MEMORANDUM

TO: City Council

FROM: David J. Deutsch, City Manager

SUBJECT: R-80-08, Awarding Contract for Bond Counsel Services

DATE: November 26, 2008

The Council annually adopts a six-year Capital Improvements Program (CIP) which identifies the capital projects to be undertaken by the City and the estimated costs associated with each project. The CIP includes a project titled “City Hall” which Council authorized for the construction of a new City Hall to be located on City owned property at the Bowie Town Center.

The City plans on issuing general obligation bonds to fund a significant portion of the new City Hall. It is necessary to engage the services of bond counsel to assist in the issuance of the bonds.

The Government Finance Officers Association’s Recommended Practice for Selecting Bond Counsel defines Bond Counsel as follows:

“An essential member of a governmental issuer’s bond financing team is bond counsel. Bond counsel renders an opinion on the validity of the bond offering, the security for the offering, and whether and to what extent interest on the bonds is exempt from income and other taxation. The opinion of bond counsel provides assurance both to issuers and to investors who purchase the bonds that all legal and tax requirements relevant to the matters covered by the opinion are met.”

In accordance with Section 61 of the City Charter, a legal notice was placed stating the City’s Intent to Negotiate for this service. Four proposals were received by the October 10, 2008 deadline. The responses were from:

Based on a thorough review of the proposals, staff recommends that the proposal submitted by Funk & Bolton in the amount of $25,000 be accepted.

Staff recommends that Council pass Resolution R-80-08, awarding a Bond Counsel contract to Funk & Bolton.

DJD/RSP

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