CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Approve the award of Change Order #2 to Contract 16-134, Municipal Advisory Services, to Speer Financial, Inc. for an amount not to exceed $20,000 and a total award of $111,671.66
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DEPARTMENT: Finance Department
SUBMITTED BY: Rachel Mayer, Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
The purpose of this contract is to provide independent professional municipal advisor consulting services consisting, primarily, of evaluating the debt structure and financial resources of the City to determine borrowing capacity for current and future capital financing requirements and all related services required to issue bonds.
In March 2016, the City Manager approved Contract 16-134 with Speer Financial, Inc. for $75,000 and a three-year term from the date of award through December 31, 2018, with two, one-year options to extend.
On June 22, 2018, the City Manager approved Change Order #1 to add $16,671.66 to the contract. These funds were requested due to increased payments to Speer Financial, Inc. for their services during the 2016 and 2017 bond issuances. These increased payments were due to two factors. First, there was a disbursement oversight because municipal advisor services are paid as part of the bond issuance and not a direct invoice for payment. The second factor was higher utilization of Speer Financial over the past two years. In 2016, the City had a bond issuance for the Water Street TIF, capital projects, and a refunding of the 2008 and 2009 bond issuances. In 2017, the City resumed normal borrowing practices for capital projects. The chart below breaks out issuances and fees.
Issuance
Amount
Fees
2016 Issuance (New Money)
$ 14,330,000
$ 16,861.62
2016 Issuance (Refunding)
$ 47,275,000
$ 55,630.28
2017 Issuance (New Money)
$ 6,980,000
$ 19,179.76
TOTAL
$68,585,000
$ 91,671.66
DISCUSSION:
The City will conduct a bond issuance this fall. This change order is requested to provide for the cost of the...
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