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Pension Debt Refinancing Bond Counsel, Disclosure Counsel and Court Validation <br />Services <br />February 16, 2021 <br />Page 3 <br />4 <br />4 <br />1 <br />ranging from $350-$600 in such circumstances. At this time, staff recommends a contract <br />contingency for thirty-five thousand ($35,000). Furthermore, staff recommends engaging <br />Stradling as Disclosure Counsel in addition to the above-referenced legal services to <br />achieve economies of scale related to price and diligence during the development of the <br />bond documents. <br />Next Steps <br />If the City Council approves the agreement, staff will return in April 2021 with a proposed <br />resolution to authorize the court validation process. That process may take up to six (6) <br />months. The financing team will prepare bond documents concurrently, to allow the City <br />to sell bonds as soon as possible once the court validation process is complete. <br />ENVIRONMENTAL IMPACT <br />There is no environmental impact associated with this action. <br />FISCAL IMPACT <br />Approval of this agreement will not immediately trigger a fiscal impact. Fees incurred by <br />the City are based if the debt issuance is completed or not as follows: <br />Debt Issuance is not completed: <br />If City Council subsequently adopts a resolution to authorize the court validation process <br />and the City does not complete the debt issuance, it will incur fees of up to $59,500, which <br />includes the validation services, out-of-pocket expenses and contract contingency. In <br />that case, staff will request a budget adjustment for $59,500 during either the current (FY <br />2020-21) or upcoming (FY 2021-22) fiscal year within Finance / Management and Support <br />– Contract Professional Services Account (01110100-62300). <br />Debt Issuance is completed: <br />If City Council authorizes issuance of bonds and completes the debt issuance, fees up to <br />$154,500 will be paid directly from bond proceeds. <br />EXHIBIT(S) <br />1. Request for Proposal No 20-160 (Bond and Validation Counsel Services for Pension <br />Obligation Bonds <br />2. Response to RFP No. 20-160 – Stradling Yocca Carlson & Rauth <br />3. Agreement with Stradling Yocca Carlson & Rauth <br />Submitted By: <br />Kathryn Downs, Executive Director Finance and Management Services <br />Approved By: Kristine Ridge, City Manager