TRANSMITTAL LETTER FOR BOARD MEETING OF JUNE 18, 2026
COMMITTEE ON PROCUREMENT
Mr. John P. Murray, Executive Director
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Authorization to enter into agreement for Contract 25-RFP-19, Legal Advisory Services Related to the District Financing Program, with Nixon Peabody LLP, as Disclosure Counsel, 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 (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.
On June 4, 2026, the Board of Commissioners authorized the District to enter into agreements with Katten Muchin Rosenman LLP, to act as Lead Bond Counsel and Tax Counsel and Burke Burns & Pinelli to act as Issuer’s Counsel for the 2026 bond sale. The proposed sale requires the appointment of a Disclosure Counsel for the District to effect delivery of the bonds.
The request for proposal Contract 25-RFP-19 was advertised on January 21, 2026. Proposals were received by February 27, 2026. Ten (10) proposals to provide Legal Advisory Services Related to the District Financing Program were found responsive, and the top three (3) proposals in the categories requiring interviews were interviewed.
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 registration to practice law in the State of Illinois. The firms were ranked based on the technical score calculated by this evaluation.
The RFP process resulted in a list of firms qualified to serve as Disclosure Counsel. The RFP evaluation committee reached a consensus that these proposers met the technical qualifications portion of the RFP for Disclosure Counsel services and have not already been appointed to serve the District in other legal advisory capacities. On June 4, 2026, this list was presented to the Board and approved as the eligible list to serve as Disclosure Counsel for the next five years. This list included Nixon Peabody LLP, a global law firm with more than 700 attorneys, providing legal support to public issuers across the country. Nixon Peabody LLP is recommended to act as Disclosure Counsel for the 2026 bond sale.
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 counsel appointments for this bond sale and concluded that the group identified is in accordance with the RFP requirements.
The fee for services as Disclosure Counsel is proposed to be a blended rate of approximately eighteen and seven-tenths cents ($0.187) per $1,000, a fee not to exceed $88,750.00. The final fee for Disclosure Counsel services will be based upon the actual size of each bond sale.
It is hereby recommended that the Board of Commissioners authorize the Director of Procurement and Materials Management to enter into an agreement with Nixon Peabody LLP as Disclosure Counsel in connection with the sale of General Obligation Capital Improvement Bonds per Section 11.4 of the Purchasing Act
Therefore, the cost to render the necessary opinions for the sale of General Obligation Capital Improvement and Refunding Bonds, including the authorization approved by the Board of Commissioners on June 4, 2026 to enter into agreements with Katten Muchin Rosenman LLP as Lead Bond Counsel and Tax Counsel; Burke Burns & Pinelli, Ltd, as Issuer’s Counsel and authorization to enter into an agreement with Nixon Peabody LLP as Disclosure Counsel, is in a total amount not to exceed $506,750.00.
Funds will be paid from the bond sale proceeds Accounts 401-50000-767300 ($213,368.42) and 397-11000-767400 ($293,381.58). 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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