HomeMy WebLinkAbout1988-03-01; Housing & Redevelopment Commission; 95; Approval of Out-of-State TravelHOUSING AND - EDEVELOPMENT COMMIS!-)N - AGENDA BILL
\B# 95 TITLE:
ATG. 3/l/88 APPROVAL OF OUT-OF-STATE TRAVEL-
IEPT. FIN REDEVELOPMENT BOND ISSUE
RECOMMENDED ACTION:
If the Housing and Redevelopment Commission concurs, your action is to adopt
Resolution No. !oo approving out-of-state travel.
ITEM EXPLANATION
The Carlsbad Redevelopment Agency will be marketing tax allocation bonds during
the month of March 1988. As part of this process the agency will be asking
Moody's Investor Service to provide A bond rating to assist the market place in
understanding or evaluating the risk associated with our issue. A bond rating
is an important part of the bond issue process due to its direct affect on
interest rates. A high bond rating, which indicates security or safety, will be
translated into lower rates for the agency and ultimately more funds available
for the redevelopment projects.
Both the Financial Advisor and Bond Counsel suggest that a meeting with
representatives of Moody's Investor Service would be beneficial in obtaining
favorable rating for this issue. If such a meeting results in a higher bond
rating, the cost of the trip to New York will be more than offset by the savi
in interest payments over the life of the issue.
a
ngs
In addition, the agency's advisors have recommended that face-to-face meetings
with several bond insurance companies who may be asked to provide insurance for
our issue would also be valuable. If the agency is unable to obtain a suitable
rating from Moody's , A bond insurance company may be asked to provide coverage
for the value of the issue.
Staff is recommending that the Commission authorize the following staff and
commission members to travel to New York to attend the meetings described above:
Raymond R. Patchett City Manager/Executive Director
Martin Orenyak Community Development Director
Christopher R. Salomone Community Redevelopment Director
James F. Elliott Finance Director
Council/Commission Representative
In addition, representatives of both Bond Counsel and the Financial Advisor will
attend these meetings.
FISCAL IMPACT
The estimated cost of travel and lodging for the City/Agency representatives
will be approximately $5,000. These costs are to be charged to the Bond Issue
as costs of issuance. The use of these funds to support travel costs is
allowable and will not significantly reduce the funds available for projects.
Although absolute figures are impossible to provide, if this series of meetings
results in a higher bond rating than would otherwise have been received, the
total cost of the trip could be offset by savings in interest costs.
EXHIBITS
1. Housing and Redevelopment Commission Resolution No. /DO .
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
RESOLUTION NO. 100
A RESOLUTION OF TBE HOUSING AND REDEVELOPMENT COMMISSION OF TEE CITY OF CARLSBAD, CALIFORNIA, APPROVTNG
OUT-OF-STATE TRAVEL.
WHEREAS the Redevelopment Agency of the City of Carlsbad is anticipating
the issuance of tax allocation bonds during the months of March and April of
1988, and
WHEREAS the Commission wishes to receive the best bond rating and/or bond
insurance possible to ensure the marketability of the issue, and
WHEREAS the Commission finds that meetings with rating agency members and
bond insurance company representatives will improve their understanding of
Carlsbad's agency area local economic conditions and the quality of the ,
agency's issue,
NOW THEREFORE, THE HOUSING AND REDEVELOPMENT COMMISSION OF THE CITY OF
CARLSBAD DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:
That the following staff and Commission members hereby authorized to
travel to New York city to attend meetings with rating agency and insurance
company representatives and that such travel may include overnight
accommodations for more than one night, and that the allowance for meals
shall be increased to $50.00 per day for this trip:
Raymond R. Patchett Christopher Salomone
James F. Elliott Claude A. Lewis
John Mamaux
xxx
xxx
xxx
.xXx
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
PASSED, APPROVED AND ADOPTED, at a Special Meeting of the Redevelopment
Agency Commission of the City of Carlsbad, California, held on the 1st day of
March, 1988, by the following vote, to wit:
AYES:
NOES :
ABSENT: I
ABSTAIN:
ATTEST
A- ALETHA L. RAUTENkRANZ, City
(SEAL)