Title
Aviation Financial Advisory Services Contract - Request for Award (Ordinance S-52730) - District 8
Description
Request to authorize the City Manager, or his designee, to execute a contract with Frasca & Associates, LLC (Frasca) to provide financial advisory services to the Aviation Department. Further request to authorize the City Controller to disburse all funds related to this item. The total cost of the contract will not exceed $1.8 million over the five-year term of the contract.
Summary
The contract will allow the Aviation Department to receive financial and business-related consulting services, including long-term financial planning and Capital Improvement Program reviews, assistance with bond issuance, and bond-rating agency advice. Additional financial-related assistance will include revenue and expenditure forecasts, rates, charges, and lease reviews, passenger and facility charges (PFC), and customer facility charges (CFC) support. The consulting services are crucial to the Aviation Department's ability to issue bonds, fund the capital improvement program, maintain Phoenix Sky Harbor International Airport's credit rating, and pursue its business objectives.
Procurement Information
Four firms were selected from the current City of Phoenix Financial Advisory Services Qualified Vendors List for further evaluation. Each firm offers infrastructure finance experience with various specialties, including airports. The proposals from the selected qualified firms were evaluated by a three-member evaluation panel on their qualifications to provide financial advisory services to the Aviation Department.
The scoring of the four firms was as follows:
- Frasca & Associates, LLC - 15 points
- PFM Financial Advisors, LLC - 13 points
- Hilltop Securities, Inc. - 11 points
- Columbia Capital Management, LLC - 4 points
Frasca was selected based on the firm's extensive experience with large hub airports, bond issuance, financial modeling and forecasting, and PFC and CFC services. Frasca is the incumbent financial advisory services provider.
Contract Term
The five-year term of the contract will begin on or about May 1, 2026.
Financial Impact
The cost of the contract will not exceed $1.8 million over the term of the contract. Funding is available in the Aviation Department's Capital Improvement Project budget.
Concurrence/Previous Council Action
The Transportation and Infrastructure Planning Subcommittee:
• Recommended approval of this item on February 18, 2026, by a vote of 4-0.
Location
Phoenix Sky Harbor International Airport, 2485 E. Buckeye Road, Phoenix, AZ
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Manager Frank McCune and the Aviation Department.