HomeMy WebLinkAboutReso 2005-103
e
e
e
RESOLUTION NO. 2005-103
(AGENCY RESOLUTION NO. 1905)
JOINT RESOLUTION OF THE CITY COUNCIL AND THE
REDEVELOPMENT AGENCY OF THE CITY OF CHULA
VISTA WAIVING THE CONSULTANT SELECTION
PROCESS AS IMPRACTICAL AND APPROVING AN
AGREEMENT WITH EJ. DE LA ROSA & CO. AS
UNDERWRITERS FOR THE REFUNDING OF THE CITY OF
CHULA VISTA REDEVELOPMENT AGENCY 1994 SENIOR
TAX ALLOCATION BONDS, SERIES A; WAIVING THE·
CONSULTANT SELECTION PROCESS AND APPROVING
THE FIRST AMENDMENT TO THE AGREEMENT WITH
HARRELL & COMPANY ADVISORS, LLC TO SERVE AS
FINANCIAL ADVISORS; AND AUTHORIZING THE MAYOR
TO EXECUTE THE CONTRACTS
WHEREAS, on September 20, 1994, the Redevelopment Agency (the "Agency")
approved a resolution authorizing the issuance of the 1994 Senior Tax Allocation Refunding
Bonds, Series A (the "Bonds") to advance refund the 1986 Tax Allocation Bonds previously
issued by the Agency for the Bayfront/Town Centre I Redevelopment Project Area; and
WHEREAS, as of December 31,2004, there was $12.9 million in outstanding bonds with
a net interest cost of 8.17% and a final maturity date of 2024; and
WHEREAS, the Bonds, are callable on September 1,2005 and can be refunded 90 days
prior, or June 1,2005; and
WHEREAS, based on preliminary research conducted by Harrell & Co., LLC ("Harrell
& Co.") Advisors, it appears that the Agency would save approximately $185,000 per year on its
annual debt service payments as a result of a refunding under current market conditions with an
assumed interest rate of 4.93%; and
WHEREAS, Agency financing is complex in nature due to various project areas, long
term revenue projections and rating agency coordination; and
WHEREAS, Harrell & Co. principal, Suzanne Harrell, has obtained an in-depth
understanding of City and Agency financing matters through worked performed for the City and
the Agency during the past five years, including serving as financial advisor on the 2000 Tax
Allocation Bonds, preparing the Agency's Financial Plan in 2000 and reviewing outstanding
debt to determine viable candidates for refinancing; and
WHEREAS, Harrell & Co.'s prior experience and extensive knowledge of City and
Agency bond financing matters makes it uniquely qualified to serve as the financial advisor on
refunding the Bonds; and
WHEREAS, E.J. De La Rosa & Co. ("De La Rosa") is qualified to serve as the
underwriter for refunding the Bonds, in that, it ranks among the top underwriters of California
Municipal bonds, it has served as senior manager on 19 redevelopment financings in California
over the last four years and one of its underwriters, Raul Amezcua, has experience as an
underwriter for the San Diego Port Authority; and
Resolution 2005-103
Page 2
WHEREAS, applying the City's competitive bid process to the selections of a financial
advisor and an underwriter for the refunding would be impractical because of the short time
frame in which the City and Agency must act to take advantage of the cost savings available
under current interest rates; and
WHEREAS, it is in the City's best interest to waive the competitive bid process in
accordance with Chula Vista Municipal Code 2.56.070.B3, in order to proceed with the
refunding in a timely manner and take advantage of the current favorable interest rates.
NOW, THEREFORE, BE IT RESOLVED, that the City Council and the Redevelopment
Agency of the City of Chula Vista adopt the resolution waiving the consultant selection process
as impractical and approving an agreement with E.J. De La Rosa & Co. as underwriters for the
refunding of the City of Chula Vista Redevelopment Agency 1994 Senior Tax Allocation Bonds,
Series A; waive the consultant selection process and approve the first amendment to the
agreement with Harrell & Company Advisors, LLC to serve as financial advisors.
BE IT FURTHER RESOLVED, that the City Council and Redevelopment Agency of the
City of Chula Vista authorize the Mayor to execute the contracts on behalf of the City of Chula
Vista.
Presented by
Approved as to form by
~Jv.;:: If" badr¡¡" , .
Mari Kachadoorian
Finance Director
~X'0'(\\\ ~~\)~\\
Ann Moore
City Attorney/Agency Counsel
e
Resolution 2005-103
Page 3
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 22nd day of March, 2005, by the following vote:
AYES:
Councilmembers:
Castaneda, Davis, McCann, and Rindone
NAYS:
Councilmembers:
None
ABSENT:
Councilmembers:
Padilla
ATTEST:
lLlL
~~~
.J¢:V Susan Bigelow, MMC, City Clerk
~
e
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. 2005-103 was duly passed, approved, and adopted by the City Council at a
regular meeting of the Chula Vista City Council held on the 22nd day of March, 2005.
Executed this 22nd day of March, 2005.
~
~ Susan Bigelow, MMC, City Clerk
~
---
--
e