Agenda

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Regular-Affiliated Agencies # 28.

Board of Supervisors

Meeting Date:	06/04/2019
Brief Title: Approve Yolo County Financing Corporation financing acquisition of HHSA Facility
From:	Chad Rinde, Chief Financial Officer, Yolo County Financing Corporation
Staff Contact:	Chad Rinde, Chief Financial Officer, Yolo County Financing Corporation, x8050
Supervisorial District Impact:

Subject

Adopt a resolution of the Yolo County Financing Corporation approving the form of and authorizing the execution and delivery of a Site Lease, a Lease-Purchase Agreement and an Assignment Agreement, and authorizing certain additional actions for the acquisition of a Health and Human Services Agency facility at 500A Jefferson Boulevard in West Sacramento. (No general fund impact) (Rinde)

Recommended Action

Adopt a resolution of Yolo County Financing Corporation approving the form of and authorizing the execution and delivery of a Site Lease, a Lease-Purchase Agreement and an Assignment Agreement and authorizing certain additional actions for the acquisition of a Health and Human Services Agency facility at 500A Jefferson Boulevard in West Sacramento.

Strategic Plan Goal(s)

Operational Excellence

Reason for Recommended Action/Background

Background on Corporation

The Financing Corporation is the vehicle that is being used to facilitate the issuance of the debt on behalf of the County, and is a required intermediary in order to use Lease financing as a means of debt issuance.

The officers of the Financing Corporation are the Chair of the Board of Supervisors as Chief Executive Officer, County Administrator as the Secretary and the Chief Financial Officer of the County as Chief Financial Officer of the Yolo County Financing Corporation.

Transaction Details
In the transaction, the Corporation will lease from the County of Yolo the property located at 120 West Main (Woodland) in exchange for the Corporation paying to the County a one-time upfront lease payment equal to the borrowing amount (not-to-exceed $4.25 million). The Corporation will obtain these funds from the lender (Zions Bancorporation). The County will lease-back the facility from the Corporation and make lease payments equal to the payments required to repay the borrowing. The Corporation will assign its rights to these payments to the lender.

The recommended actions provide authority to the officials within the Corporation to complete the financing transaction.

Collaborations (including Board advisory groups and external partner agencies)

The Department of Financial Services collaborated with the County Administrator's Office, General Services Department, Health and Human Services Department, Government Financial Strategies Inc (as financial advisor), Parker & Covert (as bond counsel), and Hilltop Securities (as placement agent) in coming to the recommended action.

The County Debt Committee reviewed the plan of finance at the January 8, 2019 Board meeting. The County Debt Committee was also informed in May, 2019 of the plan to use Private Placement as the optimal method of finance to complete the transaction.

Competitive Bid Process

All stages of the financing were competitively bid as required by County procurement policy. The County has the Yolo County Financing Corporation and the Yolo County Public Agencies Financing Authority. In order to efficiently issue the debt, working with the Financial Advisor and Bond Counsel, it was determined that the Financing Corporation would be the most efficient method to complete the debt issuance.

Attachments
Att. A. Resolution
Att. B. Site Lease
Att. C. Lease Purchase
Att. D. Assignment Agreement

Form Review

Inbox	Reviewed By	Date
County Counsel	Phil Pogledich	05/30/2019 09:43 AM
Form Started By: crinde		Started On: 05/21/2019 07:26 PM
Final Approval Date: 05/30/2019