Agenda

Return

SD. 5

To:	Board of Supervisors
From:	David Twa, County Administrator
Date:	May 12, 2009

Contra

Costa

County

Subject:

2009 SERIES A LEASE REVENUE BONDS (Consider with Item SD.3)

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 05/12/2009

APPROVED AS RECOMMENDED

OTHER

Clerks Notes:

VOTE OF SUPERVISORS

AYE:

John Gioia, District I Supervisor
Gayle B. Uilkema, District II Supervisor
Mary N. Piepho, District III Supervisor
Susan A. Bonilla, District IV Supervisor
Federal D. Glover, District V Supervisor

Contact:	Lisa Driscoll, County Finance Director, 335-1023
cc:	Stephen Ybarra, Auditor-Controller William Pollacek, Treasurer-Tax Collector Katherine Andrus, Deputy County Counsel

I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown.
ATTESTED: May 12, 2009
David Twa,

BY:	, Deputy

RECOMMENDATION(S):

HEARING, pursuant to Section 6586.5 of the Government Code of the State of California, in connection with plans by the County of Contra Costa Public Financing Authority to issue Lease Revenue Bonds (Capital Projects Program), 2009 Series A in an amount not to exceed $31 million; and

ADOPT Resolution number 2009/207, approving the issuance by the County of Contra Costa Public Financing Authority of Lease Revenue Bonds (Capital Projects Program), 2009 Series A in a principal amount not to exceed $31,000,000 to finance various capital projects, authorizing the forms of and directing the execution and delivery of a Trust Agreement, a Site Lease, a Sublease, a Bond Purchase Contract and related financing documents; and authorizing the taking of necessary actions and the execution of necessary documents in connection therewith.

FISCAL IMPACT:

Estimated costs and sources of funding for the projects to be financed have been previously approved by the Board of Supervisors and meet the County’s newly established Debt Management Policy. The amortization term is approximately 15 years with level debt service. The maximum principal amount for 2009 Series A is $31,000,000. The uses of bond proceeds are for acquisition, construction, improvement, and/or equipping of: Central County Employment and Human Services Department (300, 400, and 500 Ellinwood Way, Pleasant Hill), Employment and Human Services Building (4545 Delta Fair Blvd, Antioch), and the Martinez Health Clinic (2500 Alhambra Ave., Martinez).

BACKGROUND:

Last year, the County began the process to issue lease revenue bonds for several approved County projects. When the municipal bond market essentially closed in the midst of the commercial banking and financial crisis, it was decided it would be advantageous to the County to wait for better market conditions before issuing its lease revenue bonds. Since that time, market conditions have improved and the County issued requests for proposals (RFP) from underwriters. Based upon an evaluation of funding proposals submitted through the RFP process, the County has determined that a private placement of the lease revenue bonds with Banc of America Public Capital Corp is the most cost effective plan of finance. The term of the bonds will be approximately fifteen years. The approximate true interest cost will be 4.50% and the pricing and closing of the transaction will occur by June 30, 2009.

The 2009 Series A issue will provide new money for all or a portion of the cost of the following capital improvements, but not limited to, the acquisition, construction, improvement, and/or equipping of:

Series A Projects	Approximate Financed Cost

Central County Employment and Human Services Department 300, 400, and 500 Ellinwood Way, Pleasant Hill	19,500,000
Employment and Human Services Building 4545 Delta Fair Boulevard, Antioch	8,300,000
Martinez Health Clinic 2500 Alhambra Avenue, Martinez	2,400,000
	$30,200,000

CLERK'S ADDENDUM

CLOSED the hearing and adopted the recommendations.