In accordance with the City's Debt Management Policy, it is the responsibility of the Director of Finance and Administrative Services to establish a process for the solicitation and selection for securing professional services required for the development and implementation of the City's debt program. the City is to employ a financial advisor to provide specialized professional services in the form of financial analysis, debt restructuring, debt issuance services, rating agency relations and financial due diligence for major public/private development services. In order to remain in compliance to the Debt Management policy, on March 25, 2018, Procurement issued RFQ 944-18-2 seeking proposals from qualified and responsible firms. On May 24, 2018 an evaluation committee reviewed and discussed the proposals. The committee members unanimously selected PFM Financial Advisors LLC. The committee members were particularly impressed with the P3 discussion presented by PFM and the inclusion of a team member with over 10 years of P3 experience.
The role of an independent financial advisor is to serve as an advocate for the City and to provide the City with the financial market information necessary to make intelligent, informed decisions when issuing municipal debt. The financial advisor should know how to structure a financing to get the best rate for the community. They review and give advice on the bond underwriter’s proposals and reviews documents from underwriter, underwriter’s counsel and bond counsel. They coordinate the bond issuance process including rating agency presentations. A financial advisory should be an independent and objective bond market expert with no financial ties to the underwriting or investment management industry.
The City has used a financial advisor in the past when issuing debt. Financial advisors have also been used to evaluate private/public partnership proposals, determining the City’s debt capacity and in the development of long-term financing strategies.
PFM is the national leader in providing independent financial services to local and state governments. The firm is well respected, innovative and more importantly independent. As noted above, PFM is unanimously recommended by the selection committee.