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HomeMy WebLinkAboutMINUTES - 03071989 - 2.2 / "-00" Tcy' BOA&D-OF SUPERVISORS ^ FROM: ( f_J �tra Phil Batchelor, County Administrator CxWICd DATE'. C`" " "J March 1, 1989 SUBJECT: California Counties Finance Authority SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACMROUND AND JUSTIFICATION RECOMMENDATIONS 1. Adopt Resolution authorizing use of the California Supervisors Association of California, California Counties Finance Authority for the Data Processing Building and for Phase I of the Public Works Corporation Yard. 2. Authorize the County Administrator or his designee to execute the necessary documents to complete the issue of the necessary securities for the financing. FINANCIAL IMPACT The two projects to be financed are estimated to cost approximately $6, 000,000 for the Corporation Yard and $4, 300,000 for the Data Processing Building. The debt service for the Corporation Yard project will be met with savings from canceled rental spaces, overhead costs to agencies serviced by Public Works and Road Fund revenues. The Data Processing project debt service will be partially offset by rental cancellations and increased rate charges to clients. The CSAC deferred financing program is the most cost effective program available at this time for two reasons. The first is that the borrowing falls under the pre-1986 tax laws, since the pool was formed by August 1986, therefore the County is allowed to earn arbitrage on borrowed funds thereby lowering the net debt service costs for life of the issue. The second advantage is a lower cost of issuance since many of the usual borrowing costs are paid by CSAC from interest earnings on the funds not used until needed for County projects. Interest rates for the borrowing are set based upon the credit of the County, not by any particular program used. Market conditions, while on a gradual upward movement, are excellent at this time. CONTINUED ON ATTACHMENT: X YES SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURE(S): ACTION OF BOARD ON March 7, 1989 APPROVED AS RECOMMENDED OTHER X APPROVED Recommendations 1 and 2 above; and DIRECTED the County Administrator and Public Works Director to review the use of Road Fund revenues to meet the debt service for the Corporation Yard, for further discussion with the Board during the budget process. VOTE OF SUPERVISORS 1 HEREBY CERTIFY THAT THIS IS A TRUE X UNANIMOUS (ABSENT AND CORRECT COPY OF AN ACTION TARN AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN. CC: Data Processing ATTESTED YI� Public Works Director PHIL BATCHELOR, CLERK OF THE BOARD OF General Services SUPERVISORS AND COUNTY ADMINISTRATOR County Administrator BY a"ZaM382/7-83 DEPUTY � -2- BACKGROUND The Public Works Corporation Yard, .Phase I will consolidate four locations into one. Public Works will relocate all activities from the Shell Avenue Center, Lafayette Yard, Glacier Drive temporary site and rented space on Arnold Drive. Costs for these facilities exceed $120,000 per year. at present. The new project will occupy approximately seven acres along Imhoff Drive and Blum Road in Martinez. The project will include ari' 8,000 square foot Administration Building, a 5, 000 square foot Road Crew Storage Building and an 8,000 square foot Warehouse Building. Parking will be provided for 86 . employee vehicles and 157 Public Works Trucks and heavy equipment. The site will be extensively landscaped to enhance the appearance of the area. The facility will provide increased efficiency and improved working conditions for the Public Works Maintenance crews for many years. The Data Processing Center Building is currently under construction based upon a lease with the developer approved by the Board some months ago. The current financing action will exercise the option to purchase the building and site using tax-exempt ,interest rates.. for the debt. The project consists of a 1 . 57 acre site at 30 Douglas Drive, Martinez . . The building of 35,300 square feet is being built to "essential services facilities" specifications which increases the seismic safety factor substantially for this vital County function. The building is scheduled to be completed in June 1989 and will consolidate equipment and staff from locations in Martinez, Pacheco and Concord. The consolidation will allow for greater operational efficiencies and provide for increased service demands .in the future. cc: Authorizing Resolution ?- County of Contra Costa COUNTY OF CONTRA COSTA, STATE OF CALIFORNIA Resolution No. 89/169 IN THE MATTER OF A RESOLUTION APPROVING, AUTHORIZING AND DIRECTING EXECUTION OF CERTAIN LEASE FINANCING DOCUMENTS INCLUDING INTEREST RATE AND REPAYMENT SCHEDULES.- AUTHORIZING CHEDULES,AUTHORIZING AND DIRECTING EXECUTION OF A REMARKETING AGREEMENT, APPROVING A PRELIMINARY OFFICIAL STATEMENT AND AUTHORIZING AND DIRECTING CERTAIN ACTIONS WITH RESPECT THERETO RESOLVED, by the Board of Supervisors of the County of Contra Costa (the "County") : WHEREAS, in previous action, the County has approved a Participation Agreement expressing the interest of the County to participate in a lease financing program in conjunction with the County Supervisors Association of California, more particularly, CSAC Finance Corporation (the "Corporation") ; and WHEREAS, to enable the remarketing of certain certificates of participation executed and delivered in connection with the lease financing program (the "Program") and to effectuate such Program, the County entered into a Joint Exercise of Powers Agreement Between Certain Counties in California (the "JPA Agreement") creating the California Counties Lease Financing Authority (the "JPA") ; and WHEREAS, the County proposes to participate in the Program and desires to finance certain property (the "Projects") described in Exhibit C to the Project Lease Agreement (defined below) and it is in the public interest and for the public benefit that the County authorize and direct the execution of the Project Lease Agreement together with certain other financing documents in connection therewith; and WHEREAS, pursuant to the County's authorization, Prudential-Bache Securities, Inc. (the "Remarketing Agent") proposes to remarket the above described lease purchase financing and has prepared and presented to the County a form of Fixed Rate/Variable Rate Supplemental Remarketing Agreement (the "Remarketing Agreement") by and among the Remarketing Agent, the JPA, the County and certain other counties participating in the Program, and a Preliminary Supplemental Official Statement in respect of the County and the Project Lease Agreement (the "Preliminary Supplemental Official Statement") containing information material to the remarketing and sale of Fixed Rate Certificates of Participation described therein (the "Certificates of Participation") ; and _l_ Authorizing Resolution County of Contra Costa WHEREAS, the documents below specified have been filed with the County and the members of the Board of Supervisors, with the aid of its staff, have reviewed said documents. NOW, - THEREFORE, it is hereby ORDERED AND DETERMINED, as follows; SECTION 1. The Chairman, Vice Chairman, County Administrative Officer, Assistant County Administrative Officer, or any other County official designated by the County Administrative Officer or otherwise authorized to execute contracts (after approval) on behalf of the County (the "County Representatives) ") are hereby authorized and directed to execute the documents listed below, in substantially the forms presented at this meeting, with such changes, insertions and omissions as may be approved by such official, and the Clerk of the Board or Deputy Clerk is hereby authorized and directed to attest to such official 's signatures (a) a Project Lease Agreement, dated as of April 1, 1989, relating to the Projects, between the JPA, as lessor, and the County, as lessee (the "Project Lease Agreement") , so long as (i) the term of the Project Lease Agreement does not exceed thirty (30) years, (ii) the Principal Amount of the Project Lease Agreement does not exceed $13,000, 000, and (iii) the Lease Payments payable by the County thereunder in any twelve-month period do not exceed $1,200, 000; and (b) a Facilities Lease, by and between the JPA and the Corporation, solely for the purpose of acknowledging and approving said Facilities Lease on behalf of the County, and relating to one of the Projects which is the subject of the above-referenced Project Lease Agreement; and (c) the Remarketing Agreement; and (d) related Closing Documents as required in con- nection with and related to financing the Projects. SECTION 2 . The County Representatives are hereby authorized and directed to execute such other agreements, documents and certificates as may be necessary to effect the purposes of this Resolution and the financing herein contemplated and authorized including, but not limited to, a site lease, an assignment of option to purchase, a site and facility lease, an encroachment permit, an easement, a license, a security document, or such other document as may be appropriate to transfer to the JPA and the Corporation a legal interest in the real property upon which the Projects will be constructed or located, if the Projects include a real property component, or to transfer to the Corporation a legal interest in such portions of the Projects that include personal property. -2- Authorizing Resolution County of Contra Costa SECTION 3. To the best of the County Representatives ' knowledge, information and belief, the Preliminary Supplemental Official Statement contains no untrue statement of a material fact with respect to the County or omits to state a material fact with respect to the County required to be stated where necessary to make any statement made therein not misleading in the light of the circumstances under which it was made. SECTION 4. The Preliminary Supplemental Official Statement is approved for distribution in connection with the offering and remarketing of the Certificates of Participation. SECTION 5. The County Representatives are authorized to approve corrections and additions or deletions to the Preliminary Official Statement by supplement or amendment thereto, or otherwise as appropriate, provided that any such corrections and additions or deletions shall be necessary to cause the information contained therein to conform with facts material to the Certificates of Participation or to the proceedings of the County or such corrections and additions or deletions are in form rather than in substance. SECTION 5. The County Representatives are authorized and directed to cause the preparation of a final supplemental official statement (the "Supplemental Official Statement") in respect of the County, the Project Lease Agreement and the Certificates of Participation and to execute such Supplemental Official Statement and a certificate stating that the facts contained in the Supplemental Official Statement, and any supplement or amendment thereto (which shall be deemed an original part thereof for purposes of such certificate or statement) were, at the time of the remarketing of the Certificates of Participation, true and correct in all material respects and that the Supplemental Official Statement did not, on the date of delivery of the Certificates of Participation, contain any untrue statement of a material fact with respect to the County or omit to state material facts with respect to the County required to be stated where necessary to make any statement made therein not misleading in the light of the circumstances under which it was made. The County Representatives shall take such further actions prior to the signing of the Supplemental Official Statement as are deemed necessary or appropriate to verify the accuracy thereof. SECTION 7. This Resolution shall take effect from and after its date of adoption. -3- Authorizing Resolution t County of Contra Costa The foregoing resolution was duly passed and adopted by the Board of Supervisors of the County of Contra Costa at a regular meeting thereof,, held on the 7th day of March, 1989, by the following vote: Ayes: Supervisors Powers, Fanden, McPeak, Torlakson. Schroder. Nays: None. Absent: None. Signed and approved by me after its passage. (SEAL) By: ! �Y /C SG�✓� Chairman, Board of Supervisors . Attest: Phil Batchelor, Clerk of the Board of Supervisors and County Administrator By: Deputy Clerk of the Board This instrument is a correct copy of the original on file in this office. March 7, 19$9 Date: Certified By: .ff�JX,r E —el" Deputy Clerk of the Board of Supervisors of Contra Costa County -4-