DATE: May 20, 2026
TO: Honorable Mayor and City Councilmembers
FROM: Financial Services Department
TITLE: APPROVAL OF A PROFESSIONAL SERVICES AGREEMENT WITH URBAN FUTURES, INC. FOR FINANCIAL ADVISORY SERVICES
RECOMMENDATION
title
Staff recommends that the City Council approve a Professional Services Agreement with Urban Futures, Inc. (UFI) on an as-needed basis for a three-year period for financial advisory services; and authorize the City Manager to execute the agreement.
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BACKGROUND AND ANALYSIS
City staff relies on the specialized expertise of financial advisors to provide knowledge, increased efficiency and cost savings for numerous financial and operational projects. With regard to City long term debt financing, financial advisors identify debt financing alternatives, develop issuance strategies, provide bond marketing options, and assist in market opportunity monitoring and rating agency presentations. Additionally, financial advisors assist City staff in the areas of policy development, operational reviews, financial modeling and analysis, specialized forecasts, financial reports and capital planning. Financial advisors provide a high degree of specialized expertise, skills and knowledge that is not available from City staff.
In March 2026, the City issued a Request for Proposals (RFP) for Municipal Financial Advisor Services. The RFP resulted in responses from five financial advisory firms. Four of the five responding firms were determined to meet the minimum RFQ requirements and were subsequently interviewed on April 13, 2026 and April 15, 2026 by an evaluation panel comprised of staff from Finance, Treasury, and Water Utilities. Of the four firms, UFI was recommended for citywide general financial advisory services.
Based in California, UFI has over 50 years of experience in both local government leadership and private finance. Its public management group brings a dynamic blend of technical and practical approaches to public financial management. Its technical expertise in financial modeling and analytics provides unique insights into revenues, expenses, liabilities, fiscal challenges and strategic opportunities.
FISCAL IMPACT
Financial advisory fees and expenses related to loan or bond issuance and financings will be paid or reimbursed from the individual bond or debt proceeds according to the type of instrument and in accordance with the compensation rate outlined in the Professional Services Agreement. Advisory fees for special project analysis and other engagements that are not related to a specific loan or bond issue transaction will be brought to Council for approval on an as-needed basis and will be funded from the applicable departmental budget, developer deposit or project funds.
Fees will be paid from debt proceeds according to the type of instrument and in accordance with the following fee schedule:
|
TITLE |
HOURLY RATE |
|
Chief Executive Officer |
$350 |
|
Director |
$325 |
|
Associate |
$175 |
|
Analyst |
$150 |
CITY ATTORNEY’S ANALYSIS
The referenced documents have been reviewed by the City Attorney and approved as to form.
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Prepared by: Silvia Twardy, Senior Accountant
Reviewed by: Jill Moya, Financial Services Director
Submitted by: Jonathan Borrego, City Manager
ATTACHMENTS:
1. Professional Services Agreement