Title
Airport Financial Advisory Services (Ordinance S-47439)
Description
Request to authorize the City Manager, or his designee, to enter into an agreement with Frasca & Associates, LLC, to provide financial advisory services to the Aviation Department in an amount not to exceed $1.8 million for a five-year aggregate contract term. Further request to authorize the City Controller to disburse all funds related to this item.
Report
Summary
The contract provides financial and business consulting services to the Aviation Department, including long-term financial planning and Capital Improvement Program review, bond issuance, bond-rating agency advice, and other financial-related assistance such as revenue and expenditure forecasts; rates, charges and leases review; Passenger Facility Charges and Customer Facility Charges support; and annual report support. These consulting services are crucial to the Aviation Department's ability to issue bonds, provide for the capital improvement program, maintain the airport's credit, and pursue its business objectives.
Procurement Information
Three firms from the current City of Phoenix Financial Advisory Services Qualified Vendors List were selected for further evaluation. Each firm offers infrastructure finance experience with various specialties, including airports. The proposals from the selected qualified vendors were evaluated by a three-member evaluation panel for their qualifications to perform financial advisory services for the Aviation Department.
Selected Firm
Rank 1: Frasca & Associates, LLC
Additional Qualified Vendors
Rank 2: FirstSouthwest, a Division of Hilltop Securities Inc.
Rank 3: Montegue DeRose and Associates, LLC
Frasca & Associates, LLC was selected based on the firm's extensive experience with large hub airports, Passenger Facility Charges, and Customer Facility Charges.
Contract Term
The term of the contract is five years and will begin on or about May 1, 2021. The contract will not contain an option to extend the term.
Financial Impact
The contract value will not exceed $1.8 million for the five-year aggregate contract term. Funding is available in the Aviation Department's budget.
Concurrence/Previous Council Action
- The Phoenix Aviation Advisory Board recommended this item for approval on Feb. 18, 2021 by a vote of 6-0.
- The Transportation, Infrastructure and Innovation Subcommittee recommended this item for approval on March 3, 2021, by a vote of 4-0.
Location
Phoenix Sky Harbor International Airport - 3400 E. Sky Harbor Blvd.
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Aviation Department.