2010-11-16 Audit/Finance Committee Minutes' !1 �I -f 1
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P1��ElVT': 1Vlayor IVlarlc �ui-�a��lis; CouiZcil Member Jaan�s I�.in�,
C;OLlI1C1I M�111�e1 GIli13 �!a��S, �hair
�5 S e George Cainpbell, City ana�er; Joi7 Fortuile, Assistant �ity
Maila��r; Fred �r�ene, Assistail� Cit� anager; ry
L, gley, �i1i�f Fin cial (�fficer; Antonio I�uente, Assistant
I�ir�ctoz• ofFiiz ce; Harvey Jarvis, Contioller; Caroline
Fii11�y, Tr�asury �idininistrator; Michelle McCalluin, udget
and IVlunicipal Caui-t Mana�ei; Cody Woad, Assista�it
C;011�i0II�P; Keviii Mullen, Assistant Controller; Melai�i�
Beard, Accauilts P�yable Sup�rvisor; Jo1vl i� ell,
Applicatioils �rc�gra,nl Sup�rvisor; Beau L,allaz, atabase
Administrator; Tiff y Tho pson, Custoiner S�rvic�
Slip�I"�IISOl, Ja ie Liridsay, Utility Finailcial CoordiFlator;
Th�res� Jaworslci,l2ecord`zz1� Secr�tary
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�, A�ciit/Fiii�nce ��arr�rniti�e Ac�ion It�rr� 1!'I�ti�i�c
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Langley confi ed the request and will include the info ation in the report.
Action Ite :
rovi e i for ation on evelo er escrow fun s. e ort s onl inclu e ot roject
ex enses an any uns e t fun s. I a ition, t e re ort s o 1 in icate re uire
ti elines a or inance rovisions.
3. eceive a re ort, ol a iscussia , an ive staff irection re ar i t e i of
e ton's cantracts it irst out est o any for inancial a viso ,
conti i isclos re, an ar itra e se ices.
Assistant Finance irector, Tony Puente, explained the City's history with First Southwest
and the current cantracts for financial advisory, continuing disclosure, and arbitrage. The
Finance department approached First Southwest with the services they provide and the
possibility of inerging these services into a single contract that would reduce costs and
improve efficiency. First Southwest responded with a proposal that wauld lower the City's
fee schedule for arbitrage services by 15% and a cast savings of approximately $7,OOd.
There would be no fee increases for continuing disclosure services and no fee increase for
financial advisory services. First Southwest also added a one-ti e cast savings of $39,165
on the GO Refunding onds, Series 2010A.
Staff recammends that the proposed contract amendment to the City's contracts with First
Southwest Co pany far financial advisory, cantinuing disclosure, and arbitrage services be
forwarded to the City Council for consideration.
A discussion followed on the request for proposals, competitive bidding process, the current
contracts and expiration dates with First Southwest.
Mayar urraughs asked if by merging all services ( P) into one contract is there a
possibility of eliminating eompetitive bidders who may not provide all three services and
narrow our options?
Puente explained that the P would be crafted to allow co panies to partner up with other
fi s, enabling them to offer all three services.
Mayor urroughs requested that language with the expression of this intent be included in
the backup, should this itern go to Council, to avoid eliminating possible competitive
bidders far this contract.
Langley will craft the P to include all the aptians in the backup and examine the bidders
independently as well as a whole, to rneet the concerns expressed by the Committee .
With the changes agreed upon, the Committee recom ended that the contract for financial
advisory, continuing disclosure, and arbitrage be brought forward to the City Cauncil.
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Pricing comparisons and the positive pay options were discussed.
Mayor urroughs requested additional info ation on the Bid Tabulation and Pricing
Comparisons. The criteria used to rate the banks services as well as the relevance and
importance of the services to the City should also be included in the backup.
Co mittee reca mended that the elis Fargo depository bank proposal be brought forward
to the City Council for consideration with the info ation requested by Mayor urroughs.
6. eceive a re ort, oi a iscussion an ive staff irection re ar in ra osals for
erc ant se ices.
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Action Item:
rovi e a re ort to esti ate the i act of hotel internet rese ation sites on hotel
occnpancy tax revenue.
With no more items �� consider, the meeting adjourned at 3:31 p.m.
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CH S WATTS
CO ITTEE C
CITY OF DENTON, TE S
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CO ING SEC T Y
CITY OF DENTON, TEXAS