To: MAYOR AND CITY COUNCIL
From: LUKE SMUDE, ASSISTANT TO THE CITY MANAGER
STEPHANIE MEYER, INTERIM FINANCE DIRECTOR
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APPROVE AN AGREEMENT WITH PUBLIC RESOURCES ADVISORY GROUP (PRAG) TO SERVE AS THE CITY'S MUNICIPAL FINANCIAL ADVISOR RELATED TO THE ISSUANCE OF GENERAL OBLIGATION BONDS PURSUANT TO MEASURE FP THAT WAS APPROVED BY VOTERS ON NOVEMBER 5, 2024 IN AN AMOUNT NOT TO EXCEED $175,000 THAT WILL BE PAID OUT OF BOND PROCEEDS FOR THE TERM MARCH 18, 2025 TO MARCH 17, 2028 WITH AN AUTOMATIC RENEWAL OF TWO ADDITIONAL ONE-YEAR TERMS
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EXECUTIVE SUMMARY
On November 5, 2024, Redondo Beach voters approved Measure FP, a General Obligation Bond in the amount of $93,350,000 to fund the reconstruction of Fire Station #1, Fire Station #2, and the Police Headquarters, and renovation of the Police Annex facility. The results of the election were certified by the City Clerk on December 10, 2024, with more than 71.4% of RB voters supporting the measure.
On December 17, 2024, staff provided a report to City Council on the immediate steps to implement the voter-approved bond measure, including to engage a financial advisor. Following a competitive process, staff recommends Public Resources Advisory Group (PRAG) to serve as the City's financial advisor for bond issuance.
BACKGROUND
Voters approved Measure FP, a $93,500,000 General Obligation Bond Measure, as part of the General Election held on November 5, 2024. According to the Government Financial Officers Association (GFOA), selecting a qualified financial advisor is an essential first step to managing General Obligation bond issuance. The financial advisor will serve as a fiduciary to the City, representing the City's best interest on all matters. They will advise staff on the manner and timing of bond issuance and assist in engaging and coordinating all members of the bond financing team, which can include bond and disclosure Council, underwriter or underwriters, and an administrator or trust...
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