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File Number: 17-700 <br />Name of Firm Capacity <br />Raymond James & Associates, Inc. Underwriter <br />Kitahata & Company Municipal Advisor <br />Jones Hall, APLC Bond Counsel & Disclosure Counsel <br />U.S. Bank National Association Trustee & Escrow Agent <br />Raymond James was chosen through a request for proposals to a select list of underwriters <br />experienced in the refunding of California TABs. Kitahata & Company was chosen last year via a <br />separate request for proposals for municipal advisors that will expire with the issuance of the <br />Refunding Bonds. The primary reasons for the selection of both firms included relevant <br />experience, pricing and structuring creativity. <br />Jones Hall has been the City’s bond counsel dating back to 1979. Jones Hall ranks as one of the <br />top bond counsel in the number of state and local bond issues in California during each of the <br />past ten years, and similarly has ranked as one of the top disclosure counsel in California during <br />this same period. U.S. Bank is the existing bond trustee for the 2008 TABs to be refunded. U.S. <br />Bank is one of the top five municipal bond trustees in the country and most recently served as <br />trustee for the City’s 2016 Refunding Lease Revenue Bonds. U.S. Bank also serves the City with <br />two local branch offices. The municipal advisor for the Refunding Bonds attests that the fees <br />proposed by Jones Hall and U.S. Bank are equal to or below comparable fees for such services <br />charged for similar financings. <br />All fees associated with issuing the Refunding Bonds will be paid from bond proceeds. <br />Sources and Uses of Funds <br />Staff projects the sources and uses of funds for the Refunding Bonds financing transaction as <br />indicated in Table 3 in Attachment 1. <br />Sources of funds include original issue premium on the Refunding Bonds because it is assumed <br />that coupons will be higher than yields - if this is not the case and coupons go lower to be closer <br />to yields, the premium will go down and the par amount of Refunding Bonds will go up, but overall <br />debt service will be about the same because of the lower coupons. The Refunding Bond <br />proceeds will be deposited in the Series 2008 refunding escrow to retire the outstanding 2008 <br />TABs on the projected closing date of 3/21/18. The City hopes to purchase a surety in place of <br />funding a debt service reserve fund, because this should increase refunding savings. The <br />underwriter’s discount is a fee paid to the underwriter for structuring and marketing the Refunding <br />Bonds. The costs of issuance account funds pay for legal, financial advisor, trustee, printing and <br />other issuance costs including a City administrative fee to pay for City staff time. <br />Authorizing Resolutions <br />The City acting as the Successor Agency must approve the following resolution to issue the <br />Refunding Bonds. <br />Resolution of the Successor Agency to the Redevelopment Agency of the City of San <br />Leandro Approving Documents and Actions Relating to the Refinancing of 2008 TABs - <br />Page 3 City of San Leandro Printed on 12/12/2017 <br />410