Loading...
HomeMy Public PortalAboutA2010-09-21LRA �4 LYry �C, e LYNWOOD REDEVELOPMENT AGENCY 0,0w 11330 BULLIS ROAD LYNWOOD, CALIFORNIA 90262 -3845 (310) 603 -0220 Maria T. Santillan, Chair Aide Castro, Vice Chair Alfredo Flores, Member Jim Morton, Member Ramon Rodriguez, Member This 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. Materials related to an item on this Agenda submitted to the Agency Board after distribution of the Agenda packet are available for public inspection at the Agency Secretary's office at the above address during normal business hours. Any person who has a question concerning any of the agenda items may call the City Manager at (310) 603- 0220, ext. 200. Aj Pos rec\ AGENDA RECEIVED LYNWOOD REDEVELOPMENT AGENCY SEP T 6 2010 SEPTEMBER 21, 2010 REGULAR MEETING CITY OF LYNWOOD 5:00 P.M. CITY CLERKS OFFICE LYNWOOD CITY HALL Mot 0 L Qv; no y ct 11330 BULLIS ROAD C; +• Clcr k MARIA T. SANTILLAN CHAIR AIDE CASTRO ALFREDO FLORES VICE CHAIR MEMBER JIM MORTON RAMON RODRIGUEZ MEMBER MEMBER ROGER L. HALEY EXECUTIVE DIRECTOR FRED GALANTE AGENCY COUNSEL OPENING CEREMONIES: A. Call Meeting to Order B. Roll Call (FLORES- MORTON - RODRIGUEZ - CASTRO - SANTILLAN) C. Certification of Agenda Posting by Secretary PUBLIC ORAL COMMUNICATIONS (Regarding Agenda Items Only) PUBLIC ORAL COMMUNICATIONS CONSENT CALENDAR All matters listed under the Consent Calendar will be acted upon by one motion affirming the action recommended on the agenda. There will be no separate discussion on these items prior to voting unless members of the Agency or staff request specific items are removed from the consent calendar for separate action. 1. RESOLUTION OF THE LYNWOOD REDEVELOPMENT AGENCY OF LYNWOOD, CALIFORNIA, ALLOWING AND APPROVING THE DEMANDS AND WARRANTS. 2. APPROVAL TO REIMBURSE THE LYNWOOD REDEVELOPMENT AGENCY FROM THE SECTION 108 LOAN ACCOUNT FOR ELIGIBLE COST Comments: On August 18, 2010 the City received a letter from HUD stating it now authorizes the use of the Section 108 funds to reimburse costs incurred, in the amount of $2,592,000, for eligible activities initially funded with non - Section 108 funds. Recommendation: Staff recommends that the City Council and the Lynwood Redevelopment Agency after review and consideration: • 1. Adopt the attached Resolution entitled "A JOINT RESOLUTION OF THE LYNWOOD CITY COUNCIL AND THE LYNWOOD REDEVELOPMENT AGENCY (AGENCY) APPROVING THE REIMBURSEMENT IN THE AMOUNT OF $2,592,000 FROM THE SECTION 108 LOAN ACCOUNT TO THE LYNWOOD REDEVELOPMENT AGENCY BUDGET"; AND 2 2. Direct and authorize the City Manager, City Treasurer and staff to process reimbursement and wire transfers according to Lynwood procedures and directives provided by the Department of Housing and Urban Development Department (HUD). 3. REQUEST TO APPLY FOR EPA GRANTS AND OTHER FUNDING SOURCES Comments: The Agency is interested in pursuing 2 Community -wide EPA Assessment Grants. The application must be submitted by October 15, 2010. The potential funding from these grants is $400,000 ($200,000 per grant). The funds would be used toward the remediation efforts of the Imperial Highway Master Plan area for integration into Brownfield database and further investigation of identified properties. Recommendation: Staff recommends that the Council adopt the attached resolution entitled, "A JOINT RESOLUTION OF THE CITY COUNCIL AND REDEVELOPMENT AGENCY OF THE CITY OF LYNWOOD AUTHORIZING STAFF TO SUBMIT APPLICATIONS TO THE ENVIRONMENTAL PROTECTION AGENCY (EPA) FOR GRANT FUNDING AND GIVING AUTHORITY TO THE CITY MANAGER /EXECUTIVE DIRECTOR TO AUTHORIZE STAFF'S PURSUIT OF FUTURE EPA GRANTS AND OTHER FUNDING SOURCES ON BEHALF OF THE CITY /AGENCY ". 4. APPROVAL TO RETAIN FISCAL CONSULTING FIRM Comments: A Fiscal Consultant is needed to prepare the tax revenue and bond capacity report required by investors before they buy the tax allocation refunding bonds. For Fiscal Consultant, staff will solicit bids from five qualified firms with demonstrated expertise related to bond financings. There are limited numbers of firms that provide this service. Recommendation: Staff recommends that the Agency adopt the attached resolution entitled: "A RESOLUTION OF THE LYNWOOD REDEVELOPMENT AGENCY AUTHORIZING STAFF TO RETAIN THE SERVICES OF THE BEST QUALIFIED FISCAL CONSULTING FIRM TO PREPARE REVENUE AND BOND CAPACITY FORECAST REPORT FOR THE NEW LYNWOOD REDEVELOPMENT AGENCY (LRA) BONDS ". 3 CLOSED SESSION NONE ADJOURNMENT THE NEXT REGULAR MEETING WILL BE HELD ON OCTOBER 5, 2010 AT 5:00 P.M. AT THE COUNCIL CHAMBERS OF CITY HALL, 11330 BULLIS ROAD, LYNWOOD, CALIFORNIA 4 a47 r 1 () t- o AGENDA STAFF REPORT DATE: September 21, 2010 TO: Honorable Chairperson and Members of the Agency Board APPROVED BY: Roger L. Haley, Executive Directo 6, PREPARED BY: Robert S. Torrez, Assistant City Manage 1 Monica Ochoa, Accounting Technician yy �� SUBJECT: Approval of the Warrant Register Recommendation: Staff respectfully recommends that the Agency Chairperson and Board Members approve the warrant register for Fiscal Year 2010 -2011. Attached Warrant Registers dated September 21, 2010 AGENDA ITEM - CO + + + CO C0 (0 < 0) ig 0 0 0 0 O O O 0 N N + CD CO 0 n 0 w S n 0 O • 0. CO Al W W 0 O O CO V O m V 0 0 fD (D W CD C C N V 0 N N , 0 N N N 0 N N N S + N S - - 0 0 S S N O N N O N N N O 0 0 0 O O 0 O co O 0 0 C71 a O O 91 O O O D7 0 0 0 1 O O O g O O O • O 0 0 < 3 O O O O O O 0 0 0 an 0 U A 0 0 A 0 W 0 O 7 CT > > O 0 > 0 A O b 0. p F 0 (P 0 (P r 0 W CO 0 3 m > S a z m 5 m m O n 3 z m .. m = m .. { 3 M n C M N Z m N 0 = Z m 0 - ( m m 90 1 0) co O ti c c G c C m 0 o C m N C m 0 m o m m 0 m 0 m mm r A D A D r m m r r m r < r < K m m 3 .m Z m < z 0 m m ~ an D .l1 H ' A N A A N 0 p a a CD CO W O m W W O O ( OI j O O V (P J J (T W 0 W V + A W J 0 + 0 O 0 O O N A C O 0 6 C 0 • 0 O 7" O 1 O r • (0 D CO (0 0 O 0 (0 (0 (D ((0 ((0 co ( O ° D m O n 0 0 o o 0 0 0 0 0 a O CD ( 0 0 ( A N CO 0 O m O m A A ( N J A A N N (D DCD V 0 tD T 0t0 V 0 V CO CO CO c0 V 0 CO 0 CO (n 0 m A m xi Co A V m V A V A V A 0 i 0 A. m 0 a O a 0 CD 0 N O N O N 0 N Z N O N O N O N Al N N N N T N D 0 n V m V m 1-4 V V n V m V m J 73 J J J { J m J m nr. o m o m o> 0 m 0 m o m o y o 0 0 0 o O m o n a, N a N a ID 0 A Co an O N ar O m ar co co am a m W m : . ONO ( n o c o m o 0O 0 ) O c OOOO N o o C 0 Z O Z 0 Z 0 N 0 1 W Z o) Z m y (n (P (P (n = (P (P V co m D CDD N o D 0 > r o D o D 0- OO ' � vi ( r 11 D o o O 0 r o O w ° (n o m o Z an al mm E ( o 0 D (0 m c ti 0 0 0 0 �' N m O N (n Go N < Z CO CO CO m m 0 0 -I 0 -I 0 0 0 - 0 0 mm .. .. :. .. .. .. . . .. .. .. .. I CO t. -• W (J W O) CO CO N 0 O O O _ O O A N 0 W co O V N W N co D a. 0 W N J 0) W V W N -- -.1 A A + _ (D (O 3 0 0 O 0) 0 0 0) W co O O co N N (0 - -. 0 CO N + + CO CO O O N N V 0 O O 0 0 0 Al V 01 A A J A++ 4r ++ O co 0 N N N O in 0 O 0 O O N O N Co O N A O O N N O CT aT 0 O w O O co O 0 co O co O O O o o O O 0 N O O N O 0 A A O CD I L_ _ 'r.k` t4. AGENDA STAFF REPORT • DATE: September 21, 2010 TO: Honorable Mayor and Members of the City Council Honorable Chair and Members of the Agency APPROVED BY: Roger L. Haley, City Manager /Executive Directs 'rte, I f PREPARED BY: Sarah Magana - Withers, Director of Red opment� Bruno Naulls, Redevelopment Associate SUBJECT: Approval to reimburse the Lynwood Redevelopment Agency from - the Section 108 Loan account for eligible costs Recommendation: Staff recommends that the City Council and the Lynwood Redevelopment Agency after review and consideration: 1. Adopt the attached Resolution entitled "A JOINT RESOLUTION OF THE LYNWOOD CITY COUNCIL AND LYNWOOD REDEVELOPMENT AGENCY (AGENCY) APPROVING THE REIMBURSEMENT IN THE AMOUNT OF $2,592,000 FROM THE SECTION 108 LOAN ACCOUNT TO THE LYNWOOD REDEVELOPMENT AGENCY BUDGET'; and 2. Direct and authorize the City Manager, City Treasurer and staff to process reimbursements and wire transfers according to Lynwood procedures and directives provided by the Department of Housing and Urban Development Departments (HUD). Background: 1. In June 2000, the City of Lynwood applied for a Section 108 Loan in the amount of $7,000,000 and a BEDI Grant in the amount of $875,000 from the Department of Housing and Urban Development for the development of the Plaza Mexico shopping center. 2. Approximately $3 million in Agency funds were used to subsidize the Plaza Mexico project between the years 2000 and 2002. HUD provided a BEDI grant to be used in conjunction with the Section 108 Loan. The funds were used to make eligible payments while the Section 108 loan was being processed. k AGENDA ITEM 2_ 3. In August 2002, the City received HUD Section 108 Loan funds. $1,507,941.62 of the funds were used to acquire two properties. 4. On September 16, 2009, HUD informed the City that the BEDI grant had been disbursed prematurely and the funds can only be disbursed at a ratio not to exceed $1.00 per BEDI grant funds to $8.00 of Section 108 Loan funds. As a result, HUD requested that the City return $687,500 to HUD. 5. HUD was provided evidence that the Agency spent more than $3 million on the Plaza Mexico in lieu of the Section 108 Loan funds and requested that HUD consider these cost in the calculations for the BEDI reimbursement. HUD then lowered the reimbursement amount from $687,500 to $362,530. and approved $2,592,000 as eligible costs spent on the Plaza Mexico Project by the Agency. The reimbursement to the Agency could not be fully executed until HUD received the BEDI Grant reimbursement. 6. On May 4, 2010 the City /Agency approved payment to HUD for the reimbursement of $362,530 BEDI grant funds. 7. On June 17, 2010 payment instructions were provided to the City Treasurer regarding the wire transfer of the BEDI grant reimbursement and funds were transferred on June 22, 2010. 8. On August 18, 2010 the City received a letter from HUD stating the $362,530 reimbursement of BEDI grant funds was received via wire transfer and HUD now authorizes the use of the Section 108 funds to reimburse costs incurred, in the amount of $2,592,000, for eligible activities initially funded with non- Section 108 funds (see attachment). Discussion & Analysis: The Section 108 funds must be returned to the project area in which the benefit was received. The Plaza Mexico project is located within Redevelopment Project Area 'A' and is the sole project funding found eligible for reimbursement. Alameda project Area did not receive benefit and no improvements from that project area were found eligible for reimbursement. The Section 108 funds should therefore be used to reimburse Project Area 'A' for funds used when Section 108 funds were not available. The funds will be deposited into the Agency's Area 'A' revenue Account 9452 as specified in the attached resolution. Fiscal Impact: The Lynwood Redevelopment Agency's Project Area 'A' will receive $2,592,000 from the Section 108 Loan account. 2 Coordinated With: City Manager's Office Finance and Administration City Attorney's Office Attachments: — Letter from HUD Resolution 3 RESOLUTION NO. A JOINT RESOLUTION OF THE LYNWOOD CITY COUNCIL AND LYNWOOD REDEVELOPMENT AGENCY (AGENCY) APPROVING THE REIMBURSEMENT IN THE AMOUNT OF $2,592,000 FROM THE SECTION 108 LOAN ACCOUNT TO THE LYNWOOD REDEVELOPMENT AGENCY BUDGET WHEREAS, the Department of Housing and Urban Development (HUD) informed the City that its BEDI Grant funds were spent prematurely and required the City to repay funds in the amount of $362,530; and WHEREAS, section 108 guidelines authorizes the use of several funding sources for repayment of section 108 loans, including redevelopment funds; and WHEREAS, consistent with section 108 guidelines, the City of Lynwood was required to repay HUD in the amount of $362,530 and desired to pay these funds through the Lynwood Redevelopment Agency; and WHEREAS, On August 18, 2010 HUD notified the City that $362,530 was received for the reimbursement of BEDI grant funds; and WHEREAS, the Department of Housing and Urban Development analyzed documentation submitted by the Agency and determined that $2,592,000 of Agency funds spent on the Plaza Mexico Project are eligible economic development costs; and WHEREAS, HUD has approved the use of Section 108 Loan fund to reimburse cost incurred in the amount of $2,592,000 by the Agency for eligible activities initially funded with non- Section 108 funds. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LYNWOOD AND THE LYNWOOD REDEVELOPMENT AGENCY DO HEREBY FIND, DETERMINE, ORDER AND RESOLVE AS FOLLOWS: Section 1. That the City Manager or designee is authorized and the City Treasurer directed to make the following funds appropriation and wire transfer: AMOUNT, . FROM`,I K x :; r S I TOE �'? . � � x _ s _�,. u ,_t «�.:( -v �..,n*s,ta�s?.ar "a. . �.r"i. a. 3,i. wad $2,592,000 Section 108 Loan Unappropriated LRA Area "A" Account # 9452.70.36999 US Bank Account Section 2. This Resolution shall become effective immediately upon its adoption. PASSED, APPROVED, AND ADOPTED this day of , 2010 Maria T. Santillan Mayor /Chair ATTEST: Maria Quinonez Roger L. Haley City Clerk /Agency Secretary City Manager /Executive Director APPROVED AS TO FORM: APPROVED AS TO CONTENT: Fred Galante Sarah M. Withers City Attorney /Agency Counsel Director of Redevelopment 2 a ,..f., o , U.S. Department o1 Housing and Urban Development Los Angeles Field Office, Region IX a / 611 W. 6 Street, Suite 1100 Los Angeles, CA 90017 AUG 18 2010 _. Roger L. Haley, City Manager City of Lynwood ATTN: Annette Potts 11330 Bullis Road Lynwood, CA 90262 Dear Mr. Haley: SUBJECT: Community Development Block Grant (CDBG) Program On -Site Monitoring Report Finding I -B Follow -Up Section 108 /Brownfield Economic Development Initiative Our office forwarded the subject Monitoring Report to the City, dated July 17, 2009. The Monitoring Report identified one Finding under the City's Section 108 Loan Guarantee /Brownfield Economic Development Initiative (BEDI) program. This letter provides clarification relating to the non - Section 108 costs determined to be eligible for reimbursement in connection with the subject Monitoring Report, and a request from Lynwood staff for written authorization to use remaining Section 108 funds to reimburse the aforementioned non - Section 108 costs. In 2001, the City of Lynwood received a Section 108 Loan Guarantee in the amount of $7,000,000, along with an $875,000 BEDI Grant, for land assembly associated with the Town Center /Plaza Mexico Project (the Project). The Monitoring Report described how the City was found to be in non - compliance with the BEDI Agreement, and recommended a corrective action for the City to reimburse HUD, from a non - Federal source(s), in the amount found non - compliant. Lynwood staff was given the opportunity, however, to identify non - Section 108 Loan costs expended on the Project for potential reimbursement back to the City, to reduce the amount due back to HUD. Such costs were identified and the information was forwarded to the Financial Management Division in HUD Headquarters (FMD -HQ) for review and $2,592,000 in non.- Section 108 costs was determined eligible for reimbursement, and resulted in a final calculation of $362,530 due back to HUD. Based on the above, and guidance from FMD -HQ staff, grantee staff is hereby authorized to use existing Section 108 funds to reimburse costs incurred, in the amount of $2,592,000, for eligible activities initially funded with non - Section 108 funds. Please note that this guidance is separate from the corrective action recommended in the Monitoring Report relating to the reimbursement of the BEDI grant, as mentioned above. It is our understanding that the amount of $362,530 has been wired back to HUD. If you, or your staff, have any questions or need further assistance, please feel free to contact Arnold Sison, Community Planning and Development Representative, at (213) 534 -2560. Sincerely, _ William Vasquez D'.ec Office of Comm . P ing and Development AGENDA STAFF REPORT DATE: September 21, 2010 TO: Honorable Mayor and Members of the City Council Honorable Chair and Members of the Agency APPROVED BY: Roger L. Haley, City Manager /Executive Direc'•Si'/ PREPARED BY: Sarah Magana Withers, Director of Red- ,• • men , Bruno Naulls, Redevelopment Associa - SUBJECT: A Request to Apply for EPA Grants and Other Funding Sources Recommendation: Staff recommends that the Council adopt the attached resolution entitled, "A JOINT RESOLUTION OF THE CITY COUNCIL AND REDEVELOPMENT AGENCY OF THE CITY OF LYNWOOD AUTHORIZING STAFF TO SUBMIT APPLICATIONS TO THE ENVIRONMENTAL PROTECTION AGENCY (EPA) FOR GRANT FUNDING AND GIVING AUTHORITY TO THE CITY MANAGER/EXECUTIVE DIRECTOR TO AUTHORIZE STAFF'S PURSUIT OF FUTURE EPA GRANTS AND OTHER FUNDING SOURCES ON BEHALF OF THE CITY /AGENCY ". Background: The Agency is engaged in the preliminary phases of remediation of several contaminated (Brownfield) sites within the City of Lynwood. The Federal and State EPA provide funding for different aspects of environmental clean up. These funds provide a source to leverage the costs for site assessment, analysis, and physical remediation. As funding resources become available, the Agency must be in a position to act immediately in order to maximize its chance to receive the funding. These funds are usually competitive by nature and the more time available to submit applications the better chance of being awarded the funding. Currently, the Agency is interested in pursuing 2 EPA grants that are community -wide Assessment Grants. One is petroleum and the other is for hazardous substances. T eAGENDA applications must be submitted by October 15, 2010. The potential funding from th a ITEM grants is $400,000 ($200,000 per grant). The funds would be used towards e a. remediation efforts of the Imperial Highway Master Plan area for integration into the Brownfield database and further investigation of identified properties. Discussion & Analysis: Staff is recommending that the City Manager /Executive Director be authorized to approve staff's pursuit of grant funding. This will enable staff to proceed reducing the chance of not meeting the time requirements of application submissions and maximizing the time to prepare such documents. At times there are fees associated with application submittals. All applications with associated costs and fees exceeding a $15,000 threshold will be brought before the Agency /City Council for consideration; otherwise, the fees will be paid under the City Manager's $15,000 purchasing authority. Fiscal Impact: The Agency may receive up to $200,000 per grant if successful ($400,000 total). Total costs for preparation and associated fees will not exceed $7,000. The cost for applying for these grants will be deducted from in the Agency's FY 2010 -2011 budget. No additional funding will be required from the Agency's unappropriated fund balances. Coordinated With: City Attorney's Office Attachments: Resolution 2 RESOLUTION NO. A JOINT RESOLUTION OF THE CITY COUNCIL AND REDEVELOPMENT AGENCY OF THE CITY OF LYNWOOD AUTHORIZING STAFF TO SUBMIT APPLICATIONS TO THE ENVIRONMENTAL PROTECTION AGENCY (EPA) FOR GRANT-FUNDING AND GIVING AUTHORITY TO THE CITY MANAGER/EXECUTIVE DIRECTOR TO AUTHORIZE STAFF'S PURSUIT OF FUTURE EPA GRANTS AND OTHER FUNDING SOURCES ON BEHALF OF THE CITY /AGENCY WHEREAS, the City /Agency is engaged in the preliminary phases of remediation of several contaminated (Brownfield) sites within the City of Lynwood; and WHEREAS, the Federal and State EPA provide funding for different aspects of environmental clean up which is a critical source to leverage the costs for site assessment, analysis, and physical remediation; and WHEREAS, the City /Agency is interested in pursuing $400,000 ($200,000 per grant) in EPA Community -wide Assessment Grant funds for the remediation efforts of the Imperial Highway Master Plan Area and further investigation of identified properties with applications that must be submitted by October 15, 2010; and WHEREAS, the City /Agency must be in a position to submit applications expeditiously in order to maximize its chance to receive the funding as scarce resources become available; and WHEREAS, This may be achieved by authorizing the City Manager /Executive Director to approve the pursuit of grants and other funding sources where the cost to apply does not exceed $15,000. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LYNWOOD AND THE LYNWOOD REDEVELOPMENT AGENCY DO HEREBY FIND, DETERMINE, ORDER AND RESOLVE AS FOLLOWS: Section 1. Staff is given authorization to apply for EPA Community -wide Assessment Grant funds for the remediation efforts of the Imperial Highway Master Plan Area and further investigation of identified properties. Section 2. The City Manager /Executive Director is hereby authorized to approve the pursuit of future grant opportunities and other funding sources where the cost to apply does not exceed $15,000. Section 3. This Resolution shall become effective immediately upon its adoption. PASSED, APPROVED, AND ADOPTED this day of. Maria T. Santillan Mayor /Chair ATTEST: Maria Quinonez Roger L. Haley City Clerk/Agency Secretary City Manager /Executive Director APPROVED AS TO FORM: APPROVED AS TO CONTENT: Fred Galante Sarah M. Withers City Attorney /Agency Counsel Director of Redevelopment 2 FY6 O 1 AGENDA STAFF REPORT C tiFOP ;,1 DATE: September 21, 2010 TO: Honorable Chair and Members of the Agency APPROVED BY: Roger L. Haley, Executive Director PREPARED BY: Robert S. Torrez, Assistant City Manager Lt-- SUBJECT: Approval to Retain Fiscal Consulting Firm Recommendation: Staff recommends that the Agency adopt the attached resolution entitled: "A RESOLUTION OF THE LYNWOOD REDEVELOPMENT AGENCY AUTHORIZING STAFF TO RETAIN THE SERVICES OF THE BEST QUALIFIED FISCAL CONSULTING FIRM TO PREPARE REVENUE AND BOND CAPACITY FORECAST REPORT FOR THE NEW LYNWOOD REDEVELOPMENT AGENCY (LRA) BONDS ". Background: The City retains the services of a bond financial advisor (FA), Gardner Underwood & Bacon LLC ( "GUB "). The FA serves several roles, one of which is to continuously monitor the financial markets for opportunities to refund (refinance) the City's and Agency's existing bonds at lower interest rates. GUB has identified an opportunity to refund the Lynwood Public Financing Authority's 1999 Tax Allocation Bonds, Series A (Project Area A) (the "Series A Bonds ") and the Alameda Project Area Tax Allocation Bonds, Series 1999 (the "Alameda Project Area Bonds" and together with the Series A, the "Bonds "). Depending on market conditions on the day of sale, the Agency could realize net present value savings of above the industry standard minimum threshold of 3% or approximately $300,000 over the life of the bonds. However, staff anticipates based on the current market conditions, savings could exceed $1 million over the life of the bonds. Discussion & Analysis: A Fiscal Consultant is needed to prepare the tax revenue and bond capacity AGENDA report required by investors before they buy the tax allocation refunding bonds. ITEM Li For Fiscal Consultant, staff will solicit bids from five qualified firms with demonstrated expertise related to bond financings. There are limited numbers of firms that provide this service. It is requested that the Agency authorize staff to select from the best responsible bid. Staff will evaluate proposals based on a combination of experience, familiarity with the Agency and fees. Fiscal Impact: The estimated cost for preparing the revenue and bond capacity forecast reports will be more than $15,000. Staff will be able to determine the exact cost after bids for the service are received. It is anticipated that costs will be paid from proceeds of the bond issuance. Coordinated With: City Manager's Office City Attorney's Office 2 RESOLUTION NO. A RESOLUTION OF THE LYNWOOD REDEVELOPMENT AGENCY AUTHORIZING STAFF TO RETAIN THE SERVICES OF THE BEST QUALIFIED FISCAL CONSULTING FIRM TO PREPARE REVENUE AND BOND CAPACITY FORECAST REPORT FOR THE NEW LYNWOOD REDEVELOPMENT AGENCY (LRA) BONDS WHEREAS, the City desires to retain the services of a Fiscal Consultant to prepare the tax revenue and bond capacity report required by investors before they buy the tax allocation refunding bonds; and WHEREAS, staff will solicit bids from five qualified firms with demonstrated expertise related to bond financings; and WHEREAS, the Agency could realize net present value savings of above the industry standard minimum threshold of 3% or approximately $300,000 over the life of the bonds; and WHEREAS, staff anticipates based on the current market conditions, savings could exceed $1 million over the life of the bonds. NOW THEREFORE, THE LYNWOOD REDEVELOPMENT AGENCY OF THE CITY OF LYNWOOD DOES HEREBY RESOLVE AS FOLLOWS: Section 1. That the Agency authorize staff to select from the best responsible bid. Section 2. This resolution shall become effective immediately upon its adoption. PASSED, APPROVED and ADOPTED this 21 day of September 2010. MARIA T. SANTILLAN CHAIR 3 ATTEST: MARIA QUINONEZ ROGER L. HALEY SECRETARY EXECUTIVE DIRECTOR APPROVED AS TO FORM: APPROVED AS TO CONTENT: FRED GALANTE ROBERT S.TORREZ AGENCY COUNSEL ASSISTANT CITY MANAGER 4