SUBJECT/RECOMMENDATION:
Title
Approve addendum to agreement with Bryant Miller Olive and task order with Public Resources Advisory Group.
Body
SUMMARY:
The law firm of Bryant Miller Olive (BMO) has served as the City’s bond counsel since 1995. On April 17, 2025, following a competitive selection process, the City Council extended its bond counsel agreement with BMO. At that time, the City also consolidated disclosure counsel services with BMO, promoting efficiency by assigning both functions to a single firm. Public Resources Advisory Group (PRAG) has served as the City’s financial advisor since 2019.
Financial advisor, bond counsel, and disclosure counsel services are usually paid as a percentage of a bond issuance. In certain instances, however, the City has utilized BMO’s expertise in public finance for topics other than traditional bonds, or in cases where bonds may be discussed or considered, but may or may not be issued. Similarly the City has previously utilized PRAG’s financial advisory services on an hourly basis on projects other than bond issuances. The City’s existing contracts with BMO and PRAG contemplate hourly billing for such services.
The City Attorney and the City’s Finance Director have consulted with BMO and PRAG in regard to the possibility of the City offering to purchase local electric distribution infrastructure from Duke. (The City is not considering or contemplating any purchase of transmission or generation infrastructure.) Subject to Council approval, the BMO addendum and PRAG task order contemplate hourly billing, at the previously approved rates, for advice and services relating to public finance.
These fees will be invoiced monthly and likely be paid over the course of a year or longer. The total fee for BMO hourly services, including bond validation, is estimated at $75,000. The total fee for PRAG hourly services is estimated at less than $50,000. If the City ultimately issues bonds in relation to the purchase, any fees spent by the City on hourly billing will receive a dollar-for-dollar offset against BMO’s and PRAG’s normal issuance fees. In other words, the City will be credited or refunded the full amount of the hourly fees described in this in the event the City purchases the assets from Duke.
APPROPRIATION CODE AND AMOUNT:
A first quarter budget amendment will increase special program M2403, Feasibility Study, by $125,000 funded by a transfer of unallocated Special Program Fund reserves.