Title
Aviation Financial Advisory Services - District 8
Description
This report requests the Transportation, Infrastructure, and Planning Subcommittee to recommend to the City Council for approval to enter a contract with Frasca and Associations, LLC for financial advisory services.
THIS ITEM IS FOR CONSENT ACTION.
Report
Summary
The Aviation Department’s financial advisor provides long-term financial planning, capital improvement program (CIP) reviews, bond issuance, bond rating agency advice, and other financial-related assistance. The contract will also assist with reviewing revenue and expenditure forecasts, planned adjustments to rates and charges, lease provisions, passenger facility charges (PFC), customer facility charges (CFC), and with providing support for the development of the annual combined financial report. These consulting services are necessary for the Aviation Department to issue bonds, implement the CIP program, maintain the airport's credit, and pursue its business objectives.
Procurement Information
Four 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 panel to assess their qualifications to provide financial advisory services to the Aviation Department.
The scoring of the four firms is below:
- Frasca & Associates, LLC - 15 points.
- PFM Financial Advisors, LLC - 13 points.
- Hilltop Securities, Inc. - 11 points.
- Columbia Capital Management, LLC - 4 points.
Frasca & Associates, LLC (Frasca) was selected based on the firm's extensive experience with large hub airports, bond issuance, financial modeling and forecasting, and PFC and CFC support. Frasca is the incumbent financial advisory services consultant for the Aviation Department.
Contract Term
Contract term is five years and 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. Funds are available in the Aviation Department's budget.
Location
Phoenix Sky Harbor International Airport, 2485 E. Buckeye Road, Phoenix, AZ 85034
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Manager Frank McCune and the Aviation Department.