HomeMy WebLinkAboutCVRC Reso 2006-027
CVRC RESOLUTION NO. 2006-027
RESOLUTION OF THE CHULA VISTA REDEVELOPMENT
CORPORATION RECOMMENDING THAT THE CITY COUNCIL
AND THE REDEVELOPMENT AGENCY OF THE CITY OF
CHULA VISTA WAIVE THE CONSULTANT SELECTION
PROCESS AND APPROVE A FIRST AMENDMENT TO THE
AGREEMENT WITH E.J. DE LA ROSA & CO. AS
UNDERWRITERS FOR THE REFUNDING OF THE CITY OF
CHULA VISTA REDEVELOPMENT AGENCY 1994
SUBORDINA TE TAX ALLOCATION REFUNDING BONDS,
SERIES C AND 1994 SENIOR TAX ALLOCATION REFUNDING
BONDS, SERIES D; WAIVE THE CONSULTANT SELECTION
PROCESS AND APPROVE THE SECOND AMENDMENT TO
THE AGREEMENT WITH HARRELL & COMPANY ADVISORS,
LLC TO SERVE AS FINANCIAL ADVISORS
WHEREAS, on September 20, 1994, the Redevelopment Agency of the City of Chula
Vista (the "Agency") approved a resolution authorizing the issuance of the 1994 Senior Tax
Allocation Refunding Bonds, Series A, 1994 Senior Tax Allocation Refunding Bonds, Series B
(Taxable), 1994 Subordinate Tax Allocation Refunding Bonds, Series C and 1994 Senior Tax
Allocation Refunding Bonds, Series D (collectively the " 1994 Bonds") to advance refund the
1986 Tax Allocation Bonds previously issued by the Agency for the BayfrontlTown Centre I
Redevelopment Project Area; and
WHEREAS, the 1994 Senior Tax Allocation Refunding Bonds, Series D, were issued to
refund the 1994 Senior Tax Allocation Refunding Bonds, Series B (Taxable) in 1996 and the
1994 Senior Tax Allocation Refunding Bonds, Series B (Taxable) are no longer outstanding; and
WHEREAS, as of June 1, 2006, there was $24.4 million in outstanding 1994 Bonds with
an average net interest cost of8% and a final maturity date of2024; and
WHEREAS, the 1994 Series A Bonds and the 1994 Series D Bonds are callable on
September 1, 2006, and the 1994 Series C Bonds are callable on November 1, 2006 and all
Bonds can be refunded 90 days prior to such dates; and
WHEREAS, based on preliminary research conducted by Harrell & Co. Advisors, LLC
("Harrell & Co."), it appears that the Agency would save approximately $500,000 per year on its
annual debt service payments as a result of a refunding under current market conditions with an
assumed interest rate of 5%; 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
CVRC Resolution No. 2006-027
Page 2
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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 1994 Bonds because 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 Chula Vista Redevelopment
Corporation recommend that the City Council and the Redevelopment Agency of the City of
Chu1a Vista waive the consultant selection process and approve the First Amendment to the
Agreement with E.J. De La Rosa & Co. as underwriters for the refunding of the City of Chula
Vista Redevelopment Agency 1994 Bonds.
BE IT FURTHER RESOLVED, that the Chula Vista Redevelopment Corporation
recommending that the City Council and the Redevelopment Agency of the City of Chula Vista
waive the consultant selection process and approve the Second Amendment to the Agreement
with Harrell & Company Advisors, LLC to serve as financial advisors for the refunding of the
City of Chula Vista Redevelopment Agency 1994 Bonds.
Presented by
Approved as to form by
~~3~
Ann Moore
General Counsel
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CVRC Resolution No. 2006-027
Page 2
PASSED, APPROVED, and ADOPTED by the Chula Vista Redevelopment Corporation
of the City of Chula Vista, this 22nd day of June 2006, by the following vote:
AYES:
Directors: Desrochers, Lewis, McCann, Paul, Rindone, Rooney, and
Padilla
NAYS:
Directors: None
ABSENT:
Directors: Chavez
ABSTAINED: Directors: Castaneda
STATE OF CALIFORNIA
COUNTY OF SAN DIEGO
CITY OF CHULA VISTA
)
)
)
ATTEST:
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Dana M. Smith, Secretary
I, Dana M. Smith, Secretary of the Chula Vista Redevelopment Corporation of the City of Chula
Vista, California, do hereby certify that the foregoing CVRC Resolution No. 2006-027 was duly
passed, approved, and adopted by the Chula Vista Redevelopment Corporation at a regular
meeting of the Chula Vista Redevelopment Corporation held on the 22nd day of June 2006.
Executed this 22nd day of June 2006.
Q.-?f( _#
Dana M. Smith, Secretary