CARDENAS DEFENDS NEW NEGOTIATION POLICY FOR BONDS.Byline: RICK ORLOV Staff Writer The Los Angeles City Council  The Los Angeles City Council is the governing body of the City of Los Angeles, California, United States. signed off Wednesday on plans to negotiate the sale of $500 million in bonds to fund a new police headquarters and a second city building. The approval, which reverses a decade-old city policy that awarded bond underwriting through competitive bidding Competitive bidding A securities offering process in which securities firms submit competing bids to the issuer for the securities the issuer wishes to sell. competitive bidding 1. , comes despite concerns it could cost the city more money. But Councilman Tony Cardenas Tony Cardenas served in the California State Assembly. In the Assembly, he had the powerful position of chair of the Budget Committee. He is now a Los Angeles City Councilman, representing the 6th district, which includes parts of the San Fernando Valley. defended the deal, which also specifies that 30 percent will be sold by California firms. ``No one can say until these bonds go on sale whether or not this is a gain or loss for the city,'' a visibly angry Cardenas said. ``If there is a loss, it will be on the head of one official, Tony Cardenas, and I'm prepared to take the responsibility for this.'' The bonds will be sold by firms including De La Rosa De La Rosa is a surname in the Spanish language meaning of the Rose
1. leg (1). 2. crus ( 2). shank n. The part of the human leg between the knee and ankle. and Co. and Lehman Bros BROS Brothers BROS Benefits and Retirement Operations Section (King County, Washington) BROS Barnes and Richmond Operatic Society (London, UK) . Cardenas pushed through the shift in city policy last week and said firms have already agreed to handle the account for a reduced price, saving the city about $1 million. Cardenas and other council members have voiced concerns that the competitive process used by the city for the past 10 years has excluded many smaller, local financial institutions. But City Administrative Officer Bill Fujioka said that while he recognized what the council was trying to do, he believed it was better to have an open competitive bidding system. ``I will not change what I told this council last week, last month or last year,'' Fujioka said. ``But I recognize the goals you have, and it's a public policy debate that you have to resolve here.'' Questions also were raised over the role of Fernando Guerra, a lobbyist who works as a senior vice president for De La Rosa & Co., and is close to Cardenas. ``This dialogue has created an environment where we are feeding in to critics by our actions,'' Councilman Ed Reyes Ed P. Reyes has served on the Los Angeles City Council since April 2001. A native of Northeast Los Angeles, Councilmember Reyes represents many of the neighborhoods he grew up in including Lincoln Heights and Cypress Park. said. ``I want to be clear that the integrity of this council is on the table and that we are taking the proper action.'' Fujioka said he was comfortable with the plan but asked that a full study be conducted for future bond sales. Cardenas offered assurances that the process would go smoothly and was fair. ``There are a lot of inaccuracies out there,'' Cardenas said. ``There is a lot of speculation about what will happen. Things are going to turn out well.'' rick.orlov(at)dailynews.com (213) 978-0390 |
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