RRA - 12-12-95II
r. APPROVED
CITY F RQSEMEAD
HATE /a~
MINUTES OF THE REGULAR MEETING ~,.t. [D~~
ROSEMEAD REDEVELOPMENT AGENCY
DECEMBER 12, 1995
The regular Meeting of the Rosemead Redevelopment Agency was called to order by
Chairman Vasquez at 7:00 p.m. in the conference Room of City Hall, 8838 E. Valley
Boulevard, Rosemead, California.
The Pledge to the Flag was led by Agencymember Taylor
The Invocation was led by Vice-Chairman Clark
ROLL CALL OF OFFICERS:
Present: Agencymembers Bruesch, Imperial, Taylor, Vice-Chairman Clark, and
Chairman Vasquez
Absent: None
APPROVAL OF MINUTES: - None
1. RRA RESOLUTION NO. 95-29 - CLAIMS & DEMANDS
The following resolution was presented to the Agency for adoption:
RESOLUTION NO. 95-29
A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF
ROSEMEAD ALLOWING CERTAIN CLAIMS AND DEMANDS IN THE SUM OF
$292,250.75 AND DEMANDS NO. 3821 THROUGH NO. 3829.
Agencymember Taylor requested a breakdown of the costs for Check No. 3829,
$225,477.56.
MOTION BY AGENCYMEMBER IMPERIAL, SECOND BY AGENCYMEMBER CLARKthat
Resolution No. 95-29 be adopted. Vote resulted:
Aye:
Bruesch, Clark, Vasquez, Imperial
No:
None
Absent:
None
Abstain:
Taylor
The Mayor declared said motion duly carried and so ordered.
2. RRA RESOLUTION NO. 95-30 - ESCROW FLOAT AGREEMENT FOR ROSEMEAD
REDEVELOPMENT AGENCY TAX ALLOCATION BONDS, SERIES 1993A
The following resolution was presented to the Agency for adoption:
RESOLUTION NO. 95-30
A RESOLUTION OF THE ROSEMEAD REDEVELOPMENT AGENCY APPROVING
AN ESCROW FLOAT AGREEMENT AND VARIOUS DOCUMENTS AND
AGREEMENTS TO BE DELIVERED IN CONNECTION THEREWITH
Bill Bothwell, from Orrick, Herrington & Sutcliffe, the Agency's bond counsel, was
present to answer questions and gave a brief explanation of the float investment period. Mr.
Bothwell explained that the escrow float agreement had been recently developed as an
investment technique to take advantage of the periods that bond payment monies on deposit
in the escrow fund are invested This period of.time, or float period, provided investment
bankers with the opportunity to maximize interest earnings which previously had not been
available to agencies making the bond payments. Mr. Bothwell's firm drafted an issuer
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friendly agreement to invest these funds during this six week period. He estimated that the
agreement, which would be placed out to bid, would generate a one time payment to the
Agency of approximately $75,000 to $80,000. The successful bidder would gain the right
to invest the bond payment for a six week period, every year for six years.
Agencymember Taylor asked what the fees involved would be and what is the amount
of the bond money.
Mr. Bothwell responded that their fees and the provider fees would be approximately
$3000 to $4000 each; and the bond amount is $2,750,000 which matures each year for a
period of six years.
Mayor Pro Tern Clark requested an explanation as to where the money is during that
time and what would happen should a financial crisis occur.
Mr. Bothwell responded that the escrow fund is always fully funded in a cash form or
federal securities, and on August 15th, that money could remain idle for six weeks or be
reinvested in a federal security or AAA obligation. Mr. Bothwell assured Council that no risk
is involved that does not already exist.
Executive Director Tripepi clarified for the record Mr. Foutz's statement that the 1993
bond issue was not competitively sold, when actually it was bid and the investment firm with
the lowest net interest cost was presented to the Agency.
MOTION BY AGENCYMEMBER BRUESCH, SECOND BY AGENCYMEMBER IMPERIAL
that the Agency adopt Resolution No. 95-30 which authorizes the Agency Treasurer to direct
Structured Finance to solicit bids on the Escrow Float Agreement. Vote resulted:
Aye:
Clark, Bruesch, Vasquez, Imperial
No:
None
Absent:
None
Abstain:
Taylor
The Chairman declared said motion duly carried and so ordered.
Agencymember Taylor stated that while he agrees with the concept of the bid proposal
he still questions the breakdown of the fees involved.
3. ACCEPTANCE OF WORK FOR FY 1995/96 APPLICATION OF EMULSION SLURRY
SEAL ON VARIOUS STREETS; PROJECT NO. 95-03
MOTION BY AGENCYMEMBER BRUESCH, SECOND BY AGENCYMEMBER IMPERIAL
that the Agency accept the project; authorize the recordation of the Notice of Completion by
the Agency Secretary; and authorize the releasee of the 10 percent retention payment 35
days after the recorded date of the Notice of Completion. Vote resulted:
Aye:
Bruesch, Clark, Vasquez, Imperial, Taylor
No:
None
Absent:
None
Abstain:
None
The Chairman declared said motion duly carried and so ordered.
4. PAYMENT OF DESIGN DEPOSIT FOR PACIFIC BELL SERVICES FOR UNDERGROUND
UTILITY DISTRICTS
MOTION BY AGENCYMEMBER BRUESCH, SECOND BY VICE-CHAIRMAN CLARKthat
the Agency authorize payment of the requested design deposit to Pacific Bell. Vote resulted:
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Aye:
Bruesch, Clark, Imperial, Taylor
No:
None
Absent:
None
Abstain:
Vasquez
The Chairman declared said motion duly carried and so ordered.
5. MATTERS FROM OFFICIALS - None
6. ORAL COMMUNICATIONS FROM THE AUDIENCE ON REDEVELOPMENT AGENCY
MATTERS - None
7. ADJOURNMENT
There being no further action to be taken at this time, the meeting was adjourned at
7:30 p.m. The next regular meeting is scheduled for December 26, 1995, at 7:00 p.m.
Respectfully submitted:
Agency Secretary
APPROVED:
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