City OKs bond sale, no competitive bidding
The Los Angeles City Council gave final approval Wednesday to negotiate the sale of $500 million in bonds with a select group of underwriters, overruling the advice of the city’s top administrator that taxpayers would do better to seek competitive bidding.
Councilmen Tony Cardenas and Ed Reyes pressed City Administrative Officer Bill Fujioka unsuccessfully to declare that a negotiated sale might be the better deal, but Fujioka refused.
The administrator agreed to the negotiated deal to keep the bond sales on schedule.
The bonds would pay for construction of city buildings, including a Police Department headquarters.
Los Angeles-area firm De La Rosa & Co. and California firm Siebert Brandford Shank and Co. would each get 30% of the bond as senior co-managers of the bond issue, while two national firms would get 20% each.
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