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Adoption of Resolution Relating to the Securities and Exchange Commission Municipalities Continuing Disclosure Cooperation Initiative. (Finance 2410)
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To: Honorable Mayor and Members of the City Council
From: John A. Russo, City Manager
Re: Adoption of Resolution Relating to the Securities and Exchange Commission Municipalities Continuing Disclosure Cooperation Initiative.
BACKGROUND
Approximately 20 years ago, the Securities and Exchange Commission adopted Rule 15c2-12 (the "Rule") which requires municipalities issuing bonds to proactively inform the marketplace of their annual financial results. As bonds were issued, cities regularly included in the bond documents a Continuing Disclosure Agreement. By this agreement, cities were required to provide the market place with city-related financial results, forecasts and other operating data. During the first 13 years, there were a variety of agencies and websites competing to become the "one stop" shop for public agencies to file the documents required by the Continuing Disclosure Agreements.
The economic uncertainties of the recent past led the Municipal Securities Rulemaking Board to establish a website (Electronic Municipal Market Access, EMMA) to host the required filings under all public agency Continuing Disclosure Agreements. The Securities and Exchange Commission then announced a Municipalities Continuing Disclosure Cooperation Initiative (MCDC) in order to secure compliance among all municipal bond issuers. The MCDC Initiative allows issuers to self-report by December 1, 2014 any instances where compliance had been reported but in fact full compliance did not occur.
DISCUSSION
In an effort to comply with the MCDC initiative, a complete review of all debt issued by the City of Alameda, the former Community Improvement Commission, Alameda Public Finance Authority and Alameda Municipal Power (as well as Alameda Power & Telecom) was conducted. A comparison of ...
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