HomeMy Public PortalAbout2016.028 (02-02-16)RESOLUTION NO.2016.028
A- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD
APPROVING THE APPOINTMENT OF MISSION TRAIL ADVISOR, LLC
( "MTA ") TO MANAGE THE REFUNDING OF THE 2008 SERIES A
ENTERPRISE REVENUE BONDS
WHEREAS, in November 2008, the Lynwood Utility Authority issued
$9,755,000 of 2008 Series A Enterprise Revenue Bonds. The proceeds were
used to refund the Water Revenue Bonds Series 1995, finance certain
improvements to the water distribution system, finance certain capital
improvements for the City, pay the cost of the issuance of the bonds and fund a
reserve fund for the bonds; and
WHEREAS, the bonds are eligible for refunding, which will allow the City
to reduce its annual debt service payments; and
WHEREAS, a presentation was prepared by Mission Trail Advisors, LLC
( "MTA "). MTA is a Municipal Advisory firm registered with the Securities &
Exchange Commission and the Municipal Securities Rulemaking Board; and
WHEREAS, MTA provides services through two seasoned veterans of
the municipal finance industry, Mr. Lalo Trujillo and Mr. Steven Gortler, who have
over 50 years of combined municipal industry experience; and
WHEREAS, the estimated savings annually is $65,000, estimated at $1.5
million over the remaining life of the bonds; and
WHEREAS, on a Net Present Value Basis (NPV), the estimate savings is
$700,000. NPV is 8.66% of principal refinanced, which is almost three times the
3% target typically deemed in the industry as an attractive refinancing savings
level; and
WHEREAS, Lynwood Municipal Code 6- 3.13.a.3 section authorizes the
City Council to dispense with formal bidding requirements by not less than four -
fifths (4/5) vote, when the services may be acquired more economically and
efficiently through direct negotiations; and
WHEREAS, if City Council appoints MTA as the City's Municipal Advisor
to manage the refunding of the bonds, the firm will manage all aspects of the
transaction; and
WHEREAS, the fee for the services will be part of the cost of the issuance
of the bonds; and
WHEREAS, staff recommends the City Council appoint MTA as the City's
Municipal Advisor for the refunding of the 2008 Series A Enterprise Revenue
Bonds.
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NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LYNWOOD
DOES HEREBY RESOLVE AND DETERMINE AS FOLLOWS:
Section 1. The City Council by at least four -fifths (4/5) vote, hereby finds
that the services provided by MTA justify dispensing with the formal bidding
requirements per Lynwood Municipal Code section 6- 3.13.a.3 and hereby
appoints MTA as the City's Municipal Advisor for the refunding of the 2008 Series
A Enterprise Revenue Bonds.
Section 2. The Mayor is authorized to execute an agreement with MTA for
the services approved as to the form of the City Attorney. MTA will work on a
contingent basis and as such will only be paid should the City refund the 2008
Series A Enterprise Revenue Bonds. Fees will be paid from the bond proceeds.
Section 3. This resolution shall become effective immediately upon its
adoption.
Section 4 This City Clerk shall certify to the adoption of this City Council
Resolution.
PASSED, APPROVED AND ADOPTED this 2 "d day of February, 2016.
ATTEST:
Maria Quinonez,
City Clerk
APPROVED AS TO FORM:
David A. Garcia,
City Attorney
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Edwin Hernandez
Mayor
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J. Arnoldo Beltran,
City Manager
APPROVED AS TO CONTENT:
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Christ alencia,
Finance Manager
STATE OF CALIFORNIA )
) SS.
COUNTY OF LOS ANGELES )
I, Maria Quinonez, the undersigned, City Clerk of the City of Lynwood, do hereby
certify that the foregoing Resolution was passed and adopted by the City Council
of the City of Lynwood at a regular meeting held on the 2nd day of February,
2016, and passed by the following vote:
AYES: COUNCIL MEMBERS ALATORRE, SANTILLAN -BEGS,
SOLACHE, CASTRO AND HERNANDEZ
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE
��Az�' -
Maria Quinonez, City Clerk
STATE OF CALIFORNIA )
) SS.
COUNTY OF LOS ANGELES )
I, Maria Quinonez, the undersigned, City Clerk of the City of Lynwood, and the
Clerk of the City Council of said City, do hereby certify that the above foregoing is
a full, true and correct copy of Resolution No. 2016.028 on file in my office and
that said Resolution was adopted on the date and by the vote therein stated.
Dated this 2nd day of February, 2016.
ti aria - Quinonez, City Clerk
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