SR-414-002 (4)
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OCT 0 9 f98f
C/ED:EDD:SW:ed
Agency/CouncIl Meeting 10/9/8~
Santa MonIca, CalifornIa
TO:
Redevelopment Agency Board/CIty CouncIl
FROM:
CIty Staff
SUBJECT: Recommendation to Adopt Necessa"y Resol utions to
FInalIze The Issuance of Ocean Park Tax AllocatIon
Bonds, Se~les 1984.
INTRODUCTION
ThIS report t"ansmIts 1) an Agency resolutIon to award the Ocean
Park Bonds to the best bidde" and rejectIng all other bIds; and
2) a CIty counCIl "esolutlon apprOVIng the Issuance of the bonds
by the Redevelopment Agency.
BACKGROUND
On September 11, 1984, the Redevelopment Agency authorIzed the
Issuance of $5,700,000 of Ocean Park Tax AllocatIon Bonds and set
procedure and the schedule for receIpt of proposals, and
placement/retIrement of the bonds.
The approved schedule re-
qUIres that the Agency/CounCIl take fInal actIon on October 9,
1984 to complete the bond process and have funds avaIlable to the
Agency on or about October 25, 1984.
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DISCUSSION
Staff, flnancial consultant (Paine Webber), and bond counsel
(Morrlson & Foerster) have completed all necessary actions prece-
dent to receIpt of bond bIds. BId proposals wIll be receIved at
the offlce of MorrIson and Foer ster on October 9, 1984 at 10: 00
A.M. FollowIng the bId open~ng, PaIne Webber wIll determIne
through analysis WhICh bid IS best and make a recommendatIon to
Agency/Council for approprIate actIon that evenIng. The best bId
must be attached tv the fInal bvnd resvlution prIor to adoptIon
by the Agenc y.
The resolutIons WhICh requlre Agency/CouncIl actIon fOllowIng
recelpt of bids are attached to thls report and Include 1) an
Agency resal utlon to award the bond s to the best b Idder and
reJectlng all other blds ; and 2) a Councll resolutlon whlch ap-
proves the Issuance of $5.7 '1111110n of tax allocatlon bonds by
the Redevelopment Agency. AdoptIon of these resolutlons wIll
complete the affIcal actions requIred to place the Ocean Park Tax
AllocatIon Bonds and have net bond proceeds deposited in the ap-
proprIate Agency accounts to fInance necessary prOject
Improvements.
FISCAL IMPACT
Adoptlon of the attached bond resolutIons is wlthln the ap-
proprIatIon autho~lty granted the Redevelopment Agency as part of
the FY84-85 budget. Net bond proceeds have been budgeted In FY
8~-85 revenue account number 18-934-252-000-000.
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RECOMHENDATIONS
Staff recommends that the Agency:
1. Adopt a ResolutIon of the Redevelopment Agency of the CIty
of Santa MonIca awa~dIng $5,700,000 bonds of saId Agency to
the best bIdder, as eVIdenced In the attached ExhIbIt A, and
rejectIng all othe~ bIds.
Staff recommends that the CIty CouncIl:
1. Adopt the attached Resolution of the City Council of the City
of Santa MonIca, apP""'ovIng the Issuance of $5,700,000 prIn-
clpal amount of tax allocatIon bonds of the Redevelopment
Agency to fInance portIons of the cost of redevelopment proj-
ects known as Ocean Park Project Nos. 1(A) and l(B).
Prepared by: SIdney L. WhIte
Ocean Park Project Manager
EconomIc Development DIVISIon
CommunIty and EconomIC Development Department
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LIST OF ATTACHMENTS
A. A Resolut~on of the Redevelopment Agency of the City of Santa
HOYllca awardIng $5,700,000 bonds of said Agency to the best
bIdder and reJecting all other bIds.
B. A ResolutIon of the CIty CouncIl of the CIty of Santa MonIca,
Callfo~nla, apprOVIng the Issuance of $5,700,00 p~lnclpal
amount of tax allocation bonds of the Redevelopment Agency of
the CI ty of San ta MonIca to fInance portIons of the cost of
nedevelopment p~oJects In saId City know~ as Ocean Park ProJ-
ect Nos. 1(A) and 1(B).
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SUPPLEMENTAL IN~qRM~TION FOR ~TEM ~C/RA-1 OF OCTOBER 9, 1984
Sea 1 ed proposal s for the purchase of $5,700,000 Ocean Park
Redevelopment Project Tax All~catlon Bonds, Series 1984, pursuant
to Resolut10n No. 392(RAS) and the Notice of Sale dated September
11, 1984, were received today in Los Angeles. The bidders,
prIces bid and net interest cost under each proposal, determined
1n the manner set forth in said Notice of Sale, are as follows:
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Net Interest Avg. Net
Submit:,ted "by Bld Price Cost Int. Rate
Paine Webber $5,557,540.35 $9,621,567.15 10.8405%
E.F. Hutton $5,558,094.70 $9,549,012.80 10.758845%
& Company
Sm1- th Barney, $5,557,500.00 $9,693,835.00 10.922%
Harris Upham
Bld No.
2
Staff reports that on the basis of the lowest net interest
cost determIned as set for th above, the proposal 1d en ti fi ed as
BId No.2 (Exh1bit A) 15 the best bid, with a net interest cost
of $9,549,012.80, and that sald proposal conforms to the terms of
the Notlce of Sale.
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BID FORM
PROPOSAL FOR I
OCEAN PARK REDEVELOPMENT PROJECT BONDS
October ~,1984
Redevelopment Agency
of tbe CIty of Santa MOnIca
Lad1es and Gentlemen:
In beh.Jlf of a group whIch we have formed, consisting of the firms hereinafter named, and
pursuant to the Notice of Sale dated September 11, 1984, We oHer to purchase $5,700,000 prinCipal
amount, all or none, of the bonds of the Redevelopment Agency of the CIty of Santa Monica deslg~
nated as "Ocean Park Redevelopment Project Tn Allocation Bonds, Series 1984; particularly
descnbed in said Notice, with mterest as set forth m the foIlowlng schedule, entItled "Schedule of
Interest Rates," and to pa)' therefor the principal amount thereof -\-pl:.:.:: :. "i';~i;".~u.u> ....r ~ ]
[Jess a dlScount of $ fL//,Q05: 30 J, maktng a total sum of $~-~.%; 0&1'1. 7,) plus interest accrued
on such bonds to the date of delivery thereof,
SCHEDULE OF INTEREST RATES
Frinr:'Plll In t~rest
Amount Mattlnty Dale Rale
$ 95,000 October 1, 1987 c,;,7S" o/c;
105,000 Oclober 1-, 1988 0,0 o/c;
115,000 October 1, 1989 C1,2 %
130.000 October 1. 1990 GJ.i %
145,000 October 1,1991 ~. ~1 o/c
155,000 October 1,1992 ~lS ~c
li5,OOO October 1, 1993 _LO.O o/t;
190,000 October I, 1994 10./ %
210,000 October 1,1993 _It), 1- ~
235,000 October 1. 1996 10.3 %
255,000 October I, 1997 .I(), 'f t;C
285,000 October 1.1998 _fJJ.S %
310,000 October I, 1999 10,1.0 %
3,295,000 Octoberl,2006 10, 7.s- %
This bid IS made subject to aJl of the terms and conditions of the Notice of Sale dated Septem.
her 11, 1984 Bnd neretofore publl5hed, all of \\hlCh terms and conditions are made a part hereof as
fully as though set forth in this bid.
This bid is subject to acceptance within twenty-six (28) hours aher the e.\plration of the time
for the receIpt of bids, as speCIfied in said Notice of Sale.
There IS enclosed herewith a certified or cashier's check for $250,000 parable to the order of the
Rede\'elopment Agency of the City of Santa Momca.
There IS submItted herewIth a statement (which shall not constitute a part of this bid) of the
total net interest cost in dollars and the average net interest rate determined thereby under this bid.
We hereby request that :2.SV copies of the OffiCIal Statement be furnished to us in
aCCQrdance wllh the l'';olice 01 Sale,
Very truly yours,
B~Z12~ Com. :
~nn R. GIyn~~
Vice President
Inc.
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LIST OF SYNDICAtE MEMBERS
(Subject to Change Prior to Delivery of Bonds)
E. F. Rutton & Co., Inc., F~rst Boston Corp.,
Merr:tll Lynch Cap! tal Markets', John Nuveen &
Co., Inc.r Stone & Younsber9, J.C. Bradford &
Co., MuniciCorp of California, Diversified
Securities, Inc., A.G. Edwards & Sons, Inc.,
~FC ~ecu~it~es corp.
STA TEMENT OF TOTAL NET INTEREST
COST AND AVERAGE NET INTEREST RAT)::
(For Information Purpose. Only)
'J]1e total net interest payable on the bonds dUrin~ the life of the issue under this bid
$ <5',5 tJ9., OJ 2.80 and the average net interest rate is 10. '.('61 '15 %. For the purpose of detenninh-
such amount of net interest. the term bonds are deemed to mature in accordance with the mandato'
redemption schedule set forth in the Notice of Sale.
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