Title
Proposed Change Order No. 5 - GLWA CS-002 Financial Advisor
Body
Agenda of: March 24, 2021
Item No.: 2021-098
Amount: Original Contract: $ 300,000.00
Change Order No. 2: $ 100,000.00
Change Order No. 3: $ 100,000.00
Change Order No. 4: $ 100,000.00
Proposed Change Order No. 5: $ 78,600.00
Total Revised Contract: $ 678,600.00
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Sue F. McCormick
Chief Executive Officer
Great Lakes Water Authority
DATE: March 24, 2021
RE: Proposed Change Order No. 5 - GLWA CS-002 Financial Advisor
MOTION
Upon recommendation of Nicolette N. Bateson, Chief Financial Officer/Treasurer, the Board of Directors (Board) of the Great Lakes Water Authority (GLWA), approves the Change Order No. 5 for Contract GLWA CS-002, “Financial Advisor” with PFM Financial Advisors LLC, at a cost increase of $78,600.00, for a total cost not-to-exceed $678,600.00, and a time extension of eight and one-half months for a total contract duration of eighty and one-half months, and authorizes the Chief Executive Officer or Chief Financial Officer to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
Since March 20, 2015, PFM Financial Advisors, LLC (PFM) has served the Great Lakes Water Authority (GLWA) as its municipal advisor through GLWA CS-002. As a municipal advisor, PFM acts in a fiduciary capacity to assist GLWA with the issuance of its water and sewer revenue bonds. To date, PFM has assisted GLWA with the issuance of 31 new money and refunding bond issues (including state revolving fund bonds), totaling over $3.1 billion. PFM also provides other non-transactional services such as providing feedback on various GLWA agreements and financial policies.
The current contract for Financial Advisor (CS-002) with PFM will expire on March 19, 2021. GLWA will need issue a new solicitation via a competitive procurement process for Financial Advisory Services during calendar year 2021.
JUSTIFICATION
The current contract for Financial Advisor (CS-002) with PFM will expire on March 19, 2021. Due to the other initiatives being undertaken by the Public Finance Team, the solicitation process for this contract has been delayed. GLWA management is requesting an extension of the current contract GLWA CS-002 through December 31, 2021 for an additional $78,600.00. This will allow GLWA time to effectively solicit a new request for proposals for municipal advisors.
Below is a summary of the original contract amount and the change orders. To date GLWA has extended the contract 3 times and has increased the contract amount by $300,000.00. GLWA management is proposing an additional change order to extend the contract through December 31, 2021.
Contract Dates:
Original Contract Start Date: March 20, 2015
Initial Contact End Date: March 19, 2018
Change Order 1 Contract End Date*: March 19, 2018
Change Order 2 Contract End Date: March 19, 2019
Change Order 3 Contract End Date: March 19, 2020
Change Order 4 Contract End Date: March 19, 2021
Proposed Change Order 5 Contract End Date: December 31, 2021
Contract Estimate
Original Contract Price: $300,000
Change Order No. 1*: $0
Change Order No. 2: $100,000
Change Order No. 3: $100,000
Change Order No. 4: $100,000
Proposed Change Order No. 5: $78,600
New Contract Total: $678,600
* Change Order #1 was a correction of original contract fees, with no time extension
Note that this contract is being brought to the Board for approval as the time length exceeds five years in accordance with GLWA’s Procurement Policy.
Municipal Advisor Selection Process Update:
The updated time schedule for the proposed solicitation is shown in Table 1. Based on this schedule, the new contract will be presented to the GLWA Board of Directors by November 19, 2021 and work will begin by January 1, 2022.
Table 1
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|
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Week of: |
|
|
|
|
|
Phase 1 - Solicitation Development |
|
|
|
Draft 1 - Front End/Background |
6/7/2021 |
|
|
Draft 2 - post Stakeholder Report |
6/28/2021 |
|
Phase 2 - Advertisement |
|
|
|
Finalize RFP |
7/12/2021 |
|
|
Advertise date for RFP |
7/12/2021 |
|
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Questions due |
7/26/2021 |
|
|
Pre-proposal conference |
8/2/2021 |
|
|
Proposals due |
8/16/2021 |
|
Phase 3 - Evaluation |
|
|
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Minimum qualifications verified |
8/16/2021 |
|
|
Evaluations due |
8/23/2021 |
|
|
Oral interviews |
8/30/2021 |
|
|
Additional questions compiled |
8/30/2021 |
|
|
Responses from proposers |
8/30/2021 |
|
|
Responses distributed to Eval Team |
8/30/2021 |
|
|
Evaluation Team final selection |
9/6/2021 |
|
Phase 4 - Contract Development |
|
|
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Negotiation |
9/6/2021 |
|
|
Preliminary Draft |
9/6/2021 |
|
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Final Draft |
9/20/2021 |
|
Phase 5 - Board Requirements |
|
|
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Prepare summary documents |
10/4/2021 |
|
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Audit Committee Review |
10/22/2021 |
|
|
Board review/requested approval |
11/19/2021 |
|
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Contract award |
|
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Phase 6 - Project Execution and Management |
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Contract execution |
12/3/2021 |
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Start work |
1/1/2022 |
BUDGET IMPACT
The current contract for Financial Advisor (CS-002) falls within the annual Public Finance budget. The effect on future Public Finance budgets based on the outcome of the proposed competitive procurement process is yet to be determined.
COMMITTEE REVIEW
This matter was reviewed by the GLWA Audit Committee at its meeting on March 26, 2021. The Audit Committee recommended approval of the Change Order No. 5 for Contract GLWA CS-002, “Financial Advisor” with PFM Financial Advisors LLC, at a cost increase of $78,600.00, for a total cost not-to-exceed $678,600.00, and a time extension of eight and one-half months for a total contract duration of eighty and one-half months.