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ITEM: AUTHORIZATION TO APPROVE FINANCING TEAM AGREEMENTS RELATED TO SADDLE TRAIL PARK IMPROVEMENT PROJECT
REQUEST: Authorization to approve financing team professional services agreements related to Saddle Trail Park Improvement Project.
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EXPLANATION: The Saddle Trail Park Improvement Project is to be funded solely by the property owners within this section of Saddle Trail. Municipal bonds with a 20 year maturity will be issued through the special assessment process.
For this type of debt issuance - special purpose bonds to be repaid solely by the property owners - it is important to utilize an experienced financing team. Pursuant to Wellington's Debt Management Policy, Section 9 - The Financing Team (Consultants and Service Providers) is recommended to consist of the following:
Bond and Disclosure Counsel: Mark E. Raymond, Attorney at Law
Financial Advisor: Spectrum Municipal Services, Inc.
Underwriter: Raymond James
Special Counsel: Kenneth Edwards, Caldwell Pacetti Edwards Schoech & Viator LLP
Authorization to approve the professional services agreements for these services is addressed in Wellington's Purchasing Manual, Chapter 3 - Items Exempt from Competition; Section 6, Debt Service and other financing transactions costs; Section 9, Legal Services; and Section 12 Other Professional Services; Item h., Trustees.
Based on the initial project cost information presented as part of the polling and public outreach process, the financing team provided agreements and cost estimates based on total debt issuance of approximately $7m to $7.5m. These bond issuance costs (including out-of-pocket costs) will be reimbursed from bond proceeds. The preliminary debt issuance costs related to these service agreements is summarized below:
Consultant |
Fee* |
Mark E. Raymond, Attorney At Law |
$ 40,000 |
Spectrum Municipal Services, Inc. |
$ 12,500 |
Raymond James |
$139,595 |
Kenneth Edwards, Caldwell Pacetti Edwards Schoech & Viator, LLP |
$ 19,750 |
Total |
$211,845 |
*Notes: Out-of-pocket expenses will be in addition to the amounts shown and amounts will be based on actual bond issuance.
Based on the preliminary project schedule, the bonds are slated for issuance in May 2015. The first assessment would be part of the 2015 property tax bill. A timetable for assessment and debt proceedings is attached for information purposes.
Staff requests Council approval of the professional services agreements relating to the financing of the Saddle Trail Park Improvement Project.
BUDGET AMENDMENT REQUIRED: NO
PUBLIC HEARING: NO QUASI-JUDICIAL:
FIRST READING: SECOND READING:
LEGAL SUFFICIENCY: YES
FISCAL IMPACT: The Saddle Trail Park Improvement Project is to be funded solely by the property owners within this section of Saddle Trail. Municipal bonds in the estimated amount of $7 m to $7.5 m with a 20 year maturity will be issued through the special assessment process by May 2015 (estimated timetable). Preliminary bond issuance costs of approximately $211,845 are included in the Financing Team Service Agreements.
WELLINGTON FUNDAMENTAL: Protecting our Investment
RECOMMENDATION: Authorization to approve financing team professional services agreements related to Saddle Trail Park Improvement Project.
References:
· Village of Wellington, Debt Management Policy, Section 5 - Types of Debt Pledges, Item E. Special Assessment Bonds.
· Village of Wellington Purchasing Manual, Chapter 3 - Items Exempt from Competition; Section 6, Debt Service and other financing transactions costs; Section 9, Legal Services; and Section 12, Other Professional Services; Item h., Trustees.