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HomeMy WebLinkAboutMINUTES - 02071984 - FC.1 TO: BOARD OF SUPERVISORS FROM: Finance Committee Contra Costa DATE: February 6, 1984 County SUBJECT: Refinancing County Buildings �`� SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION RECOMMENDATION Authorize employment of legal counsel by the Retirement Board to - review legal issues with respect to the refinancing through a tax-exempt non-profit corporation of county buildings owned by the Retirement Board with the understanding that the County will pay for the full cost (not to exceed $10,000 without prior .author- ization) of the legal services provided , pursuant to Government Code Section 31607 . Also , direct staff to continue with alternate arrangements whereby the lease with the Retirement Association will be renegotiated following the concept already approved by - the _ Retirement Board as a parallel process to be followed should any legal problems ensue with the use of the non-profit corporation financing mechanism . BACKGROUND The Finance Committee met with the County' s financial consultant (Bank of America ) , bond counsel (Orrick , Herrington & Sutcliffe) , the Chairman , County Retirement Board and staff to review the status of refinancing county buildings . It was explained by our consultants that the proposal to utilize the non-profit corpora- tion whereby tax-exempt certificates of participation in a renegotiated lease are issued is a legally complex matter. In order to attain full cooperation by all parties (a unanimous vote by the Retirement Board is required) to the transaction , there must be full understanding of the procedures involved and all parties must feel comfortable with their involvement in this financing mechanism. County Counsel suggested that the Retirement Board be authorized to employ independent legal counsel to review and satisfy any and all of its concerns . Inasmuch as we are attempting to have approvals for this financing in place before March 28, 1984 to indicate to investors in the county' s commercial , paper borrowing program that this component of meeting financial deficit is feasible , it is recommended that independent counsel be employed and that staff be authorized to proceed with parallel refinancing through the Retirement Board with the understanding that costs associated with these refinancing arrangements will be paid by the County. CONTINUED ON ATTACHMENT: YES SIGNATURE: RECOMMENDATION OF CO ADM T TOR X RECOMMENDATION OF BOARD COMMITTEE APPROVE OTH SIGNATURE(S) r er S . W . McPeak ACTION OF BOARD ON February-7— 1984 APPROVED AS RECOMMENDED X OTHER VOTE OF SUPERVISORS X UNANIMOUS (ABSENT -- ) 1 HEREBY CERTIFY THAT THIS IS A TRUE AYES: NOES: AND CORRECT COPY OF AN ACTION TAKEN ABSENT: ABSTAIN: AND ENTERED ON THE MINUTES OF THE BOARD OF SUPERVISORS ON THE DATE SHOWN. CC: Retirement Board ATTESTED February 7, 1984 County Administrator J.R. OLSSON, COUNTY CLERK County Counsel AND EX OFFICIO CLERK OF THE BOARD Auditor-Controller 3 4 County Treasurer , M38e/7-e3 BY DEPUTY