Item Coversheet
City of Independence
AGENDA ITEM COVER SHEET
Approved

Agenda Title:

Council action is recommended to enter a contract (170-18) with Springsted, Incorporated for financial advisor services for one year with four possible one-year extensions.
Recommendations:

Council action to enter into a contract.
Executive Summary:

The City requires financial advisor services to support financial planning and debt management, debt issue development and oversight, investment program and arbitrage rebate management, records requirements, and economic development. Springsted, Inc. is recommended for a contract following a qualifications-based RFP process. 
Background:

The Procurement Division issued a Request for Proposals (RFP) for financial advisor services on May 30, 2018. The RFP was published on Public Purchase, the City’s e-bidding system, with notices sent to 489 potential respondents; 50 accessed the RFP. Five responses were received by the June 8, 2018, deadline. Respondents were Columbia Capital Management LLC, George K Baum & Company, Hilltop Securities, Independent Public Advisors LLC, and Springsted Incorporated.



A team comprised of City personnel from the City Manager’s Office and the Power and Light Department evaluated the proposals. The evaluation criteria were: 1) expertise and experience of responding firm, 2) professional experience of personnel, 3) responsiveness to RFP, 4) financial knowledge, and 5) fees.



Springsted Incorporated received the highest aggregate score. Attributes of this firm are they are an independent advisor with no underwriters, arbitrage and disclosure services, demonstrated expertise with rating agencies, the managing team for the City will include the firm’s chairman, they will embrace the City’s “Independence for All” strategic plan, and they have over 30 years of municipal, economic development, and public power experience. Staff contacted and received exemplary references.



Staff recommends award of a one-year contract with four possible one-year extensions to Springsted Incorporated.




Fiscal Impact:

The financial advisor will be compensated from bond issuance closing costs at a prorated amount based on the size of the debt issue. Special projects, such as economic development analysis, will be compensated based on negotiated hourly fees and may be passed on to applicants through pre-development agreements. Expenditures will not exceed budgeted amounts. 



Department:          FinanceContact Person:          Lauren Palmer


REVIEWERS:
DepartmentAction
Purchasing Division (Finance Department)Approved
Finance DepartmentApproved
Finance DepartmentApproved
Law DepartmentApproved
City Managers OfficeApproved
City Clerk DepartmentApproved

Council Action:          Council Action:          Accepted

ATTACHMENTS:
DescriptionType
170-18 Scoring & FeesBackup Material
ContractContract