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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />JULY 16, 2007 <br />TITLE: <br />STREET REHABILITATION FINANCING <br />TEAM <br />,~ <br />~~~~ ~.~ <br />CITY M NAGER <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />^ As Recommended <br />^ As Amended <br />^ Ordinance on 1 s' Reading <br />^ Ordinance on 2ntl Reading <br />^ Implementing Resolution <br />^ Set Public Hearing For <br />CONTINUED TO <br />FILE NUMBER <br />Direct the City Attorney to prepare and authorize the City Manager and <br />Clerk of the Council to execute agreements with the financing team <br />composed of financial advisor Fieldman, Rolapp & Associates, underwriter <br />De La Rosa & Co., bond counsel Orrick, Herrington & Sutliffe, and special <br />disclosure counsel Quint & Thimmig. <br />DISCUSSION <br />The Public Works Agency has completed an inventory of all the City's <br />streets that includes their general lifespan condition. Based on staff's <br />assessment, an immediate infusion of funds to rebuild the City's <br />neighborhood streets would advance the City's position to address all <br />neighborhood streets and implement a long-term preventive maintenance <br />program. Based on this strategy, it is recommended that over the next <br />five years, $100 million be invested toward rebuilding and repairing City <br />streets. To achieve this initiative, bonds in the amount of $60 million <br />dollars would be needed to complete the $100 million investment. <br />Neighborhood street improvements will include slurry seal, grind and <br />overlay, reconstruction, and critical concrete repair of sidewalk, curb <br />and gutter. <br />In order to explore bonding alternatives and capacity, it is recommended <br />that a financing team, including a financial advisor, underwriter, and <br />bond/disclosure counsel, be formed. After extensive interviews, staff <br />recommends the hiring of Fieldman, Rolapp & Associates (financial <br />advisor), De La Rosa & Co. (underwriter), Orrick, Herrington & <br />Sutliffe (bond counsel) and Quint & Thimmig (disclosure counsel). Upon <br />final determination, a financing package will be brought before Council <br />for review and approval. Compensation will be as follows: financial <br />advisor in an amount not to exceed $55,000; underwriter in amount not to <br />exceed $370,000 (based on a par bond value of $60 million) and contingent <br />upon bond closing. Bond Counsel is responsible for preparing all of the <br />25C-1 <br />