AgdaPkt 2007-02-12 - Laserfiche WebLink

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6.1 B Page 2 • Distribution system consisting of new transmission pipelines throughout the water service area in street right-of-ways—owned and operated by City of Redwood City. • Custarner site retrofits for each existing private or public site with landscape irrigation meter. Retrofits will occur as each property owner has agreed to convert to recycled water for landscape irrigation and industrial uses. The Project is to be financed in multiple phases through 2010. The first phase of the financing was approved on January 24, 2005, which provided $35 million for the construction of treatment improvements,disinfection facility, and sforage/pumping facilities that wi11 be si#uated on praperty leased from the SBSA. The second phase of financing was approved on January 23, 2006, which provided $26 million for distribution pipelines, customer site retrofits, and artificial fields. A third sale of bonds is planned for June 2007. Proceeds of this sale (estimated at$11.5 millian)will be used to fund additional distribution pipelines and customer site retrofits. Staff recommends that the PFA continue to utilize the financing team consisting of the same firms that assisted in the successful issuance of the Water Revenue Bonds for both the 2QQ5 and 2006 issues by the PFA. Staff continues to be very pleased with the timeliness and quality of the services provided by each firm. Moreover, staff continues to be pleased with the support that these firms have been providing since the bonds were sold. This is the third of a series of bond issuances and these firms provide an expertise in the area of bond financing that staff does not have. Furthermore,these firms are familiar with the project and are therefore able to provide these services at a lower price than firms not familiar with the project. The attachment contains a descrip#ion of the responsibilities of the respective members of the financing team. Since these bonds will be sold competitively, the Council does not need to appoint an underwriter to purchase and sell these bonds on behalf of the City. William Euphrat, the proposed financial advisor, has reviewed the proposals submitted from bond counsel and disclosure counsel and finds their proposed fees competitive with the market rates for these services. The Finance Director has reviewed Mr. Euphrat's propasal and finds his proposed fees in line with fees the City has paid him for past bond issues and consistent with the level of complexity of this bond sale. Alternative The PFA Board may reject s#aff's recammendation to engage these firms to provide the professional services needed to successfully sell bonds for this project. Staff will need to obtain proposals from other firms since staff does not have the expertise to perform these functions. Obtaining praposals from other firms may delay the issuance of bonds by up to two months without any guarantee that staff will be able to identify firms that can provide comparable services at less cost. The City anticipates that the bond proceeds from the first two bond issuances will be expended on schedule, and therefore the issuance of the third series of bonds is time-critical to keep the project on track. 2