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SA 3 - RESO - TAX ALLOCATION BONDS
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SA 3 - RESO - TAX ALLOCATION BONDS
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Last modified
6/30/2016 4:21:44 PM
Creation date
6/30/2016 3:50:32 PM
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City Clerk
Doc Type
Agenda Packet
Agency
Community Development
Item #
3
Date
7/5/2016
Destruction Year
2021
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Resolution Authorizing the Refunding <br />of 2003 Tax Allocation Bonds <br />July 5, 2016 <br />Page 3 <br />REQUEST FOR PROPOSALS <br />Staff designated UFI as its financial advisor for this particular transaction. City staff directed UFI <br />to conduct requests for proposals from underwriting and bond /disclosure firms wishing to provide <br />services in connection with the proposed refunding of the 2003 Bonds. Proposals were received <br />by UFI on Thursday, November 14, 2014from the following firms: <br />Underwriters <br />• Stifel Nicolaus <br />• Mesirow Financial <br />• Piper Jaffray <br />Bond / Disclosure Counsel Firms <br />• Stradling Yocca Carlson & Rauth <br />• Best Best & Krieger <br />• Norton Fulbright Rose <br />• Orrick, Herrington & Sutcliffe <br />• Aleshire & Wynder <br />• Goodwin Proctor <br />In developing a response, proposers were asked to provide experience with tax allocation bonds <br />post AB 1484, staff to be assigned to this transaction and a fee proposal for services. Listed <br />below is a summary of the proposals. <br />UNDERWRITER PROPOSALS <br />Proposal Firm <br />Fee Proposal <br />Post AB 1484 Deals Completed <br />Mesirow Financial <br />$72,692 <br />1 Completed Transactions <br />Stifel Nicolaus <br />$95,898 <br />47 Completed Transactions <br />Piper Jaffray <br />$132,884 <br />12 Completed Transactions <br />BOND /DISCLOSURE COUNSEL PROPOSALS <br />Proposal Firm <br />Bond Counsel Fee <br />Disclosure Counsel Fee <br />Post AB 1484 Deals Completed <br />Orrick, Herrington & Sutcliffe <br />$40,000 <br />$30,000 <br />21 Completed Transactions <br />Best Best & Krieger <br />$60,000 <br />$30,000 <br />13 Completed Transactions <br />Norton Rose Fulbright <br />$45,000 <br />$37,500 <br />12 Completed Transactions <br />Stradling Yocca Carlson & Rauth <br />$70,000 <br />$45,000 <br />48 Completed Transactions <br />Aleshire & Wynder <br />$80,000 <br />5 Completed Transactions <br />Goodwin Proctor <br />$87,000 <br />$67,000 <br />2 Completed Transactions <br />After reviewing the fee proposals and the evaluation of each proposed team, staff recommends <br />the Successor Agency engage Stifel Nicolaus as underwriter, Orrick Herrington & Sutcliffe as <br />bond counsel and Best Best & Kregier as disclosure counsel. While Stifel Nicolaus did not <br />propose the lowest fee, the firm is considered an industry leader in the area of post AB 1484 tax <br />allocation bond refunding transactions and has the best knowledge of the City via previous <br />transactions. In addition, the recommended underwriter is also including underwriter's counsel <br />(Stradling Yocca Carlson & Rauth), which will provide additional due diligence in reviewing the <br />transaction. Both Orrick, Herrington & Sutcliffe, and Best Best & Krieger, represent the lowest <br />3 -3 <br />
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