The City utilizes a financial advisor to plan, develop, market and coordinate the activities related to the City's issuance of bonds or debt instruments. The financial advisor also performs other duties such as special studies or reports associated with debt refundings or project financings.

The City has utilized EHC for the past fifteen years and has been very satisfied with the experience of the firm and assigned personnel, extent of resources available to the firm, quality of work, responsiveness to staff, availability to meet with City staff, and understanding of the scope of services expected.

EHC has not increased their fee schedule for the past five years. To cover cost increases that have occurred during the past five years and the expected cost increases over the next five years, EHC proposed a 5% increase to their existing fee schedule. Staff believes that the proposed fee schedule is fair for the high quality of service that the City receives.

EHC is paid only if the bond sale is successful and closes. The City anticipates ongoing annual bond sales with authorized general obligation and revenue bonds for the foreseeable future. Additionally, staff expects to work on refunding bond when the opportunity exist. EHC has done an outstanding job of monitoring refunding opportunities for the City. Finally, this agreement covers the time period when a potential new bond program would be evaluated and possibly taken to the voters. EHC would be involved with that process.

The normal financial advisory services are paid from bond proceeds after the issuance of the bonds unless a special project requires a separate fee. The fee schedule is included as part of the agreement.

Staff recommends that the City Council authorize the City Manager to execute a five year agreement with Estrada Hinojosa & Company, Inc., for financial advisory services.