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HomeMy WebLinkAboutMINUTES - 06111985 - 2.2 ..^, -. .. s^;.._. '-. ,,. .•w..�...:.te,.c.:-.ti t'tr.aa.�. Y..0 ri......a_..as.1,_.a.,:...,i......:a...rat..' �.:i..ti...w,.'w^....._v,.. :u'.aua+w...s................... _.. TO: BOARD OF SUPERVISORS ��^' .',,}� FROM: Phil Batchelor, C Ilra County Administrator Costa DATE: June 11, 1985uq/ SUBJECT: CONSIDERATION OF DOCUMENTS RELATED- TO .TH.E, .19.85-86.. BORROWING. PLAN. r SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND'AND JUSTIFICATION RECOMMENDATION: 1. Adopt attached resolution and exhibits related to 1985-86 short term borrowing plan. 2. Authorize the County Administrator, Auditor Controller and Treasurer- Tax Collector to travel to New York for a presentation to rating agencies. FINANCIAL IMPACT: Approval of the resolutions, agreements and schedules will allow County officials to conclude arrangements with rating agencies for the coming fiscal year' s borrowing program, which should improve the County' s chances for favorable financial ratings. BACKGROUND: The attached documents are required to complete the process for the borrow- ing program for 1985-86. They are very similar to documents which the Board has reviewed and approved for the borrowing program in the past. and updated based on 1985-86 information. For 1985-86, $70 million will be borrowed, compared to $65 million in 1984-85. CONSEQUENCES OF NEGATIVE ACTION: If no action is taken on this item, the County will not be able to borrow funds for dry period financing as quickly, which will result in potentially higher borrowing costs. CONTINUED ON ATTACHMENT: YES SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE L—APPROVE OTHER SIGNATURE(S) ACTION OF BOARD ON 47 APPROVED AS RECOMMENDED OTHER VOTE OF SUPERVISORS �Yk UNANIMOUS (ABSENT '— ) I HEREBY VERTIFY THAT THIS IS A TRUE AYES: NOES: AND CORRECT COPY OF AN ACTION TAKEN ABSENT: ABSTAIN: AND ENTERAL' ON THE MINUTES OF THE BOARD OF SUPERVISe:?S ON THE DATE SHOWN. CC: County Administrator ATTESTED Auditor-Controller Treasurer-Tax Collector PHIL BATCHELOR, CLERK OF THE BOARD OF SWC ERVISORS AND COUNTY ADMINISTRATOR M382/7-83 Lilly ^ — - ) XzIG . DEPUTY t RESOLUTION OF THE BOARD OF SUPERVISORS OF THE COUNTY OF CONTRA COSTA PROVIDING FOR THE BORROWING OF FUNDS FOR FISCAL YEAR 1985-1986 AND THE ISSUANCE AND SALE OF 1985-1986 SHORT TERM OPTIONAL PUT TAX AND REVENUE ANTICIPATION NOTES THEREFOR RESOLUTION NO. 85/306 r TABLE OF CONTENTS Page Section 1. Board Determination . . . . . . . . . . . 2 Section 2 . Definitions . . . . .. . . . . . . . . . . 2 Section 3. Terms of the Notes . . . . . . . . . . . 5 (a) Authorization of Issuance . . . . . 5 (b) Denominations, Maturity, Payment and Determination of Interest Rates 6 (i) Interest on Series A Notes 7 (ii ) Interest on Series B Notes 7 (iii ) Interest on Series C Notes 8 (iv) Interest on Series D Notes 9 (v) Interest on Series E Notes 10 (c) Tender for Purchase by Noteholder .10 (d) Registration, Transfer, and Replacement of Notes . . . . . . . . 11 (e) Acceleration of Notes . . . . . . . 12 Section 4. Form of Notes . . . . . . . . . . . . . . 13 Section 5. Use of Proceeds . . . . . . . . . . . . . 13 Section 6. Repayment Pledge . . . . . . . . . . . . 13 Section 7 . Repayment Funds . . . . . . . . . . . . . 14 (a) Establishment . . . . . . . . . . . 14 (b) Investment . . . . . . . . . . . . . is Section 8. Fiscal Agent . . . . . . . . . . . . . . is Section 9 . Execution of Notes . . . . . . . . . . 16 Section 10. Validity of Proceedings . . . . . . . . . 16 Section 11. Tax Covenants . . . . . . . . . . . . . . 16 Section 12. Paying Agent and Registrar . . . . . . . 16 Page Section 13 . Purchase and Remarketing Agreement . . . 17 Section 14. Approval of official Statement . . . . . 17 Exhibit 'A Form of Series A Note . . . . . . . . . A-1 Exhibit B Form of Series B Note . . . . . . . . . B-1 Exhibit C Form of Series C Note . . . . . . . . . . C-1 Exhibit D Form of Series D Note . . . . . . . . D-1 Exhibit E Form of Series E Note . . . . . . . . . . E-1 Exhibit F Form of Election Notice . . . . . . F-1 [to be printed on Note] Exhibit G Form of Fiscal Agency Agreement . . . . . G-1 Exhibit H Form of Contract of Purchase and Dealer Remarketing Agreement . . . . . . H-1 Exhibit I Form of official Statement Relating to the Notes . . . . . . . . . . . . . . I-1 ii 4. RESOLUTION OF THE BOARD OF SUPERVISORS OF THE COUNTY OF CONTRA COSTA PROVIDING FOR THE BORROWING OF FUNDS FOR FISCAL YEAR 1985-1986 AND THE ISSUANCE AND SALE OF 1985-1986 SHORT TERM OPTIONAL PUT TAX AND REVENUE ANTICIPATION NOTES THEREFOR RESOLUTION NO. 85/ 306 WHEREAS, pursuant to Sections 53850 et seq, of the Government Code of the State of California, this Board of Supervisors (the "Board" ) has found and determined that the sum of Seventy Million Dollars ($70, 000, 000) is needed for the requirements of the County of Contra Costa (the "County" ) to satisfy obligations payable from the General Fund of the County, and that it is necessary that said sum be borrowed for such purpose at this time by the issuance . of temporary notes therefor in anticipation of the receipt of taxes, income, revenue, cash receipts and other moneys to be received by the County for the General Fund of the County during or attributable to Fiscal Year 1985-1986; and WHEREAS, the County intends to borrow, for the purposes set forth above, as hereinafter defined, Seventy Million Dollars ($70, 000,000) through the issuance and sale of the Notes (as hereinafter defined) ; and WHEREAS, it appears, and the Board hereby finds and determines, that said sum of Seventy Million Dollars ($70, 000, 000) , when added to the interest payable thereon, does not exceed eighty-five per cent (85%) of the estimated amount of the uncollected taxes, income, revenue, cash receipts and other moneys of the County for the General Fund of the County attributable to Fiscal Year 1985-1986, and available for the payment of the Notes and the interest thereon; and WHEREAS, pursuant to Section 53656 of the Government Code of the State of California, certain revenues . which will be received by the County for the General Fund of the County during or attributable to Fiscal Year 1985-1986 can be pledged for the payment of the Notes and the interest thereon (as hereinafter provided) ; and WHEREAS, Bank of Aqerica National Trust and Savings Association (herein sometimes referred to as the "Underwriter" ) has submitted an offer to purchase the Notes and has submitted a form of Contract of Purchase and Dealer Remarketing Agreement (the "Agreement") to the Board; and WHEREAS, the County has determined that, in order to provide for the remarketing of the Notes of Series A, Series B, Series C and Series D, to reduce interest costs to the County for such Notes and to provide liquidity and additional security to the holders of such Notes, it is appropriate for the County to enter into the Agreement, which provides for the remarketing by the Underwriter of such Notes and the purchase of such Notes under certain circumstances as described therein; and WHEREAS, the County desires to enter into the Agreement so as to provide for such remarketing, to reduce such interest costs and to provide such liquidity and additional security; NOW, THEREFORE, the Board of Supervisors of the County of Contra Costa hereby finds, determines, declares and resolves as follows: Section 1. Board Determination. All of the recitals herein set forth are true and correct, and the Board so finds and determines. Section 2 . Definitions. Unless the context otherwise requires, the terms defined in this Section 2 shall, for all purposes of this Resolution, as it now exists and- as it may be from time to time amended or supplemented, have the meanings herein specified, .as follows: "Accounting Period" means any of the thirteen ( 13 ) accounting periods into which a fiscal year is divided by the County for budgeting and financial reporting purposes. "Adjusted Rate" means the interest rate per annum, with respect to the Notes of Series A, Series B, Series C and Series D, equal to the rate calculated in accordance with Section 3(b) hereof. "Agreement" means the Contract of Purchase and Dealer Remarketing Agreement, between the County and the . Underwriter, as executed and delivered. "Board" means the Board of Supervisors of the County of Contra Costa. - "Business Day" meas a day on which banks in California and New York ,City are not required or authorized to remain closed and on which The New York Stock Exchange is not closed. "County" means the County of Contra Costa, the issuer of the Notes hereunder. 2 040511-0028-099-2853p y "Fiscal Agent" means First Interstate Bank of California having its principal corporate trust office in San Francisco, California. "Initial Rate" means, with respect to each series of Notes, the rate of interest initially borne by such series of Notes as set forth in the Agreement. "Interest Index" means the rate of interest equal to the bond equivalent yield of 91-day United States Treasury bills on the basis of the average per annum discount rate at which such 91-day Treasury bills shall have been sold at the most recent United States Treasury auction. "Interest Payment Date" means (i ) with respect to the Series A Notes and the Series B Notes, July 31, 1985 and every fourth Wednesday (or if such a day is not a Business Day, the next succeeding Business Day) thereafter; (ii) with respect to the Series C Notes, October 30, 1985, January 29, 1986, April 30, 1986 and July 30, 1986 (or if such a day is not a Business Day, the next succeeding Business Day) thereafter; (iii ) with respect to the Series D Notes, January 8, 1986 and July 30, 1986; and (iv) with respect to the Series E Notes, July 30, 1986. "Interest Payment Period" means, with respect to any series of Notes, the period commencing on (and including) an Interest Payment Date and ending on (and including) the day immediately preceding the next succeeding Interest Payment Date (or, in the case of the first Interest Payment Period, the period commencing on (and including) July 1, 1985 and ending on (and including) the day immediately preceding the first Interest Payment Date. "Interest Period" means, with respect to any series of Notes, the period commencing on (and including) a Rate Adjustment Date and ending on (and including) the day immediately preceding the next succeeding Rate Adjustment Date (or, in the case of the first Interest Period, the period commencing on (and including) July 1, 1985 and ending on (and including) the day immediately preceding the first Rate Adjustment Date. 1 "Munifacts Wire" means the electronic wire service offered by The Bond Buyer known as "Munifacts" which provides information on municipal securities to the subscribers thereof.' "Note" or "Notes" means the 1985-1986 Short Term Optional Put Tax and Revenue Anticipation Notes authorized to be issued hereunder. 3 040511-0028-099-2853p "Noteholder" or "Holder" means the registered owner of the Note. "Outstanding, " when used as of any particular time with reference to Note-s, means all Notes theretofore, or thereupon being, authenticated and delivered pursuant to this Resolution except (1) Notes theretofore cancelled or surrendered for cancellation; (2) Notes with respect to which all liability of the County shall have been" discharged in accordance with Section 3(e) ; and (3 ) Notes for the transfer or exchange of or in lieu of or in substitution for which other Notes shall have been authenticated and delivered pursuant to this Resolution. "Paying Agent" means BankAmerica Trust Company of New York, initially acting as paying agent and registrar hereunder and having a principal office in New York, New York. "Purchase Price" means (i) with respect to any Series A Notes purchased in accordance with Section 3 (c) hereof on any Rate Adjustment Date which is not an Interest Payment Date for the Series A Notes, 100% of the principal amount thereof plus accrued interest thereon, if any, to the Rate Adjustment Date and (ii ) with respect to any Series A Notes purchased in accordance with Section 3(c) hereof on any Rate Adjustment Date which is an Interest Payment Date for ,the Series A Notes, and with respect to any Series B Notes, any, Series C Notes and any Series D Notes purchased in accordance with Section 3 (c) hereof, 100% of the principal amount thereof. "Rate Adjustment Date" means (i ) with respect to the Series A Notes, July 31, 1985** and each Wednesday thereafter and (ii) with respect to the Series B Notes, the Series C Notes and the Series D Notes, the Interest Payment Date for each such series, respectively. "Repayment Fund" means the 1985-1986 Short Term Optional Put Tax and Revenue Anticipation Note Repayment Fund established pursuant to Section 7 hereof. "Series A Note" or "Series A Notes" means one or more 1985-1986 Short Term Opconal Put Tax and Revenue Anticipation Notes, Series A, authorized to be issued hereunder. "Series B Note" or "Series B Notes" means one or more 1985-1986 Short Term Optional Put Tax and Revenue Anticipation Notes, Series B, authorized to be issued hereunder. 4 040511-0028-099-2853p . "Series C Note" or "Series C Notes" means one or more 1985-1986 Short Term Optional Put Tax and Revenue Anticipation Notes, Series C, authorized to be issued hereunder. "Series D Note." or "Series D Notes" means one or more 1985-1986 Short Term Optional Put Tax and Revenue Anticipation Notes, Series D, authorized to be issued hereunder. "Series E Note" or "Series E Notes" means one or more 1985-1986 Short Term Optional Put Tax and Revenue Anticipation Notes, Series E. authorized to be issued hereunder. "Treasurer" means the Treasurer-Tax Collector of the County. "Underwriter" means Bank of America National Trust and Savings Association, the purchaser of the Notes issued hereunder and the remarketing agent for such Notes, or its successors or assigns. "Unrestricted Revenues" means taxes, income, revenue, cash receipts, and other moneys which are received for the General Fund of the County during or attributable to Fiscal Year 1985-1986 and which are generally available for the payment of current expenses and other obligations of the County. Section 3 . Terms of the Notes. (a). Authorization of Issuance. Solely for the purpose of anticipating taxes, income, revenue, cash receipts and other moneys to be received by the County for the General Fund of the County during or attributable to Fiscal Year 1985-1.966, and not pursuant to any common plan of financing, . the County hereby authorizes the borrowing of the aggregate principal amount of Seventy Million Dollars ($70, 000, 000) by the issuance of one or more series of temporary notes under Sections 53850 et seq. of the Government Code of the State of California, generally designated as the "County of Contra Costa 1985-1986 Short Term 0 tional Put Tax and Revenue Anticipation Notes. " The NoKs may consist of one or more series of Notes, to be designated, if and to the extent issued, respectively (i ) the "1985-1986 Short Term Optional Put Tax and Revenue Anticipation Notes, Series A"; (ii) the "1985-1986 Short Term Optional Put Tax and Revenue Anticipation Notes, Series B"; (iii ) the "1985-1986 Short Term Optional Put Tax and Revenue Anticipation Notes, Series (iv) the "1985-1986 Short Term Optional Put Tax 5 040511-0028-099-2853p and Revenue Anticipation Notes, Series D" ; and (v) the "1985-1986 Short Term Optional Put Tax and Revenue Anticipation Notes, Series E" ; provided that if only Series E Notes are issued hereunder, such the Notes shall be designated "County of- Contra Costa 1985-1986 Tax and Revenue Anticipation Notes. The actual series of Notes to be issued and the- principal amount, if any, of such series shall be as set forth in the Agreement. (b) Denomination's, Maturity, Payment and Determination .of Interest. Rates. The Notes shall each be in the denomination of $100, 00'0, or any integral multiple thereof, shall be dated July 1, 1985, shall mature on July 30, 1986 and shall bear interest from the Interest Payment Date with respect to the applicable series of Notes next preceding the date of authentication thereof, unless (i ) such date of authentication shall be prior to the first Interest Payment Date with respect to such series, in which case it shall bear interest from July 1, 1985 or (ii ) such date of authentication shall be an Interest Payment Date with respect to such series, in which case such Notes shall bear interest from such date of- authentication; provided, however, that if, as shown by the records of the Paying Agent, interest on the Notes of any series shall be in default, Notes of such series issued in exchange for Notes of such series surrendered for transfer or exchange shall bear interest from the last date to which interest has been paid in full on the Notes of such series or, if no interest has been paid on the Notes of such series, from July 1, 1985 . Interest on each series of Notes shall be payable on each Interest Payment Date with respect to the applicable series at the applicable interest rate or rates for the Interest Payment Period with respect to such series which terminates on the day immediately preceding such Interest Payment Date, computed on a 365-day year basis and actual days elapsed from and including the preceding Interest Payment Date with respect to such series to which interest has been paid. On the Interest Payment Date for each series of Notes, the • Paying Agent shall pay accrued and unpaid interest for each Interest Payment Period with respect to the applicable series of Notes by check or draft mailed to the Holder of each such Note in whose name such Note is registered on the registration books of the Paying Agent at 10: 00 a.m. (New York City time) on such Interest Payment Date. The offer and sale or repurchase of any Note as contemplated by . Section 3 (c) hereof, shall cause the purchaser or the Underwriter, as the case may be, to be recognized as the Molder of record of the Notes so offered and sold or repurchased as of 10:01 a.m. (New York City time) on such Interest Payment Date. 6 040511-0028-099-2853p . The principal of the Notes shall be payable at maturity, only to the registered owner thereof upon surrender thereof, in lawful money of the United States of America, at the principal office of the Paying Agent. (i ) Interest on Series A Notes. For the Interest Period commencing on July 1, 1985 and ending on (and including) July 30, 1985, the Series A Notes shall bear interest at the Initial Rate for the Series A Notes. With respect to each Interest Period thereafter, the rate shall be adjusted, effective each Rate Adjustment Date with respect to the Series A Notes, to the Adjusted Rate for the Series A Notes. Such Adjusted Rate shall be determined as follows: On July 29, 1985, and thereafter on each Monday (or if such day is not a Business Day, the next preceding Business Day) , the Underwriter, having due regard to prevailing financial market conditions, shall determine the rate which, if borne by the Series ,A Notes, would, in its judgment, be the interest rate, but would not exceed the interest rate, which . would enable the Underwriter to remarket the Series A Notes on such Rate Adjustment Date at the Purchase Price, and the interest rate so determined shall be the interest rate for the Interest Period commencing on the next succeeding Wednesday; provided that, if on the date of such determination, the Underwriter holds for its own account 15% or more in aggregate principal amount of the Series A Notes, the Adjusted Rate for the Series -A Notes so determined shall not be more than one hundred .twenty per cent (120%) , nor less than eighty per cent (80%) , of 75% of the Interest Index, but, in any event, the rate which would, in its judgment, enable the Underwriter to remarket the Series A Notes on the next succeeding Rate Adjustment Date for the Series A Notes at the Purchase Price. The Underwriter shall disseminate such Adjusted Rate on the Munifacts Wire on the date it is determined and also shall give telephonic notice (subsequently confirmed by written notice) to the County, the Paying Agent and the Fiscal Agent of such Adjusted Rate. if .the Underwriter for any reason fails to determine the Adjusted Rate, or if a court finds the method of determining the Adjusted Rate set forth above to be unenforceable, the Adjusted Rate for the Series A Notes shall be 75% of the Interest Index as of each Rate Adjustment Date. (ii) Interest on Series B Notes. For the Interest Period commencing on July 1, 1985, and ending on (and including) the day immediately preceding the first Rate Adjustment Date with respe'ct to the Series B Notes, the Series B Notes shall bear interest at the Initial Rate for the Series B Notes. With respect to each Interest Period thereafter, the interest rate shall be adjusted, effective each Rate Adjustment Date with respect to the Series B Notes, 7 040511-0028-099-2853p to 'the Adjusted Rate for the Series B Notes. Such Adjusted Rate shall be determined as follows: On the Monday next preceding each Rate Adjustment Date with respect to the Series B Notes (or if such day is not a Business Day, the next preceding Business Day) , the Underwriter, having due regard to prevailing financial market conditions, shall determine the rate which, if borne by the Series B Notes, would, in its judgment, be the interest rate, but would not exceed the interest rate, which would enable the Underwriter to remarket the Series B Notes on the next succeeding Rate Adjustment Date with respect to the Series B Notes at the Purchase Price, and the interest rate so determined shall be the interest rate for the Interest Period commencing on such Interest Payment Date; provided that, if on the date of such determination, the Underwriter holds for its own account 15%. or more in aggregate principal amount of the Series B Notes, the Adjusted Rate so determined shall not be more than one hundred twenty per cent (120%) , nor less than eighty per cent (80%) , of 80% of the Interest Index, but, in any event, the rate which would, in its judgment, enable the Underwriter to remarket the Series B Notes on the next succeeding Rate Adjustment Date for the Series B Notes at the Purchase Price. The Underwriter shall disseminate such Adjusted Rate on the Munifacts Wire on the date it is determined and shall also give telephonic notice (subsequently confirmed by written notice) to the County, the Paying Agent and the Fiscal Agent of such Adjusted Rate. If the Underwriter for any reason fails to determine the Adjusted Rate, or if a court finds the method of determining the Adjusted Rate set forth above to be unenforceable, the Adjusted Rate for the Series B Notes shall be 80% of the Interest Index as of each Rate Adjustment Date. (iii ) Interest on Series C Notes. For the Interest Period commencing on July 1, 1985, and ending on (and including) the day next preceding the first Rate Adjustment Date with respect to the Series C Notes, the Series C Notes shall bear interest at the Initial Rate for the Series C Notes. With respect to each Interest Period for the Series C Notes thereafter, the interest rate shall be adjusted, effective each Rate Adjustment Date with respect to the Series C Notes, to the Adjusted Rate for the Series C Notes. Such Adjusted Rate shall be determined as follows: On the Monday next preceding each Rate Adjustment Date with respect to the Series C Notes (or if such day is not a Business Day, the next preceding Business Day) , the Underwriter, having due regard to prevailing financial market conditions, shall determine the rate which, if borne by the Series C Notes, would, in its judgment, be the interest rate, but would not exceed the interest rate, which would enable the Underwriter to remarket the Series C Notes on such Rate 8 040511-0028-099-2853p Adjustment Date at the Purchase Price, and the interest rate so determined shall be the interest rate for the Interest Period commencing on such Rate Adjustment Date; provide that, if on the date of such determination, the Underwriter holds for its own account 15% or more in aggregate principal amount of the Series C Notes, the Adjusted Rate so determined shall not be more than one hundred twenty per cent ( 120%) , nor less than eighty percent (80%) , of 85% of the Interest Index, but, in any event, the rate which would, in its judgment, enable the Underwriter to remarket the Series C Notes on the next succeeding Rate Adjustment Date at the Purchase Price. The Underwriter shall disseminate such Adjusted Rate on the Munifacts Wire on the date it is determined and also shall give telephone notice (subsequently confirmed by written notice) to the County, the Paying Agent and the Fiscal Agent of such Adjusted Rate. If the Underwriter for any reason fails to determine the Adjusted Rate, or if a court finds the method of determining the Adjusted Rate set forth above to be unenforceable, the Adjusted Rate for the Series C Notes shall be 85% of the Interest Index as of each Rate Adjustment Date. (iv) Interest on Series D Notes. For the Interest Period commencing on July 1, 1985, and ending on (and including) the day next preceding the Rate Adjustment Date with respect to the Series D Notes, the Series D Notes shall bear interest at the Initial Rate for the Series D Notes. With respect to the Interest Period for the Series D Notes thereafter, the interest rate shall be adjusted, effective on the Rate Adjustment Date with respect to the Series D Notes, to the Adjusted Rate for the Series D Notes. Such Adjusted Rate shall be determined as follows: On the Monday next preceding the Rate Adjustment Date with respect to the Series D Notes (or if such day is not a Business Day, the next preceding Business Day) , the Underwriter, having due regard to prevailing financial market conditions, shall determine the rate which, if borne by the Series D Notes, 'would, in its judgment, be the interest rate, but would not exceed the interest rate, which would enable the Underwriter to remarket the Series D Notes on such Rate Adjustment Date at the Purchase Price, and the interest rate so determined shall be the interest rate for the Interest Period commencing on such Rate Adjustment Datet provided that, if on the date of such determination, the Underwriter holds for its own account 15% or more in aggregate principal amount of the Series D Notes, the Adjusted Rate so determined shall not be more than one hundred twenty per cent ( 120%) , nor less than eighty per cent (80%) , of 85% of the Interest I Index, but, in any event, the rate which would, in its judgment, enable the Underwriter to remarket the Series D Notes on the next succeeding Rate Adjustment Date at the Purchase Price. The 9 040511-0028-099-2853p Underwriter shall disseminate such Adjusted Rate on the Munifacts Wire on the date it is determined and also shall give telephone notice ( subsequently confirmed by written notice) to the County, the Paying Agent and the Fiscal Agent of such Adjusted Rate- If the Underwriter for any reason fails to determine the Adjusted Rate, or if a court finds the method of determining the Adjusted Rate set forth above to be unenforceable, the Adjusted Rate for the Series D Notes shall be 85% of the Interest Index as of each Rate Adjustment Date. (v) Interest on the Series E Notes. The Series E Notes shall bear interest to and including July 29, 1986 at the Initial Rate for the Series E Notes. NOTWITHSTANDING THE FOREGOING, THE ADJUSTED RATE WITH RESPECT TO ANY SERIES OF NOTES SHALL NOT EXCEED THE LESSER OF 12% OR THE MAXIMUM RATE PERMITTED BY APPLICABLE LAW. (c) Tender for Purchase by Noteholder. Any registered owner of a Note of Series A, Series B, Series C or Series D shall have the right to tender such Note, or any $100, 000 portion thereof, for purchase by the Underwriter in accordance with the terms of the Agreement on any Rate Adjustment Date for such Note by (i ) giving telephonic notice to the Paying Agent prior to 10:00 a.m. (New York City time) on the Tuesday next preceding the Rate Adjustment Date (or if such Tuesday is not a Business Day, on the next preceding Business Day) , and (ii) delivering such Note, with the Election Notice on the reverse thereof, completed and signed by the Noteholder or his duly authorized representative, to the Paying Agent prior to 10:00 a.m. (New York City time) on such Rate Adjustment Date. Such Election Notice shall be substantially in the form of Exhibit F attached hereto. The Paying Agent shall notify, by telephone, the County and the Underwriter upon receipt of each telephonic notice of tender. Upon the receipt of such notification, the Underwriter will use its best efforts to offer for sale and . to sell each Note or portion thereof for which telephonic notice of tender has been given, at the Purchase Price, for delivery on such Rate Adjustment Date. If on such Rate Adjustment Date the Underwriter has not been able to arrange for the resale, at the Purchase Price, of all Notes or portions thereof for which Noteholder' s Election Notices have been filed with the Paying A6ent, the Underwriter, .pursuant to and subject to the terms and conditions of the Agreement, shall purchase, at the Purchase Price, the aggregate principal amount of Notes or portions thereof which have not been remarketed by 12:30 p.m: (New York City time) on such Rate Adjustment Date. The Paying Agent shall pay the Purchase Price of such Notes tendered for purchase by check or draft mailed to each registered owner of any Note or 10 040511-0028-099-2853p portion thereof for which a Noteholder' s Election Notice has been filed, against delivery of such Note. Funds for the payment of such PurchasePriceshall be advanced by the Underwriter to the Paying Agent at 10:00 a.m. (New York City time) on such Rate Adjustment Date and shall, if the Underwriter is able to remarket such Note, be reimbursed to the Underwriter from the proceeds of such remarketing. Nothing contained herein or in the Agreement shall obligate the County to repurchase any Notes tendered for purchase, such obligation being only that of the Underwriter and then only in accordance with the terms of the Agreement. (d) Registration, Exchange, Transfer, and Replacement of Notes. Any Note may, in accordance with its terms, be transferred, or exchanged for a like aggregate principal amount of the same series and in authorized denominations, upon the books required to be .kept by the Paying Agent pursuant to the provisions hereof, by the person in whose name it is registered, in person or by his duly authorized attorney, upon surrender of such Note for cancellation, and, in the case of a transfer, accompanied by delivery of a written instrument of transfer, duly executed in a form approved by the Paying Agent. Transfer of a Note shall not be permitted with respect to any Note or Notes or portions thereof for which a notice of tender of purchase has been given in accordance with Section 3(c) . Whenever any Note shall be surrendered for transfer or exchange or tendered for payment in accordance with Section 3 (c) , the County shall execute and the Paying Agent shall authenticate, if required, and deliver a new Note or Notes of authorized denominations of the same series for a like aggregate principal amount. The Paying Agent shall require the Noteholder requesting such transfer or exchange to pay any tax or other governmental charge required to be paid with respect to such transfer or exchange. The Paying Agent will keep or cause to be kept, at its principal office in New York, New York, sufficient books for the registration and transfer of the Notes, which shall at all times be open to inspection by the County. Upon presentation for such purpose, the Paying Agent shall, under such reasonable regulations As it may prescribe, register or transfer or cause to be registered or transferred, on such books, Notes as hereinbefore provided. If any Note shall become mutilated, the County, at the expense of the Holder of said Note, shall execute, and the Paying Agent shall thereuponauthenticateand deliver a new Note of like tenor and number in exchange and substitution for the Note so mutilated, but only upon 11 040511-0028-099-2853p surrender- to the Paying Agent of the Note so mutilated. Every mutilated Note so surrendered to the Paying Agent shall be cancelled by it and delivered to, or upon the order of, the County. If any Note shall be lost, destroyed or stolen, evidence of such loss,` destruction or theft may be submitted to the County and the Paying Agent and, if such evidence be satisfactory to both and indemnity satisfactory to them shall be given, the County, at the expense of the owner, shall execute, and the Paying Agent shall thereupon authenticate and deliver a new Note of like tenor and number in lieu of and in substitution for the Note so lost, destroyed or stolen (or if any such Note shall have matured or shall be about to mature, instead of issuing a substitute Note, the Paying Agent may pay the same without surrender thereof) . The Paying Agent may require payment of a sum not exceeding the actual cost of preparing each new Note issued pursuant to this paragraph and of the expenses which may be incurred by the County and the Paying Agent in the premises. Any Note issued under these provisions in lieu of any Note alleged to be lost, destroyed or stolen shall constitute an original additional contractual obligation on the part of the County whether or not the Note so alleged to be lost, destroyed or stolen be at any time enforceable by anyone, and shall be entitled to the benefits of this Resolution with all other Notes secured by this Resolution. The County and the Paying Agent may treat the person in whose name any Note is registered as the owner of such Note for the purpose of receiving payment of principal of and interest on such Note and for all other purposes whatsoever, and neither the County, nor the Paying Agent shall be affected by notice to the contrary. All Notes surrendered for payment or registration of transfer, if surrendered to any person other than the . Paying Agent, shall be delivered to the Paying Agent and shall be promptly cancelled by it. The County may at any time deliver to the Paying Agent for cancellation any Notes previously authenticated and delivered hereunder which the County may have acquired in any manner whatsoever, and all Notes so delivered shall promptly be cancelled by the Paying Agent. No Note shall be authenticated in lieu of or in exchange for any Notes canceled as provided herein, except as expressly permitted hereunder. All cancelled Notes held by the Paying Agent shall be disposed of as directed by the County. (e) Acceleration of Notes. If the County fails to pay interest on any Note on any Interest Payment Date occurring prior to the Interest Payment Date on July 30, 1986 and such failure continues -for a period of five Business 12 040511-0028-099-2853p Days, all- Notes shall become due and payable ten Business Days following the end of such grace period. Notice of such acceleration of maturity of the Notes shall be given by the County which notice shall specify the date on which all Notes shall mature. Notice~of . acceleration of maturity shall be deemed given when deposited in the United States mail, first class postage prepaid, addressed to the Paying Agent and to each registered owner at the address shown on the books of registration maintained by the Paying Agent for that purpose, or if there is no such address, in care of the Paying Agent. Any failure to receive such notice or any defect therein shall not affect the accelerated maturity date of the Notes. The amount payable by the County on acceleration of the Notes shall be the principal amount of the Notes, without any premium or penalty, plus accrued and unpaid interest to the date specified in such notice as the date of maturity. The Notes shall bear interest until paid at the rate of interest in effect on the date of such default in the payment of interest. If on the maturity date specified in the notice the County deposits or causes to be deposited with the Paying Agent, in immediately available funds, a sum sufficient to pay the aggregate principal . amount of Notes Outstanding and interest thereon to the date specified in the notice, then interest on such Notes shall cease to accrue from and after such date and the obligation of the County with respect to such Notes shall be discharged and thereafter such Notes shall be payable only from the moneys on deposit therefor with the Paying Agent. Section 4. Form of Notes. The Notes shall be issued only in fully registered form, without coupons. The Series A Notes, the Series B Notes, the Series C Notes, the Series D Notes and the Series E Notes shall be substantially in the form and substance set forth in Exhibit A, Exhibit B, Exhibit C, Exhibit D and Exhibit E, respectively, attached hereto and by reference incorporated herein, the blanks in said form to be filled in with appropriate words and figures. Section 5. Use of Proceeds. The moneys borrowed under the Notes shall be deposited in the General Fund of the County and used and expended by the County for any purpose for which it is authorized to expend funds from the General Fund of the County. I Section 6. Repayment Pledge. The principal amount of the Notes, together with the interest thereon, shall be payable from taxes, income, revenue, cash receipts and other moneys which are received. by the County for the General Fund of the County during or attributable to Fiscal Year 1985-1986. 13 040511-0028-099-2853p . .As security for the payment of the principal of and interest on the Notes, the County hereby pledges the first Forty Million Dollars ($40, 000, 000) of the first installment of property taxes (to be received by the County during December 1985, and attributable to the County on the secured roll which becomes due and payable on November 1, 1985 and delinquent on December 10, 1985) which is transferred to the general fund of the County in the Accounting Period ending January 10, 1986; and the first Thirty Million Dollars ($30, 000, 000) , together with an amount sufficient (net of earnings to the date of such deposit on moneys in the Repayment Fund) (i ) to satisfy and make up any deficiency in the amount required to be deposited in the Repayment Fund during any prior Accounting. Period and (ii ) to pay the interest on the Notes accruing and unpaid after the date of such deposit to maturity at an assumed interest rate of the lesser of 12% per annum or the maximum legal rate of interest (to the extent the actual interest rate cannot be determined) , of the second installment of property taxes (to be received by the County during April 1986, and attributable to the County on the secured roll which becomes due and payable on February 1, 1986 and delinquent. on April 10, 1986) which is transferred to the general fund of the County in the Accounting Period ending on May 13, 1986. In the event that by the next to last Business Day of any such Accounting Period there are insufficient secured property taxes so transferred to permit the deposit into the Repayment Fund of the full amount thereof to be deposited from said secured property taxes in such Accounting Period, then the amount of any deficiency shall be satisfied and made up on such date from any other moneys of the County lawfully available for the payment of the principal of the Notes and the interest thereon. In the event that on such date the amount of other moneys of the County lawfully available for said payment is insufficient to fully satisfy and make up any deficiency in the deposit into the Repayment Fund required hereunder, then such deficiency shall be satisfied and made up from the first other moneys of the County lawfully available for said payment when the same are received by the County. The moneys required to be deposited in the Repayment Fund are hereinafter called the "Pledged Revenues. " The principal of the Notes and the interest thereon shall constitute a first lien and charge against and Shall be payable from the first moneys received by the County from the Pledged Revenues, and, to the extent not so paid, shall be paid from any other moneys of the County lawfully available therefor (all as provided in Sections 53856 and 53857 of the Government Code) . Section 7 . Repayment Fund. (a) Establishment. In the Accounting Period in which received, the Pledged Revenues (in cash or in investments permitted by Section 7(b) hereof 14 040511-0028-099-2853p which have a market value on such Business Day equal to the amount required to be deposited on such Business Day) shall be deposited by the County with, and held in trust by, the Fiscal Agent, as hereinafter appointed, in a special fund designated the 1985-1586 Short Term Optional Put Tax and Revenue .Anticipation Note Repayment Fund and shall be applied as directed in this Resolution. The principal of and interest on the Notes shall constitute a first lien and charge on amounts deposited in the Repayment Fund and any money deposited in the Repayment Fund shall be for the ratable benefit of the Holders of the Notes. Until the principal of the Notes and all interest due thereon are paid in full or until provision has been made for the payment in full of the principal of and interest on the Notes, the moneys in the Repayment Fund shall be applied only for the purposes for which such Repayment Fund was created. On each Interest Payment Date after May 13, 1986, the Fiscal Agent shall transfer to the Paying Agent the amount necessary to pay interest on the Notes on such Interest Payment Date if and to the extent the County has not provided funds to the Paying Agent for such purpose. On the maturity date of the Notes the amount of money in the Repayment Fund necessary to pay principal of and interest due at maturity on the Notes shall be transferred to the Paying Agent. (b) Investment. Moneys in the Repayment Fund shall be ,invested as permitted by Section 53601 of the Government Code, provided that no moneys shall be invested in investments permitted by subsection (h) (except that moneys may be invested in negotiable certificates of deposit of the fifty largest banks in the United States or domestic subsidiaries of the largest fifty world banks, so long as such world banks are domiciled in the following countries: Western Hemisphere - United States and Canada; Europe - France, Germany (West) , Netherlands, Norway, Sweden, Switzerland and the United Kingdom; Asia - Australia and Japan, as ranked by size of deposits) and subsection (i ) (to . the extent that subsection ( i) applies to reverse repurchase agreements) of said Section 53601 . Investments of moneys on deposit in the Repayment Fund shall not have maturity dates later than the maturity date of the Notes. The proceeds of any such investments shall be retained by the Fiscal Agent in the Repayment Fund until thelprincipal of all of the Notes and the unpaid interest thereon shall have been fully paid or until provision shall have been made for such payment, at which time any excess amount shall be transferred to the General Fund of the County. Section 8. Fiscal Agent. First Interstate Bank of California in San Francisco, California, is hereby appointed fiscal agent for the Notes " (the "Fiscal Agent" ) . Funds held 15 040511-0028-099-2853p by the Fiscal Agent in the Repayment Fund shall be held and invested As herein provided. The form of Fiscal Agency Agreement attached hereto-as Exhibit G is hereby approved, and the Treasurer is hereby authorized to execute and directed to execute the same substantially in the form attached with such changes as he deems necessary. Section 9. Execution of Notes. The Treasurer is hereby authorized to sign the Notes by use of his facsimile signature, and the Clerk of the Board of Supervisors of the County is hereby authorized to countersign the Notes by use of his facsimile signature and to affix the seal of the Board thereto by facsimile impression thereof, and said officers are hereby authorized to cause the blank spaces thereof to be filled in as may be appropriate. The Notes shall not be valid, however, unless and until the Paying Agent shall have. manually authenticated such Notes. Section 10. Validity of Proceedings. It is hereby covenanted and warranted by the County that all representations and recitals contained in this Resolution are true and correct, and that the County, And its appropriate officials, have duly taken all proceedings necessary to be taken by them, and will take any additional proceedings necessary to be taken by them, for the levy, collection and enforcement of the taxes, revenue, income, cash receipts and other moneys pledged hereunder in accordance with law and for carrying out the provisions of this Resolution. Section 11. Tax Covenants. The Board, as issuer of the Notes on behalf of the County, hereby covenants that it will make no use of the proceeds of the Notes which would cause the Notes to be "arbitrage bonds" under Section 103(c) of the Internal Revenue Code of 1954, as amended (the "Code" ) or "federally-guaranteed obligations" under Section 103(h) of the Code or obligations described in Section 103 (o) of the Code; and, to that end, so long as any of the Notes are - outstanding, the Board, with respect to the proceeds of the Notes, and all officers having custody or control of such proceeds, shall comply with all requirements of said section and the regulations of the United States Department of the Treasury thereunder, to the extent that such regulations are, at the time, applicable and 4n effect, so that the Notes will not be "arbitrage bonds, " "federally-guaranteed obligations" or obligations described in Section 103(o) of the Code. Section 12. Paying Agent and Registrar. BankAmerica Trust Company of New' York, New York, New York is hereby designated the registrar and paying agent of the County for the payment of principal of and interest on the Notes. The County hereby directs and authorizes the payment 16 040511-0028-099-2853p by the Paying Agent of the interest on and principal of the Notes when such become due and payable, from an account held by the Paying Agent in the name of the County in the manner set forth herein. The County hereby covenants to deposit funds in such account at such times and in such amounts to provide - sufficient moneys to make interest payments on each Interest Payment Date and to pay the principal of and interest on the Notes on the day on which they mature. Payment of the Notes shall be in accordance with the terms of the Notes and this Resolution. This appointment shall not preclude the County from removing the Paying Agent and appointing one or more successors thereto, or appointing additional financial institutions to act as paying agent or registrar, all without notice to or the consent of the registered owner of any Note. Any such successor paying agent shall be a bank or trust company with offices in New York, New York acceptable to the County and the Underwriter. Section 13 . Purchase and Remarketing _Agreement. The Agreement will be entered into with the Underwriter, substantially in the form attached hereto as Exhibit H, whereby the Underwriter shall purchase the Notes from the County and purchase or remarket the -Notes as more particularly set forth therein. Such Agreement is hereby approved with such additions, changes or corrections as the County Treasurer may approve upon consultation with County Counsel . The County Treasurer is hereby authorized and directed to determine which series of the Notes shall be issued and the principal amount of each such series, not to exceed the aggregate principal amount for all series of Notes of $70,000, 000. Such determinations shall be set forth in the Agreement. The County Treasurer is hereby authorized and directed to negotiate, with the Underwriter, the Initial Interest Rates, not to exceed twelve percent ( 12%) per annum, on the Notes and the discount, if any, on the purchase price . of the Notes paid by the Underwriter. If such Initial Interest Rates (not to exceed twelve percent (12%) per annum) and said purchase price are acceptable to the County . Treasurer, the County Treasurer is hereby further authorized and directed to execute and deliver the Agreement and such other documents required to IDe executed and delivered thereunder, for and in the name and on behalf of the County. Section 14. Approval of Official Statement. The form of Official Statement- relating to the Notes attached hereto as Exhibit I , substantially ih .the form presented to this meeting, is hereby approved with such additions, changes . and corrections as the Treasurer may approve upon consultation with the County' s Bond Counsel; the distribution 17 040511-0028-099-2853p of said Official Statement in preliminary form is hereby ratified;. and the Treasurer and the Underwriter are hereby authorized to, distribute .copies of said Official Statement in final form in connection with the offering and sale of the Notes. PASSED AND ADOPTED by the Board of Supervisors of the County of Contra Costa this 11th day of June, 1985, by the following vote: AYES: Supervisors Powers , Schroder, McPeak , Torlakson , Fanden NOES: None ABSENT: None Na)fcy C. Fanden Chairman oe the Board of Supervisors of the County of Contra Costa (Seal) ATTEST: Philip J . Batchelor, Clerk of the Board of Supervisors and . County Administrator By 0 a- Deputy Xler k 18 040511-0028-099-2853p EXHIBIT A COUNTY OF CONTRA COSTA, CALIFORNIA 1985-1986 SHORT TERM OPTIONAL PUT TAX AND REVENUE ANTICIPATION NOTE SERIES A REGISTERED No. REGISTERED $ Date: 1 1985 FOR VALUE RECEIVED, the County of Contra Costa (the "County" ) , State of California, acknowledges itself indebted to and promises to pay to or registered assigns, the principal sum of Dollars ($ ) on July 30, 1986, unless payment of this Note shall have been duly made or provided for upon acceleration of the maturity hereof, and to pay interest on the balance of said principal sum from time to time remaining unpaid from and including the Interest Payment Date (as hereinafter defined) next preceding the. date of authentication hereof, unless this Note is authenticated prior to July 31, 1985 or as of a day that is an Interest Payment Date, in which case it shall bear interest from July 1, 1985 or from such Interest Payment Date, respectively; provided, however, that if at the time of registration o£ this Note, interest is in default on this Note, such Note shall bear interest from the Interest Payment Date to which interest has previously been paid, or from July 1, 1985 if no interest has been paid hereon, until the principal hereof shall have become due. Interest, computed on a 365-day year basis and actual days elapsed, is payable on July 31, 1985, and on each fourth Wednesday thereafter or if such day is not a Business Day, on the next succeeding Business Day (each hereinafter referred to as an "Interest Payment Date!" ) and at maturity (and accrued to each such date) , at the Initial Rate to and . including July 30, 1985 and then at an Adjusted Rate all as more fully described below, in lawful money of the United States of America until payment in full of said principal SUM. Interest paid on an Interest Payment Date shall be paid by check or draft mailed or delivered to the person in whose name this Note is registeredjat 10:00 a.m. (New York City time) on such Interest Payment Date. The principal of this Note shall be payable only to the registered owner hereof upon presentation and surrender of this Note as the same shall fall due at maturity or upon acceleration at the principal office of BankAmerica Trust Company of New York, as Paying Agent, Attention: Corporate Trust Administration, 40 Broad Street, 4th Floor, New York, A-1 040511-0028-099-2853p New York -10004. No interest shall be payable for any period after maturity during which the holder hereof fails to properly present this Note for payment. The Initial Rate shall be % per annum. On July 31, 1985 and on each Wednesday thereafter, the interest rate may be adjusted, effective on each Wednesday (a "Rate Adjustment Date" ) , to an Adjusted Rate. An Adjusted Rate, effective on a Rate Adjustment Date for the period commencing on such Rate Adjustment Date to and including the day immediately preceding the next Rate Adjustment Date (an "Interest Period" ) , shall be a rate determined as follows: On July 29, 1985 and thereafter on each Monday (or, if such day is not a Business Day, the next preceding Business Day) , the Underwriter, having due regard to prevailing financial market conditions, shall determine the rate which, if borne by the Series A Notes, would, in its judgment, be the interest rate, but would not exceed the interest rate, which would enable the Underwriter to remarket the Series A Notes on the next succeeding Rate Adjustment Date with respect to the Series A Notes at the Purchase Price (as defined in the Resolution) , and the interest rate so determined shall be the interest rate for the Interest Period commencing on the next succeeding Wednesday; provided that, if on the date of such determination, the Underwriter holds for its own account 15% or more in aggregate principal amount of the Series A Notes, the Adjusted Rate for the Series *A Notes so determined shall not be more than one hundred twenty per cent (120%) , nor less than eighty per cent (80%) , of 75% of the Interest Index, but, in any event, the rate which would, in its judgment, enable the Underwriter to remarket the Series A Notes on the next succeeding Rate Adjustment Date at the Purchase Price. The Underwriter shall disseminate such Adjusted Rate on the Munifacts Wire on the date it is determined and also shall give telephonic notice ( subsequently confirmed by written notice) to the County, the Paying Agent and the Fiscal Agent of such Adjusted Rate. If the Underwriter for any reason fails to determine the Adjusted Rate, or if a court finds the method of determining the Adjusted Rate set forth above to be unenforceable, the Adjusted Rate for the Series A Notes shall be 75% of the Interest Index as of each Rate Adjustment Date. NOTWITHSTANDING THE FOREGOING, THE ADJUSTED RATE SHALL NOT EXCEED THE LESSER OF 12% OR THE MAXIMUM RATE PERMITTED BY APPLICABLE LAW. Notwithstanding the foregoing, if the County fails to pay interest on the Notes 'on any Interest Payment Date for any series of Notes prior to July 30, 1986 and such failure continues for a period of five Business Days, all Notes shall become due and payable ten Business Days following the end of A-2 040511-0028-099-2853p such grace period. Notice of such acceleration of maturity of the Notes shall be given by the County which notice shall specify the date on which all Notes shall mature. Any failure to receive such notice or any defect therein shall not affect the accelerated maturity date of the Notes, all as more fully provided in Section 3(e) of the Resolution. REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS NOTE SET FORTH ON THE REVERSE HEREOF AND SUCH FURTHER PROVISIONS SHALL FOR ALL PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH AT THIS PLACE. It is hereby .certified, recited and declared that this Note is one of an authorized issue of County of Contra Costa 1985-1986 Short Term Optional Put Tax and Revenue Anticipation Notes, Series A (the "Series A Notes" ) aggregating Dollars —) in principal amount issued as one of series of County of Contra Costa 1985-1986 Short Term Optional Put Notes (the "Notes" ) aggregating Seventy Million Dollars ($70, 000, 000) in aggregate principal amount; the Notes are all made, executed and given pursuant to and by authority of a Resolution (the "Resolution" ) of the Board of Supervisors of the County duly passed and adopted under and by authority of Article 7. 6 (commencing with Section 53850) of Chapter 4, Part 1, Division 2, Title 5, California Government Code, and that all acts, conditions and things required to exist, happen and be performed precedent to and in the issuance of this Note have existed, happened and been performed in regular and due time, form and manner as required by law, and that this Note, together with all other indebtedness and obligations of the County, does not exceed any limit prescribed by the Constitution or statutes of the State of California. Every capitalized term used herein which is not defined herein shall have the same meaning as provided therefor in the Resolution. The principal amount of the Notes, together with the interest thereon, shall be payable from taxes, income, revenue, cash receipts and other moneys which are received for or accrued to the General Fund of the County during Fiscal Year 1985-1986. As security for the payment of the principal of and interest on�the Notes, the County has pledged to deposit in trust in the Repayment Fund (as that term is defined in the Resolution) : the first $40j000, 000 of the first installment of secured property taxes (to be received by the County during December 1985, and attributable to the County on the secured roll which becomes due and payable on November 1, 1985 and delinquent on December 10, 1985) , which is transferred to the general fund of the County in the Accounting Period ending on January 10, 1986; and the first $30, 000,000, together with an amount sufficient (net of A-3 040511-0028-099-2853p earnings on moneys to the date of such deposit in the - Repayment- Fund) (i ) to satisfy and make up any deficiency in the amount required to be deposited in the Repayment Fund during any prior Accounting Period and (ii ) to pay the interest on the Notes._ accruing and unpaid after the date of such deposit to maturity at an assumed interest rate of the lesser of 12% per annum or the maximum legal rate of interest (to the extent the actual interest rate cannot be determined) , of the second installment of secured property taxes (to be received by the County during April 1986, and attributable to the County on the secured roll which becomes due and payable on February 1, 1986 and delinquent on April 10, 1986) which is transferred to the general fund of the County in the Accounting Period ending on May 13, 1986. The moneys required to be deposited in the Repayment Fund are hereinafter called the "Pledged Revenues. " The principal of. the Notes and the interest thereon shall constitute a first lien and charge against and shall be payable from the first moneys received by the County from the Pledged Revenues, and, to the extent not so paid, shall be paid from any other moneys of the County lawfully available therefor. This Note shall not be valid or become obligatory for any purpose until the certificate of authentication hereon shall have been signed by the Registrar. IN WITNESS WHEREOF, the County of Contra Costa has caused this Note to be executed by the facsimile signature of its County Treasurer-Tax Coilector and countersigned by the the facsimile signature of the Clerk of the Board of Supervisors of the County, and caused its official seal or a facsimile thereof to be affixed hereto, all as of July 1, 1985 . COUNTY OF CONTRA COSTA By Alfred P. Lomeli County Treasurer-Tax Collector (Seal) Countersigned: Philip J. Batchelor County Administrator and Clerk of the Board of Supervisors A-4 040511-0028-099-2853p CERTIFICATE OF AUTHENTICATION This note is one of the notes described in the within mentioned Resolution and is one of the 1985-1986 Short Term Optional Put Tax µand Revenue Anticipation Notes, Series A of the County of Contra Costa. Date of Authentication: BANKAMERICA TRUST COMPANY OF NEW YORK, as Registrar By Authorized Officer 1 A-5 0413511-0028-099-2853p [Form of reverse side of fully registered note] County of Contra Costa, California 1985-1986 Short Term Optional Put Tax and Revenue Anticipation Notes, Series A At the option of the registered owner hereof, this Note will be purchased according to the terms and subject to the conditions of that certain Contract of Purchase and Dealer Remarketing Agreement, dated as of , 1985 (the "Agreement" ) , between the County and Bank of America National Trust and Savings Association (the "Bank" ) , on any Rate Adjustment Date by (i ) giving telephonic notice to the Paying Agent prior to 10: 00 a.m. (New York City time) on the Tuesday (or if such Tuesday is not a Business Day, the next preceding Business Day) prior to such Rate Adjustment Date and (ii ) delivery of this Note (with the form of Election Notice attached hereto completed) to the Paying Agent prior to 10: 00 a.m. (New York City time) on such Interest Payment Date. THE OBLIGATION TO PURCHASE THIS NOTE AT THE OPTION OF THE REGISTERED OWNER HEREOF IS NOT AN OBLIGATION OF THE COUNTY BUT IS ONLY AN OBLIGATION OF THE BANK PURSUANT TO THE AGREEMENT. THE OBLIGATION OF THE BANK TO SO PURCHASE THIS NOTE IS NOT UNCONDITIONAL. IN THE EVENT THE BANK IS NOT OBLIGATED TO PURCHASE THIS NOTE THEN THERE IS NO OPTION OR OTHER RIGHT TO HAVE THIS NOTE PURCHASED. This Note is transferable by the registered holder hereof in person or by his attorney duly authorized in writing at the office of the Paying Agent in New York, New York, but only in the manner, subject to the limitations and upon payment of the charges provided in the authorizing Resolution, and upon surrender and cancellation of this Note. Upon such transfer a new Note or Notes of authorized denominations and for the same aggregate principal amount will be issued to the transferees in exchange herefor. The County and the Paying Agent may deem and treat the registered holder hereof as the absolute owner hereof for the purpose of receiving.payment of or on account of principal hereof and interest due hereon and for all other purposes and neither the CouAy nor the Paying Agent shall be affected by any notice to the contrary. A-6 040511-0028-099-2853p [FORM OF ASSIGNMENT] For value received the undersigned do(es) hereby sell, assign and transfer unto the within-mentioned registered Note and hereby irrevocably constitute( s) and appoint( s) attorney, to transfer the same on the books of the Paying Agent with full power of substitution in the premises. Dated: Signature guaranteed: 1 A-7 040511-0028-099-2853p EXHIBIT B COUNTY OF CONTRA COSTA, CALIFORNIA 1985-1986 SHORT TERM OPTIONAL PUT TAX AND REVENUE ANTICIPATION NOTE SERIES B REGISTERED No. REGISTERED $ Date: , 1985 FOR VALUE RECEIVED, the County of Contra Costa (the "County" ) , State of California, acknowledges itself indebted to and promises to pay to or registered assigns, the principal sum of Dollars ($ ) on July 30, 1986, unless payment of this Note shall have been duly made or provided for upon acceleration of the maturity hereof, and to pay interest on the balance of said principal sum from time to time remaining unpaid from and including the Interest Payment Date (as hereinafter defined) next preceding the .date of authentication hereof, unless this Note is authenticated prior to July 31, 1985 or as of a day that is an Interest Payment Date, in which case it shall bear interest from July 1, 1985 or from such Interest Payment Date, respectively; provided, however, that if at the time of registration of this Note, interest is in default on this Note, such Note shall bear interest from the Interest Payment Date to which interest has previously been paid, or from July 1, 1985 if no interest has been paid hereon, until the principal hereof shall have become due. Interest, computed on a 365-day year basis and actual days elapsed, is payable on July 31, 1985, and on each fourth Wednesday thereafter or if such day is not a Business Day, on the next succeeding Business Day (each hereinafter referred to as an "Interest Payment Date" ) and at maturity (and accrued to each such date) , at the Initial Rate to and including July 30, 1985 and then at an Adjusted Rate all as more fully described below, in lawful money of the United States of America until payment in full of said principal SUM. Interest paid on an Interest Payment Date shall be paid by check or draft mailed or delivered to the person in whose name this Note is registeredlat 10:00 a.m. (New York City time) on such Interest Payment Date. The principal of this Note shall be payable only to the registered owner hereof upon presentation and surrender of this Note as the same shall fall due at maturity or upon acceleration at the principal office of BankAmerica Trust Company of New York, as Paying Agent, Attention: Corporate Trust Administration, 40 'Broad Street, 4th Floor, New York, B-1 040511-0028-099-2853p New York -10004. No interest shall be payable for any period after maturity during which the holder hereof fails to properly present this Note for payment. The Initial'-Rate shall be _% per annum. On July 31, 1985 and on each fourth Wednesday thereafter, the interest rate may be adjusted, effective on each fourth Wednesday (a "Rate Adjustment Date" ) , to an Adjusted Rate. An Adjusted Rate, effective on a Rate Adjustment Date for the period commencing on such Rate Adjustment Date to and including the day immediately preceding the next Rate Adjustment Date (an "Interest Period" ) , shall be a rate determined as follows: On July 29, 1985 and thereafter on the Monday preceding each Rate Adjustment Date (or, if such day is not a Business Day, the next preceding Business Day) , the Underwriter, having due regard to prevailing financial market conditions, shall determine the rate which, if borne by the Series B Notes, would, in its judgment, be the interest rate, but would not exceed the interest rate, which would enable the Underwriter to remarket the Series B Notes on the next succeeding Rate Adjustment Date with respect to the Series B Notes at the Purchase Price, and the interest rate so determined shall be the interest rate for the Interest Period commencing on the next succeeding Wednesday; provided that, if on the date of such determination, the Underwriter holds for its own account 15% or more in aggregate principal amount of the Series B Notes, the Adjusted Rate for the Series B Notes so determined shall not be more than one hundred twenty per cent ( 120%) , nor less than eighty per cent (80%) , of 80% of the Interest Index, but, in any event, the rate which would, in its judgment, enable the Underwriter to remarket the Series B Notes on the next succeeding Rate Adjustment Date at the Purchase Price. The Underwriter shall disseminate such Adjusted Rate on the Munifacts Wire on the date it is determined and also shall give telephonic notice ( subsequently confirmed by written notice) to the County, the Paying Agent and the Fiscal Agent . of such Adjusted Rate. If Underwriter for any reason fails to determine the Adjusted Rate, or if a court finds the method of determining the Adjusted Rate set forth above to be unenforceable, the Adjusted Rate for the Series B Notes shall be 80% of the Interest Index as of each Rate Adjustment Date. NOTWITHSTANDING THE FOREGOING, THE ADJUSTED RATE SHALL NOT EXCEED THE LESSER OF 12% OR THE MAXIMUM RATE PERMITTED BY APPLICABLE LAW. Notwithstanding the foregoing, if the County fails to pay interest on the Notes on any Interest Payment Date for any series of Notes prior to July 30, 1986 and such failure continues for a period of five Business Days, all Notes shall B-2 040511-0028-099-2853p f , t become due and payable ten Business Days following the end of such grace period. Notice of such acceleration of maturity of the Notes shall be given by the County which notice shall specify the date on which all Notes shall mature. Any failure to receive such notice or any defect therein shall not affect the accelerated maturity date of the Notes, all as more fully provided in Section 3 (e) of the Resolution. REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS NOTE SET FORTH ON THE REVERSE HEREOF AND SUCH FURTHER PROVISIONS SHALL FOR ALL PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH AT THIS PLACE. It is hereby certified, recited and declared that this Note is one of an authorized issue of County of Contra Costa 1985-1986 Short Term Optional Put Tax and Revenue Anticipation Notes, Series B (the "Series B Notes" ) aggregating ($ ) in principal amount issued as one of series of County of Contra Costa 1985-1986 Short Term Optional Put Notes (the "Notes" ) aggregating Seventy Million Dollars ($70, 000, 000) in aggregate principal amount; the Notes are all made, executed and given pursuant to and by authority of a Resolution (the "Resolution" ) of the Board of Supervisors of the County duly passed and adopted under and by authority of Article 7 . 6 (commencing with Section 53850) of Chapter 4, Part 1, Division 2, Title 5, California Government Code, and that all acts, conditions and things required to exist, happen and be performed precedent to and in the issuance of this Note have existed, happened and been performed in regular and due time, form and manner as required by law, and that this Note, together with all other indebtedness and obligations of the County, does not exceed any limit prescribed by the Constitution or statutes of the State of California. Every capitalized term used herein which is not defined herein shall have the same meaning as provided therefor in the Resolution. The principal amount of the Notes, together with the interest thereon, shall be payable from taxes, income, revenue, cash receipts and other moneys which are received for or accrued to the General Fund of the County during Fiscal Year 1985-1986. As security for the payment of the principal of and interest orV the Notes, the County has pledged to deposit in trust in the Repayment Fund (as that term is defined in the Resolution) : the first $40, 000, 000 of the first installment of secured property taxes (to be received by the County during December 1985., and attributable to the County on the secured roll which becomes due and payable on November 1, 1985 and delinquent on December 10, 1985) which is transferred to the general fund of the County in the Accounting Period ending on January 10, 1986; and the B-3 040511-0028-099-2853p first $30-, 000, 000, to the date of such deposit together with an amount sufficient (net of earnings on moneys in the Repayment Fund) (i) to satisfy and make up any deficiency in the amount required to be deposited in the Repayment Fund during any prior Accounting Period and (ii ) to pay the interest on the Notes accruing and unpaid after the date of such deposit to maturity at an assumed interest rate of the lesser of 12% per annum or the maximum legal rate of interest (to the extent the actual interest rate cannot be determined) , of the second installment of secured property taxes (to be received by the County during April 1986, and attributable to the County on the secured roll which becomes due and payable on February 1, 1986 and delinquent on April 10, 1986) which is transferred to the general fund of the County in the Accounting Period ending on May 13, 1986. The moneys required to be deposited in the Repayment Fund are hereinafter called the "Pledged Revenues. " The principal of the Notes and the interest thereon shall constitute a first lien and charge against and shall be payable from the first moneys received by the County from the Pledged Revenues, and, to the extent not so paid, shall be paid from any other moneys of the County lawfully available therefor. This Note shall not be valid or become obligatory for any purpose until the certificate of authentication hereon shall have been signed by the Registrar. IN WITNESS WHEREOF, the County of Contra Costa has caused this Note to be executed by the facsimile signature of its County Treasurer-Tax Collector and countersigned by the the facsimile signature of the Clerk of the Board of Supervisors of the County, and caused its official seal or a facsimile thereof to be affixed hereto, all as of July 1, 1985. COUNTY OF CONTRA COSTA B Alfred P. Lomeli County Treasurer-Tax Collector (Seal) Countersigned: ' Philip J. Batchelor County Administrator and Clerk of the Board of Supervisors B-4 040511-0028-099-2853p CERTIFICATE. OF AUTHENTICATION This note is one of the notes described in the within mentioned Resolution and is one of the 1985-1986 Short Term Optional Put Tax- and Revenue Anticipation Notes, Series B of the County of Contra Costa. Date of Authentication: BANKAMERICA TRUST COMPANY OF NEW YORK, as Registrar By Authorized Officer B-5 040511-0028-099-2853p [Form of reverse side of fully registered note ) County of Contra Costa, California 1985-1986 Short Term Optional Put Tax and Revenue Anticipation Notes, Series B At the option of the registered owner hereof, this Note will be purchased according to the terms and subject to the conditions of that certain Contract of Purchase and Dealer Remarketing Agreement, dated as of 1 1985 (the "Agreement" ) , between the County and Bank of America National Trust and Savings Association (the "Bank" ) , on any Rate Adjustment Date by (i ) giving telephonic notice to the Paying Agent prior to 10:00 a.m. (New York City time) on the Tuesday (or if such Tuesday is not a Business Day, the next preceding Business Day) prior to such Rate Adjustment Date and (ii) delivery of this Note (with the form of Election Notice attached hereto completed) to the Paying Agent prior to 10:00 a.m. (New York City time) on such Interest Payment Date. THE OBLIGATION TO PURCHASE THIS NOTE AT THE OPTION OF THE REGISTERED OWNER HEREOF IS NOT AN OBLIGATION OF THE COUNTY BUT IS ONLY AN OBLIGATION OF THE BANK PURSUANT TO THE AGREEMENT. THE OBLIGATION OF THE BANK TO SO PURCHASE THIS NOTE IS NOT UNCONDITIONAL. IN THE EVENT THE BANK IS NOT OBLIGATED TO PURCHASE THIS NOTE THEN THERE IS NO OPTION OR OTHER RIGHT TO HAVE THIS NOTE PURCHASED. This Note is transferable by the registered holder hereof in person or by his attorney duly authorized in writing at the office of the Paying Agent in New York, New York, but only in the manner, subject to the limitations and upon payment of the charges provided in the authorizing Resolution, and upon surrender and cancellation of this Note. Upon such transfer a new Note or Notes of authorized denominations and for the same aggregate principal amount will be issued to the transferees in exchange herefor. The County and the Paying Agent may deem and treat the registered holder hereof as the absolute owner hereof for the purpose of receiving .payment of or on account of principal hereof and interest due hereon and for all other purposes and neither the County nor the Paying Agent shall be affected by any notice to tl 'e contrary. B-6 040511-0028-099-2853p [FORM OF ASSIGNMENT] For value received the undersigned do(es) hereby sell, assign and transfer unto the within-mentioned registered Note and hereby irrevocably constitute(s) and appoint( s) attorney, to transfer the same on the books of the Paying Agent with full power of substitution in the premises. Dated: Signature guaranteed: B-7 040511-0028-099-2853p EXHIBIT C COUNTY OF CONTRA COSTA, CALIFORNIA 1985-1986 SHORT TERM OPTIONAL PUT TAX AND REVENUE ANTICIPATION NOTE SERIES C REGISTERED No. REGISTERED $ Date: , 1985 FOR VALUE RECEIVED, the County of Contra Costa (the "County" ) , State of California, acknowledges itself indebted to and promises to pay to or registered assigns, the principal sum of Dollars ($ ) on July 30, 1986, unless payment of this Note shall have been duly made or provided for upon acceleration of the maturity hereof, and to pay interest on the balance of said principal sum from time to time remaining unpaid from and including the Interest Payment Date (as hereinafter defined) next preceding the date of authentication hereof, unless this Note is authenticated prior to October 30, 1985 or as of a day that is an Interest Payment Date, in which case it shall bear interest from July 1, 1985 or from such Interest Payment Date, respectively; provided, however, that if at the time of registration of this Note, interest is in default on this Note, such Note shall bear interest from the Interest Payment Date to which interest has previously been paid, or from July 1, 1985 if no interest has been paid hereon, until the principal hereof shall have become due. Interest, computed on a 365-day year basis and actual days elapsed, is payable on October 30, 1985, and on each thirteenth Wednesday thereafter or if such day is not a Business Day, on the next succeeding Business Day (each hereinafter referred to as an "Interest Payment Date" ) and at maturity (and accrued to each such date) , at the Initial Rate to and including October 29, 1985 and then at an Adjusted Rate all as more fully described below, in lawful money of the United States of America until payment in full of said principal sum. Interest paid on an Interest Payment Date shall be paid by check or draft mailed or delivered to the person in whose name this Note is registered at 10: 00 a.m. (New York City time) on such Interest Payment Date. The principal of this Note shall be payable only to the registered owner hereof upon presentation and surrender of this Note as the same shall fall due at maturity or upon acceleration at the principal office of BankAmerica Trust Company of New York, as Paying Agent, Attention: Corporate Trust Administration, 40 Broad Street, 4th Floor, New York, C-1 040511-0028-099-2853p New York 10004. No interest shall be payable for any period after maturity during which the holder hereof fails to properly present this Note for payment. The Initial Rate shall be % per annum. On October -30, 1985 and on each thirteenth Wednesday thereafter, the interest rate may be adjusted, effective on each thirteenth Wednesday (a "Rate Adjustment Date" ) , to an Adjusted Rate. An Adjusted Rate, effective on a Rate Adjustment Date for the period commencing on such Rate Adjustment Date to and including the day immediately preceding the next Rate Adjustment Date (an "Interest Period" ) , shall be a rate determined as follows: On October 28, 1985 and thereafter on the Monday preceding each Rate Adjustment Date (or, if such day is not a Business Day, . on the next preceding Business Day) , the Underwriter, having due regard to prevailing financial market conditions, shall determine the rate which, if borne by the Series C Notes, would, in its judgment, be the interest rate, but would not exceed the interest rate, which would enable the Underwriter to remarket the Series C Notes on the next succeeding Rate Adjustment Date with respect to the Series C Notes at the Purchase Price, and the interest rate so determined shall be the interest rate for the Interest Period commencing on the next succeeding Wednesday; provided that, if on the date of such determination, the Underwriter holds for its own account 15% or more in aggregate principal amount of the Series C Notes, the Adjusted Rate for the Series C Notes so determined shall not be more than one hundred twenty per cent (120%) , nor less than eighty per cent (80%) , of 85% of the Interest Index, but, in any event, the rate which would, in its judgment, enable the Underwriter to remarket the Series C Notes on the next succeeding Rate Adjustment Date at the Purchase Price. The Underwriter shall disseminate such Adjusted Rate on the Munifacts Wire on the date it is determined and also shall give telephonic notice ( subsequently confirmed by written notice) to the County, the Paying Agent and the Fiscal Agent of such Adjusted Rate. If Underwriter for any reason fails to determine the Adjusted Rate, or if a court finds the method of determining the Adjusted Rate set forth above to be unenforceable, the Adjusted Rate for the Series C Notes shall be 85% of the Interest Index as of each Rate Adjustment Date. NOTWITHSTANDING THE FOREGOING, THE ADJUSTED RATE SHALL NOT EXCEED THE LESSER OF 12% OR THE MAXIMUM RATE PERMITTED BY APPLICABLE LAW. Notwithstanding the foregoing, if the County fails to pay interest on the Notes on any Interest Payment Date for any series of Notes prior to July 30, 1986 and such failure C-2 040511-0028-099-2853p continues for a period of five Business Days, all Notes shall become due and payable ten Business Days following the end of such grace period. Notice of such acceleration of maturity of the Notes shall be given by the Co'unty which notice shall specify the date on which all Notes shall mature. Any failure 'to receive such notice or any defect therein shall not affect the accelerated maturity date of the Notes, all as more fully provided in Section 3(e) of the Resolution. REFERENCEIIS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS NOTE SET FORTH ON THE REVERSE HEREOF AND SUCH FURTHER PROVISIONS SHALL FOR ALL PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH AT THIS PLACE. It is hereby certified, recited and declared that this Note is one of an authorized issue of County of Contra Costa 1985-1986 Short Term Optional Put Tax and Revenue Anticipation Notes Series C (the "Series C Notes" ) aggregating Dollars ($ . in principal amount issued as one of series of County of Contra Costa 1985-1986 Short Term Optional Put Notes (the "Notes" ) aggregating Seventy Million Dollars ($70, 000, 000) in aggregate principal amount; the Notes are all made, executed and given pursuant to and by authority of a Resolution (the "Resolution" ) of the Board of Supervisors of the County duly passed and adopted under and by authority of Article 7. 6 (commencing with Section 53850) of Chapter 4, Part 1, Division 2, Title 5, California Government Code, and that all acts, conditions and things required to exist, happen and be performed precedent to and in the issuance of this Note have existed, happened and been performed in regular and due time, form and manner as required by law, and that this Note, together with all other indebtedness and obligations of the County, does not exceed any limit prescribed by the Constitution or statutes of the State of California. Every capitalized term used herein which is not defined herein shall have the same meaning as provided therefor in the . Resolution. The principal amount of the Notes, together with the interest thereon, shall be payable from taxes, income, revenue-, cash receipts and other moneys which are received for or accrued to the Genera Fund of the County during Fiscal Year 1985-1986. As security for the payment of the principal of and interest on the Notes, the County has pledged to deposit in trust in the Repayment Fund (as that term is defined in the Resolution) : the first $40, 000, 000 of the first installment of secured property taxes (to be received by the County during December 1985, and attributable to the County on the secured roll which becomes due and . payable on November 1, 1985 and delinquent on December 10, 1985) which is transferred to the general fund of the County C-3 040511-0028-099-2853p in the Accounting Period ending on January 10, 1986; and the first $30,000, 000, together with an amount sufficient (net of earnings on moneys to the 'day of such deposit in the Repayment Fund) (i ) to satisfy and make up any deficiency in the amount required to be deposited in the Repayment Fund during any prior Accounting Period and (ii ) to pay the interest on the Notes accruing and unpaid after the date of such deposit to maturity at an assumed interest rate of the lesser of 12% per annum or the maximum legal rate of interest (to the extent the actual interest rate cannot be determined) , of the second installment of secured property taxes (to be received by the County during April 1986, and attributable to the County on the secured roll which becomes due and payable on February 1, 1986 and delinquent on April 10, 1986) which is transferred to the general fund of the County in the Accounting Period ending on May 13, 1986. The moneys required to be deposited in the Repayment Fund are hereinafter called the "Pledged Revenues. " The principal of the Notes and the interest thereon shall constitute a first lien and charge against and shall be payable from the first moneys received by the County from the Pledged Revenues, and, to the extent not so paid, shall be paid from any other moneys of the County lawfully available therefor. This Note shall not be valid or become obligatory for any purpose until the certificate of authentication .hereon shall have been signed by the Registrar. IN WITNESS WHEREOF, the County of Contra Costa has caused this Note to be executed by the facsimile signature of its County Treasurer-Tax Collector and countersigned by the the facsimile signature of the Clerk of the Board of Supervisors of the County, and caused its official seal or a facsimile thereof to be affixed hereto, all as of July 1, 1985. COUNTY OF CONTRA COSTA By Alfred P. Lomeli County Treasurer-Tax Collector I (Seal) Countersigned: Philip J. Batchelor* County Administrator and Clerk of the Board of Supervisors C-4 040511-0028-099-2853p CERTIFICATE OF AUTHENTICATION This note is one of the notes described in the within mentioned Resolution and is one of the 1985-1986 Short Term Optional Put Tax -and Revenue Anticipation Notes, Series C of the County of Contra Costa. Date of Authentication: BANKAMERICA TRUST COMPANY OF NEW YORK, as Registrar By Authorized Officer C-5 040511-0028-099-2853p (Form of reverse side of fully registered note) County of Contra Costa, California 1985-1986 Short Term Qptional Put Tax and Revenue Anticipation Notes, Series C At the option of the registered owner hereof, this Note will be purchased according to the terms and subject to the conditions of that certain Contract of Purchase and Dealer Remarketing Agreement, dated as of 1 1985 (the "Agreement" ) , between the County and Bank of America National Trust and Savings Association (the "Bank" ) , on any Rate Adjustment Date by (i ) giving telephonic notice to the Paying Agent prior to 10: 00 a.m. (New York City time) on the Tuesday (or if such Tuesday is not a Business Day, the next preceding Business Day) prior to such Rate Adjustment Date and (ii ) delivery of this Note (with the form of Election Notice attached hereto completed) to the Paying Agent prior to 10:00 a.m. (New York City time) on such Interest Payment Date. THE OBLIGATION TO PURCHASE THIS NOTE AT THE OPTION OF THE REGISTERED OWNER HEREOF IS NOT AN OBLIGATION OF THE COUNTY BUT IS ONLY AN OBLIGATION OF THE BANK PURSUANT ,TO THE AGREEMENT. THE OBLIGATION OF THE BANK TO SO PURCHASE THIS NOTE IS NOT UNCONDITIONAL. IN THE EVENT THE BANK IS NOT OBLIGATED TO PURCHASE THIS NOTE THEN THERE IS NO OPTION OR OTHER RIGHT TO HAVE THIS NOTE PURCHASED. This Note is transferable by the registered holder hereof in person or by his attorney duly authorized in writing at the office of the Paying Agent in New York, New York, but only in the manner, subject to the limitations and upon payment of the charges provided in the authorizing Resolution, and upon surrender and cancellation of this Note. Upon such transfer a new Note or Notes of authorized denominations and for the same aggregate principal amount will be issued to the transferees in exchange herefor. The County and the Paying Agent may deem and treat the registered holder hereof as the absolute owner hereof for the purpose of receiving- payment of or on account of principal hereof and interest due hereon and for all other purposes and neither the Couhty nor the Paying Agent shall be affected by any notice to the contrary. C-6 040511-0028-099-2853p [FORM OF ASSIGNMENT] For value received the undersigned do(es) hereby sell, assign and transfer unto the within-mentioned registered Note and hereby irrevocably constitute( s) and appoint( s) attorney, to transfer the same on the books of the Paying Agent with full power of substitution in the premises. Dated: Signature guaranteed: C-7 040511-0028-099-2853p EXHIBIT D COUNTY OF CONTRA COSTA, CALIFORNIA 1985-1986 SHORT TERM OPTIONAL PUT TAX AND REVENUE ANTICIPATION NOTE SERIES D REGISTERED No. REGISTERED $ Date: f 1985 "County" ) , VALUE RECEIVED, the County of Contra Costa (the unty" ) , State of California, acknowledges itself indebted to and promises to pay to or registered assigns, the principal sum of Dollars ($ ) on July 30, 1986, unless payment of this Note shall have been duly made or provided for upon acceleration of the maturity hereof, and to pay interest on the balance of said principal sum from time to time remaining unpaid from and including the Interest Payment Date (as hereinafter defined) next preceding the ,date of authentication hereof, unless this Note is authenticated prior to January 8, 1986 or as of a day that is an Interest Payment Date, in which case it shall bear interest from July 1, 1985 or from such Interest Payment Date, respectively; provided, however, that if at the time of registration of this Note, interest is in default on this Note, such Note shall bear interest from the Interest Payment Date to which interest has previously been paid, or from July 1, 1985 if no interest has been paid hereon, until the principal hereof shall have become due. Interest, computed on a 365-day year basis and actual days elapsed, is payable on January 8, 1986 (an "Interest Payment Date" ) and at maturity (and accrued to each such date) , at the Initial Rate to and including January 8, 1986 and then at an Adjusted Rate all as more fully described below, in lawful money of the United States of America until payment in full of said principal sum. Interest paid on an Interest Payment Date shall be paid by check or draft mailed or delivered to the person in whose name this Note is registered at 10: 00 a..m. (New York City time) on such Interest Payment Date. The principal of t4is Note shall be payable only to the registered owner hereof upon presentation and surrender of this Note as the same shall fall due at maturity or upon acceleration at the principal office of BankAmerica Trust Company of New York, as Paying Agent, Attention: Corporate Trust Administration, 40 Broad Street, 4th Floor, New York, New York 10004.' No interest shall be payable for any period after maturity during which the holder hereof fails to properly present this Note for payment. D-1 040511-0028-099-2853p The Initial Rate shall be . _% per annum. on January 8, 1986 the interest rate may be adjusted, effective on such date (the "Rate Adjustment Date" ) , to an Adjusted Rate. An Adjusted Rate, effective on the Rate Adjustment Date for the period commencing on the Rate Adjustment Date to and including July 29, 1986 (the "Interest Period" ) , shall be a rate determined as follows: On January 6, 1986 (or, if such day is not a Business Day, on the next preceding Business Day) , the Underwriter, having due regard to prevailing financial market conditions, shall determine the rate which, if borne by the Series D Notes, would, in its judgment, be the interest rate, but would not exceed the interest rate, which would enable the Underwriter to remarket the Series D Notes on the Rate Adjustment Date with respect to the Series D Notes at the Purchase Price, and the interest rate so determined shall be the interest rate for the Interest Period; provided that, if on the date of such determination, the Underwriter holds for its own account 15% or more in aggregate principal amount of the Series D Notes, the Adjusted Rate for the Series D Notes so determined shall not be more than one hundred twenty per cent (120%) , nor less than eighty per cent (80%) , of 85% of the Interest Index, but, in any event, the rate which would, in its judgment, enable the Underwriter to remarket the Series D Notes on the next succeeding Rate Adjustment Date at the Purchase Price. The Underwriter shall disseminate such Adjusted Rate on the Munifacts Wire on the date it is determined and also shall give telephonic notice (subsequently confirmed by written notice) to the County, the Paying Agent and the Fiscal Agent of such Adjusted Rate. If Underwriter for any reason fails to determine the Adjusted Rate, or if a court finds the method of determining the Adjusted Rate set forth above to be unenforceable, the Adjusted Rate for the Series D Notes shall be 85% of the Interest Index as of each Rate Adjustment Date. NOTWITHSTANDING THE FOREGOING, THE ADJUSTED RATE SHALL NOT EXCEED THE LESSER OF 12% OR THE MAXIMUM RATE . PERMITTED BY APPLICABLE LAW. Notwithstanding the foregoing, if the County fails to pay interest on the Notes on any Interest Payment Date for any series of Notes prior to July 30, 1986 and such failure continues for a period of five Business Days, all Notes shall become due and payable ten Business Days following the end of such grace period. Notice of such acceleration of. maturity of the Notes shall be given by the County which notice shall specify the date on which all Notes shall mature. Any failure to receive such notice or any defect therein shall not affect the accelerated maturity date of the Notes, all as more fully provided in Section 3(e) of the Resolution. D-2 040511-0028-099-2853p . REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS NOTE SET FORTH ON THE REVERSE HEREOF AND SUCH FURTHER PROVISIONS SHALL FOR ALL -PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH AT THIS PLACE. It is hereby certified, recited and declared that this I Note is one of an authorized issue of County of Contra Costa 1985-1986 Short Term Optional Put Tax and Revenue Anticipation Notes Series C (the "Series C Notes" ) aggregating Dollars ($ ) in principal amount issued as one of series of County of Contra Costa 1985-1986 Short Term Optional Put Notes (the "Notes" ) aggregating Seventy Million Dollars ($70, 000, 000) in aggregate principal amount; the Notes are all made, executed and given pursuant to and by authority of a Resolution (the "Resolution" ) of the Board of Supervisors of the County duly passed and adopted under and by authority of Article 7. 6 (commencing with Section 53850) of Chapter 4, Part 1, Division 2, Title 5, California Government Code, and that all acts, conditions and things required to exist, happen and be performed precedent to and in the issuance of this Note have existed, happened and been performed in regular and due time, form and manner as required by law, and that this Note, together with all other indebtedness and obligations of the County, does not exceed any limit prescribed by the Constitution or statutes of the State of California. Every capitalized term used herein which is not defined herein shall have the same meaning as provided therefor in the Resolution. The principal amount of the Notes, together with the interest thereon, shall be payable from taxes, income, revenue, cash receipts and other moneys which are received for or accrued to the General Fund of the County during Fiscal Year 1985-1986. As security for the payment of the principal of and interest on the Notes, the County has pledged to deposit in trust in the Repayment Fund (as that .term is defined in the Resolution) : the first $40, 000, 000 of the first installment of secured property taxes (to be received by the County during December 1985, and attributable to the County on the secured roll which becomes due and payable on November 1, 1985 and delinquent on December 10, 1985) which is transferred t9 the general fund of the County in the Accounting Period ending on January 10, 1986; and the first $30, 000, 000, together with an amount sufficient (net of earnings on moneys to the day of such deposit in the Repayment Fund) (i ) to satisfy and make up any deficiency in the amount required to be deposited in the Repayment Fund during any prior Accounting Period and (ii) to pay the interest on the Notes accruing and unpaid after the date of such deposit to maturity at an assumed interest rate of the D-3 040511-0028-099-2853p lesser of- .12% per annum or the maximum legal rate of interest (to the extent the actual interest rate cannot be determined) , of the second installment of secured property taxes (to be received by the County during April 1986, and attributable to the County on the secured roll which becomes due and payable on February 1, 1986 and delinquent on April 10, 1986) which is transferred to the general fund of the County in the Accounting Period ending on May 13, 1986. The moneys required to be deposited in the Repayment Fund are hereinafter called the "Pledged Revenues. " The principal of the .Notes and the interest thereon shall constitute a first lien and charge against and shall be payable from the first moneys received by the County from the Pledged Revenues, and, to the extent not so paid, shall be paid from any other moneys of the County lawfully available therefor. This Note shall not be valid or become obligatory for any purpose until the certificate of authentication hereon shall have been signed by the Registrar. IN WITNESS WHEREOF, the County of Contra Costa has caused this Note to be executed by the facsimile signature of its County Treasurer-Tax Collector and countersigned by the the facsimile signature of the Clerk of the Board of Supervisors of the County, and caused its official seal or a facsimile thereof to be affixed hereto, all as of July 1, 1985 . COUNTY OF CONTRA COSTA By. Alfred P. Lomeli County Treasurer-Tax Collector (Seal) Countersigned: Philip J. Batchelor County Administrator and Clerk of the Board of Supervisors D-4 040511-0028-099-2853p CERTIFICATE OF AUTHENTICATION This note is one of the notes described in the within mentioned Resolution and is one of the 1985-1986 Short Term Optional Put Tax and Revenue Anticipation Notes, Series D of the County of Contra Costa. Date of Authentication: BANKAMERICA TRUST COMPANY OF NEW YORK, as Registrar By Authorized Officer D-5 040511-0028-099-2853p ['Form of reverse side of fully registered note ) County of Contra Costa, California 1985-1986 Short Term Optional Put Tax and Revenue Anticipation Notes, Series D At the option of the registered owner hereof, this Note will be purchased according to the terms and subject to the conditions of that certain Contract of Purchase and Dealer Remarketing Agreement, dated as of 1 1985 (the "Agreement" ) , between the County and Bank of America National Trust and Savings Association (the "Bank" ) , on the Rate Adjustment Date by (i ) giving telephonic notice to the Paying Agent prior to 10:00 a.m. (New York City time) on the Tuesday (or if such Tuesday is not a Business Day, the next preceding Business Day) prior to such Rate Adjustment Date and (ii ) delivery of this Note (with the form of Election Notice attached hereto completed) to the Paying Agent prior to 10:00 a.m. (New York City time) on such Interest Payment Date. THE OBLIGATION TO PURCHASE THIS NOTE AT THE OPTION OF THE REGISTERED OWNER HEREOF IS NOT AN OBLIGATION OF THE COUNTY BUT IS ONLY AN OBLIGATION OF THE BANK PURSUANT TO THE AGREEMENT. THE OBLIGATION OF THE BANK TO SO PURCHASE THIS NOTE IS NOT UNCONDITIONAL. IN THE EVENT THE BANK IS NOT OBLIGATED TO PURCHASE THIS NOTE THEN THERE IS NO OPTION OR OTHER RIGHT TO HAVE THIS NOTE PURCHASED. This Note is transferable by the registered holder hereof in person or by his attorney duly authorized in writing at the office of the Paying Agent in New York, New York, but only in the manner, subject to the limitations and upon payment of the charges provided in the authorizing Resolution, and upon surrender and cancellation of this Note. Upon such transfer a new Note or Notes of authorized denominations and for the same aggregate principal amount will be issued to the transferees in exchange herefor. The County and the Paying Agent may deem and treat the registered holder hereof as the absolute owner hereof for the purpose of receiving-payment of or on account of principal hereof and interest due hereon and for all other purposes and neither the Cotinty nor the Paying Agent shall be affected by any notice to the contrary. D-6 040511-0028-099-2853p [FORM OF ASSIGNMENT] For value received the undersigned do(es) hereby sell, assign and transfer unto the within-mentioned regiftered Note and hereby irrevocably constitute( s) and appoint( s) attorney, to transfer the same on the books of the Paying Agent with full power of substitution in the premises. Dated: Signature guaranteed: D-7 040511-0028-099-2853p EXHIBIT E COUNTY OF CONTRA COSTA, CALIFORNIA 1985-1986 [ SHORT TERM OPTIONAL PUT] TAX AND REVENUE ANTICIPATION NOTE SERIES E REGISTERED No. REGISTERED $ Date: 1 1985 FOR VALUE RECEIVED, the County of Contra Costa (the "County" ) , State of California, acknowledges itself indebted to and promises to pay to or registered assigns, the principal sum of Dollars ($ ) on July 30, 1986, unless payment of this Note shall have been duly made or provided for upon acceleration of the maturity hereof, and to pay interest on the balance of said principal sum from time to time remaining unpaid from July 1, 1985, computed on a 365-day year basis and actual days elapsed, at maturity at the rate of percent (_%) per annum, in lawful money of the United States of America until payment in full of said principal sum. Interest shall be paid by check or draft mailed or delivered to the person in whose name this Note is registered at 10: 00 a.m. (New York City time) on July 30, 1986. The principal of this Note shall be payable only to the registered owner hereof upon presentation and surrender of this Note as the same shall fall due at maturity or upon acceleration at the principal office of BankAmerica Trust Company of New York, as Paying Agent, Attention: Corporate Trust Administration, 40 Broad Street, 4th Floor, New York, New York 10004. No interest shall be payable for any period after maturity during which the holder hereof fails to properly present this Note for payment. Notwithstanding the foregoing, if the County fails to pay interest on the Notes on any Interest Payment Date for any series of Notes prior to July 30, 1986 and such failure continues for a period of five Business Days, all Notes shall become due and payable ten Bysiness Days following the end of such grace period. Notice of such acceleration of maturity of the Notes shall be given by the County which notice shall specify the date on which all Notes shall mature. Any failure to receive such notice or any defect therein shall not affect the accelerated maturity date of the Notes, all as more fully provided in Section 3(e) of the Resolution. E-1 040511-0028-099-2853p . This Note is transferable by the registered holder hereof in person or by his attorney duly authorized in writing at the office of the Paying Agent in New York, New York, but only in the manner, subject to the limitations and upon payment of the charges provided in the authorizing Resolution, and upon surrender and cancellation of this Note. Upon such transfer a new Note or Notes of authorized denominations and for the same aggregate principal amount will be issued to the transferees in exchange herefor. The County and the Paying Agent may deem and treat the registered holder hereof as the absolute owner hereof for the purpose of receiving payment of or on account of principal hereof and interest due hereon and for all other purposes and neither the County nor the Paying Agent shall be affected by any notice to the contrary. It is hereby certified, recited and declared that this Note is one of an authorized issue of County of Contra Costa 1985-1986 Short Term Optional Put Tax and Revenue Anticipation Notes, Series E (the "Series E Notes" ) aggregating Dollars ($ ) in principal amount issued as one of series of County of Contra Costa 1985-1986 Short Term Optional Put Notes (the "Notes" ) aggregating Seventy Million Dollars ($70, 000, 000) in aggregate principal amount; the Notes are all made, executed and given pursuant to and by authority of a Resolution (the "Resolution" ) of the Board of Supervisors of the County duly passed and adopted under and by authority of Article 7. 6 (commencing with Section 53850) of Chapter 4, Part 1, Division 2, Title 5, California Government Code, and that all acts, conditions and things required to exist, happen and be performed precedent to and in the issuance of this Note have existed, happened and been performed in regular and due time, form and manner as required by law, and that this Note, together with all other indebtedness and obligations of the County, does not exceed any limit prescribed by the . Constitution or statutes of the State of California. Every capitalized term used herein which is not defined herein shall have the same meaning as provided therefor in the Resolution. The principal amou9t of the Notes, together with the interest thereon, shall be payable from taxes, income, revenue, cash receipts and other moneys which are received for or accrued to the General Fund of the County during Fiscal Year 1985-1986. As security for the payment of the principal of and interest on the Notes, the County has pledged to deposit in trust in the Repayment Fund (as that term is defined in the Resolution) : the first $40,000, 000 of the first installment of secured property taxes (to be received by the County during December 1985, and attributable E-2 040511-0028-099-2853p to the County on the secured roll which becomes due and payable on November 1, 1985 and delinquent on December 10, 1985) which is transferred to the general fund of the County in the Accounting Period ending on January 10, 1986; and the first $30, 000,000, to -the date of such deposit together with an amount sufficient (net of earnings on moneys in the Repayment Fund) (i ) to satisfy and make up any deficiency in the amount required to be deposited in the Repayment Fund during any prior Accounting Period and (ii) to pay the interest on the Notes due at maturity, of the second installment of secured property taxes (to be received by the County during April 1986, and attributable to the County on the secured roll which becomes due and payable on February 1, 1986 and delinquent on April 10, 1986) which is transferred to the general fund of the County in the Accounting Period ending on May 13, 1986. The moneys required to be deposited in the Repayment Fund are hereinafter called the "Pledged Revenues. " The principal of the Notes and the interest thereon shall constitute a first lien and charge against and shall be payable from the first moneys received by the County from the Pledged Revenues, and, to the extent not so paid, shall be paid from any other moneys of the County lawfully available therefor. This Note shall not be valid or become obligatory for any purpose until the certificate of authentication hereon shall have been signed by the Registrar. IN WITNESS WHEREOF, the County of Contra Costa has caused this Note to be executed by the facsimile signature of its County Treasurer-Tax Collector and countersigned by the the facsimile signature of the Clerk of the Board of Supervisors of the County, and caused its official seal or a facsimile thereof to be affixed hereto, all as of July 1, 1985. COUNTY OF CONTRA COSTA By Alfred P. Lomeli County Treasurer-Tax Collector (Seal) Countersigned: Philip J. Batchelor County Administrator and Clerk of the Board of Supervisors E-3 040511-0028-099-2853p CERTIFICATE OF AUTHENTICATION This note is one of the notes described in the within mentioned Resolution and is one of the 1985-1986 Short Term Optional Put Tax and Revenue Anticipation Notes, Series E of the County of Contra Costa. Date of Authentication: BANKAMERICA TRUST COMPANY OF NEW YORK, as Registrar By Authorized Officer E-4 040511-0028-099-2853p [ FORM OF ASSIGNMENT) For value received the undersigned do(es) hereby sell, assign and transfer unto the within-mentioned registered Note and hereby irrevocably constitute(s) and appoint(s) attorney, to transfer the same on the books of the Paying Agent with full power of substitution in the premises. Dated: Signature guaranteed: 040511-0028-099-2853p EXHIBIT F* To: ELECTION NOTICE The undersigned, the registered owner (the "Holder" ) of County of Contra Costa, California 1985-1986 Short Term Optional Put Tax and Revenue Anticipation Note( s) , Series — (the "Notes" ) , hereby notifies (the "Paying Agent" ) of the Holder' s election to have $ of the principal amount of this Note purchased on J. which is an Rate Adjustment Date (as defined in the hereinafter mentioned Resolution) , And demands payment of such principal sum, and interest accrued thereon, all as provided in a resolution of the Board of Supervisors of the County of Contra Costa, California authorizing the issuance of the Notes ( "Resolution") . The Holder acknowledges that unless this Note is delivered to the Paying Agent prior to 10:00 a.m. New York City time, on such date, such principal amount will not be purchased on such date. The Holder understands that (a) the obligation to purchase Notes is not an obligation of the County of Contra Costa, but is only an obligation of Bank of America National Trust and Savings Association (the "Bank" ) pursuant to the Agreement referred to in theResolution and (b) the obligation of the Bank to so purchase Notes is not unconditional. In the event the Bank is not obligated to purchase Notes then the Holder has no right to have this Note or any portion hereof purchased. Name of Registered Owner** Dated: I By Authorized Signature To be printed on reverse side of Note. Type or print name exactly a I s it appears on the Note being tendered for purchase.- F-1 040511-0028-099-2853p COUNTY OF CONTRA COSTA FISCAL AGENCY AGREEMENT FOR 1985-1986 SHORT TERM OPTIONAL PUT TAX AND REVENUE ANTICIPATION NOTES (STOP NOTES) THIS AGREEMENT is dated for convenience as of the first day of July, 1985, between the County of Contra Costa herein called "County": and First Interstate Bank of California, a state banking association, herein called "Bank." WITNESSETH: WHEREAS, the County has authorized and provided for the issuance of $70,000,000 principal amount of its 1985-86 Short Term Optional Put Tax and Revenue Anticipation Notes, herein called the "Notes", and wishes Bank to act as Fiscal Agent with respect to the Notes. NOW, THEREFORE, in consideration of the premises, the parties hereto agree as follows: 1. Not later than Jul 3, 1985, Bank will establish at its principal office in San Francisco a special fund designated the 111985-1986 Short Term Optional Put Tax and Revenue Anticipation Note Repayment Fund" (the "Repayment Fund") in accordance with the -1- provisions of the Resolution of Issuance adopted by the County on 1985 related to the Notes (the "Note Resolution") . The County will deposit, at the times and in the amounts required by the Note Resolution, with the principal office of Bank in San Francisco the Pledged Revenues as defined in the Note Resolution for deposit in the Repayment Fund. 2. Bank will transfer from the Repayment Fund to Bank America Trust Company of New York, in New York, New York, Paying Agent for the Notes, sufficient funds from the Repayment Fund for payment of principal of and interest on the Notes at maturity. Such transfer shall be made by Bank in immediately available funds on or before the maturity date of the Notes. Any balance remaining in the Repayment Fund following such transfer shall be remitted by Bank to the County. 3. Investment of funds in the Repayment Fund shall be made in accordance with the provisions of the Note Resolution. 0 4. The Bank's fees for its services as Fiscal Agent pursuant to this Agreement shall Ibe $4,500.00, plus investment charges and fees for wire transfers. The Bank will submit its statement for its Fiscal Agent fees to the Public Finance Department of Bank of America not later than July 3, 1985, and within 45 days of receipt of such statement the Public Finance -2- .. Department shall pay the Fiscal Agent the amount of such statement. A statement fgr investment charges and fees for wire transfers will be submitted at the termination. of the Agreement. This Agreement shall terminate immediately after the Bank completes its duties as outlined in Paragraph 2. 5. All notices, documents and other correspondence will be mailed or delivered to Bank at First Interstate Bank of / -California, 405 Montgomery Street, Room 1320, San Francisco, CA 94104, and to County of Contra Costa, 625 Court Street, Room 100, Martinez, CA 94553, or to such other address as either party shall from time to time indicate in writing to the other. The terms and conditions of this Agreement are intended for the mutual benefit of County and Bank exclusively, and are not intended to give any third party any right or claim, contractual or otherwise, hereunder. 1 -3- r IN WITNESS WHEREOF, the parties have caused these presents to be duly executed, as of the day and year first above written. COUNTY OF CONTRA COSTA By TREASURER FIRST INTERSTATE BANK OF CALIFORNIA By BANK OF AMERICA NATIONAL TRUST AND SAVINGS ASSOCIATION PUBLIC FINANCE DEPARTMENT By -4- Draft dated June 3, 1980 COUNTY OF CONTRA COSTA 1985-86 SHORT TERM OPTIONAL PUT TAX AND REVENUE ANTICIPATION NOTES CONTRACT OF PURCHASE AND DEALER REMARKETING AGREEMENT 1985 [To be dated the date of initial pricing. ] County of Contra Costa, California County Administration Building 651 Pine Street Martinez, California 94553 ATTENTION: Alfred P. Lomeli , Treasurer-Tax Collector . Ladies and Gentlemen: The undersigned (the "Bank") offers to enter into this Contract of Purchase and Dealer Remarketing Agreement ("Contract of Purchase") with the County of Contra Costa, California (the "Issuer") . This offer is made subject to written acceptance by the Issuer prior to 1985, and, upon such acceptance, this Contract of Purchase will be binding upon the Issuer and the Bank. 1 . (A) Purchase and Sale, of the Notes. Upon the terms and conditions and in reliance upon the representations, warranties and agreements herein set forth, the Bank hereby agrees to purchase from the Issuer for reoffering to the public, and the Issuer hereby agrees to sell to the Bank for such purpose all (but not less than all ) of the Issuer' s 1985-86 Short Term Optional Put Tax and Revenue Anticipation Notes (the "Notes") issued on the Issue Date, as defined below, in the aggregate principal amount of $ The aggregate purchase price to be paid by the Bank for the Notes shall be the principal amount thereof less a discount of $ plus accrued interest, if any. The obligation of the Bank to purchase Notes as stated in this Section 1 shall only be applicable to Notes issued on the Issue Date. "Issue Date" means the date on which the Issuer issues Notes pursuant to the Resolution, defined below. The Bank' s obligations with respect to remarketing and positioning of certain of the Notes are set forth in Sections 6 and 7 herein, respectively. (B) There has previously been delivered to you a certified or cashier' s check payable to the order of the Issuer in the sum of $50,000 as a good-faith deposit for the performance by the Bank of its obligation to accept and pay for the Notes at the Closing in accordance with the provisions of this Contract of Purchase. In the event the Issuer does not accept this offer, such check shall be immediately returned to the Bank. If the Issuer accepts this offer, the Issuer may cash such check and invest the proceeds thereof for the Issuer' s account. In the event of the Issuer' s inability to deliver the Notes. at the Closing, as defined below, or if the Issuer shall be unable to satisfy the conditions to the Bank' s obligation to purchase the Notes at the Closing (unless such conditions are waived by the Bank) , or if the Bank' s obligation to purchase the Notes at the Closing shall be terminated for any 1 _ other reason permitted herein, the Issuer shall forthwith reimburse to the Bank the amount of the good faith check and such reimbursement shall constitute a full release and discharge of ;all claims by the Bank against the Issuer arising out of the transactions contemplated hereby, except for the -2- obligations of the Issuer under Section 15. In the event that the Bank fails (other than for a reason permitted herein) to accept and pay for the Notes at the Closing as herein provided, the -proceeds of such check shall be retained by the Issuer as liquidated damages for such failure and for any defaults hereunder on the Bank' s part and shall constitute a full release and discharge of all claims by the issuer against the Bank, except for the obligations of the Bank under Section 15. 2. The Notes. The Notes shall be dated July 1 , 1985, shall mature July 30, 1986, and shall otherwise be as described in and shall be issued and secured pursuant to the provisions of Resolution No. 85-_ of the Issuer adopted on 1985 (the "Resolution") , and Article 7.6, Chapter 4, Part 1 , Division 2, Title 5 (commencing with Section 53850) of the Calfiornia Government Code (the "Act") . The Notes shall be issued in registered form. The Notes shall be issued in five series as follows:( Series A, with respect to which the registered owners thereof shall have the right to demand repurchase on each Wednesday prior to maturity, commencing July 31 , 1985; Series B, with respect to which the registered owners thereof shall have the right to demand repurchase on each fourth Wednesday prior to maturity, commencing July 31 , 1985; Series C, with respect to which the registered owners thereof shall have the right to demand repurchase on October 30, 1985 and January 29 and April 30, 1986, Series D, with respect to which the registered owners thereof shall have the right to demand repurchase on January 8, 1986; and Series E, with respect to which there shall be no repurchase right prior to maturity. The Notes shall bear interest payable in the case of Series A and Series B on each fourth Wednesday, commencing -3- July 31 , 1985,A payable in the case of Series C/fn October 30, 1985 and January 29, April 30 and July 30, 1986, payable in the case of Series D on January 8 and July 30, 1986, and payable in the case of Series E on July 30, 1986. Interest for the initial- Interest Period (as defined in the Resolution) for each series shall be at the rates of % and % for Series A, B IA C, D and E, respectively; for subsequent Interest Periods, the Notes shall bear interest at rates determined in accordance with the Resolution. The principal of Notes of each series shall be as follows: ,Series A, $ Series B, Series C, $_; Series D, $_; and, . Series E, $ The Notes will be issued in the denomination of $100,000 each or any integral multiple thereof, and registered in such names as shall be designated by the Bank to the Issuer not less than five business days before the Issue Date. 3. Use of Documents. The Issuer hereby authorizes the Bank to use, in connection with the offer, sale and remarketing of the Notes, a preliminary official statement, an official statement and, in conjunction with remarketing, any subsequent offering memorandum, all in a form to be jointly approved by the Issuer and the Bank, this Contract of Purchase, the Resolution and all information contained herein and therein and all other documents, certificates or statements furnished by the Issuer to the Bank in connection with the transactions contemplated by this Contract of Purchase. The preliminary official statement, the official statement, and all appendices thereto, as the same may from time to time be amended or supplemented with the consent of the Bank up to the time of Closing, are referred to in this Contract of Purchase collectively as the "Official Statement, " and each -4- offering memorandum, as amended or supplemented, is referred to in this Contract of Purchase as the "Offering Memorandum. " 4. Public Offering of the Notes. The Bank agrees to make a bona fide public offering of the Notes initially and for each subsequent remarketing period at the applicable interest rate determined in accordance with the Resolution. 5. Closing. At 11 :00 a.m. , Eastern Daylight Time, on July 1985, or at such other time and on such other date as shall have been mutually agreed upon by the Issuer and the Bank (the "Closing") , the Issuer will deliver to the Bank, in New York, New York, printed certificates representing the Notes in definitive form executed in accordance with the terms of the Resolution, together with the other documents hereinafter mentioned; and the Bank will accept such delivery and pay the purchase price thereof in immediately available funds to the order of the Issuer. 6. Bank to Act as Remarketing Agent. (A) Subject to the terms and conditions of this Contract of Purchase, the Bank agrees to act as Remarketing Agent for the Notes and to fully perform the duties imposed on it by the Resolution. For each Rate Adjustment Date as provided in the Resolution, the Bank will establish the interest rate applicable to such Rate Adjustment Date in accordance with the Resolution, and Luse the same to be disseminated on the Munifacts Wire, all as provided in the Resolution. The Bank will use its best efforts to sell at par Notes tendered to it in accordance with the Resolution. The Bank agrees to advance to the Paying Agent for the Notes not -5- later than 10:00 a.m. , New York City time, New York Clearing House funds equal to the principal of and accrued interest, if any, on the Notes tendered for repurchase in accordance with the Resolution. The obligations of the Bank under this Section shall be subject to the condition applicable to such obligations set forth in Section 13 hereof. (B) For its services as Remarketing Agent, the Bank shall be entitled to compensation for such services equal to one-tenth of one percent (1 /10 of 1%) of the principal amount of Notes tendered to it for remarketing. and remarketed in accordance with the Resolution, such compensation to be not less than $18,750 and not more than $28,125. The Bank shall , promptly after the maturity of the Notes, submit to the Issuer an invoice which sets forth a calculation of the compensation to which it is entitled, and such compensation shall be payable by the Issuer within 30 days after receipt of such invoice. 7. Purchase of Notes by Bank. If by 12:30 p.m. on any Rate Adjustment Date, the Bank has not been able to sell Notes tendered in accordance with the Resolution, the Bank shall purchase for its inventory such Notes which have not been sold at par plus accrued interest, if any. Such Notes shall bear interest at the applicable interest rate determined in accordance with the Resolution. The Bank' s obligation to purchase such Notes for its inventory shall be subject to the condition applicable to such obligation set forth in Section 13 here�f. 8. Representations , - Warranties and Agreements of the .Issuer. The Issuer hereby represents, warrants and agrees with the Bank that: -6- (A) The Issuer is a political subdivision of the State of California (the "State") duly organized and validly existing under t'he laws thereof, and has all requisite power. and authority to conduct its business and to execute, deliver and perform all of its obligations under this Contract of Purchase and under the fiscal agency agreement contemplated by the Resolution (the "Fiscal Agency Agreement") . (B) (i ) At or prior to the Closing, the Issuer will have taken all action required to be taken by it to authorize the issuance and delivery of the Notes; (ii ) the Issuer has full legal right, power and authority to enter into this Contract of Purchase and the Fiscal Agency Agreement and to adopt the Resolution and full legal right, power and authority to issue and deliver the Notes to the Bank and to perform its obligations under each such document or instrument, and to carry out and effectuate the transactions contemplated by this Contract of Purchase, the Fiscal Agency Agreement and the Resolution; (iii ) the execution and delivery or adoption of, and the performance by the Issuer of the obligations contained in, the Notes, the Resolution, the Fiscal Agency Agreement and this Contract of Purchase have been duly authorized and such authorization shall be in full force and effect at the tirp of the Closing; (iv) this Contract of Purchase and the Fiscal Agency Agreement have each been duly executed and delivered and constitute the valid and legally binding obligations of the Issuer enforceable against the Issuer in accordance with their respect?ve terms except that enforceability thereof may be limited by applicable bankruptcy, insolvency, reorganization, moratorium and other laws in effect from time to time affecting the rights of creditors generally and by application of general principles of equity; and -7- (v) the Issuer has duly authorized the consummation by it of all transactions contemplated by this Contract of Purchase and the Fiscal Agency Agreement. (C) No consent, approval , authorization, license, order, filing, registration, qualification, election or referendum, of or by any person, organization, court or governmental agency or public body whatsoever is required in connection with the issuance, delivery or sale of the Notes or the consummation of the other transactions effected or contemplated therein or hereby, except for such actions as may be necessary to be taken to qualify the Notes for offer and sale under the Blue Sky or other securities laws and regulations of such states and jurisdictions of the United Staes as the Bank may designate. (D) All Notes will be issued only under and within the limits of the Act, and, as such, are general obligations of the Issuer, but payable only out of certain taxes, income, revenue, cash receipts and other moneys to be received by the Issuer during, or attributable to, fiscal year 1985-86 and legally available for the payment thereof (the "1985-86 Revenues") . Under the Resolution certain moneys are pledged to payment of the Notes .(the "Pledged Revenues") and such pledge constitutes a first lien on the Pledged Revenues. (E-)_., The issuance of the Notes, the execution, delivery and performance of this Contract of Purchase, the Fiscal Agency Agreement, the Resolution and the Notes, and compliance with the provisions hereof and thereof' do not conflict with or constitute on the part of the Issuer a violation of or default under the Constitution of the State or any existing -8- law, charter, ordinance, regulation, decree, order or. resolution and do not conflict with or result in a violation or breach of, or constitute a' default 0 under, any agreement, indenture, mortgage, lease or other instrument to which the Issuer is a party or by whish it is bound or to which it is subject. (F) There is no action, suit, proceeding, inquiry or investigation, at law or in equity, before any court or public body, pending or (to the knowledge of the Issuer) threatened against the Issuer: (i ) in any way affecting the existence of the Issuer or in any way challenging the respective powers of the several offices of the Issuer or the entitlement of the officials of the Issuer to such offices; or (ii ) seeking to restrain or enjoin the sale, issuance or delivery of any of the Notes, the application of the proceeds of the sale of the Notes , or the collection of revenues or assets of the Issuer pledged or to be pledged or available to pay the principal of and interest on the Notes , or the pledge thereof, or in any way contesting or affecting the validity or enforceability of the Notes, this Contract of Purchase, the Fiscal Agency Agreement or the Resolution, or contesting the powers of the Issuer or its authority with respect to the Notes , the Resolution, the Fiscal Agency Agreement or this Contract of Purchase; or (iii ) in which a final adverse decision could (a) materially and adversely affect the operations of the Issuer or the consummation of the transactions contemplated by this Contract of Purchase, the Fiscal Agency Agreement or the Resolution, (b) declare this Contract oil Purchase or the Fiscal Agency Agreement to be invalid or unenforceable in whole or in material part, or (c) adversely affect the exemption of the interest paid on the Notes from applicable Federal and State income taxation. -9- (G) The audited balance sheet of the Issuer as of June 30, 1984 and the related statements of revenues, expenditures and changes in 'financial position for the fiscal year ended. on such date., as set forth in the Official Statement, are true, complete and correct and fairly present the financial condition of the Issuer as of such date and the results of its operations for such fiscal year. There has been no material adverse change in the financial condition of the Issuer since June 30, 1984 except as described in the Official Statement. The Official Statement, as of its date, does not contain any untrue statement of material fact or omit to state any material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading; provided, however, that this representation does not apply. to any information concerning the Bank furnished by the Bank in writing specifically .for inclusion in the Official Statement. (H) Between the date hereof and the Closing, without the prior written consent of the Bank, the Issuer will not have issued any bonds , notes or other obligations for borrowed money except for such borrowings as may be described in or contemplated by the Official Statement. (I) The Issuer has not been notified of any listing or proposed listing by the Internal Revenue Service to the effect that the Issuer is a bond issuer whose arbitrage certificates may not be relied upon. 1 (J) Any certificates signed by any official of the Issuer and delivered to the Bank shall be deemed a representation and warranty by the Issuer to the Bank as to the statements made therein but not of the person signing the same. -10- • 9. Covenants of the Issuer. The Issuer convenants and agrees with the Bank that: (A) The Issuer will punctually pay or cause to be paid the principal of and interest on the Notes in strict conformity with the terms of the Resolution and the Notes and it will faithfully observe and perform all of the conditions, covenants and requirements of the Notes, the Resolution and this Contract of Purchase. The Issuer shall pay, when due, all principal of and interest on the Notes. The Issuer will cause the Pledged Revenues to be deposited with the fiscal agent under the Fiscal Agency Agreement by the dates and in the amounts contemplated by, the Resolution. (B) The Issuer will not incur any indebtedness for money borrowed which may or must be repaid from the 1985-86 Revenues except to the extent that the aggregate amount of the Notes and all such other indebtedness is within the limits required by law and except to the extent thatnsuch other indebtedness will not be secured by a pledge of the Pledged Revenues that ranks prior to or on a parity with the pledge thereof created by Section 6 of the Resolution. (C) The Issuer will furnish such information, execute such instruments and take such other action in cooperation with the Bank if and as the Bank may reasonably request in order (i ) to qualify the Notes for offer and sale under the Blue Sky or other securities laws and regulations of such. states and jursidictions of the United Staes as the Bank may designate and (ii ) to determine the eligibility of the Notes for investment under the laws -11- of such states and other jurisdictions, and will , if requested by the Bank, use its best efforts to continue such qualifications in effect so long as required for distribution and remarketing of the Notes. (D) The Issuer will promptly give written notice to the Bank of the occurrence of any Event of Default referred to in Section 10, or any event which, upon a lapse of time or notice or both, would become an .Event of Default. Further, the Issuer will promptly give written notice to the Bank of any information obtained by the Issuer regarding pending, proposed or completed action by the United States government or any of its agencies or instrumentalities or by the government of the State or any of its agencies or instrumentalities which, in the reasonable judgment of the Issuer, could result in a reduction in revenues by ten percent (10%) or more below those shown in the adopted budget of the Issuer for fiscal year 1985-86 heretofore delivered to the Bank and further will promptly give notice to the Bank of any pending or threatened litigation which, in the reasonable opinion of the Issuer, could materially and adversely affect the ability of the Issuer to repay the Notes or any indebtedness permitted under this Contract of Purchase. The Issuer will consult from time to time with the Bank when requested by the Bank, and furnish such additional information as the Bank may reasonably request, in order to keep the Official Statement or Offering Memorandum current. 1 (E) The Issuer will maintain adequate books , accounts and records in accordance with generally accepted accounting principles and practices consistently applied, and permit employees or agents of the Bank at -12- any reasonable time to examine its books, accounts and records and make copies and memoranda thereof. (F) The Issuer will deliver to the Bank in form and detail satisfactory to the Bank: (i-) as soon as available after the close of each accounting period of its fiscal year, commencing with the accounting period ending October 11 , 1985, a cash flow report for such accounting period; (ii ) all documents , certificates and other written information prepared by the Issuer for its Board of Supervisors relating to its budget, the Notes and any proposed or actual financings; and (iii ) such other existing statements, budgets, forecasts and reports as the Bank may reasonably request. (G) The Issuer will apply the proceeds from the sale of the Notes for the purposes specified in the Resolution. (H) The Issuer will not modify or amend the Resolution or the Fiscal Agency Agreement without the prior written consent of the Bank. (I) The Issuer will take no action or fail to take any action with respect to investment of proceeds of the Notes or in any other respect which will result in constituting the Notes as "arbitrage bonds" within the meaning of that term as used in Section 103(c) of the Internal Revenue Code or which would violate any Treasury Regulations thereunder. 10. Events of Default. The following constitute Events of Default under this Contract of Purchase: -13- (A) If default shall be made in the due and punctual payment of principal of the Notes by the County when and as the .same shall become due and payable at maturity; (B) If default shall be made in the due and punctual payment of interest on the Notes by the County when and as the same shall become due and payable and such default shall continue uncured for five (5) Business Days (as defined in the Resolution) ; or (C) If the Issuer shall file any petition or action for relief under any bankruptcy, reorganization, insolvency or moratorium law, or any other law or laws for the relief of, or relating to, debtors then, and in any 'such event, the Bank may, by notice to the Issuer, declare the obligations of the Bank under this Contract of Purchase to be terminated, whereupon the obligations of the Bank shall immediately terminate. If the Bank holds any of the outstanding Notes in its inventory at such time, it may exercise such rights and remedies as are provided to all other owners of Notes under the Resolution, it being intended and agreed that the rights and remedies provided for in the Resolution are cumulative of and in addition to the provisions of this Section. 11 . Conditions to Obligations of Bank at Closing. The Bank has entered into this Contract of Purchase in reliance upon the representations and warranties of the Issuer contained herein and the performance by the Issuer of its obligations hereunder, as of the date hereof and as of the -14- Closing. The obligation of the Bank to purchase the Notes at the Closing is and shall be subject, at the option of the Bank, to the following futher conditions: (A) The representations and warranties of the Issuer contained herein shall be true, complete and correct in all material respects at the date hereof and at and as of the Closing, as if made at and as of the Closing, and the statements made in all certificates and other documents delivered to the Bank at the Closing and otherwise pursuant hereto shall be true, complete and correct in all material respects at and as of the Closing; and there shall not have occurred any Event of Default or any event which, with the lapse of time or notice or both, would constitute an Event of Default under this Contract of Purchase; (B) At and as of the Closing (i ) the Resolution and the Fiscal Agency Agreement shall be in full force and effect and shall not have been amended, modified or supplemented except as may have been agreed to in writing by the Bank; (ii ) all actions under the Act which, in the opinion of Bond Counsel , shall be necessary in connection with the transactions contemplated hereby, shall have been duly taken and shall be in full force and effect; and (iii ) the Issuer shall perform or have p rf-ormed all of its obligations required under or specified in the Resolution or this Contract of Purchase to be performed at or prior to the Closing, (C) There is no action, suit, proceeding, inquiry or investigation, at law or in equity, before or by any court or public body, —15— pending or (to the knowledge of the Issuer) threatened against the Issuer which has any of the effects described in paragraph (F) of Section 8-hereof or contesting in any way the completeness or accuracy of the Official Statement; (D) No order, decree or injunction of any court of competent jurisdiction, nor any. order, ruling or regulation of the Securities and Exchange Commission, shall have been issued or made with the purpose or effect of prohibiting the issuance, offering, sale or remarketing of the Notes as contemplated hereby and no legislation shall have been enacted, or a bill favorably reported for adoption, or a decision by a court established under Article III of the Constitution of the United States rendered, or a ruling, regulation, proposed regulation or official statement by or on behalf of the Securities and Exchange Commission or other governmental agency having jurisidiction of the subject matter shall be made or issued, to the effect that the Notes or any other securities of the Issuer or of any similar body of the type contemplated herein are not exempt from the registration, qualification or other requirements of the Securities Act of 1933, as amended and as then in effect, or of the Trust Indenture Act of 1939, as amended and as then in effect; and (E) At or prior to the Closing, the Bank shall have received three copies of the following documents in each case dated at and as of the Closing and satisfactory in form and su&stance to the Bank: (1 ) An approving opinion of Bond Counsel , as to the Notes , addressed to the Issuer and the Bank; -16- (2) A supplemental opinion of Bond Counsel , addressed to the Bank, to the effect that: (i ) This Contract of Purchase and the Fiscal Agency Agreement have -been duly authorized, executed and delivered by the Issuer and constitute the valid and legally binding obligations of the Issuer enforceable against the Issuer in accordance with their respective terms, except that enforceability thereof may be limited by applicable bankruptcy, insolvency, moratorium and other laws in effect from time to time affecting the rights of creditors generally and by application of general principles of equity; and (ii ) The statements contained in the Official Statement under the captions "The STOP Notes," "Legal Opinions," "Legality for Investment in California" and "Constitutional Limitations on Taxes and Appropriations ," insofar as such statements purport to summarize the Notes, the Resolution and the Act, present a fair and accurate summary thereof for the purpose of use in the Official Statement; (3) A certificate signed by an appropriate official of the Issuer to .the effect that (i ) the representations , warranties and agreements of the Issuer herein are true, complete and correct in all material respects as of the date made and as of the Closing; (ii ) the Issuer has performed all its obligations required under or speci?ied in the Resolution and this Contract of Purchase to be performed at or prior to the Closing; (iii ) there is no action, suit, proceeding, inquiry or investigation, at law or in equity, before or by any court or public body, pending, or to his or her knowledge, -17- threatened against the Issuer, which has any of the effects described in paragraph (F) of Section 8 hereof or contesting in any way the completeness or accuracy of the Official Statement (but in lieu of or in conjunction with such certification the Bank may, in its sole discretion, accept certificates or opinions of Counsel to the Issuer or Bond Counsel that in their opinion the issues raised in any such pending or threatened litigation are without substance and that the contentions of all plaintiffs therein are without merit) ; (iv) such official has reviewed the Official Statement and on such basis certifies that the Official Statement does not contain any untrue statement of a material fact or omit to state any material fact necessary to make the statements therein, in light of the circumstance under which they were made, not misleading; and (v) no Event of Default exists, or with the lapse of time or notice or both, would exist, under this Contract of Purchase; (4) An arbitrage certificate of the Issuer, in form and substance satisfactory to Bond Counsel , signed by an appropriate official of the Issuer; (5) Evidence satisfactory to the Bank that at and as of the Closing the Notes have the same ratings, if any, from Moody' s Investors Service, Inc. , and Standard & Poor' s Corporation as were used on the date of pricing to determine the interest rate for the Notes ; t (6) A certificate, together with a fully executed copy of the Resolution, of the Clerk of the Board of Supervisors of the Issuer to the effect that: -18- -�j M such copy is a true and correct copy of the Resolution; and (ii ) the Resolution was duly adopted and has not been Imodified, amended, rescinded or revoked and is in full force and , effect at and as of the Closing, except for amendments, if any, ted with the consent of the Bank; , adopted ' (7) A fully executed copy of the Fiscal Agency Agreement; and (8) Such additional legal opinions, certificates, proceedings, instruments and other documents as the Bank or Bond Counsel may reasonably request to evidence compliance by the Issuer with legal requirements, the truth and accuracy,. at and as of the Closing, of the representations, warranties and agreements of the Issuer herein contained and the statements contained in the Official Statement, and the due performance and satisfaction by the Issuer at or prior to such time of all agreements then to be performed and all conditions then to be satisfied by the Issuer, provided that Bond Counsel shall not be required to render an opinion as to the truth and accuracy of the representations, warranties and agreements of the Issuer ,contained herein or of the statements contained in the Official Statement except as set forth in subpar4graph (E)(2) of this Section. A 12. Termination of Obligations of Bank: If the Issuer shall be unable to satisfy the conditions set forth in Section 11 to the obligations of -19- the Bank contained in this Contract of Purchase, the obligations of the Bank under this Contract of Purchase may be terminated by the Bank by notice to the Issuer at, or at any time prior to, ..the Closing.A Notwithstanding any provision herein to the contrary, the performance of any and all obligations of the Issuer hereunder and the performance of any and all conditions contained herein for the benefit of the Bank may be waived by the Bank in writing in its sole discretion. The Bank shall also have the right to terminate, in its sole discretion, its obligations under this Contract of Purchase, by notice to the Issuer at, or at any time prior to, the Closing, if between the date hereof and the Closing: (i ) any event occurs or information becomes known, which, in the reasonable professional judgment of the Bank, makes untrue any statement of a material fact set forth in the Official Statement or results in an omission to state a material fact necessary to make the statements made therein, in light -of the circumstances under which they are made, not misleading; (ii ) the market for the Notes or the market price of the Notes or the ability of the Bank to enforce contracts for the sale of the Notes shall have been materially and adversely affected, in the reasonable professional judgment of the Bank, by (a) legislation enacted by the Congress of the United States, or passed by either House of Congress , or favorably reported for passage to either House of Congress by any Committee of such House to which such legislation has been referred for lonsideration, or by the legislature of the State, or a decision rendered by a court of the United States or the State or by the United States Tax Court, or a ruling, order, or regulation (final , temporary or proposed) made by the Treasury Department of the United States or -20- the Internal Revenue Service or other Federal or State authority, which would have the effect of changing, directly or indirectly, the Federal income tax consequences or State income tax consequences of interest on obligations of the general character of the Notes in the hands of the holders thereof, or (b) any new outbreak of hostilities or other national or international calamity or crisis, the effect of such outbreak, calamity or crisis on the financial markets of the United States being such as, in the reasonable professional judgment of the Bank, would affect materially and adversely the ability of the Bank to market the Notes, or (c) a general suspension of trading on the New . York Stock Exchange, or fixing of minimum or maximum prices for trading or maximum ranges for prices for securities on the New York Stock Exchange, whether by virtue of a determination by that Exchange or by order of the Securities and Exchange Commission or any other governmental authority having jurisdiction, or (d) a general banking moratorium declared by either Federal or State or New York authorities having jurisdiction; or (iii ) additional material restrictions not in force or being enforced as of the date hereof shall have been imposed upon trading in securities generally by any governmental authority or by any national securities exchange which, in the reasonable professional judgment of the Bank, materially and adversely affect the market price for the Notes . The arrangements and agreements contained herein shall terminate automatically upon the payment in full 6f the Notes and may not be sooner terminated except as otherwise specifically provided in this Contract of Purchase. The agreements of the Issuer to indemnify the Bank and to pay expenses and compensate the Bank as provided elsewhere in this Contract of Purchase shall survive termination of this Contract of Purchase. -21- 13. Conditions to Obligations of Bank under Sections 6 and 7. The obligations of the Bank under Sections 6 and 7 of this Contract of Purchase are and shall be subject, at the opt-ion of the Bank, to the condition as of the commencement of each new Interest Period that no Event of Default exists under this Contract of Purchase. If the Issuer shall be unable to satisfy such condition, the obligations of the Bank under this Contract of Purchase may be terminated by the Bank in accordance with Section 10. 14. Conditions to Obligations of the Issuer. The performance by the Issuer of its obligations under this Contract of Purchase with respect to issuance, sale and delivery of the Notes to the Bank is conditioned upon (i ) the performance by the Bank of its obligations hereunder; and (ii ) receipt by the Issuer and the Bank of opinions and certificates being delivered at or prior to the Closing by persons and entities other than the Issuer. 15. Expenses . (A) Unless the obligations of the Bank under this Contract of Purchase are terminated by the Bank at or prior to the Closing for any reason permitted by this Contract of Purchase, the Bank shall pay all expenses incident to the performance of the Issuer' s obligations hereunder (other than the fees and expenses of Bond Counsel ) , the purchase price,for the Notes to the Bank�.hay.ing been adjusted accordingly, including but not limited to the following: (i ) the cost of the reproduction of the Resolution; (ii ) the cost of the preparation, printing and delivery of the Notes ; (iii ) the fees for Note ratings ; (iv) the cost of printing and distribution of the Official Statement; (v) any costs or expenses incurred with any signature company incident to signing the Notes ; (vi ) the fees payable to the California —22— Debt Advisory Commission; (vii ) costs of preparation and reproduction of this Contract of Purchase; (viii ) Initial issuing and paying agent and fiscal agent costs and fees; and (ix) all othercostsassociated with the issuance of the Notes including, but not limited to, out-of-state travel and related expenses of the Bank and officials of the Issuer. (8) If the obligations of the Bank under this Contract of Pruchase are terminated by the Bank at or prior to the Closing for any reason permitted by this Contract of Purchase, the Issuer shall pay all the expenses referred to in paragraph (A) of this Section. (C) The Bank shall pay all expenses relating to the remarketing of the Notes, the compensation provided for in Section 6(B) hereof having been adjusted accordingly. (D) The Issuer shall pay all legal expenses of the Bank incurred by reason of any Event of Default or any subsequent "work out" or by reason of any litigation between the Bank and the Issuer regarding this Contract of Purchase in which there is an adverse legal determination against the Issuer. 16. Documentation. The Issuer agrees that the information furnished to the Bank in accordance with this Coniract of Purchase may be used by the Bank to prepare, and revise from time to time as it deems necessary, Offering Memoranda for purposes of remarketing the Notes. For such purpose, the Issuer further agrees that the Bank may use any other information furnished by the -23- r • Issuer to the Bank from time to time for such purpose. The Bank will provide the Issuer with a copy of each Offering Memorandum at least three business days prior to its intended use. 17. Indemnification. To the extent permitted by law, the Issuer agrees to indemnify the Bank and to hold the Bank harmless against any loss, damage, claim, liability or expense (including reasonable cost of defense) arising out of or based upon any allegation that, in connection with the sale and remarketing of the Notes , the Official Statement included any untrue statement of a material fact or omitted to state a material fact necessary in order to make the statements herein, in the light of the circumstances under which they were made, not misleading, except for statements concerning the Bank based upon information furnished in writing by the Bank. 18. Notices. Any notice or other communication to be given under this Contract of Purchase (other than the acceptance hereof as specified in the first paragraph hereof) shall be given by telephone or telex, confirmed in writing, or by delivering the same in writing, if to the Issuer to Alfred P. Lomeli , Treasurer-Tax Collector of Contra Costa County, and if to the Bank, to Bank of America National Trust and Savings Association, 555 California Street, 9th Floor, San Francisco, California 94104, Attention: Arnold F. Mazotti . 19. Parties in Interest; Sury;val of Representations and Warranties. This Contract of Purchase when accepted by the Issuer in writing as heretofore specified shall constitute the entire agreement between the Issuer and the Bank and is made solely for the benefit of the Issuer and the -24- Bank (including their respective successors and assigns) . No other person shall acquire orhave any right hereunder or by virtue hereof. All of the representations and warranties of the Issuer in this Contract of Purchase shall survive regardless of (a)-any investigation or any statement in respect thereof made by or on behalf of the Bank, W delivery of any payment by the Bank for the Notes hereunder, and '(c) any termination of this Contract of Purchase. 20. Execution in Counterparts. This Contract of Purchase may be executed in counterparts each of which shall be regarded as an original and all of which shall constitute one and the same document. 21 . Applicable Law. This Contract of Purchase shall be interpreted under, governed by and enforced in accordance with the laws of the State. Very truly yours, BANK OF AMERICA NATIONAL TRUST AND SAVINGS ASSOCIATION By The foregoing is hereby agreed to and accepted as of the date first above written: COUNTY OF CONTRA COSTA, CALIFORNIA By Treasurer-Tax Collector 7296C -25- P.EW ISSUE OFFICIAL STATEMENT RATING MOODY'S r S&P -ir,"the ovilfion of Bond Counsel, under existing statutes, regulations, rulings and court decisions, interest on the Stop Wo es�,k, exc!-pt from present federal income taxes and from .present State of California personal income taxes. $70,000,000 COUNTY OF CONTRA COSTA, CALIFORNIA 1985-86 SHORT TERM OPTIONAL PUT TAX AND REVENUE ANTICIPATION NOTES (STOP NOTES) Dated July 1, 1985 Y Due: July 30, 1986 The County of Contra Costa, California 1985-86 Short Term Optional Put Tax and Revenue Anticipation Notes (the ZStop Notes") are being issued to finance seasonal cash flow requirements of the County during the fiscal year ending e 30, 1986. The Stop Notes are issued in registered form in the denomination of $100,000 or any integral multiple thereof. The Stop Notes are issued in five series in the aggregate principal amount of $70,000,000. The owners of the Stop Notes of Series A, B, C and D will have the right to demand repurchase of the same by Bank of America NT&SA (the "Bank"), acting as Remarketing Agent, on the Option Tender Date applicable to that series, which is each Wednesday beginning July 31, 1985 in the case of Series A, each fourth Wednesday beginning July 31, 1985 in the case of Series B, October 30, 1985 and January 29 and April 30, 1986 in the case of Series C and January 8, 1986 in the case of Series D. There is no Option Tender Date applicable to Series E. All series will mature on July 30, 1986. The initial rates of interest for the Stop Notes of Series A, B, C, and D are shown below. Such rate will apply to each series until the day preceeding the first Option Tender Date for such series and thereafter will be variable. On the Monday prior to each Option Tender Date for each series, effective on each Option Tender Date, the Bank will establish the interest rate at a level sufficient to enable the Bank to remarket Stop Notes of such series tendered to it for repurchase on such Option Tender Date at par plus accrued interest, which interest rate will apply until the day preceding the next Option Tender Date for such series or until maturity. The rate of interest for Series E is shown below. (See "THE STOP NOTES - Interest."). The Bank's obligations as Remarketing Agent are subject to certain conditions described in this Official Statement. The obligation to purchase Stop Notes on an Option Tender Date is solely the obligation of the Bank. The County is not so obligated. The initial offering price for Stop Notes of each series is par plus accrued interest, if any. Series Principal Amount Initial Interest Rate A % B —% C —% D —% E Interest Rate —% Principal of and interest on the Stop Notes are payable in lawful money of the United States of America. Principal is payable at maturity at the principal office of the Paying Agent, BankAmerica Trust Company of New York, (the "Paying Agent") in New York, New York. Interest on •the Stop Notes will be computed on the basis of a year of 365 days and accrues from July 1, 1985. Interest will be paid by check drawn on the Federal Reserve Bank of New York and mailed to the registered owners of the Stop Notes as of 10:00 a.m., New York City time, on each fourth Wednesday beginning July 31, 1985 with respect to Series A and B, on October 30, 1985 and January 29, April 30 and July 30, 1986 with respect to Series C, on January 8 and July 30, 1986 with respect to Series D, and on July 30, 1986 with respect to Series E. In the event that there is a default in the payment of interest that continues for 5 business days, the 'Stop Notes will become due and payable ten business days following the end of such grace period. The Stop Notes, in accordance with California law, are general obligations of the County, but are payable only out of the taxes, income, revenue, cash receipts ,and other moneys of the County attributable to the fiscal year 1985-1986 and legally available for payment thereof. The Stop Notes are equally and ratably secured by a pledge of certain revenues as described in "THE STOP NOTES--Security for the Stop Notes.' In furtherance of the pledge, the County has appointed First Interstate Bank of California as Fiscal Agent. The Resolution requires certain revenues to be transferred to the Fiscal Agent on certain dates and held in a special account until July 30, 1986, at which time these funds will be used to repay the Stop Notes. The Stop Notes are direct obligations of the County and, to the extent set forth herein, are legal investments for commercial banks in California and are eligible to secure deposits of public moneys. The Stop Notes will be offered when, as and if issued and received by the Underwriter, subject to the approval of legality by Orrick, Herrington b Sutcliffe, San Francisco, California, Bond Counsel, and the approval of certain legal matters for the Underwriter by its counsel, Jones, Day, Reavis b Pogue, Los Angeles, California. Certain other legal matters will be passed upon by the County Counsel for Contra Costa County. The Stop Notes, in temporary or definitive form, will be available for deliv@ry on or about July 1, 1985 in New York, New York. BANKAMERICA CAPITAL MARKETS GROUP June 1985 f19f.1� No dealer, broker, salesperson or other person has been authorized by the ' County or the Underwriter to give any information or to make any � creprersentations other than those contained herein and, if given or made, such other information or representation must not be relied upon as having been authorized by the County or the Underwriter. This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy' nor shall there be any sale of the Stop Notes by a person in any jurisdiction in which it is unlawful for such person to make such an offer, solicitation or sale. This Official Statement is not to be construed as a contract with the purchasers of the Stop Notes. Statements contained in this Official Statement which involve estimates, forecasts or matters of opinion, whether or not expressly so described herein, are intended solely as such and are not to be construed as a representation of facts. The information set forth herein has been obtained from official sources which are believed to be reliable but it is not guaranteed as to accuracy or completeness, and is not to be construed as a representation by the Underwriter. The information and expressions of opinions herein are subject to change without notice and neither delivery of this Official Statement nor any sale made hereunder shall , under any circumstances, create any implication that there has been no change in the affairs of the County of Contra Costa since the date hereof. This Official Statement is submitted in connection with the sale of the Stop Notes referred to herein and may not be reproduced or used, in whole or in part, for any other purpose, unless authorized in writing by the County. - i TABLE OF CONTENTS Page Page Board of Supervisors. . . . . . . . . . . . . . . . . . . iii County Financial Information. :. . . . . . . . . . . . . . 15 County Officials. . . . . . . . . . . . . . . . . . . . . . . iii Accounting Policies, Reports and Audits. . . 17 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . 1 General County Funds. . . . . . . . . . . . . . . . . . . . 17 County of'Contra Costa 1985-86 Special District Funds Under Control of i Short-Term Financing Program . . . . . .. . 1 Board of Supervisors. . . . . . . . . . . . . . . . . . 17 The Stop Notes. . . . . . . . . . . . . . . . . . . . . . . . . 2 Special District Funds Under Control of General Provisions. . . . . . . . . . . . . . . . . . . 2 Local Boards and School District Funds 17 Authority for Issuance. . . . . . . . . . . . . . . 2 Trust and Agency Funds. . . . . . . . . . . . . . . . . . 17 Optional Demand for Repurchase. . . . . . . 2 Historical. Statements. . . . . . . . . . . . . . . . . . . . . 19 Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Intrafund Borrowing and Cash Flow. . . . . . . . . 20 Acceleration of Stop Notes. . . . . . . . . . . 4 Employees. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Transfer. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Retirement Programs. . . . . . . . . . . . . . . . . . . . . . . 25 Security for the Stop Notes. . . . . . . . . . 4 Long Term Obligations. . . . . . . . . . . . . . . . . . . . . 26 Available Sources of Payment. . . . . . . . . . . 6 General Obligation Debt. . . . . . . . . . . . . . . . . 26 Legal Opinion. . . . . . . . . . . . . . . . . . . . . . . . . . 6 Lease Obligations. . . . . . . . . . . . . . . . . . . . . . . 26 Legality for Investment in California. . 7 Overlapping Debt. . . . . . . . . . . . . . . . . .. . . . . . 27 Ratings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Self-Insurance Program. . . . . . . . . . . . . . . . . . . . 29 Litigation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 The County. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 Underwriting. . . . . . . . . . . . . . . . . . . . . . . . . . . 8 County Government. . . . . . . . . . . . . . . . 29 Additional Information. . . . . . . . . . . . . . . . . 8 Industry and Employment. . . . . . . . . . .: . . . . . . . 29 Funding by the State of California. . . . . 8 Environmental Control Services. . . . . . . . . . . . 34 Constitutional Limitations on Population. . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . 35 Taxes and Appropriations. . . . . . . . . . . . . 9 Commercial Activity. . . . . . . . . . . . . . . . . .. . . . . 37 Ad Valorem Property Taxes. . . . . . . . . . . . . . 9 Construction Activity. . . . . . . . . . . . . . . . . . . . . 38 Largest Taxpayers. . . . . . . . . . . . . . . . . . . . 12 Transportation. . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 Redevelopment Agencies. . . . . . . . . . . . . . . 12 Agriculture. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 Current County Financial Status. . . . . . . . 13 Education and Community Services. . . . . . . . . . 4c Hospital Finances. . . . . . . . . . . . . . . . . . . . 13 Appendix A--Financial Statements IN CONNECTION WITH THIS INITIAL OFFERING, THE UNDERWRITER MAY OVERALLOT OR EFFECT TRANSACTIONS WHICH STABILIZE OR MAINTAIN THE MARKET PRICE OF THE STOP NOTES AT A LEVEL ABOVE THAT WHICH MIGHT OTHERWISE PREVAIL IN THE OPEN MARKET. SUCH STABILIZING, IF COMMENCED, MAY BE DISCONTINUED AT ANY TIME. THE UNDERWRITER MAY OFFER AND SELL THE STOP NOTES TO CERTAIN DEALERS AND BANKS AT PRICES LOWER THAN THE PUBLIC OFFERING PRICE STATED ON THE COVER PAGE HEREOF AND SAID PUBLIC OFFERING PRICE MAY BE CHANGED FROM TIME TO TIME BY THE UNDERWRITER. 1 ii C COUNTY OF CONTRA COSTA, CALIFORNIA Board of Supervisors Nancy C. Fanden (District 2) Chair Tom Powers Sunne Wright McPeak (District- 1 ) (District 4) Robert I . -Schroder Tom Torlakson (District 3) (District 5) Philip J. Batchelor Clerk of the Board and County Administrator County Officials Donald L. Bouchet Alfred P. Lomeli Auditor-Controller Treasurer-Tax Collector Victor J. Westmen James R. Olsson County Counsel County Clerk-Recorder r r $70,000,000 ` ' 1985-86 SHORT TERM OPTIONAL PUT TAX AND REVENUE ANTICIPATION NOTES SERIES A, B, C, D AND E To Finance the General Fund Cash Flow for Fiscal Year 1985-86 of the COUNTY OF CONTRA COSTA, CALIFORNIA INTRODUCTION The purpose of this Official Statement, which includes the attached Appendix, is to provide certain information concerning the sale and delivery of the 1985-86 Short Term Optional Put Tax and Revenue Anticipation Notes ("Stop Notes") of the County of Contra Costa, California (the "County") . The five series of Stop Notes, which are issued in an aggregate principal amount of $70,000,000, are equally and ratably secured. The Stop Notes are general obligations of the County, but are payable only out of taxes, income, revenues, cash receipts and other moneys of the County attributable to the , fiscal year 1985-86 and legally available for the payment thereof. The Stop Notes are being issued to finance the "dry periods" of the County' s General Fund cash flow during the fiscal year (July 1 through June 30) . Borrowing is necessary because County General Fund expenditures tend to occur in relatively level amounts throughout the year while receipts follow an uneven pattern, primarily as a result of secured property tax installment payment dates in December and April and as a result of delays in payments from other government agencies, the two largest sources of County revenues. As a result, the General Fund cash balance is negative during parts of the fiscal year. The Stop Notes are intended to finance such cash deficits, and are an alternative to borrowings from County-held pooled income funds. COUNTY OF CONTRA COSTA 1985-86 SHORT-TERM FINANCING PROGRAM The County of Contra Costa is issuing the Stop Notes to finance the "dry periods" of its General Fund cash flow during the 1985-86 fiscal year. The Stop Notes represent the seventh annual short-term financing program which the County has undertaken to meet its cash flow requirements. The County has always paid principal and interest on its notes when due. In fiscal year 1982-83, the County sold Tax and Revenue Anticipation Notes in the amount of $48 million with $25 million maturing on December 30, 1982 and $23 million maturing on June 28, 1P83. Also in fiscal year 1982-83, the County commenced on December 1 , 1982, a tax-exempt commercial paper program and issued $25 million of commercial paper with a final maturity of July 15, 1983. In fiscal year 1983-84 the County sold Tax and Revenue Anticipation Notes in the amount of $27 million and commercial paper in the amount of $37 million secured by a pledge of certain of the County' s share of unrestricted taxes, income, revenue, cash receipts and other moneys received and attributable to the 1983-84 fiscal year. 0261 - 1 - In early February 1984, at which time there was $37 million of commercial Gaper outstanding with maturities through March 23, 1984, the County was ' informed by its commercial paper dealer that uncertainties created by the County Hospital deficit made it advisable for the County to suspend issuance of commercial paper. Accordingly, on February 16, 1984 the County privately placed $37 million of short-term obligations due July 18, 1984. Proceeds of this transaction were used to pay all outstanding commercial paper as it matured through March 23, 1984. In fiscal year 1984-85, the County sold Short Term Optional Put Tax and Revenue Anticipation Notes in the amount of $65 million. These notes were secured by a- pledge of certain of the County' s share of unrestricted taxes, i income, revenue, cash receipts and other money received and attributable to the 1984-85 fiscal year. As of April , 1985, the County had placed with the Fiscal Agent, Bank of America NT&SA, sufficient moneys to pay principal and j interest on these notes at maturity. The County has never defaulted on the payment of principal and interest on on its short-term obligations when due. II THE STOP NOTES I i General Provisions I Stop Notes will be executed and delivered in fully registered form, without coupons , in the denomination of $100,000 and any integral multiple thereof. Principal of and interest on the Stop Notes are payable in lawful money of the United States of America. Principal is payable by the County 4t maturity at the principal office of the Paying Agent, BankAmerica Trust Company of New York in New York, New York. Interest is payable by check drawn on the Federal Reserve Bank of New York and mailed to the owners of record as of 10:00 a.m. , New York City time, on July 31 , 1985 and each fourth Wednesday thereafter with respect to Series A and B, on October 30, 1985 and January 29, April 30 and July 30, 1986 with respect to Series C, on January 8 and July 30, 1986 with respect to Series D and on July 30, 1986 with respect to Series E ("Interest Payment Dates") . Owners of Stop Notes tendered for repurchase will receive on the Option Tender Date a check drawn on the Federal Reserve Bank of New York for principal and accrued interest (see "Optional Demand for Repurchase" below) . The Stop Notes mature on July 30, 1986. If there is a default in the payment of interest on the Stop Notes that continues for 5 business days, the Stop Notes will become due and payable on the 10th business day following the end of such period. Authority for Issuance The Stop Notes are issued under the authority of Article 7.6, Chapter 4, Part 1 , Division 2, Title 5 (commencing with Section 53850) of the California Government Code and pursuant to a Resolution (the "Resolution") adopted by the Board of Supervisors of the County on ,June 11 , 1985. Optional Demand for Repurchase Owners of Stop Notes of Series A, B, C, and. D will have the right to demand repurchase of their Stop Notes or any $100,000 portion thereof on each Option Tender Date applicable to that series at par plus accrued interest calculated from the preceding, Interest Payment Date (except in the case of the first Option Tender Date, in which case interest is calculated from July 1 , 1985. ) 02610 - 2 - The Option Tender Dates with respect to Series A are July 31 , 1985 and every Wednesday thereafter, with respect to Series B are July 31 , 1985 and every fourth Wednesday thereafter, with respect to Series C are October 30, 1985 and January 29 and April 30, 1986, and with respect to Series D is January 8, 1986 (or if any such date is not a business day, the next succeeding business day). There is no Option Tender Date applicable to Series E. Owners of such series of Stop Notes may exercise their right to demand repurchase by giving telephonic notice to the Paying Agent by 10:00 a.m. , New York City time, on the Tuesday preceding the Option Tender Date for such series (or if such day is not a business day, the next preceding business day) and by making physical delivery of the Stop Notes to be repurchased, accompanied by a signed Election Notice appearing on the reverse side of the Stop Notes, to the Paying Agent not later than 10:00 a.m. , New York City time, on such Option Tender Date. If such Option Tender Date is not a business day, such delivery shall be made on the following business day. "Business day" means a day on which banks in New York City and San Francisco are not required or permitted to remain closed and on which the New York Stock Exchange is not closed. The County has entered into a Contract of Purchase and Dealer Remarketing Agreement (the "Remarketing Agreement"> with Bank of America NT&SA, pursuant to which the Bank, as Remarketing Agent, undertakes to remarket all Stop Notes which in accordance with the terms of the Resolution may be tendered to it for repurchase subject to certain conditions. In the event the Remarketing Agent is unsuccessful in remarketing Stop Notes on any Option Tender Date, the Remarketing Agent will position such Stop Notes in its dealer inventory. THE OBLIGATIONS OF THE REMARKETING AGENT UNDER THE REMARKETING AGREEMENT MAY BE TERMINATED IF THE COUNTY FAILS TO PAY PRINCIPAL OF THE STOP NOTES WHEj DUE OR FAILS TO PAY INTEREST ON THE STOP NOTES WHEN DUE AND SUCH FAILURE CONTINUES FOR 5 BUSINESS DAYS OR IF THE COUNTY FILES A PETITION IN BANKRUPTCY. THE OBLIGATION TO REPURCHASE THE STOP NOTES IS SOLELY THE OBLIGATION OF THE REMARKETING AGENT AND IS NOT AN OBLIGATION OF THE COUNTY. Interest Interest to maturity on the Series E Stop Notes is at the initial rate set forth on the cover page of this Official Statement. Interest on the Stop Notes of Series A, B, C and D is initially payable at the rate applicable to such series set forth on the cover page of this Official Statement. On each Monday preceding an Option Tender Date for Stop Notes of any such series (or, if such day is not a business day, on the next preceding business day) the 'Remarketing Agent will establish the interest rate applicable to such series for the period commencing on such Option Tender Date to and including the day preceding the next Option Tender Date for such series. The new interest rate will be published on the Munifacts Wire. The rate established by the Remarketing Agent will be a rate which, in the judgment of the Remarketing Agent, is sufficient to enable the Remarketing Agent to remarket Stop Notes of such series at par plus accrued interest, if any, on the applicable Option Tender Date. If the maturity of the Stop Notes should be accelerated because of a default in payment of interest, they will bear interest until paid at the rate in effect on the date of default. If the Bank at any time should hold Stop Notes for its own account totalling 15% or more of the aggregate principal amount of Stop Notes then outstanding of the series for which an interest rate is being determined, the rate of interest for such series determined as of any Option Tender Date shall . not be more than 120% or less than 80% of the index rate applicable to such 02610 - 3 - r series. The index rates for Series A, B, C and D will be 75%, 80%, 85% and 8S%,,, respectively, of the bond equivalent yield of 91—day United States ;. Treasury bills on the basis of the average per annum discount at which such 91—day Treasury bills shall have been sold at the most recent United States Treasury auction prior to such Option Tender Date. If for any- reason the Bank fails to establish an interest rate in respect of any series of Stop Notes for the period commencing on any Option Tender Date, the interest rate for such period will be 100% of the index rate applicable to such series. The maximum legal rate of interest on the Stop Notes currently is 12%. The statutory authorization of such 12% maximum will expire on December 31 , 1985 and, if it is not extended, the maximum legal rate, of interest thereafter until maturity of the Stop Notes will be 10%. .Interest accrues on the Stop Notes from July 1 , 1985 to and including the day preceding the first Interest Payment Date, and thereafter from each Interest Payment Date to and including the day preceding the next Interest Payment Date. Interest on Stop Notes is payable by check or draft drawn on the Federal Reserve Bank of New York and mailed on each Interest Payment Date to owners of record of Stop Notes as of 10:00 a.m. , New York City time, on such date. Owners of Stop Notes tendered for repurchase will receive from the Bank a check drawn on the Federal Reserve Bank of New York for principal and accrued interest against tender of their Stop Notes. Such owners of record will be deemed to be owners as of 10:00 a.m. , New York City Time, on the Option Tender Date with respect to which their Stop Notes have been tendered- and will be entitled to receive interest accrued to, but not including, such. Option Tender Date. Acceleration of Stop Notes If the County should fail to pay interest on any Stop Note on any applicable Interest Payment Date and such failure should continue for a period of five business days, all Stop Notes will become due and payable ten business days after such grace period. The County in such case would 'be required to give notice by mail to each registered owner of Stop Notes specifying the accelerated maturity date of The Stop Notes. If on the accelerated maturity date the County deposits with the paying agent a sum sufficient to pay the principal of the Stop Notes and interest accrued thereon to such date, no interest will accrue after such date. Transfer Any Stop Note may be transferred on the registration books to be kept by the Paying Agent by the registered owner in person or by his duly authorized attorney upon surrender of such Stop Note for cancellation, accompanied by a duly executed written instrument of transfer in form approved by the Paying Agent. No change will be made for such a transfer, but the owner will be required to pay any tax or other governmental charge imposed with respect to such transfer. Transfer is not permitted with respect to any Stop Note for which a notice demanding repurchase has been given. 02610 - 4 Security for the Stop Notes The principal amount of the Stop Notes, together with the interest thereon, shall be payable from taxes, income, revenue, cash receipts and other moneys which are received by the County for the General Fund of the County during or attributable to Fiscal Year 1985-86. As security for the payment of the principal of and interest on the Stop Notes, the County has pledged the first Forty Million Dollars ($40,000,000) of the first installment of property taxes (to be received by the County during December 1985, and attributable to the County on the secured roll which becomes due and payable on November 1 , 1985 and delinquent on December 10, 1985) which is transferred to the General Fund of the County in the Accounting Period ending January 10, 1986; and the first Thirty Million Dollars ($30,000,000) , together with an amount sufficient (net of earnings to the date of such deposit on moneys in the Repayment Fund) (i ) to satisfy and make up any deficiency in the amount required to be deposited in the Repayment Fund during any prior Accounting Period and (ii ) to pay the interest on the Stop Notes accruing and unpaid after the date of such deposit date to maturity at an assumed interest rate of the lesser of 12% per annum or the maximum legal rate of interest (to the extent the actual interest rate cannot be determined) , of the second installment of property taxes (to be received by the County during April 1986, and attributable to the County on the secured roll which becomes due and payable on February 1 , 1986 and delinquent on April 10, 1986) which is transferred to the General Fund of the County in the Accounting Period ending on May 13,E1986. In the event that by the next-to-last business day of any such Accounting Period there are insufficient secured property taxes so transferred to permit the deposit into the Repayment Fund to be maintained by the fiscal agent of the full amount thereof to be deposited from said secured property taxes in such Accounting Period, then the amount of any deficiency shall be satisfied and made up on such date from any other moneys of the County lawfully available for the payment of the principal of the Stop Notes and the interest thereon. In the event that on such date the amount of other moneys of the County lawfully available for said. payment is insufficient to fully satisfy and make up any deficiency in the deposit into the Repayment Fund required hereunder, then such deficiency shall be satisfied and made up from the first other moneys of the County lawfully available for said payment when the same are received by the County. The moneys required to be deposited in the Repayment Fund are hereinafter called the " Pledged Revenues. The principal of the Stop Notes and the interest thereon shall constitute a first lien and charge against and shall be payable from the first moneys received by the County from the Pledged Revenues, and, to the extent not so paid, shall be paid from any other moneys of the County lawfully available therefor (all as provided in Sections 53856 and 53857 of the Government Code) . In furtherance of its pledge, the 'County has appointed First Interstate Bank of California as Fiscal Agent. The Resolution requires the Pledged Revenues to be transferred to the Fiscal Agent to be held in the Repayment Fund until July 30, 1986, at which time these funds will be used to repay the Stop Notes. The County is also required by the Resolution to provide to the Paying Agent sufficient funds to pay interest on the Stop Notes when due prior to maturity. 02610 - 5 - AVAILABLE SOURCES OF PAYMENT The Stop Notes, in accordance with California law, are general obligations of the County, but are payable only out of the taxes, income, revenue, cash receipts and other moneys of the County attributable to the fiscal year 1985-86 and legally available for payment thereof. A 1978 change 'in the Constitution of the State of California substantially limited the County' s ability to levy ad valorem taxes._. See "CONSTITUTIONAL LIMITATIONS ON TAXES AND APPROPRIATIONS." Additionally, California counties, unlike cities, are not permitted by State law to impose fees to raise general revenue, but only to recover costs of regulation or provision of services. The County may, under existing law, issue securities, such as the Stop Notes, only if the principal thereof and interest thereon will not exceed 85 percent of the estimated uncollected moneys available for the payment of such securities. The estimated amount needed to repay the Stop Notes and the interest thereon is approximately $76.7 million. The County estimates that the moneys available for payment of the Stop Notes will be in excess of $196 million .as indicated in the following table. ESTIMATED UNRESTRICTED REVENUE AVAILABLE FOR PAYMENT OF 1985-86 SHORT TERM OPTIONAL PUT TAX AND REVENUE ANTICIPATION NOTES (In Thousands) Source Amount Estimated-Unrestricted available fund balance at June 30, 1985. . $ 13,780 Property taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88,513 Taxes other than current property: Salestax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,125 Other taxes" ) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,060 Licenses, permits and franchises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,537 Fines, forfeitures and penalties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,888 Use of money and property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 ,340 Aid from other governmental agencies: Federal revenue sharing . . . . . . . . . . . . . . . . . . . . . . . '. . . . . . . . . . . . . . . 2,469 State reimbursed homeowner exemptions 3, 168 Motor vehicle in-lieu tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,930 Charges for current services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,301 Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $196, 111 (1 ) . Includes delinquent property taxes and County' s portion of certain shared State taxes. LEGAL OPINION The opinion of Orrick, Herrington & Sutcliffe, San Francisco, California ("Bond Counsel ") approving the validity of the Stop Notes and stating that, in the opinion of Bond Counsel , under existing statutes, regulations, rulings and court decisions interest on the Stop Notes is exempt from present federal income taxes and from present State of California personal income taxes will be provided free of charge to the purchaser at the time of the original delivery of the Stop Notes. A copy of such opinion will be printed on each Stop Note. 026, 0 - 6 - t The statements of law and legal conclusions set forth in this Official ,Statement under the headings "THE STOP NOTES," "LEGAL OPINION" and "LEGALITY tFOR INVESTMENT IN CALIFORNIA" have been reviewed by Bond Counsel . Bond Counsel ' s employment is limited to a review of the legal proceedings required for the authorization of the Stop Notes and to rendering the opinion set forth above. Such opinion will not consider or extend to any documents, agreements, representations, offering circulars or other materials of any kind concerning the Stop Notes not mentioned in this .paragraph. Certain legal matters will be passed upon for the County by the County Counsel and for the Underwriter by Jones, Day, Reavis & Pogue, Los Angeles, California. LEGALITY FOR INVESTMENT IN CALIFORNIA Under provisions of the Financial Code of the State of California, the Stop Notes are legal investments for commercial banks in the State to the extent that the Stop Notes, in the informed opinion of the bank, are prudent for the investment of funds of its depositors and under provisions of the Government Code of the State of California, are eligible to secure deposits of public moneys in the State. RATINGS The County has received a rating of from Moody' s Investors Service, Inc. and a rating of from Standard & Poor' s Corporation on the Stop Notes. Certain information was supplied by the County to the rating agencies to be considered in evaluating the Stop Notes. The ratings issued reflect - only the views of the rating agencies, and any explanation of the significance of such ratings should be obtained from the rating agencies. There is no assurance that any rating will be obtained or will be retained for any given period of time or that the same will not be revised downward or withdrawn entirely by the rating agencies if in their judgment, circumstances so warrant. The County undertakes no responsibility either to bring to the attention of the owners of Stop Notes any downward revision or withdrawal of any rating obtained or to oppose any such revision or withdrawal . Any such downward revision or withdrawal or the ratings obtained may have an adverse effect on the market price of the Stop Notes. LITIGATION No litigation is pending or threatened concerning the validity of the Stop Notes, and a certificate of the County Counsel to that effect will be furnished to the purchaser at the time of the original delivery of the Stop Notes. The County is not aware of any litigation pending or threatened questioning the political existence of the County or contesting the County' s ability to levy any collect ad_ valorem taxes or contesting the County' s ability to issue and retire the Stop Notes. There are a number of lawsuits and claims pending against the County. The aggregate amount of the uninsured liabilities of the County and the timing of any anticipated payments of judgments which may result from suits and claims will not, in the opinion of the County Counsel and the County Auditor—Controller, materially affect the County' s finances or impair its ability to repay the Stop Notes. 02610 - 7 - UNDERWRITING The Stop Notes are being purchased for offering by BankAmerica Capital Markets Group (Bank of America NT&SA) , the "Underwriter." The Underwriter has agreed to purchase the Stop Notes at par less a discount of $ as compensation for its underwriting services and to cover expenses of issuance, delivery and payment of the Stop Notes. The Remarketing Agreement provides that the Underwriter will purchase. all of the Stop Notes if any are purchased. The obligation to make such purchase is subject to certain terms and conditions set forth in the Remarketing Agreement. The Underwriting may offer and sell the Stop Notes to dealers and others at a price different than that stated on the Cover Page hereof. The price may be changed from time to time by the Underwriter. ADDITIONAL INFORMATION The .purpose of this Official Statement is to supply information to prospective buyers of the Stop Notes. Quotations from and summaries and ! explanations of the Stop Notes, the Resolution and of statutes and documents contained herein do not purport to be complete, and reference is made to said documents and statutes for full and complete statement of their provisions. BankAmerica Capital Markets Group is acting as Underwriter of the Stop Notes and regularly receives a variety of County reports. These reports include audits and budgets as well as certain monthly activity reports such as the status of the fiscal year 1985-86 Stop Note Repayment Account held by Bank of America NT&SA as Fiscal Agent. Any holder of the Stop Notes may obtain copies of such reports, as available, from the County. All data contained herein have been taken or constructed from County records and other sources. Appropriate County officials, acting in their official capacity, have reviewed this Official Statement and have determined that as of the date hereof the information contained herein is, to the best of their knowledge and belief, true and correct in all material respects and does not contain an untrue statement of a material fact or omit to state a material fact necessary in order to make the statements made, in light of the circumstances under which they were made, not misleading. An appropriate County official w-i=ll execute a certificate to this effect upon delivery of the Stop Notes. This Official Statement and its distribution have been duly authorized and approved by the Contra Costa County Board of Supervisors. FUNDING BY THE STATE OF CALIFORNIA Approximately 31 .7% of the County's fiscal year 1985-86 Proposed Budget consists of payments from the State of California. The State' s financial situation has improved considerably since fiscal year 1982-83 when the State exhausted its sources of internal borrowings and was forced to issue revenue anticipation warrants to meet its cash needs. As of April 1985 the State Department of Finance was projecting a 3% growth in real GNP for 1985, with California expected to out-perform the nation both this year and next in terms of income and employment gains. 0261 - 8 The 1985-86 Governor' s Budget as introduced January 10, 1985, proposed General and Special Fund expenditures of $33.1 billion, an 8.5 percent `increase over the 1984-85 fiscal year. The General Fund expenditures were estimated to be $27.9 billion or 84 percent of the total . The remaining $5.1 billion of expenditures were from special funds and represented 16 .percent of the total . The Budget estimated total revenues and transfers of $32.9 billion and included an appropriation of $1 ,040.1 million as a General Fund Reserve. The fiscal condition of the State is expected to remain strong in 1985-86. Borrowing in this f1scal year should be limited to the normal cash flow needs of the State and could be fully meet from the internal sources. CONSTITUTIONAL LIMITATIONS ON TAXES AND APPROPRIATIONS Article XIIIA of the California Constitution limits the taxing powers of California public agencies. Article XIIIA provides that the maximum ad valorem tax on real property cannot exceed one percent of the full cash value of the property, and effectively prohibits the levying of any other ad valorem property tax, even with voter approval . Full cash value is defined as the County Assessor' s valuation of real property as shown on the 1975-76 tax bill under "full cash value" or, thereafter, the appraisal value of real property when purchased, newly constructed, or a change in ownership has occurred after the 1975 assessment. The full cash value is subject to annual adjustment to reflect inflation at a rate not to exceed two percent or a reduction in the consumer price index or comparable local data, or declining property value caused by damage, destruction or other factors. _ Article XIIIB of the California Constitution limits the amount of appropriations of- the state and of local governments for "proceeds of taxes" to the amount of appropriations of the entity for the prior year, adjusted for changes in the cost of living, population and services provided. Both Article XIIIA and Article XIIIB were adopted by the people of the State of California pursuant to the state' s initiative constitutional amendment process. Initiatives adopted in the future might limit the ability of the County to maintain or increase revenues. AD VALOREM PROPERTY TAXES Taxes are levied for each fiscal year on taxable real and personal property which is situated in the County as of .the preceding March 1 . For assessment and collection purposes, property is classified either as "secured" or "unsecured," and is listed accordingly on separate parts of the assessment roll . The "secured roll " is that part of the assessment roll containing State assessed property and property secured by a lien on real property which is sufficient, in the opinion of the Asse1ssor, to secure payment of the taxes. Other property is assessed on the "unsecured roll ." Property taxes on the secured roll are due in two installments, on November 1 and February 1 of the fiscal year. If unpaid, such taxes become delinquent on December 10 and April 10, respectively, and a ten percent penalty attaches to any delinquent payment. In addition, property on the secured roll with respect to which taxes are delinquent is declared to be 02610 _ 9 _ r defaulted on or about June 30 of the fiscal year. Such property may thereafter be redeemed by payment of the delinquent taxes and the delinquency penalty, plus a redemption penalty of one and one-half percent per month to the time of redemption. If taxes are unpaid for a period of five years or more, the tax-defaulted property is declared to be subject to the Tax Collector' s power of sale and may be subsequently sold within two years by the County Tax Collector. Property taxes on the unsecured roll are due as of the March 1 lien date and become delinquent, if unpaid, on August 31 . A ten percent penalty attaches to delinquent taxes on property on the unsecured roll , and an additional penalty of one and one-half percent per month begins to accrue beginning November 1 of the fiscal year. The taxing authority has four ways of collecting unsecured personal property taxes: (1 ) a civil action against the taxpayer; (2) filing a certificate in the office of the County Clerk specifying certain facts in order to obtain a judgment lien on certain property of the taxpayer; (3) filing a certificate of delinquency for recordation in the County Recorder' s office, in order to obtain a lien on certain property of the taxpayer; and (4) seizure and sale of personal property, improvements or possessory interest, belonging or assessed to the assessee. Contra Costa County and its political subdivisions operate under the provisions of Sections 4701-4717 of the California Revenue and Taxation Code. Pursuant to those sections, the accounts of all political subdivisions which levy taxes on the County tax rolls are credited with 100 percent of their respective tax levies regardless of actual payments and delinquencies. The . County treasury' s cash position (from taxes) is protected by a special fund . (Tax Losses Reserve Fund) into which all countywide delinquent penalties are deposited. The County has used this method since fiscal year 1950-51 . A recent history of Contra Costa County tax levies, delinquencies and the Tax Losses Reserve Fund cash balances as of June 30 is shown below. During fiscal year 1980-81 the County reduced the Tax Losses Reserve Fund from $10.2 million to $7.2 million and credited the difference to the County General Fund as provided by Section 4703 of the Revenue and Taxation Code. . Section 4703 allows any county to draw down the Tax Losses Reserve Fund to a balance equal to three percent of the total of all taxes and assessments levied on the secured roll for that year if the secured tax delinquency has been three percent or less for the preceding three consecutive years. After utilizing this procedure, if the County incurs a rate of secured tax delinquency that exceeds three percent of the total of all taxes and assessments levied on the secured roll , the Tax Losses Reserve Fund must accumulate to a balance equal to five percent of the total of all taxes and assessments levied on the secured roll for that fiscal year and remain at that level until the County has three consecutive years in which the secured tax delinquency rate is under three percent. Total delinquent secured property tax charges in each year since fiscal year 1950-51 have been below four percent of that year' s total secured property tax charges. 02610 - 10 - COUNTY OF CONTRA COSTA SUMMARY OF FULL CASH VALUE AND AD VALOREM PROPERTY TAXATION } FISCAL YEARS 1980-81 THROUGH 1985-86 Secured Current Percentage Tax Losses. FullProperty Levy Current Levy Reserve Fund Fiscal Cash Tax Delinquent Delinquent Balance Year Value Levies June 30 June 30 June 30 1980-81 . . . 18,892,593,032 237,630,961 7,195,889 3.02 7,213,929 1981-82. . . 21 ,648,197,423 264,897,190 10,557,491 3.99 8,700,583 1982-83. . . 24,453,455,979 294,757,661 10,281 ,578 3.49 11 ,158,615 1983-84. . . 26,719,685,704 319,869,578 9,216,399 2.88 14,330,673 1984-85. . . 29,373,354,335 350,500,000" ' 10,164,500" ' 2.90" ' 16,500,000( l ) 1985-86. . . 32,300,000,000" ) (1 ) Estimated by County. Source: County Auditor-Controller. r 0261 E Largest Taxpayers The ten largest taxpayers in the County, as shown on the fiscal year 1984-85 secured tax roll , and the approximate amounts of their property tax payments for all taxing jurisdictions within the County, are shown below. These ten largest taxpayers paid a total of $62,581 ,954 in taxes, or about 17.9 percent of the County' s 1984-85 secured tax collection. LOUNTY OF CONTRA COSTA LARGEST TAXPAYERS Total Taxes Company Paid 1984-85 Chevron USA (Standard Oil Company of California) . . . $22,295,869 Pacific Gas & Electric Company . . . . . . . . . . . . . . . . . . . . . 13,400,870 Shell Oil Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,373,322 Pacific Bell . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,224,481 Tosco Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,446,745 Union Oil Company of California . . . . . . . . . . . . . . . . . . . . 2,768,214 Dow Chemical Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,122,461 U.S. Steel Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 ,840,858 C&H Sugar Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 ,098,209 Louisiana Pacific . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 ,010,925 Source: Contra Costa County Treasurer Redevelopment Agencies The California Community Redevelopment Law authorizes the redevelopment agency of any. city to issue bonds payable from the allocation of tax revenues resulting from increases in full cash values of properties within designated project areas. In effect, local taxinauthorities other than the redevelopment agency realize tax revenzes only on the "frozen" tax base. The following table shows redevelopment agency full cash value increments and tax allocations for cities within Contra Costa County. 02610 — 12 — COMMUNITY REDEVELOPMENT AGENCY PROJECTS OF CITIES IN THE COUNTY OF CONTRA COSTA FULL CASH VALUE INCREMENTS AND TAX ALLOCATIONS FISCAL YEARS 1980-81 THROUGH 1984-85 Fiscal Base Year Full Cash Value Total Tax Year Value Increment" ) Allocations` ) 1980-81 . . . . . . . . . $755,431 ,368 $ 669,066,188 $ 8,230,647 1981-82 .. . . . . . . . . 783,522,580 937,500,047 11 ,202,319 1982-83 816,666,491 1 ,294,850,196 15,308,390 1983-84 . . . . . . . . . 834,968,224 1 ,382,950,214 15,949,939 1984-85 860,524,411 1 ,406,614,952 16,213,428 Full cash values for all redevelopment projects above the "frozen" base year valuations. These data represent growth in full cash values generating tax revenues for use by the community redevelopment agencies. `2 ' Actual tax revenues collected by the County and subsequently paid to the community redevelopment agencies. Source: Contra Costa County Auditor CURRENT COUNTY FINANCIAL STATUS Hospital Finances The County of Contra Costa has operated a County Hospital and a Health Department for over 50 years. In 1979 the County Hospital and the County Health Department were combined into one agency, the Contra Costa County Health Services Department. The Health Services Department is composed of several divisions including Public Health, Environmental Health, California Childrens Services, Alcohol /Drug Abuse/Mental Health, the County Hospital and clinics , and a Health Maintenance Organization. The County Hospital (including clinics) and the HMO are accounted for in two separate enterprise funds while the other divisions are accounted for in the County General Fund. The Health Services Department is headed by a Director who reports to the County Board of Supervisors. The Health Services Department has several outpatient clinics in the County and a 213-bed hospital in Martinez. The Health Services clinics operate on an outpatient basis five days a week. The Hospital operates 24 hours every day providing general hospital care, mental health in-patient care and emergency services. Approximately' 78% of hospital and clinic patients are covered by various governmental aid programs. The overall budget of the Health Services Department for fiscal year 1984-85 is $107,042,447 as of May 28, 1985. Included in that figure is $50,809,100 for the Hospital Enterprise Fund and $20,737,108 for the HMO Enterprise Fund. 02610 - 13 - The combined subsidy from the County General Fund for those two enterprise funds is budgeted at $13,917,884 for fiscal year 1984-85. An additional subsidy of $2,036,000 is budgeted for Mental Health in the General Fund. Major changes were made in the management structure of the Health Department and its division commencing in 1979. The objectives of these changes were to improve the health care delivery system in the County and provide improved controls on the rapidly increasing health care costs. Some of the major changes, or proposed changes, involved expanding the HMO to attract enrollees from the prA vate sector, pioneering in the development of sophisticated computer systems to assist in patient care, and having the County assume total responsibility (and risk) for the entire Medi-Cal (Medicaid) population of the County. Implementation or development of these plans required large up-front investments, particularly in management staff, ! which it was hoped would be recovered by future controls of health care i delivery costs and by a broadened base of HMO members and County Health Services users. i I In September 1983, following final closing of the County' s books for fiscal year 1982-83, the County Auditor-Controller reported that the Health Services Enterprise Funds completed the 1982-83 fiscal year with an approximately $3.2 million deficit. The deficit resulted primarily from errors and duplications made by Health Services Department staff in estimating revenues from two revenue sources. After this discovery and a thorough analysis of the first few months of actual revenues and expenditures for fiscal year 1983-84, it also appeared that budget expectations for 1983-84 would not be realized. It was apparent that corrective actions would be necessary to avoid a shortfall of $9 or $12 million for the two years - combined. A number of studies, including a review by Arthur Young & Company, were conducted to determine the reasons for the problems. Their conclusions indicated, in part, that (1 ) revenues were below anticipated levels because of new Federal and State regulations and administrative actions to reduce Federal and State Medicare and Medi-Cal costs along with an industry-wide decline in in-patient hospital utilization; (2) expenditure reductions budgeted by Health Services Department were not supported by realistic action plans; (3) Health Services budgeting, cost accounting and patient accounting systems were too obsolete to provide timely, reliable information; and (4) Health Services management had concentrated mostly on programs rather than on a balance between programs and fiscal perseverance. December 16, 1983, the Director of the Health Services Department resigned and Dr. William Walker was named Acting Health Services Director. Dr. Walker was formerly the Medical Director of the HMO. Effective February 1 , 1984 the County hired NU MED Services, Inc. of Southern California (NU MED) under a two-year contract to manage the Hospital and the financial affairs of the Department and to assist in making needed operational changes within the system. 1 In early February 1984, the County Administrator resigned. The Board of Supervisors appointed Charles Dixon as interim County Administrator pending hiring a permanent replacement. Mr. Dixon was the retired County Administrative Officer of San Joaquin County, California. On May 22, 1984, the Board of Supervisors unanimously appointed Phillip J. Batchelor as County Administrator, effective June 11 , 1984. Mr Batchelor had been Assistant County Executive for Santa Clara County, California since 1981 and had 17 years experience in county management, budgeting and finances. 02510 - 14 - c In October 1984, after an intensive recruitment campaign, the County , se-lected a new Health Services Director, Mark Finucane. Mr. Finucane has served as manager of major health institutions in Northern California, his most recent position being that of Chief Deputy for the City and County of San Francisco Health Services Department. In addition to these management changes, the Board of Supervisors took many actions to balance the fiscal year 1983-84 budget and to effect long-range solutions: o Several management positions were eliminated in the Health Services Department. o A flexible nursing staffing arrangement was put in place to staff on an "as needed" basis , with a reduced core of permanent full-time staff. o In December 1983, a countywide freeze on hiring, purchases, and capital outlay was put in place. These actions resulted in budgetary savings in excess of $8 million. o The County refinanced two buildings formerly under lease-purchase contracts from the County Retirement system. The County realized slightly in excess of $10 million from this transaction. o The County granted an option to National Medical Enterprise (NME) to purchase 86 of the County' s surplus State-issued bed licenses for $1 .8 million. This option has not yet been exercised, however, because NME still needs to receive legal clearance to build a new hospital in the- southern part of the County. o Through several appropriation adjustments, the County General Fund subsidy to the Hospital Enterprise Fund for fiscal year 1983-84 was increased by $11 .2 million for a total subsidy of $23.7 million that fiscal year. This enabled the Enterprise Fund to end the 1983-84 fiscal year in the "black." As a result of the above items the County General Fund ended fiscal year 1983-84 with an unreserved, undesignated fund balance of $9.1 million, up from $84,000 at the end of fiscal year 1982-83. The County estimates that the General Fund unreserved, undesignated balance at June 30, 1985 will be approximately $11 .8 million. -In August 1984, NU MED implemented a major reorganization of the patient eligibility screening and billing processes, installing the AMI-PHS computerized patient billing and receivables systems. This being a major systems change, some conversion problems and billing delays were encountered. These problems have, for the most part, been resolved, and as of May 15, 1985 most billings were current, and both cAsh flow and identification of patients to programs has improved significantly. In December 1984, Mr. Finucane reorganized the department to strengthen administration and fiscal management. A new Budget Director position was created and filled with an individual who has over 10 years of high-level fiscal administrative experience in major health institutions in Northern California. As of May 10, 1985 it appears that the Health Services Department will finish the year in the black, the County subsidy being approximately $16 02610 15 - L million, as compared with the $23 million subsidy required for the previous fiscal year. (These figures include the Alcohol/Drug Abuse/Mental Health Division. )* In fiscal year 1985-86 the County expects continued improvements in the overall operation of the Health Services Department. The County Budget Officer has established a target of the same level of General fund subsidy for fiscal year 1985-86 as in 1984-85: This target further expands on the concept of cost containment and revenue enhancement. The target recommendation recognizes that some program -realignments, including the reduction or elimination of some non-mandated services, may be necessary to fund the budget at approximately the same level as fiscal year 1984-85. The approach will further strengthen the overall financial position of the department and the County as a whole. The County recognizes that decisions need to be made regarding the long range future of the County Health Services, as the hospital facility is over 40 years old. Studies are underway to determine if the hospital should be renovated, a new hospital built elsewhere, or the hospital closed and indigent care contracted out to other providers. The County' s contract with NU MED i provides that the hospital should achieve "stand alone" capability by the contract' s expiration date, January 31 , 1986. Plans are being developed to create high level accounting, fiscal , and management positions in order accomplish the "stand alone" capability. County officials have concluded that the Health Services Department is under control . The new management team has made or is making necessary operational changes , is establishing necessary controls, and is addressing the long range future. The County has re-established the necessary reserves and review procedures to recognize and deal with future County problems in this area. 1 * It should be noted that the County General Fund subsidy to the Enterprise Funds is financed in part by funds received from the State for health care purposes in connection with the formulas contained in Assembly Bill 8 of 1979. These AB 8 subsidies were $10.6 million in fiscal year 1983-84, and $11 .1 million in fiscal year 1984-85. 02610 - 16 - r COUNTY FINANCIAL INFORMATION The County is required by State law to adopt a final budget by the end of August each year. The fiscal year 1985-86 Proposed Budget was adopted by the County on June 11 , 1985 and is based on an assumed 9 percent increase in property tax revenue, and an available fund balance of $10.9 million in the County' s General Fund on July 1 , 1985. The County is expected to adopt its final budget on or about August 31 , 1985. During the hearings which will be held with respect to the final budget, all appropriations and revenues are subject to review. Since the budget must be in balance, any shortfall in revenues requires a reduction in appropriations. During the period between the approved Proposed and Final Budget, the County' s operation is governed by the Proposed Budget. No increase in the aggregate appropriations can be made after August 31 , 1985 unless the County has received certification of additional revenue from the sources of such revenue. In order to ensure that the budget remains in balance throughout the fiscal year, periodic reviews are made covering actual receipts and expenditures. In the event of any shortfall in projected revenue, immediate steps are taken to reduce appropriations. Appropriation reductions would be achieved through a combination of hiring freezes, employee layoffs, and freezes on..the purchase of equipment, services and supplies. California counties are not permitted by State law to impose fees to raise general revenue, but only to recover the costs of regulation or provision of services. r 02610 - 17 - COUNTY OF CONTRA COSTA FINAL BUDGET FOR FISCAL YEAR 1984-85 AND PROPOSED BUDGET FOR FISCAL YEAR 1985-86 (In Thousands) Proposed Final 1984-85 1985-86 Budget" ) Budget" ) C 2 ' REQUIREMENTS: General government. . . . . . . . . . . . . . . . . . . . $ 27,247 $ 44,155`3 ' Public protection. . . . . . . . . . . . . . . . . . . . . 87,722 91 ,076 Health and sanitation. . . . . . . . . . . . . . . . . 47,00214 ' 49,587 Public assistance. . . . . . . . . . . . . . . . . . . . . 117,953 127,153 Education. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,300 6,182 Public ways and facilities. . . . . . . . . . . . 5,104 5,770 Recreation and culture. . . . . . . . . . . . . . . . 147 139 Reserves and debt service . . . . . . . . . . . . 15,036 15,011 Total Requirements. . . . . . . . . . . $306,511 $339,075 AVAILABLE FUNDS: Property taxes . . . . . . . . . . . . . . . . . . . . . . . . $ 79,779 $ 88,513 . Funds balance available. . . . . . . . . . . . . . . 8,360 13,780 . Taxes other than current property. . . . . 9,115 10,185 Licenses, permits and franchises. . . . . . 4,668 4,537 Fines, forfeitures and penalties. . . . . . 3,915 3,888 Use of money and property. . . . . . . . . . . . . 10,028 11 ,340 Aid from other governmental agencies. . 150,23814 ' 165,769 Charges for current services. . . . . . . . . . 39,65814' 40,301 Other revenue. . . . . . . . . . . . . . . . . . . . . . . . . 750 760 Total Available Funds. . . . . . . . $306,511 $339,073 " ' Includes General Fund, Federal revenue sharing and Library Fund. C2 ' Proposed Budget adopted June 11 , 1985. `3 ' The General government requirements line includes a $12.7 million provision for salary increases, which, if granted, will be reallocated to all applicable functions. `4' Includes mental health costs formerly included in the County Hospital Enterprise Fund. Source: Contra Costa County Auditor d 02610 - 18 - F Accounting Policies, Reports and Audits The County' s accounting policies conform to principles and reporting standards set forth by the State Controller in "Accounting Standards and Procedures for Counties--State of California." The County's basis of accounting is a modified accrual system in which revenues are recorded as cash is received, except for property taxes which are recorded when levied and for certain year—end - accruals. Expenditures are recorded when paid, but all unpaid expenditures must be accrued by year-end. All of the financial statements contained in this Official Statement, other than the General Fund Cash Flow Analyses, have been prepared on this modified accrual basis. The County Treasurer also holds certain, funds not under the control of the Board of Supervisors, such as those of school districts, which are accounted for on a cash basis. The Government Code requires every county to prepare an annual report. The Auditor—Controller prepares the Comprehensive Annual Financial Report for the County of Contra Costa. This annual report covers financial operations of the County, county districts and service areas, local autonomous districts and of various trust transactions of the County Treasury. Under Federal Revenue Sharing Audit Regulations, independent audits are required of all operating funds under control of the Board of Supervisors. Contra Costa County has had independent audits for more than 20 years. The County hospitals were accounted for on an Enterprise Fund basis for the first time for fiscal 1978-79. Additionally, the County Grand Jury may also conduct management audits of certain offices of the County. Funds accounted for by Contra Costa County are categorized as follows: General County Funds The general County funds consist of the General Fund and other operating funds. The General Fund is used to account for the revenues and expenditures of , the County which are not accounted for by other funds. The other operating funds are used to account for the proceeds from specific revenue sources (other than special assessments) or to account for the financing of specific activities as required by law or administrative regulations. Special District Funds Under Control of Board of Supervisors Special district funds under the control of the Board of Supervisors are used to account for the transactions of fire protection districts, flood control and storm drainage districts , sanitation districts and county service areas. Special District Funds Under Control of Local Boards and School District Funds These funds are used to account for cash received and disbursed and cash and investments held by the County for these districts. These districts maintain their own accounting records supporting their separate financial statements which are subject to separate audit under State statutes. r Trust and Agency Funds Trust and agency funds are used to account for money and other assets received and held in the capacity of trustee, custodian or agent for individuals and governmental agencies. 02610 - 19 - M47r I 'COY I I M n N 01 r 0 11 N r I l d M - tffnN n 01 01 01 7 f�10O Ind d C4 C 10 r d M 1Q O N O1 10nn � If1N - 01 r co alMrr N M r ro d oc a a r 40 v► ro d 00 Lr I O ac 0101/001 CIO OdMM N N 0110d00 v Od1�0 C2N 01r4L .- ll r M M O 10 0 Kf M 10 al ro C v th w+eo o co co a en 7 41 m C r� M N co 01 o an M Ln In o o a o o ro ro ' ro cc daoN01 odaoo d 10 u t r L U iJ M u 01 c;11; da010d d d roz a0 00 • (A1 d Ol O v a) N N C7 d► M b? 4J C L c 4. 7 - 41 O n%am I 1 nn I I d n 7 dal L N NM1� I 1 W Cl 1 1 1O d Z L ro d a0 d 0 0 01 01 n H+.+ al ao cu _ O u >, O1 7 01 dd CD Ln 01 den qlg. 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Uy— ArdL L U 00 Z = N -LL- L d 0 C d r r U r L d O Q 1Z Z LA C N 044- OIL Z d C= MM 3.0 U a+ NM V1 d C Z U O a.+ N M W d d d L d W L d 7 d 3 O 7 d C d L C u d M L N 00 o > X UC dAL IL L(,',0-Sa W CLccu d f0 0 >0 7 /0 01 W W A•'-•� 0•�LLI M 7 X CL L dz - O N S 00 O:HJLL000a Wu WOHCL.Ccw v N O I.ntrafund Borrowing and Cash Flow ; The current offering represents the seventh public sale of short-term notes by Contra Costa County. During the years before such sales, the County utilized intrafund borrowing to cover the County' s General Fund cash shortfalls. County General Fund expenditures tend to occur in relatively level amounts throughout the fiscal year. Conversely, receipts have followed an uneven pattern primarily as a result of secured property tax installment payment dates in December and April and as a result of delays and uneven payments from other government agencies, the two largest sources of County revenues. The State Constitution allows interfund borrowing, from County-held funds of other agencies, by counties until the last Monday in April of each fiscal year in amounts that do not exceed 85 percent of taxes accrued. The Auditor-Controller has prepared the accompanying General Fund Cash Flow Analysis -for the fiscal year 1984-85 and a projected cash flow for fiscal year 1985-86. To the extent necessary the County intends to continue to use intrafund borrowing to cover peak cash flow needs. Under the County' s established accounting procedures, the first accounting period commences on July 1 and ends on or about August 10. Each of subsequent 10 periods covers approximately 30 days. Accordingly, each of the first 11 months shown in the following table reflects an actual closing cash balance as of approximately the 11th day of the subsequent month; the final period is _ from June 11 to June 30 only. 0zsio — 22 — LU i— . r W Z Z J W Z 'O !d If vl) IT ? 1 1 J? r% t N:' .0 Ur d ^J z 'i _ _ ! 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XCmZZ W En W X W I - - -- - - 26 - Employees A summary of County employee levels follows: COUNTY OF CONTRA COSTA COUNTY EMPLOYEES As of As of June 30 Employees June 30 Employees 1977. . . . . . . . . . . . . . . 6,041 1981 . . . . . . . . . . . . . . 6,052 1978. . . . . . . . . . . . . . . 6,351 1982. . . . . . . . . . . . . . 6,063 1979. . . . . . . . . . . . . . . 5,933 1983. . . . . . . . . . . . . . 5,915 1980. . . . . . . . . . . . . . 5,960 1984. . . . . . . . . . . . . . 5,743 Excludes temporary and seasonal employees, which on June 30, 1984 totaled- 436. Source: Contra Costa County Auditor County employees are represented by 26 bargaining units of 17 labor organizations, the principal ones being Local 1 of the County Employees Association and Clerical Employees Union which, combined, represent approximately 43 percent of all County employees in a variety of classifications. The County has had a successful and positive employee relations program,. including successful negotiations of cost effective agreements over the years. During August 1979, the Board of Supervisors approved salary adjustments for over 95 percent of employees, effective July 1 , 1979, which resulted in an average salary increase of 6.9 percent. Effective July 1 , 1980 County employees were granted second year adjustments averaging 7.9 percent which remained in effect through June 30, 1981 . New agreements in September and October 1981 , raised salaries for most County employees 10% effective July 1 , 1981 , with another raise of about 8% effective July 1 , 1982. An agreement was reached which provided for no major increase in employee wages or benefits in fiscal year 1983-84 and 5-8% average salary increases effective August, 1984 for fiscal year 1984-85. Unions representing County employees picketed on several occasions in 1984. The County is preparing to open negotiations for the next fiscal year (1985-86) for labor contracts covering nearly all of its 4,500 employees in organized bargaining units. Retirement Programs r The County has a retirement plan administered by the Employees' Retirement System of the County of Contra Costa which covers substantially all employees and to which contributions are made by both the County and the employees. The plan provides "basic" death, disability and service retirement benefits based on specified percentages of monthly final average salary and, in addition, provides annual cost-of-living adjustments after retirement. As of December 31 , 1984 there were 5,383 active general members and 1 ,015 active safety members (police and fire) including employees of certain other governmental agencies. Retired members totaled 2,848. 02610 - 27 - Employer contributions are based on percentages of salaries as determined by the actuary and adopted by the Board of Supervisors. The County' s policy is to fund expected "basic" benefits over the average working lifetime of present members, except that unfunded prior service cost arising from plan amendments, actuarial gains and losses, or other factors is funded-over 30 years. Beginning August 1 , 1980 the Retirement System implemented legislation whereby new general employees participate in a reduced program, paying roughly half the premium and receiving half the benefits at retirement. Existing general employees were permitted to transfer to the new program for future credit only. Pursuant to the County Employees' Retirement Law of 1937, actuarial valuations of the retirement system are required at least every three years. The Retirement System' s actuaries estimated the minimum contribution provision under generally accepted accounting principles for the fiscal year ended June 30, 1984 to be approximately $25,529,000. Contributions made by the County and by county employees for the year ended June 30, 1984 approximated $19,068,000 and $4,266,000, respectively. For the year ended December 31 , 1984 total contributions and earnings to the Retirement Fund were $60 million with payment to current retired employees of $22.7 million. The County's Retirement Fund is approximately 91 percent funded. Long Term Obligations General Obligation Debt The County has never defaulted on the payment of principal or interest on any of its indebtedness . As of July 1 , 1985, the County of Contra Costa has no direct general obligation bonded indebtedness, the last issue having been redeemed in fiscal year 1977-78. The County has no authorized and unissued debt. Lease Obligations Contra Costa County has made use of various lease arrangements with joint powers authorities, nonprofit corporations, and the County Employees' Retirement Association for the development of capital projects. The projects are then leased to the County for a period of 15-30 years. The last capital lease ends in 2004. As of July 1 , 1985, total base rentals payable as pledged security over the remaining life of these issues is estimated to be $57,'286,852. A summary of base rental payments and total future lease payments is shown below. r 02610 - 28 - r COUNTY OF CONTRA COSTA • SUMMARY OF LEASE RENTAL OBLIGATIONS Total Future Annual- Lease Payments Base as of July 1 , Rental 1985 Contra Costa County Employees Retirement Association . . $ 283,456 $ 917,115 Other Major Building Leases" ' . . . . . . . . . . .. . . . . . . . . . . . . 611 ,862 9,752,392 Contra Costa County Public Facilities Corporation . . . . . 468,662 6,092,606 Contra Costa County Public Facilities Corporation (Capital Project I) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 596,799 7,277,368 Contra Costa County Public Facilities Corporation (Capital Project II) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 315,356 2,213,563 Contra Costa County Public Facilities Corporation (Capital Project III) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 ,622,682 31 ,033,808 Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,898,817 $57,286,852 (1 ) Includes Contra Costa County Juvenile Facilities Corporation, but excludes equipment lease. The County has an option to purchase each of the properties under lease/ purchase agreements with the Employees' Retirement Association at any time during the term of each lease for the remaining amount of the capital lease obligation, subject in some cases to a premium ranging from 5 percent to 9.5. percent. In the event the County does not exercise its option to purchase a building, the Retirement Association has the option to purchase the County land on which the building is located at the fair market value at the time the lease terminates. The other major building leases also contain purchase options at the termination of the leases for nominal purchase prices, or provide for automatic vesting of title in the County. Overlapping Debt Contra Costa County has no direct general obligation bonds outstanding. However, the County does have lease revenue obligations. In addition, the County contains numerous municipalities, school districts and special purpose districts as well as the overlapping Bay Area Rapid Transit District and East Bay Municipal Utility District which have issued general obligation bonded indebtedness. A statement of overlapping debt is presented below. Some of the issues may be payable from self-supporting enterprises or revenue sources other than property taxation. r 02610 - 29 - r i c Y I CD Ono%D000000lnoan M In I O M N O N o 0 0 0 0 0 M N O N p y- n - 1:M O t 0�D O O M O O O O O O N N O /n Iri�O C 0 v - - - - - - - - - - - InAmoaoor-:L; P:4 M01 01 r Lr ere C 0 er=04mRrNInNOn Y0. O a In CD 3 001OrN Ioanr 00 of�N tpr r tn0N7o L 0 110 1' r n . - CD ;,.,C; raMT0lnn �O M Y Mln/nn C dr C ^ N 10 In r r N r.�r�- r In In b L .• . a M N n 01 A 1`o o M 611, dro M - OOY a u M In //1 O A 00 o n pis Mf 3 O a/o u cl aQ r A In 4.4 •r IV X C r d L. 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T A •" Y c ro r L f.7 C U w In L Y C W A 3 u Y Y A 110 to -m %- c o r C • CL A Y A Y Y Y N F=tY m 1 U d u T N to ro r C Y O C O 7 F a]�N C C u U t/1•r 61-1 I W N N Y r r C u N A C to L N OO N•rCCCr r ONOYla.O: ) OLu � -H OC bum U U C •d /� 0 _3 U r o QE L A L L O N N r M r A ro A a C A r L CJ V1 N {A L A V1 to W V1 C O L r r M N N O N C 0 N A N Cr AQa0 Nro r > YY 10 7> o U C N.r•r N.r 0R ►- D NO> iv 3 c cu a �, u N01 InYC A C N Hd•X O— O+OOY u 4 W NO LY AN C7 •• z uu A >� U •rr T3 ai.1 HOYL A3CdYL N OE O U 00 cczu CO L N r N I C N•r N•L U--U--U L V1 A Y N A N 4. ro u J m c to J ,�Z A C U > C :310 L c L Y Y uro faALm 1 0 YAT QQN Q Y u roxNoocw3m0m (i r L L Q cc L L•r YY L H J H U-- n w L au 3tn1 )>W m u O r 7 Ya.1 Y NTTNa•rcNlnO O NAAr L r a C c >1 IA C L Y Y L In C 7 L r-F- H L 4J AJ r .-. .•. :01 �D dao OOAAA Y•r•r Y O iv0 AJ Cln 1p O N UUmWNODUOSVIUOr OF F-W v.N. v vvv N O Self-Insurance Program The County is self-insured for claims relating to public liability (excluding the airport) , automobile accidents, and medical malpractice. It is the County' s policy to appropriate annually sufficient funds to cover the estimated liability of the County for self-insurance claims to be made during the upcoming fiscal year. Whenever a claim is made, the claim is evaluated and a portion of the appropriated funds are reserved to satisfy the County' s estimated liability for such claim Although the County believes that its past experience enables it to_evaluate reasonably its liability for self-insurance claims, no assurance can be made that the amount reserved for such purpose -will be adequate, nor can there be any assurance that the funds appropriated to satisfy claims arising during any fiscal year will be sufficient. THE COUNTY Contra Costa County was incorporated in 1850 as one of the original 27 counties of the State with the City of Martinez as the County Seat. It is one of the nine counties in the San Francisco-Oakland Bay. Area. The County covers about 733 square miles and extends from the northeastern shore of San Francisco Bay easterly about 20 miles to San Joaquin County. Contra Costa is bordered on the south and west.by Alameda County and on the north by Suisun and San Pablo Bays. The western and northern shorelines are highly industrialized while the interior sections are suburban/residential , commercial and light industrial . A large part of the interior of the County is served by the Bay Area Rapid Transit District (BART) which has encouraged expansion of residential and commercial development. Valuation of non-residential building permits increased from $158 million in 1980 to $445 million in 1984, while building permits for an additional 4,162 single family residential units and 2,255 multiple family residential units were issued during the same period. Major office projects currently under construction include the Chevron Park and Pacific Telesis office center in the Bishop Ranch project in San Ramon, and the Bank of America data processing and office complex in Concord' s downtown redevelopment area. County Government The County has a general law form of government. A five-member Board of Supervisors elected to four-year terms serves as the legislative body. Also elected are the Assessor, Auditor-Controller, Clerk-Recorder, District Attorney-Public Administrator, Sheriff-Coroner, and Treasurer-Tax Collector. A County Administrator Officer appointed by the Board of Supervisors runs the day-to-day business of the County. Industry and Employment Most of the heavy manufacturing is located along the north shore of Contra Costa County fronting on the Suisun and San Pablo Bays leading to San Francisco Bay and the Pacific Ocean. Major industries are petroleum refining, steel manufacture, prefabricated metals, chemical , electronic equipment, paper products and food processing. Descriptions of major industries and companies follow. 07610 - 31 - Petroleum products manufacturing formed the initial basis of industrial , development in the County. Currently four companies manufacture products from crude oil . The largest in terms of capacity is Chevron Corporation (Standard Oil Company of California)--Richmond Refinery which began operations in 1901 . The Chevron refinery, located on 3,000 acres, has a capacity of 365,000 barrels per day and manufactures a complete line of petroleum products. The bulk of the crude oil is from Alaska. Shipping facilities include the company's own wharf which is capable of handling four tankers at a time, making it the largest in the Bay area in terms of tonnage. Chevron operates a fleet of 53 tankers of which nine are for intrastate business. Petroleum_ products are also shipped by truck and by two railroad carriers. Standard Oil recently completed over $400 million of modernization improvements to its facilities at the Richmond Refinery. Chevron Corporation operates the Ortho Division of Chevron Chemical Company in Richmond, which manufactures pesticides, fertilizers and chemicals for agricultural and nonagricultural purposes. Chevron Research Company is also located in Richmond and is the only non-geological research arm of the company. Four new buildings in the research center were completed in 1982 at a cost of approximately $80 million. This facility is used by Chevron Research in its continuing program to improve the efficiency of conventional auto, aircraft and marine fuels. Chevron Accounting Division is located in Concord. It serves as the finance and computer facility for Chevron' s entire domestic operations. The Accounting Division is quartered in a new 400,000 square foot building which was completed in early 1982. The San Ramon facility will house some 5,000-6,000 employees involved in computer, marketing, consumer services and other functions when completed. _ Total employment for the Chevron Corporation in Contra Costa County is nearly 9,000. For a breakdown of employment by Division and locations please see the table following this section. Shell Oil Company began operating in Martinez in 1915. The Shell .Oil and Chemical Martinez Manufacturing Complex, located on 1 ,100 acres, is a combination oil refinery and industrial chemical manufacturing unit. It is one of three Shell facilities on the West Coast which supplies all Shell products to the Western states. The complex has the capacity to process 120,000 barrels of crude oil per day. About one-half the crude oil is transferred via the company' s pipeline from California oil fields while the other half is shipped from Alaska. Shell ' s docking facilities can handle two tankers and two barges simultaneously. Finished petroleum products are shipped via a company owned pipeline, Southern Pacific Railroad' s pipeline and railcars and trucks. Shell employees in Contra Costa County total about 1 ,100, of whom about 950 work at the Martinez complex and a small Pittsburg operation. In addition Shell Oil and Chemical operates a business office in San Ramon employing 135. r Union Oil Company operates an oil refinery at Rodeo between the cities of Richmond and Martinez and distribution terminal for Northern California at Richmond. The oil refinery, which began operations in 1896, occupies 1 ,100 acres and processes up to 100,000 barrels of raw materials per day. Union' s docking facilities can handle tankers up to .nine million gallons . There are 520 full-time employees at the refinery and 80 at the distribution terminal . 02610 - 32 - Tosca Corp. operates the 126,000 barrels per day capacity refinery at Avon. The refinery, which has been in operation since 1910, uses crude oil • . ' from 'the North Slope of Alaska and the heaviest crude oil from California oil fields and refines it into high grade light fuel products. It is located on a 2,200-acre site and employs 713 people. U.S. Steel-Pittsburg Works began operations in 1910 in Pittsburg. It currently operates a finishing mill , sheet mill and tin mill . The company ships its products by three railroad lines, ocean going vessels or via trucks. Its employees total 1-,100. In the 1960' s Contra Costa County developed as a center of light manufacturing, primarily in the electronics industry. The largest of these companies is Systron-Donner. The company began operations in Concord in the early 1960's and is now located in four buildings on 23 acres and employs 830. A number of the heavy industry companies have located research or office divisions in the suburban centers of San Ramon, Concord, and Walnut Creek. The table below lists certain major employers in Contra Costa County. A substantial portion of Contra Costa' s work force commutes to San Francisco primarily to white collar jobs in the City' s financial district. Total employment in Contra Costa County was estimated by the State Employment Development Department (EDD) to be 231 ,600 for December 1984 versus an average of 217,700 in 1983, and 208,300 in 1982. Overall in the last five years (1980-1984) total employment rose 15 percent while population increased 7 percent. EDD no longer compiles data on job categories for Contra Costa County. The . County's detail is now aggregated as part of the five San Francisco Bay Area Counties group. In 1981 , the last year in which the County' s data was reported separately, four major job categories comprised 76 percent of Contra Costa County's work force. They were retail trade (22.2 percent) , services (20.6 percent) , government (19.2 percent) and manufacturing (14.0 percent) . During the five years from 1977 through 1981 finance, insurance and real estate was the fastest growing major category, increasing by 48 percent, followed by a 30 percent increase in services and a 25 percent growth rate in wholesale trade. In contrast, agricultural employment declined by 15 percent. The table titled "Labor Market Survey" summarizes employment by industry of workers in Contra Costa County since 1977. The figures presented are annual averages which are estimated by the State Department of Employment Development. Comparable employment totals by category for 1982, 1983 and 1984 are not available from the State Department of Employment Development. In March 1985 unemployment figures were as follows: 6% for Contra Costa County, 7.3% for State of California and 7.3% for the United States. J 02610 - 33 - ro � •� L y r ro M >r v•� � 4la.N00 a0 000oo�ooMooN O O O O O N O M O r O N N N O M r r N 0 0 0 1 r N N N r r r M r r r r r yl . . . 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O U O. 0 m 0 L y u ro A 7 C L d•r r d r A O•� L r ro cm c $- u %- royY > Cd••- d I EO••- LC CC7A••- O000LL AL++O3 C OOdA •• Ocod �r L•�•sAd ro0Nf Or W•r• d Lw u IA aCL xCA 3w r•r LO 0 C4- N u O > d u W X d•r •r ro y u 0r- da:QCcUWwr V1 d > IA 3 (A•r ro L A ro •t to >,00 - O O N (� IAu 7 CA z (A 0 1.- N J V1 O COUNTY OF CONTRA COSTA • LABOR MARKET SURVEY (in thousands) 1977 1978" ' 1979" ' 1980( " 1981 `2 ' Mining and construction. . . . . .: . . . . . . . 11 .0 12.5 13.8 14.1 13.4 Manufacturing. . . . . . . . . . . . . . . . . . . . . . . . 26.5 26.4 27.5 27.1 28.4 Chemicals. . . . . . . . . . . . . . . . . . . . . . . 4. 1 3.9 3.9 3:6 3.8 Petroleum. . . . . . . . . . . . . . . . . . . . . . . 5.0 5.0 5.3 5.4 6.9 Other nondurables. . . . . . . . . . . . . . . 6.2 6.0 5.9 5.8 5.7 Durable goods. . . . . . . . . . . . . . . . . . . 11 .2 11 .5 12.4 12.3 12.0 Transportation and public utilities. . 9.7 10.4 10.9 11 .8 12.0 Wholesale trade. . . . . . . . . . . . . . . . . . . . . . 7.1 7.6 7.9 8.7 8.9 Retail trade. . . . . . . . . . . . . . . . . . . . . . . . 38.5 42.0 43.8 44. 1 45.2 Finance, insurance and real estate. . . 8.7 10.2 11 .5 11 .9 12.9 Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32.3 36.6 38.3 40.0 42.0 Business services. . . . . . . . . . . . . . . 6.1 7.0 7.9 8.4 8.8 Health services. . . . . . . . . . . . . . . . . 9.6 10.2 11 .0 11 .4 11 .9 Other services. . . . . . . . . . . . . . . . . . 16.6 19.4 19.4 20.2 21 .3 Government. . . . . . . . . . . . . . . . . . . . . . . . . . . 40.5 40.4 38.9 39.7 39.0 Agriculture. . . . . . . . . . . . . . . . . . . . . . . . . . 2.0 1 .9 1 .8 1 .7 1 .7 Total . . . . . . . . . . . . . . . . . . . . . . 176.3 186.8 194.3 199.0 .203.5 Total does not add due to independent rounding. `2 ' Last year data available by County basis. For 1982, 1983 and 1984 data by job categories not available from State Department of Employment Development. County now included as part of five San Francisco Bay Area Counties group only. Source: State Department of Employment Development. BUILDING AND ECONOMIC OUTLOOK FOR 1985 AND BEYOND A favorable factor in the economic outlook for Contra Costa County for 1985 and future years is the many major commercial and industrial building projects taking shape along Interstates 680 and_ 80 running through the County and in the Cities of Walnut Creek, Concord and San Ramon. The increase in office space in Contra Costa County has been substantial . Non-residential valuation of building permits (primarily commercial office buildings) totaled over $445 million in 1984 versus $362 million in 1983, $218 million in 1982 and $206 million in 1981 . 02810 - 35 - t For the last few years, office construction and leasing has been the , mach-publicized center of the County' s economy. It is estimated that over 5 million square feet of office space alone will be constructed in Bishop Ranch, during the next seven years. Slated for completion in 1995, Bishop Ranch, a 585-acre business park, anticipates to be the workplace for 20,OOO .people. With 2 million square feet currently under construction, Bishop Ranch is already sizable. Major tenants in International Harvester, Union Carbide, Western Electric, Davy McKee, Equifax and Northern Telecom, Chevron, Pacific Bell and Beckman Instruments are among the larger owner/users. The County' s excellent labor force and lower land and leasing costs than nearby metropolitan areas should continue to make the County an attractive area for new construction. The Bank of America' s computer, data processing and office complex in Concord' s downtown redevelopment area is scheduled to open in September 1985, and employ 3,500. In addition, completion in 1985 of several large office complexes in the Central and South County should play a significant role in expanding employment opportunities in Contra Costa County. Expansion of office employment should create a need for more retail and service businesses in the County. Also, the Bay Area, including Contra Costa County and the Port of Richmond, are in excellent position to increase shipping and cargo handling because of continued growth in Pacific Basin trade. Other kinds of "mixed use development" includes planned the Ellinwood project in Pleasant Hill , the site of housing, offices and restaurant construction; the Town Centre Complex in Walnut Creek, a planned housing, hotel , shopping and office complex; and Hilltop in Richmond where housing, light industry, offices and service businesses are part of a master plan for the future. Environmental Control Services Water Supply: The East Bay Municipal Utilities District (EBMUD) and the Contra Costa County Water District supply residents with water. EBMUD, the second largest retail water distributor west of the Mississippi , supplies water to the western part of the County. Ninety-five percent of its supply is the Mokelumne River stored at the 68 billion gallon capacity Pardee Dam. The District is entitled to 325 million gallons per day under a contract with the State Water Resources Control Board, plus an additional 325 million gallons per day under a contract with the U.S. Water and Power Resources Service (formerly the U.S. Bureau of Reclamation) . The District does not plan to draw on its federal entitlement for the foreseeable future. Currently the District' s water supply is sufficient. 02610 - 36 - t The Contra Costa County Water District obtains its water from the Sacramento-San Joaquin Delta. It is entitled under a costract with the U.S. ` Water' and Power Resources Service to 195,000 acre-feet per year. Water sold has ranged between 80,000 and 110.,000 acre-feet annually- In addition, a number of industrial users and several municipalities draw water directly from the San Joaquin River under their own riparian rights, so that actual water usage in the service area averages about 125,000 acre-feet annually. The District states its water supply- Is sufficient for the fcreseeable future and has no plans to bring in additional supplies. Sewerage: Sewer services for the County are provides by approximately 20 sanitation districts and municipalities. Federal and State environmental requirements plus grant money available from these two sources have resulted in about 14 agencies upgrading, expanding and/or building new facilities. Flood Control : The Contra Costa County Flood ControT District has been in operation since 1951 to plan, build, and operate flood control projects in unincorporated areas of the County except for the Delta area on its eastern border. The Delta is interspersed with inland waterways which fall under the jurisdiction of the U.S. Corps of Engineers and the State Department of Water Resources. The District has one major project under construction--a $25,000,000 project in the vicinity of Concord. The District's portion of the cost is $1 ,850,000; the rest is provided by the Corps of Engineers, the . project builder. The County has experienced no major flooding in urbanized areas since October 1962. Population Population in Contra Costa County reflects the County' s growth as 'a manufacturing center in the early 1900' s and as a light manufacturing and suburban center beginning in the 1950's. Population rose almost 200 percent in the 1940' s, due mostly to wartime industry in the City of Richmond. During the 50' s and 60's population increased 37 percent each decade. The 1970' s had a slower growth rate of about 17 percent. The following table shows a 45 year history of the County' s population growth. Population centers in Contra Costa County.first developed in the coastal cities of Richmond, Martinez, Pittsburg, and Antioch. Heavy manufacturing provided the major impetus for population growth. Three other unincorporated towns, Lafayette, Orinda and Moraga, became prime residential areas when access to Oakland and. San Francisco was improved by the opening of the Caldecott Tunnel in 1937. `Three unincorporated areas, Danville, San Ramon, and Orinda became new cities in 1982, 1983 and 1985, respectively. Both Danville and San Ramon are located in the southern part of the County and owe- their growth partly to being located along Interstate 680. The cities of Walnut Creek and Con ord grew rapidly during the 1960's and 70' s. While both cities have an econofnic base of light manufacturing, their population growth came about from opening of highways primarily to San Francisco and in the 70' s from the establishment of rapid transit (BART). . 0261 - 37 - i M NOdN Mf d 6-2 c" Ntor C Otd to O MOtdCtOOMhdr00dOh00h0 O O NGC rtO NGp dNO�0000 d0pNOr d O . . . . . . . . . . . . . . . . . . . 00 hto d tohMw ddv hGO 1A 00 M QT d O N N N N r r M N h N N t nW3 O in r r h 00 N N OtdtnMddGOO I M N N H1 M N Ln I MtQ h OOr K1 m to I v m N Ili dMN NOtDh b N 1l>t O 00 M d d M N to O N to d Mtn qr Ot M h 00 a O N N N r M N h rLn as t o %a M N N r NOM 1 O r O O N CO h f 0 0 0 O N i R T O Go A H r 10 O t h l t n N N O r M d 0%N O I M cn O C •r• Mtn Nip hGO Otr tChdi I MMMrM d 00 O r V Nh as CT 4"en N 0%w-W Ln Id,%AOm l0 N to a faar M Q1 N r r r N N h r 0o 00 C fJ1 U to ro N h T O O to d I O N d tD to O r•d M r l {*tr2 0% Ln �d0%a 1 mw =Lnd 00 d C lC M r r N V t o N 0 0%a ID O Q 00 M O Q O . d F'- h 00 r4 in toOGCdN]OvM;; 0 00 �O V H Ot N 00 N N r- r N.N hen M to M C Q r to .A U C Q Z .- h ao 1 Z H to%D 1 00 1 h O I d I d N 1 d h I M CD Od O 00 O Q O W I O I Mr I O 1 t Q I n 1 0 0 Go 1 0 M O M U J M N 0 M GO O O to GO Ot O N -W O C I L�C. t0 ^N GO to Ot GO Ot •-M M0 h 6� 00 mM N om O E C. r d h y Y L 1- Ln ro o fL U r q- I M I M 1 00 I h M I to tC 1 0 d M0 Ht N 1 Kf I r d I GO I d GC I d h 1 N 00 N d O O h: Ct O t+f N r h Gn d d Ct N ro to %0 00 00 r N Ct d N 00 t0 y O r r r Ct r ON 00 V1 r N L'7 O Cl 00 m G0 1 I M I h M I r l d 0 I N I I t10 O h 1 O I 1 h I M d I OD I M N I d l 1 h to 00 O O M r M M Ot to GO in d M d d - T T to r GO h Ot M O h r r N O O r O� 7 N C U O •= d L U A _y ,D •++ OJ OI 0 • a).- 0 iJ N L AJ'mr QCL U M 0 C'r L_d 4J W 3 C C� E U L ro L- o N V 3 O Lr Lr d CA6110 A 0 Aee00y 0 +J O 0! 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CD A Nr C A Ar 3 X +J 61+J MW L r A 'ooc.70 61u ONaOMMdM do o 651! n •V E C L C -� C (O 10 NLA MM0 MO n N r N Nr Im r^r1�•.- N �N�OT(q 01 NO � O C - or ONC 7N3 ^ N N�.E >> � doe rm"0� nW M a0 - C A C 3 O.L 61 Na..1 dr. 0L 00d 00O Vf N CD 01 p •r 0 CLO Lr C rof NN Nr .�#A OD r 00 A u C N %- -0= U A W. : > 617 3 LLu CC00 N M A O dOVEC AO U M M d'► d'► N U r C C A .0 y N A _ O JJ L L'o U r A W Z U N N d 0 w c* W% Q0� �O N C C+J +J C r O C O Oo h d O��O U, (O 00 N O co O N (u A 10> > L 01 %- 01 --QO M7 ac n�v1 N d 0 N N O - U 3 u VI C L 6)Ya A Q N r Md OQO Ln(Od ON c" nm d G% 0 L C 61 d u L F-V1 L Ln N N N n O� -- At C 61 7 NE 0v41 (A 2c A aJ N r V (n 3 L C C OOr N M L N C ur C U A O U 1••I r- 4/1, 49 44 Mm O 3 'o 6J.- N r•• - U H O N U_0 67 UOCr O -N QUC JJ 3 a? -V C ex Q NLO OI�O�M 1n O n M M a0 I A 67 A OI W.aJ CL "0C•� H V1 W Ln d n 0 00�o N (O Z O• W O r LJ] L C O N A 3 A 22 O O da%�OMn00&1 (000 O a0 N M r T +J aJ•- d U r....0 N O Q QO - 7 M C 6a C a N a u C U O: N 0 a o�A�.J r%0; C er � 0; O� � Os W CLW L C O L O 1-"D - N Na0 (n MM %a r, N T n I UU Or A r 01 yr A W C -Ln N� N O 0 L A CL ++r•� L,�J L OW A - O W.aJ O N r L N A r A 67 J N •- M M W. O u u 61 O 61 CD :3 M M d'► 41 ++= N A 61 F E F N N O� Z X L d LF C= W r N OQm01n M dM 00d 0 O O N A OL r VIV1 A OF- nO%ON(Od a0-- O M 00 L D A•� 67 7 A r U C 0 •-(n�o�of m Nn M d O% ([7 (n O .JIMCNC N30 Cn - - _ - chLL r 61r 07 A Y L C L v O� MMn M(nd•- a0M (O 00 d 61 C C > L i C -61 A O r .-n�OO�nr d a0N n ca N ♦J A 61 r 10 O N A^ E OW �d�N N� --QA 00 %O A ar U +J L 61 L- .0 r•� u L L U 7+J N C v C r N M 061 AOA 3 L 10A M M fA df >\ as wus- > oua7CU .0 C r O O —W•r O E �r'L L A a � � E� ANc ,,; 39 .+ C o u•� N u 61 C(A +J 0 A A d L 41 L T A L C N C d O IV N 61 6/ (u N r O_ 61 r 61 A r- N Y N O C 41 67- A = > A U V N A r E L C L >> >1 41 A L C Ol 7 u 61 A L OA NL 6! >%++ N61 A O N O N u ua+ C ar C v N : Nr :u a+ > N a c W C C C L O O N 07 61.- A • A N 6J L 4j W O NM�-iJ 61 "D 3r en., L u CL C6. u-W r (D 6) N >,r A N CL 61 U+J O A Q L i L N a(i+ >> CA > ar•.- LO •+J •rA� OA OaJ O O u +J 0 61 L f^ 61 u N N CL C AJ O. 0 r O _ > A C N r r N 61 10 > N d 9 A A O >� r N 3 C at L N_-A 0-; 61 L a C I'D r C U L y ++ C 0301++ A U N OCAN CO .- A A UAd UOLA61 NdC67C ) Lr r -A A N N r N 0 > A L 00 -6) to r N H L A YJ N Y N A N 4J L L ♦J Q C m A-+O( d dA L C 6611 C O1r •.C A N 67 N 61 A V r t C L A v 1L N A L L r C L 0 0 L OC CL r r i cu u A 01^ WI- N LQ 01 dC O O Lr 61 ra N �J A 1•- +J Q r- 4J V- CN^ L C L u+.1 7 VL+.+ NaJ r .r 7 +J A U G OI W. A 61 N >00 a0 61 A O L V1 V1 O• N f�L A -A A C O O 61 aJ r L A 7 O L • L u O H.r C N +J 9! 67•r•O•- E C v 61 61 AJ A F- r (A A 61 X 0 C N O A U2 H N >%L r C C 61 Vf r'o O L G E A L t G y t= A - + O A t- -1 Ol E F- N 07 A U E+JL %- r- 67 A•r C ' rr+J 61 3C 67G (U N t X L O �J 3 0 61 C Z u C • L d A A N CO Of W..�r u 0 C 61 aJ A 61 61 Ur iuCA ►-••- LN67 LL•- AC CO.•� 6A C O F- u _O AO( Cr n L 67Y++ Aa) UC JL•r• ¢�r E > Or r L aJn N61(GO CCN O.C670u+JE• � L4JCL N r 7 %0 00CwL.0%ef r A61 G610.OAA 7 013 3 r O N U i+r W 2 m Vf Q m Q .. V1 O Construction Activity The value of building permits issued in Contra Costa County totaled more than $850 million in 1984, a significant increase from prior years. The fastest growing canponent has been nonresidential construction which totaled $445 million in 1984. Of that total , commercial , valuation accounted for the major part reflecting a rapid increase in construction of office space as major companies are expanding facilities or relocating offices to Contra Costa County. Residential building permits totaled $408.5 million in 1984. Single family permits have typically comprised 65-75 percent or more of new dwelling units authorized. Over the five year period (1980-1984) permits have been issued for 18,811 single family homes and 6,447 multiple family dwelling units having a total valuation of $1 ,597, 137.,000. Approximately one-third to one-half of the single family permits were issued in the unincorporated areas of the County. The following table provides a summary of building permit valuations and number of new dwelling units authorized .in the County since 1980. COUNTY OF CONTRA COSTA BUILDING PERMIT VALUATIONS 1980 1981 1982 1983 1984 Valuation ( in thousands) Residential . . . . . . . . . . . . $306,175 $227,924 $201 ,256 $432,288 $408,062 Nonresidential . . . . . . . . . 158,804 205,905 218,496 362,940 445,002 Total . . . . . . . . . . . . . $464,979 $433,829 $419,752 $795,228 $853,564 New Dwelling Units: Single family. . . . . . . . . . 4,566 2,523 1 ,930 4,588 4,162 Multiple family. . . . . . . . 854 585 858 1 ,968 2,255 Total . . . . . . . . . . . . . 5,420 3,108 2,788 6,556 6,417 i Source: "California Construction Trends," Security Pacific National Bank. Transportation Availability of a broad transportation network has been one of the major factors in the County' s economic and population growth. Road transportation on Interstate 80 connects the western touchy to San Francisco, Sacramento and points north to Interstate 5, the major north-south highway from Mexico to Canada. Interstate 680 connects the central county communities to the rest of the Bay Area via State Routes 4 and 24, major east-west arteries. 02610 - 40 - f AC Transit, a daily commuter bus service based in Oakland, connects Contra Costa communities to San Francisco and Oakland. Central Contra Costa Transit Authority (CCC:A) was formed in 1981 to provide local bus service to the central area of the County. CCCTA is currently providing service in Walnut Creek, Pleasant Hill and Concord and other central County areas. Since 1974 Bay Area Rapid Transit System (BART) with two main lines, one to Richmond and the other to the Concord/Walnut Creek area, connects the County to Alameda County, San Francisco and Daly City in San Mateo County. Other bus and rail passenger service is provided by Greyhound, Trailways Bus, and Amtrak. The Santa Fe and Scuthern Pacific- Railroads' mainlines service Contra Costa County, both ir, the industrial coastal areas and the inland farm section. The port of Richmond on San Pablo Bay and several privately owned industrial docks on both San Pablo and Suisun Bays serve the heavy industry located in the area. The Port of Richmond, owned and operated by the City, now covers 202 acres. The Port handled 1 ,011 ,289 short tons in 1983, down slightly from 1 ,189,032 in 1980. The majority of the shipments ,are bulk liquid with the remainder being scrap metal and autos. Private terminals near Richmond handled 15,424,073 short tons in 1983. The largest shipper accounting for most of this tonnage is Chevron. In August 1983 the U.S. Congress approved a $44 million bill to deepen the Port of Richmond' s inner harbor and extend two turning basins. Major scheduled airline passenger and freight transportation for County residents is available at either Oakland or San Francisco International Airports, located about 20 and 30 miles, respectively, from the County. In addition there are two general aviation fields, one at Antioch and the other. at Concord. , Agriculture Agriculture is concentrated in the eastern half of the County. Major individual products in terms of 1984 dollar value are: milk ($7.37 million) , tomatoes ($7.37 million) , bedding plants ($5.80 million) , cattle and calves ($5.66 million) , cut roses ($5.20 million) , field corn ($2.90 million) and asparagus ($2.90 million) . 02610 — 41 — r 000001 N C C>1 OQ"'M O eF a N a,00 Is ,O - an a0 OD O Q r C L0 cu M- _ C a+ d a.i 411- 4, O ¢C rC&I 30r 3rr CE GUA4O- Cy Ud- d r JJ r V. 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O I- CIG V r^ A - d 4 r> Z U '- ,a O C 4- •` V1 A L toL A O H N �+ d O L L U. d O C A+ d O CIC r L d L CL>t C•.-L U 0 3 L Ln > d E&J A G i.- Q u L d •�L e� C (A alC O CAj u3 NO L 3 E O "o O �r 090 3 In - d C CCI U A IA Q LC- adAL a+ dd 00000 o r o d •+ 41 u C . 41 Y A O r A r C A O G A A e�f 0 0 0 OO O L r a+r 0 1 ••` VI >+.r at d u O fA•�+-O u O•-N O a,a,O,1z. ,O aJ r L CA U x u 0•.•- r L 00 r, r% +f C .0 A A co-"a G M - Q• T 1 0 A u >s z 41 u V M d r d•� i+ C C 7 A A � a) ,O T N O,O. d r+ •r L,- r L A� d a+L••- r-� Ada CONdC Cr Aa� C M L A >L 7 A O H d 1- 0 O OG N A+-+ n d N 10 L G O d • d O HCC iCCL. (Ad d O Lto - • JJ 7► C�J O 7•• O r u- ;♦♦d -L c • •r C O O �+ toOHA drr• • 3 I/1 7 O C L- >1 3 r L yJ F- • C 03 dA - A C C G O U V to%a U�U C.r..>. > O C - .... • >� L > A 3 C� IA C L L VI 4J • L u c d 41 9 H A L d v -O O G 9 A r/ •+••I HA L N (D +j +-)++LHC 4. 03Nd •� •v n - n O 3 Vf•-a.r d O a•r dam•.• C • 3 dO � U r O Oa •r• r C C•r 14C 0) t- I- ONa U IC NVIL'dA OAS+ +d n 0 u A • A O+•+ A +d•.- A 7 C U C O aI L- u u •r t L L u A A r-N C T L A ='o 9 L G A 4- 41 u r IA L -u d 4- d -O x 10C C 7A a.r C IALA +j ++u L- 0to tocO 10 O ++ 3 CCd 01N A d4- L G .WI•- d U uVl 0041CC 4- u0 G Y o dOY++ N •r C 7 U C•r•-I&L Wo c u L.r - Cuu rOo dC L A >. >+O u�o A O 7 > M0% d CU d d C o d/- CA•+ L 41 A Aja d d O r- L A >4.+L L L A d 6 d to 41 a.+ w o Cf: u a 0 d .I.-+-I+•�U O Vl (D 0) 0) L L 0 - OC L > d 017 > G 7 Lr; �_ VIS•r �•r d ,O 3•r•r d L•r - O u A O c L IA N U. 1LJ v N IA UA06- AE++ O - APPENDIX A CONTRA COSTA COUNTY REPORT ON EXAMINATION FOR THE YEAR ENDED JUNE 30, 1984 otsio — 43 — s r M ' e ° y I •p V a •-� R u >, a � N a L N COC G y •+ u -OL N u C Y. t o to d U C d •r ug «• u a d W dW a • - a 1 C Q C••m+ +'C.+ 4 ON O m y R ro y N 4 a C a ro aC a O c 4 40 C,CC °r y ro u u m CA ro N a m ro ro a 4 U ~0+• t W.. 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