HomeMy WebLinkAbout1984-10-02; City Council; 7706-2; Selecting Financial ConsultantsJF CARLSBAD — AGENDA _,ILL
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TITLE:
SELECTING FINANCIAL CONSULTANTS TO
ASSIST IN IMPLEMENTING 1915 ACT BOND ISSUES
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CITY ATTYW
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CITY MGR. *==
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RECOMMENDED ACTION:
Adopt Resolution No. "~7f7<5~^3 selecting financial consultants to assist the
City in establishing assessment districts in accordance with Council Policy No.
33.
ITEM EXPLANATION
In May the City Council adopted Council Policy No. 33 setting guidelines for the
use of 1915 Act Bonds in the financing of various public improvements. In June,
the City requested proposals from ten firms capable of providing these services.
Proposals were received from:
Rauscher Pierce Refsnes, Inc.
Miller and Schroeder Municipals, Inc.
Stone and Youngberg
Deloitte Haskins & Sells.
Interviews were conducted with each of the above firms by a panel consisting of
the City Manager, one Council Member and the Finance Director. The interview
panel concluded that 1) each firm was well qualified, 2) pricing of services
would be competitive from all firms, and 3) it was in the City's best interest
to be able to call upon more than one firm since multiple projects may be under
way at one time.
The panel therefore recommended that the City Council approve the use of all
four firms as financial consultants on a rotating basis. The City Manager
should be allowed to assign projects to the financial consultants as they become
available. Actual contract documents will be presented to Council at the time
an assignment is made.
FISCAL IMPACT
The cost of using a financial consultant is typically included as part of the
project cost. The City's liability will be limited to certain out of pocket
expenses should an assessment district not be formed after the financial
consultant has produced comprehensive financial reports. The cost of a
financial consultant is generally a fixed fee of $7,000 to $15,000 plus a
fractional percent (1/8% to 1/2%) of the amount at issue.
EXHIBITS
Resolution No. •? 7-^-3 selecting financial consultants to assist the City in
establishing assessment districts in accordance with Council Policy No. 33.
Sample Letter to be mailed to Consultant Firms.
RESOLUTION NO. 7753
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD
1 SELECTING FINANCIAL CONSULTANTS TO ASSIST THE CITY IN
IMPLEMENTING COUNCIL POLICY NO. 33 CREATING ASSESSMENT
DISTRICTS TO FINANCE MAJOR PUBLIC IMPROVEMENTS.
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4 WHEREAS, the City Council has adopted Council Policy No. 33 which provides
5 for the use of 1^5 bonds for major public improvements; and
6 WHEREAS, in implementing Council Policy No. 33, the City has proceeded with
7 the process of selecting financial consultants who would be capable of assisting
8 with the creation of complex assessment districts and bond sales; and
9 WHEREAS, the City has \nterviewed representatives of the following firms and
10 has found each firm to be welsl qualified to assist as financial consultants with
11 assessment districts of this typ
12 Deloitte Haskins & Sells
13 Rauscher Pierce Refsnes
14 Miller and Schroeder Municipal^, Inc.
15 Stone and Youngberg
16 and;
17 WHEREAS, the cost of using any financial Consultant shall be considered part
18 of the cost of the 1915 Act Bond issue and will \pt be born by the City.
19 NOW, THEREFORE, BE IT RESOLVED by the City Couritil of the City of Carlsbad
20 that the City Manager is hereby authorized to select Kirms from the above list
21 for the purpose of providing financial consulting service^ on 1915 Act Bond
22 issues and that the Mayor is hereby authorized to execute letter agreements with
23 each firm as shown in Exhibit A attached hereto.
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PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of
the City of Carlsbad on the day of , 1984, by the
following vote, to wit:
AYES:
NOES:
ABSENT:
MARY H. CASLER, Mayor
ATTEST:
ALETHA L. RAUTENKRANZ, City Clerk
(SEAL)
SAMPLE LETTER
FINANCIAL CONSULTING SERVICES FOR 1915 ACT BOND ISSUES
Based on Council action dated October 2, 1984, the City Council has authorized
the City Manager to utilize your company as one of several financial consultants
on City of Carlsbad 1915 Act assessment districts and bond issues. These
assessment districts will be formed as described in Council Policy 33 (see
attached copy). The City Manager may select any of the approved consultants to
act as financial consultants as necessary to accomplish the formation of
districts and the sale of bonds.
The City reserves the right to make all assignment of projects to consultants as
they become necessary and to remove any consultant from any project should that
consultant's performance, in the City's opinion, prove to be inadequate.
All statements made by your firm relating to ability to perform, pricing of
services, availability, staffing or other representations shown in the attached
proposal from your firm are considered to be part of this agreement and will
remain in effect unless the City Manager receives written notice thirty days in
advance of any change.
The City appreciates your interest in serving the City in this capacity.
Sincerely,
MARY CASLER
Mayor
Terms Accepted
Firm Representative
JFE/ds EXHIBIT 2
Attachments