HomeMy WebLinkAboutMINUTES - 12141999 - C130-C134 TO: BOARD OF SUPERVISORS CONTRA
COSTA
FROM: PHIL BATCHELOR, COUNTY ADMINISTRATOR
COUNTY
DATE: December 14, 1999
SUBJECT: Juvenile Hall Renovation, Tamalpais Wind, 202 Glacier Drive, Martinez (WH399B)
SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
RECOMMENDATION(S)
DETERMINE that there is a need to continue the emergency action taken by the Board on August
10, 1999 pursuant to Public Contract Code Sections 22035 and 22050, to complete the Juvenile Hall
Renovation, Tamalpais Wing project at 202 Glacier Drive, Martinez.
FINANCIAL. IMPACT
Funding for this project has been budgeted. Per the Board's authorization on August 10, 1999,
County Counsel is pursuing appropriate legal remedies against Patrick M. Donaghue, Insurance
Company of the West and any other parties responsbile for damages and expenses incurred by the
County in excess of the previous construction contract balance.
BACKGROUND
1. On December 1, 1998, the Board awarded the construction contract for the Juvenile Hall
Renovation, Tamalpais Wing (Tamalpais) project, located at 202 Glacier Drive, Martinez to
Patrick M. Donaghue (Donaghue) for $1,034,570. The contract required the placement of a
considerable amount of exposed concrete within specified tolerances, consistent with industry
standards.
2. Donaghue performed extensive concrete work that was seriously defective. The resulting work
threatened to compromise the security and appearance of the facility. Donaghue repeatedly
failed to either remove the defects or develop a viable plan for their correction. On August 10,
1999, the Board declared Donaghue to be in material breach and terminated Donaghue's rights
under the contract.
CONTINUED ON ATTACHMENT: X__ YES SIGNATURE.
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENIA INF fBONd1111
APPROVE OTHER
SIGNATURE(S):&� Z�6v'
ACTION OF BOARD ON D cp m b Pr 1 L t 1 q APPROVED AS RECOMMENDED XX OTHER
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A
XX UNANIMOUS(ABSENT - - - - } TRUE AND CORRECT COPY OF AN
AYES: NOES: ACTION TAKEN AND ENTERED
ABSENT:, ABSTAIN; ON MINUTES OF THE BOARD OF
SUPERVISORS ON THE DATE SHOWN.
ATTESTED D e C a M b A r 14 x_1 9
PHIL BATCHELOR,CLERK OF
HE BOA OF UPERVIS
BY DEPUTY
Contact:
cc: See Fuge 2
BACKGROUND (continued)
3. On August 10, 1999, the Board declared that, due to the public safety threat posed by the
temporary closures at the project, and due to the possible loss of state grant funding, a state of
emergency exists. Furthermore, the Board delegated authority to the County Administrator or
designee to complete the project and to enter into contracts without the need to re-solicit
competitive bids.
4. The County received the bonding company's (Insurance Company of the West; "ICV') response
to the County's claim on November 5, 1999. In its response, ICW recognized the seriousness of
the defective work and recognized that it likely will cost the County at least $510,985.05 over and
above the contract price to fix the defective work. Despite this, ICW gave two unreasonable
alternatives to the County—either accept back the original contractor (Donaghue) who did the
defective work or accept a "low ball" payment of $118,004.31. ICVVs bad faith response
amounts to a rejection of the County's claim. Therefore, the County is left with no viable choice
but to hire its own contractor to properly complete the contract work in strict accordance with the
plans and specifications. This will involve removing the defective construction down to the slab
and rebuilding the concrete from that point up.
5. On November 30, 1999, the County Administrator's Office executed a contract with Taber
Construction of Martinez for the completion of the project, and issued a Notice to Proceed
effective December 6, 1999. The contract amount is $1,198,435, and the contract duration is
150 calendar days.
Contact: George Roemer, CAO—County Construction Administrator (5-1055)
cc: CAO Finance
Auditor/Controller
GSD (Accounting)—Terry Mann
O'Brien-Kre itzberg Inc. (via CAO)
,r
Contra
Costa
TO: BOARD OF SUPERVISORS -
County
FROM: Dennis M. Barry, AICP
Community Development Director
DATE: December 14, 1999
SUBJECT: Child Care Mitigation Agreement - Amerisuites Hotel - Pleasant Hill BART
SPECIFIC REQUEST(S) OR RECOMMENDATIONS(S) & BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS
APPROVE and AUTHORIZE the Chair and the Deputy Director - Redevelopment or his
designee to execute Child Care Mitigation Agreement with Prime Hospitality.
FISCAL IMPACT
None.
BACKGROUND/REASONS FOR RECOMMENDATIONS
In 1988 the Board of Supervisors adopted a child care component of the Community Facilities
Element of the County General Plan (Resolution 851623). In 1988 the Board of Supervisors
enacted a Child Care Facilities Ordinance (Ordinance 88-1 adding chapter 82-22 to the
County Ordinance Code). The Child Care Ordinance requires developers of projects to
prepare and submit to the County a child care survey, including a needs assessment and
response plan. /
f
CONTINUED ON ATTACHMENT XX YES SIGNATURE: f,
F
XRECOMMENDATION OF COUNTY ADMINISTRATOR R COMME CATION OF BOA 6
COMMITTEE APPROVE OTHER � I
j
SIGNATURE(S):
ACTION OF BOARD ON December 14 1999 APPROVED AS RECOMMENDED xx OTHER
See the attached Child Care Mitigation Agreement
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A
xx UNANIMOUS (ABSENT -- - - - _ } TRUE AND CORRECT COPY OF AN
AYES: NOES: ACTION TAKEN AND ENTERED ON THE
ABSENT: ABSTAIN: MINUTES OF THE BOARD OF
SUPERVISORS ON THE DATE SHOWN.
Contact: Jim Kennedy
335-1255
cc: Community Development ATTESTED ember 14 . 1 g 9
County Administrator PHIL BATCHELOR, CLERK OF
County Counsel THE BOARD OF SUPERVISORS
Auditor-Controller AND COUNTY ADMINISTRATOR
Redevelopment Agency
Via Redevelopment Agency
Prime Hospitality
Contra Costa Centre Association
B , DEPUTY
11:\Rdordrs\12149primel losp.doc
CHILD CARE MITIGATION AGREEMENT page 2
Amerisuites Hotel (Pleasant Hili BART Station Area)
Prime Hospitality, the Developer of the Amerisuites Hotel project, has fulfilled the
obligation of the Ordinance and Conditions of Approval for DP953037, by agreeing to pay
a mitigation fee consistent with the Pleasant Hill BART Program.
JK.js
I]:\Bdordrs112149Amarisuites.doc
1
CHILD CARE MITIGATION AGREEMENT
Pleasant Hill BART Station Area
1.0 Agreement identification
Department: Contra Costa County
Community Development Department
Subject: Pleasant Hili BART Station Area
Child Care Mitigation
2.0 Parties
The County of Contra Costa, California (the "County") and the following named
Developer:
Developer: Prime Hospitality Corporation,
a Delaware corporation
Address: 700 Route 46 East
Fairfield, NJ 07004
Property APN: 148-480-003
Phone Number: Kathleen Neis
(973) 808-7705
(973) 882-7611 Fax
hereby agree and promise as follows:
3.0 Recitals
WHEREAS, it is a goal of the County to assist and encourage the development of
adequate, affordable and quality child care, and to maximize parental choice for child
care options in the community, and
WHEREAS, the County, by Resolution No. 86/623, adopted a child care
component of the Community Facilities Element of the County General Plan; and
WHEREAS, the County, by Resolution No. 91/68, adopted a comprehensive
update to the County General Plan, including a Public Facilities/Services Element with a
child care component; and
31:\Contracts\ChCare MitAgmt Pri meliosp.doc
WHEREAS, the County, by Ordinance No. 88-1, approved by the Board of
Supervisors on January 26, 1988, enacted a child care facilities ordinance (chapter 82-22
tot he County Ordinance Code); and
W1-fEREAS, the Contra Costa Centre Association (the "CCCA") has been
established as a non-profit mutual benefit corporation whose members are property
owners and developers with interests in the Pleasant Hill BART Station Area; and
WHEREAS, one of the specific purposes of the CCTA is enabling its members to
coordinate planning and services in the child care area; and
WHEREAS, the Developer is a member of the CCCA; and
WHEREAS, Section 82-22.806 of the County Ordinance Code requires that
developers of Projects (as defined in Section 82-22.406) prepare and submit a child care
survey, that includes a needs assessment and response plan; and
WHEREAS, the CCCA submitted a child care needs assessment as required by
Section 82-22.806 on March 9, 1988, with an update dated September 11, 1989; and
WHEREAS, the CCCA submitted a response plan as required by Section 82-
22.806 in a letter dated January 30, 1991; and
WHEREAS, the Director of Community Development --(the "Director") has
determined that the needs assessment and response plan is adequate, subject to members
of the CCCA contractually obligating themselves to the response actions referenced in
their letter of January 30, 1991; and
WHEREAS, the CCCA has entered into a Child care Program Administration
Agreement ("Administration Agreement") with the County, in which it agrees to annually
develop and provide for the administration of a Child care Mitigation Program including
program design, an expenditure plan, and an administration plan (collectively the "Plan").
4.0 Effective Date
The effective date of this agreement is December 1, 1999.
5.0 Terms
5.1 Child Care Mitigation Program
H:\Contracts\ChCareMitAgrntPrimef lospAoc
The Child Care Mitigation Program consists of a fund, capitalized by members of
the LCCA, that may be used for child care facilities, affordability, or other child
care needs of employees or projects represented by the CCCA. The current
Program has been approved by the County.
5.2 vital Contribution
The Undersigned Developer agrees to a total capital contribution of$25,025.
5.3 Payment Schedule
The Developer agrees to pay its capital contribution to the County pursuant to the
following schedule:
(a) Twenty-five percent (25%) of the amount for the project or
the phase of the project as described in Exhibit A, upon issuance of a
building permit,
(b) The remaining seventy-five percent (75%) of the amount for the project or
the phase of the project as described in Exhibit A, upon final sign-off of
the Community Development Department prior to occupancy.
(c) For projects or phases described in Exhibit A which are built as of the date
of this Agreement, no later than thirty (30) days after the effective date of
this Agreement.
5.4 Payment Mechanisms
Capital contributions specified in Section 5.2 are to be made payable to the
County of Contra Costa. As an alternative to the payment schedule shown in
Section 5.3 of this Agreement, the Developer may, if feasible as determined by
the County, choose to do one of the following:
(a) Pay its capital contribution by agreeing to a special tax as part of a Mello-
Roos Community Facilities District. The Developer must affirmatively
declare its intent to participate in such a District when requested by the
County. if for any reason, a Mello-Roos District is not formed or the
N:\Contracts\CI:CareMit AgmtPriiiieHosp.doe
Developer does not participate in such District, the Developer shall pay
pursuant to Section 5.3 above; and
(b) Such other payment alternative upon which the Developer and County
may agree.
5.5 Child Care Trust Fund
The County shall establish a Child Care Trust Fund, and shall deposit capital
contributions made pursuant to Sections 5.2 and 5.3 of this Agreement, and such
other Agreements between the County and members of the CCCA, and interest
earning therefrom into said Trust Fund to be used exclusively for purposes
expressed herein and further agreed to in the Plan.
6.0 Indernnification
Developer shall defend, indemnify, save protect, and hold harmless the County and its
officers and employees from any and all claims, costs and liability for any damages,
injury, or death arising directly or indirectly from or connected with this agreement,
including, but not limited to, claims arising from or connected-with the developer's
implementation and management of the services provided hereunder, save and except
claims or litigation arising through the sole negligence or sole willful misconduct of the
County, and will make good to and reimburse the County for any expenditures, including
reasonable attorneys ,fees the County may make by reason of such matters and, if
requested by the County, will defend any such suits at the sole cost and expense of the
Developer.
7.0 Breach
In the event the Developer or the County fails to perform any of its obligations hereunder,
or otherwise breaches this Agreement, the County shall have the right to pursue all
remedies provided by law or equity.
8.0 Heirs, Successors and Assigns
1I:\Contracts\ChCareMitAgmt Primes losp.doc
This Agreement shall inure to the benefit of and bind the heirs, successors, executors,
personal representatives, and assigns of the parties hereto.
9.0 Assignment
This Agreement shall be recorded with the Contra Costa County Recorder within 15 days
of execution, and the burdens and benefits thereof shall run with the land. Assignment of
the Developer of his obligations under this Agreement, provided written notice of the
Assignment is provided to the County within 15 days following transfer of the property.
H.IContra�Ks\ChCareMitAgmt PrinieHo,,;p.doe
10.4 Signature
These signature attest the parties Agreement hereto:
COUNTY OF CONTRA COSTA CALIFORNIA DEVELOPER(See Below)
Prime Hospitality Corporation,
a Delaware Corporation
By: C2By:
a' , oard of Supervisors De nate Official Capacity)
ATTEST: Phil Batchelor,
County Clerk of the Board
of Supervisors and County
Administ ator
0 ecemb r 1 1999
By:
61 Deputy
Recomm ded by Dep rt dent
By: �r1�/vvt�
Ji Kgnnedy, De `ty Director-Redevelor'rnent
r
� I
\ f,
Ei:\Contracts\ChCireM itAgmt Primeli osp.doc
RESOLUTION NO.99/637
OF TIME BOARD OF SUPERVISORS OF THE COUNTY OF CONTRA COSTA, CALIFORNIA
RESOLUTION DECLARING THE OFFICIAL INTENT
OF THE COUNTY OF CONTRA COSTA
TO REIMBURSE CERTAIN EXPENDITURES
FROM PROCEEDS OF INDEBTEDNESS
WHEREAS, the County of Contra Costa(the"Issuer")intends to acquire,
construct and improve certain facilities for use by the Issuer as described in Exhibit A hereto (the
"Project");
WHEREAS,the Issuer expects to pay certain expenditures(the"Reimbursement
Expenditures")in connection with the Project prior to the issuance of indebtedness for the
purpose of financing costs associated with the Project on a long-term basis;
WHEREAS,the Issuer reasonably expects that debt obligations in an amount not
expected to exceed $40,000,000 will be issued and that certain of the proceeds of such debt
obligations will be used to reimburse the Reimbursement Expenditures; and
WHEREAS, Section 1.150-2 of the Treasury Regulations requires the Issuer to
declare its reasonable official intent to reimburse prior expenditures for the Project with proceeds
of a subsequent borrowing,
NOW, THEREFORE, BE IT RESOLVED BY the Board of Supervisors of the
County of Contra Costa as follows:
Section 1. The Issuer finds and determines that the foregoing recitals are true and
correct.
Section 2. This declaration is made solely for purposes of establishing compliance
with the requirements of Section 1.150-2 of the Treasury Regulations. This declaration does not
bind the Issuer to mare any expenditure, incur any indebtedness, or proceed with the Project.
ecti n 3. The Issuer hereby declares its official intent to use proceeds of
indebtedness to reimburse itself for Reimbursement Expenditures.
Section 4. This declaration shall take effect from and after its adoption.
DOCSSF1:407340.1
40511-103 2Vir'1C
PASSED AND ADOPTED on December- 14, 1999
ai f the Board of Supervisors
County of Contra Costa, California
[Seal]
ATTEST: Philip J. Batchelor, Clerk of the
Board of Supervisors and
County Administrator
B
Y
Deputy Clerk of the Board of
Supervisors of the County of
Contra Costa, California
rXX:SSFI:A07390.1
40511-103 MAC 2
EXHIBIT A TO REIMBURSEMENT RESOLUTION
Description of Project Estimated Amount to be Borrowed
Animal Shelter Replacement $ 6.0 million
Martinez Ambulatory Care Facility 22.5 million
Family Law Center 4.0 million
Los Medanos Health Center 3.0 million
Upper Summit Center Land Acquisition 3.0 million
And Site Improvements
$ 38.5 million
DOCSSP1:407390.1
40511.103 AIAC
CLERK'S CERTTIRCATE
T, Ann Cervelli Deputy Clerk of the Board of Supervisors of
the County of Contra Costa(the"County), hereby certify as follows:
The foregoing is a full,true and correct copy of a resolution duly adopted at a
regular meeting of the Board of Supervisors of the County duly, regularly and legally held at the
regular meeting place of the County in Martinez, California, on December 14,19916f which
meeting all of said directors of the County had due notice and at which a majority thereof were
present and acting throughout;
At said meeting said resolution was adopted by the following vote:
AYES: Supervisors Gioia, Uilkema, Gerber, DeSaulnier and Canciamilla
NOES: None
ABSTAIN: None
ABSENT: None
I have carefully compared the foregoing with the original minutes of said meeting
on file and of record in my office, and the foregoing is a full, true, and correct copy of the original
resolution adopted at said meeting and entered in said minutes; and
Said original resolution has not been amended, modified or rescinded since the
date of its adoption, and the same is now in full force and effect.
I further certify that an agenda of said meeting was posted at least 72 hours before
said meeting at a location in Martinez, California, freely accessible to the public and a brief
general description of the resolution to be adopted at said meeting appeared on said agenda.
VVI#'i LESS my hand and the seal of the County of Contra Costa this 1A1h 141hday of
December.l9E9 .
[Seal]
Deputy Clerk of the Board of Supervisors
of the County of Contra Costa, California
DOCSSF1:407390.1
40511-103 MAC
C
Contra
TO: BOARD OF SUPERVISORS Costa
FROM: Warren E. Rupf, Sheriff-Coroner County
DATE: december 3, 1999
SUBJECT: Expenses for Attendance at the F. B. I. National Academy
SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
I. RECOMMENDED ACTION:
AUTHORIZE the Sheriff-Coroner to spend $1590.00 for costs associated with employee
Richard Woolard's attendance at the F. B. I. National Academy in Quantico, Virginia, October
4, 1999 to December 17, 1999. This expense is to be differentiated from an advance on funds
or reimbursement.
Summary of Expenses:
Academy Uniforms $ 300.00
Student Assessment $ 150.00
Miscellaneous Expenses $1140.00
($15 per day 76 days)
IL FINANCIAL IMPACT:
NONE. The total cost for this eleven week continuing education program is $1,590.00, which
is available in the Sheriffs Office budget.
Ill. BACKGROUND/REASON(S) FOR RECOMMENDATION(S):
The F. B. I. National Academy is an internationally prestigious program of continuing professional
education. The training program is a comprehensive and balanced eleven week program of
advanced leadership professional instruction. Throughout this training, particular emphasis is
placed on leadership development.
Personnel from the Sheriffs Office attend the National Academy at the personal invitation of the
Director of the Federal Bureau Of Investigation. All major costs, including transportation, are
funded by the Bureau.
CONTINUED ON ATTACHMENT: NO SIGNATURE:
RECOMMENDATION OF COUNTY ADMINISTRATOR _ RECOMMENDATIC� OF BOARD COMMITTEE
APPROVE OTHER
SIGNATURE(S):444 �./
ACTION OF BOARD ON December 14 , 1 9 9 9 APPROVED AS RECOMMENDED _ OTHER
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A TRUE
XX 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.
Contact Person:Kathy Martin,5-1529
CC: Sheriff-Coroner ATTESTED D e c e,m h e r 14 , 1999
CAO,Justice System Administration PHIL BATCHELOR,CLERK OF THE BOARD OF
SUPERVI01tS AND COUNTY ADMINISTRATOR
BY �A-64"I� DEPUTY
N �
BOARD OF SUPERVISORS Contra
r' titi
FPCIM:
William J. Pollacek. Treasurer-Tax Collector � �` Costa
DATIr County
December 3, 1999
SUSJECI:
GOVERNMENT CODE INVESTMENT REVISIONS FOR INVESTMENT POLICY
SPECIFIC REOUEST(S)OR RECOMMENDATION(S)3 BACKGROUND AND JUSTIFICATION
RECOMMENDATION (S):
Accept and Append the July 1999 Government Code Sections 53641.2 and
53635.2 revision on commercial paper investments.
FINANCIAL IMPACT
None
REASON (S) FOR RECOMMENDATION (S):
In July of 1999 Government code sections 53601.2 and 53635.2 on commercial
paper investments were revised by the State Legislature. The revision will be
effective January 1, 2000.
CONSEQUENCES OF NEGATIVE ACTION:
The county Treasurer's Investment Policy is the basis of Treasury investment
activities and reflects all legal mandates.
The inclusion of the aforementioned code revisions in the Treasurer's Investment
Policy will ensure legal compliance.
CONTINUEO ON ATTACHMENT: ___X_YES SIGNATURE:
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMM! �EE
APPROVE OTHER
SIGNATURE
ACTION!OF BOARD ON-- December 1199 APPROVED AS RECOMMENDED XX OTHER
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A TRUE
X X UNANIMOUS(ABSENT - - AND CORRECT COPY OF AN ACTION TAKEN
AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD
ASSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN.
ATTESTED_ December 14 , 1999
CrOfYt�C
CC: PHIL BATCHELOR,CLERK OF THE BOARD OF
SUPERVISORS AND COUNTY ADMINISTRATOR
By ,DEPUTY
X
CONTRA COSTA COUNTY
TREASURER-TAX COLLECTOR
625 COURT STREET, ROOM 100
MARTINEZ, CA 94553-0063
DA E: October 28, 1999
TO: Treasury Oversight Committee Members
FROM: William J. Pollacek, Treasurer-Tax Collecto
SUBJECT: INVESTMENT POLICY
On July 27, 1999, Governor Davis signed AB 343, which will take effect January 1,
2000. AB 343 changes government code 53601.2 and 53635.2 (see attached copy of
the complete bill), eliminates the dollar-weighted average maturity completely and
allows for the purchase of commercial paper up to 40% of an agency's surplus money,
with the maximum percentage per issuer limited to 10% of the total portfolio.
I am recommending we amend the Contra Costa County Investment Policy (June,
1999), Instruments Authorized for Investment, (g) Commercial Paper, to read as follows:
(g) Commercial paper of "prime" quality of the highest ranking or of the
highest letter and numerical rating as provided for by Moody's Investors
Service, Inc., or Standard and Poor's Corporation. Eligible paper is.further
limited to issuing corporations that are organized and operating within the
United States and having total assets in excess of five hundred million
dollars ($500,000,000) and having an "A" or higher rating for the issuer's
debt, other than commercial paper, if any, as provided for by Moody's
Investors Service, Inc., or Standard and Poor's Corporation. Purchases of
eligible commercial paper may not exceed 180 days maturity nor
represent more than 10 percent of the outstanding paper of an issuing
corporation. Purchases of commercial paper may not exceed 4-5 40
percent of the agency's surplus money that may be invested pursuant to
this section. 15 peFGent,
subdivision.
"Dollar- aadditin-R-P! nay be invested only if the dellai: weighted
6 Int
outstandin a! papeF investment multiplied by the numbe-r-4
paper No more than 10 percent of the agency's surplus money may
'l�%y
Treasury Oversight Committee Members
October 28, 1999
Page 2
be invested in the outstanding commercial paper of any single
issuing corporation.
The adoption of this amendment will allow us more flexibility investing for cash-flow
needs while earning a higher yield. Currently most of our commercial paper purchases
are with G. E. Capital Corporation, Ford Motor Credit, American Express and General
Electric Corporation. At September 30, 1999, our outstanding commercial paper
investments were as follows:
Ford Motor Company $ 2,069,000
G. E. Capital Corporation 35,679,000
G. E. Capital Services 8,916,000
American Express 4,112,000
TOTAL $50,776.OQ0
If the Treasury Oversight Committee approves this amendment to the Investment
Policy, it will be submitted to the Board of Supervisors in December for their approval
and to our policy effective January 1, 2000.
WJP:ceb
a.investpoloct99.toc
toc-disk 1
AB 343 Assembly Bill _ CHAPT K-11D Page 1 of 2
BILL NUMBER: AB 343 CHAPTERED
BILL TEXT
CHAPTER 217
FILED WITH SECRETARY OF STATE JULY 2$, 1999
APPROVED BY GOVERNOR JULY 27, 1999
PASSED THE ASSEMBLY JULY 15, 1999
PASSED THE SENATE JULY 12, 1999
AMENDED IN SENATE JUNE 23, 1999
AMENDED IN SENATE JUNE 9, 1999
INTRODUCED BY Assembly Member Campbell
FEBRUARY 11, 1999
An act to amend Section 53635.7 of, and to add Sections 53601.2
and 53635.2 to, the Government Code, relating to local government
finance.
LEGISLATIVE COUNSEL'S DIGEST
AB 343, Campbell. Local agency finance: commercial paper:
investments and borrowing.
(1) Existing law sets forth the various types of investments in
which a local agency may invest the money belonging to or in custody
of the agency, including its surplus money. Purchases of commercial
paper for these purposes may not exceed 15% of the agency's surplus
money which may be invested. An additional 15`x, or a total of 30% of
the agency's money or money in its custody, may be invested in
commercial paper. The additional 15% may be so invested only if the
dollar-weighted average maturity, as defined, of the entire amount
does not exceed 31 days.
This bill instead would authorize counties to make purchases of ,
commercial paper for these purposes that may not exceed 406 of the
county's surplus money that may be invested, without the requirement
that the dollar-weighted average maturity of the entire amount not
exceed 31 days. It would additionally specify that no more than 10%
of the county's surplus money that may be invested may be invested in
the outstanding paper of any single issuing corporation.
(2) Existing law requires the legislative body of a local agency
to discuss, consider, and deliberate each decision that involves
borrowing in the amount of $100, 000 or more as a separate item of
business on the agenda of its meeting.
This bill would provide that for this purpose "borrowing" does not
include bank overdrafts.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 53601.2 is added to the Government Code, to
read:
53601.2. Notwithstanding subdivision (g) of Section 53601, the
board of supervisors of a county may invest in commercial paper of
"prime" quality of the highest ranking or of the highest letter and
numerical rating as provided for by Moody's Investors Service, Inc. ,
or Standard and Poor's Corporation. Eligible paper is further
limited to issuing corporations that are organized and operating
within the United States and have total assets in excess of five
hundred million dollars ($500,000, 000) and an "A" or higher rating
http://www.leginfo.ca-gov/pub/bill/asm/ab_0301-0350/ab-343 bill_i999072$ chaptered.html 10/15/99
Ali 343 Assembly Bill - CHAPTERED Page 2 of 2
for the issuer's debt, other than commercial paper, if any, as
provided for by Moody's Investors Service, Inc. , or Standard and Poor'
s Corporation. Purchases of eligible commercial paper may not exceed
180 days' maturity nor represent more than 10 percent of the
outstanding paper of an issuing corporation. Purchases of commercial
paper may not exceed 40 percent of the agency's surplus money that
may be invested pursuant to this section. No more than 10 percent of
the agency's surplus money that may be invested pursuant to this
section may be invested in the outstanding paper of any single
issuing corporation.
SEC. 2. Section 53635.2 is added to the Government Code, to read:
53635.2. Notwithstanding subdivision (g) of Section 53635, the
board of supervisors of a county may invest in commercial paper of
"prime" quality of the highest ranking or of the highest letter and
numerical rating as provided for by Moody's Investors Service, Inc.,
or Standard and Poor's Corporation. Eligible paper is further
limited to issuing corporations that are organized and operating
within the United States and have total assets in excess of five
hundred million dollars (5500,000,000) and an "A" or higher rating
for the issuer's debt, other than commercial paper, if any, as
provided for by Moody's Investors Service, Inc. , or Standard and Poor'
s Corporation. Purchases of eligible commercial paper may not exceed`
180 days' maturity nor represent more than 10 percent of the
outstanding paper of an issuing corporation. Purchases of commercial
paper may not exceed 40 percent of the agency's surplus money that
may be invested pursuant to this section. No more than 10 percent of
the agency's surplus money that may be invested pursuant to this
section may be invested in the outstanding paper of any single
issuing corporation.
SEC 3. Section 53635.7 of the Government Code is amended to read:
53635.7. In making any decision that involves borrowing in the
amount of one hundred thousand dollars ($100,000) or more, the
legislative body of the local agency shall discuss, consider, and
deliberate each decision as a separate item of business on the agenda
of its meeting as prescribed in Chapter 9 (commencing with Section-.
54950) . As used in this section, "borrowing" does not include bank
overdrafts.
http://www.leginfo.ca.gov/pub/bilVasm/ab_0301-0350/ab_343_bill_i 999072$_chaptered.html 10/15/99