AgdaPkt 2000-02-28 - Laserfiche WebLink

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~ D-! REP" To the Honorable Mayor From!; February 28, 2000 Subject Initiation of legal proceedings to establish a special financing district for public infrastructure improvements incidental to the Pacific Shores Center project (the "Project"). Recommendation That the City Council adopt a resolution 1) appointing consultants in connection with the formation of a community facilities district and the issuance of bonds, 2) authorizing the Finance Director to accept deposits from the Project developer, and 3) approving a deposit/reimbursement agreement between the City and the Project developer. Mello-Roos District Formation and the Sale of Bonds -Tonight's actions comprise the initial steps in forming a community facilities district. A community facilities district is a special district established to finance certain qualified public infrastructure improvements. Such. districts may also be established to pay for certain public services. The resolution before the Council authorizes staff to enter into professional services agreements with the following: William Euphrat Municipal Finance, Inc. will act as the City's financial advisor for a contingent fee of $45,000. Nossaman, Guthner, Knox & Elliot, LLP, will act as bond counsel for a contingent fee of $50,000, and Quint & Thimmig LLP, to act as disclosure counsel for a contingent fee of $30,000. It also appoints Stone & Youngberg LLC as the underwriter of bonds for the proposed community facilities district. Underwriters' fees take the form of a discounted purchase of the securities to be sold. The proposed fee is $10.90 per $1,000 of bond face value. All of these fees are contingent upon a successful bond sale. The firms we have recommended to act as the Financing Team have wide experience in land-secured financing. They have served the City in the past and we have been pleased with the quality of their services. The Financial Advisor assists the City in forming the district and with the bond issuance process. Bond Counsel drafts all legal documents related to establishment of the district and other documents related to security of the bonds and advises the City on legal issues. Disclosure Counsel prepares the official statement, the primary disclosure document for a municipal bond offering. The Underwriter arranges for the sale of the bonds. The fees proposed by all members of the Financing Team are considered by staff to be reasonable. All fees are contingent upon sale of the bonds and are paid from bond proceeds. They are not the responsibility of the City. The resolution further authorizes the Finance Director to accept a deposit from the Project developer in an amount sufficient to cover the non-contingent costs of creating a community facilities district and selling bonds, and approves a deposit/reimbursement agreement in connection with that deposit. Such non-contingent costs include an '~-'-"'-"T""