REPORT TO THE CITY COUNCIL
DATE: February 18, 2021
FROM: MICHAEL LIMA, Finance Director/City Controller
Finance Department
BY: PHILLIP HARDCASTLE, Principal Accountant - Debt Administration
Finance Department
SUBJECT
Title
Approve a Five-year Agreement with KNN Public Finance for Financial Advisory Services for a total fee not to exceed $425,000
Body
RECOMMENDATION
Staff recommends approval of a five-year agreement with KNN Public Finance (KNN) for on-going financial advisory services to assist the City in evaluating and coordinating bond financing/refinancing strategies.
EXECUTIVE SUMMARY
Staff recommends that Council approve an agreement with KNN for a period of five years. The award of the Financial Advisory Services agreement to KNN promotes efficiency and expediency in the handling of City bond strategies and financial consulting. KNN is considered to be best suited to analyze financial alternatives available to the City, and to provide the City with the most optimal consulting recommendations.
Their staff will serve as an extension of City staff in structuring the most cost-effective bond transactions/refinancings by working with credit and insurance agencies, assessing market conditions, advertising bond sales, and evaluating bids from underwriters. In addition, KNN will continue to aid the City in working toward obtaining the most favorable rating and credit enhancements possible.
BACKGROUND
It is anticipated that the City will access the bond market over the next few years for financing upcoming projects and possibly refinancing existing City bonds. A financial advisor assists the City in structuring the most cost-effective bond transactions by working with credit and insurance agencies, assessing market conditions, advertising bond sales, and evaluating bids from underwriters to purchase City bonds. A financial advisor also continually assists the City in monitoring existing outstanding bonds and watches for refinancing opportunit...
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