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.