To: MAYOR AND CITY COUNCIL
From: STEPHANIE MEYER, FINANCE DIRECTOR
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APPROVE AN AGREEMENT WITH KOSMONT TRANSACTIONS SERVICES, INC., DBA KOSMONT FINANCIAL SERVICES, FOR CITY BOND REPORTING ACTIVITIES FOR A COST OF $18,500 IN YEAR 1 AND A TOTAL AMOUNT NOT TO EXCEED $62,500, INCLUDING CONTINGENCY, FOR THE TERM JULY 7, 2026 TO JUNE 30, 2031
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EXECUTIVE SUMMARY
The City of Redondo Beach must maintain compliance with state and federal post-issuance laws for its outstanding municipal debt. Approval of the proposed agreement would retain Kosmont Transactions Services, Inc. dba Kosmont Financial Services (Kosmont), as the City's debt reporting consultant, continuing Kosmont's current bond duties related to federal reporting and adding state-level reporting responsibilities.
With the Agreement, Kosmont would manage compliance actions for the following bond obligations:
* $7,230,000 Redondo Beach Public Financing Authority Wastewater Revenue Refunding Bonds, Series 2014A
* $28,015,000 Redondo Beach Community Financing Authority Lease Revenue Refunding Bonds, Series 2019A
* $226,180,000 Redondo Beach Community Financing Authority Lease Revenue Bonds, Series 2021A
Approval of the proposed five-year Agreement ensures the City fulfills its statutory requirements, prevents regulatory penalties, and satisfies annual filing deadlines through FY 2030-31.
BACKGROUND
Municipal debt compliance requires annual reporting and disclosure for both State-level California Debt and Investment Advisory Commission (CDIAC) requirements and Federal-level Securities and Exchange Commission (SEC) continuing disclosure mandates.
California Debt and Investment Advisory Commission (CDIAC) Requirements
Under California law, issuers of certain types of debt must submit annual electronic filings. The City's Series 2019A and Series 2021A bonds fall in this category, and require the following filings:
* Annual Debt Transparency Report (ADTR): Governed by Senate Bill 1029, t...
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