HomeMy WebLinkAboutRDA Reso 2005-1905
AGENCY RESOLUTION NO. 1905
AND
COUNCIL RESOLUTION NO. 2005-103
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 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; 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 I, 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 fmancing 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
Page 2
Agency Resolution No. 1905
Council Resolution No. 2005-103
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
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;
waiving the consultant selection process and approving 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
Ú-~~
Ann Moore
City Attorney and Agency Counsel
Page 3
Agency Resolution No. 1905
Council Resolution No. 2005-103
PASSED, APPROVED and ADOPTED BY THE REDEVELOPMENT AGENCY OF THE
CITY OF CHULA VISTA, CALIFORNIA this 22nd day of March, 2005 by the following vote:
AYES:
Members Castaneda, Davis, McCann, and Chair/Mayor Padilla
NOES:
None
ABSENT:
Member Rindone
ABSTENTIONS:
None
4Qd(
Chairman
ATTEST:
~~~F
Executive Secretary
STATE OF CALIFORNIA)
COUNTY OF SAN DIEGO) ss:
CITY OF CHULA VISTA)
I, Laurie Madigan, Executive Secretary to the Redevelopment Agency of the City of Chula Vista,
California DO HEREBY CERTIFY that the foregoing is a full, true and correct copy of Agency
Resolution No. 1905, City Council Resolution No. 2005-103, and that the same has not been
amended or repealed.
Dated: March 22, 2005
~~
. ~
Laurie Madigan
Executive Secretary
.