HomeMy WebLinkAboutReso 2003-064RESOLUTION NO. 2003-064
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA AUTHORIZING THE FINANCE DIRECTOR
TO DETERMINE THE FEASIBILITY OF REFUNDING THE
1993 TOWN CENTRE II PARKING STRUCTURE
REFUNDING CERTIFICATES OF PARTICIPATION, 1993
CERTIFICATE OF PARTICIPATION TOWN CENTRE II
PARKING STRUCTURE PHASE II, AND THE 1998 CAPITAL
LEASE WITH CAL-LEASE PUBLIC FUNDING
CORPORATION ON A NEGOTIATED BASIS; WAIVING THE
CONSULTANT SELECTION PROCESS, APPOINTING U.S.
BANCORP PIPER JAFFRAY INC. AS THE UNDERWRITER;
AND AUTHORING THE MAYOR TO EXECUTE THE
CONTRACT
WHEREAS, in March 1993, the City and Redevelopment Agency issued the 1993
Refunding Certificates of Participation for $11,285,000 to advance refund the 1987 Series of
Certificates of Participation to provide funds for the first phase of a new parking structure at the
Chula Vista Shopping Center; and there is currently $7,215,000 in outstanding bonds with an
average interest coupon of 5.2% and a final maturity date of 2012; and
WHEREAS, in December 1993, the City and Redevelopment Agency issued Certificates
of Participation to finance the second phase of the public parking garage in the Chula Vista
Shopping Center for $3,115,000 which debt service on the certificates is funded by capital lease
payments from the City's General Fund to the Agency to be repaid from future Agency revenues
and there is currently $2,140,000 in outstanding bonds with an average interest coupon of 5.07%
and a final maturity date of 2013.
WHEREAS, in 1998, the City refunded the lease-purchase financing agreement with
Cai-Lease Public Funding Corporation (Cai-Lease) for the funding of a public safety Computer
Aided Dispatch (CAD) and Mobile Data Terminal (MDT) system from Unisys Corp., an 800
MHZ communication system from Motorola, Inc., and miscellaneous heating and air
conditioning equipment and at the same time, the refunding was combined with a current
financing for the Mainframe/Fiscal System and there is currently $2,487,185 outstanding on the
lease with an average interest coupon of 5.46% and a final maturity date of 2008.
WHEREAS, the municipal banking firm of U.S. Bancorp Piper Jaffray Inc. unilaterally
brought the refunding proposal to the City for consideration, and it is proposed that the
transaction be marketed on a "negotiated" basis which negotiated sale includes the pre-selection
of an underwriter and a negotiated interest cost, based on market conditions at the time of the
sale.
WHEREAS, it is recommended that the consultant selection process be waived because:
(1) U.S. Bancorp Piper Jaffray Inc. has a strong presence in the California market and it's public
finance team specializes in City, Redevelopment Agency and housing financing to name a few
(2) in 2001, U.S. Bancorp Piper Jaffray managed or advised on issues for over I00 cities and
counties and (3) U.S. Bancorp Piper Jaffray Inc. has agreed to an underwriting fee of 1% of the
par value of the transaction, which is at the low end of the range in today's environment.
Resolution 2003-064
Page 2
NOW, THEREFORE, BE IT RESOLVED that the. City Council of the City of Chula
Vista does hereby authorize the Finance Director to determine the feasibility of refunding the
1993 Town Centre 1I Parking Structure Refunding Certificates of Participation, 1993 Certificate
of Participation Town Centre II - Parking Structure Phase II, and the 1998 Capital Lease with
Cai-Lease Public Funding Corporation on a negotiated basis.
BE IT FURTHER RESOLVED that the City does hereby waive the consultant selection
process for the reasons set forth hereinabove, appoint U. S. Bancorp Piper Jaffray Inc., as the
underwriter, and authorize the Mayor to execute the contract.
Presented by
Approved as to form by
, Robe-t W. Powell ' John M. Kaheny --
C~?'Assis :ant City Manager City Attorney
~] _ PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 18th day of February, 2003, by the following vote:
ATTEST:
Councilmembers:
Councilmembers:
Councilmembers:
AYES:
NAYS:
ABSENT:
Davis, Rindone, Saias, McCann and Padilla
None
None
Stephen eaitilla, Mayor
Susan Bigelow, City Clerk
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO )
CITY OF CHULA VISTA )
I, Susan Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing
Resolution No. 2003-064 was duly passed, approved, and adopted by the City Council at a
regular meeting of the Chula Vista City Council held on the 18th day of February, 2003.
Executed this 18th day of February, 2003.
Susan Bigelow, City Clerk