AGENDA INFORMATION SHEET
DEPARTMENT: Materials Management
ACM: Bryan Langley
AGENDA DATE: December 6, 2016
SUBJECT
Title
Consider adoption of an ordinance authorizing the City Manager to execute a professional services agreement for Bond Counsel Services for the City of Denton; providing for the expenditure of funds therefor; and providing an effective date (File 6254-awarded to McCall, Parkhurst and Horton, LLP ("MPH"). The Audit/Finance Committee recommends approval (3-0).
Body
FILE INFORMATION
On February 21, 2012, the City Council adopted Ordinance No. 2012-028 awarding a five-year contract to McCall, Parkhurst and Horton, LLP ("MPH") for bond counsel services. This contract became effective March 27, 2012 and is due to expire on March 26, 2017. In an effort to reduce costs at that time, staff requested that MPH review its fee schedule for the City which resulted in a slight reduction in fees. At that time, staff estimated that the reduced fee schedule represented a savings of $2,500 on a $50 million bond sale. The current fee schedule is a graduated fee schedule with declining rates as the amount of bonds increases. Additionally, MPH agreed to include a provision that if an issue exceeded $100 million they would extend a negotiated discount for that issue. For the upcoming Utility System Revenue Bonds, Series 2016, the firm agreed to a discount of approximately $38,000 to coincide with their proposed fees for a potential new contract. This discount is not contingent upon approval of a contract.
In anticipation of this approaching expiration date, staff requested a proposed fee schedule from MPH for this service assuming a five (5) year continuous term contract. While the term of the contact is proposed for five (5) years, the City has the right to terminate the contact with thirty (30) day notice. Below are the current and proposed fees:
Current Fee
Proposed Fee
Bond Counsel Services:
Base Fee for first $1 million of Bonds
$5...
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