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HomeMy WebLinkAbout80A - JOINT-FINANCIAL CONSULTING SVCS REQUEST FOR AGENCYI COUNCIL ACTION MEETING DATE: ~ ~ CLERK OF COUNCIL USE ONLY: FEBRUARY 21, 2006 TITLE: APPROVED D As Recommended D As Amended D Ordinance on 1 st Reading D Ordinance on 2nd Reading D Implementing Resolution D Set Public Hearing For AGREEMENT WITH CSG ADVISORS, INC. FOR FINANCIAL CONSULTING SERVICES ~ (2$z-- ~ ~WL:tt CITY MANAGER EXECUTIVE DIRECTOR CONTINUED TO FILE NUMBER RECOMMENDED ACTION CITY COUNCIL ACTION Direct the City Attorney to prepare and authorize the Executive Director of the Community Development Agency or designee to execute an agreement wi th CSG Advisors, Inc. in an amount not to exceed $40,000 to provide financial consulting services. COMMUNITY REDEVELOPMENT AGENCY ACTION Direct the Agency General Counsel to prepare and authorize the Executive Director or designee to execute an agreement with CSG Advisors, Inc. in an amount not to exceed $60,000 to provide financial consulting services. COMMUNITY REDEVELOPMENT AND HOUSING COMMISSION RECOMMENDATION 1. Recommended that the City Council direct the City Attorney to prepare and authorize the Executive Director of the Community Development Agency or designee to execute an agreement with CSG Advisors, Inc. in an amount not to exceed $40,000 to provide financial consulting services. 2. Recommended that the Community Redevelopment Agency direct the Agency General Counsel to prepare and authorize the Executive Director or designee to execute an agreement with CSG Advisors, Inc. in an amount not to exceed $ 60,000 to provide financial consulting services. 80A-1 Agreement With CSG Advisors, Inc. For Financial Consulting Services February 21, 2006 Page 2 By a vote of 6: 0 (Turner Absent) at its Regular Meeting of January 17, 2006. DISCUSSION The Community Development Agency of the City of Santa Ana creates and implements programs that eliminate slum and blight wi thin its proj ect area and that offer economic development and affordable housing opportunities within the City. Periodically, Agency staff requires professional consulting services to ensure the economic viability of the design and implementation of these programs. CSG Advisors, Inc. (CSG) is a nationally recognized financial consulting firm with offices in Atlanta, New York, San Francisco and Cleveland. The firm specializes in bond financing, development negotiations, and financial strategies and programs. They have assisted in the structuring of more than $50 billion in bond sales and serves as financial advisor to more than 50 local governments and several state housing finance agencies. In addition, CSG has been a national consultant to the federal government working with distressed properties through the Resolution Trust Corporation and with the Department of Housing and Urban Development to evaluate FHA multi-family refunding requests. CSG has served as the financial advisor to the Housing Authority of the City of Santa Ana for all past tax-exempt bond issuances and is currently working with the Agency and Authority on various projects. Under the proposed contract, CSG will work on an hourly basis as needed and as requested by the Executive Director. The scope of work may include financial consulting on new or existing bonds issued by the Housing Authority, Industrial Development Authority or the Redevelopment Agency; development or review of strategies for revitalization and redevelopment; review of development proposals; and review of strategies for rehabilitation of rental and owner-occupied housing. The hourly billing rate for CSG will be $275 for a Principal, $250 for a Vice President or Senior Associate, $210 for an Associate, and $180 for an Analytical Associate plus reimbursable expenses. 80A-2 Agreement With CSG Advisors, Inc. For Financial Consulting Services February 21, 2006 Page 3 FISCAL IMPACT Funds are available in the Tax Increment Housing Set-Aside Fund (account no. 507-508-6291), HOME Program (account no. 130-148-6291), Redevelopment (account nos. 570-933~6291, 570-935-6291, and 570-932-6291) . APPROVED AS TO FUNDS AND cfJe. e-tJ~ Patricia C. Whitaker Executive Director Community Development Agency ACCOUNTS: ~~-C II Francisco Gutierrez U~Executive Director Finance and Management ,~ fJ Services Agency PCW/TG/mlr H:\ACTIONS\2006 CC\JT CC-CRA AgreeCSGAdvisorsConsultingServsContract 2-21-06.doc 80A-3 80A-4