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HomeMy WebLinkAboutMINUTES - 05011990 - 1.80 1-080 TO: BOARD OF SUPERVISORS Contra CostaFROM: Phil Batchelor, County Administrator •• ,,• County DATE: May 1 , 1990 rqcdur+'�' SUBJECT: Association of Bay Area Governments Joint Powers Authority for Financing of Non-Profit Corporations SPECIFIC REOUEST(S)OR RECOMMENDATION(S)8 BACKGROUND AND JUSTIFICATION RECOMMENDATIONS 1 . Adopt Resolution authorizing membership in a Joint Powers Authority created by the Association of Bay Area Governments to assist non-profit corporation service providers to obtain tax-exempt financing. 2 . Authorize the Chair of the Board to execute the Joint Exercise of Powers Agreement. 3 . Appoint a County Representative to the Governing Board of the ABAG Finance Authority. FINANCIAL IMPLICATIONS There are no direct financial impacts upon the County from participation in the Joint Powers Authority. The repayment for any securities issued by the Authority would be payable only from the participating non-profits. The County would not be required to guarantee any loan repayments. The Authority will have the power to issue securities to obtain funding to loan to approved non-profit providers for property acquisition and construction. The planned result will be lower borrowing costs to providers thus freeing more funds for services. BACKGROUND The Association of Bay Area Governments has proposed a program to assist non-profit corporations providing a wide range of services to local governments in obtaining access to the tax-exempt financing market to lower their cost for capital facilities. CONTINUED ON ATTACHMENT: YES SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURE(S): ACTION OF BOARD ON APPROVED AS RECOMMENDED OTHER VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE UNANIMOUS(ABSENT ) AND CORRECT COPY OF AN ACTION TAKEN AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD ABSENT: ABSTAIN: OF SUPERVISORS O THE DATE SHOWN. CC: ATTESTED PHIL BATCHELOR, LERK OF THE BOARD OF SUPERVISORS AND COUNTY ADMINISTRATOR M382 (10/88) BY ,DEPUTY -a- Current tax laws allow for "conduit" financing through a public agency to a non-profit corporation organized under Section 501(c) 3 of the Internal Revenue Service Code without the need for an allocation from the State for private activity bonds. Only organizations within the County, providing benefits to the residents, are eligible to be considered for tax-exempt borrowing. The proposed Joint Powers Agency to be established by ABAG would be able to screen and aggregate requests from the eligible organizations to plan larger, cost-affective packages for financing. Non-profit service providers in our County have already expressed interest in participating in the program. Participation in the JPA will require very little involvement of time since ABAG staff will be responsible for the management of the Authority and for the financial requirements. A member of the Board of Supervisors is required to be designated to represent the County on the Authority Board of Directors. Required meetings of the Authority Board would be incorporated into regular meetings of the ABAG Executive Board whenever possible. The Joint Powers Agreement has been reviewed by County Counsel and his comments incorporated into the final version of the Agreement. Participation in the Authority appears to have virtually no risk for the County and offers the potential benefit of lower capital costs for the eligible non-profit service providers in the County. Lowering costs through tax-exempt borrowing offers a no-cost method of assisting the very important service providers within the County. Orig. Dept. : County Administrator cc: Community Development Social Service Health Services County Counsel Auditor-Controller Probation RESOLUTION NO. 90/251 A RESOLUTION OF THE BOARD OF SUPERVISORS OF THE COUNTY OF CONTRA COSTA, C:AT,TFORNL AUTHORIZING THE EXECUTION AND DELIVERY OF A JOINT EXERCISE OF POWERS AGREEMENT AND APPOINTING THE COUNTY'S REPRESENTATIVES TO THE GOVERNING BOARD OF THE ABAG FINANCE AUTHORITY FOR NONPROFIT CORPORATIONS CREATED THEREBY WHEREAS, the County of Contra Costa, California (the "County") is a political subdivision duly organized and existing under the Constitution and laws of the State of California; WHEREAS, the County, upon authorization of the Board of Supervisors , may pursuant to Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California, commencing with Section 6500 (the "JPA Law" ) , enter into a joint exercise of powers agreement with one or more other public agencies pursuant to which such contracting parties may jointly exercise any power common to them; WHEREAS, the County and the other public agencies which are members or cooperating members of the Association of Bay Area Governments intend to enter into a joint exercise of powers agreement pursuant to the JPA Law (the "Joint Exercise of Powers Agreement" ) pursuant to which the ABAG Finance Authority For , Nonprofit Corporations (the "Authority" ) will be created to, among other things, assist nonprofit corporations to obtain tax-exempt financing; WHEREAS, under California law and the Joint Exercise of Powers Agreement, the Authority will be a public entity separate and apart from the parties to the Joint Exercise of Powers Agreement and the debts, liabilities and obligations of the Authority will not be the debts, liabilities or obligations of the County or any representative of the County serving on the governing body of the Authority (the "Governing Body" ) ; WHEREAS, this Board proposes to authorize the execution of the above-referenced Joint Exercise of Powers Agreement, in substantially the form presented to this Board; and WHEREAS, all acts, conditions and things required by the . Constitution. and laws of the State of California to exist, to have happened and to have been performed precedent to and in connection with the consummation of the transactions authorized hereby do exist, have happened and have been performed in regular and due time, form and manner as required by law, and the County is now duly authorized and empowered, pursuant to each and every requirement of law, to consummate such transactions for the purpose, in the manner and upon the terms herein provided; NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS: SECTION 1 . Declaration of Board. This Board hereby specifically finds and declares that the actions authorized , hereby constitute and are with respect to public affairs of the County, and that the statements, findings and determinations of 2 2618003/12 Authority and voting on behalf of the County on all matters delegated to the Governing Board. Supervisor Torlakson is hereby designated as the County' s "applicable elected representative" for the purposes of Internal Revenue Code Section 147(f) with respect to any tax-exempt financing of the Authority. SECTION 5. Further Actions. Officers of the Board of Supervisors and the Chairman of the Board of Supervisors and the Chief Administrative Officer and any other officer or official of the County authorized by the Chairman of the Board of Supervisors , are hereby authorized and directed, jointly and severally, to do any and all things and to execute and deliver any and all documents which they may deem necessary or advisable in order to consummate, carry out, give effect to and comply with the terms and intent of this resolution and the Joint Exercise. of Powers Agreement. Such actions heretofore taken by such officers are hereby ratified, confirmed and approved. SECTION 6. Effective Date. This resolution shall take effect immediately upon its passage. 4 2618003/12 the County set forth in the preambles above and of the documents approved herein are true and correct . SECTION 2. Joint Exercise of Powers Agreement . The form of Joint Exercise of Powers Agreement, dated as of April 1, 1990 , presented to this meeting and on file with the Clerk of the Board of Supervisors is hereby approved. The Chairman of the Board of Supervisors and the Chief Administrative Officer of the County and any other County officer or official of the County authorized by the Chairman of the Board of Supervisors are each hereby authorized and directed, for and in the name and on behalf of the County, to execute, acknowledge and deliver said Joint Exercise of Powers Agreement in substantially said form, with such changes therein as such officer may require or approve, such approval to be conclusively evidenced by the execution and delivery thereof . SECTION 3 . Attestation and Seal . The Clerk of the Board of Supervisors is hereby authorized and directed to attest the signature of the authorized signatory, and to affix and attest the seal of the County, as may be required or appropriate in connection with the execution and delivery of the Joint Exercise of Powers Agreement. SECTION 4 . County Representative. Supervisor TorlakQon is hereby appointed as the County' s Representative to the Governing , Board for all purposes of representing the County' s interests and exercising the authority of the County with respect to the 3 2618003/12 CERTIFICATE I, J,4. ` Ma¢lio, Deputy Clerk of the Board of Supervisors of the County of Contra Costa, hereby certify as follow: ; The following is a full , true and correct copy of a resolution duly adopted at a meeting of the Board of Supervisors of said County duly and regularly and legally held at the regular meeting place thereof on May 1, 1990 of which meeting all of the members of the Board oSupervisors of said County had due notice and at which a quorum was present. I have carefully compared the same with the original minutes of said meeting on file and of record in the Clerk's office and the foregoing is a full , true and correct copy of the original resolution adopted at said meeting and entered in said minutes . Said resolution has not been amended, modified or rescinded since the date of its adoption, and the same is now in full force and effect. Dated: May 1, 1990 Deputy Clerk of the Board of Supervisors (Seal] PASSED AND ADOPTED this let day of May , 1990 , by the following votes : AYES : Supervisors Schroder, McPeak , Torlakson, Fanden NOES : None ABSENT : Supervisor Powers DISQUALIFIED: None APPROVED: `G —�- Chair, o o.- Supervisors (SEAL) Phi•! Bachelor, Clerk of the Board of Supervisors arid.Couniy Admimsiratar ATTEST: . Denuty ,Clerk of the Board of Supervisors 5 2618003/12