TITLE
Recommendation to adopt Specifications No. RFP FM21-070 and award contracts to Frasca & Associates, LLC, of New York, NY; KNN Public Finance, LLC, of Los Angeles, CA; PFM Financial Advisors, LLC, of Los Angeles, CA; and, Public Resources Advisory Group, Inc., of Los Angeles, CA, to provide municipal advisory services, in an annual aggregate amount not to exceed $800,000, for a period of five years, with the option to renew for two additional one-year periods; and, authorize City Manager, or designee, to execute all documents necessary to enter into the contracts, including any necessary amendments. (Citywide)
DISCUSSION
City Council approval is requested to enter into contracts with Frasca & Associates, LLC, KNN Public Finance, LLC, PFM Financial Advisors, LLC, and Public Resources Advisory Group, Inc., to provide the City with as-needed specialized municipal advisory services.
Municipal advisory services are used on an as-needed basis for various projects related to the General Fund, Enterprise Funds, and Special Districts Assessments. The firms use their technical expertise and financial experience to provide debt-related analytical, financial, and industry expertise to the City, including the Airport, Harbor, and Water Departments. Access to municipal advisory services firms is necessary to preserve the City's ability to address financial, legal, and regulatory developments comprehensively and timely.
An RFP was advertised in the Long Beach Press-Telegram on June 29, 2021, and 398 potential proposers specializing in professional municipal advisory services were notified of the RFP opportunity. Of those proposers, 34 downloaded the RFP document via the City's electronic bidding system. The RFP document was made available through the Purchasing Division, located on the sixth floor of City Hall, and the Division's website at www.longbeach.gov/purchasing. An RFP announcement was also included in the Purchasing Division's weekly update of Open Bid Opportunities, which is sent to 35 local, minority-owned, and women-owned business groups. A total of six proposals were received on June 29, 2021. Of those six proposers, one was a Minority-owned Business Enterprise (MBE), one was a Women-owned Business Enterprise (WBE), one was a certified Small Business Enterprise (SBE), and none were Long Beach businesses (Local). The selection committee determined that the firms mentioned above would provide the best value for the City. The firms reflect a diverse mix of municipal advisors. These firms' collective capabilities and strengths will ensure that the City maintains access to up-to-date news and market conditions, provides for ad-hoc financial and credit analyses, and identification of refunding opportunities for interest cost savings.
This matter was reviewed by Deputy City Attorney Amy R. Webber on July 27, 2021, Business Services Bureau Manager Tara Mortensen on July 29, 2021, and by Revenue Management Officer Geraldine Alejo on August 3, 2021.
TIMING CONSIDERATIONS
City Council action to adopt Specifications No. RFP FM21-070 and award contracts concurrently is requested on August 24, 2021, to ensure the contracts are in place expeditiously.
FISCAL IMPACT
The total annual aggregate amount of the contracts will not exceed $800,000, with actual costs incurred usually substantially less than the contract authority. Departments will utilize these services typically for specific projects, and costs are anticipated to be funded within existing resources appropriated in their department. If the costs exceed their available appropriation, the departments will return to the City Council with a request for appropriation. 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
INTERIM DIRECTOR OF FINANCIAL MANAGEMENT
APPROVED:
THOMAS B. MODICA
CITY MANAGER