HomeMy WebLinkAboutR-2021-125 Refinancing of Various SRF Loans Authorization to Bid and Appointing Dunlap & Associates as Financial Advisor for the RefinancingRESOLUTION NO.2021-125
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF DANIA
BEACH, FLORIDA, AUTHORIZING BID ADVERTISEMENT FOR
REFINANCING OF THE CITY'S VARIOUS STATE REVOLVING FUND
LOANS, AND APPOINTING DUNLAP & ASSOCIATES, INC. AS
FINANCIAL ADVISOR FOR THE REFINANCING; PROVIDING FOR
CONFLICTS; FURTHER, PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, the City has issued State Revolving Fund (SRF) loans over the years to
finance utility projects, including construction of the City's nanofiltration water plant and
various sewer and stormwater projects. These loans are administered by the Florida Dept. of
Environmental Protection ("FDEP") and are funded through the Federal Government with
varying rates of interest; and
WHEREAS, the City has a September 30, 2020 audited principal amount outstanding of
$9.8 million with various repayment terms through 2031; and
WHEREAS, there is a significant administrative burden associated with maintaining this
debt service due to the number of loans, minimum cash balance requirements, and loan maturity
audit requirements; and
WHEREAS, refinancing these loans into one (1) consolidated issue will reduce the
administrative burden, establish a single payment date, align them to the same maturity date, and
provide a net cash savings over the life of all loans; and
WHEREAS, the City's financial advisor Dunlap & Associates, Inc. has reviewed the
current debt obligations and determined the current interest rate market is optimal for refinancing
and recommends refinancing by means of a bank loan issue; and
WHEREAS, the City Commission desires to appoint Dunlap & Associates, Inc. to
represent the City's financial interests in matters relating to the SRF loan refinancing.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE
CITY OF DANIA BEACH, FLORIDA:
Section 1. That the above "Whereas" clauses are true and correct, and they are made
a part of and are incorporated into this Resolution by this reference.
Section 2. That the City Administration is authorized to proceed with bid
advertisement to refinance the SRF loans.
Section 3. That Dunlap & Associates, Inc. is appointed as financial advisor to
represent the City's financial interest in connection with the refinancing of State Revolving Fund
loans.
Section 4. That compensation to Dunlap & Associates, Inc. for financial advisory
services shall not exceed Twenty Five Thousand Dollars ($25,000.00) inclusive of all out-of-
pocket expenses, as set forth in the proposal letter from Dunlap & Associates, Inc., which is
attached as Exhibit "A", and is made a part of and incorporated into this Resolution by this
reference.
Section 5. That funding for these services shall be made available and appropriated
as transfers from the Water, Sewer, and Stormwater Fund Unreserved Net Position accounts as
follows:
Water Fund Admin — Professional Services 401-33-01-533-31-10 $8,334.00
Sewer Fund Admin — Professional Services 402-35-01-535-31-10 $8,333.00
Stormwater Fund Admin — Professional Services 403-38-01-538-31-10 $8,333.00
Section 6. That all resolutions or parts of resolutions in conflict with this Resolution
are repealed to the extent of such conflict.
Section 7. That this Resolution shall be in force and take effect immediately upon its
passage and adoption.
PASSED AND ADOPTED on August 24, 2021.
ATTEST:
.AACTHOMA SC IDER, �, 1 AR,
CITY CLERK �► aj4 MAYOR
OIISH��y
APPROVED A F RM AND CORRECTNESS
3
THOMAS J. hi BRO
CITY AT Y
2 RESOLUTION #2021-125
"Exhibit A"
Dunlap &
Associates
Financial Consultants
August 11, 2021
Ana M. Garcia, ICMA-CM
City Manager
City of Dania Beach
100 W Dania Beach Blvd.
Dania Beach, FL 33004
Re: Refunding
Dear Ms. Garcia:
On behalf of Dunlap & Associates, Inc. ("Dunlap"), I am presenting a Financial Advisory Agreement
("Agreement") for services related to the "current refunding' of various State Revolving Funds ("SRF") loans
issued through the Florida Department of Environmental Protection ("FDEP"). The services to be provided
are as follows:
1. Prepare a refunding analysis (attached) which estimates the potential savings for the City of
Dania Beach ("City") at current interest rate levels.
2. Working with the City's Purchasing Department, draft a Request for Proposals ("RFP") for a
"bank loan" which outlines the bidding parameters and seeks competitive bids from various
banking institutions throughout Florida. Dunlap will provide this RFP to the City for their
review and approval as well as a list of prospective banks who will receive such RFP.
3. Work with the City's Bond Counsel to review legal documentation which will be presented to
the City Commission for approval prior to the transaction being completed.
4. Evaluate, in conjunction with City Staff and Purchasing Department, the various responses
received from banking institutions to determine which response is in the best interest of the
City.
5. Prepare a written recommendation to the City for the award to the most responsive and
competitive bidder.
6. Coordinate with the FDEP on certain notifications and approvals necessary to refinance the
City's SRF loans.
7. Coordinate with City's Bond Counsel, Bank and Bank Counsel, the closing of the transaction.
For the Financial Advisory Services to be provided, Dunlap & Associates, Inc. proposes a fee of $25,000,
which can be paid from loan proceeds. This fee will include any out-of-pocket expenses incurred by our
Firm.
Upon review of the proposal please advise if you have any questions or comments. If none, please execute
and provide a copy of this document to us at your earliest convenience.
Sincerely,
l
Craig 11unlap
resident
Dunlap & Associates, Inc
Ana M. Garcia, ICMA-CM
City Manager
City of Dania Beach
16680 Lake Pickett Rd., Orlando, FL 32820
Telephone: 407.493.9393