RESOLUTION NO. 23-74
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMMERCE, CALIFORNIA, APPROVING THE PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF COMMERCE AND KNN PUBLIC FINANCE, LLC FOR MUNICIPAL FINANCIAL ADVISORY SERVICES AND AUTHORIZING STAFF TO TAKE THE NECESSARY STEPS TO ADVANCE THE PROCUREMENT OF A TIFIA LOAN WITH THE UNITED STATES DEPARTMENT OF TRANSPORTATION BUILD AMERICA BUREAU WHEREAS, in March 2023, staff submitted information to the US DOT regarding the City of Commerce (City) eligibility to participate in the Transportation Infrastructure Finance and Innovation Act (TIFIA) program for the City's Zero-Emission Bus Operations, Maintenance, and Administration Facility Project (Project); and WHEREAS, on May 18, 2023, US DOT determined that:
The City of Commerce is an incorporated municipality in the State of California and is a government entity; thus, the City is an eligible "obligor" for TIFIA credit assistance under 23 USC § 601 (a)(11)(B).
The "Zero-Emission" Project, a facility for use in public transportation, is a surface transportation project that is eligible for Federal assistance under Chapter 53 of Title 49, US Code; thus, the Project is eligible for TIFIA credit assistance under 23 USC § 601(a)(12)(A).
WHEREAS, on June 21, 2023, the City issued a Request for Qualifications (RFQ) for financial advisor services in connection with the delivery of planning and financing services for the Zero-Emission Bus Operations, Maintenance, and Administrative Facility Project. At this stage in the project planning process, it is appropriate for the City to begin working with a municipal financial advisor to assist with developing a finance plan, evaluating the security structure, and analyzing borrowing alternatives; and WHEREAS, the City advertised the municipal financial advisor services RFQ on Planetbids, and the opening of the proposals was conducted on July 10, 2023. Two (2) firms submitted proposals; and WHEREAS, all proposals received were first evaluated and ranked on the technical evaluation responses. Proposals that were determined technically acceptable were reevaluated with cost as a consideration. After using both technical and cost evaluations, the proposals were ranked to establish a competitive range; and WHEREAS, the final ranking results are as follows: 1) KNN Public Finance LLC and 2) Fieldman, Rolapp & Associates; and WHEREAS, based on the proposal results, KNN Public Finance LLC. is the most qualified professional consultant providing the most efficient and cost-effective approach. Additionally, they provided several references and the required Federal certification documentation. The project's financial advisor services shall be covered 100% with Federal 5307 Grant Funds (CA-2020-191-01) and have no impact on the City's operating budget; and WHEREAS, based on the scope of work, KNN Public Finance proposes to be compensated hourly with a not to exceed fee of $22,000; and WHEREAS, KNN Public Finance proposes a fixed transaction fee range of $45,000 - $70,000 for services rendered in connection with the Municipal Bond Borrowing scope of services; and $70,000 - $95,000 for TIFIA loan execution. Such fixed transaction fees are paid from bond proceeds (i.e., issuance cost), and payment is contingent on successfully closing of bonds or when the TIFIA loan is completed; and WHEREAS, financing the City's Zero-Emission Bus Operations, Maintenance, and Administrative Facility project, instead of relying on pay-as-you-go funding from taxes and other existing revenues, means the above project may be constructed years earlier. TIFIA, therefore, is a means to accelerate project delivery and the benefits that flow from new infrastructure. As a result, accelerating the new Zero-Emission Bus Operations, Maintenance, and Administrative Facility project will serve as an opportunity to transform the existing transit facility site into residential housing, allowing the City to proceed with the next phase of the Rosewood Village residential housing development project; and WHEREAS, the residential development project would satisfy a vital need for housing in the City of Commerce. The Rosewood housing construction project consists of 133 residential units constructed in three (3) phases. Phase I is completed and located at 5625 Jillson St (adjacent parcel to existing transit facility); and WHEREAS, this agenda item relates to the 2016 Strategic Plan - Goal #6: "Enhance Quality of Life Goal,"; this project helps the City move one step closer to building affordable homes in the community, improving the quality of life in Commerce.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COMMERCE DOES HEREBY RESOLVE AS FOLLOWS:
Section 1. The City Council of the City of Commerce hereby finds and declares that the foregoing recitals are true and correct, and incorporates them herein as findings and as a substantive part of this Resolution.
Section 2. The Professional Services Agreement between the City of Commerce and KNN Public Finance, LLC is hereby approved in a form approved by the City Attorney.
Section 3. The Mayor is hereby authorized to execute the Agreement on behalf of the City of Commerce. The Mayor is also authorized to execute the Resolution for and on behalf of the City of Commerce.
Section 4. The City Clerk shall certify the adoption of this Resolution.
Section 5. This Resolution shall take full force and effect immediately upon adoption by the City Council.
PASSED, APPROVED, and ADOPTED this 8th day of August 2023.
Hugo A. Argumedo, Mayor
Attest:
Lena Shumway, City Clerk