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CITY OF GLENDALE, CALIFORNIA
REPORT TO THE CITY COUNCIL
AGENDA ITEM
Report: Authorization to enter into a Legal Services Agreement with Norton Rose Fulbright US LLP, and a Professional Services Agreement with Public Financial Management Financial Advisors, LLC.
1. Motion authorizing the City Manager, the City Attorney, or their designees, to enter into and execute a Legal Services Agreement (LSA) with Norton Rose Fulbright US LLP (Norton) for a three-year term to provide Glendale Water & Power Department (GWP) bond counsel and disclosure counsel services, including the upcoming refunding of the 2026 Electric Revenue Refunding Bonds, for a not-to-exceed amount of $250,000.
2. Motion authorizing the City Manager, or his designee, to enter into and execute a Professional Services Agreement (PSA) with Public Financial Management Financial Advisors, LLC (PFM) for a three-year term to perform financial advisory services related to Glendale Water & Power Department (GWP), including the issuance of the 2026 Electric Revenue Refunding Bonds for a not-to-exceed amount of $100,000.
COUNCIL ACTION
Item Type: Action Item
Approved for March 10, 2026 calendar
EXECUTIVE SUMMARY
Glendale Water and Power (GWP) seeks to establish a Legal Services Agreement (LSA) with Norton, and a Professional Services Agreement (PSA) with PFM for bond/disclosure counsel services and financial advisor services, respectively. These agreements will provide specialized bond counsel, disclosure counsel, and financial advisory services necessary to support the issuance of the proposed 2026 Electric Revenue Refunding Bonds, as well as other potential utility bond financings during the agreements’ three-year terms.
The proposed refunding of the City’s 2016 Electric Revenue Refunding Bonds is expected to generate approximately $5.6 million in net present value savings, or an average annual savings of approximately $570,000 through 2038, based on current market conditions. The effective borrowing cost is estimated at approximately 2.60%, with final rates determined at the time of bond pricing. 210d
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Engaging experienced bond counsel and a municipal financial advisor is essential to ensure legal compliance, financial prudence, market competitiveness, and adherence to federal and state securities regulations.
Establishing a qualified financing team in advance of the upcoming 2026 Electric Revenue Refunding Bonds will provide continuity of professional services for future utility bond transactions during the three-year term. The proposed not-to-exceed amounts reflect anticipated services associated with the refunding transaction and other potential financings, dependent on the scope and timing of bond issuances.
These services are necessary to assist with the recommended 2026 Electric Revenue Refunding Bonds.
RECOMMENDATION
Authorize the City Manager to execute the LSA with Norton for $250,000 through June 30, 2029, to provide bond counsel and disclosure counsel services for the 2026 Electric Revenue Refunding Bonds and other utility bond issuances; and the PSA with PFM for $100,000 through June 30, 2029 to provide independent financial advisory services for the 2026 Electric Revenue Refunding Bonds and other utility bond issuances.
ANALYSIS
In 2016, the City of Glendale issued its Electric Revenue Bonds 2016 Refunding Series, to refund its 2006 Electric Bonds and a portion of the 2008 Electric Bonds. Total 2016 Electric Bond par at issuance was $72,615,000, and currently $43,105,000 is outstanding. The 2016 Refunding Series maturing on and after February 1, 2027, are subject to redemption prior to maturity, at the option of the City, as a whole or in part, on or after February 1, 2026.
The proposed refinancing of the 2016 Electric Refunding Bonds is expected to save on average about $570,000 per year through 2038 and achieve net present value savings of approximately $5.6 million over the life of the bonds (estimate based on current market pricing and subject to change). The effective borrowing cost is estimated at 2.60%. The actual rate and savings would be set at the time of sale.
The issuance of municipal revenue bonds requires specialized legal expertise to ensure compliance with federal tax law, state statutes, municipal securities regulations, and disclosure. Bond counsel plays a critical role in certifying the legality and enforceability of the bonds. As bond counsel and disclosure counsel, Norton will prepare and review bond resolutions, indentures, and financing documents, provide the legal opinion regarding the validity and tax-exempt status of the bonds, assist with preparation and review of the Official Statement, advise on continuing disclosure obligations, and ensure compliance with federal tax and arbitrage regulations.
The proposed three-year term allows for continuity of legal services for the 2026 Electric Revenue Refunding Bonds and any additional utility debt issuances that may arise during the term.
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PFM will serve as the City’s independent financial advisor. In this role, PFM will analyze refunding savings and debt restructuring opportunities, evaluate market conditions and recommend optimal timing of issuance, develop bond structure and amortization schedules, assist with credit rating strategy and investor presentation materials, oversee pricing to ensure market competitiveness and fairness, and provide independent verification of savings at the time of sale. PFM’s role is advisory only and independent from the underwriting function, ensuring that the City receives objective financial guidance focused on minimizing borrowing costs and maximizing long-term savings. The financial advisor’s participation is essential to validate savings thresholds and protect the utility’s financial position.
STAKEHOLDERS/OUTREACH
Not applicable.
FISCAL IMPACT
The full cost of these contracts over the three-year term is $250,000 for legal services and $100,000 for financial advisory services. Of this, it’s anticipated that $160,000 will be spent on legal services, and $70,000 will be spent on financial advisory services for the remainder of FY 2025-26, which were included as a part of the FY 2025-26 budget as outlined below. No new appropriation is being requested at this time. Future years’ appropriation will be budgeted during the annual budget process each year.
Existing Appropriation
Amount Account String Funding Source
$230,000 43110-5820-GWP-4505-P0000- Electric Works Revenue Fund
Department Cost Center Program
GWP GWP Administration
ENVIRONMENTAL REVIEW (CEQA/NEPA)
The action herein is not a project for the purposes of the California Environmental Quality Act (“CEQA”) and, therefore, an environmental review is not required pursuant to Sections 15378, and 15061 of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3.
CAMPAIGN DISCLOSURE
In accordance with the City’s Campaign Finance Ordinance No. 5744, the Campaign Disclosures including the names and business addresses of the members of the board of directors, the chairperson, CEO, COO, CFO, subcontractors, and any person or entity with more than ten percent interest in the company are attached as follows:
Exhibit 1: Norton Rose Fulbright US, LLP
Exhibit 2: Public Financial Management Financial Advisors, LLC 410d
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ALTERNATIVES TO STAFF RECOMMENDATION
Alternative 1: Not to authorize the actions requested and recommended in this report.
Alternative 2: Consider any other alternative not proposed by staff.
ADMINISTRATIVE ACTION
Submitted by:
Scott K. Mellon, P.E., General Manager - Glendale Water and Power Prepared by:
Adrine Isayan, Assistant General Manager – Finance & Risk Management Approved by:
Roubik R. Golanian, P.E., City Manager
EXHIBITS/ATTACHMENTS
Exhibit 1: Campaign Finance Disclosure for Norton Rose Fulbright US, LLP Exhibit 2: Campaign Finance Disclosure for Public Financial Management Financial Advisors, LLC