HomeMy WebLinkAboutAgenda Statement 1986/10/07 Item 06COUNCIL AGENDA STATEMENT
Item 6
Meeting Date 10/7/86
ITEM TITLE: Resolution 1d1 ~'~~ppointing successor marketing agent with
respect to Commercial Development Revenue Bonds (South Bay
Ambulatory Surgery Associates Project
SUBMITTED BY: Community Development Directo~
REVIEWED BY: City Manager (4/5ths Vote: Yes No X )
In April of this year the City was informed that the firm of Bancroft,
O'Connor, Cr~ilton, and Lavell, Inc. was resigning as remarketing agent for the
bonds which were issued for South Bay Ambulatory Surgery Associates on
December 31 , 1984. At the request of the City, the Golden State Sanwa Bank,
the trustee for this bond issue, was asked to propose a new remarketing
agent. The Bank has proposed the firm of O'Connor and Chilton which includes
the members of the original firm. Under the terms of the Indenture for the
bonds, the City is required to appoint a successor at the formal request of
the Bank. The Council is therefore requested to approve the firm of O'Connor
and Chilton as remarketing agent for the subject bond issue.
RECOMMENDATION: That the Council adopt the resolution appointing successor
remarketing agent with respect to Commercial Development Revenue Bonds (South
Bay Ambulatory Surgery Associates Project).
BOARDS/COMMISSIONS RECOMMENDATION: Not applicable.
DISCUSSION:
The original remarketing agent for the Surgi-Center bond issue, Bancroft,
O'Connor, Chilton and Lavell, Inc., disbanded and consequently resigned from
the responsibility as remarketing agent for the subject bond issue. The
purpose of the remarketing agent is to remarket the bonds as they become due.
The Golden State Sanwa Bank has requested the appointment of a successor
remarketing agent, O'Connor and Chilton, which includes two members of the
original firm. It is the opinion of the City's Bond Counsel, Jones Hall Hill
and White, that this firm is qualified to act as remarketing agent. The Bond
Counsel has proposed adoption of the attached resolution which should protect
the City from any 1 i abi 1 i ty which might resul t from the appointment of a new
marketing agent.
FISCAL IMPACT: There is no financial impact
The only party who might suffer injury from the
their letter of credit is at risk for any failur
FK:rd
WPC 25U4H
to the City of Chula Vista.
appointment is the Bank, since
e to remarket the bonds.
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