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Home My Public Portal AboutA2009-03-17LUAThis Agenda contains a brief general description of each item to be considered. Copies of the staff reports or other written documentation relating to each item of business referred to on the Agenda are on file in the Office of the City Clerk and are available for public inspection. A person who has a question concerning any of the agenda items may call the City Manager at (310) 603-0220, ext. 200. Procedures for addressing the Members of the Authority IN ORDER TO EXPEDITE LYNWOOD UTILITY AUTHORITY BUSINESS, WE ASK THAT ALL PERSONS WISHING TO ADDRESS THE AUTHORITY FILL OUT A FORM PROVIDED AT THE DOOR, AND TO TURN IT IN TO THE SECRETARY PRIOR TO THE START OF THE MEETING. FAILURE TO FILL OUT SUCH A FORM WILL PROHIBIT YOU FROM ADDRESSING THE MEMBERS OF THE AUTHORITY IN THE ABSENCE OF THE UNANIMOUS CONSENT OF THE AUTHORITY. AGENDA ITEMS ON FILE FOR CONSIDERATION AT THE REGULAR MEETING OF THE LYNWOOD UTILITY AUTHORITY TO BE HELD ON MARCH 17, 2009 5:00 P.M. COUNCIL CHAMBERS 11330 BULLIS ROAD, LYNWOOD, CA 90262 MARIA TERESA SANTILLAN PRESIDENT AIDE CASTRO VICE PRESIDENT JIM MORTON MEMBER EXECUTIVE DIRECTOR ROGER L. HALEY SECRETARY MARIA QUINONEZ 4a4YP64;? RECEIVED MAR 12 2009 CITY OF LYNWOOD CITY CLERKS OFFICE yl'? a ? ALFREDO FLORES MEMBER RAMON RODRIGUEZ MEMBER ASSISTANT CITY MANAGER- ADMINISTRATIVE & COMMUNITY SERVICES ROBERT S. TORREZ TREASURER SALVADOR ALATORRE FRED GALANTE AUTHORITY COUNSEL OPENING CEREMONIES 1. CALL TO ORDER 2. ROLL CALL OF MEMBERS Maria Santillan Aide Castro Alfredo Flores Jim Morton Ramon Rodriguez 3. CERTIFICATION OF AGENDA POSTING BY SECRETARY PUBLIC ORAL COMMUNICATIONS (Regarding Agenda Items Only) PUBLIC ORALS IF AN ITEM IS NOT ON THE AGENDA, THERE SHOULD BE-NO SUBSTANTIAL DISCUSSION OF THE ISSUE BY THE LYNWOOD UTILITY AUTHORITY, BUT LYNWOOD UTILITY AUTHORITY MEMBERS MAY REFER THE MATTER TO THE STAFF OR SCHEDULE SUBSTANTIVE DISCUSSION FOR A FUTURE MEETING. (The Ralph M. Brown Act, Government Code Section 54954.2(a) ) CONSENT CALENDAR 4. INVESTMENT OF LYNWOOD UTILITY AUTHORITY BOND FUNDS COMMENTS: On November 25, 2008, the City closed on its $9,755,000 Lynwood Utility Authority 2008 Enterprise (Water) Revenue Bonds, Series A, which refunded the 1995 Water bonds and also provided new money for Water and Sewer capital projects. The new money from the 2008 bond proceeds ($6 million) and the unspent proceeds from the 1995 refunded Water bonds as well as the soon-to-be refunded 1999 Water bond issues total approximately $8.5 million. Currently, the funds are held by the Bond Trustee, BNY Mellon Trust and are invested in a money market fund. RECOMMENDATION: Staff respectfully recommends that the Lynwood Utility Authority adopt the attached resolution entitled: "A RESOLUTION OF THE LYNWOOD UTILITY AUTHORITY AUTHORIZING THE INVESTMENT OF MONIES IN THE LOCAL AGENCY INVESTMENT FUND AND THE BUDGET AMENDMENTS NECESSARY RELATING TO THE ISSUANCE OF THE LYNWOOD UTILITY AUTHORITY 2008 ENTERPRISE REVENUE BONDS". ADJOURNMENT The Lynwood Utility Authority meetings will be posted as needed. The next meeting will be held in the Council Chambers of City Hall, 11330 Bullis Road, City of Lynwood, California. o c ?r AGENDA STAFF REPORT tiff DATE- March 17, 2009 TO: Honorable President and Members of the Lynwood Utility Authority FROM: Roger L. Haley, Chief Administrative OfficerC; PREPARED BY: Robert S. Torrez, Assistant City Manager - Admin. & Community Services SUBJECT: Investment of Lynwood Utility Authority Bond Funds Recommendation: Staff respectfully recommends that the Lynwood Utility Authority adopt the attached resolution entitled: "A RESOLUTION OF THE LYNWOOD UTILITY AUTHORITY AUTHORIZING THE INVESTMENT OF MONIES IN THE LOCAL AGENCY INVESTMENT FUND AND THE BUDGET AMENDMENTS NECESSARY RELATING TO THE ISSUANCE OF THE LYNWOOD UTILITY AUTHORITY 2008 ENTERPRISE REVENUE BONDS". Background: On November 25, 2008, the City closed on its $9,755,000 Lynwood Utility Authority 2008 Enterprise (Water) Revenue Bonds, Series A, which refunded the 1995 Water bonds and also provided new money for Water and Sewer capital projects. The new money from the 2008 bond proceeds ($6 million) and the unspent proceeds from the 1995 refunded Water bonds as well as the soon-to-be refunded 1999 Water bond issues total approximately $8.5 million. Currently, the funds are held by the Bond Trustee, BNY Mellon Trust and are invested in a money market fund. Discussion & Analysis: The City will need maximum flexibility in terms of access to the monies with the anticipation that the Enterprise will spend the money fairly quickly. In addition to the need for flexibility, the City desires to earn a higher rate of return as compared to a money market account. The City would be best served if the money is invested in the State of California Local Agency Investment Fund, or LAIF. Earnings on monies invested in LAiF for the quarter ending December AGENDA ITEM 2008 was 2.54% whereas most money market funds are earning less than 1%, due to the economic slump. LAIF is considered a relatively safe investment option, due to its size (approximately $50 billion in pooled assets) and investment strategies. Per State law, LAIF may only invest in investment grade bonds. At the request of City Manager's staff, the City Treasurer has communicated with LAW the City's desire to invest the monies with LAIF. According to LAIF, the Lynwood Utility Authority has to adopt a resolution authorizing the investment. The attached resolution will not supersede current resolutions on file with LAIF, the purpose of which is to allow the investment of monies from the Enterprise Bonds. In addition, the Council authorized the bond sale, but until the bonds were actually sold, the annual bond payments could only be estimated. Now that the bonds have been sold, staff has the actual annual bond payment amounts. As such, staff is also requesting that Council approve the budget adjustments required to make the semi-annual bond payments of $401,582.40. The 2008 bonds also refinanced the 1995 Enterprise bonds; therefore, existing budgeted appropriations for the 1995 bond payments will be deleted from the budget at the same time. Fiscal Impact: Investing these bond proceeds with LAW will result in higher earnings. Earnings can be used for qualifying capital projects. Coordinated With: City Treasurer's Office a RESOLUTION NO. A RESOLUTION OF THE LYNWOOD UTILITY AUTHORITY AUTHORIZING INVESTMENT OF MONIES IN THE LOCAL AGENCY INVESTMENT FUND AND THE BUDGET AMENDMENTS NECESSARY RELATING TO THE ISSUANCE OF THE LYNWOOD UTILITY AUTHORITY 2008 ENTERPRISE REVENUE BONDS WHEREAS the City closed its $9,755,000 Lynwood Utility Authority 2008 Enterprise Revenue Bonds, Series A on November 25, 2008; and WHEREAS, there is a need to amend the budget relating to the issuance of the Lynwood Utility Authority 2008 Enterprise Revenue Bonds; and WHEREAS, the new money from the 2008 bond issue and the unspent proceeds from the 1995 and 1999 bond issues total to approximately $8.5 million being held by the Bond Trustee, BNY Mellon Trust; and WHEREAS, the City will need maximum flexibility in terms of access to the monies and earn a higher rate of return as compared to a money market account; and WHEREAS, Pursuant to Chapter 730 of the statues of 1976 Section 16429.1 was added to the California Government Code to create a Local Agency Investment Fund in the State Treasury for the deposit of money of a local agency for purposes of investment by the State Treasurer; and WHEREAS, the Lynwood Utility Authority does hereby find that the deposit and withdrawal of money in the Local Agency Investment Fund in accordance with the provisions of Section 16429.1 of the Government Code for the purpose on investment as stated therein as in the best interest of the City of Lynwood; and WHEREAS, this resolution authorizes the investment of monies from the Enterprise Bonds and shall not supersede current resolutions on file with LAIF; and NOW, THEREFORE, BE IT RESOLVED, that the Lynwood Utility Authority does hereby find, proclaim, order and resolve as follows: Section 1. That the Lynwood Utility Authority authorizes the following budget amendments: Expenditure: 6051.45.450.67601 $155,000 Principal Payment/Series 2008 6051.45.450.67605 $246,583 Interest Payment/Series 2008 6051.45.450.67610 $239,414 Cost of Issuance/Series 2008 6051.45.450.67601 -$165,000 Principal Payment/Series 1995 6051.45.450.67605 -$103,187 Interest Payment/Series 1995 Revenue: 6051.45.37135 $3,755,000 Bond Proceeds New fund/new account $6,000,000 Bond Proceeds Section 2. That the Lynwood Utility Authority authorizes the deposit and withdrawal of Enterprise bond proceeds in the Local Agency Investment Fund in the State Treasury in accordance with the provisions of Section 16429.1 of the Government Code for the purpose of investment as stated therein, verification by the State Treasurer's Office of all banking information provide in that regard. BE IT FURTHER RESOLVED, that any two of the following City of Lynwood officers or their successors in office shall be authorized to order the deposit and withdrawal of monies in the Local Agency Investment Fund: Sal Alatorre City Treasurer Sheila Harding Deputy City Treasurer Maria T. Santillan Mayor Robert S. Torrez Assistant City Manager - Admin. & Community Services Roger Haley City Manager PASSED AND ADOPTED, by the Lynwood Utility Authority of the City of Lynwood, County of Los Angeles of State of California this day of , 2009. Maria T. Santillan, President ATTEST: Maria Quinonez, Secretary APPROVED AS TO FORM: Fred Galante, Authority Counsel Roger L. Haley Chief Administrative Officer APPROVED AS TO CONTENT: Robert S. Torrez Assistant City Manager - Admin. & Community Services