DEPARTMENT
Business Services
AGENDA NO.
13 MEETING DATE
September 9, 2025
AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
Calendar: Regular Calendar
Contract Manager: Nikolai J. Sklaroff, Capital Finance Director
Approve Amendments No. 1 to Contract Nos. CS-1231.A,D, and E, Municipal Advisory Services Summary of Proposed
Commission Action:
Approve Amendments No. 1 to Contract Nos. CS-1231.A, D, and E, Municipal Advisory Services, with Backstrom McCarley Berry & Co. LLC (CS-1231.A), Montague DeRose and Associates LLC (CS -
1231.D), and
PFM Financial Advisors LLC (CS -1231.E), increasing each contract amount by $700,000, for a total not -to-exceed of $1,675,000 per contract, with no change to the duration, to continue providing municipal advisory services related to capital financing programs of the Water, Wastewater, and Power Enterprises, and CleanPowerSF.
Background: The San Francisco Public Utilities Commission (SFPUC) works with Municipal Advisors (MAs) registered with the U.S. Securities and Exchange Commission for municipal financial advisory services in connection with general financial planning and transaction- specific activities related to the Water, Power, and Wastewater Enterprises and CleanPowerSF, including, but not limited to, the issuance of bonds, commercial paper, loans, private placements. and the issuance of new and amended credit facility agreements, financial forecasting and modeling, rate -setting and financial asset management, risk management, power generation, transmission, distribution and trading, and related capital financing activities.
On August 26, 2021, the SFPUC issued a Request for Proposal (RFP) to pre- qualified firms in the Controller ’s Municipal Advisory Services Pool (CON|RFQ2020-06). On March 3, 2022, following a written evaluation, the General Manager, under delegated authority by Commission Resolution No. 09-0017, awarded Municipal Advisory Services agreements, under Contract No. CS-1231, to the following firms:
• Backstrom McCarley Berry & Co. LLC (CS-1231.A)
• Clean Energy Capital Securities LLC (CS-1231.B)
• Fieldman Rolapp & Associates Inc. (CS-1231.C)
• Montague DeRose and Associates LLC (CS-1231.D)
• PFM California Advisors LLC (CS-1231.E)
Each agreement had a not-to-exceed amount of $975,000 and a duration of 60 months.
Agenda Title: Approve Amendment to CS-1231.A, D, and E, Municipal Advisory Services, Commission Meeting Date: September 9, 2025
On February 5, 2025, the SFPUC entered into a novation agreement for Contract No. CS -1231.E, transferring the contract from PFM California Advisors LLC to its successor in interest, PFM Financial Advisors LLC, with no changes to the contract terms, scope, or duration.
Since the initial preparation of the RFP for CS-1231, the SFPUC’s 10-year Capital Plan has continued to grow from $9 billion in FY2021 to over $11 billion in the latest 10 -year Capital plan approved in February 2025.
Alongside the growth in these plans to improve capital infrastructure and anticipated regulatory requirements, municipal bond issuers like the SFPUC have needed to contend with very volatile market environments. Over this period the SFPUC has also engaged in, or evaluated, new types of borrowing (tender refunding bonds; extraordinary redemptions to mitigate Build America Bonds; new versions of WIFIA (Water Infrastructure Finance and Innovation Act), CWIFP (Clean Water and Integrated Funding Program) and SRF (State Revolving Fund) borrowing; JPA (Joint Powers Agency) financing, energy prepay financing, IRA tax credits, etc.). To help navigate through what has been an unpredictable period, the SFPUC has worked closely with its Municipal Advisors, and will need to continue with similar services for what is expected be a persistent ly challenging environment for municipal agencies for the foreseeable future. The SFPUC’s Municipal Advisors will continue to provide critical specialized services requiring expertise in capital markets, bond financing, rating agency procedures, and financial modeling which is critical for managing SFPUC’s capital financing needs:
• Anticipated larger and more frequent borrowings
• Procurement of new and replacement credit facilities for its interim funding programs which were authorized to expand from $1.5 billion to $2.45 billion effective December 2024
• Evaluation and assistance executing financing solutions for other aspects of the SFPUC’s programs such as entering new federal and state programs and loans, identifying refinancing opportunities and risk mitigation strategies, and evaluating new fina ncing structures and alternatives
If approved, t he proposed amendments will increase Contract Nos . CS- 1231.A, CS-1231.D, and CS-1231.E by $700,000, resulting in a new not-to- exceed amount of $1,675,000 per contract. These amendments do not make any changes to the original contract duration or scope of services.
This proposed amendment will provide continuity of service until new contracts can be procured through a new competitive selection process, expected to take approximately 12 to 18 months. The Capital Finance team is currently working with the Contracts Administration Bureau on producing a new request for proposals for municipal advisory services.
Agenda Title: Approve Amendment to CS-1231.A, D, and E, Municipal Advisory Services, Commission Meeting Date: September 9, 2025
Note: The proposed amendment is only for three of the original five agreements awarded in 2022 – Contract Nos. CS-1231.B and CS-1231.C do not require additional contract authority . Authority for Contract No. CS - 1231.B has been completely exhausted and the firm is no longer serving our program as an independent municipal advisor. Contract No. CS-1231.C has not been used to date.
Scope of Contract: The contract work consists of engagement of registered Municipal Advisors for:
1. Financial Advisory Support: Assistance with general financial planning and transaction- specific activities for SFPUC’s Water, Wastewater, and Power Enterprises, and CleanPowerSF.
2. Debt Structuring & Market Expertise: Advising on bond markets, capital financing, credit facility agreements, rating agency procedures, and risk management strategies.
3. Financial Modeling & Forecasting: Development of debt structure models, interest rate hedging options, and financial forecasting tools using U.S. Treasury instruments.
4. Regulatory & Compliance Guidance: Coordination with bond counsel, underwriters, and trustee service providers to ensure adherence to financial regulations.
5. Capital Program Support: Financial guidance for SFPUC’s major infrastructure programs, including WSIP (Water System
Improvement Program) , SSIP (Sewer System Improvement
Program), HCIP (Hetchy Capital Improvement Project) , and CleanPowerSF.
This contract provides intermittent and specialized financial expertise critical for SFPUC’s long-term planning and infrastructure financing.
Amendments to the
Contract:
Proposed Amendments No. 1 (CS-1231.A, D, and E): Staff recommends Commission approval of Amendment s No. 1 (CS-1231.A, D , and E ) to increase each contract by $700,000, for a total not -to-exceed contract amount of $1,675,000 per contract, with no change to the duration of each contract, to continue providing municipal advisory services related to capital financing programs of the Water, Wastewater, Power Enterprises , and CleanPowerSF.
Funding and Costs: Funding Source: Various capital program budget or operating budgets as appropriate.
Original Not-to-Exceed Amount: $975,000 (per contract)
Proposed Amendment No. 1 (CS-1231.A, D , and E ): $700,000 (per contract)
Total Not-To-Exceed Contract Amount: $1,675,000 (per contract) Agenda Title: Approve Amendment to CS-1231.A, D, and E, Municipal Advisory Services, Commission Meeting Date: September 9, 2025
Schedule: Original Duration: 60 months (per contract)
Proposed Modification No. 1 Duration: No change (per contract) Total Duration: 60 months (per contract)
Local Business
Enterprise Utilization
and Non-
Discrimination in
Contracting:
The contract Monitoring Division (CMD) subcontracting requirement, as set forth under chapter 14B of the City and County of San Fra ncisco Administrative Code, have been waived for this agreement.
Environmental
Review:
Amendment of th ese professional services contract s does not constitute a “project” under the California Environmental Quality Act Guidelines section 15378(a) because there w ill be no physical change in the environment.
PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO.
WHEREAS, The San Francisco Public Utilities Commission (SFPUC) requires municipal advisory services to support the capital financing needs of the Water, Wastewater, and Power Enterprises, and CleanPowerSF, ensuring the lowest cost of financing possible for capital projects and other financing support; and
WHEREAS, On March 3, 2022, March 4, 2022, and March 14, 2022, under the authority delegated by the Commission by Resolution No. 09-0017, the General Manager awarded Contract Nos. CS-1231.A, D, and E, Municipal Advisory Services, respectively, each with an amount not-to-exceed $1,675,000 and each with a duration of 60 months, with Backstrom McCarley Berry & Co. LLC (CS-1231.A), Clean Energy Capital Securities LLC (CS-1231.B), Fieldman Rolapp & Associates Inc. (CS-1231.C), Montague DeRose and Associates LLC (CS- 1231.D), and PFM California Advisors LLC (CS-1231.E); and
WHEREAS, On February 5, 2025, the SFPUC entered into a novation agreement for Contract No. CS -1231.E, transferring the contract from PFM California Advisors LLC to its successor in interest, PFM Financial Advisors LLC, with no changes to the contract terms, scope, or duration; and
WHEREAS, Staff recommends that this Commission approve Amendments No. 1 to Contract Nos. CS -1231.A (Backstrom McCarley Berry & Co. LLC ), CS-1231.D (Montague DeRose and Associates LL C) and CS-1231.E (PFM Financial Advisors LLC ), to increase each contract by $700,000, for a total not-to-exceed contract amount of $1,675,000, with no change to the contract duration, to continue providing the provision of municipal advisory services related to capital financing programs of the Water, Wastewater, Power Enterprises , and CleanPowerSF; and
WHEREAS, Pursuant to Chapter 14B.8(A) of the San Francisco Administration Code, the San Francisco Contract Monitoring Division (CMD) has waived the Local Business Enterprise (LBE) sub-consulting requirements for this Contract; and
WHEREAS, Amendment of th ese professional services contract s does not constitute a “project” under the California Environmental Quality Act Guidelines section 15378(a) because there will be no physical change in the environment; and
WHEREAS, Funds for these contracts are available from various capital program financing cost and operating budgets as appropriate; now, therefore, be it
RESOLVED, That this Commission hereby approves Amendments No.1 to Contract Nos.
CS-1231.A (Backstrom McCarley Berry & Co. LLC ), CS-1231.D (Montague DeRose and Associates LLC) and CS-1231.E (PFM Financial Advisors LLC) , increasing each contract by $700,000 for a total not-to-exceed contract amount of $1,675,000 per contract, with no change to the contract duration.
I hereby certify that the foregoing resolution was adopted by the San Francisco Public Utilities Commission at its meeting of September 9, 2025.
Director of Commission Affairs
San Francisco Public Utilities Commission