8E Consent 2011 0919 - Laserfiche WebLink

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CITY OF SAN LEANDRO STAFF REPORT DATE: September 19, 2011 TO: Lianne Marshall, Interim City Manager FROM: Jim O'Leary, Interim Finance Director SUBJECT PROJECT /PROJECT DESCRIPTION: APPROVED AND FORWARDED TO CITY COUNCIL Lianne Marshall Interim City Manager RESOLUTION DESIGNATING FINANCIAL ADVISOR, UNDERWRITER, AND BOND COUNSEL FOR PENSION OBLIGATION BOND FINANCING SUMMARY AND RECOMMENDATION The Finance Committee recommends that the City Council approve the resolution designating the Financial Advisor, Underwriter, and Bond Counsel for the pension obligation bond financing. This transaction would refund the City's existing Ca1PERS side fund obligation. 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 the 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 the 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 seven 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. An agreement with Public Management was approved by the City Council on July 5, 2011. The agreement's compensation schedule calls for, upon successful closing of the bonds, a fixed fee payment of $50,000. The fees for the financial advisor services are included in the cost of issuance and paid from the proceeds of the pension obligation bonds.