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Consent-General Government # 9.
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| Board of Supervisors |
County Administrator |
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| Subject |
| Adopt Reimbursement Resolution for current and forthcoming capital improvement project expenditures, should the County pursue tax-exempt bond financing for capital project implementation. (No general fund impact) (Nunes) |
| Recommended Action |
| Adopt Reimbursement Resolution for current and forthcoming capital improvement project expenditures, should the County pursue tax-exempt bond financing for capital improvement implementation. |
| Strategic Plan Goal(s) |
| Operational Excellence |
| Reason for Recommended Action/Background |
In October, 2017, the Board received and approved the County of Yolo Capital Improvement Plan for the fiscal years ending 2018-2022. As part of the Capital Improvement plan, the Board identified several emerging projects that were on the Board's capital project outlook. These projects were not at the point of readiness for inclusion in the August, 2017 bond sale which financed the Monroe Detention Facility, Leinberger Detention Facility, Historic Courthouse and Library Archives. Prior to the bond sale the County should perform a reimbursement resolution to allow reimbursement of any preliminary or construction costs incurred on the capital projects prior to the bond sale.
In the most recent Capital Improvement Plan, there are certain emerging projects or projects that have incurred preliminary expenditures including the Yolo Library and the potential for a purchase agreement related to certain Health & Human Services facilities that the County is negotiating to purchase which the County currently leases in Woodland and West Sacramento. Part of the cost of these projects may be financed in the future by tax-exempt bond proceeds. In order to provide flexibility for funding these projects in the future, the Capital Improvement Committee determined it would be prudent at this time to complete a reimbursement resolution.
Attachment A provides an explanation of the rules of a reimbursement resolution in a memo from bond counsel, Orrick, Herrington & Sutcliffe, LLP of San Francisco utilized on the last capital project financing. Any expenditure on the projects listed in the resolution, within the scope of the project description as "construction and improvements of certain capital improvement projects" could be reimbursed to the County, at the County's discretion, from the bond proceeds. The reimbursement resolution can include those expenses that occurred 60 days prior to the reimbursement resolution being adopted by the Board, or those expenses incurred after adoption of the resolution, but before the County is in receipt of the bond proceeds. All costs incurred on the above named projects since July 27, 2018 until a bond issuance that may occur, would be reimbursable to the County from the proceeds of the tax-exempt bond.
Should the County take a different approach to fund these projects, the reimbursement resolution would become null without further action. The adoption of the resolution is recommended at this time to preserve the County's ability to reimburse itself from tax-exempt bond proceeds for the costs associated with the named projects, therefore staff recommends the Board adopt the reimbursement resolution found in Attachment B. |
| Collaborations (including Board advisory groups and external partner agencies) |
| The Capital Improvement Committee includes standing representation from the County Administrator's Office, the Department of Financial Services, and the General Services department. The Committee Chair reports regularly to the Board's Capital Investment Committee. |
| Competitive Bid Process |
| Not applicable. |
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