HomeMy WebLinkAboutMINUTES - 11031998 - C108 ...................................................... ................................................................................................................
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TO: BOARD OF SUPERVISORS e.108
FROM: Barton J. Gilbert, Director of General Services Contra
Costa
DATE: November 3, 1998 County
SUBJECT: FINANCING OF COUNTY TENANT IMPROVEMENTS FOR LEASED FACILITY AT
1420 WILLOW PASS ROAD, CONCORD, CA
SPECIFIC REQUESTS OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
1. RECOMMENDATION
APPROVE a lease/purchase agreement with Transocean Funding, Inc. in an amount not to
exceed $200,000.00 for financing of County tenant improvements at 1420 Willow Pass Road,
Concord, CA and AUTHORIZE the Director of General Services to execute said contract and
take any other action as required to consummate and implement the agreement; DECLARE the
County's official intent, solely for purposes of establishing compliance with the requirements of
Section 1.150-2 of the United States Treasury Regulations, to use the proceeds from this
financing to reimburse itself for any County expenditures in connection with the costs of the
tenant improvements incurred prior to the execution of the lease/purchase agreement within the
timeframes permitted by the regulations; APPROVE the execution and recording of a
Memorandum of Lease for said facility.
11. FINANCIAL IMPACT
The interest rate for financing of the tenant improvements through the lease/purchase
agreement with Transocean Funding Corporation is tax-exempt and represents a significant
savings over commercial taxable interest rates. Costs for repayment of tenant improvements
are budgeted within the Health Services Department.
Ill. REASONS FOR RECOMMEN12ATIONIBACKGROUND
On August 11, 1998 your Board approved the lease with Duffel Enterprises for Health Services
Department occupancy of 1420 Willow Pass Road, Concord. The initial term of the lease is for
seven years. The lease provides the County with options for extension. Completion of tenant
improvements were required to meet the department program operations. Financing of the
tenant improvements through Transocean Funding Corporation utilizing tax-exempt interest
rates is substantially less than taxable commercial rates available through the building owner.
Your Board approved a similar arrangement with Transocean Funding, Inc. on October 26, 1993
to achieve reductions in interest rates for tenant improvements 1LOr ao
* t f leases.
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CONTINUED ON ATTACHMENT: YES SIGNATURE: taw lj�
RECOMMENDATION OF COUNTY ADMINISTRATOR —RECOMMENDATION OF BOARD COMMITTEE
X—APPROVE —OTHER
SIGNATURES} �y
ACTION OF BOARD ON Nom mber 3, 1998 APPROVED AS RECOMMENDED X
VOTE OF SUPERVISORS
X UNANIMOUS(ABSENT None
AYES: NOES:
ABSENTS! ABSTAIN:
MEDIA CONTACT: BARTON J.GILBERT(313-7100)
CC: County Administrator(via UM)
I HEREBY CERTIFY THAT THIS IS A TRUE
AND CORRECT COPY OF AN ACTION TAKEN
County Auditor-Controller(via UM) AND ENTERED ON THE MINUTES OF THE BOARD
Lessor(via UM) OF SUPERVISORS 01`1 THE DATE SHOWN.
Health Services Department(via UM)
County Counsel(via UM) ATTESTED—
Risk Management(via LIM) PHIL BATCHELOR,CLERK OFT E BOARD OF
Orig:General Services Department-UM SUPERVISORS AND COUNTY ADMINISTRATOR
Buildings and Grounds(via UM)
By DEPUTY
G:\LeaseMgt\CAROL\I420B0 9-2-98.doe