HomeMy WebLinkAboutMINUTES - 03311987 - 1.16 TO: BOARD OF SUPERVISORS
FROM: ASSESSMENT DISTRICT SCREENING COMMITTEE
BY: J. MICHAEL WALFORD, PUBLIC WORKS DIRECTOR
DATE: March 31, 1987
SUBJECT: ASSESSEMENT DISTRICT SCREENING COMMITTEE RECOMMENDATION FOR ASSESSMENT DISTRICT
1987-1, REFUNDING BONDS, PLEASANT HILL BART STATION AREA.
Specific Request(s) or Recommendation(s) & Bac group us ication
I. RECOMMENDED ACTION:
I. Approve the refinancing of Assessment District No. 1983-1 bonds by formation of
Assessment District No. 1987-1 on the following terms:
a. non-recourse 1915 Act bonds
b. 3% bond reserve fund
C. underwriting discount and costs of issuance to be as listed in Exhibit II of
the Refunding Presentation (Dean Witter Reynolds Inc.) dated March 1987
d. fee to county for administration not less than 112%
e. bond registration paid at actual cost, if any
II. FINANCIAL IMPACT:
The bonds are secured by the unpaid assessments together with interest thereon. A debt
service reserve fund of 3/ is proposed. The bonds are to be issued as non-recourse bonds
wherein the county is not obligated to pay and transfer from surplus funds amounts necessary
to cover unpaid assessments. The county has, however, elected to follow Revenue and Taxation
Code procedures in which a tax loss reserve fund has been created and would be used to
cover such unpaid assessments.
III. REASONS FOR RECOMMENDATION/BACKGROUND:
The Assessment District Screening Committee, meeting on March 5, 1987 considered proposals
submitted by the financial firm of Dean Witter Reynolds Inc. to refund the existing bonds
on Assessment District No. 1983-1 in the Pleasant Hill BART Station area. This would
be in accordance with provisions of the 1984 Bond Refinancing Act of the State of California.
Continued on attachment: X yes Signature. ✓ �-�-�
Recommendation of County Administrator Recommen tion of Board Committee
Approve Other:
Signature(s):
Action of Board on: MAR 3 11987 Approved as Recommended r/ Other
Vote of Supervisors I HEREBY CERTIFY THAT THIS IS A TRUE
AND CORRECT COPY OF AN ACTION TAKEN
Unanimous (Absent Z ) AND ENTERED ON THE MINUTES OF THE
Ayes: No BOARD OF SUPERVISORS ON DATE SHOWN.
Absent: Abstain: Attested MAR 3 11987
Orig. Div.: Public Works (ES) PHIL BATCHELOR
cc: Assessment District Screening Committee CLERK OF THE BOARD OF SUPERVISORS
Via Public Works AND COUNTY ADMINISTRATOR
Bob Brunsell , Bond Counsel
Dean Witter Reynolds (via P/W) l
Attn: Mr. Peter Ross By
Upon considering the presentation, the committee concluded that if guidelines are followed,
such as recommended above, the additional costs to the county for refinancing will be fully
compensated.
The refunding bonds would result in an estimated $1.1 million in present value savings due
to lower interest rates and reduced debt service. All developers in the area agree with this
refunding procedure and have waived their right to notice of hearing in order to expedite the
refinancing. The refunding procedure is also being used to update current assessment obligations
because (1) they had become incorrect due to land transactions, (2) development approval varied
from estimates made when AD 1983-1 was formed and (3) to correct certain errors made in the
original assessments.
IV. CONSEQUENCES OF NEGATIVE ACTION:
Potential savings to the property owner in reduced assessments and possible cash flow
enhancement would not be realised.
ad1987.1.res