Item 197/2025
Final
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
To:
Lisa L. Kim From: Patricia Song
Dept:
City Manager Dept: Finance
Date: 6/10/2025
Subject: Award a contract to Fieldman, Rolapp & Associates, Inc. for Municipal Advisory Services. (Action Item)
OBJECTIVE
For the City Council to award a contract to Fieldman, Rolapp & Associates, Inc. (FRA) for financial advisory services.
BACKGROUND
The City selected Fieldman, Rolapp & Associates (FRA) as its municipal advisor in 2020 through a competitive procurement process. Since then, FRA has played a critical role in several major financial initiatives, demonstrating both expertise and value.
In October 2020, FRA assisted the City in successfully refunding the Garden Grove Financing Authority’s 2010 Water Revenue Bonds. This transaction resulted in $1.5 million in net present value savings – equivalent to 14.3%, and generated an additional $16.0 million in capital to support key Water Utility capital projects.
In June 2022, FRA led the City through a judicial validation process in preparation for the issuance of pension obligation bonds, ensuring the City was legally positioned for future funding opportunities.
In November 2023, FRA assisted with the defeasance of the Garden Grove Financing Authority’s 2015A Lease Revenue Bonds. This effort generated $10.6 million in interest cost savings and released encumbered assets, clearing the way for the financing of the City’s Civic Center Revitalization project.
Most recently, in June 2024, FRA supported the issuance of the $140 million Garden Grove Financing Authority Lease Revenue Bonds, Series 2024A. Through careful planning and the strategic assembly of the financing team, the City achieved a true interest cost of under 4.0% and secured $11.7 million in original issue premium.
Item 197/2025
In addition to transactional support, FRA has consistently prepared the City’s annual continuing disclosure reports with accuracy and timelines s for all outstanding long -term obligations.
The City recognizes the importance of maintaining a relationship with a highly qualified and experienced municipal advisor to support ongoing financial planning and debt management.
As the current agreement wit h FRA is set to expire on June 30, 2025, the City issued a Request for Proposal (RFP) in alignment with best practices to identify the most qualified firm to meet its future municipal advisory service needs.
DISCUSSION
Request for Proposal (RFP) No. S-1358 for municipal advisory services was issued on February 14, 2025. By the submission deadline of March 31, 2025, the City received a single proposal from Fieldman, Rolapp & Associates (FRA). A review panel consisting of three Finance Department staff members thoroughly evaluated the proposal and found that FRA continued to demonstrate the experience, expertise, and deep understanding of the City’s financial landscape that have made them a trusted advisor over the past five years.
FRA, a California corpora tion established in 1966, is widely recognized as a leader in independent municipal advisory services to public agencies. The firm is registered with both the Municipal Securities Rulemaking Board (MSRB) and the U.S. Securities and Exchange Commission (SEC ). As an independent advisor, FRA does not engage in underwriting, investment banking, or maintain affiliations with broker -dealers or financial institutions – ensuring that its guidance remains unbiased and objective.
FRA has consistently set itself apart by offering more than technical expertise – it acts as an extension of the client’s team, providing tailored education, guidance, and strategic recommendations. Under the new agreement, FRA will continue to deliver a full range of municipal advisory services, including debt issuance support, financial condition assessments, capital financing strategy, post -issuance compliance, and other specialized projects as needed. The complete scope of services is detailed in Attachment A of the Consultant Agreement (Attachment 1).
The proposed contract provides for a three -year term from the date of full execution, with the option to extend for up to two additional one-year periods. The fee structure, included as Attachment C to the agreement, remains consistent with current pricing – reflecting FRA’s commitment to continued service and sensitivity to the City’s budgetary constraints.
In light of FRA’s proven performance over the past five years and the strengths demonstrated in its proposal, the City has elected to continue its partnership with FRA as its municipal advisor.
FINANCIAL IMPACT
The fees proposed by FRA in the attached Consultant Agreement align with the City’s current service rates, including those for debt issuance transactions and annual continuing disclosure reporting. Fees related to debt issuance are contingent upon the succ essful closing of each Item 197/2025
transaction and are payable from bond proceeds at that time. The annual costs for the California Debt and Investment Advisory Commission (CDIAC) reporting ($6,500) and the continuing disclosure compliance review ($5,000) are incorpor ated into the Finance Department’s annual operating budget.
RECOMMENDATION
It is recommended that the City Council:
Approve and authorize the City Manager, or designee, to execute a Consultant Agreement between the City of Garden Grove and Fieldman, Rola pp & Associates, Inc. (Attachment 1).
ATTACHMENT(S)
1. Consultant Agreement between the City of Garden Grove and Fieldman, Rolapp & Associates, Inc.