TRANSMITTAL LETTER FOR BOARD MEETING OF JUNE 18, 2026
COMMITTEE ON PROCUREMENT
Mr. John P. Murray, Executive Director
Title
Authorization to execute a bond purchase agreement for contract 25-RFP-05 Professional Underwriting Services for District Bond Sales with BofA Securities, Inc., and to appoint BofA Securities, Inc. as Senior Managing Underwriter and Book-runner; Samuel A. Ramirez & Co., Inc. as Co-Senior Managing Underwriter; and FHN Financial Capital Markets, PNC Capital Markets LLC, Rice Financial Products Company, Siebert Williams Shank & Co., LLC, and Stern Brothers & Co. as Co-Managing Underwriters, in a total amount not to exceed $430,000.00 in connection with the sale of up to a total of $475,000,000 of General Obligation Capital Improvement and Refunding Bonds of the Metropolitan Water Reclamation District of Greater Chicago, Accounts 401-50000-767300 and 767400
Body
Dear Sir:
The District intends to sell new money and refunding bonds (taxable and tax-exempt) in the coming months. The new money component will be approximately $200 million, and the refunding bonds could approximate $275 million on the date of the sale depending upon market conditions. The total bond sale requirement of an estimated $475 million would be sold in one sale on the same date. Refunding candidates include the District’s 2016 bonds. The size and structure of the bond sale will be determined with the assistance of the Underwriters and Financial Advisors, based upon market conditions including interest rates, investor cash positions, supply of bonds for sale, and liquidity of the market.
Underwriters assist the District in structuring, marketing, selling, and underwriting debt. It is required that the underwriting team be knowledgeable and experienced, exhibit professionalism, and possess the expertise to carry out the required functions correctly and with the necessary timeliness.
The request for proposal (RFP) Contract 25-RFP-05, Professional Underwriting Services for District Bond Sales, was advertised on November 19, 2025. Twenty-eight (28) responsive proposals were received by January 16, 2026.
The RFP process was coordinated through the Department of Procurement and Materials Management. The evaluation committee which reviewed and evaluated the proposals consisted of staff from the Treasury, Law, and Procurement and Materials Management Departments. Responses were evaluated according to the criteria defined in the RFP, including the firm’s technical approach and competence, experience in public finance and expertise in the underwriting and sale of general obligation bonds, and financial capacity to underwrite bonds. Firms were ranked based on the technical score calculated by this evaluation. The committee reached a consensus that thirteen proposers met the technical qualifications portion of the RFP.
A best and final offer (BAFO) on cost to serve as Senior Managing Underwriter is required for each bond sale. On June 5, 2026, a BAFO request was issued to the firms eligible to provide Senior Managing Underwriting Services, and responses were received by June 11, 2026. These scores were added to the technical score earned by each firm to form a composite evaluation ranking for the 2026 sale. BofA Securities, Inc. was highest-ranked overall by this composite evaluation and is recommended to act as Senior Managing Underwriter and Book-runner for the 2026 bond sale.
The Co-Senior Managing Underwriter and Co-Managing Underwriters are recommended from the firms remaining on the eligible lists based upon their technical score and the District’s aspirational participation goals for Minority-Owned (MBE), Women-Owned (WBE), and Veteran-Owned (VBE) business enterprises. Their compensation is based on the Senior Managing Underwriter’s BAFO cost proposal, so no separate cost proposals are requested. Samuel A. Ramirez & Co., Inc. is recommended to act as Co-Senior Managing Underwriter for the 2026 bond sale, and FHN Financial Capital Markets, PNC Capital Markets LLC, Rice Financial Products Company, Siebert Williams Shank & Co., LLC, and Stern Brothers & Co. are recommended to act as Co-Managing Underwriters.
For each bond sale, the District shall aspire to award a minimum of 33% of the work and services required by the RFP to one or more MBE, WBE or VBE firm(s). The Diversity Section has reviewed the proposed underwriter appointments for this bond sale and concluded that the group identified is in accordance with the RFP requirements.
The underwriters’ discount (fee for services) is proposed to be up to eighty cents ($0.80) per $1,000 principal amount of bonds sold up to $475,000,000. The total fee is therefore to be apportioned 45% to the Senior Managing Underwriter/Book-runner, 20% to the Co-Senior Managing Underwriter, and 7% to each Co-Managing Underwriter. Administrative expenses are proposed to be up to twelve and six-tenths cents ($0.126) per $1,000 principal amount of bonds sold, a fee not to exceed $60,000.00. The total fee to the underwriting group is not to exceed $430,000.00.
It is further requested that the Board of Commissioners authorize the Director of Procurement and Materials Management to execute a bond purchase agreement with BofA Securities, Inc., and to appoint BofA Securities, Inc. as Senior Managing Underwriter and Book-runner; Samuel A. Ramiez & Co., Inc., as Co-Senior Managing Underwriter; and FHN Financial Capital Markets, PNC Capital Markets LLC, Rice Financial Products Company, Siebert Williams Shank & Co., LLC, and Stern Brothers & Co., as Co-Managing Underwriters, in a total amount not to exceed $430,000.00 per Section 11.4 of the Purchasing Act.
Funds will be paid from the bond sale proceeds Accounts 401-50000-767300 ($181,100.00) and 397-11000-767400 ($248,900.00). Fees as noted above will only be disbursed if and when the transaction is completed.
Requested, Steven J. Lux, Treasurer, SJL:WNS:lb
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management
Respectfully Submitted, Precious Brady-Davis, Chairperson, Committee on Procurement
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for June 18, 2026
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