SUBJECT/RECOMMENDATION:
Title
Approve a five-year agreement with the law firm of Bryant Miller Olive to perform bond counsel and disclosure counsel services as needed and authorize the appropriate officials to execute same. (consent)
Body
SUMMARY:
The law firm of Bryant Miller Olive (BMO) has served as the City’s bond counsel since 1995. Outside counsel is a practical necessity in bond issuance transactions due to potential conflicts of interest if the issuer’s in-house attorneys serve in that role. BMO was chosen for renewal due to their institutional familiarity with Clearwater’s bond history, their exemplary performance during the Imagine Clearwater bonds, their proven, creative approaches to bond matters in representing other local governments, and their strong relationship with the Public Resources Advisory Group (PRAG), which serves as the City's financial advisor.
Historically, the City of Clearwater has paid a second law firm to serve as disclosure counsel. The City Attorney’s Office, in concert with the Finance Director and PRAG, have identified cost savings by consolidating the disclosure counsel and bond counsel functions with a single firm. If approved, BMO will serve as the City's disclosure counsel in addition to serving as bond counsel. Consolidating these functions will slightly reduce the cost of issuance, and conserve time in coordinating with multiple firms.
This agreement comes at no inherent cost. When the City issues bonds, however, bond counsel is compensated as a percentage of the bond. The compensation is deducted from the bond proceeds. The exact percentage depends on the amount of the bond and the source of the pledge; the details regarding the proposal are attached to this agenda item.
APPROPRIATION CODE AND AMOUNT:
N/A