Item 18 - Pension Dept Refinancing Bound Counsel, Disclosure Councel and Court Validation Services

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Pension Debt Refinancing Bond Counsel, Disclosure Counsel and Court Validation Services February 16, 2021 Page 2 4 4 1 Rank Bidders Name Location Base Bid + Alternate Bid Bond Counsel Validation Counsel Not to Exceed Expenses Fee Total 1 Stradling Yocca Carlson & Rauth Newport Beach $75,000 $20,000 $4,500 $99,500 2 Orrick Herrington & Sutcliffe LLP Los Angeles $45,000 $15,000 $2,000 $62,000 3 Jones Hall San Francisco $147,500 $10,000 n/a $157,500 4 Norton Rose Fulbright San Francisco $125,000 $25,000 n/a $150,000 Staff recommends engaging Stradling, as they are located in Orange County and have extensive experience with the Orange County Superior Court, which is vital to managing the court validation process expeditiously. Orrick’s fees were marginally lower, but they did not have the same level of Orange County experience and were not willing to indemnify the City. Jones Hall and Norton Rose Fulbright’s cost proposals were significantly higher and did not have the same level of Orange County experience as Stradling. The following table summarizes the cost of services proposed by Stradling: Service Contingent on Bond Issuance Paid from Bond Proceeds Cost Court Validation Process (Validation Counsel) No If bonds issued, then yes. Otherwise no. $20,000 Out of Pocket Expenses No If bonds issued, then yes. Otherwise no. $4,500 Contingency for unusual circumstances No If bonds issued, then yes. Otherwise no. $35,000 Bond Counsel Yes Yes $75,000 Disclosure Counsel Yes Yes $20,000 Contract Maximum $154,500 The contingency may be necessary if there is a third-party complaint to the court validation process or other unusual circumstances. Stradling will charge hourly rates