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8.3.C. - Page 4 <br /> ALTERNATIVES <br /> The Council may reject this recommendation to engage the firms presented in this report to <br /> provide the professional services needed to successfully sell refunding bonds. Staff will need to <br /> obtain proposals from other firms since staff does not have the expertise to perform these <br /> functions: this would delay the issuance of refunding bonds by up to two months. Council could <br /> also direct staff to sell the refunding bonds through a negotiated sale with a preselected <br /> underwriter rather than through the competitive process; staff would need to obtain proposals <br /> from several underwriters which could result in less NPV savings and potentially delay the <br /> refunding. Council could also elect not to pursue refunding the bonds at this time and forego the <br /> anticipated savings. <br /> FISCAL IMPACT <br /> Projected savings for the refunding are approximately $1,466,375 on a net present value basis, <br /> or approximately $105,000 annually. These savings are net of all bond issuance expenses, <br /> which are budgeted at approximately $309,300. <br /> Each of the firms has proposed fees and the reimbursement of expenses on a contingent basis. <br /> If for any reason the proposed refunding bonds are not sold, the City will have no out-of-pocket <br /> expenses associated with the services provided by these firms other than $2,500, which will be <br /> paid to bond counsel to conduct required disclosure training for staff and Council at a later date. <br /> The cost for each member of the financing team is as follows: <br /> William Euphrat Municipal Finance, Inc, financial advisor $ 45,000 <br /> Jones Hall, bond counsel $ 46,000 <br /> Quint &Thimmig, disclosure counsel $ 25,000 <br /> Total $116,000 <br /> The General Fund will be responsible for $2,500 for required disclosure training. All expenses <br /> associated with the refunding will be paid from the proceeds of the refunding bonds. <br /> ENVIRONMENTAL REVIEW <br /> This activity is not a project under CEQA as defined in CEQA Guidelines, section 15378, <br /> because it has no potential for resulting in either a direct physical change or a reasonably <br /> foreseeable indirect physical change in the environment. <br /> <DIRECTOR> <br /> KIMBRA MCCARTHY <br /> ASSISTANT CITY MANAGER OF ADMINISTRATIVE SERVICES <br />