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BOARD OF SUPERVISORS
COUNTY OF BUTi'E, STATE OF CALIFORNIA
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RESOLUTION APPROVING CERTAIN ENERGY CONSERVATION MEASURES
AUTHORIZING THE EXECUTION OF AGREEMENTS, SIGNATORIES
AND MAKING OTHER DETERMINATIONS IN CONNECTION THEREWITH
WHEREAS, the Board of Supervisors of the County of Butte (the "County") is authorized
pursuant to Sections 4217. I O through 4217.18 of the California Government Code (the "Act") to enter
into energy conservation contracts pursuant to which the County may acquire and finance equipment and
services to reduce energy use or to make for a more efficient use of energy; and
WHEREAS, pursuant to the Act, the County has entered into an agreement with Aircon Energy,
Inc., (the "Aircon Contract") for the acquisition and installation of a mechanical retrofit and energy
management project (the "Project"); and
WHEREAS, the Association of Bay Area Governments offers public agencies acost-effective
tax-exempt leasing program and nominates Municipal Leasing Associates, Inc. as agent to enter into a
Lease With Option to Purchase (the "Lease"), and a Custodial and Agency Agreement (the "Custodial
Agreement") with the County in order to provide lease financing (the "Financing") far the Projects;
NOW, THEREFORE, BE IT RESOLVED by the Board of Supervisors of the County of Butte as
follows:
i n 1 The Board of Supervisors hereby finds, determines and declares as follows:
(a} The anticipated cost to the County for "Conservation Services" as defined in Section
4217.11(c) of the Act and as provided for by the Aircon Contract, the Lease and the Project will be less
than the anticipated marginal cost to the County of energy that would have been consumed by the County
in the absence of the Project.
(b) To the extent that the Aircon Contract andJor the Lease grant easements, rights-of--way
licenses, rights of access, or other rights in the real property of the County upon which the Project will be
constructed and installed, the difference, if any, between the fair rental value of such rights and the
portion of the rent under the Lease attributable to such rights, is anticipated to be offset by benefits
provided to the County under the Aircon Contract and the Lease.
(c) Funds for the payment of amounts due under the Lease are projected to be available from
funding which otherwise would have been used far the purchase of energy required by the County in the
absence of the Project.
Section 2. The Treasurer and the Purchasing Agent or thei- authorized representatives are
hereby jointly and severally authorized and directed on behalf of the County and in its name to execute
and deliver the Lease and the Custodial Agreement with such changes therein as may be approved by the
individuals executing the Lease and the Custodial Agreement, such approval to be conclusively evidenced
by the execution thereof.
Section 3. The principal amount of the Lease shall not exceed $2,730,000 and the interest
rate shall not exceed 6.15%.
Section 4. The Financing is hereby designated by this body as a qualified tax exempt obligation
for the calendar year in which the Financing is issued pursuant to Section 265(b) of the Internal Revenue
Code of 1986 (as amended) and the Treasurer is hereby authorized and directed to execute the
"Designation of Qualification" document.
Section 5. The County of Butte declares its official intent to be reimbursed from the proceeds of
the Financing approved hereby for a maximum principal amount of $2,730,000 of expenditures occuring
no earlier than sixty days prior to the adoption of this resolution. All reimbursed expeditures will be
capital expenditures as defined in Section 1.150-1(b) of the Federal Income Tax Regulations.
Section 6. The Treasurer is hereby authorized and directed to execute and attest such further
documents, instruments and certificates as he may deem necessary or advisable in order to accomplish the
purposes of this Resolution.
Section 7. All actions heretofore taken by the Treasurer, and the other officers and employees of
the County in connection with the Project and the Financing which are not inconsistent with this
Resolution are hereby approved, ratified and confirmed.
S~,tion 8. This Resolution shall take effect immediately.
PASSED AND ADOPTED by the Butte County Board of Supervisors this
June 1996, by the following vote:
11th day of
AYES: Supervisors Meyer, Dolan, Houx, Thomas and Chair McLaughlin
NOES: None
ABSENT: None
ABSTAINED: None
(~~ E ~ ~ ((' < ~ ., ~ ~, ~ 1 .
Ed McLaughlin, Chair f the
Butte County Board of Supervisors
ATTEST:
JOHN S. BLACKLOCK
Chief Administrative Officer
and Clerk of the Board
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