Financial Advisor Professional Services

The City of Palo Alto is requesting proposals for financial advisory professional services to support debt management, capital financing, and strategic planning over a three-year period under RFP #RFP198130, with proposals due September 15, 2026 at 3:00 p.m. and questions due September 8, 2026. SEC registration as a municipal advisor and MSRB registration in good standing are mandatory qualifications; respondents must also demonstrate minimum five years of municipal advisory experience, prior debt issuance and capital improvement financing advisory work, and California-specific expertise including knowledge of Proposition 13, Proposition 218, and CDIAC reporting requirements.

The scope encompasses quarterly financial advisory reports on the City's debt portfolio and municipal market conditions, general financial advisory and strategic planning services related to public finance and debt management, debt issuance advisory support if and when authorized by the City, and credit rating agency support. The City has identified two key infrastructure initiatives — Electric Grid Modernization and Cubberley Community Center projects — either of which may require debt financing.

The contract is structured as a fixed-fee arrangement with a maximum not-to-exceed amount proposed by the respondent and potentially negotiated with the City; compensation may include task-based fees, hourly rates by labor category, or transaction-based fees for debt issuance advisory work. Progress payments are tied to percentage of project completed. Respondents must document relevant project experience, adherence to schedules and budgets, and financial stability through audited or reviewed financial statements, a letter of good standing from a financial institution or CPA, or a Dun & Bradstreet Business Information Report prepared or updated within the last 12 months.

Evaluation weighting: proposal quality (15%), proposed solution (20%), relevant experience (20%), cost (10%), financial condition and stability (10%), timely performance (10%), prior record of performance for government agencies (5%), and compliance (10%). Oral interviews are anticipated for the week of October 19, 2026. All contractors must maintain comprehensive insurance coverage including $1,000,000 general liability and $1,000,000 professional liability, with the City named as additional insured except on workers' compensation and professional liability policies.