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HomeMy WebLinkAboutMINUTES - 06121990 - S.6 THE BOARD OF SUPERVISORS OF .CONTRA COSTA (COUNTY, CALIFORNIA Adopted this Order on June 12, 1990 , by the following vote: AYES: Supervisors Powers, Schroder, McPeak, Torlakson, Fanden NOES: None ABSENT: None ABSTAIN: None SUBJECT: The Richmond Unified School District, in order to meet its fiscal needs for 1989-90, has requested an emergency loan of $14 million dollars from the State. Assembly Bill 1273 would authorize an emergency loan to the District, but this legislation has not yet been approved by the Governor. On June 15, 1990, .the District will need $8 million dollars to meet its payroll. ;The District has requested that Contra Costa County advance its payroll needs pending its receipt of State funds pursuant to AB 1273 . 1 . Upon the condition that AB 1273 or comparable legislation is first enacted and becomes effective on or before June 30, 1990, so that the Richmond Unified 'School District becomes entitled to receive at least $10 million dollars in additional state funds authorized for expenditure in the 1989-90 fiscal;: year, the Contra Costa County Auditor-Controller and Treasurer are directed to make a temporary transfer of County funds in the amount of $8 million dollars to the Richmond Unified School District ; or to the Contra Costa County Superintendent of Schools on the .Richmond Unified School District's behalf, to meet current expenses of maintenance of the District. 2. The Board of Supervisors finds that Contra Costa County has $8 million dollars in county funds not immediately needed to pay claims against them. 3 . Any funds transferred under this order to or on behalf of the Richmond Unified School District shall be repaid with interest at the prime rate on or before July 1, 1990 and shall be retransferred by the Auditor-Controller and Treasurer to the fund from which they were taken from the first moneys accruing to the school district and before any other obligation of the school district is paid from the money. accruing. 4 . The Auditor-Controller and Treasurer may not release said monies to or on behalf of the School District without the approval of the terms hereof by the Governing Board of the Richmond Unified School District and the receipt of an opinion letter from private counsel (e.g. Orrick, Herrington & Sutcliffe, or Brown & Wood) satisfactory to them and County Counsel verifying.. the authority of the Richmond Unified School District to receive and the County to transfer these funds at this time during this fiscal year, -given the provisions of Article XVI section 6 of the California Constitution. 5. The Auditor-Controller and Treasurer may not release said funds to or on behalf of the Richmond Unified School District until they are satisfied that repayment of said funds 'to the County in a timely manner is assured. 4 I 6 . During the time of the transfer, the County shall receive interest compounded at the prime rate per cent per annum on the transferred funds and on the unrepaid balance thereof . The Board of Supervisors hereby determines that the need to take this action arose subsequent to the agenda for this board's June 12, 1990 meeting being posted. AWW:fjb 1 hereby certify that this Is a true and correct COPY of an action taken and entered on the minutes of the Board of Superrl rs on the'date shown. ArrESTEa c c: County Counsel PHIL CHELOR,Clerk of the Board Auditor-Controller at Supervisors and County AdmkddmtW Treasurer-Tax Collector County Administrator By _..._..Oso County School Superintendent Richmond Unified School District I.