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RESOLUTION APPROVING THE FORMS OF A SITE AND FACILITIES
LEASE (JUSTICE FACILITY), ALEASE/PURCHASE AGREEMENT
(JUSTICE FACILITY), A SALE AGREEMENT (FIRE ENGINES), A
LEASE/ PURCHASE AGREEMENT (FIRE ENGINES), A TRUST
AGREEMENT, AN ASSIGNMENT AGREEMENT, A PURCHASE
CONTRACT, A CONTINUING DISCLOSURE CERTIFICATE AND A
REFUNDING ESCROW AGREEMENT, AUTHORIZING CHANGES
THERETO AND EXECUTION AND DELIVERY THEREOF TO THE
OTHER PARTIES THERETO; APPROVING A PRELIMINARY
OFFICIAL STATEMENT, THE DELIVERY THEREOF TO THE
UNDERWRITER, AND THE PREPARATION, EXECUTION AND
DELIVERY TO THE UNDERWRITER OF AN OFFICIAL STATEMENT
TO BE SUBSTANTIALLY DERIVED FROM THE PRELIMINARY
OFFICIAL STATEMENT; AUTHORIZING THE EXECUTION, SALE
AND DELIVERY OF NOT TO EXCEED $5,600,000 OF REFUNDING
CERTIFICATES OF PARTICIPATION; AUTHORIZING AND
DIRECTING CERTAIN ACTIONS IN CONNECTION THEREWITH;
AND RECONFIRMING THE LEVY OF ADDITIONAL PENALTIES ON
FINES FOR CRIMINAL AND PARKING OFFENSES
WHEREAS, the County of Butte, California (the "County") is a political subdivision
duly organized and existing under and pursuant to the Constitution and laws of the State of
California (the "State"); and
WHEREAS, the County proposes to utilize the assistance of the Butte County Public
Facilities Financing Corporation, a nonprofit public benefit corporation organized and existing
under the laws of the State (the "Corporation"), authorized pursuant to Section 5140 of the
Corporations Code of the State to provide assistance in the refinancing authorized hereby for the
County; and
WHEREAS, in 1993, the County, the Corporation and Bank of America National Trust
and Savings Association, as Trustee (the "Prior Trustee"), entered into a series of agreements
(the "Prior Agreements"), each dated as of December 1, 1993, in support of execution, sale and
delivery on January 6, 1994, to Stone & Youngberg LLC (the "Underwriter") of $5,705,000
principal amount of Certificates of Participation (1993 Justice Facility Project) (the "Prior
Certificates") to provide a portion of the financing of additional court room facilities for the
County (the "1993 Justice Facility Project"); and
WHEREAS, in 2002, the County and First Municipal Leasing Corporation (the "2002
Lessor") entered into a Lease with Option to Purchase Agreement (the "2002 Agreement")
pertaining to five fire engines (the "2002 Equipment Acquisition Project"); and
WHEREAS, the County is advised by the Underwriter that current bond market
conditions make possible substantial savings by refinancing the 1993 Justice Facility Project and
the 2002 Equipment Acquisition Project (the "Refinancing Program"), and the County has
requested the Corporation to assist in such refinancing by providing for the execution, sale and
delivery of refunding certificates of participation (the "Refunding Certificates"); and
WHEREAS, in furtherance of implementing the Refinancing Program, there has been
filed with the Clerk (the "Clerk") of this Board of Supervisors (this "Board") at the meeting at
which this Resolution has been adopted forms of the following documents, each dated as of June
1, 2003
a. a Site and Facilities Lease (Justice Facility), between the County and the
Corporation (the "Site Lease"), pursuant to which the County will lease to the
Corporation the real property and courtroom facilities which comprised the 1993 Justice
Facility Project and were the subjects of and were encumbered by the Prior Agreements;
b. a Lease/Purchase Agreement (Justice Facility), between the County and
the Corporation (the "Justice Facility Lease"), pursuant to which the County will agree to
lease the Demised Premises (as defined in the Justice Facility Lease) from the
Corporation and to pay certain Base Rental Payments and Additional Payments (as
defined in the Justice Facility Lease);
c. a Sale Agreement (Fire Engines), between the County and the Corporation
(the "Sale Agreement"), pursuant to which the County will sell to the Corporation the
five fire engines (the "Demised Equipment") in consideration for the Corporation causing
the payment to the 2002 Lessor of the option price payable under the 2002 Agreement for
the Demised Equipment;
d. a Lease/Purchase Agreement (Fire Engines), between the County and the
Corporation (the "Equipment Lease"), pursuant to which the County will agree to lease
the Demised Equipment (as defined in the Equipment Lease) from the Corporation and to
pay certain Base Rental Payments and Additional Payments (as defined in the Equipment
Lease);
e. a Trust Agreement (the "Trust Agreement"), among the County, the
Corporation and U.S. Bank National Association, as trustee (the "Trustee"), providing,
among other things, for application of the proceeds of sale of the Refunding Certificates
to implement the Refinancing Program and the application of the Base Rental Payments
and Additional Payments under both the Justice Facility Lease and the Equipment Lease
(which the Corporation will assign to the Trustee pursuant to the Assignment Agreement,
dated as of June 1, 2003, between the Corporation and the Trustee) to pay the principal of
and the interest on the Refunding Certificates;
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f. an Assignment Agreement (the "Assignment Agreement"), between the
Corporation and the Trustee, providing for the assignment by the Corporation to the
Trustee of all right, title and interest of the Corporation to the Site Lease, the Justice
Facility Lease, the Sale Agreement and the Equipment Lease, including but not limited to
the entitlement to receive the Base Rental Payments and Additional Payments under both
the Justice Facility Lease and the Equipment Lease;
g. a Purchase Contract (the "Purchase Contract"), between the County and
the Underwriter, pursuant to which the County will agree to sell and the Underwriter will
agree to purchase the Refunding Certificates, subject to the terms and conditions thereof;
h. a Preliminary Official Statement (the "Preliminary Official Statement"),
providing certain information about the County, the Refunding Certificates, Refinancing
Program and the Trust Agreement, deemed material to an informed investment decision
by prospective purchasers of the Refunding Certificates;
i. a Continuing Disclosure Certificate (the "Continuing Disclosure
Certificate") to be delivered to the Underwriter concurrently with delivery of the
Refunding Certificates to enable the Underwriter to comply with provisions of Rule
15c(2)-12 of the Securities and Exchange Commission ("Rule 15c(2)-12"); and
j. a Refunding Escrow Agreement (the "Refunding Escrow Agreement"),
between the County and U.S. Bank National Association, as escrow agent (the "Escrow
Agent"), pursuant to which the County will provide for redemption of the Prior
Certificates as authorized by the Trust Agreement, dated as of December 1, 1993 (the
"Prior Trust Agreement"), among the County, the Corporation and U.S. Bank National
Association, as trustee and successor to Bank of America National Trust and Savings
Association, the original trustee thereunder; and
WHEREAS, the County and the Corporation wish to provide for the implementation of
the Refinancing Program through execution, sale and delivery to the Underwriter of the
Refunding Certificates; and
WHEREAS, by adoption of its Resolutions No. 91-120, 91-121 91-123 on October 1,
1991, the Board implemented the provisions of Sections 76000, 76100, 76101 and 76106 of the
Government Code of the State of California, which provide for the establishment of a
Courthouse Construction Fund and a Criminal Justice Facility Construction Fund and the levy of
additional penalties on fines for criminal and parking offenses; and
WHEREAS, to secure the payment to the Trustee (for the benefit of the owners of the
Refunding Certificates) of the Base Rental Payments under the Justice Facility Lease, the County
desires to reaffirm its previous election, pursuant to Section 25350.55 of the Government Code
of the State of California, to pledge its allocated share of the motor vehicle license fee to the
extent such funds are collected by the State Controller and available to the County; and
WHEREAS, all acts, conditions and things required by the Constitution and laws of the
State to exist, to have happened and to have been performed precedent to and in connection with
the consummation of the Refinancing Program authorized hereby do exist, have happened and
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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 Refinancing Program for the purpose, in the manner and upon the terms
herein provided.
NOW, THEREFORE, the Board of Supervisors of the County of Butte, State of
California, does hereby resolve, declare and determine as follows:
1. Findings. The Board hereby specifically finds and declares that the actions
authorized hereby constitute and are true and correct with respect to the public affairs of the
County, and that the statements, findings and determinations of the County set forth in the
preambles of the documents approved herein are true and correct, and the Board hereby declares
its intention of implementing the Refinancing Program.
2. Authorization of Certificates. The Board hereby expresses its intention of
refinancing the previously-completed courthouse facilities through the preparation, sale and
delivery of the Refunding Certificates in an amount not to exceed $5,600,000.
3. Documents Approved. The forms of the Site Lease, the Justice Facility Lease, the
Sale Agreement, the Equipment Lease, the Trust Agreement, the Purchase Contract, the
Continuing Disclosure Certificate and the Refunding Escrow Agreement, presented to this
meeting and on file with the Clerk, are hereby approved, and any one of the Chair of the Board
(the "Chair"), the Vice-Chair of the Board (the "Vice-Chair"), the Treasurer and Tax Collector of
the County (the "Treasurer") or any designee of the Chair (each, an "Authorized
Representative"), as the Authorized Representative of the County, shall, for and in the name and
on behalf of the County, execute and deliver each of said documents to the other parties thereto
in substantially said forms, with such changes therein as such Authorized Representative may
require or approve, such approval to be conclusively evidenced by the execution and delivery
thereof; provided that, with respect to the Purchase Contract, the average interest rate payable
with respect to the Refunding Certificates does not exceed 4.00%, the underwriting discount
does not exceed 1.00% and the combined aggregate principal amount of the Refunding
Certificates does not exceed $5,600,000.
4. Preliminary Official Statement. The form of Preliminary Official Statement (the
"Preliminary Official Statement") relating to the Refunding Certificates, presented to this
meeting and on file with the Clerk, is hereby approved. The Preliminary Official Statement in
substantially said form, with such changes as the Authorized Representative may require or
approve, shall be delivered to the Underwriter, who is hereby authorized to distribute the
Preliminary Official Statement in connection with the offering and resale of the Refunding
Certificates.
In connection with such delivery to the Underwriter, the Authorized
Representative is authorized to execute and deliver to the Underwriter a certificate in the
customary form respecting the finality of the Preliminary Official Statement for purposes of Rule
15c(2)-12.
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The Board further authorizes the preparation of a final Official Statement (the
"Official Statement"} to be substantially derived from the Preliminary Official statement. An
Authorized Representative shall, for and in the name and on behalf of the County, execute and
deliver the Official Statement to the Underwriter for use and distribution in connection with the
offering and sale of the Refunding Certificates to investors.
5. Attestations. The Clerk is hereby authorized and directed to attest the signatures
of the Authorized Representatives 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 Site Lease, the
Justice Facility Lease, the Sale Agreement, the Equipment Lease, the Trust Agreement, the
Purchase Contract, the Continuing Disclosure Certificate and the Refunding Escrow Agreement.
6. Additional Penalties on Fines for Criminal and Parking Offenses. Resolutions
No. 91-120, 91-121, 91-123 and 93-180 are hereby incorporated by reference.
7. Distribution of Certified Copies of this Resolution. The Board hereby instructs
the Clerk to transmit, on the business day next following the date of the adoption of this
Resolution, a copy of this Resolution to the Clerk of each court in the County.
8. Motor Vehicle License Fees. The Board hereby reaffirms its election, first stated
in Resolution No. 93-180, pursuant to Government Code Section 25350.55, to guarantee the
Base Rental Payments to be made by the County under the Justice Facility Lease and authorizes
and directs the Auditor-Controller of the County to notify the Controller of the State of
California of such election, which notice shall include a schedule of the Base Rental Payments to
be made by the County under the Justice Facility Lease and shall identify a trustee appointed by
the County to effectuate the payment provisions pursuant to such guarantee.
9. Other Actions. The Authorized Representatives and each of them 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 the
sale, execution and delivery of the Refunding Certificates and otherwise to carry out, give effect
to and comply with the terms and intent of this Resolution, the Refunding Certificates, the Site
Lease, the Justice Facility Lease, the Sale Agreement, the Equipment Lease, the Trust
Agreement, the Assignment Agreement, the Purchase Contract, the Continuing Disclosure
Certificate, the Preliminary Official Statement and the Official Statement. Such actions
heretofore taken by such Authorized Representatives are hereby ratified, confirmed and
approved.
10. Effect. This Resolution shall take effect immediately upon its passage.
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PASSED AND ADOPTED by the Butte County Board of Supervisors this 22nd day of
Apri12003 by the following vote:
AYES: Supervisors Dolan, Houx, Josiassen, Yamaguchi and Chair Beeler
NOES: None
ABSENT: None
NOT VOTING: None
R. J. BEE ER, Chair
Butte County Board of Supervisors
ATTEST:
PAUL MCINTOSH, Chief Administrative Officer
And Clerk of the Board of Supervisors
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"beputy
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