CITY OF LOS ANGELES CALIFORNIA

Transcription

1 JUNELAGMAY City Clerk HOLLY L. WOLCOTT Executive Officer CITY OF LOS ANGELES CALIFORNIA Office of the CITY CLERK Council and Public Services Room 395, City Hall Los Angeles, CA General Information ~ (213) Fax: (213) When making inquiries relative to this matter, please refer to the Council File No. ANTONIO R. VILLARAIGOSA MAYOR June 14, 2011 To All Interested Parties: The City Council adopted the action(s), as attached, under Council File No , at its meeting held June An Equal Employment Opportunity- Affirmative Action Employer

2 TO: FROM: LOS ANGELES CITY COUNCIL COMMUNICATION COUNCILMEMBER BERNARD C. PARKS, CHAIR COUNCILMEMBER JOSE HUIZAR, MEMBER BUDGET AND FINANCE COMMITTEE File No COMMUNICATION FROM CHAIR AND MEMBER, BUDGET AND FINANCE COMMITTEE relative to the selection of an underwriting team for the anticipated 2011 Tax and Revenue Anticipation Notes financing. Recommendations for Council action: 1. NOTE and FILE the City Administrative Officer (CAO) report dated May 5, 2011, relative to the selection of an underwriting team for the anticipated 2011 Tax and Revenue Anticipation Notes financing. 2. INSTRUCT the CAO to include an updated List of City Bond Financings with each approved deal once the new RFP proposals come forward to Council. Fiscal Impact Statement: Financial Policies. The CAO reports that this report is in compliance with the City's Community Impact Statement: None submitted. SUMMARY At its meeting of May 23, 2011, the Budget and Finance Committee considered a CAO report dated May 5, 2011, relative to the selection of an underwriting team for the anticipated 2011 Tax and Revenue Anticipation Notes (TRAN) financing. The CAO reports that it has selected J.P. Morgan Securities LLC (senior manager), De La Rosa & Co. (co-senior manager), Citigroup Inc. (co-manager), and Loop Capital Markets LLC (co-manager) to serve as the underwriting team for the above referenced 2011 TRAN financing. Additional details are provided in the CAO report attached to the Council file. During the Committee discussion, a CAO representative provided a summary of the selection process and responded to related questions from the Committee. The Committee Chair requested that the CAO spreadsheet of a List of City Bond Financings from July 2008 to November 2010 be attached to the Committee report for background information and that the CAO include an updated list with each approved deal once the new RFP proposals come forward to Council. After consideration, the Budget and Finance Committee Chair and Member recommended to note and file the CAO report and instruct the CAO to include an updated List of City Bond Financings with each approved deal once the new RFP proposals come forward to Council. This matter is now forwarded to the Council for its consideration.

3 BERNARD C. PARKS, Chair BUDGET AND FINANCE COMMITTEE JOSE HUIZAR, Member BUDGET AND FINANCE COMMITTEE MEMBER PARKS: SMITH: ROSENDAHL: HUIZAR: KORETZ: VOTE YES ABSENT ABSENT YES ABSENT ep Attachment _rpt_bfc_ Not Official Until Council Acts-

4 ITEMS A AMENDING MOTION This summer, the City of Los Angeles will once again issue Tax and Revenue Anticipation Notes (IRAN) to cover City operating expenses while we await our City revenue and tax streams. The City Administrative Officer has recommended the selection offour firms to serve as the City's underwriting team for the IRAN issuance: J.P. Morgan Securities LLC (senior manager), De La Rosa & Co. (co-senior manager), Citigroup Inc. (comanager) and Loop Capital Markets LLC (co-manager). Of these four firms, two are smaller, minority-owned financial institutions: De La Rosa & Co. and Loop Capital Markets LLC. In light of the ongoing discussions related to the draft Responsible Banking Ordinance (CF ) and additional concerns of the Council re: awarding City business to financial institutions that are alleged to have de-frauded the City through municipal bond bid-rigging (CF ) or otherwise acted illegally or contrary to the City's and our residents' best financial interests, such as the City lawsuit alleging illegal foreclosure activity by Deutsche Bank (CF ), it is prudent that our City Administrative Officer is taking steps to award business to firms that are not involved in these activities, such as De La Rosa & Co. and Loop Capital Markets LLC. However, it is not currently reflected in our City's Council File Management System exactly what these steps are, and what the City Administrative Officer's future plans regarding this type of activity are. I THEREFORE MOVE that the City Administrative Officer submit a written report to Council within 60 days about what steps the City is taking to work with and build the capacity of financial firms that are small or medium-sized, and/or women or minority-owned, as well as additional steps the City can take to support these types of businesses in the future. C) :a.,- PRESE~ffiDBY~~N ~ Councilmember, 7ili District ~,JUN 1 0 ADOPTED JUN 1 il 2011 UJS AM(ItiES Cl'll C ll!icil SECONDEDBY,4-tr!t$. ~~

5 List of City Bond Financings From 'Jul).' 2008 to NoVeinber 2010 jmunicipa! Improvement C'Ofj)Oratoin'of Lo5-Arig6Jes lease Revenue_ Bonds, Angeles Wasterwat~r-SYster:n Re~~-~l:i~ B<?_nd-s:' R-~fwidiO_g:S~nes 2009-~ Bond F!nanc!ngs UW!nfo.:ds

6 Band F!nancings UW!nfa.x!s lssuu Nama com orne? C!os!n Data ParAmount Los Angeles Wastewater System Revenue Bonds, Series 2010-A (Taxable Build America Bonds) and Series 2010-B (Taxable Recovery Zone EConomic Development Bonds) Neaotiated 10/21/2010 $ ,00 Los Angeles Wastewater System Subordinate Revenue -Bonds, Series A Tax-Exempt) Neaotiated 10/21/2010 $ ,. Community Facilities-District No. 8-(Leqerids at Casacades) Series 201Qi..A NeQo!iated 11/18/2010 $ ,00 Stone & Younnbern LLCfsenior Mananer 100%' Municipal Improvement Corporatoin of Los Angeles Lease Revenue Bonds, Series 2010-A (Capital Equipment) and Refunding-Series 2010-D (Capital Equipment and Real Property) Neaotiated 11/23/2010 $49 060,000,00 Municipal Improvement Corporato!n of LOs Angeles Lease Revenue Bonds, Series 2010-B (Capital Equipmeilt} {Taxable Recovery Zone Economic Development Bonds) and Series 2010-C.(Real Property) (Taxable Recovery Zone Economic Underwriters Siebert Brandfo.rd Shank & Co., LLC (Senior Manager, 40%) De La Rosa & Co. (Co-Manager, 30%} Stone & Younnber~ LLC rco-mananer 30%\ Cabrera Capital Markets, LLC (Senio~~(anager, 75%) %) Backstrom McCar!ev BerN-& Co., LLC Co-MaOaoer 25% De La Rosa & Co. {Senior Manager, 50%) Siebert Brandford Shank & ~~ LLC (Co-Mana~~r, 25%) Estrada Hinoiosa & Co. Inc. Co-Marlaaer 25% Siebert Brandford Shank & Co., LLC (Senior Manager, 50%) De La Rosa & Co. (Co~Manager, 25%) Develooment Bonds) Nec101iated 11/23/2010 $ Estrada Hinoiosa & Co. Inc. fco-manaaer 25%) List of City Bond Financings From July 2008 to November 2010