TO:
Honorable Mayor and Members of the City Council
THROUGH:
Mark Danaj, City Manager
FROM:
Bruce Moe, Finance Director
SUBJECT:Title
Approve Contract for Bond and Disclosure Counsel Services with Stradling, Yocca, Carlson & Rauth (Finance Director Moe)
APPROVE
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Recommended Action
RECOMMENDATION:
Staff recommends that the City Council approve a contract with Stradling, Yocca, Carlson & Rauth for bond and disclosure counsel 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 contingent services is included in the proposed contract (attached).
BACKGROUND:
The City has historically utilized bond counsel services to provide legal advice on all aspects of financings (contractual, tax-exempt status, etc.). The same firm has also served as disclosure counsel to provide advice on City disclosure obligations and to prepare the official statement and/or continuing disclosure agreement.
The firm of Stradling, Yocca, Carlson & Rauth (SYCR) has served in this dual role for several of the City's past financings including the original and refinancing of Police/Fire, Metlox; refinancing of water-wastewater; pension obligation bonds; Marine Avenue Sports Fields; and 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 pru...
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