TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Javier Carcamo, Finance Director
PREPARED BY: Cynthia Rockwell, Purchasing and Contracts Coordinator
SUBJECT:
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Agreement for Municipal Financial Advisory Services with Urban Futures, Inc.
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RECOMMENDATION
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Approve a three-year agreement with Urban Futures, Inc., with the option of two one-year extensions for municipal financial advisory services; and
Authorize the City Manager to execute the agreement.
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PRIOR ACTION/VOTE
On April 7, 2009, the City Council adopted Resolution No. 09-2226 approving the Agreement with Magis Advisors for Financial Advisory Services (Vote: 5-0).
On October 21, 2014, the City Council adopted Resolution No. 14-3304 approving the Agreement with First Southwest Company for Financial Advisory Services (Vote: 4-0).
On June 2, 2020, the City Council adopted Resolution No. 20-4258 approving an Agreement with Fieldman Rolapp & Associates for Financial Advisory Services (Vote: 5-0).
CITY COUNCIL GOAL
Maintain a high performing organization that values fiscal sustainability, transparency, accountability and organizational efficiency.
DISCUSSION
A municipal financial advisor is a professional consultant who advises and assists the City of Murrieta (City) in formulating and executing its debt financing plans and managing relationships with investors, credit providers, and credit rating agencies.
The City partners with a municipal financial advisor to receive comprehensive financial advice on an as-needed basis. A municipal financial advisor must maintain an expert level of knowledge regarding the City's debt portfolio, business operations, and financial condition. Periodically, the City seeks financial advice on matters including formulating and executing debt financing plans, issuance of bonds, formation and refunding of Community Facilities Districts (CFD), and identifying strategic and alternative debt strategies that are most advantageous for the City. The City also engages its financial advisory team to provide the following services:
* Provide independent advice and serve solely in the best interest of the City;
* Assist with bond issuance or refunding transactions, and develop a bond team to include, but not limited to, bond counsel, underwriter, and market absorption and appraisal consultants for bond issues;
* Coordinate and facilitate meetings with the bond team;
* Attend meetings with staff, City Council, developers, and underwriters as needed;
* Identify debt strategy alternatives, including debt restructuring options, and recommend debt issuance strategies for both timing and structure of debt issuance;
* Provide advice on the financing of debt, including an evaluation of the most effective and appropriate financing for projects under consideration;
* Assist with the creation of sound financial policies regarding the issuance of and refunding of debt and the City's debt capacity;
* Assist with presenting the City's financial condition to credit rating agencies to maintain the best possible credit rating; and
* Be available on a regular basis for consultation with City staff and provide other financial advisory services as requested.
Request for Proposal Process
The City has received professional municipal financial advisory services from Fieldman Rolapp & Associates since 2020. This agreement expired on May 31, 2025. In anticipation of the expiration of its agreement with its current municipal advisor, on May 27, 2025, the City of Murrieta Finance Department issued a Request for Proposal for municipal financial advisory services and received five (5) proposals in response. The five (5) firms that responded are listed below, in alphabetical order:
1. Columbia Capital Municipal Advisors
2. CSG Advisors
3. Fieldman Rolapp & Associates
4. Kosmont Financial Services
5. Urban Futures Inc.
The proposals were reviewed and evaluated by a selection committee comprised of the City's Director of Finance, Finance Manager, Accounting Supervisor, and Purchasing and Contracts Coordinator. The selection committee evaluated each proposal based on the following criteria:
* Proper submission and completeness of proposal;
* Demonstrated understanding of the requested services;
* Experience, and past performance;
* Qualifications of assigned personnel;
* Cost-effectiveness of the fees charged; and
* Reference checks.
The selection committee conducted virtual and in-person interviews with the four (4) highest-scoring firms. After reviewing and considering each proposal and interviewing representatives of each firm, the panel members unanimously agreed that Urban Future, Inc., would best meet the city's municipal advisory service's needs.
Urban Futures, Inc.
Urban Futures, Inc. has been in business since 1972, employs eighteen (18) Series-50 licensed municipal advisors, one (1) Series-54 Principal, and has served over 300 public agencies across California. Urban Futures, Inc. possesses extensive and local experience with bond issuance and CFD formation for agencies within our region, while also offering the most competitive fee schedule and hourly rates out of all responding firms. The strengths of this firm have been identified to best align with the City's current and future objectives.
FISCAL IMPACT
There is no immediate fiscal impact on the General Fund for these services. The fiscal impact of this agreement is based on as needed service. The cost of bond financing on behalf of the City is $40,000 and CFD formation is a not-to-exceed fee of $5,000 to $10,000 depending on the scope of the engagement. Bond issuance and district formation on behalf of a developer will be recovered through the cost of issuance when bonds are sold. Therefore, there is no cost to the City. Additional work other than bond issuance or district formation is charged to the City at an hourly rate as defined in the cost schedule reflected in Exhibit C-1 of the attached agreement.
ATTACHMENTS
1. Professional Service Agreement with Urban Futures, Inc
2. Proposal