HomeMy WebLinkAboutRDA Reso 2008-1988
RDA RESOLUTION NO. 2008-1988
RESOLUTION OF 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
UNDERWRITER FOR THE REFUNDING OF THE
REDEVELOPMENT AGENCY 2000 TAX ALLOCATION
BONDS; WAIVING THE CONSULTANT SELECTION
PROCESS AS IMPRACTICAL AND APPROVING AN
AGREEMENT WITH HARRELL & COMPANY ADVISORS,
LLC TO SERVE AS FINANCIAL ADVISOR; AND
AUTHORIZING THE CHAIR TO EXECUTE THE
CONTRACTS
WHEREAS, in May 2000, the CitylRedevelopment Agency approved the issuance of
$17.0 million in Tax Allocation Bonds to repay outstanding inter-fund loans, raise capital for
projects, eliminate deficit balances in the Bayfront/TC I project areas as well as fund staff and
operating costs on an ongoing basis; and
WHEREAS, as of June 30, 2007, there was $15.5 million in outstanding bonds with a net
interest cost of 5.32% and a final maturity date of 2030; and
WHEREAS, it appears that the Agency would save approximately $40,000 per year on
its annual debt service payments as a result of a refunding under current market conditions with
an assumed interest rate of 4.4%; and
WHEREAS, Harrell & Co. is uniquely qualified to serve as the financial advisor on
refunding the Bonds because it has obtained an in-depth understanding of Agency financing
matters through work performed for the Agency during the past eight years, including serving as
financial advisor on the issuance of the 2000 Tax Allocation Bonds and the 2006 refunding of
the 1994 Senior Tax Allocation Refunding Bonds, Series A; and
WHEREAS, E.J. De La Rosa & Co., Inc. is qualified to serve as the underwriter for
refunding the Bonds because it ranks among the top underwriters of California Municipal bonds,
has extensive experience in structuring and marketing tax allocation obligations, and it served as
underwriter for the 2006 refunding of the Agency's 1994 Senior Tax Allocation Refunding
Bonds, Series A; 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 Agency must act to generate budgetary savings and cash flow savings under
current interest rates.
RDA Resolution No. 2008-1988
Page 2
NOW, THEREFORE, BE IT RESOLVED, that the Redevelopment Agency of the City
ofChula Vista does hereby:
1. Waive the consultant selection process as impractical, approve an agreement with E. J.
De La Rosa & Co. as underwriter for the refunding of the Redevelopment Agency of the
City of Chula Vista 2000 Tax Allocation Bonds, waive the consultant selection process as
impractical and approve an agreement with Harrell & Company Advisors, LLC to serve
as financial advisor.
2. Authorize the Chair of the Agency to execute the contracts on behalf of the
Redevelopment Agency of the City ofChula Vista.
Presented by
Approved as to form by
~ I~uh.~~
Maria K chadoorian
Director of Financeffreasurer
~ ~'h~
Ann Moore
General Counsel
RDA Resolution No. 2008-1988
Page 3
PASSED, APPROVED, and ADOPTED by the Redevelopment Agency of the City of
Chula Vista, California, this 22nd day of January 2008 by the following vote:
A YES: Agency Members: Castaneda, McCann, and Cox
NAYS: Agency Members: None
ABSENT: Agency Members: None
ABSTAIN: Agency Members: Rindone and Ramirez
ATTEST:
0Lf~ .
Cheryl Co, haUerson
fl~
......Eric Crockett, Secretary
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO )
CITY OF CHULA VISTA )
I, Eric Crockett, Secretary of the Redevelopment Agency of the City of Chula Vista, California,
do hereby certify that the foregoing Redevelopment Agency Resolution No. 2008-1988 was duly
passed, approved, and adopted by the Redevelopment Agency at a special meeting on the 22nd
day of January 2008.
Executed this 22nd day of January 2008.
-~~
Eric Crockett, Secretary