CITY'S DEBT ISSUANCE PROCESS / FINANCIAL ADVISORY SERVICES

Motion - The City Administrative Officer is charged with administration of the City's debt administration program. To assist in carrying out its duties, the CAO contracts for certain specialized services, including financial advisors. The CAO recently issued a Request For Proposal (RFP) for the Wastewater Program and a Request For Qualifications (RFQ) for financial advisors to be included in a pool from which firms would be selected to serve on various debt issues (e.g. MICLA; Mello Roos; Parking Revenue; etc.). The CAO indicated that the RFP/RFQ was issued on January 24, 2007 through authority provided in the annual budget process, and that proposals were received before February 9th and are being rated. The recommended firms to be included in the financial advisory pool will be submitted to the Council and the Mayor for approval. The Council has recently focused its attention on the City's debt issuance process and the role of the various advisors that are hired to advise the City through its participation in the financial markets. Therefore, it is especially important that the Council review any solicitations and provide input before such solicitations for financial services are issued by the City. THEREFORE MOVE that the Council: 1. Instruct the City Administrative Officer to immediately cancel the RFP for co-financial advisor to the Wastewater Program and the RFQ for financial advisor to serve on various debt issues, issued on January 24, 2007, including: General Fund Lease Financings; Judgment Obligation Bonds; Land-Secured Assessment Financings; Parking System Revenue Bonds; Solid Waste Resources Revenue Bonds; Special Tax or Assessment District Financings; and Tax and Revenue Anticipation Notes. 2. Instruct the CAO to submit a draft RFP for co- financial advisor to the Wastewater Program and a draft RFQ for financial advisor to serve on the programs specified in recommendation No. 1, above, to the Ad Hoc Public Debt, Bonds and Financing Committee and the Budget and Finance Committee within 15 days. Such RFP and RFQ should be structured to encourage as many qualified firms to apply as possible and to especially encourage qualified firms located in the City of Los Angeles to respond. 3. Authorize the CAO to extend current contracts on a per deal basis, as necessary, until the RFP and RFQ process for financial advisory services is completed.