Title
Amendment to the Contract for Financial Advisor Services (NB)
Staff recommends amending the contract to Public Financial Management for the Utility's financial advisor services.
Explanation
The Utility employs the services of a financial advisor to assist in developing and implementing strategies to meet the Utility's long-term capital financing needs. The financial advisor also assists staff in evaluating financial options, assists in technical aspects of designing financing arrangements and instruments, and assists in representing the Utility's interest in financial market dealings.
The City Commission awarded a contract to Public Financial Management (PFM) on February 13, 2006 as a result of a Request for Proposals. The contract with PFM expires on April 6, 2009 and provides for an additional three year extension of the contract upon mutual agreement of the parties and negotiation of the contract pricing and terms.
Despite increased operational costs, PFM has agreed to maintain the same rates for the extension. PFM has provided the Utility with excellent professional support during the past three years, advising GRU on the past three bond issues, with the last one occurring during a period of market upheaval. PFM has also been able to provide specialized support and advice on GRU's Lease In Lease Out transaction. Given the current environment, upcoming bond issues, and PFM's solid performance, staff believes that it is in GRU's best interest to extend the contract. PFM continues to be recognized as one of the top financial advisory firms in the country.
Recommendations
The City Commission: 1) authorize the General Manager, or his designee, to negotiate and execute a three year amendment to the contract with Public Financial Management for financial advisor services, subject to the approval of the City Attorney as to form and legality; and 2) approve the issuance of purchase orders to Public Financial Management in amounts not exceedi...
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