HomeMy WebLinkAbout29A - AGMT - FINANCIAL SRVSREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
JANUARY 21, 2014
TITLE:
ESTABLISH A LISTING OF
APPROVED QUALIFIED FIRMS
TO PROVIDE FINANCIAL SERVICES
TO CITY DEPARTMENTS
CITY MANAG R
RECOMMENDED ACTION
CLERK OF COUNCIL USE ONLY:
F177Z6ITWD,
❑ As Recommended
❑ As Amended
❑ Ordinance on 1" Reading
❑ Ordinance on 2ntl Reading
❑ Implementing Resolution
❑ Set Public Hearing For
CONTINUED TO
FILE NUMBER
Approve the selection of the following firms for providing financial advisory services to the City for
two years with the option to extend the listing for one additional year with an initial project cost of
$75,000 with future projects to be paid from generated savings upon approval of the City Manager:
1. Public Financial Management Group (PFM)
2. Fieldman Rolapp & Associates
3. First Southwest
4. Urban Futures, Inc. (UFI)
DISCUSSION
Currently the City has approximately $162 million in City related debt and $100 million in Successor
Agency debt. The recommended action allows City staff to begin the process of looking at the City's
debt to 1) achieve efficiency and savings and 2) manage and improve the City's credit rating. In
order to begin the process of evaluating the various debt obligations, the City is recommending
creating a list of financial advisors that can be accessed by staff depending on the needs of the City.
In addition, the selection of a Financial Services Advisor(s) will ensure the City's compliance with
new regulations under the Dodd -Frank Act which clearly delineates responsibilities of financial
advisors and underwriters. As such, financial advisors will now assume full fiduciary responsibilities
to their clients.
On November 21, 2013 the City issued a Request for Qualifications for financial advisory services
with eight firms submitting responses. The responses were reviewed by the Finance Director,
Assistant Finance Director, and Senior Analyst. Responses were evaluated based on firm
background and experience, projected assigned staffing and experience, work plan and approach,
and fee structure.
29A-1
Establish Listing of Financial Services
To City Departments
January 21, 2014
Page 2
The firms and ratings are identified below:
FIRM
Public Financial Management Group (PFM)
SCORE
947
Fieldman Rolapp & Associates
92%
First Southwest
91%
Urban Futures, Inc. UFI
83%
CSG Advisors
77%
NHA Advisors LLC
73%
Harrell & Company Advisors, LLC
69%
Springsted Incorporated
67%
All firms submitting proposals demonstrated the ability to deliver the necessary services to the City.
However, firms submitting a proposal that included an overview or discussion of the City's existing
debt received higher marks. In addition, staff also considered a firm's ability to provide additional
services beyond that of a normal bond issuance as well as the general proximity of the firm's offices
to the City. Staff established a threshold of an 80 percent score and recommends approval of four
firms.
Upon approval of the recommended action, staff, in conjunction with a financial advisor will review
and recommend refunding opportunities to the City Manager for consideration (exhibit 1). In addition
to exploring opportunities for refunding, City staff will work with a selected financial advisor for
opportunities to increase the City's bond rating, ensure continued bond disclosure compliance, as
well as explore long-term bonding opportunities to address critical needs of the City.
FISCAL IMPACT
Costs for financial services will be dependent on the size of the refunding or scope of project
requested. Initial funding will be dependent on the project and funding source with subsequent
projects funded through generated savings. All projects will be submitted for approval to the City
Manager.
Francisco Gutierrez
Executive Director
Finance & Management Services Agency
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