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HomeMy WebLinkAboutRESOLUTIONS - 05222001 - 2001-240 BOARD OF SUPERVISORS CONTRA COSTA COUNTY, CALIFORNIA RESOLUTION NO. 2001/240 RESOLUTION PROVIDING FOR THE BORROWING OF FUNDS IN THE NAME OF THE ANTIOCH UNIFIED SCHOOL DISTRICT FOR FISCAL YEAR 2001-2002 AND THE ISSUANCE AND SALE OF 2001 TAX AND REVENUE ANTICIPATION NOTES THEREFOR RESOLVED, by the Board of Supervisors of Contra Costa County, California, as follows: WHEREAS, pursuant to Article 7.6 (commencing with section 53850) of Chapter 4 of Part 1 of Division 2 of Title 5 of the California Government Code (the "Lav"), school districts organized and existing under the laws of the State of California are authorized to borrow money by the issuance of temporary- notes, the proceeds of which may be used and expended for any purpose for which the school district is authorized to spend moneys; WHEREAS, pursuant to the Law, such notes may be issued in the name of such school districts by the board of supervisors of the county, the county superintendent of which has jurisdiction over such school district, as soon as possible following receipt of a resolution of the governing board of such school district requesting such borrowing; and WHEREAS, the Board of Supervisors (the "Board") of Contra Costa County (the "County")has received from the Board of Trustees of the Antioch Unified School District (the "District") a .resolution finding and determining that it is desirable that the District borrow funds in an amount not to exceed $12,000,000 with respect to the fiscal year 2001-2002 for authorized purposes of the District, and requesting that the Board for that purpose authorize the issuance of and offer for sale tax and revenue anticipation notes in the name of the District in the principal amount of not to exceed $12,000,000, under and pursuant to the provisions of the Lav; NOW, THEREFORE, it is hereby DETERMINED and ORDERED as follows: Section 1. Recitals True and Correct. All of the recitals herein set forth are tnue and correct and the Board so funds and determines. Section 2. Approval of Request of District. The Board hereby approves the request of the District for the Board to issue notes in its name. Section 3. Limitation on Maximum Amount. The principal amount of notes issued pursuant hereto, when added to the interest payable thereon, shall not exceed eighty-five percent (85°x) of die estimated amount of the uncollected taxes, revenue and other moneys of the District for the general fund of the District attributable to Fiscal Year 2001-2002, and available for the payment of said notes and the interest thereon (as hereinafter provided). Sectiott 4. Authorization and Term`,, of Notes. Solely for the payment of current expenses, capital expenditures and other obligations payable from the general fund of District during or allocable to Fiscal Year 2001-2002, and not pursuant to any connmon plan of financing, and subject to the receipt by the Board of a resolution finding sand determining that it is desirable that the District borrow fluids in an amount not to exceed $12,000,000 with respect to the fiscal year 2001-2002 for authorized purposes of the District, and requesting that the Board for that purpose authorize the issuance of and offer for sale tax and revenue anticipation notes in the name of the District in the principal amount of not to exceed $12,000,000, under and pursuant to the provisions of the Law, the Board hereby determines to and shall borrow the aggregate principal sum of not to exceed Twelve million dollars ($12,000,000) in the name of the District. Such borrowing shall be by the issuance of temporary notes under the Law, designated "Antioch Unified School District (Contra Costa County, California) 2001 Tax and Revenue Anticipation Notes" (the "Notes"). The Notes shall be dated as of their date of delivery, shall mature (without option of prior redemption) not more than fifteen months from such date of delivery, and shall bear interest from their date, payable at maturity and computed on a 30-day month/360-day year basis. Both the principal of and interest on the Notes shall be payable in lawful money of the United States of America, as described below. Section 5. Form of Notes; Book Entry Only System. The Notes shall be issued in frilly registered form,without coupons, and shall be substantially in the form and substance set forth in Exhibit A attached hereto and by reference incorporated herein, the blanks in said form to be filled in with appropriate words and figures. The Notes shall be numbered from 1 consecutively upward, shall be in the denomination of$1,000 each or any integral multiple thereof. "CUSIP" identification numbers shall be imprinted on the Notes,but such numbers shall not constitute a part of the contract evidenced by the Notes and any error or omission with respect thereto shall not constitute cause for refusal of any purchaser to accept delivery of and pay for the Notes. In addition, failure on the part of the Board to use such CUSIP numbers in any notice to registered owners of the Notes shall not constitute an event of default or any violation of the Board's contract with such registered owners and shall not impair the effectiveness of any such notice. Except as provided below, the owner of all of the Notes shall be The Depository Trust Company, New York, New York ("DTC"), and the Notes shall be registered in the name of Cede & Co., as nominee for DTC. The Notes shall be initially executed and delivered in the form of a single fully registered Note in the fiill aggregate principal amount of the Notes. The Board may treat DTC (or its nominee) as the sole and exclusive owner of the Notes registered in its name for all purposes of this Resolution, and the Board shall not be affected by any notice to the contrary. The Board shall not have any responsibility or obligation to any participant of DTC (a "Participant"), any person claiming a beneficial ownership interest in the Notes under or through DTC or a Participant, or any other person which is not shown on the register of the Board as being an owner, with respect to the accuracy of any records maintained by DTC or any Participant or the payment by DTC or any Participant by DTC or any Participant of any amount in respect of the principal or interest with respect to the Notes. The Treasurer, as paying agent, shall pay all principal and interest with respect to the Notes only to DTC, and all such payments shall be valid and effective to fully satisfy and discharge the Board's obligations with respect to the principal and interest with respect to the Notes to the extent of the sum or sums so paid. Except under the conditions noted below, no person other than DTC shall receive a Note. Upon delivery by DTC to the Board of written notice to the effect that DTC has determined to substitute a new nominee in place of Cede & Co., the tern "Cede & Co." in this Resolution shall refer to such new nominee of DTC. If the Board determines that it is in the best interest of the beneficial owners that they be J able to obtain Notes and delivers a written certificate to DTC to that effect, DTC shall notify the Participants of the availability through DTC of Notes. In such event, the Board shall issue, transfer and exchange Notes as requested by DTC and any other owners in appropriate amounts. DTC may determine to discontinue providing its services with respect to the Notes a t any time by giving notice to the Board and discharging its responsibilities with respect thereto 2 under applicable lay. Under such circumstances (if there is no successor securities depository), the Board shall be obligated to deliver Notes as described in this Resolution. Whenever DTC requests the Board to do so, the Board will cooperate with DTC in taking appropriate action after reasonable notice to (a) make available one or more separate Notes evidencing the Notes to any DTC Participant having Notes credited to its DTC account or (b) arrange for another securities depository to maintain custody of Certificates evidencing the Notes. Notwithstanding any other provision of this Resolution to the contrary, so long as any Note is registered in the name of Cede&Co., as nominee of DTC, all payments with respect to the principal and interest with respect to such Note and all notices with respect to such Note shall be made and given, respectively, to DTC as provided in the representation letter delivered on the date of issuance of the Notes. Sc°ctioii 6. Use of Proceeds; Investment of Proceeds. The moneys so borrowed shall be deposited in the Treasury of the County in a proceeds fund (the "Proceeds Ftmd") to the credit of the District to be withdrawn, used and expended by the District for any purpose for which it is authorized to expend funds from the general fund of the District, including, but not limited to, current expenses, capital expenditures and the discharge of any obligation or indebtedness of the District. Proceeds shall, if held by the County, to the greatest extent possible, be invested by the Treasurer-Tax Collector (the "Treasurer") or such other appropriate investment officer of the County, in the County investment pool or directly in investment securities in accordance with District directive as permitted by the laws of the State of California as now in effect and as hereafter amended, and in accordance with such procedures and subject to such requirements as the Treasurer or such other appropriate investment officer of the County shall establish. In the alternative, the Treasurer shall, at the written direction of the District, transfer funds to the provider of an investment agreement upon the written recommendation of the Superintendent (or his designee) (in either case, an "Authorized Officer") of the District, provided that such investment agreements are: (i) issued or guaranteed by an entity the corporate debt of which at the time of investment is rated in one of the two highest long-terns rating categories by Moody's Investors Service and Standard & Poor's Ratings Services; or (ii) issued or guaranteed by an insurance company with.a claims-paying rating at the time of investment in one of the two highest long-term rating categories of Moody's Investors Service and Standard & Poor's Ratings Services; provided further that any rating agency maintaining a rating on the Notes shall be notified in writing by the District prior to the District entering into said investment agreement; and provided further that any such investment agreement shall contain provisions satisfactory to any rating agency maintaining a rating on the Notes, specifying that, in the event the long- term debt rating of the provider of the investment agreement is downgraded by either Moody's Investors Service or Standard & Poor's Ratings Services to below said rating agency's second highest long-term rating category, without regard to rating subcategories, the provider of such investment agreement shall,within ten (10) days, deliver to a third party, collateral in the form of direct and general obligations of the United States of America, or obligations that are unconditionally guaranteed as to principal and interest by the full faith and credit of the United States of America, in the amount of not less than 104% of the principal amount of the investment agreement and/or senior debt and mortgage-backed obligations of FNMA or FHLMC in an amount not less than 105% of the principal amount of the investment agreement; and further specifying that, in the event the long-term debt rating of the provider of the investment agreement is withdrawn, suspended or downgraded by either Moody's Investors Service or Standard & Poor's Ratings Services to below said rating agency's third highest long- term rating category, without regard to rating subcategories,such investment agreement shall, at the option of the District, terminate, and the full principal amount invested thereunder, together with any interest accrued thereon, shall be paid to the District or the Treasurer within two (2) 3 business days of such downgrade. Proceeds may also be invested in the Local Agency Investment Fund. Section 7. Securi . The principal amount of the Notes, together with the interest thereon, shall be payable from taxes, revenue and other moneys which are received by the District for the general fund of the District for the Fiscal Year 2001-2002. As security for the payment of the principal of and interest on the Notes, the Board, in the name of the District, hereby pledges the first "unrestricted moneys", as hereinafter defined, (a) an amount equal to fifty percent (50%) of the principal amount of the Notes to be received by the County on behalf of the District in January, 2002, (b) an amount equal to fifty percent (50%) of the principal amount of the Notes to be received by the County on behalf of the District in April, 2002, and (c) an amount equal to all interest due on the Notes at maturity, to be received by the County on behalf of the District in May, 2002 (such pledged amolunts being hereinafter called the "Pledged Revenues"). The principal of the Notes and the interest thereon shall constitute a first lien and charge thereon and shall be paid from the Pledged Revenues. To the extent not so paid from the Pledged Revenues, the Notes shall be paid from any other moneys of the District lawfully available therefor. In the event that there are insufficient unrestricted moneys received by the District to permit the deposit in the Repayment Fund, as hereinafter defused, of the full amount of the Pledged Revenues to be deposited in any month on the last business day of such month, then the amount of any deficiency shall be satisfied and made tip from any other moneys of the District lawfully available for the repayment of the Notes and interest thereon. The term "unrestricted moneys" shall mean taxes, income, revenue and other moneys intended as receipts for the general hind of the District and which are generally available for the payment of current expenses and other obligations of the District. Section 8. Repavment Fund, Investment of Repayment Fund. There is hereby created a special fund to be held on behalf of the District by the Treasurer separate and distinct from all other County and District funds and accounts designated the "Antioch Unified School District (Contra Costa County, California) 2001 Tax and Revenue Anticipation Notes Repayment Fund" (the "Repayment Fund") and applied as directed in this Resolution. Any money placed in the Repayment Fund shall be for the benefit of the registered owners of the Notes, and until the Notes and all interest thereon are paid or until provision has been made for the payment of the Notes at maturity with interest to maturity, the moneys in the Repayment Fund shall be applied solely for the purposes for which the Repayment Fund is created; provided, however, that any interest earned on amounts deposited in the Repayment Fund shall periodically be transferred to the general fund of the District. During the months of January, April and May, 2002, all Pledged Revenues shall be deposited into the Repayment Fund. On the maturity date of the Notes, the Treasurer shall transfer to DTC the moneys in the Repayment Fund necessary to pay the principal and interest on the Notes at maturity and, to the extent said moneys are insufficient therefor, an amount of moneys from the District's general fund which will enable payment of the full principal of and interest on the Notes at maturity. DTC will thereupon make payments of principal and interest on the Notes to the DTC Participants who will thereupon make payments to the beneficial owners of the Notes. Any moneys remaining in the Repayment Fund after the Notes and the interest thereon have been paid, or provision for such payment has been made, shall be transferred to the District's general fund. Moneys in the Repayment Fund shall, if held by the County, to the greatest extent possible, be invested by the Treasurer, or such other appropriate investment officer of the County, directly in investments as permitted by the laws of the State of California as now in effect and as hereafter amended, and in accordance with such procedures and subject to such requirements as the Treasurer or such other appropriate investment officer of the County shall establish. 4 In the alternative, the Treasurer shall, at the written direction of the District, transfer funds to the provider of an investment agreement upon the written recommendation of the Authorized Officer of the District, provided that such investment agreements are: (i) issued or guaranteed by an entity the corporate debt of which at the time of investment is rated in one of the two highest long-term rating categories by Moody's Investors Service and Standard & Poor's Ratings Services; or (ii) issued or guaranteed by an insurance company with a claims-paying rating at the time of investment in one of the two highest long-term rating categories of Moody's Investors Service and Standard & Poor's Ratings Services; provided further that any rating agency maintaining a rating on the Notes shall be notified in writing by the District prior to the District entering into said investment agreement;and provided further that any such investment agreement shall contain provisions satisfactory to-any rating agency maintaining a rating on the Notes,specifying that, in the event the long-term debt rating of the provider of the investment agreement is downgraded by either Moody's Investors Service or Standard & Poor's Ratings Services to below said rating agency's second highest long-term rating category, without regard to rating subcategories, the provider of such investment agreement shall, within ten (10) days, deliver to a third party collateral in the form of direct and general obligations of the United States of America, or obligations that are unconditionally guaranteed as to principal and interest by the full faith and credit of the United States of America, in the amount of not less than 104°0 of the principal amount of the investment agreement; and further specifying that, in the event the long-term debt rating of the provider of the investment agreement is withdrawn, suspended or downgraded by either Moody's Investors Service or Standard & Poor's Ratings Services to below said rating agency's third highest long-term rating category, without regard to rating subcategories, such investment agreement shall, at the option of the District, terminate, and the hill principal amount invested thereunder, together with any interest accred thereon, shall be paid to the District or the Treasurer within two (2) business days of such downgrade. The Treasurer may also invest the Repayment Fund in the Local Agency Investment Fund. The proceeds of any such investments shalt, as received, be deposited in the Repayment Fund and shall be part of the Pledged Revenues. Section 9. Execution of Notes. The Notes shall be executed in the name of the District, with the manual or facsimile signature of the Treasurer or one or more of his duly authorized deputies, and the manual or facsimile counter-signature of the Clerk of the Board of Supervisors (although at least one of such signatures shall be manual) with the seal of the Board impressed thereon, and said officers are hereby authorized to cause the blank spaces thereof to be filled in as may be appropriate. Section 10. Transfer of Notes. Any Note may, in accordance with its terms, but only if the District determines to no longer maintain the book entry only status of the Notes, DTC determines to discontinue providing such services and no successor securities depository is named or DTC requests the Treasurer to deliver Note certificates to particular DTC Participants, be transferred, upon the books required to be kept pursuant to the provisions of Section 12 hereof, by the person in whose name it is registered, in person or by his duly authorized attorney, upon surrender of such Note for cancellation at the office of the Treasurer, accompanied by delivery of a written instnunent of transfer in a form approved by the Treasurer,duly executed. Whenever any Note or Notes shall be surrendered for transfer, the Treasurer shall execute and deliver a new Note or Motes, for like aggregate principal amount. Section 11. Exchange of Notes. Notes may be exchanged at the office of the Treasurer for a like aggregate principal amourit of Notes of authorized denominations and of the same maturity. 5 Section 12. NoteRe�ister. The Treasurer shall keep or cause to be kept sufficient books for the registration and transfer of the Notes if the book entry only system is no longer in effect and,in such case, the Treasurer shall register or transfer or cause to be registered or transferred, on said books, Notes as herein before provided. While the book entry only system is in effect, such books need not be kept as the Notes will be represented by one Note registered in the name of Cede & Co., as nominee for DTC. Section 13. Temporary Notes. TI-ie Notes may be initially issued in temporary form exchangeable for definitive Notes when ready for delivery. The temporary Notes may be printed, lithographed or typewritten, shall be of such denominations as may be determined by the Treasurer, and may contain such reference to any of the provisions of this Resolution as may be appropriate. Every temporary Note shall be executed by the Treasurer upon the same conditions and in substantially the same manner as the definitive Notes. If the Treasurer issues temporary Notes he will execute and furnish definitive Notes without delay, and thereupon the temporary Notes may be surrendered for cancellation, in exchange therefor at the office of the Treasurer and the Treasurer shall deliver in exchange for such temporary Notes an equal aggregate principal amount of definitive Notes of authorized denominations. Until so exchanged, the temporary Notes shall be entitled to the same benefits pursuant to this Resolution as definitive Notes executed and delivered hereunder. Any costs bome by the County for the exchange of the Notes will be reimbursed by the District. Section 14. Notes Mutilated, Lost, Destroyed or Stolen. If anv Note shall become mutilated the Treasurer, at the expense of the registered owner of said Note, shall execute and deliver a new Note of like maturity and principal amount in exchange and substitution for the Note so mutilated, but only upon surrender to the Treasurer of the Note so mutilated. Every mutilated Note so surrendered to the Treasurer shall be canceled by it and delivered to, or upon the order of, the Treasurer. If any Note shall be lost, destroyed or stolen, evidence of such loss, destruction or theft may be submitted to the Treasurer and, if such evidence be satisfactory to the Treasurer and indemnity satisfactory to it shall be given, the Treasurer, at the expense of the registered owner,shall execute and deliver a new Note of like maturity and principal amount in lieu of and in substitution for the Note so lost, destroyed or stolen. The Treasurer may require payment of a stun not exceeding the actual cost of preparing each new Note issued under this Section 14 and of the expenses which may be incurred by the Treasurer in the premises. Any Note issued tinder the provisions of this Section 14 in lieu of any Note alleged to be lost, destroyed or stolen shall constitute an original additional contractual obligation on the part of the Board whether or not the Note so alleged to be lost, destroyed or stolen be at any time enforceable by anyone, and shall be equally and proportionately entitled to the benefits of this Resolution with all other Notes issued pursuant to this.Resolution. This Section 14 will not be in effect so long as DTC book entry is utilized. Section 15. Covenants and Warranties. Based on the representations and covenants of the District, it is .hereby covenanted and warranted by the Board that all representations and recitals contained in this Resolution as to the County are true and correct, and that the Board has reviewed all proceedings heretofore taken relative to the authorization of the Notes and has fottnd, as a result of such review, and hereby finds and determines that all acts, conditions and things required by law to exist, happen and be performed precedent to and in the issuance of the Notes have existed, happened and been performed in due time, form and manner as required by lav, and the Board is duly authorized to issue the Notes in the name of the District and incur indebtedness in the manner and upon the terms provided in this Resolution. The Board and the District and their appropriate officials have duly taken all proceedings necessary to be taken by them, and will take any additional proceedings necessary to be taken by them, for the prompt collection and enforcement of the taxes, revenue, cash receipts and other .moneys pledged hereunder in accordance with law and for carrying out the provisions of this Resolution. 6 Section 16. Sale of Notes. The Board acknowledges that the District's Resolution provides that: (A) The Notes will be sold by competitive bid and awarded as set forth in an Official Notice of Sale, which Kelling, Northcross & Nobnga (the "Financial Advisor") and the Authorized Officer are thereby authorized to prepare,consistent with the District's Resolution. (B) The Authorized Officer is thereby directed to execute the Official Notice of Sale, and to arrange for the publication of a notice of intention to sell the Notes. The Authorized Officer is thereby authorized and directed to open the bids at the time and place specified in the Official Notice of Sale. The Authorized Officer is thereby authorized and directed to receive and record the receipt of all bids made pursuant to the Official Notice of Sale, to cause said bids to be examined for compliance with the Official Notice of Sale, to cause computations to be made as to which bidder has bid the lowest true interest cost, as provided in the Official Notice of Sale, to announce the bidder of the lowest true interest cost, and to award the sale to said bidder. The County Board relies upon the District and its Authorized Officer to properly carry out all proceedings in connection with the selection of a purchaser of the Notes. The County takes no responsibility for conducting the sale of the Notes. (C) Zions First National Bank, parent company of the Financial Advisor, has been authorized by the District to submit a bid for the Notes. Section 17. Preparation of the Notes; Execution of Closing Documents. Jones Hall, A Professional Lav Corporation, as bond counsel to the District, is directed to cause suitable Notes to be prepared showing on their face that the same bear interest at the rate aforesaid, and to cause the blank spaces therein to be filled in to comply with the provisions of this Resolution in accordance with the identified purchaser of the Notes, and to procure their execution by the proper officers, and to cause the Notes to be delivered when so executed to DTC on behalf of the identified purchaser therefor upon the receipt of the purchase price by the Treasurer on behalf of the District. The Treasurer or any other officer of the County are further authorized and directed to make, execute and deliver to the purchaser or purchasers of the Notes (a) a certificate in the form customarily required by purchasers of bonds of public corporations generally, certifying to the genuineness and due execution of the Notes, and (b) a receipt in similar form evidencing the payment of the purchase price of the Notes which receipt shall be conclusive evidence that said purchase price of the Notes has been paid and has been received on behalf of the District. Any purchaser or subsequent taker or holder of the Notes is hereby authorized to rely upon and shall be justified in relying upon any such certificate or receipt with respect to the Notes. Such officers and any other officers of the District or of the County are hereby authorized to execute any and all other documents required to consummate the sale and delivery of the Notes. Section 18. Limited Liabilitv. Notwithstanding anything to the contrary contained herein, in the Notes or in any other document mentioned herein, neither the County nor the Board shall have any liability hereunder or by reason hereof or in connection with the transactions contemplated hereby and the Notes shall be payable solely from the moneys of the District available therefor as set forth in Section 7 hereof. 7 I, June L. McHuen, D j=y Clerk of the Board of Supervisors of the County of Contra Costa, State of California, do hereby certify that the foregoing Resolution was regularly introduced, passed and adopted by said Board at a regular meeting held on the 22 day of May , 2001, on motion of Supervisor Gioia and second of Supervisor Glover by the following vote: AYES: SUPERVISORS: GIOIA, GERBER, DESAULNIER, GLOVER and UILKEMA NOES: SUPERVISORS: NONE ABSTAINED: SUPERVISORS: NONE ABSENT: SUPERVISORS: NONE Clerk of the and of Supervisors By ,l i S RESOLUTION 2001/240