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 consulting services agreement for Financial Advisory, Arbitrage Rebate and Continuing Disclosure Services for the City of Denton; providing for the expenditure of funds therefor; and providing an effective date (File 6228-awarded to FirstSouthwest, a Division of Hilltop Securities Inc. and FSC Continuing Disclosure Services, a Division of Hilltop Securities Inc., hereinafter called "HilltopSecurities" and affiliate, First Southwest Asset Management, LLC). The Audit/Finance Committee recommends approval (3-0).
Body
FILE INFORMATION
In December 2010, staff renegotiated three separate contracts with First Southwest ("FSW") into a single contract in an effort to reduce costs and improve efficiencies. The City Council approved the consolidated contract (Ordinance No. 2010-304) on December 7, 2010. Through this effort, the City's fees for arbitrage rebate services were reduced by 15% or $7,000 per year and a one-time savings of $39,165 recognized from reduced financial advisory services fees on the GO Refunding Bonds, Series 2010A. While there was no fee reduction for continuing disclosure services, the increased requirements for regulatory disclosures translated to an increase in services for the same cost to the City. Additionally and in conjunction with this effort in 2010, the City also renegotiated its investment advisory services contract with First Southwest Asset Management ("FSAM"), a division of FSW. Investment advisory services are separate services from those provided by FSW. That effort resulted in a savings of $15,000 and a reduction in fees that continues to today.
On February 21, 2012, the City Council adopted Ordinance No. 2012-029 awarding a five (5) year contract to FSW for financial advisory, arbitrage rebate and continuing disclosure serv...
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