HomeMy Public PortalAbout2011.063 (03-15-11) RESOLUTION NO. 2011.063
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD AND THE
LYNWOOD REDEVELOPMENT AGENCY AUTHORIZING THE ADDITIONAL FEES
INCURRED BY THE BOND FINANCING TEAM AS THE RESULT OF THE 2011
LYNWOOD REDEVELOPMENT AGENCY BONDS SALE
WHEREAS, on September 21, 2010, the City Council authorized City Manager
staff to work with the City's Financial Advisor (FA) to research the feasibility of refunding
(refinancing) the Lynwood Redevelopment Agency's $10 million of outstanding 1999
Tax Allocation Bonds; and
WHEREAS, on October 5, 2010, the Agency authorized the hiring of the bond
financing team and related fees; and
WHEREAS, on February 1, 2011, the Lynwood City Council, Financing
Authority, and Redevelopment Agency authorized the issuance of up to $33.75 million
of Agency bonds; and
WHEREAS, from October to February, the national economy fell into another
tailspin and bond interest rates had increased dramatically. As a result, staff informed
Council that refunding the 1999 bonds woutd not be possible, since interest rates
available were now higher than the interest rates on the 1999 bonds. Yet, compelling
reasons existed to issue new bonds, inspite of higher interest rates; and
WHEREAS, on March 7, 2011, $24.14 million of Lynwood Redevelopment
Agency bonds were sold; and
WHEREAS, the Bond Financing Team worked diligently to ensure the issuance
and sale of the Lynwood Redevelopment Agency Tax Allocation Bonds; and
WHEREAS, it was understood that staff would seek Council approval for
additional compensation for extraordinary services beyond the original scope of
services requested by the Lynwood Redevelopment Agency; and
WHEREAS, additional fees are needed to cover the services provided by the
Bond Financing Team.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LYNWOOD DOES
HEREBY RESOLVE, AS FOLLOWS:
Section 1. That the City Council and Lynwood Redevelopment Agency
approve and authorize the payment of additional fees for the Bond Financing Team as
follows:
Financial Advisor $6,200 ori inal fee was $35,000
Fiscal Consultant $13,600 not sub�ect to ne otiation, based on hours worked
Underwriters $10,000 incurred le al and Federal fees on LRA's behal
Bond Counsel $25,000 $100K reviousl authorized
Section 2. This resolution shall take effect immediately upon its adoption.
PASSED, APPROVED and ADOPTED, this 15 day of March, 2011.
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Aide Castro, Mayor
ATTEST:
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Maria Quinonez, ity Clerk Roger L. a ey, City Manager
APPROVED AS TO FORM: APPROVED AS TO CONTENT:
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Fred Galante, City Attorney Robert S. Torrez, Assist,�`'it Ci
Manager
STATE OF CALIFORNIA )
) SS.
COUNTY OF LOS ANGELES )
I, 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 15 day of March, 2011.
AYES: COUNCIL MEMBERS FLORES, RODRIGUEZ, SANTILLAN, MORTON
AND CASTRO
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE
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aria Quinonez, City Clerk
STATE OF CALIFORNIA )
) SS.
COUNTY OF LOS ANGELES )
I, 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. 2011.063 on file in my office and that said Resolution was
adopted on the date and by the vote therein stated. Dated this 15 day of March, 2011.
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Maria Quinonez, City Clerk