Finance Highlights 2011 0909 - Laserfiche WebLink

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CITY OF SAN LEANDRO MEMORANDUM DATE: September 9, 2011 TO: Finance Committee FROM: Lianne Marshall, Interim City Manager BY: Jim O'Leary, Interim Finance Director SUBJECT: Draft Resolution Designating Financial Advisor, Underwriter, and Bond Counsel for Pension Obligation Bond Financing SUMMARY AND RECOMMENDATION Staff recommends that the Finance Committee review and recommend the resolution designating the Financial Advisor, Underwriter, and Bond Counsel for the pension obligation bond financing. Staff also recommends that the Finance Committee forward the resolution to City Council for adoption on September 19, 2011. BACKGROUND The professional financing team for the issuance of pension obligation bonds is made up of the financial advisor, underwriter, and bond and disclosure counsel. Along with the Finance staff and the City Attorney, this group of financial specialists is required to successfully issue municipal debt. The costs for these services are included in the cost of issuance of the pension obligation bonds. Financial Advisor Services The financial advisor provides a range of services required for structuring and issuing municipal debt. Services include developing a detailed timetable and schedule, assembling the financing team, arranging the comprehensive rating agency presentations, reviewing all documents related to the debt issuance, including the preliminary and final official statement, coordinating sale of the debt, and overseeing the closing. The Finance Department distributed an updated letter seeking proposals for Financial Advisor Services on April 28, 2011. A total of four qualified firms responded to the City's RFP. Following the review of the proposals and presentations by the firms, a staff committee selected Public Financial Management, Inc. The fees for the financial advisor services are included in the cost of issuance and paid from the proceeds of the pension obligation bonds.