Finance Highlights 2011 0617 - Laserfiche WebLink

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CITY COUNCIL FINANCE COMMITTEE June 17, 2011 8:15 a.m. — 9:45 p.m. San Leandro City Hall 835 E. 14 Street San Leandro, California (Sister Cities Gallery) HIGHLIGHTS Committee Members: Mayor Cassidy, Councilmember Gregory, Councilmember Souza City Staff Present: City Manager Hollister, Assistant City Manager Marshall, Finance Director Vesely, Deputy Finance Director Rodriguez, Budget and Compliance Manager Perini, Sr. Accountant Galvin, Administrative Assistant III Perez Public Present: None The meeting was called to order at 8:15 a.m. 1. Update on Financial Advisor RFQ Process Assistant City Manager Marshall introduced Finance Director Vesely to discuss the update of the Request for Qualification (RFQ) process for a Financial Advisor. Vesely reported that there were seven responses to the RFQ and upon review of the proposals, three were chosen for an interview. The three firms were: Public Financial Management (PFM), North Cross Hill and Ash, and KNN. An interview panel consisting of the Assistant City Manager, Lianne Marshall, Community Development Director Luke Sims, and Finance Director Tracy Vesely interviewed the project teams for the top three finalist firms. Although all three firms met the qualifications, the panel felt that PFM best fit the needs of the City. PFM has a great understanding of the City of San Leandro and knowledge of the City's history of debt financing and has a lot of experience with pension obligation funds. Mayor Cassidy inquired about the fee rate and if the City has entered into a formal contract. Vesely informed the Committee that at this time the exact fee is unknown since it would be determined by the bond issuance. Vesely also stated that there was no formal agreement at this time and that this would be coming forward to City Council. Mayor Cassidy requested that staff obtain a letter of understanding from PFM, for the record. Mayor Cassidy also inquired about the timeline for the Public Safety Side Fund Refinancing. Vesely stated that this is a lengthy process; legally the City is required to submit documentation to the courts for judgment on the refinancing. Vesely explained that anytime a debt is associated with an actuarial liability, it must be approved by the court. This is a 60 to 90 day process. All of the firms that staff has contacted have stated that the process may take 5 -6 months. At this time, the City of Santa Cruz is only city to have completed a side fund refinancing with a bond issuance. Vesely stated that Pleasanton was able to move quickly with its side fund refinancing 1