CDC - Item 3C - Minutes 2-14-06•
MINUTES OF THE REGULAR MEETING
ROSEMEAD COMMUNITY DEVELOPMENT COMMISSION
February 14, 2006
Chairman Imperial called the regular meeting of the Rosemead Community Development
Commission to order at 7:08 p.m. in the conference room of City Hall, 8838 E. Valley
Boulevard, Rosemead, California.
Commissioner Nunez led the pledge to the flag and Commissioner Tran led the invocation.
ROLL CALL OF OFFICERS:
Present: Commissioners Clark, Nunez, Tran, Vice-Chairman Taylor, Chairman Imperial
Absent: None
APPROVAL OF MINUTES
None
CDC RESOLUTION NO. 2006-04 CLAIMS AND DEMANDS
The following Resolution was presented to the Agency for adoption:
RESOLUTION NO. 2006-04 CLAIMS AND DEMANDS
A RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION
OF THE CITY OF ROSEMEAD ALLOWING CERTAIN CLAIMS AND
DEMANDS IN THE SUM OF $ 123,139.83 DEMANDS NO. 7785 THROUGH
7791
A motion was made by Commissioner Nunez with a second by Commissioner Clark that
the Commission adopts Resolution No. 2006-04 for payment of Commission
expenditures.
Vote resulted:
Aye:
Clark, Imperial, Nunez, Taylor, and Tran
No:
None
Absent:
None
Abstain:
None
The Chairman declared said motion duly carried and so ordered.
APPROVAL OF PLANS AND SPECIFICATIONS AND AUTHORIZATION TO
SEEK BIDS FOR INSTALLATION OF A TRAFFIC SIGNAL AT DEL MAR
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AVENUE AND HIGHCLIFF AVENUE AND GRAVES AVENUE AND JACKSON
AVENUE
The following recommendation was presented to the Agency for adoption: Approve the
plans and specifications and authorize advertisement for bids by the Agency Secretary.
Commissioner Nunez made a motion with a second by Commissioner Tran that the
Commission authorizes the plans and specification and advertisement for bids.
Vote resulted:
Aye:
Clark, Imperial, Nunez, Taylor, and Tran
No:
None
Absent:
None
Abstain:
None
The Chairman declared-said motion duly carried and-so ordered.
3. ADOPTION OF RESOLUTIONS AUTHORIZING THE ISSUANCE OF TAX
ALLOCATION BONDS, SERIES 2006 AND THE EXECUITION OF RELATED
DOCUMENTS TO REFUND EXISTING BONDS AND GENERATE NEW .
MONEY PROCEEDS, AND AUTHORIZING CREATION OF AND CERTAIN
ACTIONS OF THE ROSEMEAD FINANCING AUTHORITY.
At it's November 8, 2005 meeting, the CDC selected the firm of Piper Jaffray to serve as
senior managing underwriter and authorized staff to purse the refunding of the Series
1993 Tax Allocation Bonds. Based on market conditions as of January 27, 2006, the
Commission can refund $9.335 million of its outstanding 1993A Bonds. In addition, the
Commission can generate approximately $5.67 million in new money for eligible capital
campaigns.
Commissioner Taylor asked for clarification regarding the necessity of a Finance
Authority and who has the power to establish one.
Agency Attorney Wallin explained there is a joint powers authority between the CDC
and City Council; both entities have to give approval to establish the Finance Authority.
Kevin Hale, Bond Counsel from Orrick, Harrington & Sutcliff explained the necessity of
the Finance Authority: to facilitate a negotiated bond, as neither the City nor the CDC can
enter a negotiated sale on its own.
Commissioner Taylor asked why the city had not used a negotiated sale for the five
previous bond sales the CDC has undertaken which utilized a competitive sale format.
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•
Diane Hue, Public Financial Management (the City's Financial Advisor) explained that
the city's credit rating had slipped a few years ago to Triple B, and recently upgraded to a
Triple B+, but competitive sales require a higher level of credit.
Eric Scriben, from Piper Jaffray indicated that events in 2000/2001 accounted for the
credit downgrade.
Frank Trapeppi, the former Rosemead City Manager explained that the city's downgrade
was a result of Southern California Edison's potential bankruptcy a few years ago due to
deregulation. Taxes generated from Edison account for 25% of the city's tax increment
to Project Area 1.
Mr. Scriben addressed Edison's current situation and tax history with Standard and Poors,
which allowed him to leverage a higher credit rating for the city.
A change was made to Page 6, Section C, in the Projected Tax Increment Revenue
Project Area 1 to strike eminent domain from the Finance Authority's listed powers.
An informational update'with completed information will be presented at the February
28`h meeting.
The following recommendation was presented to the Agency for adoption:
That the Community Development Commission adopt Resolution No. 2006-02 to effect
the execution and delivery of bond and adopt Resolution No. 2006-03 to form the
Rosemead Financing Authority with an amendment that eliminates eminent domain as a
power of the Finance Authority.
Commissioner Nunez made a motion with a second by Commissioner Tran that the
Commission adopts Resolution No. 2006-02 and Resolution 2006-03 with said
amendment.
Vote resulted:
Aye: Clark, Imperial, Nunez, Taylor, and Tran
No: None
Absent: None
Abstain: None
The Chairman declared said motion duly carried and so ordered
4. MATTERS FROM OFFICIALS
None
5. ORAL COMMUNICATIONS FROM THE AUDIENCE
None
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•
6. ADJOURNMENT
There being no further action to be taken at this time, the meeting was adjourned at
7:34 p.m. The next meeting will take place on February 28, 2006 at 7:00 PM.
Respectfully submitted: APPROVED:
Commission Secretary
CHAIRMAN
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