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6.3.C. - Page 3 <br /> Bonds will be sold competitively. Consequently, there is no need at present to pre-select <br /> an underwriter. Should market conditions change or facts arise that cause us to view <br /> this differently we will interview underwriters and bring a recommendation to Council for <br /> consideration. <br /> The 2003 Bonds are only rated by Standard and Poors', but have a high AA rating. <br /> They are also excellent candidates for a competitive sale. However, given the small size <br /> of the bond issue necessary to refund these bonds, a private placement, which has <br /> lower fixed issuance costs than a public sale, may be more cost efficient than a public <br /> sale. Nevertheless, a negotiated bond sale is, at this point, deemed unlikely. The City's <br /> financial advisor will solicit private placement bids from firms that specialize in <br /> purchasing municipal credits of this type and size. If the responses are determined to be <br /> more cost effective than a public sale, and the offered terms otherwise acceptable, the <br /> financing will be presented to the City Council for its approval as a private placement <br /> transaction at a later date. <br /> Regardless of inethod of sale, all future bond issues will be presented to the City <br /> Council at a later date for its approval. <br /> Council Finance Committee Approval <br /> These potential refundings were discussed with the Council Finance Committee <br /> (Council Members Jeff Ira, lan Bain, and John Seybert) at their February 25, 2013 <br /> meeting. The Committee approved the Finance Director's recommendation to explore <br /> refunding these bonds and to engage the public finance professionals recommended <br /> herein to assist with the requisite analysis. <br /> The Council Finance Committee also directed staff to work with the Council Utilities <br /> Committee to determine the optimum debt service structure for the Water Revenue <br /> Bonds. <br /> Tonight's Actions <br /> The resolution before the Council authorizes staff to enter into professional services <br /> agreements with William Euphrat Municipal Finance, Inc. as the City's financial advisor, <br /> Nossaman LLP as bond counsel, and Quint & Thimmig as disclosure counsel. <br /> Future Actions <br /> At its next meeting on this matter, which is presently anticipated to be in April 2013, the <br /> Council will consider resolutions in connection with the sale of bonds. At that time, <br /> should savings still be available, the Council will be asked to authorize the sale of <br /> refunding bonds for the Water Revenue Bonds and for the 2003 Bonds, and to approve <br /> various documents in connection with each financing. No public hearing or property <br /> owner vote is required for either financing. <br /> ALTERNATIVES <br /> The Public Financing Authority Board may reject this recommendation to engage the <br /> firms presented in this report to provide the professional services needed to <br /> successfully sell refunding bonds. Staff will need to obtain proposals from other firms <br />