Laserfiche WebLink
City of Tukwila My WebLink |HelpSearch Tips |About |Sign Out
City of Tukwila <br />INFORMATIONAL MEMORANDUM <br />Allan Ekberg, Mayor <br />TO: Finance Committee <br />FROM: Peggy McCarthy, Finance Director <br />CC: Mayor Ekberg <br />DATE: October 11, 2017 <br />SUBJECT: Approve Contract Amendment with PFMFA, the City's Financial Advisor <br />ISSUE <br />Approve a contract amendment with PFM Financial Advisors LLC (PFMFA) increasing the not to <br />exceed amount and the term. <br />BACKGROUND <br />A contract for municipal advisor services was signed with Public Finance Management Inc. (PFM), <br />on June 30. 2014. The contract amount was $40,000 and the term was two years, with an <br />expiration date of June 1, 2016. <br />Under this contract, the following fees were paid through proceeds of the bond issues: <br />Invoice <br />Date <br />Bond Issue <br />Description of Services / Fees <br />Amount <br />1/13/2015 <br />Urban renewal bonds, two <br />issues, 2014 Taxable <br />Financial advisory fee plus mileage <br />$15,209.12 <br />4/28/2015 <br />Arterial Street bonds, <br />2015 LTGO <br />Financial advisory and Official Statement <br />preparation fees <br />$23,500.00 <br />Cumulative Contract Total <br />TOTAL <br />$38,709.12 <br />In December 2015, the contract was amended to increase the contract amount to $130,000 and <br />the contract term to December 31, 2017. Under this contract amendment, the following fees were <br />paid through the bond proceeds. <br />12/22/2016 <br />Public Safety Plan, 2016 <br />UTGO <br />Financial Advisory Fee, Disclosure Fee, <br />Financial Advisory expenses <br />$48,402.55 <br />7/26/2017 <br />Residential Streets, 2017 <br />LTGO <br />Financial Advisory Fee, Disclosure Fee, <br />Financial Advisory expenses <br />23,629.03 <br />TOTAL <br />$72,031.58 <br />Cumulative Contract Total <br />$110,740.70 <br />In June 2017, the City assigned the PFM contract to PFM's newly formed financial advisory arm <br />PFM Financial Advisors LLC. <br />DISCUSSION <br />The City's future financing plans include refinancing the 2014 urban renewal short term debt in <br />November 2017 and issuing bonds for the Public Safety Plan in 2018 or 2019. PFMFA services <br />have benefited the City by providing general professional guidance, assisting with financing <br />strategies, optimizing debt structures, and obtaining favorable interest rates on the bond issues. <br />35 <br />