TO: Honorable Board of Directors
FROM: Chris Celsi, Executive Director
REPORT BY: Chris Celsi, Executive Director
SUBJECT: First Amendment to Agreement No. 2025-05 with KNN Public Finance LLC
RECOMMENDATION
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Approve and authorize the First Amendment to Agreement No. 2025-05 with KNN Public Finance LLC, to serve as the municipal advisor for the loan for the new Construction & Demolition Building, for a fixed fee of $95,000.
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EXECUTIVE SUMMARY
On February 7, 2025, the Authority entered into Agreement No. 2025-05 with KNN Public Finance LLC to evaluate financing options to fund construction of the new Construction & Demolition Building. Various options were presented and discussed by the Board of Directors at its meeting on March 13, 2025.
KNN has been meeting regularly with the Authority, soliciting proposals from potential lenders through a request for proposals process, and preparing debt service schedules and analysis. Proposals from potential lenders are due on September 8. KNN will review those proposals, negotiate key terms, and provide a recommendation to the Authority on a loan for the new Construction & Demolition Building. A complete description of their services is attached to this agenda item.
The initial work performed by KNN was paid on an hourly basis. For this amendment, KNN will be paid a fixed fee of $95,000 contingent on the successful closing of the loan, which is typical for this sort of transaction. Payment will be made from the loan proceeds.
FISCAL & STRATEGIC PLAN IMPACT
Is there a Fiscal Impact?
Yes
Is it currently budgeted?
Yes
Where is it budgeted?
Devlin Road Transfer Station Capital Improvement Project #17810
Is it Mandatory or Discretionary?
Discretionary
Discretionary Justification:
Authority does not have the expertise necessary to procure or evaluate the loans.
Is the general fund affected?
No
Future fiscal impact:
None.
Consequences if not approved:
Authority will need to procure the necessary expertise elsewhe...
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