Council approves Piper Sandler financial advisory agreement for 2026–2028 bond work

The Andover City Council voted 5-0 to approve a financial advisory services agreement with Piper Sandler that will cover matters related to the issuance of bonds and temporary notes through 2028.

City staff introduced the contract renewal and said the city must maintain a financial services agreement to move forward with permanent bond or temporary note financings. Clayton Kelly, representing Piper Sandler, described the firm’s role in preparing financing documents, coordinating with the city’s bond counsel and seeking the lowest cost of capital. Kelly said the firm’s fees had not increased since 2022 and that the renewal includes a modest increase intended to align Piper Sandler’s compensation with peer-city contracts. "We will be increasing our fees this go around. We haven't done so since 2022. It's an increase of about $5,000 per segment when you look at the chart there on the fees," Kelly said.

Kelly explained the firm is paid only when a financing actually takes place; he gave an example that a bond in the $5 million–$7.5 million range would produce a closing fee of about $40,000 under the updated schedule (an example compared with $35,000 under the prior agreement). Council members asked clarifying questions about how fees are applied across financing bands; staff confirmed the agreement governs advisory services for bond and note financings and that the firm’s compensation is contingent on successful financing closings.

The council approved the agreement on a 5-0 vote.