Title
Agreements: Approve Fieldman, Rolapp & Associates, Inc. and PFM Financial Advisors LLC as Municipal Advisors for City Debt Financings and Related Transactions
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FileID
File ID: 2024-01123
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Location
Location: Citywide
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Recommendation
Recommendation: Pass a Motion 1) approving Fieldman, Rolapp & Associates, Inc. and PFM Financial Advisors LLC as municipal advisors for City debt financings and related transactions during fiscal years 2024/25 through 2028/29; 2) authorizing the City Treasurer to enter into two Professional Services Agreements, for a total amount not to exceed of $750,000 for each agreement; and 3) authorizing the City Treasurer to supplement each agreement, as needed, with addenda describing the services to be performed, the not to exceed total compensation to paid associated with the scope of services, and the funding source for the addenda.
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Contact
Contact: Claudia Lara, Debt Analyst, (916) 808-2267, clara@cityofsacramento.org; Brian Wong, Debt Manager, (916) 808-5811; Office of the City Treasurer
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Presenter
Presenter: None
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Attachments
Attachments:
1-Description/Analysis
2-Professional Services Agreement with Fieldman, Rolapp & Associates, Inc.
3-Professional Services Agreement with PFM Financial Advisors LLC
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Description/Analysis
IssueDetail
Issue Detail: The proposed actions will approve Fieldman, Rolapp & Associates, Inc. and PFM Financial Advisors LLC as firms pre-qualified to provide the City with financial advice on debt-related matters for up to the next five years.
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PolicyConsiderations
Policy Considerations: The proposed actions are consistent with the Sacramento City Code, Chapter 3.64 (Contracts for Professional Services).
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EconomicImpacts
Economic Impacts: None.
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EnvironmentalConsiderations
Environmental Considerations: This report concerns administrative activities that will not have a significant effect on the environment and thus do not constitute a “project” subject to the California Environmental Quality Act. See California Code of Regulations, title 14, sections 15061(b)(3) and 15378(b)(2). In addition, the projects for which debt financing is undertaken will be independently subject to CEQA review.
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Sustainability
Sustainability: Not applicable.
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Commission/CommitteeAction
Commission/Committee Action: Not applicable.
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RationaleforRecommendation
Rationale for Recommendation: Retaining the services of independent municipal advisors will enable the Office of the City Treasurer to provide more effective financial analysis, review, and validation of debt-related matters. The municipal advisors will maintain a fiduciary relationship with the City.
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FinancialConsiderations
Financial Considerations: The Professional Services Agreements attached as Exhibit A (Fieldman, Rolapp & Associates, Inc.) and Exhibit B (PFM Financial Advisors LLC) retain the firms for a term of up to five years. The agreements do not obligate the City to use either of the firms on any particular financing. If the City decides to use either firm, then staff will issue an addendum to the respective Professional Services Agreement spelling out the services to be performed and the compensation to be paid. Additionally, during the term of each agreement, the City may pay each firm an amount not to exceed $750,000 each. Whether either limit is reached will depend on the number and complexity of the financing(s), as well as the number and complexity of feasibility or other quantitative analyses. In accordance with a best practice of the Government Finance Officers Association, the firms will be paid on a non-contingent basis. Thus, the firms must be paid whether or not there is the successful issuance of debt. If a financing does result in the successful issuance of debt (e.g., bonds, notes, lines of credit), the City will likely seek reimbursement for its costs related to the firm’s compensation from the costs of issuance of the debt. For Community Facilities District financings, the City will generally seek reimbursement on behalf of a developer for the funds the developer advanced to the City to pay for the municipal advisor. The source and availability of funding will be identified and secured as part of each project addendum.
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LocalBusinessEnterprise
Local Business Enterprise (LBE): Neither Fieldman, Rolapp & Associates, Inc. nor PFM Financial Advisors LLC qualify as an LBE.
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