TRANSMITTAL LETTER FOR BOARD MEETING OF JUNE 18, 2026
COMMITTEE ON PROCUREMENT
Mr. John P. Murray, Executive Director
Title
Authorization to enter into agreements for contract 25-RFP-04, Financial Advisory Services Related to the District Financing Program, appointing Acacia Financial Group, Inc., as Financial Advisor, and PFM Financial Advisors, LLC, as Co-Financial Advisor, in a total amount not to exceed $235,000.00, 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 397-11000-767400
Body
Dear Sir:
The District intends to sell new money and refunding bonds 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.
The Financial Advisors serve on the District’s behalf as liaison to the District’s counsel, underwriting group, bond rating agencies, and other participants; maintain the sale participants’ contact list and calendar schedule of necessary sale events, communicating dates of events and meetings to group members; prepare and schedule the District presentation for bond rating agency meetings; assist in producing and reviewing documents, including the preliminary and final official statements; work with District Treasurer and bond underwriting group in determining structure of the bonds being sold; review pricing and allocation of bonds sold; study and evaluate secondary market post-sale activity; assist with bond sale closing arrangements; evaluate and provide advice related to compliance with arbitrage regulations; and provide Financial Advisors’ Certificates relative to the bond sale.
The request for proposal Contract 25-RFP-04 was advertised on March 12, 2025. Seven (7) responsive proposals were received by April 18, 2025.
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 understanding of the project, technical competence, approach to the work, financial stability, and proof of registration with the SEC as a municipal advisor. Firms were ranked based on the technical score calculated by this evaluation.
The committee reached a consensus that four proposers met the technical qualifications portion of the RFP. These firms were interviewed by the committee and requested to submit their best and final offers on cost. The composite evaluation rankings were based on each firm’s technical score, interview score, and best and final offer for cost of services.
Acacia Financial, Inc., was highest ranked overall by this composite evaluation to provide bond sale financial advisory services and on August 14, 2025, was authorized by the Board of Commissioners to act as Financial Advisor on bond sales for a five-year period. The Co-Financial Advisor for each bond sale would be recommended from the firms remaining on the eligible list 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; the cost proposal does not apply to the co-financial advisory firms.
For the 2026 bond sale, Acacia is recommended to act as Financial Advisor, and PFM Financial Advisors, LLC, is recommended to act as Co-Financial Advisor.
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 fee for services as Financial Advisor is proposed to be sixty-five cents ($0.65) per $1,000 principal amount of bonds sold up to $300,000,000, a fee not to exceed $195,000.00; and twenty cents ($0.20) per $1,000 principal amount of bonds sold in excess of $300,000,000. The total fee is therefore not to exceed $230,000.00, to be apportioned 60% to Acacia Financial, Inc., and 40% to PFM Financial Advisors, LLC., plus up to $5,000.00 of out-of-pocket expenses to be reimbursed by the District. The total fee to the Financial Advisors is an amount not to exceed $235,000.00.
It is further requested that the Board of Commissioners authorize the Director of Procurement and Materials Management enter into an agreement with Acacia Financial Group, Inc., as Financial Advisor, and PFM Financial Advisors, LLC, as Co-Financial Advisor, in a total amount not to exceed $235,000.00, 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 in a total amount not to exceed $235,000.00, per Section 11.4 of the Purchasing Act.
Funds will be paid from the bond sale proceeds Accounts 401-50000-767300 ($99,000.00) and 397-11000-767400 ($136,000.00). Fees as noted above will only be disbursed if and when the transaction is completed.
Requested, Steven J. Lux, Treasurer, SJL:WNS:vb
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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