October 26, 2023
City Attorney's Office
Finance Department
DATE: October 3, 2023
TO: Mayor Martinez and Members of the City Council
FROM:
Dave Aleshire, City Attorney
Nickie Mastay, Deputy City Manager, Internal Services
Subject:
Third Contract Amendment with NHA Advisors, LLC.
FINANCIAL IMPACT: There will be no fiscal impact where NHA Advisors, LLC will be utilized on an as-needed basis. These costs are to be paid for with funds deposited to the City in advance by developers and memorialized by Deposit and Funding
Agreements to be drafted by the City Attorney.
There will be a fiscal impact where NHA Advisors, LLC is utilized for litigation, California Public Employees'
Retirement System (CalPERS) and Other post-
employment benefits (OPEB) matters. The City
Attorney’s Office and Finance Department have
budgeted for these items.
PREVIOUS COUNCIL
ACTION:
October 5, 2021; December 6, 2022
STATEMENT OF THE
ISSUE:
City staff members request to amend the contract with
NHA Advisors, LLC to continue to provide municipal
advisor and consulting services on an as-needed basis
as well as litigation support and CalPERS and OPEB
matters.
AGENDA
REPORT
October 26, 2023
RECOMMENDED ACTION:
APPROVE a third amendment to the contract with NHA
Advisors, LLC. in the amount of $100,000 to continue to provide municipal advisor and consulting services on an as-needed basis, as well as litigation and California
Public Employees' Retirement System (CalPERS) and
Other Post-Employment Benefits (OPEB) matters, for a
new total contract amount not to exceed $300,000,
keeping the contract term ending October 6, 2024 – City Attorney’s Office/Finance Department (Dave Aleshire/
/Nickie Mastay 510-620-6609).
DISCUSSION:
On October 5, 2021, the City Council adopted Resolution No. 120-21 that authorized professional services agreements for licensed municipal advisor and consulting services for land-secured financing districts and other financial services on an on-call, as-needed basis (Attachment 5). This resolution established a list of qualified firms to assist the City’s project team in anticipating and leveraging its future performance of those elements of its agreements that pertain to the establishment of one or more land- secured benefit assessment districts. NHA Advisors, LLC. (NHA) is one of the qualified firms on the established list. The City entered into a contract with NHA for the amount of $100,000, with a term beginning October 6, 2021 through October 6, 2024 (Attachment 1).
On December 20, 2022, the City Council approved the first amendment to NHA’s contract in the amount of $100,000 to continue to provide municipal advisor services on an as-needed basis including in connection with the City’s 2022 Pension Obligation Bond and the Point Molate land and municipal advisor services (Attachment 2).
On August 31, 2023, the contract was amended a second time administratively to revise the scope (Attachment 3). The contract term and amount remained unchanged.
NHA specializes in the negotiation of land-secured financing with developers on behalf of public agencies and their experience includes all forms of community facilities districts and special assessment districts. Their work has served the City in several ways including vital consultant analysis of Point Molate and Winehaven which included land financing and litigation, participation on the refinancing team for the City’s 2022 Pension Obligation Bond that refinanced the prior swap bond to a fixed rate bond, and most recently their presenting to City Council regarding CalPERS unfunded liability.
CONCLUSION:
City staff would like to continue to utilize NHA’s consulting and land financing expertise and amend its current $200,000 contract by adding an additional $100,000 for a total not-to-exceed contract amount of $300,000 (Attachment 4).
October 26, 2023
DOCUMENTS ATTACHED:
Attachment 1 – NHA Advisors LLC Original Contract
Attachment 2 – First Amendment to NHA Advisors LLC Contract Attachment 3 – Second Amendment to NHA Advisors LLC Contract Attachment 4 – Proposed 3rd Amendment to NHA Advisors LLC Contract Attachment 5 – October 5, 2021 Staff Report and Resolution No. 120-21 Attachment 6 – December 20, 2022 Staff Report