HomeMy WebLinkAboutRESOLUTIONS - 01011992 - 1992-285 CCa-22a
RESOLUTION NO, 92/235
OF THE BOARD OF SUPERVISORS OF THE
COUNTY OF CONTRA COSTA
CALIFORNIA
RESOLUTION APPROVING FORMS OF AND EXECUTION OF AN ACQUISITION
AGREEMENT, A FACILITY LEASE (CONSOLIDATED CAPITAL FACILITIES
PROJECT) , A TRUST AGREEMENT AND LETTERS OF INSTRUCTION;
APPROVING EXECUTION AND DELIVERY OF REFUNDING CERTIFICATES OF
PARTICIPATION (CONSOLIDATED CAPITAL FACILITIES PROJECT)
SERIES OF 1992; APPROVING FORM OF AND DISTRIBUTIONOF
PRELIMINARY OFFICIAL STATEMENT FOR THE SALE OF SAID
CERTIFICATES OF PARTICIPATION', OFFICIAL NOTICE OF SALE AND
NOTICE OF INTENTION TO SELL SAID CERTIFICATES OF
PARTICIPATION; AND AUTHORIZING TAKING OF NECESSARY ACTIONS AND
EXECUTION OF NECESSARY CERTIFICATES
WHEREAS, the County of Contra Costa (the "County")
is a political subdivision of the ;State of California;
WHEREAS, this Berard of Supervisors has heretofore
determined that it would be in the best interest of the County
and the residents of the County to enter into a certificate of
participation financing for the purpose of, defeasing three
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outstanding series of certificates of participation previously
issued under the County Supervisors Association of California
(herein 1CSAC11) program entitled as follows : (1) Fixed Rate
Certificates of Participation (California Counties Lease
Financing Program - Contra Costa County Project) , Series 1986,
dated April 4, 1988 (the 111988Certificates") , '(2) Fixed Rate
Certificates of Participation (California Counties Lease
Financing Program - Contra Costa County Project II`) , Series
1986,` dated April 3, 1989 (the "1989A Certificates") and
(3) Fixed Rate Certificates of Participation (California
Counties Lease Financing Program Contra Costa County
Project III) , Series `1986, dated October 2 1989 (the "1989B
Certificates") (together the "Prior Certificates") ;
WHEREAS, the County as lessor and CSAC as lessee
have previously entered into three site leases, each entitled
"Site Lease" and dated as of April 1, 1988, April 1, 1989 and
October 1, 1989, respectively (together the "Prior .Site
Leases")
WHEREAS, the County has previously entered into
three project lease agreements, each entitled "Project Lease
Agreement'" and dated as of April 1 1988, April 1, 1989 and
October 1, 1989, respectively (together the "Prior Project
Leases") for the lease of certain public facilities (the
"Project'")
WHEREAS, to effectuate the defeasance: of the Prior
Certificates, the County will secure the lease payments 'due
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under the Prior "Project Leases by depositing certain federal
securities with the Prior Trustee, as defined below, 'and :upon
said deposit, the Prior Project Leases and Prior Site Leases
will terminate
WHEREAS, upon such termination, title to the Project
will thereafter vest with the County;
WHEREAS, Contra Costa County Public Facilities
Corporation, a California nonprofit public benefit corporation.
(the "Corporation") , has been incorporated by a group of
public spirited citizens of the County for the specific and
primary purpose of providing financial assistance to the
County of Contra Costa by financing the acquisition,
construction, improvement and remodeling of public buildings
and facilities;
WHEREAS, by its Articles of Incorporation and by its
Bylaws no part of the net earnings, funds or assets of, the
Corporation shall inure to the benefit of any director thereof
or any 'other person, firm or corporation, except the County;
WHEREAS, the Corporation wishes to acquire the
Project, which is situated on certain parcels of land located
in; the City of Martinez, County of Contra Costa, State of.
California {the "Demised Premises") from the County for the
purpose' of enabling the County to refinance the Project and
defease' the Prior Certificates;
WHEREAS, it is proposed that the County enter into
documents entitled "Acquisition Agreement> Relating to the
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Consolidation Capital Facilities Project, " dated as of June 1,"
1992 (herein called the "Acquisition Agreement") , and entitled
"Facility Lease (ConsolidatedCapital Facilities Project) , "
dated as of June 1, 1992 (herein called the "Facility Lease")
with the Corporation;
WHEREAS, under ;the Facility Lease, the County would
be obligated to 'make base rental payments to the Corporation
for the lease of the Project and the Demised Premises,
WHEREAS, it is proposed that all rights to receive
such base rental paymentwill be assigned, without recourse by
the Corporation to U. S. ,Trust Company of -California, N.A. , as
trustee (herein called the "Trustee") , pursuant to an
agreement, entitled "Assignment Agreement Relating to the
Facility Lease (Consolidated Capital Facilities Project) " , and
dated as of dune 1, ' 1992 (herein called the "Assignment
Agreement") ;
WHEREAS, it is further proposed that the
Corporation, the County and the Trustee, enter into a trust
agreement, to be dated as of June 1, 1992 (the "Trust
Agreement") , pursuant to which said trustee will execute and
deliver Refunding Certificates of Participation (Consolidated
Capital Facilities Project), Series of 1992 (the "1992
Refunding Certificates") in an amount equal to the agg'rega'te
principal components' of such payments,, each evidencing, and
representing a fractional undivided interest in such payments,
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WHEREAS, a' form of Official Statement describing the
1992 Refunding Certificates, a form of Official Notice of Salo
inviting bids to purchase the 1992 Refunding Certificates and
a form of Notice of 'Intention to Sell the 1992Refunding
Certificates are on file''with the Clerk of this Board of
Supervisors;'
WHEREAS, forms of Letters of Instructions to the
trustee for the '1988' Certificates, to the trustee for the
1989A Certificates and to the trustee for the 19898
Certificates (the "Prior Trustee") have been submitted to this
Board of Supervisors;
WHEREAS, this Board has been presented with the form
of each document, hereinafter referred to, relating, to the 1992
Refunding Certificates, and the Board has examined and
approved each document and desires to authorize and direct the
execution of such documents and the consummat'i'on of such
financing;
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; and
NOW, THEREFORE, BE IT RESOLVED by the Board of
Supervisors of the County of Contra Costa, as follows.
Section 1. The County hereby specifically finds and
declares that the actions authorized hereby constitute and are
with respect to public affairs of the County and that the
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statements, findings and determinations of the County set
forth above are true' and correct.
Section 2 The form of Acquisition; Agreement
Relating to the Consolidated Capital Facilities Project
between the County and the Corporation, dated as of June 1,
1992, on file with the Clerk of the Beard of Supervisors, is
hereby approved and the Chairman of the Board of Supervisors
and the Clerk of the Board of Supervisors, and their
designees, are hereby- authorized and .directed to execute and
deliver; said Acquisition Agreement in substantially said farm,
with such changes therein as such officers may require or
approve:, such approval to be conclusively evidenced by the
execution and delivery thereof .
Section 3. The form of Facility Lease (Consolidated
Capital Facilities Project) , >dated as of June 1, 1992, on file:
with the Clerk of the Board of Supervisors, is hereby approved'
and the Chairman of the Hoard of Supervisors and the Clerk of
the Board of Supervisors, and their designees, are hereby
authorized and directed to execute and deliver said 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;
provided, however, that the aggregate principal component of
base rental payments payable under the Facility Lease shall
not exceed $40,000,000, the maximum annual base rental
payments payable under the Facility Lease shall not exceed
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$3,000,000, the term of the Facility Lease shall not exceed 35
years and the average interest rate of the interest component
of base rental payments payable under the Facility Lease shall
not. exceed 8%. Among the changes authorized to be made to
such Facility Lease are such changes as are necessary in the
event the County Administrator, upon consultation vdth Prager,
McCarthy & Lewis (herein called the "Financial Advisor") ,
determines it is desirable to (i)' accommodate one or more of
the methods or modes of determining the principal and interest
components of the Base Rental Payments representedby the '1992`
Refunding Certificates or other financing techniques as may be
provided for in the Official Statement, or (ii) obtain
municipal bend insurance.
Section 4 . The form of Trust Agreement Relating to
Refunding {Certificates of Participation Consolidated Capital
Facilities Project, Series of 1992, by and among U. S. Trust
Company of California, N.A. , " as trustee, the Corporation and
the County,''dated as of June 1, 1992,` 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, and their designees, are hereby authorized and
directed to execute and deliver the Trust agreement in
substantially said form, with such changes therein as such
officers may rewire or approve, such approval to be
conclusively evidenced by the execution and delivery thereof .
Among the changes authorized to be made to such Trust
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Agreement are such changes as are necessary in the event the
County Administrator, upon consultation with the Financial
Advisor, determines it is desirable to (i) accommodateone or
more of the methods or modes of determining the principal and
interest components of the Base Rental Payments represented by
the 1992 Refunding Certificates or other financing techniques
as may be provided for in the Official Statement, or
(ii) obtain municipal bond insurance.
Section 5 .' The forms of Letters of Instructions to
the Pricer Trustee, by and between the Corporation and the
County and accepted and agreed to by the Prior Trustee, each
dated as of June' 1, 1992 , on file with the Clerk of the Board
of Supervisors, is hereby approved. The -Chairman of the Beard
of Supervisors and the Clerk of the Board of Supervisors, and
their designees', are hereby authorized and directed to
executed and deliver the Letters of Instructions 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 .
The Financial Adivisor is hereby authorized to arrange for:'. the
purchase of' the "securities to be 'deposited with the Prior
Trustee` in order to defense the Prior Certificates pursuant to
the Letters 'of Instructions and to arrange for the
verifications of the Escrow Funds by an appropriate
verification agent .
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Section The form of Preliminary 'Official
Statement describing, the 1992Refunding Certificates, can ,file
with the Clerk of the Heard of Supervisors, is hereby
approved.. The Financial Adviser is hereby authorized and
directed to cause to be supplied to prospective purchasers of
the 1992 Refunding Certificates copies of a preliminary
official statement in such form, with such additions,
corrections and revisions as may be determined to be necessary
or desirable by the Financial Adviser, Orrick, Herrington &
Sutcliffe, Special Counsel , or the County Counsel's Office,
and to supply the purchaser for the 1992 Refunding
Certificates with copies of a final official statement,
completed to include the interest rate or rates, and final
sale information. The County Administrator is authorized to
certify on behalf of the County that the preliminary form of
the official statement is deemed final as of its date, within
the meaning of Rule 15c2-12 promulgated under the Securities
Exchange Act of 1934 (except' for the omission of certain
pricing, rating and related information as permitted by said
Rule) . The County Administrator, or his designee,' is hereby
authorized and directed to execute and deliver a final'
Official Statement in substantially said form, with such
additions thereto or changes therein as the Financial Advisor,'
County Counsel's Office or Orrick, Herrington & Sutcliffe,
Special Counsel, may require or approve, such; approval to be
conclusively evidenced by the execution and delivery thereof.
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Section 7. The form of proposed Official notice of
Salo inviting bids for the 1992 Refunding Certificates is
hereby approved and adopted as the Official Notice of Sale
inviting bids for the 1992 Refunding Certificates,
substantially in the form on file with the Clerk of the Hoard
of Supervisors, with such additions, changes and corrections
thereto as the County Administrator or his designee shall
require or approve. Sealed proposals shall be received on>
such date as shall be selected by the County Administrator or
his designee, upon consultation with the Financial Advisor,
for the purchase of the 1992 Refunding Certificates, the
interest rate or rates to be ,designated in the bid, in
accordance with the terms and conditions of said Official
Notice of Sale.
The County Administrator or his designee is hereby
authorized to accept the best responsive bid, so long as such
bid shall provide a net interest 'cost to the County of not to
exceed ten percent (14%) ; per annum, and the price to be paid
to
to the County for the 1992 Refunding Certificates shall not be
less than the par value thereof, less a discount of not to
exceed three percent (3%) , or to reject all bids, and if such
net interest cost and price are acceptable to the County
Administrator or his designee, the County Administrator or his
designee is hereby authorized and directed to accept, on
behalf of the County', the best responsive`'bid. The Financial
Adviser is hereby authorized °and 'directed ' to cause to be
mailed to prospective bidders for, the Series if 1992 Refunding.
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Certificates copies of said Official Notice of Sale, subject
to such corrections, revisions or additions as may be `
acceptable to the County Administrator or his designee.
Section I. The form of proposed Notice of Intention
to Sell, in substantially the form on file with the Clerk of
the Board of Supervisors, is hereby approved and adopted as
the Notice of Intention to Sell, and the Clerk of the Board of
Supervisors is hereby authorized and directed to cause said
Notice of Intention to Sell, `subject 'to such corrections,
revisions or additions as may be acceptable to the Clerk of
the Board of Supervisors, to be published once at least
fifteen days before the date of sale in THE BOND BUYER.
Section 9 . The Financial Adivsor, Orrick,
Herrington & Sutcliffe, as special counsel, and the
appropriate County officials be and they are hereby authorized
and directed tocontinueto ,prepare the necessary legal
documents to accomplish said financing, and to take any and
all necessary actions in connection therewith.
Section 10. The execution and delivery, pursuant to
the Trust Agreement, of not to exceed $40, 000,000 aggregate
principal amount of the County of Contra Costa, California,
Refunding Certificates of Participation (Consolidated Capital
Facilities Project) , Series of 1992, evidencing and
representing fractional undivided interests in the rights to
receive base payments payable by the County pursuant to the
Facility Lease, payable in the years and in the amounts with
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interest components with respect thereto as specified in the
Trust Agreement as executed, is hereby authorized and approved.
Section 11. 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
representations, signature certificates, no-litigation
certificates, tag and rebate certificates, the letter of
representations to The Depository Trust Company and
certificates concerning the contents of the Official Statement
distributed in connection with the sale of the 1992 Refunding
Certificates, necessary and desirable to accomplish the
transactions' set forth above.
Section 12. All actions heretofore taken by the
officers and agents of the County with respect to the sale,
execution and delivery of the 1992 Refunding Certificates are
hereby approved and confirmed.
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SeCtion 13 . This Resolution 'shall take effect from
and after its date of adoption.
PASSED AND ADOPTED this 5th day of May, 1992.
by the following vote.
AYES: Supervisors Powers, Fah.den', Schroder,
Torlakson, McPeak
NOES: bone
ABSENT: None
ABSTAIN', None
Chair of the Board of Supervisor's
County of Contra Costa, California
[Seal]
ATTEST: Phil Batchelor, Clerk of the
Board of Supervisors and
County Administrator
By
Deputy Clerk of the Shard of
Supervisors of the County of
Contra Costa, State of California
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