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Home My WebLink AboutMINUTES - 05022006 - SD.1 TO: BOARD OF SUPERVISORS .L Contra FROM: JOHN CULLEN, Costa COUNTY ADMINISTRATOR �` lHown s ae p „ , DATE: May 2, 2006 °°srA---;- County SUBJECT: APPROVE THE ISSUANCE OF BONDS BY THE CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY FOR PROSPECT SIERRA SCHOOL SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATIONS: ADOPT a resolution approving the issuance of tax exempt bonds by the California Statewide Communities Development Authority on behalf of Prospect Sierra School. FISCAL IMPACT: There is no financial impact to the County as a result of this proposed financing. The California Statewide Communities Development Authority will issue tax-exempt revenue bonds on behalf of Prospect Sierra School. Repayment of the bonds is solely the responsibility of Prospect Sierra School. No financial obligations are placed on the County for financing costs or debt repayment. REASONS FOR RECOMMENDATIONS/BACKGROUND: The County has received a request from the California Statewide Communities Development Authority (the "Authority") to conduct a public hearing as required by the Internal Revenue Code in order to issue tax-exempt revenue bonds (the "Bonds") in an aggregate amount not to exceed $17 million on behalf of Prospect Sierra School (the "Borrower"). The Bonds would be tax-exempt private activity bonds for the purposes of the Internal Revenue Code and, as such, require the approval of the elected body of the governmental entity having jurisdiction over the area where the project to be financed is located. The Borrower will use the proceeds of the Bonds to refinance $11,945,000 in outstanding debt, originally approved by the County Board of Supervisors in 2002, and to construct a new arts and music center, and to construct four foreign language classrooms at Prospect Sierra's middle school campus. Prospect Sierra School is a 501(c)(3) nonprofit organization located in EI Cerrito. Prospect Sierra was formed in 1997 through the merger of Prospect School and the East Bay Sierra School. Prospect Sierra offers kindergarten through eight-grade education from two campuses, both located in EI Cerrito. The school currently enrolls 485 students. The improvements to be financed are part of a Capital Facilities Master Plan approved by the school's Board of Trustees in 2004. CONTINUED ON ATTACHMENT: YES SIGNATURE: --- -------'-----------------------------------+-'---------------'--------------------------------------------- ------------------------------------- - --------------- COMMENDATION OF COUNTY ADMINISTRATOR RECOMMEND-- ON OF BOARD COMMIT ��APPROVE _OTHER SIGNATURE(S ' -------------------- - -= - ----...Ill...vvv ----- ----------------------------------- --------- ---------------------------------------------ACTION OF BOARD ON APPROVE AS RECOMMENDED k� THER r VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE AND CORRECT COPY OF AN ACTION TAKEN UNANIMOUS(ABSENT AND ENTERED ON THE MINUTES OF THE BOARD OF SUPERVISORS ON THE DATE AYES: NOES: SHOWN. ABSENT: ABSTAIN: L /� �'' / '�/� ATTESTED I" ' 6kk l_ � C�t/C 3 CONTACT: Jason Crapo 335.1021 JOHN CUA N,CLE C OF THE BOARD OF SUPERVISOR AND C ADMINISTRATOR CC: ' BY DEPUTY t i RESOLUTION OF THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY APPROVING A FINANCING TO BE UNDERTAKEN BY THE CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY TO BENEFIT PROSPECT SIERRA SCHOOL WHEREAS, Prospect Sierra School (the "School")has requested that California Statewide Communities Development Authority(the "Authority")participate in a financing for the purpose of financing and refinancing the acquisition,construction,renovation and rehabilitation of certain educational facilities (the "Facilities") located within the County of Contra Costa(the "County"); and WHEREAS, the Authority will issue its revenue bonds (the "Bonds"), in an aggregate principal amount not to exceed $17,000,000, in connection with the financing; and WHEREAS,the Authority and the School will enter into a loan agreement(the "Loan Agreement")under which the Authority will loan the proceeds of the Bonds to the School to provide a plan of financing to(i) finance the construction of a new arts center and certain other capital improvements at the School's two campus locations at 960 Avis Drive (the"Avis Campus") and 2060 Tapscott Avenue (the "Tapscott Campus"),both located in El Cerrito, California 94530; (ii)refinance the $11,945,000 California Statewide Communities Development Authority Revenue Bonds(Prospect Sierra School), Series 2002 (the"Prior Bonds"),the proceeds of which were used to (x) finance the construction and renovation of library facilities and administrative offices and classrooms at the Avis Campus, (y) finance the construction of a library, a new science, art and music building, and a playground area at the Tapscott Campus, and(z)refinance existing indebtedness of the School consisting of two bank loans in the total amount of approximately $2,500,000 that financed acquisition costs of and capital improvements at the Avis Campus and the Tapscott Campus; (iii)finance miscellaneous construction, renovations, improvements and equipment acquisitions at the educational facilities owned and operated by the School within the County; and(iv)pay other expenses related to issuance of the Bonds, including funding a debt service reserve fund, costs of issuance, and credit enhancement fees (collectively,the"Project"); and WHEREAS,pursuant to Section 147(f) of the Internal Revenue Code of 1986,as amended (the "Code"),the issuance of the Bonds must be approved by the County because the Facilities are located within the territorial limits of the County; and WHEREAS, the Board of Supervisors of the County (the "Board of Supervisors") is the elected legislative body of the County and is the applicable elected representative required to approve the issuance of the Bonds under Section 147(f) of the Code; WHEREAS, the School and the Authority have requested that the County approve the issuance of the Bonds in order to satisfy the public approval requirements of the Code, and to satisfy the requirements of Section 147(f) of the Code and the requirements of Section 9 of the Amended and Restated Joint Exercise of Powers Agreement(the "Agreement"),dated as of June 1, 1988, among certain local agencies, including the County; and WHEREAS,pursuant to Section 147(f)of the Code,the Board of Supervisors has, following notice duly given,held a public hearing regarding the Bonds and the execution and delivery of the 18202.5 028750 RES Loan Agreement, and now desires to approve the Bonds and the execution and delivery of the Loan Agreement; and WHEREAS,the Board of Supervisors understands that its actions in holding this Public Hearing and in approving this Resolution do not obligate the County in any manner for payment of the principal, interest, fees or any other costs associated with the issuance of the Bonds, and the Board of Supervisors expressly conditions its approval of this Resolution on that understanding. NOW, THEREFORE, BE IT RESOLVED, by the Board of Supervisors of the County of Contra Costa, as follows: Section 1. The Board of Supervisors hereby approves the issuance of Bonds by the Authority to finance the Project. It is the intent of the Board of Supervisors that this resolution constitute approval of the Bonds for purposes of Section 147(f)of the Code and Section 9 of the Agreement. Section 2. The officers of the Board of Supervisors are hereby authorized and directed, jointly and severally, to do any and all things and execute and deliver any and all documents, certificates and other instruments which they may deem necessary or advisable in order to consummate the issuance, sale and delivery of the Bonds by the Authority, and to execute and deliver such certificates and other documents they may deem appropriate and otherwise to carry out, give effect to and comply with the terms and intent of this Resolution. Any actions heretofore taken by such officers are hereby ratified and approved. Section 3. The Board expressly conditions its approval of this Resolution on its understanding that the County shall have no obligation whatsoever to pay any principal, interest, fees or any other costs associated with the Authority's issuance of these bonds for the construction of improvements at the School in the County. Section 4. This Resolution shall take effect from and after its passage and approval. 2 18202.5 028750 RES I, Jane Pennington, Chief Clerk of the Board of Supervisors of Contra Costa County, hereby certify that the foregoing Resolution was duly and regularly introduced and adopted at a regular meeting of the Board of Supervisors of Contra Costa County on the 2nd day of May,2006, by the following vote,to wit: AYES: BOARD MEMBERS: �� ^� NOES: BOARD MEMBERS: �f ABSENT: BOARD MEMBERS: nnington - Chief Clerk of the Board 3 18202.5 028750 RES I,Jane Pennington, Chief Clerk of the Board of Supervisors of Contra Costa County,hereby certify that the foregoing Resolution was duly and regularly introduced and adopted at a regular meeting of the Board of Supervisors of Contra Costa County on the 2nd day of May,2006,by the following vote, to wit: AYES: BOARD MEMBERS: NOES: BOARD MEMBERS: ABSENT: BOARD MEMBERS: nu Pennington C ief Clerk of the Board 3 18202.5 028750 RES