HomeMy WebLinkAboutReso 2016-264RESOLUTION NO. 2016-264
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA AUTHORIZING THE CITY MANAGER OR
HIS DESIGNEE TO NEGOTIATE LEASE PURCHASE
AGREEMENTS FOR EQUIPMENT AS APPROVED WITHIN
THE INFRASTRUCTURE, FACILITIES AND EQUIPMENT
EXPENDITURE PLAN; WAIVING THE COMPETITIVE
FORMAL BID REQUIREMENT AND AUTHORIZING THE
CITY MANAGER OR HIS DESIGNEE TO NEGOTIATE AND
EXECUTE TWO-PARTY AGREEMENTS BETWEEN THE
CITY OF CHULA VISTA AND HARRELL AND COMPANY
ADVISORS, LLC TO PROVIDE FINANCIAL ADVISORY
SERVICES AND BETWEEN THE CITY OF CHULA VISTA
AND J.P. MORGAN CHASE TO PROVIDE UNDERWRITING
SERVICES FOR THE PROPOSED ISSUANCE OF
TRANSACTIONS AND USE TAX REVENUE BONDS
WHEREAS, on August 2, 2016, the City Council approved Ordinance No. 3371
("Ordinance") adding Chapter 3.33 to Title 3 of the Chula Vista Municipal Code establishing a
temporary one-half cent General Transactions and Use Tax to be administered by the State Board
of Equalization; and
WHEREAS, the City Council adopted a spending plan expressing its intention to expend
new sales tax revenues on City Infrastructure, Facilities and Equipment (the "City Council
Intended Infrastructure, Facilities and Equipment Expenditure Plan"); and
WHEREAS, Measure `P' was placed on the ballot and subject to approval by an
affirmative, simple majority vote of the people as required by law; and
WHEREAS, on November 8, 2016, the People of the City of Chula Vista approved
Measure `P' authorizing a one-half cent sales tax on retail sales within the City for a period of
ten (10) years; and
WHEREAS, the spending plan, The City Council Infrastructure, Facilities and
Equipment Expenditure Plan ("Expenditure Plan") has been updated to reflect, where necessary,
the ratification of Measure `P'; and
WHEREAS, staff proposes to use capital lease financing to acquire capital assets
approved within the Expenditure Plan and these capital leases will generate significant savings;
and
WHEREAS, staff will return to City Council for formal approval of capital lease
financing agreements; and
Resolution No. 2016-264
Page No. 2
WHEREAS, in accordance with Section 3.33.160.13 of the Ordinance requires staff to
return to City Council within 30 days after approval of Measure `P' with financing options to
accelerate large-scale projects; and
WHEREAS, financial market conditions appear favorable for the issuance of
Transactions and Use Tax Revenue Bonds; and
WHEREAS, to move forward with the issuance of Transactions and Use Tax Revenue
Bonds the City requires financial advisory and underwriting services; and
WHEREAS, Chula Vista Municipal Code Section 2.56.070 (B) (3) authorizes the City
Council waiver of the formal competitive bid process; and
WHEREAS, a waiver is requested for Harrell and Company Advisors, LLC. for financial
advisory services and J.P. Morgan Chase for underwriting services for the proposed issuance of
Transactions and Use Tax Revenue Bonds; and
WHEREAS, the City's interests would be materially better served by waiving the
competitive bid process and awarding the contract to Harrell and Company Advisors, LLC. and
J.P. Morgan Chase as both these firms are highly qualified, both are uniquely familiar with
current City finances, and these traits will allow the City to move quickly and confidently to take
advantage of the current market conditions and accelerate the large-scale projects within the
Expenditure Plan; and
WHEREAS, future matters related to the financing of the Transactions and Use Tax
Revenue Bonds will be brought to City Council for formal approval that memorializes the
anticipated amounts of the revenue bonds and commensurate fee schedules of all vendors
involved.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista
that it does hereby authorize:
• The City Manager or his designee to negotiate lease purchase agreements for
equipment as approved within the Infrastructure, Facilities and Equipment
Expenditure Plan for submittal to City Council for final approval; and
• Waive the competitive formal bid requirement and authorize the City Manager or
his designee to negotiate and execute two party agreements on City Attorney
approved forms for the proposed issuance of Transactions and Use Tax Revenue
Bonds between:
o The City of Chula Vista and Harrell and Company Advisors, LLC. to
provide financial advisory services; and
o The City of Chula Vista and J.P. Morgan Chase to provide underwriting
services.
Presented by
David Bilby, MSBA, CPFO
Director of Finance/Treasurer
Resolution No. 2016-264
Approved as to form by
len lZ G,o ogins
Attorney
Page No. 3
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 6th day of December 2016 by the following vote:
AYES: Councilmembers: Aguilar, Bensoussan, McCann, Miesen, and Salas
NAYS: Councilmembers: None
ABSENT: Councilmembers: None
rlas, Mayor
ATTEST:
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Donna R. NUrris, CMC, City Clerk
STATE OF CALIFORNIA
COUNTY OF SAN DIEGO
CITY OF CHULA VISTA
I, Donna R. Norris, City Clerk of Chula Vista, California, do hereby certify that the foregoing
Resolution No. 2016-264 was duly passed, approved, and adopted by the City Council at a
regular meeting of the Chula Vista City Council held on the 6th day of December 2016.
Executed this 6th day of December 2016.
Donna R. k6is, A4C, City Clerk