City of Flagler Beach AGENDA ITEM #_1°U Item Summary and Recommendation SUBJECT: Approval and execution of contract for financial advisor services with Public Financial Management Inc. in respect to the City’s Stormwater financing and the CRA capital projects financing. BACKGROUND: _ In September of 2007, the City Commission had a presentation by Jay Glover of Public Financial Management Inc. for financial advisory services related to the CRA and obtaining a bank negotiated loan in order to complete the downtown improvements. At that meeting, the Commission directed the City Manager to negotiate a contract with the firm. However, due to the Strand case, negotiations were put on hold. The Strand case is over and the Commission has approved moving forward with the bank negotiated loan for the CRA as well as the Stormwater city-wide. The contract has been negotiated, the City Attomey has reviewed it and it is now ready for Commission approval. This contract is mirrored to the recent agreement they have with the City of Melbourne Beach. (Keep in mind, no payment is made to the company unless the loan is closed with the bank) RECOMMENDATIONS: Approval and execution of the contract ATTACHMENTS: Contract for financial services SUBMITTED BY: Caryn Miller, CRA Director DATE: 12/16/2008 Reviewed by: _ City Clerk Comments if any: Nong, Finance Director _Fiscal Impact if any: Other La Manager Comments ifany: fe comma approval -2009 K:2009\Commission\Item Summary\01082009\Financial Services Contract for 1 meeting-revised.docCity of Flagler Beach, Florida CONTRACT FOR PROFESSIONAL FINANCIAL ADVISOR SERVICES This contract is entered by and between the City of Flagler Beach, Florida, (CITY) and Public Financial Management, Inc., a Pennsylvania Corporation, 300 South Orange Avenue, Suite 1170, Orlando, Florida 32801 (FINANCIAL ADVISOR) on this day of » 2008. Whereas, the City contemplates the financing or refinancing of capital projects or other projects; and Whereas, the City desires to develop feasible, economical and equitable plans of procedure in carrying through to completion such issues; and Whereas, the preparation of such plans and their execution requires certain studies, analyses, and recommendations to be made by persons qualified by training and experience to do so; and Whereas, a qualified Financial Advisor will be required to assist in the marketing of all types of bonds, notes or other obligations (the "Obligations") authorized after acceptance of such a plan of procedure; and Whereas, the City after due investigation and deliberation, has determined that the Financial Advisor is qualified by training and experience to provide such services WITNESSETH: The City and the Financial Advisor for TEN ($10.00) DOLLARS and other good and valuable consideration hereby covenant and agree as set forth below. I, TERM OF CONTRACT The initial term of this Agreement shall be for five (5) years measured from the date first written above, subject to annual renewals at the City’s discretion. II. STATEMENT OF PROFESSIONAL FINANCIAL ADVISOR SERVICES It is agreed without limiting the generality of the foregoing that the Financial Advisor shall, upon written notice from the City Representative, perform the following services in connection with the authorization, sale and delivery of Obligations subject to the conditions and in consideration of payment as hereinafter set forth. Page 1 of 13 pagesCity of Flagler Beach, Florida A. GENERAL. 1. Assign competent personnel to perform all work in connection with these programs and be available for consultation with the City at all reasonable times. 2. Personnel assigned by the Financial Advisor to provide services pursuant to this Agreement shall be subject to the approval of the City and shall not be removed or replaced without the prior written approval of the City Representative. B. ISSUANCE OF DEBT. The Financial Advisor shall provide the following specific services for the City in a timely and prompt manner: 1, Respond to questions of the City with regard to matters pertaining to the incurrence of Debt. 2, Review any proposed financing program and advise the City with regard to the structure and procedures relating thereto, including scheduling of events for timely issuance, potential cost- saving techniques and other non-legal matters relative to the issuance of debt (whether in the form of commercial paper, notes, bonds, letters or lines of credit, certificates of participation, or the advance or current refunding or defeasance of outstanding debt). A proposed financing may be subject to a validation proceeding and may be sold through either a competitive bid or negotiated sale, including private placements. 3. Advise the City as to the advisability of proceeding with a proposed financing, and to recommend, taking into account any established written debt policies of the City, to proceed to issue the Debt either through a competitive bid or a negotiated sale. 4. Develop a plan of responsibility and timetable for the necessary activities of the City's financing team as they relate to issuing Debt. Attend all required meetings of the City and, in the event that a negotiated sale is undertaken, all meetings with representatives of the selected underwriters. 5. With regard to negotiated sales of Debt, prepare and solicit on behalf of the City requests for proposals and/or qualifications, or indications of interest from underwriters of municipal securities, review and analyze such proposals/qualifications or indications of interest, and based on such review and the professional knowledge and experience of the Financial Advisor, recommend to the City the senior managing underwriter and co-managers (where appropriate) . Page 2 of 13 pages