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ITEM 21

City Council Memorandum Management Services Memo No. MS 25-025

Date:

September 12, 2024

To:

Mayor and Council

Thru:

Joshua H. Wright, City Manager
Dawn Lang, Deputy City Manager - CFO

From:

Matthew Dunbar, Budget and Policy Director

Subject:

Agreement No. 4481, Amendment No. 1, Financial Advisory Services

Proposed Motion:

Move City Council approve Agreement No. 4481, Amendment No. 1, with Piper Sandler & Co., for financial advisory services, for a period of two years, beginning July 1, 2024, through June 30, 2026.

Background/Discussion:

The city uses a financial advisor for its expertise on all items of financing necessary to the city's operations or capital needs, which include General Obligation Bonds, Water and Sewer Excise Tax Revenue Obligation Bonds, Municipal Property Corporation and Improvement District Bonds, Refunding Bonds, and other related financial services. In addition, a financial advisor assists the city in developing a bond issuance strategy, preparing bond documents, marketing bonds to investors, arranging and preparing materials for rating agency presentations, monitoring the market for refunding opportunities to reduce the city's overall debt service costs when possible, post issuance compliance and outstanding debt tracking.

The finance professional is relied on to proactively identify creative solutions to meet the city's financing needs and goals and understand innovative debt financing methods which can reduce costs, always focusing on the city's best interest. Piper Sandler & Co. has filled this role with Chandler for over 20 years.

Evaluation:

On June 17, 2022, City Council approved an agreement with Piper Sandler & Co., for financial advisory services, for a two-year period, with the option of up to two (2) two-year extensions. The Contractor has agreed to extend at the same terms, conditions and pricing. This is the first extension of the agreement.

Financial Implications:

Fees associated with bond sales and incidental expenses related to each bond issuance will be paid from individual bond proceeds and are fixed fees based on the type of issue. Advisory fees for special projects not related to a specific bond transaction and requiring four hours or more of work and the preparation of written responses will be charged a competitive hourly fee based on the professional team member providing the services and paid from the appropriate related fund.

Attachments

4481 Amendment