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6.3.A. - Page 2 debt service payments through a refunding. The Government Finance Officers Association's "Best Practice" recommendation is that a refunding should generate cash flow savings with a net present value (NPV) (i.e., have value in current dollars) equal to at least three percent of the amount of refunding bonds issued in order to justify the expenditure of resources necessary to implement the refunding. NPV savings estimates based on current interest rates are approximately seven percent or $448,000. However, there can be no assurance that current rates will hold until the refunding bonds are sold and that savings of this magnitude will be achieved. Selection of Financing Professionals Since 1999 the City has sold ten bond issues using the services of Nossaman LLC as bond counsel (Jeff Stava) and twelve bond issues using the services of William Euphrat Municipal Finance, Inc. as financial advisor (Bill Euphrat). Staff has been very pleased with the timeliness and quality of the services each of these firms has provided. Moreover, each has provided continuing service on numerous matters relating to the Pacific Shores Community Facilities District and the Bonds since they were sold without requesting additional remuneration. Accordingly, staff recommends the appointment of these firms for this bond sale. Because one bond underwriter had approached the Owners about refunding the Bonds and the initial underwriter of the Bonds had also approached the City on the same topic, Mr. Euphrat prepared a request for underwriting proposals to assist the City and the Owners to assess the qualifications of these firms and determine which should be appointed to underwrite refunding bonds. Mr. Euphrat, the Owners, and City staff concurred that Stone & Youngberg, LLC, the underwriter of the Bonds, submitted the stronger proposal. Mr. Euphrat additionally solicited proposals from two firms to serve as disclosure counsel. Both were well qualified and staff recommends that the low bidder, Quint & Thimmig, which also served as disclosure counsel for the Bonds, be retained as disclosure counsel. The recommended financing team remains the same as that which provided professional services for the Bonds. Tonight's Actions The resolution before the Council authorizes staff to enter into professional services agreements with William Euphrat Municipal Finance, Inc. as the City's financial advisor, Nossaman LLP as bond counsel, Quint & Thimmig as disclosure counsel, and appoints Stone & Youngberg LLC as the underwriter of the proposed refunding bonds. Future Actions At its next meeting on this matter, which is presently anticipated to be on January 9, 2012, the Council will be asked to consider a resolution in connection with the sale of bonds. At that time the Council will be asked to authorize the sale of refunding bonds and approve a fiscal agent agreement, a bond purchase contract, a continuing disclosure certificate, and an official statement. No public hearing or property owner vote is required.