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CDC - Agenda 10-25-05r] L AGENDA REGULAR MEETING 0 ROSEMEAD COMMUNITY DEVELOPMENT COMMISSION CITY HALL CONFERENCE ROOM ROSEMEAD, CALIFORNIA OCTOBER 25, 2005, 7:00 P.M. CALL MEETING TO ORDER: 7:00 P.M. OR AS SOON THEREAFTER AS POSSIBLE PLEDGE TO THE FLAG: VICE-CHAIRMAN TAYLOR INVOCATION: COMMISSIONER TRAN ROLL CALL OF OFFICERS: COMMISSIONERS CLARK, NUNEZ, TRAN, VICE-CHAIRMAN TAYLOR, CHAIRMAN IMPERIAL APPROVAL OF MINUTES: NONE RESOLUTION NO. 2005-17 CLAIMS AND DEMANDS Recommendation: Adopt Resolution No. 2005-17 for payment of Commission expenditures. 2. RESOLUTION NO. 2005-18 - A RESOLUTION OF THE ROSEMEAD COMMUNITY DEVELOPMENT COMMISSION APPROVING THE REFINANCING OF CERTAIN OUTSTANDING DEBT ISSUED IN CONNECTION WITH REDEVELOPMENT PROJECT AREA NO. 1 Authorization is being requested to refinance a portion of the Commission's tax allocation bond debt in order to take advantage of lower interest rates resulting in savings. Recommendation: Adopt Resolution No. 2005-18. MATTERS FROM OFFICIALS 4. ORAL COMMUNICATIONS FROM THE AUDIENCE ON COMMUNITY DEVELOPMENT COMMISSION MATTERS ADJOURNMENT THE NEXT REGULAR MEETING IS SCHEDULED FOR NOVEMBER 8, 2005, AT 7:00 P.M. Upon request, this agenda will be made available in appropriate alternative formats to persons with disabilities, as required by Section 202 of the Americans with Disabilities Act of 1990. Any person with a disability who requires a modification or accommodation in order to participate in a meeting, should direct such request to the City Clerk's office at 626/569-2171 at least 48 hours before the meeting, if possible. Posted 72 hours in advance of the meeting at City Hall, 8838 E. Valley Boulevard, Rosemead; the L.A. County Library, Rosemead Branch, 8800 E. Valley Boulevard, Rosemead, and other locations pursuant to RMC Sec. 1.08.020. CDCREGMTG: 10-25-05 Page # I wr\ ROUGH DRAFT Rosemead Community Development Commission $13 Million Tax Allocation Bonds, Series 2005 Request for Proposals/Qualifications Investment Banking Services Introduction The City of Rosemead (the "City"), encompassing five and one-half square miles, is located in the central northwest section of Los Angeles County, about 12 miles east of the central business district of Los Angeles. The Rosemead Community Development Commission (the "Agency") was established pursuant to the Redevelopment Law and activated in 1972 by City Ordinance. Since 1975, the City Council members have acted as the members of the Agency. The Agency is seeking to refund a portion of its outstanding Tax Allocation Bonds, Series 1993A. Due to AB 1290 which became effective on January 1, 1994, the Agency cannot issue debt beyond fiscal year 2022. As a result, the Agency will refund its debt through the term bond maturing in 2018. The Agency may also seek to issue a portion of new money. This portion of new money will be amortized through fiscal year 2022. Accordingly, the Agency is seeking investment banking proposals to underwrite tax allocation bonds secured by tax increment revenues. The most likely structure would be fixed rate serial bonds through 2018 for the refunding portion and 2022 for the new money portion. Such a scenario is shown in the attached preliminary numbers. This RFP/RFQ process may identify additional alternatives. Preliminary tables from the fiscal consultant's report are also attached. Public Financial Management, Inc. serves as financial advisor to Agency; Orrick, Herrington 6 Sutcliffe LLP serves as bond counsel and disclosure counsel to the Agency. Proposal Requirements 1. Provide a cover letter signed by an officer of your firm indicating the proposal is valid for 90 days and providing telephone, fax and e-mail contact information. 2. Indicate the experience of your firm in underwriting California redevelopment debt. 3. Identify the proposed staffing for this engagement including the lead banker, analytic support and lead underwriter. Resumes should be included in an appendix. 4. Provide a narrative of your analysis of this credit, including a recommended structure and identifying any concerns or issues related to risks. 5. Indicate your thoughts on the availability and cost of credit enhancement for this transaction, as well as a surety policy to replace the existing debt service reserve fund. 6. Provide a complete schedule of underwriting fees, including expenses for underwriter's counsel and other expenses. Please note disclosure counsel will prepare the Official Statement. 7. Provide a complete sources and uses table and debt service schedule indicating your expected pricing as of the date of the proposal. Indicate your expected spread to the MMD "AAA" index. This can be included in an appendix. Rosemead Community Development Commission RFP/RFQ - Investment Banking Services It 8. Identify two firms and the attorneys you would consider using for Underwriter's Counsel if required. Submittal Instructions Proposals should be prepared in 81/2" x 11" format and should not exceed 10 pages. Four copies of the proposal should be sent to the Agency at the following address: Mr. Bill Crowe City Manager City of Rosemead 8838 E. Valley Blvd. Rosemead, CA 91770 (626) 569-2101 Two copies of the proposal should be sent to the Financial Advisor at the following address: - Mr. Keith D. Curry Managing Director Public Financial Management 660 Newport Center Drive, Suite 750 Newport Beach, CA 92660 (949) 721-9422 Faxed or late proposals will not be considered. Questions regarding the RFP/RFQshould.be-directed:W Mr. Curry at the above telephone number. Proposals are due no later than 12:00 noon on Friday, November 4, 2005. The Agency retains the right to reject all proposals, to negotiate with multiple proposers, to select other than the lowest cost proposal, to designate co-senior managers or to re-solicit proposals at its sole discretion. Rosemead Community Development Commission RFP/RFQ - Investment Banking Services 12