Staff recommends adoption of the proposed resolution authorizing execution of a contract with Larson Consulting Services, LLC. to provide financial advisory and consulting support services.
On July 10th of this year, the City received notice from D.A. Davidson regarding its departure from public finance in the State of Florida effective July 30, 2009. The City has approximately $122 million in bonds outstanding related to capital infrastructure for its general government and utilities, letters of credit totaling $15 million for liquidity needs, a seller’s note related to Plantation for $8 million, a bank note with Wachovia for approximately 1.4 million for the Carver CRA, a $4.5 million Bond Anticipation Note (BAN) for Magnolia Townhomes formerly known as Kristen Court and a $7.5 million BAN related to Highway 441/27 improvements which is expected to go to the capital markets in late September. The City has a complicated debt structure which requires constant attention due to the reporting and disclosure responsibilities the City has to its citizens, investors, Wall Street and its various rating agencies.
The City has been able to maintain continuity with its financial advisor Jeff Larson, who was first introduced to the City when with the firm Kirkpatrick Pettis in 2003. The City renewed and amended its agreement with D.A. Davidson, formerly Kirkpatrick Pettis in February 2004 and again in January 2006. With the departure of D.A. Davidson from the State, and with blessing from his former employer, Mr. Larson has retained the client base he established and created his own company, Larson Consulting Services, LLC. Due to the complexities of the City’s financial transactions, the city will benefit from the retention of the institutional knowledge Mr. Larson brings through his new company. Moreover, Mr. Larson’s participation in surveillance calls with Wall Street has been instrumental in the retention of the City’s current credit ratings. The City’s underlying ratings are more important now than they ever have been with the changes on Wall Street and the loss of the bond insurers market.
1. Authorize execution of the contract with Larson Consulting Services, LLC. Or;
2. Such alternative action as the Commission may deem appropriate
As per contract which reflects charges typical for these types of services.
Prepared by: ____Jerry Boop________
Attachments: Yes__X__ No ______
Advertised: ____Not Required ______
Attorney Review : Yes___ No ____
Reviewed by: Dept. Head ________
Finance Dept. _________JB_______
Deputy C.M. ___________________
City Manager ___________________
Account No. _________________
Project No. ___________________
WF No. ______________________
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA, AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AN AGREEMENT FOR FINANCIAL ADVISORY AND CONSULTING SUPPORT WITH LARSON CONSULTING SERVICES, LLC AND PROVIDING AN EFFECTIVE DATE.
WHEREAS Mr. Larson, of Larson Consulting Services, formerly with D.A. Davidson & Company, and the City of Leesburg both were parties to a Financial Advisory Agreement originally dated February 9, 2004 with D.A. Davidson & Company formerly Kirkpatrick Pettis, and amended on January 1, 2005;
WHEREAS Mr. Larson is currently involved in the ongoing financial planning activities of the City;
WHEREAS it is in the best interest of the City to retain institutional knowledge, skills and expertise;
NOW THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA:
THAT the Mayor and City Clerk are hereby authorized to execute the Financial Advisory and Support Services Agreement with Larson Consulting Services LLC, whose local address is 10151 University Blvd, Suite 117 Orlando, Florida 32817 to provide financial advisory and support services to the City.
THAT this resolution shall become effective August 1, 2009.
PASSED AND ADOPTED by the City Commission of the City of Leesburg, Florida, at a regular meeting held the 27 day of July 2009.