Placement: Consent Agenda
Action Requested: Motion / Vote
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Award Contract #20230066 for Financial Advisory Services.
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Submitted By: Nathaniel Rubel, Assistant Director Procurement, Office of Management and Budget.
Strategic Plan Link: The City’s Mission to be financially responsible.
Summary Brief (Agreements/Contracts only)
1. Prepared by: Nathaniel Rubel, Assistant Director Procurement, Office of Management and Budget.
2. Parties: City of Port St. Lucie and PFM Financial Advisors LLC.
3. Purpose: Financial/Municipal Advisory Services to the City.
4. New/Renewal/Modified: New.
5. Duration: The initial term of the contract is for three (3) years with one, three (3)-year renewal option.
6. Benefits to Port St. Lucie: Financial Advisor will provide the City with access to specialized expertise in cost saving and strategic financial planning leading to more effective debt management and financial stability.
7. Cost to Port St. Lucie (Annual and Potential): The Financial Advisory Services will be approximately $50,000.00 annually for assisting the City in determining the appropriate method of sale (competitive, negotiated, private placement, direct bank loan, etc.), structure, sale timing, fairness of pricing, and obtaining credit ratings for Bonds and other Debt.
Presentation Information: N/A.
Staff Recommendation: Move that the Council award Contract #20230066 and enter into a Contract with PFM Financial Advisors LLC for Financial Advisory Services.
Alternate Recommendations:
1. Move that the Council amend the recommendation and award Contract #20230066.
2. Move that the Council not approve the recommendation and provide staff with direction.
Background: The City utilizes independent financial advisors to provide comprehensive financial advisory services to the City including but not limited to: (1) assisting the City in the review of debt policies and guidelines for the deployment of various debt strategies on tax exemption and arbitrage; (2) providing financial planning services related to debt management and reduction alternatives; (3) providing advice on proposed program/issue related debt strategies; (4) providing consultation and assistance to the City related to various debt issues/decisions and related business transactions with the financial community; and (5) providing pricing/transaction comfort to ensure effective exercise of market opportunities for the City.
Issues/Analysis: An eRFP was advertised on DemandStar on June 23, 2023, with a proposal due date of July 19, 2023. During the advertisement period, 296 suppliers were notified with 7 of those downloading the solicitation documents. There was one proposal submitted within the required timeframe.
Staff has reviewed the proposal submitted by PFM Financial Advisors LLC (PFM), and finds that PFM is qualified and provides the best value to the City. Since 2017, PFM has had a solid and proven track record of providing high quality financial advisory services to the City. PFM’s performance has been consistently reliable, and they have demonstrated expertise in handling the City’s debt issues successfully.
Financial Information: Funds are appropriated in the General Fund / General Government / Professional Services (#001-1300-531000-00000).
Special Consideration: N/A.
Location of Project: N/A.
Attachments:
1. Signed Contract.
2. eRFP Document.
3. PFM Financial Advisors LLC Proposal.
4. Notice of Intent to Award.
NOTE: All of the listed items in the “Attachment” section above are in the custody of the City Clerk. Any item(s) not provided in City Council packets are available upon request from the City Clerk.
Internal Reference Number: 23229-04.
Legal Sufficiency Review:
Reviewed by Alyssa Lunin, Deputy City Attorney. Approved as to Legal form and sufficiency by James D. Stokes, City Attorney.