The City Council this week unanimously approved an amendment to Seal Beach’s contract with Fieldman, Rolapp & Associates, Inc. Fieldman provides Seal Beach with advice on financing and issuing debt. The city is looking at debt options to pay for improvement projects such as water and sewer. (For details, keep reading.)
This was a Consent Calendar item. The council doesn’t talk about consent items unless a council member pulls one individual discussion. Nothing was pulled from this week’s Consent Calendar.
Background
“Due to the nature and complexity of the City’s current capital improvement projects, particularly those related to the water and sewer systems, it is important to extend the agreement at this time to ensure continuity of services and avoid disruption to ongoing financial planning efforts,” wrote Finance Director Barbara Arenado.
“Financial advisory services are needed to assist the City in structuring the debt necessary to fund construction projects related to the City’s water and sewer systems,” Arenado wrote.
“Any debt financing recommendations will be brought to Council for review and approval prior to implementation. The new agreement extends the current agreement for an additional five (5) years, introduces a revised fee schedule, and provides for an annual three percent (3%) annual fee increase each year. Given that the City is actively assessing debt strategies and timing for issuance, extending the agreement now ensures that advisory services remain uninterrupted during this critical phase,” Arenado wrote.
“Adequate funding is included in the adopted FY 2025-26 Annual Budget and will be included in future budgets, as necessary,” Arenado wrote.
“Historically, financial advisory services have ranged from approximately $10,000 to $30,000 per year,” Arenado wrote.
“Professional services for a bond issue would be determined based on the nature and size of the transaction,” Arenado wrote.
According to “exhibit B” of the contract, the cost of debt transactions greater than $200,000 would be negotiated whether the transaction was for Community Facilities District bonds, general fund-backed bond or utility bonds for water and sewers.
The hourly rate, according to the same document, varies by the position of the personnel involved. For example, an administrative assistant’s hourly rate would be $106 an hour. An executive officer’s hourly rate would be $440 an hour.
“Costs incurred would be charged to the appropriate fund or bond proceeds and would continue to be budgeted in future years. Therefore, no additional appropriation is required at this time,” Arenado wrote.
