Title
Miscellaneous Financing Items (NB)
Explanation
In considering the future borrowing needs of the Utility, staff will evaluate different financing options. One of the options staff has recommended in the past and will consider in the future is the possibility of entering into a swap instrument for all or a portion of the debt issuances. The Commission has previously approved four firms, Merrill Lynch Capital Markets, Inc., JP Morgan Chase Bank, Goldman Sachs Mitsui Marine Derivative Products, L.P., and UBS AG, to provide such services. Staff recommends that we work with our Financial Advisor, Morgan Stanley, to add a fifth firm to the pool - Bear, Stearns & Co., Inc. (Bear, Stearns). Bear, Stearns continues to bring value to the Utility in the form of solid recommendations for financing opportunities. Staff believes that Bear, Stearns would be a complement to the approved pool as this would allow an additional firm an opportunity to bid competitively for swap business. Upon approval of the above recommendation, Bear, Stearns will be added by the execution of an agreement substantially in the form of an industry standard master agreement, into which City of Gainesville specific schedules and credit support documents will be incorporated.
In 2002, the City Commission authorized the selection of JP Morgan as remarketing agent for the 2002 Series A and Series B Bonds. With the assistance of our Financial Advisor, staff has been evaluating the possibility of adding an additional remarketing agent to provide the option of using a separate remarketing agent for these bonds. Staff believes that by introducing another firm into the remarketing process, savings through the competitive environment may be realized. Therefore, it is the recommendation of your staff and Financial Advisor that we negotiate and enter into a Broker-Dealer agreement with A.G. Edwards & Sons, Inc. (A.G. Edwards). A.G. Edwards has a large presence in the financial markets, part...
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