AgdaPkt 2012-09-10 - Laserfiche WebLink

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6.4.C. - Page 2 pay down the outstanding principal amount of its loans, found new lenders, and closed on new loans in early June to pay off its defaulted loans in full. The next, and likely last, window of opportunity to refund the bonds required a bond sale by mid July. On June 18, 2012 the Council approved a resolution acknowledging the delay of the January bond sale and restating its intention to accommodate the Owners through the sale of refunding bonds. The bond sale took place in July and the 2000 Bonds were redeemed on September 1, 2012. ANALYSIS Due to the unanticipated bond sale cancellation in January and additional work required to sell the bonds again in July, the consultants, including the underwriter, have requested additional fees for their work. The additional fees had been previously discussed but as we did not know the full extent of the work required by these firms prior to the bond sale being finalized we had not brought this to the Council's attention earlier. The City is not liable for any of these expenses. All expenses associated with the refunding were paid from the proceeds of the refunding bonds and other amounts belonging to the bond trust estate on deposit with the City and the bond fiscal agent. The table below lists the original fee schedule approved in December 2011 and the additional compensation requested based on the delay in the refunding. Januarv July Issue Size $6,370,000 $5,555,000 Costs of Issuance Bond Counsel 50,000 64,000 Financial Advisor 45,000 60,000 Trustee & Escrow Agent 4,000 4,000 City Fee 25,000 35,000 Trustee Counsel 1,600 1,600 OS Printing 2,000 2,000 Disclosure Counsel 21,000 35,000 Underwriter's Counsel - 15,000 Contingency 9,400 217 Property Owner Expenses 12,000 29,400 Total 170,000 246,217 Underwriter's Discount (1) 50,960 44,440 Management 14,390 17,978 Underwriting Expenses 15,231 5,462 (2) Takedown 21,340 21,000 Total $ 50,961 $ 44,440