-33 and 86-34 this Board of Supervisors hereby determines to combine in one lease the Facility Lease (Capital Project IV) and the Facility Lease (Capital Project V) referred to in said ordinances. Section 3 . The form of Site Lease (Capital Project IV) between the County and the Corporation, dated as of June 1, 1986, on file with the Clerk of the Board of Supervisors, is hereby approved and the Chairman of the Board of Supervisors and the Clerk of the Board of Supervisors are hereby authorized and directed to execute and deliver the Site Lease in substantially said form, with such changes therein as such officers may require or approve, such approval to be conclusively evidenced by the execution and delivery thereof. Section 4. The form of Deed of Gift, dated as of June 1, 1986, from the Corporation to the County, on file with the Clerk of the Board of Supervisors of the County, is hereby approved. The Chairman of the Board of Supervisors and the Clerk of the Board of Supervisors are hereby authorized and directed, for and in the name and on behalf of the County, to execute and deliver an acceptance of the Deed of Gift in substantially said form, with such changes therein as such officers may require or approve, such approval to be conclusively evidenced by the execution and delivery thereof. 7 Section 5 . The form of Facility Lease (Capital Projects IV and V) , dated as of June 1, 1986, on file with the Clerk of the Board of Supervisors, is hereby approved and the Chairman of the Board of Supervisors and the Clerk of the Board of Supervisors are hereby authorized and directed to execute and deliver the Facility Lease in substantially said form, with such changes therein as such officers may require or approve, such approval to be conclusively evidenced by the execution and delivery thereof. Section 6. The form of Trust Agreement by and among The Bank of America National Trust and Savings Association, as trustee, the Corporation and the : County, dated as of June 1, 1986, on file with the Clerk of the Board of Supervisors, is hereby approved. The Chairman of the Board of Supervisors and the Clerk of the Board of Supervisors are hereby authorized and directed to execute and deliver the Trust Agreement in substantially said form, with such changes therein as such officers may require or approve, such approval to be conclusively evidenced by the execution and delivery thereof. Section 7. The form of Certificates of Participation Purchase Contract by and among Bank of America National Trust and Savings Association (herein called the "Underwriter" ) , the County, and the Corporation for the Certificates of Participation, on file with the Clerk of the Board of Supervisors, is hereby approved, and the Chairman of 8 the Board of Supervisors of the County is hereby authorized and directed to execute and deliver the Certificate Purchase Contract for the Certificates of Participation in substantially such form, authorizing the sale of $22,000,000 in aggregate principal amount of the Certificates to the Underwriter for a purchase price of not less than 98% of the principal amount represented thereby, with such changes therein as such officer may require or approve, such approval to be conclusively evidenced by the execution and delivery thereof. Section 8. The form of Agency Agreement, dated as of June 1, 1986, between the County and the Corporation, on file with the Clerk of the Board of Supervisors, is hereby approved. The Chairman of the Board of Supervisors and the Clerk of the Board of Supervisors are hereby authorized and directed, for and in the name and on behalf of the County, to execute and deliver to the Corporation the Agency Agreement in substantially said form, with such changes therein as such officers may require or approve, such approval to be conclusively evidenced by the execution and delivery thereof. Section 9 . The Certificates of Participation and the form of Official Statement relating to the Certificates of Participation, on file with the Clerk of the Board of Supervisors, are hereby approved. The Chairman of the Board of Supervisors of the County is hereby authorized and directed, at the time of the delivery of the Certificates of 9 Participation, : for and in the name and on behalf of the County, to execute a final Official Statement in substantially the form of the Official Statement before this meeting, with such additions ,thereto or changes therein as the County Counsel ' s Office or Orrick, Herrington & Sutcliffe, may require or approve, such approval to be conclusively evidenced by the execution and delivery thereof. Section 10. The Underwriter is hereby authorized to distribute copies of the Official -Statement, as finally executed, to persons purchasing the Certificates of Participation. Section 11 . Resolution No. 86-74 of the Board of Supervisors, adopted May 20, 1986, approving bids for construction of Capital Projects IV and V, be and it is hereby ratified and confirmed. Section 12 . The assignment by the County to the Corporation of the contract for the performing of architectural services between The NJJB Group and the County, dated January 8, 1985 (the Corporation assuming the obligation to make payments due and to be due under such contract) , relating to Capital Project IV, and of the portion of the contract for the performing of legal services between Orrick, Herrington & Sutcliffe and the County, dated March 9, 1982, relating to the Certificates of Participation (the Corporation assuming the obligation to make payments due and to be due under such portion of the contract) , be and they' are hereby 10 approved. The; Chairman and the Clerk of the Board of Supervisors are authorized and directed to execute appropriate documents evidencing such assignments. Section 13 . The officers of the County are hereby authorized and directed, jointly and severally, ,,to do any and all things which they may deem necessary or advisable in order to consummate the transactions herein authorized and otherwise to carry out, give effect to and comply with the terms and intent of this Resolution. The Chairman of the Board of Supervisors, the Clerk of the Board of Supervisors and the officers of the County be and they are hereby authorized and directed to execute and deliver any and all certificates and respresentations, including signature certificates, no-litigation certificates, arbitrage bond certificates and certificates concerning the contents of the Official Statement distributed in connection with the sale of the Certificates of Participation, necessary and desirable to accomplish the transactions set forth above. Section 14. All actions heretofore taken by the officers and agents of the County with respect to the sale,- execution and delivery of the Certificates are hereby approved, confirmed and ratified. 11 Section 15. This Resolution shall take effect from and after its date of adoption. PASSED AND ADOPTED this 17th day of June, 1986. Ch firman of he WbaM of Supervisors County of Contra Costa, California [ Seal ] ATTEST: Phil Batchelor, Clerk of the Board of Supervisors and County Administrator By Z�& d4zG46a- . Deputy Clerk of the Board of Supervisors of the County of Contra Costa, State of California - 12 9 • � ,^_ `r •_-• •moi i_• •� i_• .�• _: •� i_r •� i_• r^• �_ ^_ r i i r •'�• i_r •-_• '•" i_r i_I •-_. i• •_: •^_ •1 r1 :-r1 -. ^ -• ^_• _O V 14 L •J •�. `. •� . •� . .1 Vr -- V -- V -- V ►- V -- V -•. 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Ln +:JAO Ln .0N0 00C, L4 P�v Q •0 G •0 •0 N N •0 -0 ►- -- 44 r:J' 0 .0 J) -0 : JJ 0 -0 J] A A J) J] A A J :, 0- P 0 0 tJ tJ V J V V V m +-- Ln0 -- ►- 00NNmm •0 .OW W i.JW -0 .0 •..� 0 V V -- ►- PO- AAMMD' C- C _ M0 -O -D Ln Ln Ln0LQCO Cr G fD V d 00 d1 V CLERK' S CERTIFICATE I , Jeanne 0, Maglio Deputy Clerk and Chief Clerk of the Board of Supervisors of the County of Contra Costa, hereby certify that 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 regularly held at the regular meeting place thereof on the 17th day of June , 1986, of which meeting all of the members of said Board of Supervisors had due notice and at which a majority thereof were present; and that at said meeting said resolution was adopted by the following vote: AYES: Supervisors Fanden, Schroder, McPeak, Torlakson, Powers NOES: None I further certify that I have carefully compared the same with the original minutes of said meeting on file and of record in my office; that the foregoing 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 is now in full force and effect. WITNESS my hand and the seal of the County of Contra Costa this 17th day of June 1986. Deputy Clerk of the Board of Supervisors of the County of Contra Costa, State of California [SEAL] 2