Minutes 06/10/1980 - Laserfiche WebLink

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~ :30 TUESDAY JUNE 10, 1980 Wheat First Securities, Inc., Blyth Eastman Dillon & Company, Inc., Paine Webber, Inc., and Salomon Bros., Inc., as financial advisors to the City for said proposed project, to the extent set forth in the committee report: The Citizens Hydro Project Financial Subcommittee, including J. R. Cobbe, A. D. Harrell, R. S. Pannill, and F. L. Schuermann, has completed its search for a suitable firm to recommend as project financial advisor to the City. A proposal, drafted by the Committee and Mr. Noland, requested bids from 16 firms involving two phases: 1. To develop a financial feasibility report for the project and coordinate preparation of a total financial technical and legal report to the citizens of Martinsville prior to a referendum vote. 2. Subsequent to approval to proceed, the firm selected would provide standard pre-financing coordination, bond sale development, bond implementation, and post marketing assistance. Prospective financial advisor firms submitted their proposals which included the option of City Council granting or not granting permission for their participation in a competitive or negotiated bond sale. Also, the firm selected could choose not to participate should it so decide. After reviewing the proposals received, the Subcommittee narrowed their consideration to three: James J. Lowrey and Company Wheat, Blyth Eastman, Paine Webber, Inc., Salomon Brothers Lazard Freres and Company From 3:30 to 10:00 P.M. yesterday, June 9th, the Subcommittee accepted oral presentations and questioned representatives of these three firms. In each case, the person who would work directly with the City, R. W. Beck Engineers, and our bond Counsel were present as requested. In our evaluation, we would suggest Lazard Fr~res not be considered because of unfamiliarity with our proposed project and their required fee. The other two firms have essentially similar fee schedules. The Wheat and Associates proposal of a Phase I fee of $10,000 covering their costs through our referendum and a Phase II fee of $50,000 from the referendum through the bond issue, coupled with their personnel's familiarity with the securing of financing to meet the City's requirements, would permit their providing the best overall service to the City at a competitive cost. It is the Subcommittee's collective opinion, and we therefore recommend to Council, that Council give positive consideration to contracting employment of this financial advisory group for the proposed Ridgeway hydro proj ect.