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7.1.B. - Page 4 <br /> ALTERNATIVES <br /> The Council may reject this recommendation to engage the firms presented in this <br /> report to provide the professional services needed to successfully sell refunding bonds. <br /> Staff would need to obtain proposals from other firms since staff does not have the <br /> expertise to perform these functions, which would delay the issuance of refunding <br /> bonds by up to two months. Council could also elect not to pursue refunding the bonds <br /> at this time and forego the anticipated savings. <br /> FISCAL IMPACT <br /> Projected savings for the refunding are approximately $1,165,000 on a net present <br /> value basis, or approximately $143,600 annually in future dollars. These savings are <br /> net of all bond issuance expenses, which are budgeted at approximately $372,000. <br /> With the exception of the rating fees ($50,000), the official statement posting fees <br /> ($1,800) and bidding platform fees ($2,000) and minor statistical fees for data presented <br /> in the official statement, all issuance expenses will be contingent on the successful <br /> closing of the bond issue. The bonds will not be submitted for a rating until market <br /> interest rates indicate that the refunding bonds will result in material savings; however, <br /> there will be four to five week period between submission of the documents for a rating <br /> and the sale date, and there can be no assurance that rates will not increase during this <br /> period. <br /> ENVIRONMENTAL REVIEW <br /> This activity is not a project under CEQA as defined in CEQA Guidelines, section <br /> 15378, because it has no potential for resulting in either a direct or foreseeable physical <br /> change in the environment. <br /> AUDREY RAMBERG, <br /> INTERIM FINANCE DIRECTOR <br /> ROBERT B. BELL <br /> CITY MANAGER <br /> ATTACHMENTS <br /> 1. Resolution appointing consultants in connection with the refunding <br /> 2. Bond Refunding Analysis <br /> Page 4 of 4 <br />