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Contract for Financial Advisor Services July 5, 2011 <br />Summary of Findings <br />Final interviews included the following firms: Professional Financial Management, Inc. (PFM), <br />Northcross, Hill & Ach, and KNN. <br />After careful consideration of all three qualified firms, staff recommends PFM for the City's <br />Financial Advisor. PFM has extensive municipal financing experience across the United States, <br />and maintains a strong Bay Area presence. They are a large company with considerable <br />resources to assist the City of San Leandro with its debt issuance /financing needs. PFM is an <br />independent, registered financial and investment advisory firm. They do not provide other <br />financial services, such as underwriting, so as to not present a conflict of interest with the City. <br />Fiscal Impacts <br />Payment for debt financing services is solely contingent on the final issuance and will be <br />included in the final financing costs. There is no immediate budget impact. Payment for services <br />will be built into the cost of issuance. Should an issuance not occur — the firm will not be <br />compensated. <br />The City reserves the option to employ PFM on a consultant basis and pay an hourly rate for <br />these services. In this case, the total annual cost will not exceed $50,000 without City Council <br />approval. <br />Attachments <br />Draft Contractual Services Agreement <br />CONCLUSION <br />Staff recommends that City Council authorize the City Manager to execute a three -year contract <br />for financial advisor services with the Professional Financial Management, Inc. (PFM) through <br />June 30, 2014, with an option to extend for an additional two fiscal years by written agreement <br />and at the option of the City. <br />