CITY COUNCIL: Resolution Entering into Agreement with Bartle Wells Associates for Services Related to Refinancing of 2001 Sunset Center Lease Certificates

Meeting Date: June 8, 2010
Prepared by: Dewey Evans

City Council
Agenda Item Summary

Name: Consideration of a Resolution entering into an agreement with Bartle Wells Associates for financial advising services on the refinancing of the 2001 Sunset Center Lease Certificates.

Description: As a result of the current economic environment, interest rates are at an all-time low, making it a good time to review the outstanding debt on the 2001 Sunset Center lease certificates. The staff asked the firm of Bartle Wells Associates, independent public finance
advisors, to analyze the refinancing options and report back to the City with its recommendation.

Bartle Wells Associates (BWA) assisted the City with the original sale of lease revenue certificates in 2001. The attached proposal from BWA suggests that the City can save more than $615,000 by refinancing now, and with all financing costs included will be able to reduce the average annual debt payments by about $27,000 over the remaining 21-year term of the bonds, or about $415,000 net.

Overall Cost:
City Funds: A projected savings of about $27,000 per year in annual debt service payments

Staff Recommendation: To proceed with the refinancing.

Important Consideration: BWA’s service fees are contingent on the successful refunding of the 2001 Bonds. If for some reason the refinancing fails, there will be no cost to the City for their services.

Decision Record: No prior Council action has been taken on the proposed refinancing of the 2001 Sunset Center lease certificates.

Reviewed:

______________________________________ ______________
Rich Guillen, City Administrator Date