Title
Dept./ Agency: Finance
Action: (X) Ratifying (X) Authorizing ( ) Amending
Type of Service: Professional Service Contract
Purpose: To provide Financial Advisory Services.
Entity Name: PFM Financial Advisors, LLC
Entity Address: 1735 Market Street, Floor 43, Philadelphia, Pennsylvania 19103
Contract Amount: Not to exceed $350,000.00
Funding Source: Bond Proceeds
Contract Period: April 1, 2021 through March 31, 2022
Contract Basis: ( ) Bid ( ) State Vendor (X) Prof. Ser. ( ) EUS
( ) Fair & Open (X ) No Reportable Contributions ( ) RFP ( ) RFQ
( ) Private Sale ( ) Grant ( ) Sub-recipient ( ) n/a
Additional Information:
Vendor to be paid from Bond Proceeds.
No Certification of Funds required.
The contract amount will not exceed $350,000.00 between two (2) vendors.
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WHEREAS, the City of Newark (the “City”) is in need of Financial Advisors to counsel and assist the City with regards to bond and note issuance, sales and auctions; and
WHEREAS, such Financial Advisors are part of a highly regulated financial industry, licensed by various regulatory authorities; as such, those services are professional services, exempt from the requirements of public bidding pursuant to the Local Public Contracts Law, more specifically, N.J.S.A. 40A:11-5(1)(a)(i); and
WHEREAS, the City wishes to enter into a Professional Services Contract with PFM Financial Advisors, LLC, 1735 Market Street, Floor 43, Philadelphia, Pennsylvania 19103, for an amount not to exceed Three Hundred Fifty Thousand Dollars and Zero Cents ($350,000.00), among two (2) vendors. It is expressly agreed that the City is not obligated to expend any monies or incur any expenses under this contract. For specific financing such as bonds, the fee will be calculated at a rate of $1.00 per $1,000.00 of par value for New Money and $1.15 per $1,000.00 of par value for Refunding. For financings such as notes, the fee will be calculated at a rate of $0.25 per $1,000.00 of par value of the principal and a base fee of $10,000.00 per deal. The amount is payable at the closing of the proposed issuance. These fees are included in the $350,000.00 for authorized projects. This contract shall be for a period from April 1, 2021 through March 31, 2022; and
WHEREAS, the Local Public Contracts Law (N.J.S.A. 40A:11-1 et. seq.) requires that notice of the award of contracts for “Professional Services” without competitive bidding must be published in a local newspaper; and
WHEREAS, this contract is for an amount over $17,500.00 and is being awarded pursuant to a “Non-Fair and Open Process” pursuant to N.J.S.A. 19:44A-20.5; and
WHEREAS, PFM Financial Advisors, LLC has completed and submitted a Business Entity Disclosure Certification, which certifies that PFM Financial Advisors, LLC has not made any reportable contributions to a political or a candidate committee in the City of Newark in the previous one (1) year, and that the contract will prohibit PFM Financial Advisors, LLC from making any reportable contributions through the term of the contract; and
WHEREAS, the Municipal Council adopted the Contractor Pay-to-Play Reform Ordinance, Newark, New Jersey Municipal Code§ 2:4-22C, which forbids the award of a contract to a Business Entity, as defined therein, which has made or solicited political contributions to Newark Municipal Candidates and County of Essex Candidates, office holders having ultimate responsibility for the award of a contract; candidate committees of the aforementioned candidates, and political or political party committees of the City of Newark or County of Essex; and continuing political committees or political action committees regularly engaged in the support of the City of Newark Municipal or County of Essex Elections; and certain other political party or candidate committees, in excess of certain thresholds.
NOW, THEREFORE, BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
1. The Mayor of the City of Newark and/or his designee, the Director of the Department of Finance, are hereby authorized and directed, on behalf of the City of Newark to enter into and execute a contract with PFM Financial Advisors, LLC, 1735 Market Street, Floor 43, Philadelphia, Pennsylvania 19103, to provide Professional Financial Advisory Services, from April 1, 2021 through March 31, 2022.
2. The contract shall be for an amount not to exceed Three Hundred Fifty Thousand Dollars and Zero Cents ($350,000.00) among two (2) vendors combined. It is expressly agreed that the City of Newark is not obligated to expend any monies or incur any expenses under this contract. For specific financing such as bonds, the fee will be calculated at a rate of $1.00 per $1,000.00 of par value for New Money and $1.15 per $1,000.00 of par value for Refunding. For financings such as notes, the fee will be calculated at a rate of $0.25 per $1,000.00 of par value of the principal and a base fee of $10,000.00 per deal. The amount is payable at the closing of the proposed issuance. These fees are included in the $350,000.00 for authorized projects, and the funds to be utilized for the Contract will be from bond proceeds.
3. This contract is awarded without competitive bidding as a “Professional Service” in accordance with N.J.S.A. 40A:11-5(1)(a)(i) of the Local Public Contracts Law because the performance of the service required must be performed by someone who is a licensed Financial Advisor in the State of New Jersey.
4. This contract is awarded pursuant to the Non-Fair and Open Procedures of the State Pay-to-Play Law (N.J.S.A. 19:44A-20.5) and pursuant to the provisions of the Local Public Contracts Law, (N.J.S.A. 40A:11-5(1)(a)(i)) and is in compliance with the Pay-to-Play Reform Ordinance, Newark, New Jersey, Municipal Code §2:4-22C.
5. The contract is hereby ratified from April 1, 2021 until the date of adoption of this authorizing Resolution.
6. A copy of the Business Disclosure Entity Certification and the Determination of Value letter shall be placed on file with this Resolution in the Office of the City Clerk.
7. PFM Financial Advisors, LLC has completed and submitted a Business Entity Disclosure Certificate, which shall be placed on file with this Resolution in the Office of the City Clerk, certifying that PFM Financial Advisors, LLC has not made any reportable contributions to a political or a candidate committee in the City of Newark in the previous one (1) year, and the contract will prohibit PFM Financial Advisors, LLC from making reportable contributions through the term of the contract.
8. A copy of the fully executed contract herein authorized shall be filed in the Office of the City Clerk by the Director of the Department of Finance and shall be made available for public inspection.
9. There shall be no advance payments made against this contract in accordance with N.J.S.A. 40A:5-16.
10. A notice of this action shall be published in the newspaper authorized by law to publish a legal advertisement and as required by law within ten (10) days of the adoption of this Resolution.
STATEMENT
This Resolution ratifies and authorizes the Mayor of the City of Newark and/or his designee, the Director of the Department of Finance, to enter into and execute a professional service contract with PFM Financial Advisors, LLC, 1735 Market Street, Floor 43, Philadelphia, Pennsylvania 19103, to provide Financial Advisory Services for the period of April 1, 2021 through March 31, 2022, for an amount not to exceed $350,000.00 between two (2) vendors.