Consideration and Approval of Cooperative Contract:  Enter into a contract with Greenberg Traurig, LLP of  Phoenix, Arizona to purchase Bond Counsel Services.

Approval of this contract for bond counsel services provides the specialized services required to issue bonded debt.  The City of Flagstaff will  consider issuing voter approved bonds at an upcoming council meeting.  A bond counsel attorney is an essential member of a governmental issuers bond financing team.  Bond counsel renders an opinion on the validity of the bond offering, the security for the offering and whether to and to what extent interest on the bonds are exempt from income and other taxation. The opinion of bond counsel provides assurance to both issuers and to investors, who purchase the bonds, that all legal and tax requirements relevant to the matters covered by the opinion are met.

Fees paid to bond counsel for services rendered, are based on the value of each bond issuance.  We would pay a flat fee based on the following:

Up to $10,000,000 in bonds issued is a fee of $40,000
Bonds issued between $10,000,000 and $50,000,000 is a fee of $50,000

These fees are allocated to the specific project(s) that the bonds are issued for.

COUNCIL GOALS
2) Long Term Water Supply
3) Provide sustainable and equitable public facilities, services, and infrastructure systems in an efficient and effective manner to serve all population areas and demographics
6) Provide a well-managed transportation system
11)  Resiliency and preparedness 

REGIONAL PLAN:
Goal OS.1.  The region has a system of open lands, such as undeveloped natural areas, wildlife corridors and habitat areas, trails, access to public lands, and greenways to support the natural environment that sustains our quality of life, cultural heritage, and ecosystem health. 
Goal WR.6.  Protect, preserve, and improve the quality of surface water, groundwater, and reclaimed water in the region.
Goal LU.7. Provide for public services and infrastructure.
Goal T.4.  Promote transportation infrastructure and services that enhance the quality of life of the communities within the region.
Goal REC.1.  Maintain and grow the region’s healthy system of convenient and accessible parks, recreation facilities, and trails.

No.

1.  Approve contract as recommended;
2.  Conduct our own competitive City RFP process; or
3.  Not approve this contract and not purchase Bond Counsel Services.

Staff selected Greenberg Traurig of the state cooperative contract based on the fact that they were the highest scoring Proposer out of the six (6) firms who responded to the State's RFP, as well as the City's past experiences with this firm.  Greenberg Traurig has demonstrated excellent customer service, as well as its in depth knowledge of bond financing in Arizona. Greenberg Traurig only charges for services when bond financing is completed.  Greenberg Traurig also provides many additional support services for our organization at no additional cost.  Most recently, the firm has assisted us with the formation of the downtown revitalization district (FDBIRD), dissolution of the Municipal Facility Corporation, and the Road Repair and Street Safety tax at no cost.  We will look for the firm's assistance with the potential bond election for the courthouse, again at no cost.  This added value is greatly appreciated by our organization.

The City will be considering issuing revenue bonds in the amount of $10,000,000 for the Road Repair and Street Safety project. The fee related to bond counsel services will be $40,000.  In addition, we are looking to issue General Obligation bonds in the amount of $18,200,000 for Open Space, Core Facility and Watershed Protection projects that are voter approved for bonds.  The fee related to this transaction will be $50,000.   These cost will be allocated to the cost of the specific projects. 

Involve - Bonded debt is a result of prior voter approval.