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BOARD OF SUPERVISORS
COUNTY OF BUTTE, STATE OF CALIFORNIA
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RESOLU'T'ION APPROVING THE FORMS OF A SITE LEASE, A
FACILITIES LEASE, A TRUST AGREL+'MEN 1, A REMI'T'TANCE
AGREEMENT, A PURCHASE CONTRACT AND A CONTINUING
DISCLOSURE CERTIFICATE, AUTHORIZING CHANGES THERETO
AND EXECUTION AND DELIVERY THEREOF 'I'O THE OTHER
PARTIES THERE'1'O; APPROVING A PRELIMINARY OFFICIAL
STATEMENT, THE DELIVERY THEREOF TO THE UNDERWRI'T'ER,
AND THL+' PREPARATION, EXECUTION AND DELIVERY TO THE
UNDERWRITER OF AN OFFICIAL S'T'ATEMENT TO BE
SUBSTANTIALLY DERIVED FROM THE PRELIMINARY OFFICIAL
STATEMENT; AUTHORIZING AND DIRECTING CERTAIN ACTIONS
IN CONNECTION THEREWITH
WHEREAS, the County of Butte, Califarnia (the "County") is a member of the
California Statewide Communities Development Authority (the "Authority"), a joint exercise of
powers authority duly organized and existing under and pursuant to the provisions of Articles 1
through 4 (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 of the
Government Code of the State of California (the "Act") and is authorized pursuant to Article 4
{commencing with Section 6584) and certain other provisions of the Act and other laws of the
State of California (collectively, the "Bond Law") and the Amended and Restated Joint Exercise
of Powers Agreement, dated as of June 1, 1988 (the "Agreement"), by and among various cities,
counties and special districts; and
WHEREAS, pursuant to Article 4 of Chapter 5 of Division 7 of Title 1 of the
Government Code of the State of California (Section 6500 et seq.) (the "Act") and the
Agreement, the Authority is authorized to issue bonds for financing working capital, liability and
other insurance needs whenever there are significant public benefits; and
WHEREAS, 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 is authorized
pursuant such laws to enter into certain agreements for the purpose of implementing the F~mding
Program (as defined below); and
WHEREAS, the County desires to establish and maintain a program of self-insurance for
certain of its employee benefit programs, including worker's compensation insurance benefits;
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WHEREAS, the County desires to fund certain worker's compensation claims of eligible
County employees and their dependents (the "Employee Claim Payments"), on behalf of the
County, for the next forty-two (42) months (the "Funding Program"); and
WHEREAS, this Board of Supervisors of the County finds that the financing of the
Funding Program results in significant public benefits, in the form of employment benefits from
undertaking the financing of the Funding Program in a timely fashion; and
WHEREAS, the County has requested the Authority to assist financing the Funding
Program by providing for the execution, sale and delivery of the Notes (as defined herein); and
WHEREAS, in furtherance of providing financing for the Employee Claim Payments,
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 October 1, 2004:
a. a Site Lease, between the County and the California Statewide
Communities Development Authority (the "Authority") (the "Site Lease"), pursuant to
which the County will lease to the Authority the property located on Assessor's Parcel
Nos. 031-020-039, 031-020-020, 031-020-023 & 031-020-028 with all improvements and
structures thereon (the "Leased Property"};
b. a Facilities Lease, between the County and the Authority {the "Facilities
Lease"), pursuant to which the County will agree to lease the Leased Property from the
Authority and to pay certain Base Rental Payments and Additional Payments (as defined
in the Facilities Lease);
c. a Remittance Agreement relating to the California Statewide Communities
Development Authority Butte County Taxable Workers' Compensatian Funding Notes,
Series 2004 (the "Notes"), between the County and the Authority (the "Remittance
Agreement"), pursuant to which the County will pay the Authority Remittance Payments
and Additional Payments (as defined in the Remittance Agreement) in order to facilitate
the making of Employee Claim Payments;
d. a Trust Agreement relating to the Notes (the "Trust Agreement"), between
the Authority and a trustee to be determined (the "Trustee"), providing, among other
things, for application of the proceeds of sale of the Notes and the application of the Base
Rental Payments and Additional Payments under the Facilities Lease and Remittance
Payments and Additional Payments under the Remittance Agreement to pay the principal
of and the interest on the Notes;
e. a Purchase Contract (the "Purchase Contract"), among the Authority, the
County and the Underwriter, pursuant to which the Authority will agree to sell and the
Underwriter will agree to purchase the Notes, subject to the terms and conditions thereof;
f, a Preliminary Official Statement relating to the Notes (the "Preliminary
Official Statement"), providing certain information about the Notes and the Trust
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agreement, deemed material to an informed investment decision by prospective
purchases of the Notes; and
g. a Continuing Disclosure Certificate (the "Continuing Disclosure
Certificate") to be delivered to the Underwriter concurrently with delivery of the Notes to
enable the Underwriter to comply with provisions of Rule 1 Sc(2)-12 of the Securities and
Exchange Commission ("Rule i5c(2)-12"); and
WHERF,AS, the County desires to provide for appropriation for Base Rental Payments
and Additional Payments under the Facilities Lease for Fiscal Year 2004-OS in order to provide
for payment of insurance premiums ("Premium Costs") as part of the Funding Program; and
WHEREAS, the County and the Authority wish to provide for the implementation of the
Funding Program through execution, sale and delivery to the Underwriter of the Notes; and.
WHEREAS, all acts, conditions and thins 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 Funding Program authorized hereby do exist, have happened and 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 Funding Program for the purpose, in the manner and upon the terms herein
provided; and
NOW, THEREFORE, the Board of Supervisors of the County of Butte, California, does
hereby resolve, declare and determine as follows:
i. Findings. The Board hereby specifically finds and declares that the actians
authorized hereby constitute and are true and correct with respect to the public affairs of the
County, that the statements, findings and determinations of the County set forth in the preambles
of the documents approved herein are true and correct, and that the issuance of the Notes by the
Authority and the financing of the Funding Program will result in employment benefits from
undertaking the financing of the Funding Program in a timely fashion producing significant
public benefits and the Board hereby declares its intention of implementing the Funding
Program.
2. Documents Approved. The forms of the Site Lease, the Facilities Lease, the
Remittance Agreement, the Trust Agreement, the Purchase Contract and the Continuing
Disclosure Certificate, on file with the Clerk, are hereby approved, and the County
Administrative Officer {the "County Administrative Officer") or any designee of the County
Administrative Officer (the "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 chances 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 true interest cost payable with respect to the Notes does not exceed 4.60°Io and the
combined aggregate principal amount of the Notes does not exceed $21,000,000.
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3. Preliminary Official Statement. The form of Preliminary Official Statement
relating to the Notes, 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 Notes.
In connection with such delivery to the Underwriter, the Authorized
Representative is authorised 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.
The Board fuT-ther authorizes the preparation of final Official Statement (the
``Official Statement") to be substantially derived from the Preliminary Official Statement. An
Authorized Representative shall, far 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 Notes to investors.
4. Appropriation of Rental Payments under the Facilities Lease. The Board hereby
appropriates fc-om available funds of the County for the payment of Base Rental Payments and
Additional Payments under the Facilities Lease for Fiscal Year 2004-OS in order to provide for
payment of Premium Costs as part of the Funding.
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
Facilities Lease, the Remittance Agreement, the Trust Agreement, the Purchase Contract and the
Continuing Disclosure Certificate.
6. Appointment of Program Developer and Consultant. The firm of Strategic
Funding Solutions LLC ("SFS") is hereby appointed as program developer and consultant for the
Notes, as described in an agreement by and between the County and SFS on file with the County
(the "SFS Agreement"). The Chief Administrative Officer of the County is hereby authorized
and directed to execute and deliver the SFS Agreement on behalf of the County.
7. Appointment of Bond Counsel and Disclosure Counsel. The firm of Orrick,
Herrington & Sutcliffe LLP (`Bond Counsel" and "Disclosure Counsel") is hereby appointed
bond counsel and disclosure counsel for the Notes in accordance with that certain engagement
letter dated January 21, 2004 on file with the Clerk of the Board. The Chief Administrative
Officer of the County is hereby authorized and directed to execute and deliver said engagement
letter on behalf of the County.
8. Appointment of Underwriter. The firm of Stone & Youngberg LLC
("Underwriter") is hereby appointed underwriter for the Notes. The Notes will be purchased
pursuant to the Purchase Contract.
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
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sale, execution and delivery of the Notes and otherwise to carry out, give effect to and comply
with the terms and intent of this Resolution, the Notes, the Site Lease, the Facilities Lease, the
Remittance Agreement, the Trust 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.
PASSED AND ADOPTED by the Butte County Board of Supervisors this 28th day of
September 2004 by the following vote:
AYES: Supervisors Dolan, Houx, Josiassen, Yamaguchi and Chair Beeler
NOES: None
ABSENT: None
NOT VOI'INCi: None
R. J. BEELER, Chair
Board of Supervisors
ATTEST:
PAUL MCINTOSH, Chief Administrative Officer
and Clerk of the Board of Supervisors
,,
Deputy.
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