TITLE
Recommendation to authorize City Manager, or designee, to execute all documents necessary to amend contracts with Barbara A. Lloyd, Municipal Advisory Services, of Los Angeles, CA; Frasca & Associates, LLC, of New York, NY; KNN Public Finance, of Los Angeles, CA; Montague DeRose and Associates, LLC, of Westlake Village, CA; Public Financial Management, Inc., of Los Angeles, CA; and Public Resources Advisory Group, of Los Angeles, CA, to provide financial advisory services on an as-needed basis, to extend the contract terms for an additional one-year period through May 31, 2021, and add an additional one-year renewal option, at the discretion of the City Manager. (Citywide)
DISCUSSION
City Council approval is requested to amend the terms of six contracts to add an additional one-year period through May 31, 2021, and add a one-year renewal option, for financial advisory services on an as-needed basis.
On March 24, 2015, the City Council adopted Specifications No. RFP FM15-019 and awarded contracts to Barbara A. Lloyd, Frasca & Associates, LLC, KNN Public Finance, Montague DeRose and Associates, LLC, Public Financial Management, Inc., and Public Resources Advisory Group to provide financial advisory services, in an annual amount not to exceed $1,200,000. The firms are used on an as-needed basis for a variety of projects related to the General Fund, Enterprise funds, and Special Districts Assessments. The firms provide analytical, financial, and industry expertise to the City, including the Airport, Harbor, and Water Departments. Access to financial advisory firms is necessary to preserve the City's ability to address financial, legal, and regulatory developments in a comprehensive and timely manner. The current agreements expired on May 31, 2020.
Following the City’s emergency declaration related to the COVID-19 pandemic on March 4, 2020 and its resurgence, the demand on City resources has been tremendous. Considering the impact and continued demands of the ongoing pandemic on the City’s limited resources, it would be prudent for the City to extend the original contract to ensure continuity of services while continuing to respond to the public emergency. The extension and additional one-year renewal option will facilitate service continuity, while still maximizing the opportunity to initiate a Request for Proposal in accordance with the City’s procurement policies should resources become available as the pandemic eases. The combined contracts for financial advisory services will not exceed $1,200,000 annually and would extend the term through May 31, 2022, if the additional one-year renewal option is exercised.
This matter was reviewed by Deputy City Attorney Amy R. Webber on July 24, 2020, Deputy Finance Director Sandy Tsang-Palmer on July 20, 2020, and by Budget Management Officer Rhutu Amin Gharib on July 23, 2020.
TIMING CONSIDERATIONS
City Council action is requested on August 11, 2020, to allow for uninterrupted continuation of services.
FISCAL IMPACT
The requested amendment will extend the contracts with various financial advisory firms for one additional year to May 31, 2021, with the option to extend one more year, in an annual amount not to exceed $1,200,000. Sufficient funds are budgeted in the General Fund Group in the Financial Management Department. Any work not currently budgeted is subject to appropriation approval by the City Council. This recommendation has no staffing impact beyond the normal budgeted scope of duties and is consistent with existing City Council priorities. There is no local job impact associated with this recommendation.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
JOHN GROSS
DIRECTOR OF FINANCIAL MANAGEMENT
APPROVED:
THOMAS B. MODICA
CITY MANAGER