Title
Authorize the City Manager to approve an agreement for financial and investment advisory services with Harrison Securities, Inc.
Summary
The City of Pflugerville has utilized the services of Mr. William Harrison of Harrison Securities, Inc. since 1984. Mr. Harrison has worked with the City in issuing General Obligation bonds, Certificates of Obligation, and Revenue bonds. He manages the City's debt so that level debt service is maintained as new issues are added. Mr. Harrison provided guidance in the development of official statements and proformas for each bond issuance which are distributed to the bond buying community. Those documents have been instrumental in raising Moody's rating of the city's bonds from Baa2 in 1998 to a current Aa2, representing a substantial lowering of interest costs. The interest rate that the City's various bond issues carry are at or below the rates estimated for that size of municipal bond at the time of issuance.
In addition to assisting the City with bond issuances, Mr. Harrison constantly monitors opportunities for refunding previous bond issues and, along with General Counsel and Bond Counsel, is available to review documents that may or may not require bond financing. He also assists staff with the development of proformas which consider the issuance of future debt to maintain appropriate debt coverages.
The attached contract document contains information that is required by the Municipal Securities Rulemaking Board (MSRB) as a result of federal legislation governing financial advisors. Certain disclosure language must now be included within contracts. This contract contains all necessary disclosures and has been reviewed by the City Attorney. The contract can be terminated at any time with or without cause by the City upon thirty days written notice. The fees shown in Appendix A reflect no increase.
Deadline for City Council Action
In order for Mr. Harrison to continue to assist the City, this proposal and agreement must by approved by the City Council and executed.
Fiscal Impact
Fees for Mr. Harrison's services are paid from bond proceeds when the bonds are sold.
Staff Recommendation
Authorize execution of this agreement.
Drafter
Lauri Gillam
Assistant City Manager