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AMENDMENT NO. TWO TO CONTRACT K-9697-37: A CONTRACT BY AND BETWEEN THE CITY OF NORMAN, OKLAHOMA, NORMAN UTILITIES AUTHORITY, NORMAN MUNICIPAL AUTHORITY, AND NORMAN TAX INCREMENT FINANCE AUTHORITY AND MUNICIPAL FINANCE SERVICES, INC., REMOVING FIRST SOUTHWEST CORPORATION/HILLTOP SERVICES AS A CO-FINANCIAL ADVISOR FROM THE FINANCIAL SERVICES AGREEMENT FOR THE CITY OF NORMAN.
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BACKGROUND: The City of Norman, Norman Tax Increment Finance Authority, Norman Municipal Authority and Norman Utilities Authority have contracted with Municipal Finance Services of Edmond, Oklahoma and First Southwest Company, succeeded by Hilltop Securities, Inc. of Houston, Texas, for financial advisory services since adoption of Contract K-9697-37, on July 10, 1996. The Agreement provides for financial advisory services related to proposed and approved debt issuances of the City of Norman and its related trusts. The contract was amended on October 10, 2006 to comply with updated Securities Exchange Commission (SEC) and Municipal Security Rulemaking Board (MSRB) regulations, to add advisory services related to tax increment finance districts, and for adjustments to the compensation schedules. First Southwest Corporation was succeeded by Hilltop Securities, under the terms of the City's Financial Advisor Agreement, in 2018.
The Financial Advisory Team has aided the City's Finance Department and City Attorney in these various financial functions since the adoption of the Agreement.
DISCUSSION: On May 11, 2020, the City received notice from Hilltop Securities Corporation of their intent to resign from their service as the City's co-Financial Advisor, pursuant to their desire to bid on future debt issuances of the City of Norman and its related trusts (see attached resignation letter). In order to formalize the City's Financial Advisory Agreement with Municipal Finance Service as the sole provider of the services, to comply with further updates to SEC and MSRB regulations, ...
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