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Resolution Designating Financial Advisor, Underwriter, and Bond Counsel September 9, 2011 <br />Underwriter <br />The underwriter is the firm that purchases the bonds from the bond issuer and resells them to <br />investors. The underwriter assists the City and the Financial Advisor in structuring the bond <br />issue, presenting the transaction to credit analysts, and reviewing the bond and disclosure <br />documents. The underwriter provides expertise and advice related to bond market conditions, <br />develops a marketing strategy to market the bonds to investors, and ultimately sets the interest <br />rate on the bonds. <br />The Finance Department distributed a request for proposals for underwriter services on June 30, <br />2011. A total of four qualified firms responded to the City's RFP. Following the proposal <br />review and reference checks, staff, with the assistance of the Financial Advisor, selected the firm <br />Wedbush Securities. The fees for underwriter services are included in the cost of issuance and <br />paid from the proceeds of the pension obligation bonds. <br />Bond Counsel <br />Bond and Disclosure Counsel is required for the preparation of necessary legal documents for the <br />issuance of the pension obligation bonds. Bond Counsel provides the legal opinion delivered <br />with the bonds confirming that the bonds are valid and the binding effect of the bonds. Services <br />include preparing documents necessary for the authorization, issuance, sale, and delivery of the <br />bonds (including the pension obligation validation process), identifying and causing the <br />disclosure of all material legal proceedings, issuing a tax opinion, providing an unqualified legal <br />opinion related to the transaction, and providing other specialized legal advice. <br />Staff has selected Jones Hall as Bond Counsel for the refunding of the Ca1PERS side fund <br />obligation. The firm has served the City and Redevelopment Agency as Bond Counsel for the <br />past thirty -five years. The fees for bond and disclosure counsel are included in the cost of <br />issuance and paid from the proceeds of the pension obligation bonds. <br />CONCLUSION <br />Staff recommends that the Finance Committee review and recommend the resolution designating <br />the Financial Advisor, Underwriter, and Bond and Disclosure Counsel for the pension obligation <br />bond financing. Staff also recommends that the Finance Committee forward the resolution to <br />City Council for adoption on September 19, 2011. <br />2 <br />