SUBJECT
title
Consideration to approve a contract for Co-Bond Counsel Services with McCall, Parkhurst, & Horton L.L.P. and JCA Law, PLLC based on the proposed fees. Funding for these services will be available from proceeds of the debt issuance.
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PREVIOUS COUNCIL ACTION
N/A
BACKGROUND
The contract outlines the legal services agreement of both firms, to provide services as Co-Bond Counsel to the City in connection with the issuance of bonds, certificate of obligation, tax notes, public property finance contractual obligations, or other obligations to finance various improvements by the City.
With very few exceptions, all public securities must go to the Attorney General’s Public Finance Division for receipt of an approving opinion, and to the Comptroller’s office for registration. Bond Counsel is an integral part of obtaining the Attorney General’s approving opinion and registering the obligations with the Comptroller’s office. Bond Counsel also undertakes a federal tax analysis and renders a formal opinion as to whether the interest earnings investors receive on the City’s bonds will be exempt from federal income tax.
The compensation is formula based (depending on the type of transaction) and covered on the bottom of page 2 of the attached contract. The City can terminate the contract at any time for any reason by giving 30 days written notice.
COMMITTEE RECOMMENDATION
N/A
STAFF RECOMMENDATION
recommendation
Staff recommends approval of this contract.
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Fiscal Impact
Fiscal Year: 2024
Budgeted Y/N?: N
Source of Funds: Bond Proceeds
Account #:
Change Order: Exceeds 25% Y/N: N/A
FINANCIAL IMPACT:
Legal advisory services fees are based on the size of the debt issuance sold and are paid from said proceeds. Funding for these services will be available from proceeds from the issuance of debt.