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OCII authorizes bond counsel and disclosure counsel contracts to support Mission Bay financing
Summary
The commission authorized personal-services contracts for bond counsel (Jones Hall, up to $470,000) and disclosure counsel (Carl Bartling/Kearls Bartling, up to $196,000) to support planned Mission Bay refunding and new-money bonds, with staff estimating potential tax-exempt bond savings in excess of $15 million.
The Commission on Community Investment and Infrastructure on April 7 authorized two personal-services contracts to support planned debt transactions for Mission Bay North and South: Jones Hall as bond counsel (not-to-exceed $470,000) and Carl (Kearls) Bartling as disclosure counsel (not-to-exceed $196,000).
John Daigle, senior financial analyst, told commissioners the not-to-exceed amounts were based on a planning assumption of issuing up to five series of bonds totaling approximately $365 million and refunding multiple outstanding series. He said the final fees will be determined by the actual number of bond series and refunded bonds and noted that disclosure-counsel fees depend heavily on the number of official statements required.
Daigle said, under current market assumptions, estimated savings on the tax-exempt refunding bonds could exceed $15,000,000 (staff noted a different present-value figure in the memo but explained the larger number as total estimated savings). He said taxable bonds are planned to fund low- and moderate-income housing uses because tax-exempt restrictions preclude certain housing assistance uses.
Daigle described the selection process: staff issued an RFP to firms on the city's bond counsel pool, received eight responses (four proposing as bond counsel), and a panel of three agency staff evaluated proposals and selected Jones Hall and Carl Bartling for their successor-agency experience, local presence and competitive pricing. Commissioners asked about prior engagements; staff recapped prior transactions involving Jones Hall and Carl Bartling.
Commissioner Singh moved approval; the motion was seconded and the commission approved both contracts by roll call (3 ayes, 1 absent). Staff said next steps include preparing bond documents, selecting underwriters with the controller's office/public finance and returning to the commission for approval of basic bond documents prior to oversight-board and Department of Finance review.
