HomeMy WebLinkAbout25C - AGMT STREET REHABREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
JULY 16, 2007
TITLE:
STREET REHABILITATION FINANCING
TEAM
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CITY M NAGER
RECOMMENDED ACTION
CLERK OF COUNCIL USE ONLY:
APPROVED
^ As Recommended
^ As Amended
^ Ordinance on 1 s' Reading
^ Ordinance on 2ntl Reading
^ Implementing Resolution
^ Set Public Hearing For
CONTINUED TO
FILE NUMBER
Direct the City Attorney to prepare and authorize the City Manager and
Clerk of the Council to execute agreements with the financing team
composed of financial advisor Fieldman, Rolapp & Associates, underwriter
De La Rosa & Co., bond counsel Orrick, Herrington & Sutliffe, and special
disclosure counsel Quint & Thimmig.
DISCUSSION
The Public Works Agency has completed an inventory of all the City's
streets that includes their general lifespan condition. Based on staff's
assessment, an immediate infusion of funds to rebuild the City's
neighborhood streets would advance the City's position to address all
neighborhood streets and implement a long-term preventive maintenance
program. Based on this strategy, it is recommended that over the next
five years, $100 million be invested toward rebuilding and repairing City
streets. To achieve this initiative, bonds in the amount of $60 million
dollars would be needed to complete the $100 million investment.
Neighborhood street improvements will include slurry seal, grind and
overlay, reconstruction, and critical concrete repair of sidewalk, curb
and gutter.
In order to explore bonding alternatives and capacity, it is recommended
that a financing team, including a financial advisor, underwriter, and
bond/disclosure counsel, be formed. After extensive interviews, staff
recommends the hiring of Fieldman, Rolapp & Associates (financial
advisor), De La Rosa & Co. (underwriter), Orrick, Herrington &
Sutliffe (bond counsel) and Quint & Thimmig (disclosure counsel). Upon
final determination, a financing package will be brought before Council
for review and approval. Compensation will be as follows: financial
advisor in an amount not to exceed $55,000; underwriter in amount not to
exceed $370,000 (based on a par bond value of $60 million) and contingent
upon bond closing. Bond Counsel is responsible for preparing all of the
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Street Rehabilitation Financing Team
July 16, 2007
Page 2
transactional documents for a financing. Disclosure counsel will be
responsible for preparing the official statement and any other necessary
disclosure documents. Quint & Thimmig's compensation will not exceed
$50,000 (based on a par bond value of $60 million) and will be contingent
upon bond closing. Orrick, Herrington & Sutliffe's compensation will not
exceed $90,000 (based on a par bond value of $60 million) and will
likewise be contingent upon bond closing.
FISCAL IMPACT
Funds in the amount of $55,000 (financial advisor) are available in the
Non-Departmental Account (11-012-6291) with balance of fees available
upon bond closing.
APPROVED AS TO FUNDS AND ACCOUNTS:
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Jim oss Francisco Gutierrez
Executive Director '~xecutive Director
8ublic Works Agency Finance & Management Services Agency
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