DATE:
November 15, 2022
TO:
Adam Politzer, Interim City Manager
FROM:
Bill Zenoni, Interim Finance Director
Chadrick Smalley, Deputy Director of Community Development SUBJECT:
Resolution Of The City Council Of The City Of Emeryville Authorizing The City Manager To Enter Into A Professional Services Contract With KNN Public Finance, LLC, For A Total Amount Not To Exceed $56,000 For Municipal Advisory Services To Assist With Implementation Of The $50 Million Measure C General Obligation (GO) Bond Program Recommendation
Staff recommends that the City Council adopt the above-entitled resolution authorizing the City Manager to execute a professional services contract with KNN Public Finance, LLC, for a total amount not to exceed $56,000 for Municipal Advisory Services to assist with implementation of the $50 million Measure C General Obligation Bond Program.
Background
On March 6, 2018, the City Council authorized placement of a $50 million affordable housing bond initiative on the June 5, 2018 ballot to finance the development of affordable housing projects within the City of Emeryville. This ballot initiative (Measure C) was approved by over two-thirds of the Emeryville voters. Measure C allows the City of Emeryville to issue $50 million in bonds with an estimated average levy of 4.912 cents per $100 of assessed value, generating approximately $3.4 million annually to pay for debt service on the bonds over 27 years. Measure C supports the City’s Housing Element and other General Plan policies by financing affordable housing development costs for extremely low, very low, and low-income households as well as for persons with special needs.
On March 2, 2021, the City Council adopted Resolution No. 21-13, approving the Affordable Housing Bond Administration and Expenditure Plan. This plan guides the expenditure of $50 million in Measure C Affordable Housing Bond funds, as well as approximately $14 million in additional affordable housing resources available to the City, for a total investment of over $64 million. The Affordable Housing Bond Administration and Expenditure Plan is available on the City’s website at https://www.ci.emeryville.ca.us/DocumentCenter/View/13878.
Discussion
The City issued a Request for Proposals (RFP) on July 19, 2022, requesting proposals to provide a full range of municipal advisory services in connection with the implementation of the $50 million Measure C General Obligation (GO) Bond Program. The deadline to submit proposals was August 19, 2022. Seven firms responded to the RFP. City staff, including the City Attorney, Deputy Director of Community Development and Interim Finance Director assessed the responses based upon the requirements of the RFP. Subsequent to the initial assessment, three of the seven firms were invited to participate in an interview/presentation. Based upon the initial assessment and the follow-up interviews, the team has recommended that KNN Public Finance, LLC be selected to provide municipal advisory services to assist with the implementation of the Measure C general obligation bond program.
KNN Public Finance, LLC, has significant experience providing municipal advisory services on general obligation bond offerings for California cities, counties, and special districts. KNN Public Finance, LLC is familiar with the City of Emeryville and worked with the City during the formation of the Measure C ballot initiative. KNN will assist City staff in planning for, developing and executing the issuance of the Measure C general obligation bond financing.
Fiscal Impact
The cost of KNN Public Finance, LLC, contract is $56,000, and will be paid from bond proceeds.
Staff Communication with the Public
This item was not presented to any committees.
Conflict of Interest
None.
Conclusion
Staff recommends the City Council authorize the City Manager to execute a Professional Services Contract with KNN Public Finance, LLC, for a total amount not to exceed amount of $56,000 for Municipal Advisory Services to assist with implementation of the $50 million Measure C General Obligation Bond Program.
PREPARED BY: Bill Zenoni, Interim Finance Director Chadrick Smalley, Deputy Director of Community Development Approved and Forwarded to the
City Council of the City of emeryville:
Adam Politzer, Interim City Manager
Attachments
Draft Resolution, including Exhibit A – Professional Services Contract with KNN Municipal Advisory Services
City Council Meeting | November 15, 2022
City of Emeryville
CALIFORNIA
MEMORANDUM