TO:
Honorable Mayor and Members of the City Council
THROUGH:
Bruce Moe, City Manager
FROM:
Steve S. Charelian, Finance Director
Henry Mitzner, Controller
SUBJECT:Title
Consideration of Municipal Advisory Services Agreement with KNN Public Finance (Finance Director Charelian).
ADOPT RESOLUTION NO. 20-0117 APPROVING AN AGREEMENT
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Recommended Action
RECOMMENDATION:
Staff recommends that the City Council adopt Resolution No. 20-0117 approving an agreement with KNN Public Finance for municipal advisory services.
FISCAL IMPLICATIONS:
There are no fiscal implications associated with the approval of this agreement. If the City Council authorizes the issuance of bonds, the firm will be compensated at the rates indicated in the agreement. If the bonds are issued, the bond proceeds are applied to such fees. The proposed agreement is attached.
BACKGROUND:
The City has utilized a financial advisory firm for over 20 years, to assist in analyzing financing options, and where appropriate, the issuance of debt. The municipal advisor (MA) was instrumental in the City obtaining our Triple-A credit ratings, and the successful issuance of debt for the Police and Fire Facility, Metlox project, Marine Avenue Sports Fields, South Bay Regional Public Communications Authority, Water/Wastewater, and numerous underground utility districts.
DISCUSSION:
As the City Council contemplates various mid- to long-term fiscal priorities, a comprehensive funding plan needs to be developed. The City has several upcoming utility underground assessment districts, as well as the possible issuance of pension obligation bonds for the City's unfunded accrued liability. While some capital projects and initiatives may be funded with existing resources, larger, more costly and significant plans may require the issuance of debt or financing in order to spread the costs over multiple years for affordability.
As the City prepares for potenti...
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