SR-200-004 (10)
F:\Administration\Share\Staff Reports\KNN CSG Contracts 9-13-05.doc
City Council Meeting: September 13, 2005 Santa Monica, CA
To: Mayor and City Council
From: City Staff
Subject: Professional Services Agreement with Kelling, Norcross & Nobriga and
CSG Advisors, Inc. for Financial Advisory Services for the City,
Redevelopment Agency and the Parking Authority
Introduction
This report recommends that the City Council authorize the City Manager to negotiate
and execute an agreement with Kelling, Norcross & Nobriga and CSG Advisors, Inc. for
financial advisory services on behalf of the City of Santa Monica, the Santa Monica
Redevelopment Agency and the Parking Authority for the City of Santa Monica.
Background
The City of Santa Monica, Redevelopment Agency and Parking Authority use
professional financial advisory services to assist in capital improvement programs and
support financial planning and debt management activities. Included in the services are
issuance of bonds and certificates of participation, debt defeasance, financial strategy
and planning and other financial matters, as they arise.
Staff issued a Request for Proposals to nine financial consulting firms. Five proposals
were submitted and evaluated.
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Discussion
Based on the proposal evaluations, staff recommends contracting with two firms.
CSG Advisors, Inc is highly experienced in providing financial advisory services in the
area of housing. CSG has previously provided services to the Redevelopment Agency
in the design of financing strategies involving the use of Low Income Housing Tax
Credits and multi-family housing revenue bonds for the anticipated Civic Center housing
developments. The firm has a successful history of housing bond issues with other
public agencies throughout southern California. CSG Advisors is recommended to
provide financial services in the area of housing.
Kelling, Norcross & Nobriga (KNN) has extensive experience in financial planning and
debt management. General city financial advisory services is one of their major practice
areas. KNN personnel were judged to be highly qualified. KNN is ranked as the
number one financial advisor in California based on the number of municipal debt
issues sold in each of the last 16 years. KNN is recommended to provide financial
services in all areas other than housing.
Budget/Financial Impact
Expenditures under these contracts will depend on the number bond transactions. It is
anticipated that each may exceed a total of $55,000 annually.
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Funds for these services will be included in the cost of bond issuance and will be
budgeted when the full cost of each bond issue is available.
Recommendation
Staff recommends that the City Council authorize the City Manager to negotiate and
execute an agreement with Kelling, Norcross & Nobriga and an agreement with CSG
Advisors, Inc. for financial services on behalf of the City, the Redevelopment Agency
and the Parking Authority.
Prepared by: Steve Stark, Director of Finance
Janet Shelton, Budget Manager
Jeff Mathieu, Director, Director of Resource Management
Martin Kennerly, Administrative Services Officer
Reference Contract No. 8507 (CCS) (Kelling, Norcross & Nobriga).
Reference Contract No. 8508 (CCS) (CSG Advisors).
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