TO:
Honorable Mayor and Members of the City Council
THROUGH:
Mark Danaj, City Manager
FROM:
Bruce Moe, Finance Director
SUBJECT:Title
Approve Contract with KNN Public Finance for Financial Advisory Services (Finance Director Moe)
APPROVE
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Recommended Action
RECOMMENDATION:
Staff recommends that the City Council approve a contract with KNN Public Finance for financial advisory services.
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FISCAL IMPLICATIONS:
There are no fiscal implications associated with the approval of this contract. Typically, compensation for these services is contingent upon the successful issuance of debt by the public agency; there is no fee until and unless debt is issued. The amount to be paid for these services is approved by the City Council in advance of the issuance of debt.
BACKGROUND:
The City has utilized a financial advisory firm since the late 1990's to assist in analyzing financing options, and where appropriate, the issuance of debt. The financial advisor (FA) was instrumental in the City obtaining our Triple-A credit ratings, and the successful issuance of debt for the Police/Fire facility, Metlox, Marine Avenue Sports Fields, South Bay Regional Public Communications Authority, Water/Wastewater, and numerous underground utility districts.
DISCUSSION:
As the City Council contemplates various high-priority capital improvements, a corresponding funding plan needs to be developed. While some smaller projects may be funded with existing resources, larger, more costly and significant projects may require the issuance of debt in order to spread the costs over multiple years for affordability.
As the City prepares for potential projects and financing options, it is prudent to begin assembling the financing team which will help guide the funding options and decisions. The professional services needed for this endeavor include a Financial Analyst, Bond Counsel, Underwriter, and T...
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