Report to Mayor and City Council
Tuesday, October 16, 2018
Consent
SUBJECT:
Title
CONSIDER AWARD OF CONTRACT TO HARRELL & COMPANY ADVISORS, LLC FOR FINANCIAL ADVISORY SERVICES RELATED TO BONDED INDEBTEDNESS (CITY COUNCIL AND SUCCESSOR AGENCY)
Body
I. SUMMARY
On September 5th, the City Council directed staff to move forward with an expedited solicitation for proposals for Financial Advisors and Underwriters, in anticipation of upcoming bond issues.
The purpose of this report is to recommend the City Council and the Successor Agency Board award a contract to one of the Financial Advisors for the Measure R and Measure M bonds and the 2007 redevelopment bond refunding.
II. RECOMMENDATION
Recommendation
1. AWARD the proposed financial advisor contract to Harrell & Company Advisors, LLC for a not-to-exceed maximum of $60,000 (see Exhibit A).
2. AUTHORIZE the Mayor to execute the contract upon award.
1.
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III. ALTERNATIVES
TAKE another action deemed appropriate by City Council.
IV. BACKGROUND
On September 5, 2018, the City Council directed staff to move forward with next steps related to 3 potential bond issues, listed in the following order of priority.
1. Raise $25 million of capital by bonding against the City's local allocations of Measure M and Measure R transportation sales tax revenues.
2. Potentially raise as much as $2 million of capital for an infrastructure project that benefits the Dominguez Technology Center West, by refunding the assessment district's 2006 bonds. The debt service for the 2006 bonds is paid by the property owners in the assessment district, not by the City.
3. Refund the 2007 redevelopment bonds to generate debt service savings, and increased property tax revenue for all the taxing entities including the City. The City's share of additional revenue that may become available is approximately $7,500 per year.
Due to the interest expressed by multiple financial advisors and underwriters, staff released an informal request...
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