REPORT TO THE CITY COUNCIL
FROM: SANTINO DANISI, MBA, City Controller/Finance Director
Finance Department
BY: KALEB NEUFELD, MBA, Assistant Controller/Assistant Director
Finance Department
SUBJECT
Title
Approve a Municipal Advisor Professional Services Contract with KNN Public Finance, LLC for a five-year term effective through May 30, 2031, in an amount not to exceed $425,000, with the option of two one-year extensions, each not to exceed $85,000 annually (Bid File No. 12601730)
Body
RECOMMENDATION
Staff recommends that the City Council authorize the Finance Director, or designee, to execute a five-year contract in the amount not to exceed $425,000 with the option of two one-year extensions in an amount not to exceed $85,000 per year with KNN Public Finance, LLC, to provide municipal advisory services supporting the City with professional consulting related to debt issuance and financial planning, as outlined in the City’s Request for Proposals (RFP).
EXECUTIVE SUMMARY
The City of Fresno (City) previously maintained an agreement with KNN Public Finance, LLC to provide municipal advisory services, which expired on February 28, 2026. In anticipation of the agreement’s expiration, the City issued a Request for Proposals (RFP) for continued municipal advisory professional services, posting the solicitation on PlanetBids on March 4, 2026. Four vendors submitted proposals in response.
An Evaluation Committee was convened, comprising representatives from the Finance Department and the Airports Department. A representative from Finance served as the Committee Facilitator. Each proposal was evaluated according to the criteria outlined in the RFP, with particular emphasis on the vendor’s ability to meet the required service specifications, their overall municipal advisory experience-especially related to California financings-and the competitiveness of their cost proposal.
Based on this evaluation, staff recommends awarding a five-year contract to KNN Public Finance, LLC as the most qualified proposer. The contract amount shall not exceed $425,000 and is based on anticipated financing activity over the contract term; however, actual costs will vary depending on the number and complexity of transactions undertaken. The contract also includes two optional one-year extensions, each not to exceed $85,000 annually.
KNN Public Finance, LLC was selected based on its extensive experience with California municipalities, longstanding familiarity with the City’s debt portfolio, and demonstrated ability to provide consistent, high-quality advisory services. This approach is expected to support efficient transaction execution, consistent advisory guidance, and alignment with the City’s long-term financial objectives. The contract does not guarantee a minimum level of work, and expenditures will be based on actual services rendered.
BACKGROUND
As a large government entity, the City of Fresno (City) maintains an extensive and complex debt portfolio governed by detailed debt management policies that safeguard City assets, support strong credit ratings, limit General Fund debt, and ensure debt does not exceed the useful life of financed projects. To support these objectives, the City relies on its municipal advisor to structure cost-effective bond transactions, coordinate with credit rating agencies and bond insurers, assess market conditions, market bond sales, and evaluate underwriter bids. These services are essential for maintaining transparent financial reporting and meeting the City’s financial obligations in accordance with best practices and regulatory requirements.
The RFP for Municipal Advisor Services sought qualified firms to provide comprehensive financial advisory support for the City’s debt management and capital financing activities. The scope of services included evaluating financing alternatives; developing debt affordability and capital planning strategies; assisting with the structuring, timing, and execution of bond issuances and other financing instruments; coordinating with financing team members such as bond counsel and underwriters; supporting credit rating presentations and investor communications; and providing ongoing advisory services related to the City’s debt portfolio, financial policies, and market conditions. The selected firm is expected to serve as an independent fiduciary advisor, ensuring that all recommendations align with the City’s best financial interests and comply with applicable regulatory standards.
ENVIRONMENTAL FINDINGS
By the definition provided in the California Environmental Quality Act Guidelines Section 15378 this item does not qualify as a “project” and is therefore exempt from the California Environmental Quality Act requirements.
LOCAL PREFERENCE
Local preference was not implemented because no local firms responded to the RFP.
FISCAL IMPACT
The recommended contract with KNN Public Finance, LLC is a five-year agreement in an amount not to exceed $425,000. Additionally, the contract includes an option of two one-year extensions, each not to exceed $85,000 annually. The contract does not guarantee a minimum level of work, and expenditures will be based on actual services rendered.
Attachment:
Service Contract