Meeting_Body
FINANCE, BUDGET AND AUDIT COMMITTEE
MARCH 19, 2026
Subject
SUBJECT: MUNICIPAL ADVISORY SERVICES BENCH
Action
ACTION: AWARD BENCH CONTRACTS
Heading
RECOMMENDATION
Title
AUTHORIZE the Chief Executive Officer to award eight, six-year task order-based bench contracts for Municipal Advisory Services and execute task orders under these contracts for a total Not-To-Exceed (NTE) amount of $7,100,000, effective May 1, 2026, subject to the resolution of properly submitted protest(s), if any:
• PFM Financial Advisors LLC (PS133271000)
• Montague DeRose and Associates, LLC (PS133271001)
• Public Resources Advisory Group (PS133271002)
• Frasca & Associates, LLC (PS133271003)
• KNN Public Finance, LLC (PS133271004)
• Sperry Capital Inc. (PS133271005)
• Fieldman, Rolapp & Associates, Inc. (PS133271006)
• Backstrom McCarley Berry & Co., LLC (PS133271007)
Issue
ISSUE
Metro has a recurring need for municipal advisory services to support the debt program. The existing bench contracts expire April 30, 2026. The establishment of the new bench facilitates the use of at least three municipal advisors consistent with Metro’s Debt Policy.
Background
BACKGROUND
Metro requires the services of municipal advisors to assist with the issuance and management of the bonds, commercial paper and short-term borrowing programs, and lease financings, and to assist with the investment of debt service and reserve funds.
The existing bench contracts expire April 30, 2026 and include the following firms:
• Backstrom, McCarley Berry & Co.
• Columbia Capital Management LLC
• Fieldman Rolapp and Associates
• Hilltop Securities, Inc
• KNN Public Finance
• Montague DeRose and Associates, Inc.
• Omni Cap Group LLC
• PFM Financial Advisors LLC
• Public Resources Advisory Group
• Sperry Capital
The expiring contract was awarded by the Board in November 2019 for a total not-to-exceed amount of $6,590,000. During the expiring contract’s six-year term, 26 task orders were issued to facilitate the issuance of approximately $6.3 billion in bonds and short-term obligations as well as other analytical support related to Metro’s debt portfolio.
Discussion
DISCUSSION
Metro has approximately $4.5 billion in outstanding bonds. The municipal advisors will assist in evaluating the risks and opportunities associated with debt issuances and monitoring the debt portfolio to alert Metro to opportunities to refund and or restructure our bonds to achieve present value savings. The municipal advisors will also assist in the preparation of presentations to rating agencies, lenders and investors. Staff expect the municipal advisors to provide analytical support as well as advice during negotiations for TIFIA loans, grants and other sources of funding. The municipal advisors additionally will assist with other tasks on an as needed basis such as overseeing the selection and documentation processes to implement structured finance products. .
The bench of municipal advisors is divided into two categories: Lead Municipal Advisors and/or Transactional/Project Municipal Advisors. PFM Financial Advisors LLC, Montague DeRose and Associates, LLC, and Public Resources Advisory Group received the highest evaluation scores and will each serve a two-year term as Lead Municipal Advisors on a retainer basis. The Lead Municipal Advisor helps staff plan and coordinate the debt program objectives for the term that they serve as the lead. Projects will be assigned to firms, including those not serving as the Lead Municipal Advisor, on a task order basis as needed by Metro. Under the bench approach, Project Municipal Advisors are not guaranteed any work.
Determination_Of_Safety_Impact
DETERMINATION OF SAFETY IMPACT
Approval of this item will not impact the safety of patrons or employees.
Financial_Impact
FINANCIAL IMPACT
The FY26 adopted budget includes $1,600,000 for these services in Cost Center 0521, Non-Departmental Treasury, under Project 610306, Project 610307 and Project 660301 and Project 670301, Financing Costs. Since this is a multi-year agreement, the Cost Center Manager, Treasurer and Chief Financial Officer will be accountable for budgeting the cost in future years.
Impact to Budget
Source of fundings for projects 610306 and 610307 are Proposition A and C, which are eligible for bus & rail operations. Source of fundings for projects 660301 and 670301 are Measure R and M subfunds, which are not eligible for bus & rail operations.
Equity_Platform
EQUITY PLATFORM
The breadth of the bench will allow Metro to use different firms over the term of the contract for specialized services or financings. The bench also provides an opportunity for smaller and regional firms to participate on projects. The Diversity and Economic Opportunity Department (DEOD) did not establish an overall Small Business Enterprise (SBE) and Disabled Veteran Business Enterprise (DVBE) goal on this bench contract based on the lack of subcontracting opportunities. However, two of the eight primes Backstrom McCarley Berry & Company LLC and Sperry Capital, Inc. are SBE primes and both made a 100% SBE commitment.
Vehicle_Miles_Traveled _Outcome
VEHICLE MILES TRAVELED OUTCOME
VMT and VMT per capita in Los Angeles County are lower than national averages, the lowest in the SCAG region, and on the lower end of VMT per capita statewide, with these declining VMT trends due in part to Metro’s significant investment in rail and bus transit.* Metro’s Board-adopted VMT reduction targets align with California’s statewide climate goals, including achieving carbon neutrality by 2045. To ensure continued progress, all Board items are assessed for their potential impact on VMT.
As part of these ongoing efforts, this item is expected to contribute to further reductions in VMT. While this item does not directly encourage taking transit, sharing a ride, or using active transportation, it is a vital part of Metro operations, as it will allow staff to utilize the necessary expertise of municipal advisors to aid in the prudent issuance and management of Metro’s debt portfolio in order to sustainably finance capital projects. Because the Metro Board has adopted an agency-wide VMT Reduction Target, and this item supports the overall function of the agency, this item is consistent with the goals of reducing VMT.
*Based on population estimates from the United States Census and VMT estimates from Caltrans’ Highway Performance Monitoring System (HPMS) data between 2001-2019.
Implementation_of_Strategic_Plan_Goals
IMPLEMENTATION OF STRATEGIC PLAN GOALS
Recommendation supports Metro Vision 2028 Strategic Plan Goal 5:
Goal 5: Provide responsive, accountable, and trustworthy governance within the Metro organization.
Alternatives_Considered
ALTERNATIVES CONSIDERED
Conduct a separate procurement for each individual task as needed. This alternative is not recommended because it would require extensive additional staff time to process each request and result in delays due to the lead time required to complete the individual procurements. Because many of Metro’s transactions are dependent on market conditions and are very time sensitive, potential opportunities may be missed while going through the procurement process.
Develop in-house staff resources to meet these requirements. This alternative is not recommended because external municipal advisors deal with specific technical, specialized and quantitative matters of the financial marketplace on a daily basis. It is not practical to maintain this expertise in-house.
Next_Steps
NEXT STEPS
Upon Board approval, staff will execute the bench Contract Nos. PS133271000 through PS133271007 for municipal advisory services effective May 1, 2026. Individual task orders will be issued on an as-needed, competitive basis.
Attachments
ATTACHMENTS
Attachment A - Procurement Summary
Attachment B - DEOD Summary
Prepared_by
Prepared by: Matthew Wingert, Senior Manager, Budget (213) 922-2553
Rodney Johnson, Treasurer (213) 922-3417
Carolina Coppolo, Deputy Chief Vendor/Contract Management Officer, (213) 922-4471
Reviewed_By
Reviewed by: Michelle Navarro, Interim Chief Financial Officer, (213) 922-3056
